Translation
This is an English language translation of the original Japanese announcement on our Website released on August 28, 2013. However,no assurance or warranties are given with respect to the accuracy or completeness of this English language translation. The Japaneseoriginal shall prevail in the case of any discrepancies between this translation and the Japanese original.

Summary of Financial Results (REIT) for the Fiscal Period Ended June 30, 2013
August 28, 2013
Name of Issuer:

Invincible Investment Corporation

Stock Exchange Listing:Tokyo Stock Exchange

Securities Code:

8963

URL

Representative:
Name of Asset Manager:
Representative:
Contact:

Naoki Fukuda, Executive Director
Consonant Investment Management Co., Ltd.
Naoki Fukuda, President & CEO
Akiko Watanabe, Manager
TEL. +81-3-5411-2731

Scheduled Date of Filing of
Securities Report:

September 26, 2013

Supplementary Materials for
Financial Results:

Yes

Presentation Meeting:

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

Scheduled Date ofCommencement for Distribution
September 27, 2013
Payments:

Yes (for analysts and investors)

1.

(values are rounded down to the nearest million yen)
Financial Results for the Fiscal Period ended June 30, 2013 (from January 1, 2013 to June 30, 2013)(1)

Operating Results(Percentages indicate percentage change from the previous period)

Operating Revenues
Period ended
June 2013
Period ended
December 2012

Operating Income
Millions of yen%

Millions of yen%

Millions of yen

%

2,760

11.5

1,231

13.6

335

192.4

335

193.5

2,476

13.8

1,084

21.3

114

(8.9)

114

(10.9)

Period ended
June 2013
Period ended
December 2012

(2)

Net Income%

Net Income per Unit

(Note)

Ordinary Income

Millions of yen

Net Income/ Unitholders’EquityOrdinary Income/Total Ordinary Income/Ordinary
Assets
Revenues

yen

%

%

%

249

1.0

0.4

12.2

85

0.3

0.2

4.6

Net Income per Unit is rounded to the nearest yen.

Distributions
Distribution per
Unit (Excludingexcess profit
distribution per
unit)

Period ended
June 2013
Period ended
December 2012

Distribution
AmountExcess Profit
Distribution per
Unit

Excess Profit
Distribution
AmountDividend Payout
Ratio

Distribution/
Net AssetsyenMillions of yen

yen

Millions of yen

%

%

264

355

0

0

106.0

1.1

117

157

0

0

137.6

0.5

―1―

(Note 1)

Invincible Investment Corporation (INV) reversed JPY 43 million out of surplus and distributed JPY 117 per unit for the distribution for the fiscal
period ended December 31, 2012. As for the distribution for the fiscal period ended June 30, 2013, INV reversed JPY 20 million out of surplus
and decided to distribute JPY 264 per unit.

(3)

Financial Position
Total Assets

As of June 30, 2013
As of December 31, 2012
(Note)(4)

Net Assets

Net Assets/Total Assets

Net Assets per Unit

Millions of yen

Millions of yen%

yen

80,24932,84840.9

24,36380,20032,67040.7

24,231Net Assets per Unit is rounded to the nearest yen.

Cash Flows

Cash Flows fromOperating Activities
Fiscal Period ended
June 30, 2013
Fiscal Period ended
December 31, 2012

Cash Flows from
Investment Activities

Cash Flows from
Financing Activities

Closing Balance of Cashand Cash Equivalents

Millions of yen

Millions of yen

Millions of yen

Millions of yen

1,054

(167)

(300)

4,117

878

(14,412)

11,855

3,531

―2―

2.

Forecast for the Fiscal Period ending December 31, 2013 (from July 1, 2013 to December 31, 2013)(Percentages in brackets represent change from previous fiscal period)
Distribution per
Unit (excluding Excess Profit
Operating Income Ordinary Income
Net Income
excess profit Distribution per
distribution per
Unit
unit)

Operating
Revenues
Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen

%

yen

yen

Fiscal Period
ending2,740
December 31, 2013

(0.7)

1,182

(4.0)

270

(19.4)

270(19.4)

200

0

Reversal of
SurplusFiscal Period
endingDecember 31, 2013

Distribution
AmountMillionsof yen%Millionsof yen

%

－

( － )

269

(24.2)(Reference) Estimated net income per unit for the fiscal period ending December 31, 2013 is JPY 200.

3.

Others(1) Changes in Accounting Policies, Accounting Estimates or Restatements(a) Changes in Accounting Policies due to Revisions toNoneAccounting Standards and Other Regulations(b) Changes in Accounting Policies due to Other Reasons
None(c) Changes in Accounting Estimates
None(d) Restatements
None(2) Number of Investment Units Issued and Outstanding(a) Number of Units Issued and Outstanding as of the
End of the Fiscal Period (Including Treasury Units) June 30, 2013(b) Number of Treasury Units at End of Fiscal Period June 30, 2013

1,348,2920December 31, 2012
December 31, 2012

1,348,2920(Note) Please refer to the “Notes Related to Per Unit Information” on page 30 for the number of units used as a basis for calculating net income per unit.

※

The Implementation Status of Statutory Audit
At the time of this financial report, the audit procedures for the financial statements pursuant to the Financial Instruments
and Exchange Act are yet to be completed.
※ Explanation on the Appropriate Use of the Forecast of Results and Other Matters of Special Consideration（Explanation on the Appropriate Use of the Forecast of Results）
The forward-looking statements in this material are based on the information currently available to us and certain
assumptions which we believe are reasonable. Actual operating performance may differ significantly due to factors wecannot predict as of this date, including gains or losses from the disposition of properties, repayment of borrowings,
decreases in rents and changes in operating conditions. Further, there is no guarantee of the payment of the forecast
distribution amount.
Please refer to “Assumptions for the Forecasts for the Fiscal Period ending December 31, 2013 (from July 1, 2013 to
December 31, 2013)” on page 10 for assumptions used in the forecasts and precautions regarding the use of such forecasts.

―3―

1.

Related Companies of the Investment Corporation
Disclosure is omitted because there have been no material changes in the “Structure of the Investment Corporation” sectionof the latest securities report (filed on March 27, 2013).

2.

Management Policy and Operating Condition(1)

Management Policy

Disclosure is omitted in the “Investment Policy” and “Investment Targets” sections of the latest securities report (filed on March
27, 2013) because there are no material changes.
On June 28, 2013, the Investment Corporation held a general unitholders’ meeting in which it made certain amendments to
its articles of incorporation, including with respect to its “distribution policy”. For the amended “distribution policy”, please referto page 48.
(2)Operating Condition(a) Overview of the Fiscal Period ended June 30, 2013
(i)

Main Trends in the Investment Corporation
The investment corporation (the “Investment Corporation” or “INV”) was established in January 2002 based on theInvestment Trust and Investment Corporation Act (Law No. 198 of 1951, as amended; hereinafter referred to as the“Investment Trust Act”). In May 2004, the Investment Corporation was listed on the Osaka Securities Exchange(application for delisting was made in August 2007), and in August 2006 it was listed on the Real Estate Investment andTrust Securities Section of the Tokyo Securities Exchange (Ticker Code: 8963).
In order to address refinancing concerns and other financial problems, after conducting a merger (“the Merger”) withLCP Investment Corporation (“LCP”) on February 1, 2010, the Investment Corporation issued new investment units
through third-party allotment to Calliope Godo Kaisha (“Calliope”), an affiliate of Fortress Investment Group LLC (“FIG”
and together with Calliope and its other affiliates, the “Fortress”), acting as the principal investor, and conducted arefinancing.
Ever since the sponsorship from Fortress, the Investment Corporation has been dedicating itself to the improvement ofoccupancy rates and the reduction of its and its properties’ expenditures by strengthening its asset management, planningand financial management capabilities. Furthermore, in September 2012, it newly acquired 24 properties (trust beneficiaryinterest in Japanese real estate) without issuing any equity, thus achieving external growth.
As a result of these efforts, the Investment Corporation’s financial condition and its portfolio earnings capacity has
substantially improved, and combined with the expansion in assets under management and revenues resulting from the newproperty acquisitions described above and the expansion of revenue from the operation of properties, the Investment
Corporation believes that a stable revenue base has been established.

(ii)

Investment Environment and Operational Performance
For the reporting period ended June, 2013 (the “reporting period”), Japan’s economy saw a continued weakening yen
and higher stock values amid the background of expectations for various policy measures aimed at overcoming deflation
through the so-called “Abenomics,” and the realization of sustained economic growth. Notwithstanding a temporary rise inlong-term interest rates and adjustments in stock-prices, real GDP growth rate for the January through March period
continued upwards to 4.1%. Moreover, the trend of economic recovery trend is reflected in the Bank of Japan’s “Tankan”―4―

(survey of June, 2013) in which, among other things, the business conditions diffusion index (DI) registered for June 2013,
as compared to March 2013, showed an improvement in the manufacturing sector of 4%, and in the non-manufacturingsector 12%.
Regarding the real estate investment market, total asset acquisitions by J-REITs from January to June wereapproximately JPY 1.4 trillion, significantly exceeding the transaction total for last year (about JPY 804.8 billion). With
Japan’s recovering economy and the weakening yen in the background, there is a recover in transactions by foreigncompanies, and the market condition is becoming more active.
On the other hand, regarding the real estate rental market, although demand continues to be strong and occupancy rates
are stable in the residential sectors of large metropolitan regions, including Tokyo, in regional areas where the employment
situation remains difficult or in the case of older buildings which are becoming outdated in terms of specifications, vacancy
periods are lengthening, rent levels continue to drop and the rental market still continues to be weak. Regarding the upscale
residential leasing sector, which worsened after the Lehman Shock, we see a trend emerging towards improvement in
occupancy rates and rent levels concentrated in prime properties in central Tokyo. Regarding the office sector, we see an
improvement in the vacancy rate of high-end properties in central Tokyo, and a tendency towards improvement of rent
levels in newly constructed large buildings, and as the overall economic situation has turned favorable, there are signs thatcertain businesses with strong operations results are increasing floor use and expanding.
In such an environment, in the reporting period the Investment Corporation did not engage in any acquisitions or salesof properties, focusing attention instead on improved profitability through internal growth.
The average occupancy rate for the overall portfolio of the Investment Corporation held steady at a stable 95.9%
through the reporting period, with 96.0% for the fiscal period ended December 31, 2012, and 95.2% for the previous fiscal
period ended in June 30, 2012.
With respect to residential properties in particular, efforts to strengthen direct sales to property management (PM)companies and brokers as well as the emphasis on implementing occupancy-rate improvement measures, including originalstate-restoration period management, have made it possible to raise the average occupancy rate up to 95.6% (as compared to95.2% for the fiscal period ended December 31, 2012, and 94.2% for the fiscal period ended June 30, 2012).
As of the end of the reporting period, the Investment Corporation’s properties are comprised of 63 residential units, 7
office buildings and retail facilities, 7 senior facilities and one parking lot – a total of 78 properties, with a total acquisition
value of JPY 77,161 million and with total rentable floor space of 171.285.50 square meters.

(iii)

Overview of Fund Raising
During the reporting period, no new fund-raising was undertaken.
The Investment Corporation made scheduled repayments of borrowings of JPY 131 million during the reporting period(Note 1), and as a result, at the end of the reporting period, the interest-bearing debt of the Investment Corporation was JPY
43,851 million and the interest-bearing debt ratio was 54.6% (Note 2).
(Note 1) Scheduled repayments include partial repayment of the Syndicate Loan B of JPY 150 million per year (JPY 17
million per quarter) and the Shinsei Trust Loan B of JPY 112 million per year (JPY 28 million per quarter).
(Note 2) The calculation for the interest-bearing debt ratio uses the calculation formula below:
Interest-bearing ratio = amount of interest-bearing debt ÷ total amount of assets at end of period x 100

―5―

(iv)

Overview of Results of Operations and Distributions
As a result of the above operational management, for the reporting period, operating revenue was JPY 2,760 million,
operating income was JPY 1,231 million, ordinary income was JPY 335 million, and net income was JPY 335 million,
showing significant improvement from the prior fiscal period.
With respect to distributions, by utilizing a portion (JPY 20 million) of the surplus resulting from the negative goodwill(the “Surplus”) from the Merger on top of net income, it has been decided to set total distributions at JPY 355 million, or
distribution per unit of

JPY 264.

For the reporting period, comprehensively taking into account factors such as the Investment Corporation’s financial
condition, the liquidity of cash in hand and the amount of the Surplus, it was decided to establish a distribution level thatwould satisfy the requirements for distribution payment. Accordingly, with respect to distributions for the reporting period,
pursuant to the Investment Corporation’s distribution policy set forth in its articles of incorporation, the distribution was set
at above the 90% of distributable profit as set forth in Article 67-15 of the Special Taxation Measures Act, with distribution
per unit of JPY 117.
(Note) The amount of distributable profit (JPY 394 million (*)) x 90% = JPY 355.4 million
The total amount of distributions for the period ended June 2013 was JPY 355.9 million, which exceeded the above
calculation of JPY 355.4 million.
(*) The amount of distributable profit (JPY 394 million) = fiscal period net profit before taxes (JPY 335 million) + thesum of negative goodwill amortization (JPY 59 million) ** for each period.
(**) The negative goodwill amortization for each period (JPY 59 million) = extraordinary gain resulting from negative
goodwill from the Merger (JPY 11,843) x (net number of months divided by 1200 months (***)).
(***) 1,200 months = a period of 100 years x 12 months (a one-year period)(b)

Outlook for the Fiscal Period Ending December 31, 2013

a. Future operational policy and issues to be addressed(i)External growth strategy
New Property Acquisitions
Going forward, the Investment Corporation will seek external growth with an emphasis on stable earnings in themedium to long term.

Acquisitions of properties with a wide variety of uses, including residential properties, officebuildings, retail facilities, hotels, senior facilities, parking facilities, etc. will be considered in light of market conditions,
expected earnings, stable cash flows, the portfolio composition ratio, the effect on portfolio composition by geographic area,and so on.
In addition, in order to further enhance the capacity to collect information about property transactions, the Investment
Corporation will explore a wide variety of acquisition opportunities in the market will work diligently to expand the
independent information network of Consonant Investment Management (“the Asset Manager”), to whom the Investment
Corporation entrusts its operations.

Furthermore, the Investment Corporation will create opportunities to regularly trade

information with Fortress, and collect information in multifaceted ways.
Property Sales
The Investment Corporation will make appropriate reviews for selecting potential candidates for sales in considerationof factors such as the portfolio composition, geographic diversification, medium to long term earnings potential, changes in―6―the market competitiveness, and additional investments for maintaining competitiveness and profitability. In addition, withrespect to property sales as well, the Investment Corporation will collect information through a wide variety of disposition
opportunities, and at the same time work diligently to expand the Asset Manager’s independent network, while creating
opportunities to regularly trade information with Fortress, and will consider appropriate property dispositions.
(ii) Strategy for internal growth
The Investment Corporation continues to make efforts to maintain and improve occupancy rates and rent levels in viewof securing stable cash flows. Through leasing strategy meetings that are held every week and otherwise as appropriate, theInvestment Corporation considers concrete measures for strengthening sales by utilizing the information network of the PM
and Asset Manager, taking preventative measures to eliminate vacancies exceeding 30 days, completion of original state
repair construction to within a 20-day period after the exit of a tenant in order to quickly lease a unit to a new tenant, and to
manage the timely implementation of such measures. For the next fiscal period and beyond, the Investment Corporation willcontinue to prepare leasing strategies that take into consideration the market and competing properties, and take thoroughand flexible measures.
Regarding management of PM companies, the Investment Corporation will continue endeavors to maintain andimprove management quality and achieve further profitability through daily supervision and directions, regular reviews ofmanagement capacity, the selection of PM companies that appropriately match each property’s unique characteristics, andso on.
Because the preparation and execution of maintenance and repair plans is an important factor in improving portfolio
earnings potential, maintaining and increasing property value and gaining still greater tenant satisfaction and trust, theInvestment Corporation will continue to prepare plans that seek to maximize of property value through product quality,
market competitiveness, improvement of occupancy rates and enhanced profitability. In addition, regarding specifications
and room layout, in order to make it possible to flexibly accommodate diversifying tenant needs, and to provide
differentiation with respect to design and functionality, the Investment Corporation will prepare and implement plans that
include tie-ups with specialized companies.
Through adequate implementation of these objectives, the Investment Corporation will seek as its long-term objective
the maximization of cash flow and the improvement of asset value.
As a result of executing the internal growth strategies discussed above, the appraisal value of the Investment
Corporation’s properties at the end of the reporting period rose to JPY 74,347 million from JPY 73,483 million, showing an
increase of JPY 864 million, thus realizing growth in asset value for three consecutive periods.
(iii) Financial strategy
In principle, the Investment Corporation will seek to target the total of its borrowings and investment corporation
bonds to be no higher than 60% of its total assets (note).
Going forward, when the Investment Corporation engages in fund-raising through borrowings from financial
institutions and raising equity for the purpose of repaying existing borrowings and acquiring new properties, the Investment
Corporation will carefully consider the tends in the capital and financial markets and decide upon the appropriate way ofraising funds accordingly.
In addition to continuing to maintain relationships that have been developed with existing lenders, the Investment
Corporation will consider opportunities for improving unitholders’ value by diligently considering fund-raising not only
from existing lenders but from other lenders, including not only domestic but overseas lenders, as well a different fund-―7―

raising techniques.

In addition, by utilizing the relationship with Fortress, efforts will be made to gather information froma variety of sources.
Based on such measures, the Investment Corporation will seek to further enhance unitholders’ value through achieving
an even more stable financial structure.
(Note) However, interest-bearing liabilities may temporarily exceed 60% in connection with the acquisition ofproperties.
(iv) Compliance risk management
While the executive officer of the Investment Corporation concurrently serves as the representative director at theAsset Manager, two supervisory directors (an attorney and a certified public account) oversee the execution of the executive
officer’s duties via the Board of Directors of the Investment Corporation.
The Asset Manager has a compliance officer who is responsible for compliance with laws, regulations and otherrelevant matters as well as overall management of transactions with sponsor related parties. Moreover, it has in place acompliance committee which, chaired by such compliance officer, is in charge of deliberating on fundamental items related
to compliance with laws, regulations and other relevant matters as transactions with sponsor related parties.
Compliance committee meetings are attended by an outside expert (an attorney) who, sitting in as a compliancecommittee member, contributes to the Asset Manager’s compliance by ensuring the compliance of related party transactions
from the standpoint of such expert’s expertise and experience and promoting restraint in decision-making as a third party.
The Investment Corporation will take steps to further strengthen its compliance structure to contribute to thetransparency and health of its operations.
(v) Significant subsequent events
Nothing applicable.
b. Operational Outlook
The following forecast is made for the fiscal period ending December 31, 2013 (the “next period”).
Fiscal period ending December 31, 2013 (from July 1, 2013 to December 31, 2013)
Operating Revenues

JPY 2,740 million

Operating Income

JPY 1,182 million

Ordinary Income

JPY 270 million

Net Income

JPY 270 million

Distribution per unit

JPY 200

Excess Profit Distributions per unit

JPY 0

With respect to operating revenues, the forecast assumes a decrease of

JPY 20 million (0.7%) to JPY 2,740 million

compared to the reporting period, due to a decrease in new leases and renewals resulting from seasonal factors. In addition,
operating income is forecast to be down JPY 49 million (4%) from the reporting period to JPY 1,182 million due to anincrease in operating costs of JPY 29 million (1.9%) resulting from an increase in repair costs and property-related taxes.
Furthermore, net income is forecast to decrease JPY 65 million (19.4%) compared to the period ended June, 31, 2013, to
JPY 270

from an increase in non-operating expenses of JPY 12 million (1.3%), including an increase in interest expense

resulting from a higher number ofoperating days when compared to the reporting period.

―8―With respect to distributions for the next period, the Investment Corporation assumes that the distribution requirement(Note 1) of the conduit requirements will not be satisfied, based on the current outlook for operational performance, theInvestment Corporation forecasts a total distribution of JPY 269 million (note 3), funded from net income, or a distributionof JPY 200 per unit.

However, the actual distribution amount will be decided in a reasonable manner at a time when theoperational performance for the next period becomes generally clearer, taking into account factors such as satisfaction of the
distribution payment requirement, the Investment Corporation’s past rack record of distributions (approximately JPY 200
per unit), stability of distributions over the medium term, financial condition, liquidity of cash on hand and the amount ofSurplus remaining.
Furthermore, the distribution of JPY 200 per unit is based on the assumption that the Surplus will not be used towards
this distribution, and thus after the next period’s distribution the surplus balance is forecast to remain unchanged at JPY 93
million.
(Note 1) One of the conduit requirements is distribution of 90% or more of distributable profit.
(Note 2) Amount of distributable profit for the fiscal period ending December 2013 (JPY 330 million (*)) x 90% = JPY
297 million(*) Fiscal period’s amount of distributable profit (JPY 330 million) = fiscal period’s net income before tax in the next
period (JPY 270 million) + amortization of negative goodwill for each period (JPY 59 million) (**).
(**) Amortization of negative goodwill for each period (JPY 59 million) = gain of negative goodwill from the merger(JPY 11,843 million) x (number of months this period ÷ 1,200 months (***)).
(***) 1,200 months = 100 years x 12 months (a one-year period).
(Note 3) The amount of distributions that is currently assumed (JPY 269 million) does not exceed the amount of
distributable profit as calculated by the above formula and thus is assumed not to satisfy that the conduit requirements.
However, due to disposition of properties in the past, the Investment Corporation has tax loss carryforwards of JPY 20, 561
million (as of June 30, 2013) some of which can be carried forward up to the 35th period (ending December 31, 2020).
Therefore, even if the conduit requirement is not satisfied, if within the applicable timeframe and amount requirements, it isexpected that the Investment Corporation will not incur any tax since taxable income will be offset by the amount of suchtax loss carryforwards.

For the operation outlook for the period ending December 31, 2013, please refer to the following section below:“Assumptions for the Forecasts for the Fiscal Period ending December 31, 2013 (from July 1, 2013 to December 31, 2013)”.

Cautionary Note regarding Forward Looking Statements
Forward looking statements such as the forecasts set forth herein are based on information currently available and certain
assumptions that are deemed reasonable. Actual operating performance may vary significantly due to factors not foreseen at thetime of this present notice, such as the occurrence of gains and losses associated with the sale of properties, repayment ofborrowings and a decrease in rent received. Also, this forecast is not a guarantee of distribution amounts.

―9―

Assumptions for the Forecasts for the Fiscal Period ending December 31, 2013 (from July 1, 2013 to December 31, 2013)
Item
Fiscal period

Assets under management

Units outstanding

Interest-bearing liabilities

Assumptions
From July 1, 2013 to December 31, 2013 (184 day period)
INV assumes the number of properties is 78 properties based on the number ofproperties held by INV as of today. In addition, INV assumes there will be newacquisitions or disposals of existing properties thereafter through to the end of the fiscal
period.
INV assumes the number of units issued and outstanding is 1,348,292 units, which isbased on the number of units issued by INV as of today. Also, INV assumes there will
be no additional issuance of investment units thereafter through to the end of the fiscal
period.
The repayments of JPY 131 million are scheduled to be made by scheduled repayments
during this fiscal period and INV assumes there will be no additional repayments of theborrowings other than the schedule repayments and no new borrowings.
INV assumes it will earn operating revenues of JPY 2,740 million for the fiscal period.

Operating revenues

Operating expenses

Rental revenues are calculated based on historical data and taking into account tenant
trends, property competitiveness, the market environment and other factors. In addition,
INV assumes there will be no delinquencies or non-payment of rent by tenants.
INV assumes it will incur property-related expenses of JPY 1,323 million. The
breakdown is as follows
JPY 462 million
・Facility management fees(of this amount, JPY 40 million are for repair costs)
JPY 176 million
・Taxes and other public charges
JPY 5 million
・Insurance expenses
JPY 47 million
・Other expenses
JPY 532 million
・Depreciation expenses
Other than depreciation expenses, the property-related expenses are calculated based on
historical data and reflect elements that may cause fluctuations. Of the assessed anddecided real property tax, city planning tax, depreciable property tax, etc. applicable toassets under management, INV records as expenses the tax amount that it expects topay during the fiscal periods.
Repair costs may vary due to changes in circumstances, etc., though they are estimatedbased on the repair plans created by the Asset Manager.

Non-operating expenses

Distribution per unit

Excess profit distribution per unit

Other

Other than these property-related expenses, INV assumes it will incur operating
expenses of JPY 233 million for the fiscal period.
INV assumes it will incur non-operating expenses of JPY 911 million for the fiscal
period. The breakdown is as follows:
JPY 811 million
・Interest expenses
JPY 98 million
・Finance related costs
JPY １million
・Other non-operating expenses
The distribution per unit is calculated in accordance with the cash distribution policy
set forth in INV’s articles of incorporation.
INV assumes it will pay the distribution using net income as the source, and plans to
distribute JPY 269 million (JPY 200 per unit).
The distribution per unit may vary due to various factors, such as fluctuations in rental
revenues resulting from changes in assets under management, changed in tenants, etc.
and the incurrence of unexpected repairs.
INV currently does not expect to make distributions in excess of profits (excess profit
distribution per unit).
INV assumes there will no amendments to laws and ordinances, the taxation system,
accounting standards and other regulations that will affect the foregoing forecasts. In
addition, INV assumes there will be no unforeseen material changes in theenvironment, including general economic trends and real estate market conditions.
In addition, INV assumes there will no unforeseen material changes in the market
environment, including general economic trends and real estate market conditions.

―10―

3.

Financial Statements(1)

Balance Sheets
Fiscal Period ended
December 31, 2012
(As of December 31, 2012)(Unit: thousands of yen)
Fiscal Period ended
June 30, 2013
(As of June 30, 2013)

745,429
2,786,480

1,427,483
2,690,331

18,370664

17,407
139

690,495
208,056

748,197
211,587

115,447(797)(1,528)4,564,147

5,093,620

2,680,174

2,680,174

AssetsCurrent Assets
Cash and deposits
Cash and deposits in trust※1

Accounts receivables
Advances paid
Deposits paid
Prepaid expenses※2

Consumption tax receivable
Allowance for doubtful accounts
Total Current Assets
Non-current Assets
Property, plant and equipment
Buildings※1

Accumulated depreciation(163,166)(190,772)

Buildings, net

2,517,007

2,489,402

Equipment※1

50,691

50,691(24,125)(26,789)

26,56623,902

3,848

3,848

Accumulated depreciation(1,261)(1,397)

Building improvements, net

2,587

2,451

2,713,620
29,664,262

2,713,620
29,677,895(1,782,176)(2,060,616)

27,882,085

27,617,278

6,608,496

6,713,907

Accumulated depreciation(1,280,186)(1,493,122)

Equipment in trust, net

5,328,309

5,220,784

Accumulated depreciation
Equipment, net
Building improvements

Land
Buildings in trust

※1

※1
※1

Accumulated depreciation
Buildings in trust, net
Equipment in trust

Building improvements in trust※1※1

Accumulated depreciation
Building improvements in trust, net

294,542

312,020(73,848)(85,630)

220,693

226,389※1

123,699(54,255)

142,175(64,333)

69,443

77,842※1

36,582,527

36,582,527

75,342,842

74,954,199

Others244

167

Total intangible assets

244

167

Total investment and other assets
Guarantee deposits

10,00010,000Long-term prepaid expenses
Others

253,406
29,381

158,394
32,680Total investments and other assets

292,787

201,075

Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment
Intangible assets

Total non-current Assets
Total Assets―11―

75,635,874

75,155,443

80,200,022

80,249,063

Fiscal Period ended
December 31, 2012
(As of December 31, 2012)(Unit: thousands of yen)
Fiscal Period ended
June 30, 2013
(As of June 30, 2013)

133,791
262,000

151,861
262,000

18,748362,5144,375
354,066503-

527
24,902

378,770
5,268

377,475
8,601

1,161,597

1,183,809

22,760,500
20,960,000

22,629,500
20,960,000

1,059,315
183,579

1,048,635
183,579

Liabilities
Current Liabilities
Accounts Payable
Current portion of long-term debts※1

Accrued liabilities
Accrued expenses
Accrued income taxes
Accrued consumption taxes
Advances received
Deposits received
Total Current Liabilities
Non-current Liabilities
Long-term debts
Long-term debts in trust※1※1

Tenant leasehold and security deposits in trust
Tenant leasehold and security deposits
Long-term accrued expenses

1,404,333

1,395,513

Total Non-current Liabilities

46,367,728

46,217,228

47,529,325

47,401,038

26,134,396

26,134,396

6,264,432
271,868

6,264,432
449,196

Total Liabilities
Net Assets
Unitholders’ Equity
Unitholders’ Capital
SurplusCapital Surplus
Unappropriated retained earnings/loss
Total Surplus
Total Unitholders’ Equity
Total Net Assets※3

Total Liabilities and Net Assets―12―

6,536,300

6,713,628

32,670,697

32,848,025

32,670,697

32,848,025

80,200,022

80,249,063

(2)Statement of Income
Fiscal Period ended
December 31, 2012
(from July 1, 2012 to
December 31, 2012)

Operating Revenues
Rental revenues※1(Unit: thousands of yen)
Fiscal Period ended
June 30, 2013
(from January 1, 2013
to June 30, 2013)

2,476,430

2,760,177

2,476,430

2,760,177

1,156,672
4,800

1,295,403
4,800

Asset management fees
Asset custodian fees

130,067
3,351

125,000
3,911

Administrative service fees
Provision of allowance for doubtful accounts

24,781797

21,531730

71,786
1,392,258

77,562
1,528,940

1,084,171

1,231,237

Non-operating Revenues
Interest revenues

487

383

Miscellaneous income

2,904

3,088

Total Non-operating Revenues

3,391

3,472

763,201
208,347

800,615
96,816

1,230
-

1,300
293

Total Operating Revenues
Operating Expenses
Property related expenses
Directors’ remuneration※1

Other operating expenses
Total Operating Expenses
Operating Income

Non-operating Expenses
Interest expenses
Finance related costs
Investment unit issuance expenses
Miscellaneous losses

972,778

899,026

Ordinary Income

Total Non-operating Expenses

114,784

335,683

Income Before Income Taxes

114,784

335,683604

605

Corporate Tax, etc.
Total Corporate Tax, etc.

604

605

Net Income

114,179

335,078

Retained Earnings at the Beginning of the Period
Unappropriated Retained Earnings/Loss at the Endof the Period

157,688

114,118

271,868

449,196

―13―

(3)

Statement of Unitholders’ Equity(Unit: thousands of yen)
Fiscal Period ended
June 30, 2013
(from January 1, 2013
to June 30, 2013)

Fiscal Period ended
December 31, 2012
(from July 1, 2012 to
December 31, 2012)
Unitholders’ Equity
Unitholders’ Capital
Balance at the beginning of the period
Change during the period

26,134,396

Total change during the period
Balance at the end of the period

26,134,396--

26,134,396

26,134,396

6,264,432

6,264,432

SurplusCapital Surplus
Balance at the beginning of the period
Change during the period
Total change during the period--

6,264,432

6,264,432

427,346

271,868

Distributions from surplus
Net income(269,658)
114,179(157,750)
335,078

Total change during the period(155,478)

177,328

271,868

449,196

6,691,778

6,536,300(269,658)
114,179(157,750)
335,078

Balance at the end of the period
Unappropriated Retained Earnings/Loss
Balance at the beginning of the period
Change during the period

Balance at the end of the period
Total Surplus
Balance at the beginning of the period
Change during the period
Distributions from surplus
Net income
Total change during the period
Balance at the end of the period(155,478)

177,328

6,536,300

6,713,628

32,826,175

32,670,697(269,658)
114,179(157,750)
335,078

Total Unitholders’ Equity
Balance at the beginning of the period
Change during the period
Distributions from surplus
Net income
Total change during the period
Balance at the end of the period(155,478)

177,328

32,670,697

32,848,025

32,826,175

32,670,697(269,658)
114,179(157,750)
335,078

Total Net Assets
Balance at the beginning of the period
Change during the period
Distributions from surplus
Net income
Total change during the period
Balance at the end of the period―14―(155,478)

177,328

32,670,697

32,848,025

(4)Statement of Cash Distribution
Fiscal Period ended December 31, 2012
Fiscal Period ended June 30, 2013
(from July 1, 2012 to December 31, 2012) (from January 1, 2013 to June 30, 2013)

Ⅰ

Unappropriated retained earnings

271,868,258 yen

449,196,371 yen

Ⅱ

Distribution Amount

157,750,164 yen

355,949,088 yen(117 yen)(264 yen)

114,118,094 yen

93,247,283 yen

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
the amount which does not exceed theamount of profits but exceeds 90% of
the distributable profit as defined in
Article 67-15 of the Special Taxation
Measures Act. However, in the eventthat any tax losses arise, or if no profits
have been recorded for tax purposes due
to tax losses carried forward, thedistribution amount may be as
reasonably determined by INV. Pursuant
to this policy, INV determined the
distribution amount to be 157,750,164
yen, which is the sum of net income of
114,179,864 yen and reversal of surplusof 43,570,300 yen. INV did not
distribute any amounts in excess of
profit, as set forth in Article 17,
Paragraph 4 of the Articles ofIncorporation.

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
the amount which does not exceed theamount of profits but exceeds 90% of
the distributable profit as defined in
Article 67-15 of the Special Taxation
Measures Act. However, in the eventthat any tax losses arise, or if no profits
have been recorded for tax purposes due
to tax losses carried forward, thedistribution amount may be as
reasonably determined by INV. Pursuant
to this policy, INV determined the
distribution amount to be 355,949,088
yen, which is the sum of net income of
335,078,277 yen and reversal of surplusof 20,870,811 yen. INV did not
distribute any amounts in excess of
profit, as set forth in Article 17,
Paragraph 4 of the Articles ofIncorporation.

(Distribution per Unit)
Ⅲ

Retained earnings carried forward

Calculation
amountmethodofdistribution

―15―

(5)

Statement of Cash Flows
Fiscal Period ended
December 31, 2012
(from July 1, 2012 to
December 31, 2012)(Unit: thousands of yen)
Fiscal Period ended
June 30, 2013
(from January 1, 2013
to June 30, 2013)

Cash Flows from Operating Activities
Net income before taxes

114,784

335,683

Depreciation expenses
Investment unit issuance expenses

481,000
1,230

543,717
1,300

Finance related costs
Amortization of tenant leasehold and security deposits

208,347(1,354)

96,816(433)

Interest received
Interest paid

(487)
763,201(383)
800,615

(33)
733

730
962

6,308
(92,135)(57,701)
115,447

Increase (decrease) in accrued consumption tax payable
Increase (decrease) in accounts payable

62,79824,902
17,493

Increase (decrease) in accrued liabilities
Increase (decrease) in accrued expenses

13,696(31,930)(13,571)
9,112

Increase (decrease) in advances received
Increase (decrease) in deposits received

90,6071,960(1,294)
3,333

Others714(3,756)

Subtotal

1,619,439

1,872,971

Proceeds of interest
Payment of interest

487(740,409)

383(818,164)

(608)

(581)

878,909

1,054,609

Payment for acquisition of tangible assets in trust
Payment of tenant leasehold and security deposits in trust(14,547,093)(39,366)(154,421)(93,409)

Proceeds of tenant leasehold and security deposits in trust
Others174,339(694)

83,162(3,298)(14,412,815)(167,967)

Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in accounts receivable
Decrease (increase) in deposit payments
Decrease (increase) in consumption tax receivable

Payment of corporate taxes, etc.
Cash Flows from Operating Activities
Cash Flows from Investing Activities

Cash Flows from Investing Activities
Cash Flows from Financing Activities
Proceeds from long-term debt

13,400,000-

Repayment of long-term debt
Proceeds from long-term debt in trust(10,981,000)
9,960,000(131,000)-Costs from issuance of investment units
Finance related costs(1,230)(251,904)(1,300)(10,636)

Payment of distributions(270,196)(157,800)

Cash Flows from Financing Activities

11,855,670(300,737)

Increase (decrease) in cash and cash equivalents(1,678,236)

585,905

Beginning balance of cash and cash equivalents

5,210,146

3,531,910

3,531,910

4,117,815※1

Closing balance of cash and cash equivalents

―16―

(6)

Notes Concerning Going Concerns Assumption
None

(7)

Notes Concerning Significant Accounting Policies

1.

Method of depreciation of non-current assets(a)Property, plant and equipment
The straight-line method is used.
The useful lives of major property, plant and equipment are as follows.
Buildings

40-77 years

Equipment

3-24 years

Building improvements

3-18 years

Buildings in trust

6-66 years

Equipment in trust

3-32 years

Building improvements in trust

3-55 years

Tools, furniture and fixtures in

2-15 years

trust
(b)

Intangible assets
The straight-line method is used.

(c)Long-term prepaid expenses
The straight-line method is used.

2.

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

3.

Revenue and expense recognition
Accounting treatment of property taxes and other taxes
With respect to property taxes, city planning taxes and depreciable asset taxes, of the tax amount assessed and determined,
the amount corresponding to the relevant fiscal period is accounted for as property related expenses.
Of the amounts paid to the seller for acquisitions of real estate, the amount equivalent to property taxes is capitalized aspart of the acquisition cost of the real estate instead of being charged as expense. There was no such amount equivalent toproperty taxes that was included as part of the acquisition of real estate during this fiscal period.

4.

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

5.

Other significant matters which constitute the basis for preparation of financial statements(1) Accounting treatment of trust beneficiary interests of real estate
As to trust beneficiary interests of real estate, all accounts of assets and liabilities within assets in trust, as well as all
income generated and expenses incurred from assets in trust, are recorded in the relevant balance sheets and income
statement accounts. Of such items, the following significant trust assets and liabilities are shown separately on the balance
sheet.
(a) Cash and deposits in trust(b) Buildings in trust
Equipment in trust
Building improvements in trust
Tools, furniture and fixtures in trust
Land in trust(c) Tenant leasehold and security deposits in trust―17―(d) Long-term debts in trust(2) Accounting treatment of consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes.

(8)Notes to the Financial Statements(Notes to the Balance Sheets)※1.

Assets pledged as collateral and liabilities with collateral

Assets pledged as collateral are as follows.
Fiscal Period ended
December 31, 2012(as of December 31, 2012)
2,786,480

Cash and deposits in trust(Unit: thousands of yen)
Fiscal Period ended
June 30, 2013(as of June 30, 2013)
2,690,331

Buildings

2,517,007

2,489,402

Equipment

26,56623,902

Building improvements

2,587

2,451

Land

2,713,620

2,713,620

Buildings in trust

27,882,085

27,617,278

Equipment in trust

5,328,309

5,220,784

Building improvements in trust

220,693

226,389

Tools, furniture and fixtures in trust

69,443

77,84236,582,527

36,582,527

78,129,323

77,644,531

Land in trust
Total
Liabilities with collateral are as follows.

Fiscal Period ended
December 31, 2012(as of December 31, 2012)(Unit: thousands of yen)
Fiscal Period ended
June 30, 2013(as of June 30, 2013)

262,000

262,000

22,760,500

22,629,500

20,960,000

20,960,000

43,982,500

43,851,500

Current portion of long-term debts
Long-term debts
Long-term debts in trust
Total
※2.

Represents amounts entrusted to financial institutions for the purpose of repayment of borrowings in trust from suchfinancial institutions.
※3.

Minimum net assets as required by Article 67, Paragraph 4 of the Act on Investment Trusts and Investment

Corporations
Fiscal Period ended
December 31, 2012(as of December 31, 2012)
50,000(Unit: thousands of yen)
Fiscal Period ended
June 30, 2013(as of June 30, 2013)
50,000―18―

(Notes to Statement of Income)※1.

Rental revenues and property related expenses are as follows:
Fiscal Period ended
December 31, 2012
(from July 1, 2012 to
December 31, 2012)(Unit: thousands of yen)
Fiscal Period ended
June 30, 2013
(from January 1, 2013
to June 30, 2013)

2,300,764

2,537,676

175,665

222,500

2,476,430

2,760,177

Maintenance costs

403,390441,633

Taxes and public dues

141,455

162,456

Insurance expenses

A.

Rental revenues

Rent/common area charges
Other revenues
Total
B.

Property related expenses

4,677

5,160

Other expenses

126,526

142,512

Depreciation expenses

480,622543,640

Total

1,156,672

1,295,403

C.

1,319,757

1,464,773

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

Number of investment units authorized and number of investment units issued and outstanding
Fiscal period ended
Fiscal period ended
December 31, 2012
June 30, 2013
(from July 1, 2012 to(from January 1, 2013
December 31, 2012)
to June 30, 2013)
Number of investment units authorized
10,000,000 units
10,000,000 units
Number of investment units issued and outstanding

1,348,292 units

1,348,292 units(Notes to Statement of Cash Flow)※1.

Relationship between cash and cash equivalents in statement of cash flows and amounts in accompanying balance sheet

Fiscal Period ended
December 31, 2012
(from July 1, 2012 to
December 31, 2012)
Cash and deposits(Unit: thousands of yen)
Fiscal Period ended
June 30, 2013
(from January 1, 2013
to June 30, 2013)

745,429

1,427,483

Cash and deposits in trust

2,786,480

2,690,331

Cash and cash equivalents

3,531,910

4,117,815―19―

(Notes Related to Lease Contracts）
Operating lease transactions (as lessee)
Remaining lease payments
Fiscal Period ended
December 31, 2012(as of December 31, 2012)(Unit: thousands of yen)
Fiscal Period ended
June 30, 2013(as of June 30, 2013)

Due within one year

112,249

112,249

Due after one year

2,448,662

2,392,537

Total

2,560,911

2,504,787

Operating lease transactions (as lessor)
Remaining lease payments
Fiscal Period ended
December 31, 2012(as of December 31, 2012)(Unit: thousands of yen)
Fiscal Period ended
June 30, 2013(as of June 30, 2013)

Due within one year

674,516

674,516

Due after one year

7,595,851

7,258,593

Total

8,270,367

7,933,109(Notes Related to Financial Instruments)
1.

Status of Financial Instruments(1) Policy for Financial Instruments
The Investment Corporation principally conducts its operations through investments in real estate and other specified
assets to seek to ensure stable income in the medium to long term.
The policy for raising funds is principally through issuing new investment units or entering into debt.
Derivative transactions are to be entered into for the purpose of hedging against the rate of future interest rate increases,
etc. and not for speculation. There are currently no derivative transactions that have been entered into.
Surplus funds are managed carefully after carefully taking into account safety, liquidity, the interest rate environment
and financing.
(2) Nature and extent of risks arising from financial instruments and risk management
The funds raised through borrowings are mainly used to acquire real estate properties or properties in trust (including
related acquisition costs) and for the repayment of existing debt. Liquidity risks relating to debt are managed by theplanning/finance department of the Asset Manager by preparing and updating plans for funds, and monitoring thecovenants set forth in loan agreements.
(3) Supplemental information regarding market value, etc. for financial instruments
The fair value of financial instruments is based on quoted market prices if available. When quoted market prices are
not available, fair value is estimated using valuation techniques which contain various assumptions. If other valuation
models or assumptions were used, the estimated value may differ.

―20―

2.

Estimated Fair Value of Financial Instruments
Book value, fair value and the difference between values as of December 31, 2012 are as follows.
(Unit: thousands of yen)Book value
Fair value
Difference
745,429

745,429―(2) Cash and deposits in trust

2,786,480

2,786,480―

Total assets

3,531,910

3,531,910―

262,000

262,039

39(4) Long-term debts

22,760,500

22,788,497

27,997(5) Long-term debts in trust

20,960,000

21,195,979

235,979

43,982,500

44,246,517

264,017(1) Cash and deposits(3) Current portion of long-term debts

Total liabilities

Book value, fair value and the difference between values as of June 30, 2013 are as follow.
Book value

Fair value(Unit: thousands of yen)
Difference(1) Cash and deposits

1,427,483

1,427,483―(2) Cash and deposits in trust

2,690,331

2,690,331―

Total assets

4,117,815

4,117,815―

262,000

263,952

1,952(4) Long-term debts

22,629,500

22,932,788

303,288(5) Long-term debts in trust

20,960,000

21,117,642

157,642

43,851,500

44,314,382

462,822(3) Current portion of long-term debts

Total liabilities(Note 1) Methods to calculate fair values of financial instruments(1) Cash and deposits (2) Cash and deposits in trust
Due to the short maturities, the book value of these instruments is deemed a reasonable approximation of the fair value, andtherefore, the book value is used as the fair value.
(3) Current portion of long-term debts (4) Long-term debts (5) Long-term debts in trust
The fair values of long-term debt with fixed interest rates are determined based on the present value of contractual cash flows
discounted at current market interest rates which would be applicable to new debt with the same amount. Long-term debt withfloating interest rates reflecting changes in market rates within a short term period are stated at their book value as their bookvalues approximate their fair values.
(Note 2) Financial instruments for which fair value is extremely difficult to value

Fiscal Period ended
December 31, 2012(as of December 31, 2012)(Unit: thousands of yen)
Fiscal Period ended
June 30, 2013(as of June 30, 2013)

Tenant leasehold and183,579
183,579
security deposits
Tenant leasehold and1,059,315
1,048,635
security deposits in trust
Tenant leasehold and security deposits and tenant leasehold and security deposits in trust have no observable market price, and it
is impracticable to reasonably estimate their future cash flows because it because the repayment dates of those deposits and thetiming of the lessee’s exit from the property are not certain. Thus, their fair value is not disclosed.

―21―

(Note 3) Remaining schedule of monetary claims after the closing date of the fiscal period
As of December 31, 2012
(Unit: thousands of yen)
Due within one Due after one Due after two Due after three Due after four Due after fiveyear
to two years to three years to four years to five years
years
Cash and deposits
Cash and deposits in trust
Total

745,429

―

―

―

―

―

2,786,480

―

―

―

―

―

3,531,910

―

―

―

―

―

As of June 30, 2013
(Unit: thousands of yen)
Due within one Due after one Due after two Due after three Due after four Due after fiveyear
to two years to three years to four years to five years
years
Cash and deposits

1,427,483

―

―

―

―

―

Cash and deposits in trust

2,690,331

―

―

―

―

―

4,117,815

―

―

―

―

―

Total

(Note 4) Redemption schedule of long-term debts and other interest-bearing indebtedness after the closing date of the fiscal period
As of December 31, 2012
(Unit: thousands of yen)
Due within one Due after one Due after two Due after three Due after four Due after fiveyear
to two years to three years to four years to five years
years
Current portion of long-term
debts
Long-term debts
Long-term debts in trust
Total

262,000

―

―

―

―

―

―

13,324,500

9,436,000

―

―

―

―

105,833

450,442516,273

3,819,427

16,068,022

262,000

13,430,333

9,886,442

516,273

3,819,427

16,068,022

As of June 30, 2013
(Unit: thousands of yen)
Due within one Due after one Due after two Due after three Due after four Due after fiveyear
to two years to three years to four years to five years
years
Current portion of long-term
debts
Long-term debts
Long-term debts in trust
Total

262,000――

22,629,500

―

―

―

―

―

320,981

491,866

3,861,986

6,238,387

10,046,777

262,000

22,950,481

491,866

3,861,986

6,238,387

10,046,777

―22―

―

―

―

―

(Notes Related to Investment Securities)
None(Notes Related to Derivative Transactions)
None(Notes Related to Retirements Payments)
None(Notes Related to Asset Retirement Obligations)
None(Notes Related to Segment and Related Information)
I.

Segment Information
Disclosure is omitted because the real estate investment business if the Investment Corporation’s sole business and it has
no reportable segments.

II.

Related Information
Fiscal Period ended December 31, 2012 (from July 1, 2012 to December 31, 2012)
1.

Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category accounted for over
90% of the operating revenue on the statement of income.

2.

Information about each geographic area
(1) Net sales
Disclosure is omitted because net sales to external customer in Japan accounted for over 90% of the operating
revenue on the statement of income.
(2) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounted for over 90%of the amount of property, plant and equipment on the balance sheet.

3.

Information about each major customer
Disclosure is omitted because net sales to any single external customer accounted for less than 10% of the operating
revenue on the statement of income.

Fiscal Period ended June 30, 2013（from January 1, 2013 to June 30, 2013）
1.

Information about each product and service
Disclosure is omitted because net sales to external customers for a single product/service category accounted for over
90% of the operating revenue on the statement of income.

2.

Information about each geographic area
(1) Net sales
Disclosure is omitted because net sales to external customer in Japan accounted for over 90% of the operating
revenue on the statement of income.
(2) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japan accounted for over 90%of the amount of property, plant and equipment on the balance sheet.

3.

Information about each major customer

Disclosure is omitted because net sales to any single external customer accounted for less than 10% of the operating
revenue on the statement of income.

(Notes Related to Rental Properties)―23―

The Investment Corporation owns residential and other properties principally in the Tokyo area and major regional cities forthe purpose of earning stable rental revenues. The book value, amount changed during the period and balance at the end of theperiod are as follows.
(Unit: thousands of yen)
Fiscal Period ended
June 30, 2013
(from January 1, 2013 toJune 30, 2013)

Fiscal Period ended
December 31, 2012
(from July 1, 2012 to
December 31, 2012)

Book value
Residential

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

Fair value at the end of the period

Book value
OfficeBalance at the
beginning of theperiodChange during theperiodBalance at the endof the period

Fair value at the end of the period

Book value
RetailBalance at the
beginning of theperiodChange during theperiodBalance at the endof the period

Fair value at the end of the period

Book value
Parking

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

Fair value at the end of the period

Book value
SeniorBalance at the
beginning of theperiodChange during theperiodBalance at the endof the period

Fair value at the end of the period

Book Value
Total

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

Fair value at the end of the period

42,701,472

56,845,746

14,144,274(325,585)

56,845,746

56,520,161

56,237,000

56,993,000

8,567,280

8,557,382(9,898)10,367

8,557,382

8,567,749

7,237,000

7,151,000

5,442,452

5,397,628(44,824)(44,821)

5,397,628

5,352,806

5,210,000

5,360,000

100,878

100,865

(13)

(13)

100,865

100,851

91,30092,3004,470,123

4,441,219(28,903)(28,590)

4,441,219

4,412,629

4,708,000

4,751,000

61,282,207

75,342,842

14,060,634(388,642)

75,342,842

74,954,199

73,483,300

74,347,300(Note 1) Book value is the figure calculated by decreasing the amount of depreciation from acquisition price (including acquisitionrelated costs).
(Note 2) The major factor of the increase for the fiscal period ended December 31, 2012 was acquisition of new properties and the
major factor of the decrease was depreciation. The major factor of the increase for the fiscal period ended June 30, 2013 wascapital expenditures related to construction work, and the major factor of the decrease was depreciation.
(Note 3) The fair value as of the end of the reporting period is determined based on the appraisal value provided by Asset Researchand Development Inc., Japan Real Estate Institute, Morii Appraisal & Investment Consulting Inc. and Tanizawa Sogo
Appraisal Co., Ltd.

―24―

For information related to profits and losses from rental properties, please refer to “Notes to Statement of Income.”―25―

(Notes Related to Retirement Payment)

1.

Significant components of deferred tax assets and liabilities
Fiscal Period ended
December 31, 2012
(from July 1, 2012 to
December 31, 2012)(Unit: thousands of yen)
Fiscal Period ended
June 30, 2013
(from January 1, 2013
to June 30, 2013)

Enterprise tax payable

564

590

Rental receivables (merger)

211

211

Allowance for doubtful accounts

291

559

6,454

6,454

Deferred tax assets - current assets

Accrued expenses
Subtotal

7,522

7,815

Valuation allowance
Total
Net deferred tax assets – current

7,522

7,815

－

－

－

－

Buildings and other (merger)

1,208,736

1,194,346

Land (merger)

2,547,099

2,547,099

Deferred tax assets – non-current assets

Long-term accrued expenses

513,845

510,618

Net loss carried forward

7,023,707

7,023,707

Subtotal

11,293,388

11,275,771

Valuation allowance
Total
Net deferred tax assets – non-current

11,293,388

11,275,771

－

－

－

－

2.

Significant difference between statutory income tax rate and the effective tax rate
Fiscal Period ended
December 31, 2012
(from July 1, 2012
to December 31, 2012)

Statutory tax rate
Deductible cash distributions
Provision of reserve for reduction entry
Others
Effective tax rate
(Notes Related to Equity-Method Income)
None.

―26―

(Unit: %)Fiscal Period ended
June 30, 2013
(from January 1, 2013
to June 30, 2013)

36.59

36.59

(17.47)(31.40)

0.63

0.18

(19.22)(5.19)

0.53

0.18

(Notes Related to Related Party Transactions)
1.

Transactions with Parent Company and Major Unitholders
Fiscal Period ended December 31, 2012 (from July 1, 2012 to December 31, 2012)

Classification

Interested
Party of the
Asset
ManagerInterested
Party of the
Asset
Manager(Note 4)

Name

Statedcapital Type of
Address(millions businessof yen)% ofvotingrightsowned

Shinsei Trust
Chuo-ku,and Banking
TokyoCo., Ltd.

5,000

FinancialBusiness―

MinatoRhodia
Godo Kaishaku,(Note 4)
Tokyo

0.1

FinancialBusiness―

Transaction
EndingamountbalanceTypeofCommon BusinessAccount(thousands(thousands
board relation- transactionof yen)of yen)member ship
(Note 1)
(Note 1)
Repaymentof longRepayment of
9,660,000
term debts 56,000
long-term debts(Note 2)
(Note 3)Long-term
prepaid
97,690expenses
Prepaid―
Lender
90,270expensesFinance
45,506
related fees
Long-term
accrued
1,404,333
expenses
Accrued17,640expenses
Interest
Accrued428,601
141,503
expenses
expensesAcquisitionof trust
Seller of
beneficiary
trustinterests of―
14,043,000――
benefici
properties
ary
in trust
interests (Note 5)(Note 6)
Relationship(Note 1) Consumption taxes are not included in transaction amounts, but are included in the balance at the end of the period.
(Note 2) The financing includes transactions for which Calliope, which became the parent company of the Asset Manager on July 29,
2011, had a portion of the economic benefit.
(Note 3) Calliope holds 609,942 units (holding ratio: 45.23%) of the issued investment units of the Company.
(Note 4) The seller, Rhodia Godo Kaisha, receives an anonymous partnership investment through funds that are managed by FIG, anaffiliate of Calliope. Accordingly, the Investment Corporation treats Rhodia Godo Kaisha as a related party.
(Note 5) The acquisition of the trust beneficiary interests relates to the properties below. Transaction amount is the purchase amountset forth in the trust beneficiary purchase agreement, and does not include other acquisition-related expenses, such as real
property and city planning tax, as well as consumption taxes.
(Note 6) The terms and conditions have been determined based on the Asset Manager’s internal rules and manual regardingtransactions with the sponsor company.

Property number

Name of property

Purchase and Sale Price(thousands of yen)A76

Neo Prominence

1,660,000

A77

Invoice Shin-Kobe Residence

1,260,000

A78

Cosmo Court Motomachi

973,000

A79

Revest Honjin

674,000

A80

Revest Matsubara

657,000

A81

Sun Terrace Minami Ikebukuro

625,000

A82

Alba Noritake Shinmachi

608,000

A83

Revest Meieki Minami

597,000

A84

Revest Heian

595,000

A85

Vendir Hamaotsu Ekimae

581,000―27―

Property number

Name of property

Purchase and Sale Price(thousands of yen)

A86

Salvo Sala

544,000

A87

Excellente Kagurazaka

543,000

A88

Luna Court Edobori

525,000

A89

Winntage Kobe Motomachi

512,000

A90

Queen's Court Fukuzumi

456,000

A91

Corp Higashinotoin

446,000

A92

Belair Oimachi

412,000

A93

Siete Minami-Tsukaguchi

374,000

A94

Prime Life Sannomiya Isogami Koen

373,000

A95

HERMITAGE NANBA WEST

355,000

A96

Century Park Shinkawa 1-bankan

335,000

A97

West Avenue

331,000

A98

Little River Honmachibashi

310,000

A99

Prime Life Mikage

297,000

Total

14,043,000

Fiscal Period ended June 30, 2013 (from January 1, 2013 to June 30, 2013)

Classification

Interested
business of
the Asset
Manager

Name

Statedcapital Type ofLocation(millions businessof yen)

Shinsei Trust
Chuo-ku,and Banking
TokyoCo., Ld.

5,000

Financialbusiness

Transaction
EndingamountbalanceCommon Business Type of
Account(thousands(thousands
board relation- transactionof yen)of yen)member ship
(Note 1)
(Note 1)
Repaymentof long-term
Repayment of
56,000debts
9,604,000
long-term debts(Note 2)
(Note 3)Long-term
prepaid
52,925expenses―
LenderPrepaid90,270Financeexpenses
44,764Long-term
related fees
accrued
1,395,513
expenses
Accrued17,640expenses
Interest
Accrued418,332
140,614expenses
expenses
Relationship% ofvotingrights―(Note 1) Consumption taxes are not included in transaction amounts, but are included in the balance at the end of the period.
(Note 2) The financing includes transactions for which Calliope, which became the parent company of the Asset Manager on July 29,
2011, had a portion of the economic benefit.
(Note 3) Calliope holds 609,942 units (holding ratio: 45.23%) of the issued investment units of the Company.
(Note 4) The terms and conditions have been determined based on the Asset Manager’s internal rules and manual regardingtransactions with the sponsor company.

―28―

2.

Transactions with Affiliates
None for both the fiscal period ended December 31, 2012 and the fiscal period ended June 30, 2013

3.

Transactions with Companies under Common Control
None for both the fiscal period ended December 31, 2012 and the fiscal period ended June 30, 2013

4.

Transactions with Directors and Major Unitholders
Fiscal Period ended July 1, 2012 (from July 1, 2012 to December 31, 2012)

Classification

Directors andclose relatives

Same as above(Note 1)
(Note 2)

(Note 3)Name

Business or occupation

Executive Director of theInvestment Corporation
Naoki
and President & CEO of
Shibatsuji
Consonant Investment
Management Co., Ltd.

Same asabove

Same as above

Transaction
amount(thousands ofyen)(Note 3)

Account

Balance atthe End of
the Period(thousands ofyen)(Note 3)－

Payment of asset
management fees toConsonant Investment
Management Co., Ltd.
(Note 1)130,067

Trade andother
payables

56,032－

Payment of generaladministration fees fororganizational management
to Consonant Investment
Management Co., Ltd.
(Note 2)

1,100

Trade andother
payables840

Ratio ofvoting rights

Details of transaction

Naoki Shibatsuji served as a representative of the third party (Consonant Investment Management Co., Ltd.), and the fee is
as set forth in the Articles of Incorporation of the Investment Corporation.
Naoki Shibatsuji served as a representative of the third party (Consonant Investment Management Co., Ltd.), and the fee is
as set forth in the agreement, “General Administrative Agreement relating to Organizational Management, between theInvestment Corporation and Consonant Investment Management Co., Ltd.
Consumption taxes are not included in transaction amounts, but are included in the balance of the end of the period.
Fiscal Period ended June 30, 2013 (from January 1, 2013 to June 30, 2013)

Classification

Directors
and close
relatives

Same as
above

Name

Business or occupation

Executive Director of theInvestment Corporation
Naoki Fukuda and President & CEO of
Consonant Investment
Management Co., Ltd.

Same as above

Same as above

Ratio ofvoting rights

Details of transactions

Transaction
amount(thousands ofyen)(Note 3)(Note 4)

Account

Balance atthe end of theperiod(thousands ofyen)(Note 3)－

Payment of asset
management fees toConsonant Investment
Management Co., Ltd.
(Note 1)125,000

Trade andother
payables

65,625－

Payment of generaladministration fees fororganizational management
to Consonant Investment
Management Co., Ltd.
(Note 2)

1,100

Trade andother
payables840(Note 1) Naoki Fukuda served as a representative of the third party (the Asset Manager), and the fee is as set forth in the Articles ofIncorporation of the Investment Corporation.
(Note 2) Naoki Fukuda served as a representative of the third party (the Asset Manager), and the fee is as set forth in the agreement,“General Administrative Agreement relating to Organizational Management, between the Investment Corporation and theAsset Manager.
(Note 3) Consumption taxes are not included in transaction amounts, but are included in the balance of the end of the period.
(Note 4) At the meeting of the board of directors of the Asset Manager held on May 31, 2013, Naoki Shibatsuji resigned as President& CEO, and Naoki Fukuda was selected by the board of directors as the successor. In addition, at the general unitholders’―29―meeting of the Investment Corporation held on June 28, 2013, Naoki Shibatsuji resigned as executive director, and Naoki
Fukuda was elected as executive director. The transaction amount includes amounts attributable to the period in which
Naoki Shibatsuji was in office.

(Notes Related to Per Unit Information)

Net assets per unit

For the Fiscal Period ended
December 31, 2012
(from July 1, 2012
to December 31, 2012)
24,231 yen

Net income per unit

For the Fiscal Period ended
June 30, 2013
(from January 1, 2013
to June 30, 2013)24,363 yen

85 yen249 yen

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

Net income for the fiscal period (thousands of yen)Amounts not attributable to common unit holders(thousands of yen)
Net income attributable to common unit holders(thousands of yen)
Average number of investment units during the period(unit)

Fiscal Period ended
December 31, 2012
(July 1, 2012 to
December 31, 2012)
114,179

Fiscal Period ended
June 30, 2013
(January 1, 2013
to June 30, 2013)
335,078――

114,179

335,078

1,348,292

1,348,292(Significant Subsequent Events)
None.

―30―

(9)

Changes in Number of Investment Units Issued and Outstanding
Changes in the number of investment units issued and outstanding and unitholders’ equity from the date of establishment to

the end of the reported fiscal period is as follows.
Number of investment units
issued and outstanding (units)
DateType of issue
Increase
Total
Private placement
January 18, 2002
400
400
for incorporation
December 26, 2003 Private placement
2,700
3,100

Unitholders’ equity (yen)Reference

Increase

Total

200,000,000

200,000,000(Note 1)

1,012,500,000

1,212,500,000(Note 2)January 9, 2004

Private Placement

1,350

4,450

506,250,000

1,718,750,000(Note 2)January 21, 2003

Private placement

1,333

5,783

499,875,000

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

Private placement

267

6,050

100,125,000

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

Private placement

800

6,850

300,000,000

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

Private placement

266

7,116

99,750,000

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

Private placement

800

7,916

300,000,000

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

Private placement

1,333

9,249

499,875,000

3,518,375,000(Note 2)

May 17, 2004

Public offering

9,000

18,2493,377,250,000

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

Public offering

10,65028,8993,937,667,100

10,833,292,100(Note 4)

July 31, 2006

Public offering

25,00053,8998,301,125,000

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

Unit split

215,596

269,495―

19,134,417,100(Note 6)

February 1, 2010

MergerThird-party
allotment

367,200

636,695―

19,134,417,100(Note 7)

711,597

1,348,292

6,999,979,689

26,134,396,789(Note 8)July 29, 2011
(Note 1)The Investment Corporation was incorporated through a private placement at a price of 500,000 yen per unit.

(Note 2)

New investment units were issued in a private placement at a price of 375,000 yen per unit to raise funds for the acquisition of new properties.

(Note 3)New investment units were issued in a public offering at a price of 395,000 per unit (375,250) yen after deducting the underwriters’ discount)(Note 4)

New investment units were issued in a public offering at a price of 385,140 yen per unit (369,734 yen after deducting the underwriters’(Note 5)New investment units were issued in a public offering at a price of 348,740 yen per unit (332,045 yen after deducting the underwriters’(Note 6)

An investment unit slit of 5 units per 1 unit was conducted.

to raise funds for the acquisition of new properties.
discount) to raise funds for the acquisition of new properties.
discount) to raise funds for the acquisition of new properties.
(Note 7)A merger by absorption pursuant to Article 147 of the Act on Investment Trusts and Investment Corporations was conducted with LCP, with
the Investment Corporation as the surviving entity. As a result of the merger by absorption, 4 investment units of the Investment Corporation(after the investment unit split) were allotted for each LCP investment unit. The number of LCP investment units issued as of the time of themerger by absorption was 91,800 units.

(Note 8)New investment units were issued in a third party allotment at a price of 9,387 yen per unit to make repayment of existing debt, etc.

―31―

4.

Change in Directors
On June 28, 2013, the previous executive director Naoki Shibatsuji resigned and Naoki Fukuda was appointed as
executive director
The executive team of Invincible Investment Corporation as of the date of this document is provided in the following table.

Position

Name

Brief personal history
Apr. 1985

Joined Dai-ichi Mutual Life Insurance Company (current: The Daiichi Life Insurance Company, Limited)

Apr. 1998

Seconded to Dai-ichi Life Capital Properties K.K. as president

Apr. 2000

Apr. 2011

Dai-ichi Mutual Life Insurance Company, Operations Division as
Division Manager
Deputy General Manager, Real Estate Department, Real Estate
Planning and Accounting Group of the same
Seconded to Dai-ichi Life International (U.S.A.), Inc. as President
Seconded to Japan Excellent Asset Management Co., Ltd as a
Director, Division Manager of Real Estate Investment Division
Seconded to SOHGO HOUSING CO., Ltd. as Executive Officer

Apr. 2012

Joined Prologis, Inc. as Senior Vice President, Finance Director, Asia

Apr. 2013

Joined Fortress Real Estate (Asia) GK as a Managing Director

Apr. 2013

Consonant Investment Management Co., Ltd. as Advisor

May 2013

Seconded to Calliope Godo Kaisha
Seconded to Consonant Investment Management, Co., Ltd. as
President and CEO, Chief Planning and Financial Officer (current
position)
Executive Director of Invincible Investment Corporation (current
position)

Apr. 2004
Apr. 2006
Apr. 2008
Executive
Naoki Fukuda
Director

May 2013

Jun. 2013

Supervisory
Director

TakashiTakahashi

Apr. 1983

Registered as lawyer

Apr. 1986

Started Takahashi Takashi Law Firm (current: Ocean General Law
Office) (current position)
Supervisory director of Invincible Investment Corporation (current
position)

Apr. 2008

Supervisory
Director

Hiroyuki
Fujimoto

Oct. 1996

Joined Tohmatsu & Co. (current: Deloitte Touche Tohmatsu LLC)

Apr. 1999

Registered as a certified public accountant

Aug. 2001

Started CPA Fujimoto Office (current position)

Dec. 2004

Registered as licensed tax accountant

Sep. 2005

Supervisory Director of LCP Investment Corporation

Feb. 2010

Supervisory Director of Invincible Investment Corporation (current
position)

Number ofinvestment
units held

0

0

0

(Note) A stockholders’ meeting was held on June 28, 2013 in which Christopher Reed was appointed as an alternate executive director of
Invincible Investment Corporation (“INV”) to prevent from falling below the number of executive officers as established in the laws
and regulations. Christopher Reed is a director of the asset manager of INV.

―32―

(2) Change in Directors of the Asset Manager
The change in directors of the Asset Manager as of fiscal period ended June 2013 is provided below.
(a)

As of May 31, 2013
Directors to be appointed
President and CEO: Naoki Fukuda
Director (part-time): Christopher Reed
Resigning directors
President and CEO: Naoki Shibatsuji
Director (part-time): E. Robert Roskind(b) As of June 27, 2013
Director to be appointed
Director and Compliance Officer: Noburu Yokoyama
Resigning director
Director and Compliance Officer: Hideyo Hironaka
The executive team of the Asset Manager as of the date of this document is provided in the following table.
Position

Name

Brief personal history
Apr. 1985

Joined Dai-ichi Mutual Life Insurance Company (current: The Daiichi Life Insurance Company, Limited)

Apr. 1998

Seconded to Dai-ichi Life Capital Properties K.K. as president

Apr. 2000

Apr. 2011

Dai-ichi Mutual Life Insurance Company, Operations Division as
Division Manager
Deputy General Manager, Real Estate Department, Real Estate
Planning and Accounting Group of the same
Seconded to Dai-ichi Life International (U.S.A.), Inc. as President
Seconded to Japan Excellent Asset Management Co., Ltd as a
Director, Division Manager of Real Estate Investment Division
Seconded to SOHGO HOUSING CO., Ltd. as Executive Officer

Apr. 2012

Joined Prologis, Inc. as Senior Vice President, Finance Director, Asia

Apr. 2013

Joined Fortress Real Estate (Asia) GK as a Managing Director

Apr. 2013

Consonant Investment Management Co., Ltd. as Advisor

May 2013

Seconded to Calliope Godo Kaisha
Seconded to Consonant Investment Management, Co., Ltd. as
President and CEO, Chief Planning and Financial Officer (current
position)
Executive Director of Invincible Investment Corporation (current
position)
Joined the Industrial Bank of Japan, Limited (current: Mizuho Bank,
Ltd.)
Division Manager of Financial Product Development Division of thesame
Exchange dealer at the London Branch of the same

Apr. 2004
Apr. 2006
President andCEO, Chief
Planning and
Financial
Officer

Apr. 2008
Naoki Fukuda

May 2013

Jun. 2013
Apr. 1975
Apr. 1990
Mar. 1991
Sep. 1997
Apr. 1998
Director andCompliance
Officer

NoburuYokoyama

Jun. 2005

Deputy General Manager of Foreign Bond Department of the same
Seconded to Wako Securities co., Ltd. (current: Mizuho Securities
Co., Ltd.) as Head of Foreign Exchange Department
Joined the Dai-ichi Mutual Life Insurance Company (current: The
Dai-ichi Life Insurance Company, Limited) as a Deputy Director
General of the Security Department
Head of the Bond Department of the same

Apr. 2007

Head of the Foreign Bond Department of the same

Apr. 2009

Seconded to SOHGO HOUSING CO., Ltd. as a Standing Statutory
AuditorDirector and Compliance Officer of Consonant Investment
Management Co., Ltd. (current position)

Oct. 1999

Jun. 2013―33―

Number ofinvestment
units held

00

Position

Director(part-time)

Corporate
AuditorName

Christopher
Reed

Shoji Aoyagi

Brief personal history
Jan. 2001

Joined Prospect Asset Management, Inc.

Mar. 2011

Seconded to PROSPECT Corporation Ltd. as a Director

Apr. 2006
Sep. 2012

Joined the same as a Director
Joined Fortress Real Estate (Asia) GK as a Director (current position)

Oct. 2012

Advisor of Consonant Investment Management Co., Ltd.

May 2013

Director (part-time) of the same (current position)

Apr. 1964

Joined Hitachi Capital Corporation

Jan. 1990

Kyokuto Securities Co., Ltd., (“Kyokuto Securities”) Accounting
managerJun. 1994

Kyokuto Securities, Director. Accounting and Financing manager

Jun. 1998

Kyokuto Securities, Advisor, Accounting and Financing manager

Jun. 2000

Kyokuto Securities, Corporate Auditor

Jun. 2003

Kyokuto Securities, Advisor

Mar. 2004

LCP REIT Advisors Co., Ltd. (current: Consonant Investment
Management Co., Ltd. (“CSNT”)), Corporate Auditor
Resigned from CSNT
Corporate Auditor of CSNT (part-time) (current position)(part-time)

Feb. 2010
Jun. 2010―34―

Number ofinvestment
units held

0

0

5.

Reference Information(1)

Composition of Investment Corporation’s Assets

Type of
Asset

Geographic area

Purpose(Note 1)

Greater Tokyo
area
Major regional
citiesSubtotal
Greater Tokyo
area
Major regional
citiesSubtotal
Greater Tokyo
area
Major regional
citiesSubtotal

－

－

－

－

－

－

－

－

－

－

－

717

0.9

715

0.9

－

－

－

－

717

0.9

715

0.9

3,078

3.8

3,061

3.8

1,463

1.8

1,452

1.8

4,542

5.7

4,513

5.6

5,259

6.6

5,229

6.5

44,51255.5

44,31255.2

12,333

15.4

12,20815.2

56,84570.9

56,520

70.4

7,089

8.8

7,092

8.8

6,147

7.7

6,111

7.6

13,23716.5

13,204

16.5

－

－

－

－

－

－

－

－

－

－

－

－

Total real estate in trust

70,083

87.4

69,72486.9

Deposits and other assets

4,857

6.1

5,294

6.6

Office/Retail

Senior, hourly
parking, etc.
Total real estate

ResidentialRealestate intrust

Fiscal Period ended
June 30, 2013(as of June 30, 2013)
Ratio of total
Amount held
assets(millions of yen)
(Note 2)(%)－

ResidentialRealestateFiscal Period ended
December 31, 2012(as of December 31, 2012)
Ratio of total
Amount held
assets(millions of yen)
(Note 2)(%)

Office/Retail

Senior, hourly
parking, etc.

Greater Tokyo
area
Major regional
citiesSubtotal
Greater Tokyo
area
Major regional
citiesSubtotal
Greater Tokyo
area
Major regional
citiesSubtotal

Total assets (Note 3)

80,200100.080,249100.0(75,342)(93.9)(74,954)(93.4)(Note 1)

Greater Tokyo area refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture.

(Note 2)

”Amount held” is from the balance sheet as of the end of the reporting period and is calculated by decreasing accumulated depreciation from theacquisition price (including acquisition related costs).

(Note 3)

The figure indicated in“()” in “total assets” shows the amount related to actual owned real estate.

Fiscal Period ended December 31, 2012(as of December 31, 2012)

Fiscal Period ended June 30, 2013(as of June 30, 2013)

Amount (millions of yen) Ratio to total assets (%) Amount (millions of yen) Ratio to total assets (%)
Total Liabilities

47,52959.3

47,401

59.1

Total Net Assets
Total Liabilities and Net
Assets

32,67040.7

32,84840.9

80,200100.080,249

100.0

―35―

(2)

Real Estate Properties
The following summarizes the real estate and real estate held in trust of the Investment Corporation held as of June 30,
2013.
(a)

Property
number(Note 1)Price and investment ratio

Name of property

A26

Nisshin Palacestage Daitabashi

A27

Nisshin Palacestage HigashiNagasaki

A28

Growth Maison Gotanda

A29

Growth Maison Kameido

A30

Emerald House

A31

Harmonie Ochanomizu

A32

Suncrest Shakujii-Koen

A33

Growth Maison Shin-Yokohama

A34

Belle Face Ueno-Okachimachi

A35

Grand Rire Kameido

A36

Growth Maison Ikebukuro

A37

Growth Maison Yoga

A38

Route Tachikawa

A39

Shibuya-Honmachi Mansion

A40

City Heights Kinuta

A41

Acseeds Tower KawaguchiNamiki

A42

Capital Heights Kagurazaka

A43

College Square Machida

A44

Belair Meguro

A45

Wacore Tsunashima I

A46

Foros Nakamurabashi

A47

Growth Maison Kaijin

A48

College Square Machiya

Location (Note 2)

BalanceAcquisition
Investment Appraisal value as
sheet
price
Type ofof June 30, 2013
ratio
carrying(millions(millions of yen)
(%)
value
ownership of yen)
(Note 5)(millions (Note 4)(Note 3)of yen)Trustbeneficiaryinterests
Trustbeneficiary
5-4-1 Nagasaki, Toshima Ward, Tokyo
interests
Trust
2-26-6 Nishi-Gotanda, Shinagawa Ward,beneficiaryTokyo
interests
Trust
6-58-16 Kameido, Koto Ward, Tokyo
beneficiaryinterests
Trust
3-27-18 Itabashi, Itabashi Ward, Tokyo
beneficiaryinterests
Trust
2-5-5 Yushima, Bunkyo Ward, Tokyo
beneficiaryinterests
Trust
3-15-35 Takanodai, Nerima Ward, Tokyo beneficiaryinterests
Trust
3-16-2 Shin-Yokohama, Kohoku-ku,
beneficiary
Yokohama City, Kanagawa Prefectureinterests
Trust
1-27-5 Higashi-Ueno, Taito Ward, Tokyo beneficiaryinterests
Trust
3-39-12 Kameido, Koto Ward, Tokyo
beneficiaryinterests
Trust
3-31-14 Nishi-Ikebukuro, Toshima Ward,beneficiaryTokyo
interests
Trust
1-15-15 Okamoto, Setagaya Ward, Tokyo beneficiaryinterests
Trust
3-7-6 Nishikicho, Tachikawa City, Tokyo beneficiaryinterests
Trust
2-35-2 Honmachi, Shibuya Ward, Tokyo
beneficiaryinterests
Trust
4-13-15 Kinuta, Setagaya Ward, Tokyo
beneficiaryinterests
Trust
2-5-13 Namiki, Kawaguchi City, Saitama
beneficiary
Prefectureinterests
Trust
71-1 Enokicho, Shinjuku Ward, Tokyo
beneficiaryinterests
Trust
3-4-4 Nakamachi, Machida City, Tokyo
beneficiaryinterests
Trust
1-2-15 Meguro, Meguro Ward, Tokyo
beneficiaryinterests
Trust
2-7-47 Tarumachi, Kohoku-ku, Yokohama
beneficiary
City, Kanagawa Prefectureinterests
Trust
1-6-6 Koyama, Nerima Ward, Tokyo
beneficiaryinterests
Trust
5-29-51 Kaijin, Funabashi City, Chiba
beneficiary
Prefectureinterests
Trust
7-3-1 Arakawa, Arakawa Ward, Tokyo
beneficiaryinterests
1-31-2 Izumi, Suginami Ward, Tokyo

―36―

1,251

1,153

1.6

1,120

(Note 6)

1,229

1,100

1.6

1,220

(Note 6)

888

855

1.2

916

(Note 6)

1,070

1,024

1.4

1,040

(Note 6)

1,505

1,436

2.0

1,170

(Note 6)

1,428

1,391

1.9

1,210

(Note 6)

1,088

1,051

1.4

997

(Note 6)

1,059

1,006

1.4

1,040

(Note 6)

1,023

993

1.3

918

(Note 6)

906

866

1.2

895

(Note 6)

825

787

1.1

798

(Note 6)

795

771

1.0

669

(Note 6)

676

655

0.9

584

(Note 6)

651

657

0.8

579

(Note 6)

646

648

0.8

448

(Note 6)

620

581

0.8

666

(Note 6)

604

619

0.8

528

(Note 6)

589

575

0.8

519

(Note 6)

589

576

0.8

529

(Note 6)

572

554

0.7

491

(Note 6)

566

538

0.7

526

(Note 6)

557

527

0.7

451

(Note 6)

510

484

0.7

487

(Note 6)

Property
number(Note 1)Name of property

A51

City House Tokyo Shinbashi

A52

Winbell Kagurazaka

A53

Nishiwaseda Cresent Mansion

A54

Lexington Square Akebonobashi

A56

Casa Eremitaggio

A59

Towa City Coop Shinotsuka II

A61Bichsel Musashiseki

A62

Lexel Mansion Ueno Matsugaya

A63

Towa City Coop Sengencho

A64

Royal Park Omachi

A65

Lexington Square Haginomachi

A66

Visconti Kakuozan

A71

Lexington Square Daitabashi

A72

Lexington Square Honjo
Azumabashi

A73

AMS TOWER Minami 6-Jo

A75

Spacia Ebisu

A76

Neo Prominence

A77

Invoice Shin-Kobe Residence

A78

Cosmo Court Motomachi

A79

Revest Honjin

A80

Revest Matsubara

A81

Sun Terrace Minami Ikebukuro

A82

Alba Noritake Shinmachi

A83

Revest Meieki Minami

A84

Revest Heian

A85

Vendir Hamaotsu Ekimae

Location (Note 2)

BalanceAcquisition
Investment Appraisal value as
sheet
price
Type ofof June 30, 2013
ratio
carrying(millions(millions of yen)
(%)
value
ownership of yen)
(Note 5)(millions (Note 4)(Note 3)of yen)Trustbeneficiaryinterests
Trust
6-15 Shin-Ogawacho, Shinjuku Ward,beneficiaryTokyo
interests
Trust
3-18-9 Nishi-Waseda, Shinjuku Ward,beneficiaryTokyo
interests
Trust
3-8 Yochomachi, Shinjuku Ward, Tokyo
beneficiaryinterests
Trust
1-14-15 Nakane, Meguro Ward, Tokyo
beneficiaryinterests
Trust
5-49-7 Higashi-Ikebukuro, Toshima Ward,beneficiaryTokyo
interests
Trust
1-22-7 Sekimachi-Kita, Nerima Ward,beneficiaryTokyo
interests
Trust
3-10-2 Matsugaya, Taito Ward, Tokyo
beneficiaryinterests
Trust
4-338-2 Sengencho, Nishi-ku, Yokohama
beneficiary
City, Kanagawa Prefectureinterests
Trust
2-11-10 Omachi, Aoba-ku, Sendai City,
beneficiary
Miyagi Prefectureinterests
Trust
1-15-16 Haginomachi, Miyagino-ku,
beneficiary
Sendai City, Miyagi Prefectureinterests
Trust
2-44 Otanacho, Chikusa-ku, Nagoya City,
beneficiary
Aichi Prefectureinterests
Trust
1-33-8 Izumi, Suginami Ward, Tokyo
beneficiaryinterests
Trust
4-20-6 Higashikomagata, Sumida Ward,beneficiaryTokyo
interests
Trust
2-5-15 Minami 6-Jo Nishi, Chuo-ku,
beneficiary
Sapporo City, Hokkaido
interests
Trust
3-6-22 Higashi, Shibuya Ward, Tokyo
beneficiaryinterests
Trust
3-21-5 Shimo, Kita Ward, Tokyo
beneficiaryinterests
Trust
3-3-8 Ikutacho, Chuo Ward, Kobe City,
beneficiary
Hyogo Prefectureinterests
Trust
3-12-20 Motomachi Dori, Chuo Ward,beneficiary
Kobe City, Hyogo Prefectureinterests
Trust
2-13 Torii Dori, Nakamura Ward, Nagoya
beneficiary
City, Aichi Prefectureinterests
Trust
3-13-12 Matsubara, Naka Ward, Nagoya
beneficiary
City, Aichi Prefectureinterests
Trust
2-22-6 Minami Ikebukuro, Toshima Ward,beneficiaryTokyo
interests
Trust
3-6-8 Noritake Shinmachi, Nishi Ward,beneficiary
Nagoya City, Aichi Prefectureinterests
Trust
2-13-33 Meiekiminami, Nakamura Ward,beneficiary
Nagoya City, Aichi Prefectureinterests
Trust
2-13-17 Heian, Kita Ward, Nagoya City,
beneficiary
Aichi Prefectureinterests
Trust
1-2-15 Hama Otsu, Otsu City, Shiga
beneficiary
Prefectureinterests
6-19-1 Shinbashi, Minato Ward, Tokyo

―37―

2,520

2,431

3.3

2,610

(Note 7)

3,260

3,156

4.2

3,400

(Note 8)

1,880

1,852

2.4

2,010

(Note 8)

1,450

1,393

1.9

1,550

(Note 9)

1,070

1,014

1.4

996

(Note 7)

866

837

1.1

930

(Note 7)

577

563

0.7

595

(Note 8)

970

915

1.3

1,050

(Note 9)

1,110

1,058

1.4

1,210

(Note 7)

415

398

0.5

450

(Note 7)

330

313

0.4

391

(Note 7)

255

243

0.3

226

(Note 9)

977

922

1.3

995

(Note 9)

511

477

0.7

516

(Note 9)

1,180

1,084

1.5

1,050

(Note 9)

7,010

6,765

9.1

6,810

(Note 7)

1,660

1,668

2.2

1,680

(Note 7)

1,260

1,273

1.6

1,280

(Note 7)

973

986

1.3

1,000

(Note 7)

674

684

0.9

697

(Note 7)

657

666

0.9

684

(Note 7)

625

629

0.8

631

(Note 7)

608

618

0.8

626

(Note 7)

597

607

0.8

609

(Note 7)

595

604

0.8

605

(Note 7)

581

590

0.8

645

(Note 7)

Property
number(Note 1)Name of property

Location (Note 2)

BalanceAcquisition
Investment Appraisal value as
sheet
price
Type ofof June 30, 2013
ratio
carrying(millions(millions of yen)
(%)
value
ownership of yen)
(Note 5)(millions (Note 4)(Note 3)of yen)Trustbeneficiaryinterests
Trust128-1 Yamabukicho, Shinjuku Ward,beneficiaryTokyo
interests
Trust
3-4-11 Edobori, Nishi Ward, Osaka City,
beneficiary
Osaka Prefectureinterests
Trust
7-2-2 Motomachi Dori, Chuo Ward, Kobe
beneficiary
City, Hyogo Prefectureinterests
Trust
1-3-10 Fukuzumi, Koto Ward, Tokyo
beneficiaryinterests
380-1 Kawaranomachi, Higashinotoin
Trust
Dori Nijo Kudaru, Chukyo Ward, Kyoto
beneficiary
City, Kyoto Prefectureinterests
Trust
5-14-17 Higashi Oi, Shinagawa Ward,beneficiaryTokyo
interests
Trust
3-18 Minami Tsukaguchimachi,
beneficiary
Amagasaki City, Hyogo Prefectureinterests
Trust
4-3-23 Isogamidori, Chuo Ward, Kobe
beneficiaryCity Hyogo Prefectureinterests
Trust
4-10-3 Sakuragawa, Naniwa Ward, Osaka
beneficiary
City, Osaka Prefectureinterests
Trust
4-1-2 Shinkawamachi, Minato Ward,beneficiary
Nagoya City, Aichi Prefectureinterests
Trust
1-5-17 Nishi, Kunitachi City, Tokyo
beneficiaryinterests
Trust
1-34 Honmachibashi, Chuo Ward, Osaka
beneficiary
City, Osaka Prefectureinterests
Trust
2-25-11 Mikage Tsukamachi, Higashi
beneficiary
Nada Ward, Kobe City, Hyogo Prefectureinterests
2-6-21 Shimanouchi, Chuo Ward, Osaka
City, Osaka Prefecture

A86

Salvo Sala

A87

Excellente Kagurazaka

A88

Luna Court Edobori

A89

Winntage Kobe Motomachi

A90

Queen's Court Fukuzumi

A91

Corp Higashinotoin

A92

Belair Oimachi

A93

Siete Minami-Tsukaguchi

A94

Prime Life Sannomiya Isogami
Koen

A95

HERMITAGE NANBA WEST

A96

Century Park Shinkawa 1-bankan

A97

West Avenue

A98

Little River Honmachibashi

A99

Prime Life Mikage

Subtotal (63 properties)
B8

Kindai Kagakusha Building

B9

Shinjuku Island

B14

Lexington Plaza Nishigotanda

B15

Cross Square NAKANO

B16Ohki Aoba Building

B17

Lexington Plaza Hachiman

B18

AEON TOWN Sukagawa

Trust
2-7-15 Ichigaya Tamachi, Shinjuku Ward,beneficiaryTokyo
interests
6-5-1 Nishi-Shinjuku, Shinjuku Ward,
Real estate
Tokyo
Trust
5-2-4 Nishigotanda, Shinagawa Ward,beneficiaryTokyo
interests
Trust
5-24-18 Nakano, Nakano Ward, Tokyo
beneficiaryinterests
Trust
9-7 Futsukacho, Aoba-ku, Sendai City,
beneficiary
Miyagi Prefectureinterests
Trust
3-1-50 Hachiman, Aoba-ku, Sendai City,
beneficiary
Miyagi Prefectureinterests
Trust
105 Furukawa, Sukagawa City,
beneficiary
Fukushima Prefectureinterests
Subtotal (7 properties)

544

553

0.7

557

(Note 7)

543

550

0.7

552

(Note 7)

525

532

0.7

538

(Note 7)

512

520

0.7

537

(Note 7)

456

460

0.6

468

(Note 7)

446

451

0.6

457

(Note 7)

412

416

0.5

420

(Note 7)

374

380

0.5

388

(Note 7)

373

378

0.5

375

(Note 7)

355

361

0.5

366

(Note 7)

335

340

0.4

337

(Note 7)

331

333

0.4

330

(Note 7)

310

315

0.4

321

(Note 7)

297

301

0.4

300

(Note 7)58,08356,52075.3

56,993

-

1,301

1,226

1.7

1,010

(Note 6)

715

715

0.9

531

(Note 8)

4,880

4,820

6.3

4,070

(Note 7)

1,060

1,046

1.4

938

(Note 7)

816

758

1.1

602

(Note 9)

3,280

3,202

4.3

3,210

(Note 8)

2,320

2,150

3.0

2,150

(Note 8)14,372

13,92018.6

12,511

-

97

100

0.1

92

(Note 6)

C1

Stop Parking Kanda-Sudacho

1-22-7, 1-22-15 Kanda sudacho, ChiyodaReal estateku, Tokyo

C21

Bon Sejour Chitose Funabashi

1-37-3 Funabashi, Setagaya Ward, Tokyo

Real estate

685

662

0.9

747

(Note 7)

C22

Bon Sejour Yotsugi

3-1-11 Higashi-Yotsugi, Katsushika Ward,
Real estate
Tokyo

652

628

0.8

692

(Note 7)

C23

Bon Sejour Hino

438-1 Ochigawa, Hino City, Tokyo

Real estate

574

555

0.7

651

(Note 7)

Real estate

486

471

0.6

552

(Note 7)

Real estate

1,050

996

1.4

1,060

(Note 7)

C24

Bon Sejour Musashi Shinjo

C25

Bon Sejour Komaki

773-2 Chitose, Takatsu-ku, Kawasaki
City, Kanagawa Prefecture
3-1 Shiroyama, Komaki City, Aichi
Prefecture―38―

Property
number(Note 1)Name of property

BalanceAcquisition
Investment Appraisal value as
sheet
price
Type ofof June 30, 2013
ratio
carrying(millions(millions of yen)
(%)
value
ownership of yen)
(Note 5)(millions (Note 4)(Note 3)of yen)Location (Note 2)

C26

Bon Sejour Hadano Shibusawa

C27

Bon Sejour Itami

1-6-60 Shibusawa-Kami, Hadano City,
Kanagawa Prefecture
1-2-25 Chuo, Itami City, Hyogo
Prefecture

Real estate

681

641

0.9

616

(Note 7)

Real estate

480

455

0.6

433

(Note 7)

Subtotal (8 properties)

4,705

4,513

6.1

4,843

-

Total (78 properties)

77,161

74,954100.0

74,347-(Note 1) “Property number” indicates the categorization of properties acquired by the Investment Corporation according to use, with “A” for residential,“B” for office and retail and “C” for senior and parking lots, and a number assigned for each property. The number following “A”, “B” and “C” isbased on how early the acquisition was made, except that for acquisitions made at the same time the number is based on how large the acquisition
price was.
(Note 2) “Location” is in principle based on the indicated address (jyukohyoji), except that if the yukohyoji system has not been implemented for such property,
the location is based on the land number (banchi).
(Note 3) “Acquisition price” is the purchase price indicated in the real estate or trust beneficiary purchase agreement. Such price excludes consumption
taxes and has been rounded down to the nearest hundred million yen.
(Note 4) “Investment ratio” is the ratio of the acquisition price to the aggregate acquisition price of the Investment Corporation’s portfolio, and has beenrounded to the second digit.
(Note 5) “Appraisal value as of June 30, 2013” is the value appraised or researched by the real estate appraiser as of the end of the fiscal period in
accordance with the Articles of Incorporation and the regulations of the Investment Trust Association, Japan. The real estate appraisers are as
follows.
Real estate appraiser(Note 6) Asset Research and Development Inc.
(Note 7) Japan Real Estate Institute(Note 8) Morii Appraisal & Investment Consulting Inc.
(Note 9) Tanizawa Sogo Appraisal Co., Ltd.

(b) Capital expenditures for properties(i)

Schedule for capital expenditures
The schedule for the principal capital expenditures for property maintenance construction, etc. as of the end of the

fiscal period for the real estate assets is as follows.

Property

Location

Nisshin
Palacestage
A27
HigashiNagasaki

ToshimaWard, Tokyo

Ohki Aoba
B16
Building

Sendai City,
MiyagiPrefecture

B14

Lexington Plaza
Nishigotanda

B17

Lexington Plaza
Hachiman

B15
B8

Cross Square
NAKANO
Kindai
Kagakusha
Building

A76 Neo Prominence

ShinagawaWard, Tokyo
Sendai City,
MiyagiPrefecture
NakanoWard, Tokyo
Shinjuku
Ward, Tokyo
Kita Ward,Tokyo

PurposeLarge-scale
maintenanceconstruction

Scheduled time of
implementation

From December
2013 to December
2013

Renewal constructionof air conditioning
From October 2013
system on the 6th andto October 2013
7th floors
From November
Renewal of central
2013 to November
monitoring device
2013
Pavement
From September
construction on
2013 to September
slopes, etc.
2013
Renovation
From August 2013
construction
to November 2013
Renewal construction
From Novemberof air conditioning
2013 to November
system2013
Maintenance
From September
construction of2013 to September
mechanical parking
2013
lot

―39―

Estimated cost (thousands of yen)
Payment for
the fiscal
Advance
Total
periodpayments
ended June30, 2013
42,500－－15,450

－

－

8,690

－

－

8,486

－

－

8,100

－

－

7,874

－

－

6,000

－

－

(ii)

Capital expenditures for the fiscal period ended June 30, 2013
The principal construction constituting capital expenditures for the real estate assets for the fiscal period ended June30, 2013 is as follows. Capital expenditures for the fiscal period was 154,997 thousand yen, and together with 22,416 of
repair cost include in this fiscal period’s expenses, construction work totaling 177,414 thousand yen was implemented.

Property
B14

Lexington Plaza
Nishigotanda

B16

Ohki Aoba
Building

B8

A27

B15

Kindai
Kagakusha
Building
Nisshin
Palacestage
HigashiNagasaki
Cross Square
NAKANO

Location
ShinagawaWard, Tokyo
Sendai City,
MiyagiPrefecture
Shinjuku Ward,Tokyo

PurposeRenewal costs of automatic
fire alarm
Renewal construction of air
conditioning system on the
3rd and 5th floors
Renewal construction of air
conditioning system on the
7th, 8th and 9th floors

Time ofimplementation
From June 2013 toJune 2013

Payment(thousands of yen)

From May 2013 to
May 2013

14,952

From May 2013 to
May 2013

11,120Toshima Ward,Tokyo

Replacement construction ofwater heater

From March 2013 toMarch 2013

9,464

Nakano Ward,Tokyo

Renovation construction of
Room 704, Room 705 andRoom 706

From May 2013 toJune 2013

8,398

Other construction

94,180
Total

(iii)

16,880154,997

Reserved funds for long-term maintenance plan
The Investment Corporation has reserved funds, as below, from the cash flow of the relevant fiscal period towards

large-scale maintenance repairs in the medium to long term future in accordance with the long-term maintenance planfor each property.
16th Period

17th Period

18th Period

19th Period

20st Period

Fiscal period

From January 1,
2011 to June 30,
2011

From July 1, 2011
to December 31,
2011

From January 1,
2012 to June 30,
2012

From July 1, 2012
to December 31,
2012

From January 1,
2013 to June 30,
2013

Reserved funds at
beginning of period
Amount reserved

489,033 thousandyen
85,250 thousand
yen
23,180 thousand
yen
551,103 thousand
yen

551,103 thousandyen
238,107 thousand
yen
432,803 thousandyen
356,408 thousandyen

356,408 thousandyen
163,931 thousandyen
32,777 thousandyen
487,561 thousandyen

487,561 thousandyen
151,076 thousandyen
97,028 thousandyen
541,609 thousandyen

541,609 thousandyen
165,233 thousandyen
135,298 thousandyen
571,543 thousandyen(Note)

Amount reversed (Note)
Amount carried over for
next fiscal period(Note) The amount reserved for the relevant fiscal period includes the reserves for acquired properties, and the amount reversed includes the reserves for
disposed properties.

―40―

(c)

Condition of income, etc.（From January 1, 2013 to June 30, 2013）(Thousands of yen)Otherexpenses

3,031

Property
relatedFacility
Tax andexpenses management other public Insurance
expenses②
feecharges
19,686

7,218

1,491

73

2,935

7,967

21,007NOI(①②+③)

40,632

5,863

25,949

8,847

2,602

101

2,914

11,483

20,54632,02927,481

26,772

709

8,423

2,199

1,321

34

516

4,350

19,057

23,408A29 Growth Maison Kameido

33,01531,528

1,487

14,911

4,517

1,688

47

2,765

5,891

18,10423,996

A30 Emerald House

50,08338,874

11,20823,263

6,750

2,569

105

4,172

9,664

26,82036,485

A31 Harmonie Ochanomizu

41,051

36,731

4,319

15,572

4,330

1,805

72

2,437

6,927

25,47832,406

A32 Suncrest Shakujii-Koen

37,02532,502

4,523

23,015

10,626

3,095

105

2,412

6,775

14,01020,785

A33 Growth Maison Shin-Yokohama

35,75333,3632,390

12,730

3,075

2,393

72

1,210

5,978

23,02229,000A34 Belle Face Ueno-Okachimachi

32,762

29,827

2,935

14,160

5,209

1,676

46

1,872

5,355

18,602

23,957

A35 Grand Rire Kameido

26,61926,619

-

7,881

148

1,696

49

500

5,487

18,73824,225

A36 Growth Maison Ikebukuro

23,607

22,101

1,505

12,439

3,743

1,060

42

2,395

5,197

11,167

16,365

A37 Growth Maison Yoga

21,693

20,863

829

9,906

2,895

1,348

42

1,807

3,810

11,787

15,597

A38 Route Tachikawa

20,36418,906

1,457

8,754

2,793

1,044

43

1,017

3,855

11,61015,466

A39 Shibuya-Honmachi Mansion

19,23818,806

431

7,661

3,980

882

36

731

2,030

11,576

13,606

A40 City Heights Kinuta

17,112

15,932

1,180

8,461

4,372

922

36

1,268

1,862

8,650

10,513

A41 Acseeds Tower Kawaguchi-Namiki

26,09623,2752,821

12,829

3,359

1,130

40

3,261

5,038

13,26618,305

A42 Capital Heights Kagurazaka

18,127

17,577

550

7,685

2,851

1,065

40

1,721

2,006

10,442

12,449A43 College Square Machida

18,26818,268

-

3,883

195

497

30

500

2,659

14,384

17,044

A44 Belair Meguro

16,304

15,613

690

5,752

1,570

836

23

1,103

2,219

10,551

12,771

A45 Wacore Tsunashima I

18,235

17,494740

10,442

4,283

889

33

1,293

3,943

7,792

11,735

A46 Foros Nakamurabashi

17,550

16,549

1,001

9,589

3,207

983

37

1,087

4,274

7,960

12,235

A47 Growth Maison Kaijin

22,24920,6901,558

14,188

4,906

2,032

89

1,672

5,489

8,060

13,549A48 College Square Machiya

14,706

14,706

-

5,141

117

944

30

500

3,549

9,564

13,114

A51 City House Tokyo Shinbashi

87,84083,001

4,839

38,584

14,365

4,912

136

6,105

13,06449,25662,320

A52 Winbell Kagurazaka

102,11194,823

7,288

37,574

9,831

6,269

154

5,695

15,62464,53780,161

A53 Nishiwaseda Cresent Mansion

73,89569,432

4,462

20,260

7,868

3,471

110

2,635

6,175

53,63459,809

A54 Lexington Square Akebonobashi

47,81844,463

3,354

21,171

5,876

2,160

61

4,365

8,706

26,64635,353

A56 Casa Eremitaggio

27,93425,7782,156

16,753

4,177

1,716

48

1,935

8,875

11,18020,055

A59 Towa City Coop Shinotsuka II

34,26932,854

1,414

15,626

6,261

1,364

74

2,863

5,062

18,642

23,705

A61 Bichsel Musashiseki

25,714

23,1702,544

12,782

5,755

1,165

50

3,059

2,751

12,932

15,683

A62 Lexel Mansion Ueno Matsugaya

32,021

26,7505,270

19,361

5,734

1,917

60

3,432

8,216

12,65920,876

A63 Towa City Coop Sengencho

61,782

56,388

5,393

32,962

16,692

3,005

121

4,151

8,991

28,81937,811

A64 Royal Park Omachi

25,936

21,941

3,995

13,895

5,561

2,392

64

1,167

4,709

12,041

16,750

A65 Lexington Square Haginomachi

18,166

15,714

2,452

9,344

2,733

1,728

40

1,294

3,547

8,822

12,370A66 Visconti Kakuozan

10,515

9,778

736

7,313

3,184

928

27

1,387

1,784

3,201

4,985

A71 Lexington Square Daitabashi

32,14030,298

1,842

14,641

2,842

1,543

44

2,207

8,002

17,49925,502

A72 Lexington Square Honjo Azumabashi

18,49817,229

1,268

8,761

1,683

808

32

1,343

4,893

9,737

14,630

A73 AMS TOWER Minami 6-Jo

48,06545,6502,415

29,018

8,040

2,148

125

4,456

14,247

19,04733,294

A75 Spacia Ebisu

187,658

168,733

18,924

71,477

14,9998,626

250

10,75936,842

116,180

153,023

A76 Neo Prominence

62,49853,8588,640

23,028

8,832

1,748

120

2,670

9,656

39,47049,126

A77 Invoice Shin-Kobe Residence

48,13345,465

2,667

20,861

5,587

1,382

66

2,373

11,451

27,271

38,723

A78 Cosmo Court Motomachi

37,18736,096

1,091

16,266

3,675

1,154

67

1,396

9,972

20,92030,893

A79 Revest Honjin

31,10029,0502,049

13,710

3,443

890

60

1,940

7,375

17,38924,765

A80 Revest Matsubara

28,957

26,9382,019

13,438

3,647

926

54

1,851

6,957

15,51922,477

A81 Sun Terrace Minami Ikebukuro

22,001

20,090

1,910

9,124

2,598

454

27

1,208

4,835

12,876

17,712

A82 Alba Noritake Shinmachi

25,40723,873

1,534

12,665

3,333

863

55

1,563

6,849

12,742

19,591

A83 Revest Meieki Minami

25,512

23,993

1,519

12,667

3,553

824

59

1,367

6,863

12,845

19,708

A84 Revest Heian

23,22722,590636

10,718

2,429

704

39

1,185

6,359

12,50818,868A85 Vendir Hamaotsu Ekimae

31,352

29,357

1,994

15,623

5,576

978

65

2,044

6,958

15,72822,687

A86 Salvo Sala

24,272

22,381

1,890

10,931

2,978

791

45

1,676

5,440

13,34018,780A87 Excellente Kagurazaka

18,157

17,344

813

8,518

2,261

389

26

1,646

4,194

9,639

13,833

A88 Luna Court Edobori

21,571

20,212

1,358

10,255

3,226

585

34

1,344

5,064

11,316

16,380A89 Winntage Kobe Motomachi

24,092

22,5401,552

11,441

2,985

793

42

1,814

5,805

12,65018,456

A90 Queen's Court Fukuzumi

16,712

15,362

1,350

6,955

1,870

380

23

1,486

3,195

9,756

12,951

A91 Corp Higashinotoin

17,92916,229

1,699

9,656

3,473

451

30

1,920

3,780

8,272

12,052

A92 Belair Oimachi

14,64013,968

672

7,360

2,783

326

19

1,556

2,675

7,279

9,955

Rent,
commonarea fees

Other
incomeA26 Nisshin Palacestage Daitabashi

Rentalrevenue①
40,694

37,662

A27 Nisshin Palacestage Higashi-Nagasaki

46,495

A28 Growth Maison Gotanda

No.

Property Name

―41―

Depreciation
expenses③

Profit and
Loss
(①－②)

28,975

Rent,
commonarea fees

Other
incomeA93 Siete Minami-Tsukaguchi

Rentalrevenue①
17,14016,031

1,109

Property
relatedFacility
Tax andexpenses management other public Insurance
expenses②
feecharges
8,230

3,440

492

45

1,011

3,240

8,909

NOI
(①②+③)A94 Prime Life Sannomiya Isogami Koen

14,804

13,972

832

6,226

1,446

423

22

908

3,426

8,577

12,003

A95 HERMITAGE NANBA WEST

14,732

13,891

841

6,924

1,966

512

26

1,073

3,344

7,808

11,153

A96 Century Park Shinkawa 1-bankan

16,94014,430

2,510

7,492

2,486

444

40

727

3,792

9,447

13,240A97 West Avenue

12,652

11,506

1,146

7,092

2,207

285

20

1,665

2,912

5,560

8,473

A98 Little River Honmachibashi

12,986

12,917

69

6,522

2,548

471

24

771

2,705

6,464

9,170

A99 Prime Life Mikage

12,315

11,763

551

5,719

1,193

380

19

1,165

2,960

6,596

9,556

B8

Kindai Kagakusha Building

37,89033,0104,880

22,602

8,248

4,321

77

1,051

8,903

15,28824,192

B9

Shinjuku Island（Note）

No.

Property Name

Other
expenses

Depreciation
expenses③

Profit and
Loss
(①－②)

12,150（Note）（Note）（Note）（Note）（Note）（Note）（Note）（Note）（Note）（Note）

B14 Lexington Plaza Nishigotanda

134,136

119,350

14,786

83,06026,472

12,687208

2,520

41,17051,07692,247

B15 Cross Square NAKANO

28,611

23,215

5,396

16,174

6,564

3,859

88

2,094

3,567

12,436

16,004

B16 Ohki Aoba Building

40,24932,1598,090

30,056

10,376

5,826

110

866

12,875

10,19323,068

B17 Lexington Plaza Hachiman

155,659

127,625

28,03482,73342,966

17,422171

2,025

20,14672,926

93,072

B18 AEON TOWN Sukagawa

140,817140,817-

94,55956,124

8,157

212

626

29,43846,25775,696

C1

Stop Parking Kanda-Sudacho

2,443

2,443

-

267

-

253

-

-

13

2,176

2,190

C21 Bon Sejour Chitose Funabashi

23,544

22,179

1,364

5,429

227

1,755

61

-

3,384

18,115

21,499C22 Bon Sejour Yotsugi

22,20822,208

-

4,809

224

1,025

40

-

3,517

17,39920,917

C23 Bon Sejour Hino

21,197

21,197

-

4,117

213

1,190

47

-

2,665

17,07919,745

C24 Bon Sejour Musashi Shinjo

17,606

17,606

-

3,256

167

928

43

-

2,117

14,35016,467

C25 Bon Sejour Komaki

44,47944,479-12,836

201

4,746

197

-

7,691

31,64239,334

C26 Bon Sejour Hadano Shibusawa

23,371

23,041

330

6,839

213

925

84

-

5,616

16,531

22,148C27 Bon Sejour Itami
Total

15,963

15,963

-

5,199

145

1,402

55

-

3,595

10,764

14,3592,760,177

2,537,676

222,500

1,295,403

441,633

162,456

5,160

142,512543,640

1,464,773

2,008,413(Note) Not disclosed because the consent of the tenant was not obtained.

―42―

(3)

Tenant Summary(a)Summary of lease conditions by property(As of June 30, 2013）
Leased Area(m2)
(Note 2)

LeasableUnits(units)(Note 3)

1,771.13

1,735.21

98

96

1

Best Property Corporation

40,694

1.5

Pass throughmaster lease

2,681.94

2,639.58

60

59

1

Best Property Corporation

46,495

1.7

Pass throughmaster lease

A28 Growth Maison Gotanda

1,051.50

1,051.50

48

48

1

Tokyu Livable, Inc.

27,481

1.0

Pass throughmaster lease

A29 Growth Maison Kameido

1,367.96

1,286.12

66

62

1

Mitsui Home Estate Co., Ltd.

33,015

1.2

Pass throughmaster lease

A30 Emerald House

2,152.31

2,152.31

96

96

1

Tokyo Gakusei Life Co., Ltd.

50,083

1.8

Pass throughmaster lease

A31 Harmonie Ochanomizu

1,748.24

1,542.32

65

59

1

Tokyu Livable, Inc.

41,051

1.5

Pass throughmaster lease

A32 Suncrest Shakujii-Koen

3,029.16

2,897.22

29

27

1

Mitsui Home Estate Co., Ltd.

37,025

1.3

Pass throughmaster lease

A33 Growth Maison Shin-Yokohama

1,858.44

1,804.68

68

66

1

Tokyu Livable, Inc.

35,753

1.3

Pass throughmaster lease

A34 Belle Face Ueno-Okachimachi

1,351.11

1,351.11

64

64

1

Mainichicomnet Co., Ltd.

32,762

1.2

Pass throughmaster lease

A35 Grand Rire Kameido

1,562.26

1,562.26

72

72

1

J.S.B. Co., Ltd.

26,6191.0

Fixed rentmaster lease

A36 Growth Maison Ikebukuro

952.89840.0042371Tokyu Livable, Inc.

23,607

0.9

Pass throughmaster lease

A37 Growth Maison Yoga

1,015.34

987.6939

38

1

Mitsui Home Estate Co., Ltd.

21,6930.8

Pass throughmaster lease

A38 Route Tachikawa

1,368.57

1,050.03

24

20

1

Tokyu Livable, Inc.

20,364

0.7

Pass throughmaster lease

A39 Shibuya-Honmachi Mansion

1,167.50

943.4325

21

1Tokyu Livable, Inc.

19,238

0.7

Pass throughmaster lease

A40 City Heights Kinuta

1,235.93

1,169.33

19

18

1

Mitsui Home Estate Co., Ltd.

17,112

0.6

Pass throughmaster lease

A41 Acseeds Tower Kawaguchi-Namiki

1,210.74

1,125.70

57

53

1

Access Group, Inc.

26,096

0.9

Pass throughmaster lease

A42 Capital Heights Kagurazaka

1,126.65

1,095.17

26

25

1

Mitsui Home Estate Co, Ltd.

18,127

0.7

Pass throughmaster lease

A43 College Square Machida

1,047.75

1,047.75

62

62

1

Mainichicomnet Co., Ltd.

18,268

0.7

Fixed rentmaster lease

A44 Belair Meguro

557.05534.6425

24

1Tokyu Livable, Inc.

16,304

0.6

Pass throughmaster lease

A45 Wacore Tsunashima I

908.99817.715045

1Tokyu Livable, Inc.

18,235

0.7

Pass throughmaster lease

A46 Foros Nakamurabashi

815.77750.5137

34

1Mitsui Home Estate Co., Ltd.

17,550

0.6

Pass throughmaster lease

A47 Growth Maison Kaijin

2,040.27

1,926.60

34

32

1

Mitsui Home Estate Co., Ltd.

22,2490.8

Pass throughmaster lease

A48 College Square Machiya

871.35871.354343

1

Mainichicomnet Co., Ltd.

14,706

0.5

Fixed rentmaster lease

A51 City House Tokyo Shinbashi

3,364.00

3,364.00

86

86

1

Mitsui Home Estate Co., Ltd.

87,840

3.2

Pass throughmaster lease

A52 Winbell Kagurazaka

4,032.70

3,908.60

118

115

1

Mitsui Home Estate Co., Ltd.

102,111

3.7

Pass throughmaster lease

A53 Nishiwaseda Cresent Mansion

4,310.77

4,245.84

69

68

1

Tokyu Livable, Inc.

73,895

2.7

Pass throughmaster lease

A54 Lexington Square Akebonobashi

1,987.88

1,875.75

88

83

1

Mitsui Home Estate Co., Ltd.

47,818

1.7

Pass throughmaster lease

A56 Casa Eremitaggio

1,197.19

1,077.05

17

15

1

Tokyu Livable, Inc.

27,934

1.0

Pass throughmaster lease

A59 Towa City Coop Shinotsuka II

1,627.13

1,543.71

58

55

1

Mitsui Home Estate Co., Ltd.

34,2691.2

Pass throughmaster lease

A61 Bichsel Musashiseki

1,220.24

1,167.46

70

67

1

Mitsui Home Estate Co., Ltd.

25,714

0.9

Pass throughmaster lease

A62 Lexel Mansion Ueno Matsugaya

1,969.45

1,710.05

29

25

1

Tokyu Livable, Inc.

32,021

1.2

Pass throughmaster lease

A63 Towa City Coop Sengencho

3,426.36

3,252.20

154

146

1

Tokyu Livable, Inc.

61,782

2.2

Pass throughmaster lease

A64 Royal Park Omachi

1,929.59

1,929.59

51

51

1

One-Eyed Capital Advisers

25,936

0.9

Pass throughmaster lease

A65 Lexington Square Haginomachi

1,528.58

1,528.58

39

39

1

One-Eyed Capital Advisers

18,166

0.7

Pass throughmaster lease

A66 Visconti Kakuozan

705.75705.758

8

1

Mitsui Home Estate Co., Ltd.

10,515

0.4

Pass throughmaster lease

A71 Lexington Square Daitabashi

1,430.64

1,360.34

43

41

1

Nisshin Jyutaku Support K.K.

32,140

1.2

Pass throughmaster lease

Lexington Square Honjo
Azumabashi

784.74736.6433

31

1Nisshin Jyutaku Support K.K.

18,498

0.7

Pass throughmaster lease

No.

Property Name

A26 Nisshin Palacestage Daitabashi
A27

A72

Nisshin Palacestage HigashiNagasaki

LeasedUnits Number oftenants(units)(Note 4)

RentalRatio of
Revenue
Rental(Thousands ofRevenueyen)(%)(Note 6)

Leasable Area(m2)
(Note 1)

―43―

Tenants (Note 5)

Type of
Lease(Note 7)

Leased Area(m2)
(Note 2)

LeasableUnits(units)(Note 3)

A73 AMS TOWER Minami 6-Jo

4,460.56

3,933.48

120

107

1

Big Service Co., Ltd.

48,065

1.7

Pass throughmaster lease

A75 Spacia Ebisu

7,794.91

7,030.36

109

99

1

Tokyu Livable, Inc.

187,658

6.8

Pass throughmaster lease

A76 Neo Prominence

3,574.70

3,451.60

52

50

1

Goodworks Co., Ltd.

62,498

2.3

Pass throughmaster lease

A77 Invoice Shin-Kobe Residence

2,773.71

2,734.74

81

80

1

Sohgoh Real Estate

48,133

1.7

Pass throughmaster lease

A78 Cosmo Court Motomachi

2,310.49

2,140.81

82

76

1

Global Community Co., Ltd.

37,187

1.3

Pass throughmaster lease

A79 Revest Honjin

1,933.80

1,909.71

80

79

1

Mininet, Inc.

31,100

1.1

Pass throughmaster lease

A80 Revest Matsubara

1,955.40

1,870.37

70

67

1

Mininet, Inc.

28,957

1.0

Pass throughmaster lease

A81 Sun Terrace Minami Ikebukuro

898.70875.0538

37

1

Goodworks Co., Ltd.

22,001

0.8

Pass throughmaster lease

A82 Alba Noritake Shinmachi

1,731.68

1,623.62

64

60

1

Mininet, Inc.

25,407

0.9

Pass throughmaster lease

A83 Revest Meieki Minami

1,634.60

1,634.60

61

61

1

Mininet, Inc.

25,512

0.9

Pass throughmaster lease

A84 Revest Heian

1,554.03

1,554.03

40

40

1

Mininet, Inc.

23,227

0.8

Pass throughmaster lease

A85 Vendir Hamaotsu Ekimae

2,670.66

2,548.02

81

78

1

Mininet, Inc.

31,352

1.1

Pass throughmaster lease

A86 Salvo Sala

1,428.12

1,400.19

54

53

1

Daygran, Inc.

24,272

0.9

Pass throughmaster lease

A87 Excellente Kagurazaka

701.92681.2933

32

1

Goodworks Co., Ltd.

18,157

0.7

Pass throughmaster lease

A88 Luna Court Edobori

1,185.50

1,161.93

50

49

1

Nihon Housing Co., Ltd.

21,571

0.8

Pass throughmaster lease

A89 Winntage Kobe Motomachi

1,433.35

1,360.27

57

54

1

Global Community Co., Ltd.

24,092

0.9

Pass throughmaster lease

A90 Queen's Court Fukuzumi

765.18765.1825

25

1

Goodworks Co., Ltd.

16,712

0.6

Pass throughmaster lease

A91 Corp Higashinotoin

1,029.05

1,005.61

42

41

1

Global Community Co., Ltd.

17,9290.6

Pass throughmaster lease

A92 Belair Oimachi

530.60530.6026

26

1

Goodworks Co., Ltd.

14,640

0.5

Pass throughmaster lease

A93 Siete Minami-Tsukaguchi

1,020.86

1,020.86

40

40

1

Goodworks Co., Ltd.

17,140

0.6

Pass throughmaster lease

A94 Prime Life Sannomiya Isogami Koen

789.12789.1232

32

1

Global Community Co., Ltd.

14,804

0.5

Pass throughmaster lease

A95 HERMITAGE NANBA WEST

992.76862.7321

19

1

Daygran, Inc.

14,732

0.5

Pass throughmaster lease

A96 Century Park Shinkawa 1-bankan

1,477.62

1,343.15

44

40

1

Goodworks Co., Ltd.

16,940

0.6

Pass throughmaster lease

A97 West Avenue

794.80655.6640

33

1

Joint Property Co., Ltd.

12,652

0.5

Pass throughmaster lease

A98 Little River Honmachibashi

974.81

914.4531

29

1

Goodworks Co., Ltd.

12,986

0.5

Pass throughmaster lease

A99 Prime Life Mikage

761.18761.1828

28

1Global Community Co., Ltd.

12,315

0.4

Pass throughmaster lease

B8

Kindai Kagakusha Building

1,451.54

1,451.54

13

13

1

Best Property Corporation

37,890B9

Shinjuku Island

526.43526.43

1

1

1

B14

Lexington Plaza Nishigotanda

6,033.58

5,437.21

11

10

8

Community One Co., Ltd.

134,136

B15

Cross Square NAKANO

2,145.00

1,235.66

45

19

1

Nisshin Jyutaku Support K.K.

28,611

B16

Ohki Aoba Building

2,178.41

2,178.41

13

13

1

Tozai Asset Management Co., Ltd.

40,249

1.5

Fixed rentmaster lease

B17

Lexington Plaza Hachiman

8,419.15

8,419.15

18

18

1

Tokyo Biso Kogyo Corporation

155,659

5.6

Pass throughmaster lease

B18

AEON TOWN Sukagawa

18,440.58

18,440.58

1

1

1

Aeon Town Co., Ltd.

140,817

5.1

Fixed rent
lease

C1

Stop Parking Kanda-Sudacho

81.04

81.04

1

1

1

Office-attend Co., Ltd.

2,443

0.1

Direct fixed
rent lease(Note 11)

C21

Bon Sejour Chitose Funabashi

2,342.17

2,342.17

42

42

1

Benesse Style Care Co., Ltd.

23,544

0.9

Direct fixed
rent lease(Note 11)

C22

Bon Sejour Yotsugi

1,962.87

1,962.87

62

62

1

Benesse Style Care Co., Ltd.

22,2080.8

Direct fixed
rent lease(Note 11)

C23

Bon Sejour Hino

1,984.17

1,984.17

56

56

1

Benesse Style Care Co., Ltd.

21,1970.8

Direct fixed
rent lease(Note 11)

Property Name

LeasedUnits Number of(units)tenants(Note 4)

RentalRatio of
Revenue
Rental(Thousands ofRevenueyen)(%)(Note 6)

Leasable Area(m2)
(Note 1)

No.

―44―

Tenants (Note 5)(Note 8)(Note 8)Type of
Lease(Note 7)

Pass throughmaster lease
Directvariable rent
(Note 8)lease
(Note 9)Variable rent
4.9
lease
(Note 10)
Pass through1.0
master lease
1.4

Leased Area(m2)
(Note 2)

LeasableUnits(units)(Note 3)

Bon Sejour Musashi Shinjo

1,710.43

1,710.43

46

46

1

Benesse Style Care Co., Ltd.

17,606

0.6

Direct fixed
rent lease(Note 11)

C25

Bon Sejour Komaki

8,858.49

8,858.49

123

123

1

Benesse Style Care Co., Ltd.

44,479

1.6

Direct fixed
rent lease(Note 11)

C26

Bon Sejour Hadano Shibusawa

3,435.79

3,435.79

100

100

1

Benesse Style Care Co., Ltd.

23,371

0.8

Direct fixed
rent lease(Note 11)

C27

Bon Sejour Itami

2,129.87

2,129.87

62

62

1

Benesse Style Care Co., Ltd.

15,963

0.6

Direct fixed
rent lease(Note 11)

Total

171,285.50

164,340.20

4,007

3,833

85

2,760,177

100.0

－

Property Name

C24

(Note 1)

LeasedUnits Number of(units)tenants(Note 4)

RentalRatio of
Revenue
Rental(Thousands ofRevenueyen)(%)(Note 6)

Leasable Area(m2)
(Note 1)

No.

Tenants (Note 5)－

Type of
Lease(Note 7)

“Leasable Area” is based on the portion of each property or property in trust owned by the Investment Corporation and leasable as residential,
office, retail etc.

(Note 2)

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

(Note 3)

“Leasable Units” is the number of units possible to lease for each property or property in trust.

(Note 4)

“Leased Units” is the number of units actually leased to tenants and end-tenants based on lease agreements.

(Note 5)“Tenant” is the master lessee where there is a master lease agreement between the Investment Corporation or the trustee and a master lease
company, and the principal lessee where there are direct lease agreements with end-tenants.

(Note 6)

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

(Note 7)

Pursuant to pass through master lease agreements between the master lease company and the trustee, the master lease company pays the amount
paid by end-tenants pursuant to subleases. Pursuant to fixed rent master lease agreements, the master lease company pays fixed rent.

(Note 8)Not disclosed because the consent of the tenant was not obtained.

(Note 9)A direct lease agreement has been entered into between the Investment Corporation and the tenant (without using a master lease company), andrent is received from the end tenant pursuant thereto.

(Note 10) A direct lease agreement has been entered into between the trustee and the tenant (without using a master lease company), and rent is received
from the end tenant pursuant thereto.
(Note 11) A direct lease agreement has been entered into between the Investment Corporation and the tenant (without using a master lease company). The
lease is fixed rent regardless of use or occupancy conditions.

―45―

(b)

Occupancy trend(Unit: %)15th Fiscal
PeriodAs ofDec. 2010

16th Fiscal
PeriodAs ofJun. 2011

17th Fiscal
PeriodAs ofDec. 2011

18th Fiscal
PeriodAs ofJun. 2012

19th Fiscal
PeriodAs ofDec. 2012

As ofJan. 2013

As ofFeb. 2013

As ofMar. 2013

As ofApr. 2013

As of
May 2013

As ofJun. 2013

A26 Nisshin Palacestage Daitabashi

93.8

89.8

94.8

95.8

96.9

95.0

98.0

95.9

98.0

98.0

98.0

A27 Nisshin Palacestage Higashi-Nagasaki

94.4

94.4

95.3

97.8

90.3

92.8

94.5

96.4

98.4

95.5

98.4

A28 Growth Maison Gotanda

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

A29 Growth Maison Kameido

93.9

92.5

89.4

95.4

94.0

92.4

94.0

98.5

97.0

100.0

94.0

A30 Emerald House

91.1

100.0

98.9

100.0

99.0

99.0

92.8

97.9

100.0

100.0

100.0

A31 Harmonie Ochanomizu

89.6

93.6

88.5

96.1

100.0

100.0

98.8

94.8

92.1

92.1

88.2

A32 Suncrest Shakujii-Koen

97.1

95.0

95.4

97.1

94.7

94.7

89.6

97.7

97.7

95.6

95.6

A33 Growth Maison Shin-Yokohama

100.0

100.0

100.0

94.1

98.5

100.0

100.0

97.0

97.0

97.1

97.1

A34 Belle Face Ueno-Okachimachi

93.7

100.0

93.4

100.0

98.4

98.4

95.3

100.0

100.0

100.0

100.0

A35 Grand Rire Kameido

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

A36 Growth Maison Ikebukuro

100.0

100.0

100.0

90.5

90.6

90.6

85.8

95.3

92.8

88.2

88.2

A37 Growth Maison Yoga

100.0

100.0

100.0

92.4

92.2

87.2

100.0

97.4

92.0

94.6

97.3

A38 Route Tachikawa

74.7

96.6

93.2

67.9

100.0

100.0

100.0

100.0

96.6

86.9

76.7

A39 Shibuya-Honmachi Mansion

84.5

83.4

96.5

96.5

100.0

100.0

100.0

92.2

92.2

86.4

80.8

A40 City Heights Kinuta

89.2

83.8

94.6

94.6

89.2

89.2

89.2

100.0

94.6

94.6

94.6

A41 Acseeds Tower Kawaguchi-Namiki

89.5

100.0

100.0

94.8

100.0

98.2

98.2

96.5

96.5

93.0

93.0

A42 Capital Heights Kagurazaka

82.6

95.2

85.7

84.4

92.5

84.4

86.1

94.4

97.2

97.2

97.2

A43 College Square Machida

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

A44 Belair Meguro

92.3

91.9

100.0

87.9

92.1

100.0

100.0

100.0

100.0

100.0

96.0

A45 Wacore Tsunashima I

95.8

91.9

98.0

84.2

96.1

94.1

94.0

98.0

91.9

90.0

90.0

A46 Foros Nakamurabashi

100.0

94.2

89.3

92.6

100.0

100.0

100.0

100.0

100.0

94.5

92.0

A47 Growth Maison Kaijin

97.4

95.1

97.4

96.7

97.1

97.1

97.1

100.0

100.0

91.9

94.4

A48 College Square Machiya

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

A51 City House Tokyo Shinbashi

95.7

88.1

88.5

93.0

90.8

92.2

96.5

97.8

95.6

97.8

100.0

A52 Winbell Kagurazaka

93.5

95.3

96.1

93.3

96.4

95.4

95.3

98.3

96.1

95.5

96.9

A53 Nishiwaseda Cresent Mansion

91.2

94.3

90.7

88.8

100.0

100.0

100.0

97.7

99.2

99.2

98.5

A54 Lexington Square Akebonobashi

95.4

86.4

91.3

93.4

93.1

94.4

95.4

96.6

95.4

94.3

94.4

A56 Casa Eremitaggio

83.0

87.1

90.5

90.0

92.9

90.0

90.0

83.4

80.5

90.0

90.0

A59 Towa City Coop Shinotsuka II

93.8

92.2

90.1

92.6

97.3

94.7

96.1

97.5

92.2

93.4

94.9

A61 Bichsel Musashiseki

97.1

84.3

90.0

97.1

97.1

97.1

90.0

97.1

98.5

98.5

95.7

A62 Lexel Mansion Ueno Matsugaya

86.4

96.8

93.2

96.3

93.2

86.5

86.5

83.7

83.7

83.7

86.8

A63 Towa City Coop Sengencho

85.4

95.7

96.3

89.8

94.3

93.0

93.0

94.9

92.4

92.4

94.9

A64 Royal Park Omachi

81.5

83.7

89.0

93.2

96.4

100.0

100.0

100.0

100.0

96.4

100.0

A65 Lexington Square Haginomachi

97.6

97.4

97.4

100.0

100.0

100.0

97.4

97.4

100.0

100.0

100.0

A66 Visconti Kakuozan

78.3

72.5

89.7

100.0

88.6

100.0

100.0

100.0

100.0

100.0

100.0

A71 Lexington Square Daitabashi

95.1

90.9

97.2

97.9

95.1

95.1

97.2

95.1

95.1

93.0

95.1

A72 Lexington Square Honjo Azumabashi

94.0

97.0

87.9

90.9

100.0

100.0

100.0

100.0

97.0

97.0

93.9

A73 AMS TOWER Minami 6-Jo

72.5

84.3

96.1

88.6

90.0

92.9

92.5

89.3

90.4

94.0

88.2

A75 Spacia Ebisu

88.7

88.7

91.3

97.1

92.2

92.7

95.6

94.2

91.3

91.0

90.2

A76 Neo Prominence

－

－

－

－

94.8

91.4

93.0

98.2

96.4

96.4

96.6

A77 Invoice Shin-Kobe Residence

－

－

－

－

99.1

100.0

97.7

93.5

93.0

95.8

98.6

A78 Cosmo Court Motomachi

－

－

－

－

97.5

97.5

97.5

100.0

100.0

95.0

92.7

A79 Revest Honjin

－

－

－

－

93.8

96.3

98.8

98.8

98.8

98.8

98.8

A80 Revest Matsubara

－

－

－

－

91.9

92.5

94.9

98.7

97.5

97.5

95.7

A81 Sun Terrace Minami Ikebukuro

－

－

－

－

100.0

100.0

100.0

100.0

97.4

97.4

97.4

A82 Alba Noritake Shinmachi

－

－

－

－

98.6

97.2

95.1

94.5

97.2

95.2

93.8

A83 Revest Meieki Minami

－

－

－

－

97.0

96.6

93.6

100.0

98.2

100.0

100.0

A84 Revest Heian

－

－

－

－

95.2

96.8

98.4

100.0

96.8

98.4

100.0

A85 Vendir Hamaotsu Ekimae

－

－

－

－

93.3

93.3

93.9

98.5

96.9

92.7

95.4

A86 Salvo Sala

－

－

－

－

89.9

92.0

93.7

95.6

91.8

95.6

98.0

A87 Excellente Kagurazaka

－

－

－

－

100.0

97.1

97.1

97.1

94.1

100.0

97.1
98.0

No.

Property Name

20st Fiscal Period

A88 Luna Court Edobori

－

－

－

－

96.0

96.0

98.0

100.0

98.0

94.0

A89 Winntage Kobe Motomachi

－

－

－

－

98.2

98.2

94.9

98.4

96.6

100.0

94.9

A90 Queen's Court Fukuzumi

－

－

－

－

100.0

100.0

100.0

92.5

100.0

100.0

100.0

A91 Corp Higashinotoin

－

－

－

－

100.0

93.2

88.2

100.0

97.7

95.4

97.7

A92 Belair Oimachi

－

－

－

－

92.6

92.6

96.4

100.0

100.0

96.4

100.0

―46―

15th Fiscal
PeriodAs ofDec. 2010

16th Fiscal
PeriodAs ofJun. 2011

17th Fiscal
PeriodAs ofDec. 2011

18th Fiscal
PeriodAs ofJun. 2012

A93 Siete Minami-Tsukaguchi

－

－

－

A94 Prime Life Sannomiya Isogami Koen

－

－

－

A95 HERMITAGE NANBA WEST－－

A96 Century Park Shinkawa 1-bankan－

A97 West Avenue
A98 Little River Honmachibashi

No.

Property Name

19th Fiscal
PeriodAs ofDec. 2012

As ofJan. 2013

As ofFeb. 2013

As ofMar. 2013

As ofApr. 2013

As of
May 2013

As ofJun. 2013

－

94.9

97.5

97.5

100.0

100.0

100.0

100.0

－

100.0

96.9

96.9

100.0

100.0

100.0

100.0

－

－

91.2

91.2

91.2

100.0

86.9

82.6

86.9

－

－

－

100.0

100.0

97.7

95.5

93.2

93.2

90.9

－

－

－

－

90.0

92.5

85.0

75.0

80.0

80.0

82.5

－

－

－

－

96.9

96.9

100.0

100.0

100.0

93.8

93.8

20st Fiscal Period

A99 Prime Life Mikage

－

－

－

－

85.5

88.7

96.7

100.0

100.0

96.7

100.0

B8

Kindai Kagakusha Building

67.2

75.2

85.5

85.5

100.0

92.0

92.0

100.0

100.0

100.0

100.0
100.0

B9

Shinjuku Island

0.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

B13

New Edobashi Building

63.4

51.2

－

－

－

－

－

－

－

－

－

B14

Lexington Plaza Nishigotanda

72.3

62.4

92.0

92.0

100.0

81.9

81.9

90.1

90.1

90.1

90.1

B15

Cross Square NAKANO

54.7

49.2

44.3

54.0

54.2

54.2

54.2

50.8

50.8

52.6

57.6

B16

Ohki Aoba Building

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

B17

Lexington Plaza Hachiman

97.3

94.6

94.6

94.6

94.6

94.6

94.6

94.6

97.3

97.3

100.0

B18

AEON TOWN Sukagawa

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

C1

Stop Parking Kanda-Sudacho

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

C21

Bon Sejour Chitose Funabashi

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

C22

Bon Sejour Yotsugi

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

C23

Bon Sejour Hino

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

C24

Bon Sejour Musashi Shinjo

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

C25

Bon Sejour Komaki

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

C26

Bon Sejour Hadano Shibusawa

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

C27

Bon Sejour Itami

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

91.1

91.2

95.0

95.1

96.2

95.5

95.6

96.6

96.1

95.8

95.9

Total

(Note) “Occupancy Rate” is computed by dividing the leased area by leasable area, and rounded to the second digit.

―47―

【Distribution Policy】
INV conforms to the policies set out below with regards to cash distributions to unitholders or registered pledgees ofinvestment units listed or recorded in the registry of unitholders at the end of each fiscal period.
(1)

Distribution of Profits

Distributable amounts generated from the management of INV's assets (hereinafter "distributable amounts") refers to theamount of profits calculated in conformity with the provisions of the Law Concerning Investment Trusts and Investment
Corporations (hereinafter "the Law") or generally accepted accounting principles in Japan (net assets in the balance sheet asof the closing date of each fiscal period less unitholders' capital, retained earnings, and evaluation, currency translation, etc.)(Article 17, Item 1 of the Articles of Incorporation of INV).
INV determines the amount of distribution, which must be an amount that exceeds 90% of the amount of INV's
distributable income as stipulated in Article 67, Item 15 (the Special Provisions of Taxation for Investment Corporations) of
the Act on Special Measures Concerning Taxation in principle (hereinafter "distributable income") (or the relevant amountafter modification if there is any modification to the calculation of the said amount due to revisions to the law, etc.) (However,
the amount may not exceed the distributable amount.). If, however, a deficiency account for tax purposes arises or income fortax purposes does not arise due to the carried-over deduction of a deficiency account, INV shall determine the amount of
distribution on a rational basis. In addition, INV can accumulate reserves and allowances from the distributable income
amount that are deemed to be necessary for maintaining its investment assets and improving or increasing the value of assets
such as long-term reserve for maintenance, payment reserve, reserve for distribution, and other similar reserves, etc. (Article
17, Item 2 of the Articles of Incorporation of INV).
Any retained earnings not allocated for dividends will be managed based on INV's investment asset targets and policies(Article 17, Item 3 of the Articles of Incorporation of INV).
(2)

Cash Distribution Exceeding Profits

In cases when the distributable amount is less than 90% of distributable income, or when INV considers it appropriate
depending on the economic circumstances and the trends in the real estate market, the leasing market, etc., INV may, in
accordance with the provisions under the Law, determine an additional amount to be distributed to the unitholders in cash as arefund of the investment over and above the distributable amount, with the upper limit of the additional amount beingprescribed in rules of the Investment Trusts Association, Japan, based on the approved cash distribution statement inaccordance with the Law . In this case, if such cash distributions do not satisfy the requirements for Special Provisions of
Taxation for Investment Corporations, INV may distribute monies in an amount determined by INV for the purpose ofsatisfying those conditions (Article 17, Item 4 of the Articles of Incorporation of INV).
(3)

Methods of Distribution

Distributions shall be paid in cash and based on the number of investment units held to unitholders who are listed orrecorded in the registry of unitholders on the closing date of each fiscal period, or to registered pledgees of investment units(Article 17, Item 5 of the Articles of Incorporation of INV).
(4)

Statutory Limitation for Dividends

INV will be exempted from its obligation to pay distributions to unitholders or registered pledgees of investment units aftera lapse of three years from the commencement date of payment. No interest will accrue with respect to unpaid distributions(Article 17, Item 6 of the Articles of Incorporation of INV).
In addition to (1) through (4) above, INV shall comply with the rules of The Investment Trusts Association, Japan, etc. in
cash distributions.

―48―