Invincible

Investment
Corporation

This is a summary English language version of the original Japanese semi-annual report available on our
Website. However, no assurance or warranties are given with respect to the accuracy or completeness of thissummary English language version. The Japanese original shall prevail in the case of any discrepancies
between this summary English language version and the Japanese original.

Invincible Investment Corporation
Asset Management Report
Fiscal Period ended June 30, 2013 (January 1, 2013 to June 30, 2013)

Contents
Greetings from Naoki Fukuda, Executive Director of Invincible Investment
Corporation and President & CEO of Consonant Investment Management Co., Ltd.
Summary of Financial Results
20th Fiscal Period Results (Fiscal Period ended June 2013)
Portfolio Overview
Introduction of New Executive Members
Asset Management Report
I.

1
3
4
11
13
14

II.
III.
IV.

Balance Sheet
Statement of Income

3234Statement of Unitholders’ Equity

35

V.

Notes

VI.

Statement of Cash Distribution

36
48

VII.

Statement of Cash Flows (Reference Information)

49

Roppongi Hills Mori Tower 6-10-1 Roppongi Minato-ku Tokyo, 106-6190
www.invincible-inv.co.jp/

Invincible

Investment
Corporation

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

It gives me much pleasure to take this opportunity to express my sincere gratitude to all investorsof Invincible Investment Corporation (INV) for your ongoing support.
My name is Naoki Fukuda, and I have recently been appointed to serve as Executive Officer of
INV. I look forward to this opportunity to fully utilize the work experience I have gained in both
the real estate and financial industries in Japan and overseas, and to dedicating myself to INV’s
optimal management.
Since the merger in February 2010 and the sponsorship from July 2011 by Calliope Godo Kaisha,an affiliate company of Fortress Investment Group LLC (together with other related companies,
the “Fortress Group”) (Note), we have been able to achieve a financial restructuring and an
improvement and strengthening of our earnings potential. We are now at a crucial point inmaking a leap to a new stage in our development.
INV has a highly stable portfolio with a careful balance among asset types and geographic areas.
I believe we are greatly advantaged in being able to fully utilize not only the the property
management, planning and financial management ability of Consonant Investment Management
Co., Ltd., the Asset Manager, but also the expertize of the Fortress Group, one of the world’s
leading alternative investment companies, in the real estate and financial business. Under the
new management structure, we will seek operations that maximize these advantages andcontribute to further growth for INV and further enhancement of unitholders’ value.
We hereby provide you with a report of the results of INV’s financial results and operational
condition for the 20st period (covering the period from January 1, 2013 to June 30, 2013).
During the 20th period, due in part to the full fiscal period contribution of the 24 residential
properties acquired during the previous fiscal period, operating revenues were JPY 2,760 million,
up JPY 283 million from the previous period, operating income was JPY 1,231 million, up JPY
147 million, and ordinary income and net income both increased significantly by JPY 220
million to reach JPY 335 million. In addition, making use of a portion (JPY 20 million) of thesurplus of the negative goodwill attributable to the February 2010 merger, we were able to set
the distribution per unit for the 20th at JPY 264, the highest post-merger level.
Going forward, we will continue to focus on internal growth, including maintaining andincreasing occupancy rates and rent levels and maximizing net operating income (NOI) from ourproperties. In addition, in order to prepare for future refinancings of our borrowings, we will seek
to increase the value of our assets, while strengthening our existing relationships with lenders
and forging new relationships with other lenders.
1Invincible

Investment
Corporation

We look forward to receiving the continued support of all of our unitholders.

Naoki Fukuda
Executive Officer
Invincible Investment Corporation
President and Representative Director
Consonant Investment Management Co., Ltd.

(Note) In July 2011, Calliope Godo Kaisha acquired 97.35% (note 3) of the outstanding shares of Consonant
Investment Management Co, Ltd., and the Investment Corporation conducted a capital increase via third-party
allotment with Callope Godo Kaisha as the principal investor.

Fixed Distributions

The 20th fiscal period(the fiscal period ended June 2013)

Forecast Distributions

The 21st fiscal period(the fiscal period ending December
2013)

Per investment unit
JPY 264
Per investment unit
JPY 200(Note) We are forecasting operating revenues of JPY 2,740 million and net income of JPY 270 million for the 21stfiscal period.

2

Invincible

Investment
Corporation

Summary of Financial Results

Operating Revenue (Thousands of yen)
Ordinary Income(Thousands of yen)
Net Income(Thousands of yen)
Net Assets(Thousands of yen)
Total Assets(Thousands of yen)
Net Assets per Unit
(Thousands of yen)
Net Assets/Total Assets (Thousands of yen)
Distribution per Unit
(Thousands of yen)
Number of Units Issued(Units)Period from
July 1, 2011 to
December 31,
2011

Period fromJanuary 1, 2012
to June 30,
2012

Period from
July 1, 2012
to December 31,
2012

Period fromJanuary 1, 2013
to June 30,
2013

2,202,448

2,176,839

2,476,430

2,760,117(3,466,417)

125,981

114,784

335,683(2,476,155)

128,175

114,179

335,078

32,967,658

32,826,175

32,670,697

32,848,025

68,083,586

67,698,887

80,200,022

80,249,063

24,451

24,34624,231

24,363

48.4

48.5

40.7

40.9

200

200

117

264

1,348,292

1,348,292

1,348,292

1,348,292

Note: Figures are rounded down to the indicated unit and percentages are rounded to one decimal place. However, “Net Assets per Unit” are rounded
to the nearest yen.

Operating Revenue
2,760,177 thousand yen

Operating Income
335,078 thousand yen

Distribution per Unit
264 yenUp 283,747 thousand yen fromprevious period (11.55% increase)(Note)Up 220,898 thosand yen fromprevious period (193.5% increase)Up 147 yen from previous period(125.6% increase)2,202,448
2,476,430
2,125,544 2,176,839

2,760,177

07/01/11
to12/31/11
07/01/11 01/01/12 07/01/12
tototo
12/31/11 06/30/12 12/31/12

01/01/13
to
06/30/13(Note)

335,078

128,175

114,179

01/01/12
to
06/30/12

07/01/12 01/01/13
toto
12/31/12 06/30/13

200

200

07/01/11 01/01/12
toto
12/31/11 06/30/12

264
117
07/01/12 01/01/13
toto
12/31/12 06/30/13(2,476,155)
Unit: Thousand yen

Unit: Thousand yen

Unit: yen

Note: The figure in vertical axis □ of the "Operating Revenue" bar chart (07/01/11 to 12/31/11) excludes the effect of New Edobashi Building
which was sold as of October 21, 2011. Figures are rounded down to the indicated unit and percentages are rounded to one decimal
place.

3

Invincible

Investment
Corporation

4

Invincible

Investment
Corporation

5

Invincible

Investment
Corporation

6

Invincible

Investment
Corporation

7

Invincible

Investment
Corporation

8

Invincible

Investment
Corporation

9

Invincible

Investment
Corporation

10

Invincible

Investment
Corporation

Portfolio Overview(as of June 30, 2013)
用途

Property Number

RentableUnits

1,771.13

98

2,681.94

60

1,051.50

48

1,367.96

66

2,152.31

96

1,748.24

65

Suncrest Shakujii-Koen

Nerima Ward, Tokyo

3,029.16

29

Growth Maison ShinYokohama
Belle Face UenoOkachimachi

Yokohama City, Kanagawa 1,858.44
Prefecture
1,351.11
Taito Ward, Tokyo

68

A35

Grand Rire Kameido

Koto Ward, Tokyo

1,562.26

72

A36

Growth Maison Ikebukuro

Toshima Ward, Tokyo

952.8942

1,015.34

39

1,368.57

24

1,167.50

25

1,235.93

19

1,210.74

57

1,126.65

26

1,047.75

62

Residential

Leasable Area
(m2)

A26
A27

Name of Property

Location

Nisshin Palacestage
Suginami Ward, Tokyo
Daitabashi
Nisshin Palacestage HigashiToshima Ward, Tokyo
Nagasaki

A28

Growth Maison Gotanda

Shinagawa Ward, Tokyo

A29

Growth Maison Kameido

Koto Ward, Tokyo

A30

Emerald House

Itabashi Ward, Tokyo

A31

Harmonie Ochanomizu

Bunkyo Ward, Tokyo

A32
A33
A34

A37

Growth Maison Yoga

Setagaya Ward, Tokyo

A38

Route Tachikawa

Tachikawa City, Tokyo

A39

Shibuya-Honmachi Mansion Shibuya Ward, Tokyo

A40

City Heights Kinuta

A41

Acseeds Tower Kawaguchi- Kawaguchi City, Saitama
NamikiPrefecture

A42

Setagaya Ward, Tokyo

Capital Heights Kagurazaka Shinjuku Ward, Tokyo

A43

College Square Machida

Machida City, Tokyo

A44

Belair Meguro

Meguro Ward, Tokyo

A45

Wacore Tsunashima I

A46

Foros Nakamurabashi

A47

Growth Maison Kaijin

557.0525

Yokohama City, Kanagawa 908.99
Prefecture815.77
Nerima Ward, Tokyo

50

Funabashi City, Chiba
Prefecture

2,040.27

34

871.3543

3,364.00

86

4,032.70

118

4,310.77

69

1,987.88

88

1,197.19

17

1,627.13

58

1,220.24

70

1,969.45

29

3,426.36

154

1,929.59

51

1,528.58

39

705.758

1,430.64

43

784.7433

4,460.56

120

7,794.91

109

3,574.70

52

2,773.71

81

2,310.49

82

A48

College Square Machiya

A51

City House Tokyo Shinbashi Minato Ward, Tokyo

A52
A53
A54

Winbell Kagurazaka
Nishiwaseda Cresent
MansionLexington Square
Akebonobashi

Arakawa Ward, Tokyo

Shinjuku Ward, Tokyo
Shinjuku Ward, Tokyo
Shinjuku Ward, Tokyo

A56

Casa Eremitaggio

A59

Towa City Coop Shinotsuka
Toshima Ward, Tokyo
II

Meguro Ward, Tokyo

A61

Bichsel Musashiseki

Nerima Ward, Tokyo

A62

Lexel Mansion Ueno
Matsugaya

Taito Ward, Tokyo

A63
A64
A65
A66

Yokohama City, Kanagawa
Towa City Coop Sengencho
Prefecture
Sendai City, Miyagi
Royal Park Omachi
Prefecture
Lexington Square
Sendai City, Miyagi
Haginomachi
Prefecture
Nagoya City, Aichi
Visconti Kakuozan
Prefecture

A71

Lexington Square Daitabashi Suginami Ward, Tokyo

A72

Lexington Square Honjo
Azumabashi

Sumida Ward, TokyoA73

AMS TOWER Minami 6-Jo Sapporo City, Hokkaido

A75

Spacia Ebisu

Shibuya Ward, TokyoA76

Neo Prominence

A77

Invoice Shin-Kobe Residence Kobe City, Hyogo Prefecture

A78
A79

64

Kita Ward, Tokyo

Cosmo Court Motomachi

Kobe City, Hyogo Prefecture

Revest Honjin

Nagoya City, Aichi
Prefecture

1,933.80

3780

Acquisition Appraisal
Price
Value
(JPY mn) (JPY mn)
1,120
1,251
1,229
888
1,070
1,505
1,428
1,088
1,059
1,023
906
825
795
676
651
646
620
604
589
589
572
566
557
510
2,520
3,260
1,880
1,450
1,070
866
577
970
1,110
415
330
255
977
511
1,180
7,010
1,660
1,260
973
674

Book Value(JPY mn)

Investment Occupancy
Ratio
Rate

1,153

1.6

98.0

1,220

1,100

1.6

98.4

916

855

1.2

100.0

1,040

1,024

1.4

94.0

1,170

1,436

2.0

100.0

1,210

1,391

1.9

88.2

997

1,051

1.4

95.6

1,040

1,006

1.4

97.1

918

993

1.3

100.0

895

866

1.2

100.0

798

787

1.1

88.2

669

771

1.0

97.3

584

655

0.9

76.7

579

657

0.8

80.8

448

648

0.8

94.6

666

581

0.8

93.0

528

619

0.8

97.2

519

575

0.8

100.0

529

576

0.8

96.0

491

554

0.7

90.0

526

538

0.7

92.0

451

527

0.7

94.4

487

484

0.7

100.0

2,610

2,431

3.3

100.0

3,400

3,156

4.2

96.9

2,010

1,852

2.4

98.5

1,550

1,393

1.9

94.4

996

1,014

1.4

90.0

930

837

1.1

94.9

595

563

0.7

95.7

1,050

915

1.3

86.8

1,210

1,058

1.4

94.9

450

398

0.5

100.0

391

313

0.4

100.0

226

243

0.3

100.0

995

922

1.3

95.1

516

477

0.7

93.9

1,050

1,084

1.5

88.2

6,810

6,765

9.1

90.2

1,680

1,668

2.2

96.6

1,280

1,273

1.6

98.6

1,000

986

1.3

92.7

697

684

0.9

98.8

11

Invincible

Investment
Corporation(as of June 30, 2013)
Property Number

Name of Property

Residential

Location

Leasable Area(m2)

RentableUnits1,955.40

70

898.70

A80

Revest Matsubara

Nagoya City, Aichi
Prefecture

A81

Sun Terrace Minami Ikebukuro

Toshima Ward, Tokyo

A82

Alba Noritake Shinmachi

A83

Revest Meieki Minami

A84

Revest Heian

Nagoya City, Aichi
Prefecture
Nagoya City, Aichi
Prefecture
Nagoya City, Aichi
Prefecture

A85

Vendir Hamaotsu Ekimae

Otsu City, Shiga Prefecture

A86

Salvo Sala

Osaka City, Osaka
Prefecutre

A87

Excellente Kagurazaka

Shinjuku Ward,Tokyo

A88

Luna Court Edobori

A89

Winntage Kobe Motomachi

Osaka City, Osaka
Prefecture
Kobe City, Hyogo
Prefecture

A90

Queen's Court Fukuzumi

Koto Ward, Tokyo

A91

Corp Higashinotoin

Kyoto City, Kyoto
Prefecture

A92

Belair Oimachi

A93

Siete Minami-Tsukaguchi

A94
A95
A96
A97

Shinagawa Ward, Tokyo

Amagasaki City, Hyogo
Prefecture
Kobe City, Hyogo
Prime Life Sannomiya Isogami Koen
Prefecture
Osaka City, Osaka
HERMITAGE NANBA WEST
Prefecture
Nagoya City, Aichi
Century Park Shinkawa 1-bankan
PrefectureWest Avenue

A98

Little River Honmachibashi

A99

Prime Life Mikage

Subtotal

Book Value Investment Occupancy
Rate
Ratio
(JPY mn)

657

684

666

0.9

95.7

38

625

631

629

0.8

97.4

1,731.68

64

608

626

618

0.8

93.8

1,634.60

61

597

609

607

0.8

100.0

1,554.03

40

595

605

604

0.8

100.0

2,670.66

81

581

645

590

0.8

95.4

1,428.12

54

544

557

553

0.7

98.0

701.92

33

543

552

550

0.7

97.1

1,185.50

50

525

538

532

0.7

98.0

1,433.35

57

512

537

520

0.7

94.9

765.18

25

456

468

460

0.6

100.0

1,029.05

42

446

457

451

0.6

530.60

26

412

420

416

0.5

1,020.86

40

374

388

380

0.5

789.12

32

373

375

378

0.5

992.76

21

355

366

361

0.5

1,477.62

44

335

337

340

0.4

331

330

333

0.4

310

321

315

0.4

297

300

301

0.4

794.8040

Okasa City, Osaka
Prefecture
Kobe City, Hyogo
Prefecture

974.81

31

761.1828

Kunitachi City, Tokyo

Acquisition Appraisal
Value
Price
(JPY mn) (JPY mn)

97.7
100.0
100.0
100.0
86.9
90.9
82.5
93.8
100.0

3,413

58,08356,99356,52075.3

95.0

Kindai Kagakusha Building

Shinjuku Ward, Tokyo

1,451.54

13

1,301

1,010

1,226

1.7

100.0

B9

Shinjuku Island

Shinjuku Ward, Tokyo

526.43

1

715

531

715

0.9

100.0

B14

Lexington Plaza Nishigotanda

Shinagawa Ward, Tokyo

6,033.58

11

4,880

4,070

4,820

6.3

90.1

B15

Cross Square NAKANO

Nakano Ward, Tokyo

2,145.00

45

1,060

938

1,046

1.4

57.6

B16

Ohki Aoba Building

13

816

602

758

1.1

100.0

B17

Lexington Plaza Hachiman

18

3,280

3,210

3,202

4.3

100.0

B18

AEON TOWN Sukagawa

Sendai City, Miyagi
2,178.41
Prefecture
Sendai City, Miyagi
8,419.15
Prefecture
Sukagawa City, Fukushima 18,440.58
Prefecture
39,194.69

1

2,320

2,150

2,150

3.0

100.0

102

14,372

12,511

13,920

18.6

96.2

81.04

1

97

92

100

0.1

100.0

Office Buildings/Retail Facilities

109,585.98

B8

Subtotal
Stop Parking Kanda-Sudacho

C21

Bon Sejour Chitose Funabashi

Kanda sudacho, Chiyodaku, Tokyo
Setagaya Ward, Tokyo

2,342.17

42

685

747

662

0.9

100.0

C22

Bon Sejour Yotsugi

Katsushika Ward, Tokyo

1,962.87

62

652

692

628

0.8

100.0

C23

Bon Sejour Hino

Hino City, Tokyo

1,984.17

56

574

651

555

0.7

100.0

C24

Bon Sejour Musashi Shinjo

46

486

552

471

0.6

100.0

Bon Sejour Komaki

8,858.49

123

1,050

1,060

996

1.4

100.0

C26

Bon Sejour Hadano Shibusawa

3,435.79

100

681

616

641

0.9

100.0

C27

Bon Sejour Itami

Kawasaki City, Kanagawa
Prefecture
Komaki City, Aichi
Prefecture
Hadano City, Kanagawa
Prefecture
Itami City, Hyogo
Prefecture

1,710.43

C25

2,129.87

62

480

433

455

0.6

100.0

22,504.83

492

4,705

4,843

4,513

6.1

100.0

171.285.50

4,007

77,161

74,347

74,954

100.0

95.9

Parking Lots/Seniors

C1

Subtotal
Total(Note): Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

12

Invincible

Introduction of New Executive Members

Investment
Corporation

During Fiscal Period June 2013, the was a change of of directors of Consonant Investment Management Co., Ltd.
On May 31, 2013, the previous President and CEO Naoki Shibatsuji resigned and Naoki Fukuda was appointed as
President and CEO.
Furthermore, as of June 28, 2013 Naoki Fukuda was appointed Executive Director of Invincible Investment
Corporation.
Position

Name

Brief personal history
Apr. 1985

Executive
Director of
Invincible
Investment
Corporation.
President andCEO ofConsonantInvestment
Management,
Co., Ltd.

Director andCompliance
Officer ofConsonantInvestment
Management
Co., Ltd.

Director(part-time) of
ConsonantInvestment
Management
Co., Ltd.

Apr. 2004
Apr. 2006

Apr. 2011

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. 2008
Naoki Fukuda

May 2013

Seconded to Calliope Godo Kaisha

May 2013
Jun. 2013

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

Apr. 1975

Joined the Industrial Bank of Japan, Limited (current: Mizuho Bank, Ltd.)

Sep. 1997
Apr. 1998

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 Auditor

Jun. 2013
Jan. 2001

Director and Compliance Officer of Consonant Investment Management Co.,
Ltd. (current position)
Joined Prospect Asset Management, Inc.

Mar. 2011

Seconded to PROSPECT Corporation Ltd. as a Director

Oct. 1999
NoburuYokoyama

Christopher
Reed

Joined Dai-ichi Mutual Life Insurance Company (current: The Dai-ichi Life
Insurance Company, Limited)
Deputy General Manager, Real Estate Department, Real Estate Planning andAccounting Group of the same
Seconded to Dai-ichi Life International (U.S.A.), Inc. as President

Oct. 2005

Research Director of the same

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)

The executive team of Invincible Investment Corporation is provided in the following table.

13

Invincible

Investment
Corporation

Ⅰ. Asset Management Report
Overview of Asset Management
1 Trends in Investment Corporation’s Operating Results

Operating revenues

Note 1 (Thousands of yen)

16th
Fiscal Period
Jan. 1, 2011 toJun. 30, 2011
2,277,374(Rental revenues)(Thousands of yen)

2,277,374

2,202,448

2,176,839

2,476,430

2,760,177

Operating expenses(Thousands of yen)

1,477,031

2,612,417

1,282,766

1,392,258

1,528,940(Thousands of yen)

1,151,606

1,137,994

1,024,277

1,156,672

1,295,403

Operating income(Thousands of yen)

800,343(409,968)

894,072

1,084,171

1,231,237

Ordinary income(Thousands of yen)

(52,342)(3,466,417)

125,981

114,784

335,683(Thousands of yen)

(1,308,522)(2,476,155)

128,175

114,179

335,078

Total assets(change from last period)
Interest-bearing debt(a) (Thousands of yen)(%)

73,165,258(3.6)
42,596,425

68,083,586(6.9)
31,734,500

67,698,887(0.6)
31,603,500

80,200,022
18.5
43,982,500

80,249,063
0.1
43,851,500

Net assets(change from last period)
Total contribution(b) (Thousands of yen)(%)(Thousands of yen)

28,571,173(5.3)
19,134,417

32,967,658
15.4
26,134,396

32,826,175(0.4)
26,134,396

32,670,697(0.5)
26,134,396

32,848,025
0.5
26,134,396(c) (Thousands of yen)

127,339

269,658

269,658

157,750

355,949(Note 2) (Thousands of yen)

—

—

210.5

137.6

106.0

By Period
Calculated period

Operating Results(Property-related expenses)

Net income
Asset Condition
DivideTotal distribution
Dividend payout ratio(Thousands of yen)

18th
Fiscal Period
Jan. 1, 2012 toJun. 30, 2012
2,176,839

19th
Fiscal Period
Jul. 1, 2012 toDec. 31, 2012
2,476,430

20thFiscal Period
Jan. 1, 2013 toJun. 30, 2013
2,760,177

Information per

Financial

1,348,292

1,348,292

1,348,292

1,348,292(b) / (d) (yen)(Note 3)44,87424,451

24,34624,231

24,363Distribution per unit
(Profit distribution per unit)(Excess profit distribution per unit)(c) / (d) (yen)
(yen)
(yen)

200
200
—

200
200
—

200
200
—

117
117
—

264
264
—

Return on assets(change over year)
Return on equity(change over year)
Capital ratio(change from last period)
NOI(Net Operating Income)(Note 4) (%)

(0.1)
(0.1)
(4.5)
(9.0)
39.1
(0.7)
1,554,015

(4.9)
(9.7)
(8.0)
(16.0)
48.4
9.4
1,486,538

0.2
0.4
0.4
0.8
48.5
0.1
1,564,247

0.2
0.3
0.3
0.7
40.7
(7.8)
1,800,380

0.4
0.8
1.0
2.1
40.9
0.2
2,008,413

Number of investment units
Issued and outstanding
Net assets per unit

(Note1)(Note 2)
(Note 3)(Note 4)(d) (Units)(Note 4) (%)(b) / (a) (%)(Note 4) (%)(Note 4) (Thousands of yen)

636,695

17th
Fiscal Period
Jul. 1, 2011 to
Dec. 31, 2011
2,202,448

Consumption taxes etc. are not included in operating income.
Dividend payout ratio is calculated by dividing profit distribution by unit by net income that period. However, for the 20th Fiscal Period, it is calculatedby dividing the total profit distribution amount by net income. Dividend payout ratio for the 16th and 17th Fiscal Period is not indicated because distribution
by unit that period was a negative figure.
Distribution by unit is rounded to the nearest unit.
Published benchmarks are calculated as below, and ratios are rounded to one decimal place.
Return on Assets = Ordinary Income / (Total Assets at Start of Reporting Period + Total Assets at End of Reporting Period) / 2 x 100
Return on Equity = Net Income this period / (Net Assets at Start of Reporting Period + Net Assets at End of Reporting Period) / 2 x 100
Capital Ratio = Net Assets at End of Reporting Period /Total Assets at End of Reporting Period x 100
Rental NOI = Rental Revenues – Leasing Costs + Fiscal Period Depreciation Expenses

14

2

Operating Conditionsa.

Main trends in the Investment Corporation

Invincible

Investment
Corporation

The investment corporation (the “Investment Corporation” or “INV”) was established in January 2002 basedon the Investment 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 (“theMerger”) with LCP Investment Corporation (“LCP”) on February 1, 2010, the Investment Corporation issued newinvestment 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 conducteda refinancing.
Ever since the sponsorship from Fortress, the Investment Corporation has been dedicating itself to theimprovement of occupancy rates and the reduction of its and its properties’ expenditures by strengthening its asset
management, planning and financial management capabilities. Furthermore, in September 2012, it newly acquired 24
properties (trust beneficiary interest 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 fromthe new property acquisitions described above and the expansion of revenue from the operation of properties, theInvestment Corporation believes that a stable revenue base has been established.
b.

Operational Environment and 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 in long-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 isreflected in the Bank of Japan’s “Tankan” (survey of June, 2013) in which, among other things, the businessconditions 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-manufacturing sector 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 byforeign companies, and the market condition is becoming more active.
On the other hand, regarding the real estate rental market, although demand continues to be strong andoccupancy 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 interms 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 incentral Tokyo. Regarding the office sector, we see an improvement in the vacancy rate of high-end properties incentral Tokyo, and a tendency towards improvement of rent levels in newly constructed large buildings, and as theoverall economic situation has turned favorable, there are signs that certain businesses with strong operations results
are increasing floor use and expanding.

15

Invincible

Investment
Corporation

In such an environment, in the reporting period the Investment Corporation did not engage in any acquisitions
or sales of 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 theprevious 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 original-state-restoration period management, have made it possible to raise the average occupancy rate up to
95.6% (as compared to 95.2% 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 totalacquisition value of JPY 77,161 million and with total rentable floor space of 171.285.50 square meters.
c.

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 perquarter).
(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

16

Invincible

Investment
Corporation

3 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 ofestablishment to the end of the reported fiscal period are as follow.
Number of investment units issued
and outstanding (units)

Unitholders’ equity (yen)Increase

Total

Increase

Total

400

200,000,000

200,000,000

Date

Type of issue

January 18, 2002

Private placement for400
incorporation

Reference(Note 1)

December 26, 2003

Private placement

2,700

3,100

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, 2004

Private placement

1,333

5,783

499,875,000

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

Private placement

267

6,050

100,125,000

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

Private placement

800

6,850

300,000,000

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

Private placement

266

7,116

99,750,000

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

Private placement

800

7,916

300,000,000

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

Private placement

1,333

9,249

499,875,000

3,518,375,000(Note 2)

May 17, 2004

Public offering

9,000

18,2493,377,250,000

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

Public offering

10,65028,8993,937,667,100

10,833,292,100(Note 4)

July 31, 2006

Public offering

25,00053,8998,301,125,000

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

Unit split

215,596

269,495―

19,134,417,100(Note 6)

February 1, 2010

Merger367,200

636,695―

19,134,417,100(Note 7)

July 29, 2011

Third-party allotment 711,597

1,348,292

6,999,979,689

26,134,396,789(Note 8)(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)The Investment Corporation was incorporated through a private placement at a price of 500,000 yen per unit.
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.
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) to raise funds for the acquisition of new properties.
New investment units were issued in a public offering at a price of 385,140 yen per unit (369,734 yen after deducting theunderwriters’ discount) to raise funds for the acquisition of new properties.
New investment units were issued in a public offering at a price of 348,740 yen per unit (332,045 yen after deducting theunderwriters’ discount) to raise funds for the acquisition of new properties.
An investment unit slit of 5 units per 1 unit was conducted.
A merger by absorption pursuant to Article 147 of the Act on Investment Trusts and Investment Corporations was conducted with
LCP, with the Investment Corporation as the surviving entity. As a result of the merger by absorption, 4 investment units of theInvestment 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 the merger by absorption was 91,800 units.
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.

Trends in Trading Prices of Investment Securities
The highest and lowest prices (trading prices) in the Real Estate Investment and Trust Securities Section of the Tokyo
Securities Exchange on which the investment securities of the Investment Corporation are listed are as follow.
Real Estate Investment and Trust Securities Section, Tokyo Securities Exchange(Unit: yen)
Period16th Fiscal Period

17th Fiscal Period

18th Fiscal Period

19th Fiscal Period

20th Fiscal Period

Closing Month

June 2011

December 2011

June 2012

December 2012

June 2013

Highest13,28012,830

7,160

6,540

14,480Lowerst

9,380

6,200

6,060

6,080

6,230

17

Invincible
4

Investment
Corporation

Distribution Performance

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 thenegative 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 toestablish a distribution level that would satisfy the requirements for distribution payment. Accordingly, withrespect 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) + the sum 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)
PeriodCalculated Period
Total unappropriated retained earnings
for period (thousands of yen)
Reserved profit (thousands of yen)
Cash distribution (thousands of yen)(Distribution per unit) (yen)Distribution amount (thousands of yen)(Distribution per unit) (yen)Contribution return (thousands of yen)(Contribution return per unit ) (yen)16th Fiscal
PeriodJan. 1, 2011 toJun. 30, 2011
3,172,324

17th Fiscal
PeriodJul. 1, 2011 to
Dec. 31, 2011
568,830

18th Fiscal
PeriodJan. 1, 2012 toJun. 30, 2012
427,346

19th Fiscal
PeriodJul. 1, 2012 toDec. 31, 2012
271,868

20th Fiscal
PeriodJan. 1, 2013 toJun. 30, 2013
449,1963,044,985
127,339(200)
127,339
(200)
−
(−)

299,171
269,658(200)
269,658
(200)
−
(−)

157,688269,658(200)
269,658
(200)
−
(−)

114,118
157,750(117)
157,750
(117)
−
(−)

93,247355,949(264)
355,949
(264)
−
(−)

18

5

Future Operational Policy and Issues to be Addressed

Invincible

Investment
Corporation

Forecast for Next Period 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 stableearnings in the medium to long term. Acquisitions of properties with a wide variety of uses, including residential
properties, office buildings, retail facilities, hotels, senior facilities, parking facilities, etc. will be considered inlight 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 AssetManager”), 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 inconsideration of factors such as the portfolio composition, geographic diversification, medium to long term
earnings potential, changes in the market competitiveness, and additional investments for maintaining
competitiveness and profitability. In addition, with respect 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 view of securing stable cash flows. Through leasing strategy meetings that are held every week andotherwise as appropriate, the Investment Corporation considers concrete measures for strengthening sales byutilizing 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 theexit of a tenant in order to quickly lease a unit to a new tenant, and to manage the timely implementation of suchmeasures. For the next fiscal period and beyond, the Investment Corporation will continue to prepare leasing
strategies that take into consideration the market and competing properties, and take thorough and flexible
measures.
Regarding management of PM companies, the Investment Corporation will continue endeavors tomaintain and improve management quality and achieve further profitability through daily supervision anddirections, regular reviews of management capacity, the selection of PM companies that appropriately match each
property’s unique characteristics, and so 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 tenantsatisfaction and trust, the Investment 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, theInvestment Corporation will prepare and implement plans that include tie-ups with specialized companies.

19

Invincible

Investment
Corporation

Through adequate implementation of these objectives, the Investment Corporation will seek as its longterm 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 theInvestment 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 fromfinancial institutions and raising equity for the purpose of repaying existing borrowings and acquiring newproperties, the Investment Corporation will carefully consider the tends in the capital and financial markets anddecide upon the appropriate way of raising funds accordingly.
In addition to continuing to maintain relationships that have been developed with existing lenders, theInvestment Corporation will consider opportunities for improving unitholders’ value by diligently consideringfund-raising not only from existing lenders but from other lenders, including not only domestic but overseas
lenders, as well a different fund-raising techniques. In addition, by utilizing the relationship with Fortress, efforts
will be made to gather information from a 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 theacquisition of properties.
(iv) Compliance risk management
While the executive officer of the Investment Corporation concurrently serves as the representative
director at the Asset Manager, two supervisory directors (an attorney and a certified public account) oversee theexecution 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 other relevant matters as well as overall management of transactions with sponsor related parties. Moreover,it has in place a compliance committee which, chaired by such compliance officer, is in charge of deliberating on
fundamental items related to compliance with laws, regulations and other relevant matters as transactions withsponsor related parties.
Compliance committee meetings are attended by an outside expert (an attorney) who, sitting in as acompliance committee member, contributes to the Asset Manager’s compliance by ensuring the compliance ofrelated party transactions from the standpoint of such expert’s expertise and experience and promoting restraint indecision-making as a third party.
The Investment Corporation will take steps to further strengthen its compliance structure to contribute to
the transparency and health of its operations.
6

Significant subsequent events
Nothing applicable.
20

Invincible

Overview of the Investment Corporation
1

Investment
Corporation

Overview of Investment

By Period

16th Fiscal Period 17th Fiscal Period 18th Fiscal Period 19th Fiscal Period 20th Fiscal Period

Results Dates

Jan. 1, 2011 toJun. 30, 2011

Jul. 1, 2011 to
Dec. 31, 2011

Jan 1, 2012 toJun. 30, 2012

Jul. 1, 2012 toDec. 31, 2012

Jan. 1, 2013 toJun. 30, 2013

Number of investment units authorized
Number of investment units issued andUnitholders’ capital
Number of total unitholders

10,000,000
636,695
19,134
11,151

10,000,000
1,348,292
26,134
10,793

10,000,000
1,348,292
26,134
10,703

10,000,000
1,348,292
26,134
10,325

10,000,000
1,348,292
26,134
10,0932

Notes regarding Unitholders

Major unitholders at the end of the reporting period are as below.
Name

Number of units held

Calliope Godo Kaisha
New Mission Funding Co., Ltd
JP MORGAN CHASE BANK 380180
GOLDMAN SACHS INTERNTATIONAL
Japan Trustee Services Bank, Ltd. (trust account)
INFINITE VALUE INVESTMENT LTD.
The Nomura Trust and Banking Co., Ltd. (investment trust account)
Trust & Custody Services Bank, Ltd. (securities investment account)
The Master Trust Bank of Japan, Ltd. (trust account)kabu.com Securities Co., Ltd.
Total

609,942
129,400
98,125
67,12655,96452,44841,267
23,76021,977
8,036
1,108,045% of total number ofinvestment units issued
and outstanding
45.23
9.59
7.27
4.97
4.15
3.88
3.06
1.76
1.62
0.59
82.18

(Note): Percentages are rounded down to two decimal places

3

Notes regarding Directors

Directors at the end of the reporting period are as below.
Position

Name

Executive Naoki Fukuda
Director
Supervisory Takashi Takahashi
Director
Hiroyuki Fujimoto
AuditorErnst & Young
ShinNihon LLC

Primary Responsibilities
President and CEO, Chief Planning and Financial Officer,
Consonant Investment Management Co. Ltd. (Note 1)
Attorney, Ocean General Law Office
Tax accountant, CPA Fujimoto Office--Directors’ remuneration for
operating period (thousands of yen)
-2,4002,400
7,300(Note 1) As of June 28, 2013, Naoki Shibatsuji resigned as executive director, and Naoki Fukuda was elected as executive director.
Naoki Shibatsuji's director remuneration amount during the attributable period in which he was in office is JPY 0. Furthermore,
as of May 31, 2013, Naoki Shibatsuji resigned as President and CEO, Chief Planning and Financial Officer of Consonant
Investment Management Co. Ltd. and Naoki Fukuda was elected for this position on the same day.
(Note 2) Executive and supervisory directors do not hold the Investment Corporation’s units either in their names or in thenames of third parties. In addition, while they may be directors of organizations not listsed above, thoseorganizations as well as those listed above have no conflicts of interest with the Investment Corporation.
(Note 3) The auditing agreement with the auditor is renewed every accounting period. Dismissals are made in accordance with
the Investment Trust Act, and in addition, non-reappointments are considered by the board of directors of theInvestment Corporation by comprehensively taking into account the auditing quality, auditor remuneration, and othervarious circumstances.

21

Invincible

Investment
Corporation

4 Asset Management Company, Asset Custody Companies, and General Administrative AgentsThe asset management company, asset custody companies, and general administrative agents at the end of the 20th
Fiscal Period are as below.
Delegation Category

Name

Asset management company

Consonant Investment Management Co., Ltd.

Asset custody company

Sumitomo Mitsui Trust Bank, Limited

General administrative agent (institutional operations (Note 1)

Sumitomo Mitsui Trust Bank, Limited

administration of investors’ registry, etc.)
General administrative agent (institutional operations (Note 2))

Consonant Investment Management Co., Ltd.

General administrative agent (auditing operations, etc.)

EP Consulting Services Corporation

Special account management company

Mitsubishi UFJ Trust and Banking Corporation Limited (Note 3) /Sumitomo Mitsui Trust Bank, Limited (Note 4)(Note 1) Of the administrative tasks for the Investment Corporation’s institutional operations, tasks related to the mailing of general unitholders’meetings and the receipt and counting of voting forms are delegated(Note 2) ① Tasks related to the running of general unitholders’ meetings for the Investment Corporation (excluding tasks related to the mailing ofgeneral unitholders’ meetings and the receipt and counting of voting forms),② Tasks related to the running of the meetings of the Board of Directorsof the Investment Corporation, and ③ the aforementioned in ① or tasks incidental or related to ② are delegated.
(Note 3) Conducts administrative tasks related to the creation, maintenance, and disposition of transfer savings account registers for special accounts
of unitholders of the Investment Corporation before the merger (former Tokyo Growth REIT Fund) as well as tasks related to other transfer savings
account registers.
(Note 4)Conducts administrative tasks related to the creation, maintenance, and disposition of transfer savings account registers for special accounts
of unitholders of the former LCP as well as tasks related to other transfer savings account registers.

22

Invincible

Investment
Corporation

Status of Investment Corporation’s Assets under Management
1
Type of
Asset

Composition of Investment Corporation’s Assets

Purpose

Geographic area
(Note 1)

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

Amount held(millions of yen)
(Note 2)
Greater Tokyo area －Residential
Major regional cities －Subtotal－
Greater Tokyo area 717
Real estate Office/Retail
Major regional cities －Subtotal
717
Seniors,
Greater Tokyo area 3,078
hourly parking, Major regional cities 1,463
etc.
Subtotal
4,542
Total real estate
5,259Greater Tokyo area 44,512
Residential
Major regional cities 12,333
Subtotal
56,845
Greater Tokyo area 7,089
Real estate
Office/Retailin trust
Major regional cities 6,147
Subtotal
13,237
Seniors,
Greater Tokyo area －hourly parking, Major regional cities －etc.
Subtotal－
Total real estate in trust
70,083
Deposits and other assets
4,857
Total assets (Note 3)
80,200(75,342)

Ratio of total assets
(%)
－
－
－
0.9
－
0.9
3.8
1.8
5.7
6.6
55.5
15.4
70.9
8.8
7.7
16.5
－
－
－
87.4
6.1
100.0
(93.9)

Fiscal Period ended June 30, 2013(as of June 30, 2013)
Amount held(millions of yen)
(Note 2)
－
－
－
715
－
715
3,061
1,452
4,513
5,229
44,312
12,20856,5207,092
6,111
13,204－－－69,724
5,294
80,249(74,954)

Ratio of total assets
(%)
－
－
－
0.9
－
0.9
3.8
1.8
5.6
6.5
55.2
15.2
70.4
8.8
7.6
16.5
－
－
－
86.9
6.6
100.0
(93.4)(Note 1) Greater Tokyo area refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture.
(Note 2) ”Amount held” is from the baance sheet as of the end of the reporting period and is calculated by decreasing accumulated
depreciation from the acquisition price (including acquisition related costs).
(Note 3) The figure indicated in“( )” in “total assets”shows the amount related to actual owned real estate.

2

Major Properties

The overview of the Investment Corporation’s major properties (top 10 properties by book value) at the end of the reporting period are as
below.
Name of Property

Book Value(millionsof yen)Leasable
Area (m2)

LeasedArea (m2)Occupancy
rate (%)(Note)

Ratio ofrentalrevenue (%)

Main Use

A75 Spacia Ebisu
B14 Lexington Plaza Nishigotanda
B17 Lexington Plaza Hachiman
A52 Winbell Kagurazaka
A51 City House Tokyo Shinbashi
B18 AEON Town Sukagawa
A53 Nishiwaseda Crescent Mansion
A76 Neo Prominence
A30 Emerald House
A31 Lexington Square Akebonobashi

6,765
4,820
3,202
3,156
2,431

Total

28,8777,030.36
5,437.21
8,419.15
3,908.60
3,364.00
18,440.58
4,245.84
3,451.60
2,152.31
1,875.75
58,325.40

90.2
90.1
100.0
96.9
100.0
100.0
98.5
96.6
100.0
94.4
97.0

6.8
4.9
5.6
3.7
3.2
5.1
2.7
2.3
1.8
1.7
37.8

Residential

2,150
1,852
1,668
1,436
1,393

7,794.91
6,033.58
8,419.15
4,032.70
3,364.00
18,440.58
4,310.77
3,574.70
2,152.31
1,987.88
60,110.58

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

23

3

Invincible

Asset Portfolio Including Real Estate

Investment
Corporation

The portfolio of held properties (real estate and accounts of assets and liabilities within assets in trust) of the Investment Corporation at
the end of the reporting period are as below.
Name of property

A26
A27
A28
A29
A30
A31
A32
A33
A34
A35
A36
A37
A38
A39
A40
A41
A42
A43
A44
A45
A46
A47
A48
A51
A52
A53
A54
A56
A59
A61
A62
A63
A64
A65
A66
A71
A72
A73
A75

Nisshin Palacestage Daitabashi

Location (Note 1)

Type of ownership

1-31-2 Izumi, Suginami Ward, Trust beneficiary interests
Tokyo
Nisshin Palacestage Higashi-Nagasaki 5-4-1 Nagasaki, Toshima
Trust beneficiary interests
Ward, Tokyo
Growth Maison Gotanda
2-26-6 Nishi-Gotanda,
Trust beneficiary interests
Shinagawa Ward, Tokyo
Growth Maison Kameido
6-58-16 Kameido, Koto Ward, Trust beneficiary interests
Tokyo
Emerald House
3-27-18 Itabashi, Itabashi
Trust beneficiary interests
Ward, Tokyo
Harmonie Ochanomizu
2-5-5 Yushima, Bunkyo Ward, Trust beneficiary interests
Tokyo
Suncrest Shakujii-Koen
3-15-35 Takanodai, Nerima
Trust beneficiary interests
Ward, Tokyo
Growth Maison Shin-Yokohama
3-16-2 Shin-Yokohama,
Trust beneficiary interests
Kohoku-ku, Yokohama City,
Belle Face Ueno-Okachimachi
1-27-5 Higashi-Ueno, Taito
Trust beneficiary interests
Ward, Tokyo
Grand Rire Kameido
3-39-12 Kameido, Koto Ward, Trust beneficiary interests
Tokyo
Growth Maison Ikebukuro3-31-14 Nishi-Ikebukuro,
Trust beneficiary interests
Toshima Ward, Tokyo
Growth Maison Yoga
1-15-15 Okamoto, Setagaya
Trust beneficiary interests
Ward, Tokyo
Route Tachikawa
3-7-6 Nishikicho, Tachikawa Trust beneficiary interests
City, Tokyo
Shibuya-Honmachi Mansion
2-35-2 Honmachi, Shibuya
Trust beneficiary interests
Ward, Tokyo
City Heights Kinuta
4-13-15 Kinuta, Setagaya
Trust beneficiary interests
Ward, Tokyo
Acseeds Tower Kawaguchi- Namiki 2-5-13 Namiki, Kawaguchi
Trust beneficiary interests
City, Saitama Prefecture
Capital Heights Kagurazaka
71-1 Enokicho, Shinjuku
Trust beneficiary interests
Ward, Tokyo
College Square Machida
3-4-4 Nakamachi, Machida
Trust beneficiary interests
City, Tokyo
Belair Meguro
1-2-15 Meguro, Meguro Ward, Trust beneficiary interests
Tokyo
Wacore Tsunashima I
2-7-47 Tarumachi, Kohoku-ku, Trust beneficiary interests
Yokohama City, Kanagawa
Foros Nakamurabashi
1-6-6 Koyama, Nerima Ward, Trust beneficiary interests
Tokyo
Growth Maison Kaijin
5-29-51 Kaijin, Funabashi
Trust beneficiary interests
City, Chiba Prefecture
College Square Machiya
7-3-1 Arakawa, Arakawa
Trust beneficiary interests
Ward, Tokyo
City House Tokyo Shinbashi
6-19-1 Shinbashi, Minato
Trust beneficiary interests
Ward, Tokyo
Winbell Kagurazaka
6-15 Shin-Ogawacho, Shinjuku Trust beneficiary interests
Ward, Tokyo
Nishiwaseda Cresent Mansion
3-18-9 Nishi-Waseda,Shinjuku Trust beneficiary interests
Ward, Tokyo
Lexington Square Akebonobashi
3-8 Yochomachi,Shinjuku
Trust beneficiary interests
Ward, Tokyo
Casa Eremitaggio
1-14-15 Nakane,Meguro Ward, Trust beneficiary interests
Tokyo
Towa City Coop Shinotsuka II
5-49-7 Higashi-Ikebukuro,
Trust beneficiary interests
Toshima Ward, Tokyo
Bichsel Musashiseki
1-22-7 Sekimachi-Kita,Nerima Trust beneficiary interests
Ward, Tokyo
Lexel Mansion Ueno Matsugaya
3-10-2 Matsugaya,Taito Ward, Trust beneficiary interests
Tokyo
Towa City Coop Sengencho
4-338-2 Sengencho, NishiTrust beneficiary interests
ku,Yokohama City, Kanagawa
Royal Park Omachi
2-11-10 Omachi, Aoba-ku,
Trust beneficiary interests
Sendai City, Miyagi Prefecture
Lexington Square Haginomachi
1-15-16 Haginomachi,
Trust beneficiary interests
Miyagino-ku, Sendai City,
Visconti Kakuozan
2-44 Otanacho, ChikusaTrust beneficiary interests
ku,Nagoya City, Aichi
Lexington Square Daitabashi
1-33-8 Izumi,Suginami Ward, Trust beneficiary interests
Tokyo
Lexington Square Honjo Azumabashi 4-20-6
Trust beneficiary interests
Higashikomagata,Sumida
AMS TOWER Minami 6-Jo
2-5-15 Minami 6-Jo Nishi,
Trust beneficiary interests
Chuo-ku, Sapporo City,
Spacia Ebisu
3-6-22 Higashi,Shibuya Ward, Trust beneficiary interests
Tokyo

Leasable
Area (m2)
1,771.13

Appraisal value as ofBook Value
June 30, 2013
(millions of yen)(million of yen)
(Note 2)
1,120
1,153

2,681.94

1,220

1,100

1,051.50

916

855

1,367.96

1,040

1,024

2,152.31

1,170

1,436

1,748.24

1,210

1,391

3,029.16

997

1,051

1,858.44

1,040

1,006

1,351.11

918

993

1,562.26

895

866

952.89798

787

1,015.34

669

771

1,368.57

584

655

1,167.50579

657

1,235.93448

648

1,210.74

666

581

1,126.65528

619

1,047.75

519

575

557.05529

576

908.99491

554

815.77526

538

2,040.27451

527

871.35487

484

3,364.00

2,610

2,431

4,032.70

3,400

3,156

4,310.77

2,010

1,852

1,987.88

1,550

1,393

1,197.19

996

1,014

1,627.13930

837

1,220.24

595

563

1,969.45

1,050

915

3,426.36

1,210

1,058

1,929.59450

398

1,528.58

391

313

705.75226243

1,430.64

995

922

784.74516

477

4,460.56

1,050

1,084

7,794.91

6,810

6,765

24

Invincible
A76
A77
A78
A79
A80
A81
A82
A83
A84
A85
A86
A87
A88
A89
A90
A91
A92
A93
A94
A95
A96
A97
A98
A99

Neo Prominence

3-21-5 Shimo, Kita Ward,
Trust beneficiary interests
Tokyo
Invoice Shin-Kobe Residence
3-3-8 Ikutacho Chuo
Trust beneficiary interests
Ward,Kobe City, Hyogo
Cosmo Court Motomachi
3-12-20 Motomachi Dori Chuo Trust beneficiary interests
Ward,Kobe City, Hyogo
Trust beneficiary interests
Revest Honjin
2-13 Torii Dori Nakamura
Ward, Nagoya City, Aichi
Revest Matsubara
3-13-12 Matsubara Naka Ward Trust beneficiary interests,Nagoya City, Aichi Prefecture
Sun Terrace Minami Ikebukuro
2-22-6 Minami Ikebukuro,
Trust beneficiary interests
Toshima Ward, Tokyo
Alba Noritake Shinmachi
3-6-8 Noritake Shinmachi,
Trust beneficiary interests
Nishi Ward, Nagoya City,
Revest Meieki Minami
2-13-33 Meiekiminami,
Trust beneficiary interests
Nakamura Ward, Nagoya City,
Revest Heian
2-13-17 Heian, Kita Ward,
Trust beneficiary interests
Nagoya City, Aichi Prefecture
Vendir Hamaotsu Ekimae
1-2-15 Hama Otsu,Otsu City, Trust beneficiary interests
Shiga Prefecture
Salvo Sala
2-6-21 Shimanouchi Chuo
Trust beneficiary interests
Ward, Osaka City, Osaka
Excellente Kagurazaka
128-1 YamabukichoShinjuku Trust beneficiary interests
Ward,Tokyo
Luna Court Edobori
3-4-11 Edobori, Nishi Ward, Trust beneficiary interests
Osaka City, Osaka Prefecture
Winntage Kobe Motomachi
7-2-2 Motomachi Dori, Chuo Trust beneficiary interests
Ward,Kobe City, Hyogo
Queen's Court Fukuzumi
1-3-10 Fukuzumi, Koto Ward, Trust beneficiary interests
Tokyo
Corp Higashinotoin
380-1 Kawaranomachi,
Trust beneficiary interests
Higashinotoin Dori Nijo
Belair Oimachi
5-14-17 Higashi Oi, Shinagawa Trust beneficiary interests
Ward, Tokyo
Siete Minami-Tsukaguchi
3-18 Minami
Trust beneficiary interests
Tsukaguchimachi, Amagasaki
Prime Life Sannomiya Isogami Koen 4-3-23 Isogamidori ,Chuo
Trust beneficiary interests
Ward, Kobe City Hyogo
HERMITAGE NANBA WEST
4-10-3 Sakuragawa Naniwa
Trust beneficiary interests
Ward, Osaka City, Osaka
Century Park Shinkawa 1-bankan
4-1-2 Shinkawamachi Minato Trust beneficiary interests
Ward,Nagoya City, Aichi
West Avenue
1-5-17 Nishi,Kunitachi City, Trust beneficiary interests
Tokyo
Little River Honmachibashi
1-34 Honmachibashi Chuo
Trust beneficiary interests
Ward,Okasa City, Osaka
2-25-11Mikage Tsukamachi Trust beneficiary interests
Prime Life Mikage
Higashi Nada Ward, Kobe
City, Hyogo Prefecture
Subtotal

B8
B9
B14
B15
B16
B17
B18

C1
C21
C22
C23
C24
C25
C26
C27

Kindai Kagakusha Building

2-7-15, Ichigaya
Trust beneficiary interests
Tamachi,Shinjuku Ward,
Shinjuku Island
6-5-1 Nishi-Shinjuku, Shinjuku Real estate
Ward, Tokyo
Lexington Plaza Nishigotanda 5-2-4 Nishigotanda,Shinagawa Trust beneficiary interests
Ward, Tokyo
Cross Square NAKANO
5-24-18 Nakano,Nakano Ward, Trust beneficiary interests
Tokyo
Ohki Aoba Building
9-7 Futsukacho, AobaTrust beneficiary interests
ku,Sendai City, Miyagi
Lexington Plaza Hachiman
3-1-50 Hachiman, AobaTrust beneficiary interests
ku,Sendai City, Miyagi
AEON TOWN Sukagawa
105 Furukawa,Sukagawa City, Trust beneficiary interests
Fukushima Prefecture
Subtotal
Stop Parking Kanda-Sudacho

1-22-7 1-22-15 Kanda
Real estate
Sudacho, Chiyoda-ku, TokyoBon Sejour Chitose Funabashi 1-37-3 Funabashi, Setagaya
Real estate
Ward, TokyoBon Sejour Yotsugi
3-1-11 Higashi-Yotsugi,
Real estate
Katsushika Ward, TokyoBon Sejour Hino
438-1 Ochigawa, Hino
Real estate
City, TokyoBon Sejour Musashi Shinjo
773-2 Chitose, Takatsu-ku,
Real estate
Kawasaki City, Kanagawa
Bon Sejour Komaki
3-1 Shiroyama, Komaki City,
Real estate
Aichi Prefecture
Bon Sejour Hadano Shibusawa 1-6-60 ShibusawaReal estate
Kami, Hadano City, Kanagawa
Bon Sejour Itami
1-2-25 Chuo, Itami City,
Real estate
Hyogo Prefecture
Subtotal
Total

3,574.70

1,680

1,668

2,773.71

1,280

1,273

2,310.49

1,000

986

1,933.80

697

684

1,955.40

684

666

898.70631

629

1,731.68

626

618

1,634.60

609

607

1,554.03605

604

2,670.66645

590

1,428.12

557

553

701.92552

550

1,185.50

538

532

1,433.35

537

520

765.18468

460

1,029.05

457

451

530.60420

416

1,020.86388

380

789.12375

378

992.76366

361

1,477.62

337

340

794.80330

333974.81

321

315

761.18300

301

109,585.98 56,993

Investment
Corporation

56,5201,451.54

1,010

526.43531

6033.58

4,070

2145.00

938

2,178.41602

8,419.15

3,210

18,440.58

2,150

39,194.69

12,51181.04

92

2,342.17

747

1,962.87

692

1,984.17651

1,710.43552

8,858.49

1,060

3,435.79616

2,129.87

433

22,504.83

4,843

4,513

171,285.50 74,347

74,954

1,226
715
4,820
1,046
758
3,202
2,150
13,920
100
662
628
555
471
996
641
455

(Note 1) “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 2) “Appraisal value” is the value appraised or researched as of the end of the fiscal period in accordance with the Articles of Incorporation and the regulations of the Investment
Trust Association, Japan by Asset Research and Development Inc., the Japan Real Estate Institute, Morii Appraisal & Investment Consulting Inc., or Tanizawa Sogo Appraisal
Co., Ltd.

25

Invincible

Investment
Corporation

Occupancy trends for the leasing operations of the real estate and acounts of assets and liabilities within assets in trust that the Investment
Corporation holds are as below.
19th Fiscal Period(July 1, 2012 to December 31, 2012)

Name

A26 Nisshin Palacestage Daitabashi
Nisshin Palacestage Higashi-Nagasaki

20th Fiscal Period(January 1, 2013 to June 30, 2013)

Number oftenants (at endof period)(unit)

Occupancy
rate(at end of
period) (%)(Note 1)

Rental revenue
Ratio of rental Number of(during period)
revenuetenants (at(Thousands of yen) （％）
end ofperiod)（Note 2）
(unit)

Occupancy
rate(at end of
period) (%)(Note 1)

1

96.9

41,031

1.7

1Rental revenue
Ratio of rental(during period)
revenue(Thousands of yen) （％）（Note 2）98.0

40,694

1.5

1

90.3

46,864

1.9

1

98.4

46,495

1.7

A28 Growth Maison Gotanda

1

100.0

27,399

1.1

1

100.0

27,4811.0

Growth Maison Kameido

A27

1

94.0

33,066

1.3

1

94.0

33,015

1.2

A30 Emerald House

1

99.0

42,027

1.7

1

100.0

50,083

1.8

A31 Harmonie Ochanomizu

1

100.0

40,401

88.2

41,051

1.5

1

1

95.6

37,025

1.3

A33 Growth Maison Shin-Yokohama

1

94.7

1.6
1.4

1

Suncrest Shakujii-Koen

1.4

1

97.1

35,753

1.3

A29

A32
A34

Belle Face Ueno-Okachimachi

A35 Grand Rire Kameido
A36

Growth Maison Ikebukuro

1

98.5
98.4

1

100.0

35,27335,18430,593
26,619

1

90.6
92.2
100.0

20,021
19,691
16,876

1.2

1

100.0

32,762

1.2

1.1

1

100.0

26,6191.0

25,016

1.0

1

88.2

23,6070.9

22,964

0.9

1

97.3

21,693

0.8

0.8
0.8

1

76.7

20,364

0.7

1

80.8

19,238

0.7

0.7

1

94.6

17,112

0.6

A37 Growth Maison Yoga

1

A38 Route Tachikawa

1

A39 Shibuya-Honmachi Mansion

1

A40 City Heights Kinuta

1

100.0
89.2

1

100.0

25,138

1.0

1

93.0

26,096

0.9

92.5
100.0

18,276
18,26815,463

0.7

1

97.2

18,127

0.7

0.7

1

100.0

18,268

0.7

0.6

1

96.0

16,3040.6

16,969

0.7

1

90.0

18,235

0.7

17,09423,017

0.7

1

92.0

17,550

0.6

0.9
0.6

1

0.8

1

94.4
100.0

22,24914,706

0.5

3.4
4.0

1

100.0

87,840

3.2

1

96.9

102,111

3.7

2.8

1

98.5

73,895

2.7

1.9

1

94.4

47,818

1.7

1.2
1.4

1

90.0

27,934

1.0

1

94.9

34,269

1.2

1.0
1.3

1

95.7

25,714

0.9

1

86.8

32,021

1.2

60,001

2.4

1

94.9

61,782

2.2

24,44817,468
11,68029,171

1.0

1

100.0

25,9360.9

A41

Acseeds Tower Kawaguchi- Namiki

A42 Capital Heights Kagurazaka
A43

College Square Machida

A44 Belair Meguro

111

Wacore Tsunashima I

1

92.1
96.1

A46 Foros Nakamurabashi

1

100.0

A47 Growth Maison Kaijin

1

A48 College Square Machiya

1

97.1
100.0

A51 City House Tokyo Shinbashi

1

90.8

84,981

A52 Winbell Kagurazaka

1

96.4

A53 Nishiwaseda Cresent Mansion

1

A54 Lexington Square Akebonobashi

1

A56 Casa Eremitaggio

1

100.0
93.1
92.9

98,837
68,77247,536

A59 Towa City Coop Shinotsuka II

1

97.3

Bichsel Musashiseki

1

97.1

A45

A61

A62 Lexel Mansion Ueno Matsugaya

1

Towa City Coop Sengencho

1

93.2
94.3

1

96.4

1

100.0
88.6

A63

A64 Royal Park Omachi
A65

Lexington Square Haginomachi

A66 Visconti Kakuozan

1

14,706

29,761
33,612
24,41833,276

Lexington Square Daitabashi

1

A72 Lexington Square Honjo Azumabashi

1

A73 AMS TOWER Minami 6-Jo

1

90.0

1
1

92.2
94.8

186,857

1

99.1

25,296
19,528

A71

A75

Spacia Ebisu

A76 Neo Prominence ※A77

Invoice Shin-Kobe Residence ※A78 Cosmo Court Motomachi ※

1

95.1
100.0

97.5

17,52947,194
31,424

0.7

1

100.0

18,166

0.7

0.5

1

100.0

10,515

0.4

1.2
0.7

1

95.1

32,140

1.2

1

93.9

18,498

0.7

1.9

1

88.2

48,065

1.7

7.5
1.3

1

90.2

187,658

6.8

1

96.6

62,498

2.3

1.0

1

98.6

48,133

1.7

0.8

1

92.7

37,187

1.3
26

Invincible
Number oftenants (atend ofperiod)(unit)

Occupancy
rate(at end of
period) (%)(Note 1)

A79 Revest Honjin ※

1

A80

1

Revest Matsubara ※A81 Sun Terrace Minami Ikebukuro ※A82

Alba Noritake Shinmachi ※A83 Revest Meieki Minami ※A84 Revest Heian ※A85

Vendir Hamaotsu Ekimae ※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

20th Fiscal Period(January 1, 2013 to June 30, 2013)

19th Fiscal Period(July 1, 2012 to December 31, 2012)

Name

Little River Honmachibashi ※A99 Prime Life Mikage ※Subtotal

Investment
Corporation

Rental revenue
Number ofOccupancy(during period)
tenants (at end rate
(Thousands of yen) of period)(at end of(unit)
period) (%)（Note 2）
(Note 1)

Rental revenue Number of tenants Occupancy(during period) (at end of period) rate
(Thousands of (unit)(at end of
yen)
period) (%)(Note 1)
（Note 2）

15,724

0.6

1

98.8

31,1001.1

15,031

95.7

28,9571.0

10,867

0.6
0.4

1

1

93.8
91.9
100.0

1

97.4

22,001

0.8

1

98.6

13,104

0.5

1

93.8

25,407

0.9

1

97.0

12,852

0.5

1

100.0

25,5120.9

11,283

0.5

1

100.0

23,2270.8

16,60095.4

31,352

1.1

1

98.0

24,272

0.9

1

89.9
100.0

0.7
0.4

1

10,958
8,945

0.4

1

97.1

18,157

0.7

1

96.0

10,787

0.4

1

98.0

21,571

0.8

1

98.2
100.0

11,636

0.5
0.3

1

94.9

24,092

0.9

1

100.0

16,712

0.6

0.4

1

97.7

17,929

0.6

0.3
0.4

1

100.0

14,640

0.5

1

100.0

17,140

0.6

0.3

1

100.0

14,804

0.5

0.3
0.4

1

86.9

14,732

0.5

1

90.9

16,940

0.6

1

82.5

12,652

0.5

6,685

0.3
0.3

1

93.8

12,986

0.5

6,292

0.3

1

100.0

12,3150.4

1,719,628
37,386

69.4
1.5

63

95.0

2,033,237

73.7

1
1
1

1
1
1
1
1
1
1
1
1

95.2
93.3

100.0
92.6

9,189
7,351

94.9
100.0
91.2

8,935

100.0
90.0

9,010

63

96.9
85.5
95.4

1

8,191

7,741
7,889
6,787

B8

Kindai Kagakusha Building

1

100.0

1

100.0

37,8901.4

B9

Shinjuku Island

1

100.0

(Note 4)(Note 4)1100.0(Note 4)(Note 4)

B14 Lexington Plaza Nishigotanda

8

100.0

134,136

4.9

1

57.6

28,611

1.0

Ohki Aoba Building

1

54.2
100.0

6.3
1.2

90.1

1

157,111
29,2348

B15 Cross Square NAKANO

39,761

1.6

1

100.0

40,2491.5

B17 Lexington Plaza Hachiman

1

94.6

1

100.0

155,659

5.6

AEON TOWN Sukagawa

1

100.0

5.8

1

100.0

140,8175.1

14

158,959
143,761
583,412

6.4

14

96.2

556,123

20.1

2,443

23.6
0.1

1

100.0

2,443

0.1

23,906

1.0

1

100.0

23,544

0.9

0.9

1

100.0

22,208

0.8

B16
B18
C1

Stop Parking Kanda-Sudacho

1

96.3
100.0

C21

Bon Sejour Chitose Funabashi

1

100.0

C22

Bon Sejour Yotsugi

1

100.0

C23

Bon Sejour Hino

1

100.0

22,52821,405

0.9

1

100.0

21,197

0.8

C24

Bon Sejour Musashi Shinjo

1

100.0

17,747

0.7

1

100.0

17,606

0.6

C25

Bon Sejour Komaki

1

100.0

1

100.0

44,479

1.6

Bon Sejour Hadano Shibusawa

1

100.0

45,58223,802

1.8

C26

1

100.0

23,371

0.8

C27

Bon Sejour Itami

1

100.0

15,971

1.0
0.6

1

100.0

15,9630.6

Subtotal

8

100.0

7.0
100.0

100.0

170,8166.2

85

173,3882,476,430

8

Total

85

95.9

2,760,177

100.0

Subtotal

96.2(Note 1) “Occupancy rate” is computed by dividing the leased area by leasable area, and is rounded to the second digit.
(Note 2) “Rental revenue (during period)” indicates each property’s leasing operation revenues dring the fiscal period, and has been rounded down to the nearest thousand yen.
(Note 3) The properties indicated with a “※” were acquired on September 28, 2012, and thus the condition of income, etc. covers the period from September 28, 2012 to
December 31, 2012.
(Note 4) Undisclosed due to inability to gain approval from the property tenant for document disclosure.

27

4

Status of Size and Market Value of Trading Assets

Invincible

Investment
Corporation

No relevant items
5

Status of Other Assets

Trust beneficiary interests in real estate and real estate held in trust are listed together in the 3 Asset Portfolio
Including Real Estate above. As of the end of this reporting period, there are no investments in specified assets thatare significant investment targets for the Investment Corporation outside of the above 3.
6Asset Holdings Outside of Japan or the Region

There are no relevant items outside of Japan or the region.

28

Invincible

Investment
Corporation

Capital expenditures for properties
1 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 realestate assets is as follows.

2 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 June 30, 2013 is asfollows. 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.

29

Invincible

Investment
Corporation

3 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 maintenancerepairs in the medium to long term future in accordance with the long-term maintenance plan for each property.

Overview of Liabilities and Expenses
1

Statement of Operating Expenses(Thousands of yen)Item

19th Fiscal Period

20th Fiscal Period(a) Asset management fees

Jul. 1, 2012 to Dec. 31, 2012
130,067

Jan. 1, 2013 to Jun. 30, 2013
125,000(b) Asset custodian fees(c) Administrative services fees(d) Directors’ remuneration(e) Other operating expenses

3,351

3,911

24,781

21,531

4,800

4,800

72,58478,293

235,585

233,536

30

Invincible
2

Investment
Corporation

Borrowing Conditions
Borrowing conditions by financial institution at the end of this reporting period are as below.

Type

Borrowing
Date

LenderLong-term
Debts(Note 11

Repayment
Date

Payment
MethodPurposeNotes

MetLife Alico
The Bank of New York
Mellon Trust (Japan), Ltd.
Citibank Japan Ltd.
Shinsei Bank, Limited.
Shinsei Trust & Banking
Co., Ltd.
Shinsei Trust & Banking
Co., Ltd.

4,487,406
Sep. 28. 2012 2,991,604

4,462,220
2,974,813

2.269
2.269

2,941,744
2,941,744
Jul. 29, 2011 7,100,000

2,925,233
2,925,233
7,100,000

2.269
2.269
8.500

(Note 2)
(Note 4)(Note 3)
Jul. 31, 2014
SecuredJul. 31, 2014
Conventional
Jan. 30, 2015 Lump Sum (Note 3)

Jul. 29, 2011 2,560,000

2,504,000

9.500

Jan. 30, 2015 (Note 5)

23,022,500

22,891,500

Mizuho Trust & Banking
Co., Ltd. (Note 9)

3,750,000
Jul. 29, 2011 3,620,000
3,630,000
2,700,000
Sep. 28. 2012 2,860,000
1,830,000
2,570,000
20,960,000
43,982,500

3,750,000
3,620,000
3,630,000
2,700,000
2,860,000

2.500
2.500
2.500
1.900
1.900

1,830,000
2,570,000
20,960,000
43,851,500

1.900
1.900

Jan. 25, 2017
(Note 3)Jan. 25, 2018 (Note 6)
Jan. 25, 2019
Mar. 31, 2018 Lump Sum
Mar. 31, 2019 (Note 7)(Note 2)Mar. 31, 2020 (Note 7)
Mar. 31, 2019 (Note 8)

SubtotalLong-term Debts
in Trust (Note 2) Mitsubishi UFJ Trust andBanking Corporation(Note 10)
Subtotal

Balance at Start of Balance at End of Average
Reporting Period Reporting Period Interest Rate
(Thousands of yen) (Thousands of yen) (%) (Note 1)

Jul. 31, 2014
Jul. 31, 2014

(Note 3)

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

Average interest rate is the daily weighted average number of the period according to the number of days, and is rounded to one decimal place.
The funds raised through borrowings are mainly used to acquire real estate properties or properties in trust.
Used for purposes including repayment of existing debt.
Portion of principal (37 million yen) repaid on same day as coupon payment date (every 3 months), and lump-sum payment of balance to be made on principal
maturity date.
(Note 5) Portion of principal (28 million yen) repaid on same day as coupon payment date (every 3 months), and lump-sum payment of balance to be made on principal
maturity date.
(Note 6) On each principal and interest payment date (every 3 months) that occurs after 3 years from the borrowing date, amounts paid will be those calculated under theassumption that the repayment of the balance of the principal will be by the equal payment method for a term of 20 years (total 80 payments). The balance remaining
after the payments above will be repaid in one lump sum on the principal maturity date.
(Note 7) On each principal and interest payment date (every 3 months) that occurs after 5 years from the borrowing date, amounts paid will be those calculated under theassumption that the repayment of the balance of the principal will be by the equal payment method for a term of 30 years (total 120 payments). The balanceremaining after the payments above will be repaid in one lump sum on the principal maturity date.
(Note 8) On each principal and interest payment date (every 3 months) that occurs after 3 years from the borrowing date, amounts paid will be those calculated under theassumption that the repayment of the balance of the principal will be by the equal payment method for a term of 27 years (total 108 payments). The balanceremaining after the payments above will be repaid in one lump sum on the principal maturity date.
(Note 9) Mizuho Trust & Banking Co., Ltd. is the trustee of the REIT of which the Investment Corporation is the beneficiary, and has borrowed funds on Jul. 29, 2011 fromPrudential Mortgage Asset Holdings 1 Japan Investment Limited Partnership of Prudential Financial Inc. Group. The Investment Corporation received said loan
(after deduction of reserves) as grant of trust principal of said REIT from Mizuho Trust & Banking Co. Ltd. on the same date.
(Note 10) Mitsubishi UFJ Trust and Banking Corporation is the trustee of the REIT of which the Investment Corporation is the beneficiary, and has borrowed funds on Sep. 28,
2012 from Prudential Mortgage Asset Holdings 1 Japan Investment Limited Partnership of Prudential Financial Inc. Group. The Investment Corporation received
said loan (after deduction of reserves) as grant of trust principal of said REIT from Mitsubishi UFJ Trust and Banking Corporation on the same date.
(Note 11) Includes long-term debt scheduled to be repaid within 1 year.

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

The following is a summary English language translation of original Japanese audited financial statements. However, noassurance or warranties are given with respect to the accuracy or completeness of this summary English language translation,and it should be noted that this translation has not been audited or reviewed by our auditor. The Japanese original shall prevailin the case of any discrepancies between this summary English language translation and the Japanese original.

31

Invincible

II. Balance Sheet

Investment
Corporation(Unit: thousands of yen)
Fiscal Period ended
December 31, 2012
(As of December 31, 2012)

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

AssetsCurrent Assets
Cash and deposits
Cash and deposits in trust

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(163,166)(190,772)

2,517,007

2,489,402

50,691

50,691

Accumulated depreciation(24,125)(26,789)

Equipment, net

26,56623,902※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
Buildings, net
Equipment

Building improvements

※1

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

Accumulated depreciation(1,782,176)(2,060,616)

Buildings in trust, net

27,882,085

27,617,278

Land
Buildings in trust

Equipment in trust

※1

※1
※1

※1

Accumulated depreciation
Equipment in trust, net
Building improvements in trust※1

Accumulated depreciation
Building improvements in trust, net

6,608,496

6,713,907(1,280,186)(1,493,122)

5,328,309

5,220,784

294,542

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

220,693

226,389

123,699(54,255)

142,175(64,333)

69,443

77,84236,582,527

36,582,527

75,342,842

74,954,199

Others244

167

Total intangible assets

244

167

Tools, furniture and fixtures in trust
Accumulated depreciation※1

Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment※1

Intangible assets

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
Total non-current Assets
Total Assets

292,787

201,075

75,635,874

75,155,443

80,200,022

80,249,063 32

Invincible
Fiscal Period ended
December 31, 2012
(As of December 31, 2012)

Investment
Corporation(Unit: thousands of yen)
Fiscal Period ended
June 30, 2013
(As of June 30, 2013)

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

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

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

Capital Surplus
Unappropriated retained earnings/loss

6,264,432
271,868

6,264,432
449,196

Total Surplus

6,536,300

6,713,628

32,670,697

32,848,025

32,670,697

32,848,025

80,200,022

80,249,063

Total Liabilities
Net Assets
Unitholders’ Equity
Unitholders’ Capital
Surplus

Total Unitholders’ Equity
Total Net Assets
Total Liabilities and Net Assets※333

Invincible

III. Statement of Income

Investment
Corporation(Unit: thousands of yen)
Fiscal Period ended
December 31, 2012
(from July 1, 2012 to
December 31, 2012)

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

130,067
3,351

125,000
3,911

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

Operating Revenues
Rental revenues※1

Total Operating Revenues
Operating Expenses
Property related expenses
Directors’ remuneration
Asset management fees
Asset custodian fees
Administrative service fees
Provision of allowance for doubtful accounts
Other operating expenses
Total Operating Expenses
Operating Income※1

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

34

Invincible
IV. Statement of Unitholders’ Equity

Investment
Corporation(Unit: thousands of yen)
Fiscal Period ended
December 31, 2012
(from July 1, 2012 to
December 31, 2012)

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

26,134,396

26,134,396

Unitholders’ Equity
Unitholders’ Capital
Balance at the beginning of the period
Change during the period
Total change during the period--

26,134,396

26,134,396

6,264,432

6,264,432--

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

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

Total change during the period(155,478)

177,328

6,536,300

6,713,628

32,826,175

32,670,697

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

Total change during the period(155,478)

177,328

32,670,697

32,848,025

32,826,175

32,670,697

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

Total change during the period(155,478)

177,328

32,670,697

32,848,025

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

Balance at the end of the period
Total Unitholders’ Equity
Balance at the beginning of the period
Change during the period

Balance at the end of the period
Total Net Assets
Balance at the beginning of the period
Change during the period

Balance at the end of the period

35

Invincible

Investment
Corporation

V. Notes［ Notes Concerning Significant Accounting Policies］
By Period

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

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

1. Method of depreciation of noncurrent assets

1. Property, plant and equipment
The straight-line method is used.
The useful lives of major property, plant andequipment are as follows.

1. Property, plant and equipment
The straight-line method is used.
The useful lives of major property, plant andequipment are as follows.

Item

Buildings

40 - 77 years Buildings

40 - 77 years

Equipment

3 - 24 years Equipment

3 - 24 years

Building improvements

3 - 18 years Building improvements

3 - 18 years

Buildings in trust

6 - 66 years Buildings in trust

6 - 66 years

Equipment in trust

3 - 32 years Equipment in trust

3 - 32 years

Building improvements in trust

3 - 55 years Building improvements in trust

3 - 55 years

Tools, furniture & fixtures in trust 2 - 15 years Tools, furniture & fixtures in trust 2 - 15 years
2.Intangible assets
The straight-line method is used.
3. Long-term prepaid expenses
The straight-line method is used.
2. Method of calculating allowances

3. Revenue and expense recognition

2.Intangible assets
The straight-line method is used.
3. Long-term prepaid expenses
The straight-line method is used.

Allowance for doubtful accounts
Allowance for doubtful accounts
To reserve for losses on doubtful accounts,
To reserve for losses on doubtful accounts,
allowances are provided for normal receivables allowances are provided for normal receivables
using a rate determined based on past bad debt using a rate determined based on past bad debt
experiences, and specific allowances areexperiences, and specific allowances areprovided for accounts with a possibility ofprovided for accounts with a possibility ofdefault based on the estimated amounts
default based on the estimated amounts
considered to be uncollectible by considering the considered to be uncollectible by consideringcollectability of accounts on an individual basis. the collectability of accounts on an individual
basis.
Accounting treatment of property taxes andAccounting treatment of property taxes andother taxes
other taxes
With respect to property taxes, city planningWith respect to property taxes, city planningtaxes and depreciable asset taxes, of the tax
taxes and depreciable asset taxes, of the tax
amount assessed and determined, the amountamount assessed and determined, the amountcorresponding to the relevant fiscal period iscorresponding to the relevant fiscal period is
accounted for as property related expenses.
accounted for as property related expenses.
Of the amounts paid to the seller for acquisitions Of the amounts paid to the seller forof real estate, the amount equivalent to property acquisitions of real estate, the amounttaxes is capitalized as part of the acquisition cost equivalent to property taxes is capitalized asof the real estate instead of being charged aspart of the acquisition cost of the real estate
expense. The amount equivalent to property
instead of being charged as expense. There wastaxes that was included as part of the acquisition no such amount equivalent to property taxes
of real estate during this fiscal period is 16,270 that was included as part of the acquisition ofreal estate during this fiscal period.
thousand yen.

36

Invincible

By Period
Item

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

Investment
Corporation

For the Fiscal Period ended June 30, 2013
(from January 1 to June 30, 2013)(1) Accounting treatment of trust beneficiary (1) Accounting treatment of trust beneficiaryinterests of real estate
4.Other significant matters which interests of real estate
As to trust beneficiary interests of real estate, As to trust beneficiary interests of real estate, allconstitute the basis for
all accounts of assets and liabilities within
accounts of assets and liabilities within assets in
preparation of financial
assets in trust, as well as all income generated trust, as well as all income generated andstatements
and expenses incurred from assets in trust, are expenses incurred from assets in trust, arerecorded in the relevant balance sheets andrecorded in the relevant balance sheets andincome statement accounts. Of such items, the income statement accounts. Of such items, thefollowing significant trust assets and liabilities following significant trust assets and liabilities areare shown separately on the balance sheet.
shown separately on the balance sheet.
Cash and deposits in trust
Cash and deposits in trust
Buildings in trust
Buildings in trust
Equipment in trust
Equipment in trust
Building improvements in trust
Building improvements in trust
Tools, furniture and fixtures in trust
Tools, furniture and fixtures in trust
Land in trust
Land in trust
Tenant leasehold and security deposits in trust Tenant leasehold and security deposits in trust
Long-term debts in trust
Long-term debts in trust(2) Accounting treatment of consumption taxes (2) Accounting treatment of consumption taxes(a) Investment unit issuance expenses
Transactions subject to consumption
Transactions subject to consumption taxes aretaxes are recorded at amounts exclusive ofrecorded at amounts exclusive of consumption
consumption taxes.
taxes.

37

Invincible(Notes to the Balance Sheets)

Investment
Corporation※1.
Assets pledged as collateral and liabilities with collateral
Assets pledged as collateral are as follows.
(Unit：thousands of yen)
Fiscal Period ended Dec. 31, 2012

Fiscal Period ended Jun. 30, 2013(as of Dec. 31, 2012)(as of Jun. 30, 2013)

Cash and deposits in trust

2,786,480

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

77,842Land in trust

36,582,527

36,582,527

Total

78,129,323

77,644,531

Liabilities with collateral are as follows.
(Unit：thousands of yen)
Fiscal Period ended Dec. 31, 2012 Fiscal Period ended Jun. 30, 2013(as of Dec. 31, 2012)(as of Jun. 30, 2013)
Current portion of long-term debts

262,000

262,000

Long-term debts

22,760,500

22,629,500

Long-term debts in trust

20,960,000

20,960,000

Total

43,982,500

43,851,500※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.

(Unit：thousands of yen)
Fiscal Period ended Dec. 31,
2012 (as of Dec. 31, 2012)
50,000Fiscal Period ended Jun. 30, 2013(as of Jun. 30, 2013)
50,00038

Invincible

Investment
Corporation(Notes to Statement of Income)※1.
Rental revenues and property related expenses are as follows:(Unit：thousands of yen)
For the Fiscal Period ended July 1, 2012
(from July 1 to December 31, 2012)

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

A .Rental revenues
Rent/common area charges

2,300,764

2,537,676

Other revenues

175,665

222,500

Total

2,476,430

2,760,177

Maintenance costs

403,390441,633

Taxes and public dues

141,455

162,456

Insurance expenses

4,677

5,160

Other expenses

126,526

142,512

Depreciation expenses

480,622543,640

Total

1,156,672

1,295,403

C. Operating income from rental revenues A-B) 1,319,757

1,464,773

B.Property related expenses(Notes to Statement of Unitholders’ Equity)
Number of investment units authorized and number of investment units issued and outstanding
For the Fiscal Period ended July 1, 2012
(from July 1 to December 31, 2012)

For the Fiscal Period ended June 30, 2013
(from January 1 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

1,573,179 units

39

Invincible

Investment
Corporation(Notes Related to Tax Accounting)1.
Significant components of deferred tax assets and liabilities(Unit：thousands of yen)
Fiscal Period ended December 31, 2012
(from July 1 to December 31, 2012)
Deferred tax assets - current assets
Enterprise tax payable
564
Rental receivables(merger)
211
Allowance for doubtful accounts
291
Accrued expenses
6,454
Subtotal
7,522
Valuation allowance
7,522
Total
－
Net deferred tax assets – current－
Deferred tax assets – non-current assets
Buildings and other(merger)
Land(merger)
Long-term accrued expenses
Net loss carried forward
Subtotal
Valuation allowance
Total
Net deferred tax assets – non-current
2.

Fiscal Period ended June 30, 2013
(from January 1 to June 30, 2013)
590
211
559
6,454
7,815
7,815
－
－

1,208,736
2,547,099
513,845
7,023,707
11,293,388
11,293,388

1,194,346
2,547,099
510,618
7,023,707
11,275,771
11,275,771

－

－

－

－

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

Statutory tax rate
Deductible cash distributions
Provision of reserve for reduction entry
Others
Effective tax rate

36.59
(17.47)(19.22)0.63
0.53(Notes Related to Lease Contracts)
Operating lease transactions(as lessee)Remaining lease payments

Due within one year
Due after one year
Total

Fiscal Period ended December 31, 2012
(from July 1 to December 31, 2012)
112,2492,448,662
2,560,911(Unit: %)Fiscal Period ended June 30, 2013
(from January 1 to June 30, 2013)
36.59(31.40)(5.19)
0.18
0.18(Unit：thousands of yen)
Fiscal Period ended June 30, 2013
(from January 1 to June 30, 2013)
112,249
2,392,537
2,504,787

Operating lease transactions(as lessor)Remaining lease payments(Unit：thousands of yen)
Fiscal Period ended December 31, 2012
(from July 1 to December 31, 2012)
Due within one year
Due after one year
Total

674,516
7,595,851
8,270,367

Fiscal Period ended June 30, 2013
(from January 1 to June 30, 2013)
674,516
7,258,593
7,933,109

40

Invincible

Investment
Corporation(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. andnot 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 andfinancing.
(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 relatedacquisition costs) and for the repayment of existing debt. Liquidity risks relating to debt are managed by the finance department of
the Asset Manager by preparing and updating plans for funds, and monitoring the covenants set forth in loan agreements.
(3) Supplemental information regarding market value, etc. for financial instruments
The fair value of financial instruments is based on quoted market prices if available. When quoted market prices are 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.
2.

Estimated Fair Value of Financial Instruments

Book value, fair value and the difference between values as of December 31, 2012 are as follows.
(1) Cash and deposits(2) Cash and deposits in trust
Total assets(3) Current portion of long-term debts(4) Long-term debts(5) Long-term debts in trust
Total liabilities

Book value
745,429
2,786,480
3,531,910
262,000
22,760,500
20,960,000
43,982,500

Fair value
745,429
2,786,480
3,531,910
262,039
22,788,497
21,195,979
44,246,517(Unit：thousands of yen)
Difference―――
39
27,997
235,979
264,017

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

(1) Cash and deposits(2) Cash and deposits in trust
Total assets(3) Current portion of long-term debts(4) Long-term debts(5) Long-term debts in trust
Total liabilities

Book value
1,427,483
2,690,331
4,117,815
262,000
22,629,500
20,960,000
43,851,500

Fair value
1,427,483
2,690,331
4,117,815
263,952
22,932,788
21,117,642
44,314,382(Unit：thousands of yen)
Difference
―
―
―
1,952
303,288
157,642462,882(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) Current portion of long-term debts in trust

41

Invincible

Investment
Corporation

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
with floating 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

Tenant leasehold and security deposits(Unit：thousands of yen)
Fiscal Period ended December 31, 2012 Fiscal Period ended June 30, 2013
(from July 1 to December 31, 2012)(from January 1 to June 30, 2013)
183,579
183,579

Teneant leasehold and security deposits in trust 1,059,315

1,048,635

Tenant leasehold and security deposits and tenant leasehold and security deposits in trust have no observable market price, and it isimpracticable 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.
(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

745,429

―

―

―

―

―

Cash and deposits in trust

2,786,480

―

―

―

―

―

Total

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

―

―

―

―

―

Total

4,117,815

―

―

―

―

―

(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 262,000

―

―

―

―

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

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 262,000

―

―

―

―

―

Long-term debts―

22,629,500

―

―

―

―

Long-term debts in trust―

320,981

491,866

3,861,986

6,238,387

10,046,777

Total

262,000

22,950,481

491,866

3,861,986

6,238,387

10,046,777
42

Invincible

Investment
Corporation(Notes Related to Rental Properties)
The Investment Corporation owns residential and other properties principally in the Tokyo area and major regional cities for the
purpose of earning stable rental revenues. The book value, amount changed during the period and balance at the end of the period
are as follows.

(Unit：thousands of yen)Book
Residential value

Fiscal Period ended
December 31, 2012
(from July 1 to December 31,
2012)
Balance at the beginning of the period 42,701,472

Fiscal Period ended
June 30, 2013
(from January 1 to June 30,
2013)
56,845,746

Change during the period

14,144,274(325,585)

Balance at the end of the period

56,845,746

56,520,161

Fair value at the end of the period

OfficeBook
value

56,237,000

56,993,000

Balance at the beginning of the period 8,567,280

8,557,382

Change during the period(9,898)10,367

Balance at the end of the period

8,557,382

8,567,749

7,237,000

7,151,000

Fair value at the end of the period

RetailBook
value

Balance at the beginning of the period 5,442,452

5,397,628

Change during the period(44,824)(44,821)

5,397,628

5,352,806

5,210,000

5,360,000

Balance at the end of the period

Fair value at the end of the period

Parking

Book
value

Balance at the beginning of the period 100,878

100,865

Change during the period

(13)

(13)

Balance at the end of the period

100,865

100,851

91,30092,300Fair value at the end of the period

Seniors

Book
value

Balance at the beginning of the period 4,470,123

4,441,219

Change during the period(28,903)(28,590)

Balance at the end of the period

4,441,219

4,412,629

4,708,000

4,751,000

Fair value at the end of the period

Total

Book
Value

Balance at the beginning of the period 61,282,207

75,342,842

Change during the period

14,060,634(388,642)

Balance at the end of the period

75,342,842

74,954,199

73,483,300

74,347,300

Fair value at the end of the period(Note 1) Book value is the figure calculated by decreasing the amount of depreciation from acquisition price (including
acquisition-related 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 was capital 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
Research and Development Inc., Japan Real Estate Institute, Morii Appraisal & Investment Consulting Inc. and Tanizawa
Sogo Appraisal Co., Ltd.
For information related to profits and losses from rental properties, please refer to “Notes to Statement of Income.”
43

Invincible

Investment
Corporation(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

Name

Type ofbusiness% ofvoting rights
ownedType oftransaction
Repayment oflong-term
debts(Note 2)
(Note 3)

Interested Partyof the AssetManagerInterested Party of
the Asset Manager(Note 5)

Shinsei Trust andBanking Co., Ltd.

RhodiaGodo Kaisha(Note 5)

FinancialBusiness

FinancialBusiness――

Finance related
feesInterest
expensesAcquisition of
trust
beneficiaryinterests ofproperties intrust(Note 6)(Note 7)

Transaction
amount(thousands ofyen)

Account

Ending balance(thousandsof yen)Repayment of longterm debts

9,660,000

Long-term prepaid
expenses

97,690Prepaid expenses

90,270Long-term accrued
expenses

1,404,333

Accrued expenses

17,640428,601

Accrued expenses

141,503

14,043,000――

56,00045,506(Note 1) Consumption taxes are not included in transaction amounts, but are included in the balance at the end of the period.
(Note 2) For borrowing conditions, see “I. Asset Management Report - Overview of Liabilities and Expenses - 2. Borrowing
Conditions”.
(Note 3) 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 4) Calliope holds 609,942 units (holding ratio: 45.23%) of the issued investment units of the Company.
(Note 5) The seller, Rhodia Godo Kaisha, receives an anonymous partnership investment through funds that are managed by
FIG, an affiliate of Calliope. Accordingly, the Investment Corporation treats Rhodia Godo Kaisha as a related party.
(Note 6) The acquisition of the trust beneficiary interests relates to the properties below. Transaction amount is the purchaseamount set 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 7) The terms and conditions have been determined based on the Asset Manager’s internal rules and manual regardingtransactions with the sponsor company.

44

Invincible

Property number

Name of property

A76
A77
A78
A79
A80
A81
A82
A83
A84
A85
A86
A87
A88
A89
A90
A91
A92
A93
A94
A95
A96
A97
A98
A99
Total

Neo Prominence
Invoice Shin-Kobe Residence
Cosmo Court Motomachi
Revest Honjin
Revest Matsubara
Sun Terrace Minami Ikebukuro
Alba Noritake Shinmachi
Revest Meieki Minami
Revest Heian
Vendir Hamaotsu Ekimae
Salvo Sala
Excellente Kagurazaka
Luna Court Edobori
Winntage Kobe Motomachi
Queen's Court Fukuzumi
Corp Higashinotoin
Belair Oimachi
Siete Minami-Tsukaguchi
Prime Life Sannomiya Isogami Koen
HERMITAGE NANBA WEST
Century Park Shinkawa 1-bankan
West Avenue
Little River Honmachibashi
Prime Life Mikage

Investment
Corporation

Purchase and Sale
Price (thousands ofyen)
1,660,000
1,260,000
973,000
674,000
657,000
625,000
608,000
597,000
595,000
581,000
544,000
543,000
525,000
512,000
456,000
446,000
412,000
374,000
373,000
355,000
335,000
331,000
310,000
297,000
14,043,000

45Invincible

Investment
Corporation

2.. Asset Custodian
Classification

Asset Custodian

Name

Sumitomo Mitsui
Trust Bank, Limited

Type ofbusiness

Bankingand Trustbusiness% ofvoting rights―

Type oftransaction

Transaction
amount(thousands ofyen)

Account

Ending balance(thousandsof yen)GeneralCustodian Fees

19,599Accrued expenses

731

Trust Fees

3,351

Accrued expenses

866

27,272Current portion of
long-term debts―

1,951,665

Repayment of longterm debts―

Prepaid expenses―

Long-term prepaid
expenses―

Accrued expenses―

Repayment of
current portionof long-term
debts
Repayment oflong-term debts

Finance related
fees

14,482

Interest
expenses

12,260(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 terms and conditions have been determined based on market prices.
Fiscal Period ended January 1, 2013 (from January 1, 2013 to June 30, 2013)

1. Transactions with Parent Company and Major Unitholders

Classification

Name

Type ofbusiness% ofvoting rights

Type oftransaction
Repayment oflong-term debts(Note 2)
(Note 3)

Interested business
Shinsei Trust andof the Asset
Banking Co., Ld.
Manager

Financialbusiness―

Finance related
feesInterest
expenses

Transaction
amount(thousands ofyen)

56,00044,764

418,332

Account

Ending balance(thousandsof yen)Repayment of longterm debts

9,604,000

Long-term prepaid
expenses

52,925Prepaid expenses

90,270Long-term accrued
expenses

1,395,513

Accrued expenses

17,640Accrued expenses

140,614(Note 1) Consumption taxes are not included in transaction amounts, but are included in the balance at the end of the period.
(Note 2) For borrowing conditions, see “I. Asset Management Report - Overview of Liabilities and Expenses - 2. Borrowing
Conditions”(Note 3) 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 4) Calliope holds 609,942 units (holding ratio: 45.23%) of the issued investment units of the Company.
46

Invincible

Investment
Corporation(Notes Related to Per Unit Information)
Fiscal Period ended June 30, 2013
(from January 1 to June 30, 2013)

Fiscal Period ended December 31, 2012
(from July 1 to December 31, 2012)
Net assets per unit

24,231 yen

24,363 yen

Net income per unit

85 yen249 yen

Net income per unit is calculated by dividing Net income per unit is calculated by dividing
net income for the period by the daily weighted net income for the period by the daily weighted
average number of investment units issued and average number of investment units issued andoutstanding. Diluted net income is not stated as outstanding. Diluted net income is not stated as
there are no diluted units.
there are no diluted units.

(Note) The basis for calculating net income per unit is as follows.
Fiscal Period ended December 31,
2012 (July 1 to December 31, 2012)

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

Net income for the fiscal period
114,179(thousands of yen)

Net income not attributable to common unit holders―(thousands of yen)

335,078―

Net income attributable to common unit holders(thousands of yen)
Average number of investment units during theperiod (unit)

114,179

335,078

1,348,292

1,348,292

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

Fiscal Period ended June 30, 2013
(from January 1 to June 30, 2013)―47

Invincible

Investment
Corporation

VI. Statement of Cash Distribution

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

Fiscal Period ended June 30, 2013
(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(Distribution per Unit)(117 yen)(264 yen)

Ⅲ Retained earnings carried forward

114,118,094 yen

93,247,283 yen

Calculation method of distribution
amountIn accordance with the distribution policy set
forth in Article 17, Paragraph 1 of the
Articles of Incorporation of INV, thedistribution amount shall be the amountwhich does not exceed the amount of profits
but exceeds 90% of the distributable profit as
defined in Article 67-15 of the Special
Taxation Measures Act. However, in theevent that any tax issues arise, or if no profits
have been recorded for tax purposes due totax losses carried forward, the distribution
amount may be as reasonably determined by
INV. Pursuant to this policy, INV determinedthe distribution amount to be 157,750,164
yen, which is the sum of net income of
114,179,864 yen and reversal of surplus of
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, thedistribution amount shall be the amountwhich does not exceed the amount of profits
but exceeds 90% of the distributable profit as
defined in Article 67-15 of the Special
Taxation Measures Act. However,in theevent that any tax losses arise, or if no profits
have been recorded for tax purposes due totax losses carried forward, the distribution
amount may be as reasonably determined by
INV. Pursuant to this policy, INV
determined the distribution amount to be355,949,088 yen, which is the sum of net
income of 335,078,277 yen and reversal of
surplus of 20,870,811 yen. INV did not
distribute any amounts in excess of profit, as
set forth in Article 17, Paragaph 4 of the
Articles of Incorporation.

Note
Accompanying English financial information, comprising Balance Sheet, Statement of Income, Statement of Unitholders’ Equity, Notes to financial
statements and statement of Cash Distribution, have been translated from the Japanese financial statements of the Investment Corporation prepared inaccordance with the Act on Investment Trusts and Investment Corporations of Japan.
Under Article 130 of the Act on Investment Trusts and Investment Corporations of Japan, the Japanese financial statements for the six months ended
June 30, 2013 have been audited by Ernst & Young ShinNihon LLC, in accordance with auditing standards generally accepted in Japan. However,English translation of the Japanese language report of independent auditors is not attached herein since the accompanying English translation ofBalance Sheet, Statement of Income, Statements of Unitholders’ Equity, Notes to financial statements and Statement of Cash Distribution are
unaudited.
Regarding the English audited financial statements, please refer to the “Audited Financial Statements” on the website of Invincible Investment
Corporation: http://www.invincible-inv.co.jp/eng/cms/doc.html

48Invincible

VII. Statement of Cash Flow (Reference Information)(Unit: thousands of yen)
Fiscal Period ended
December 31, 2012
(from July 1, 2012 to
December 31, 2012)

Cash Flows from Operating Activities
Net income before taxes
Depreciation expenses
Investment unit issuance expenses
Finance related costs
Amortization of tenant leasehold and security deposits
Interest received
Interest paid
Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in accounts receivable
Decrease (increase) in deposit payments
Decrease (increase) in consumption tax receivable
Increase (decrease) in accrued consumption tax payable
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in deposits received

Investment
Corporation

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

114,784

335,683

481,000
1,230

543,7171,300

208,347(1,354)

96,816(433)(487)
763,201(383)
800,615

(33)
733

730
962

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

62,79824,902
17,493

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

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)

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

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

Beginning balance of cash and cash equivalents
Closing balance of cash and cash equivalents※1

5,210,146

3,531,910

3,531,910

4,117,815
49

Invincible

Investment
Corporation

Notes Concerning Significant Accounting Policies
By Period
Item
Cash and cash equivalents as stated inStatement of Cash Flows

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

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

Cash and cash equivalents as stated in theStatement of Cash Flows consist of cash on
hand and cash in trust, floating deposits,
deposits in trust and short-term investmentsthat are very liquid and realizable with amaturity of three months or less whenpurchased and that are subject toinsignificant risks of changes in value.

Cash and cash equivalents as stated in theStatement of Cash Flows consist of cash on
hand and cash in trust, floating deposits,
deposits in trust and short-term investmentsthat are very liquid and realizable with amaturity of three months or less whenpurchased and that are subject toinsignificant risks of changes in value.

Notes to Statement of Cash Flow
※１．Relationship between cash and cash equivalents in statement of cash flows and amounts in accompanying balance sheet(unit：thousands of yen)
PeriodItem

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

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

Cash and depoists

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

50

Invincible

Investment
Corporation

51

Invincible

Investment
Corporation

TSE Code: 8963

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

For Unitholders
Investors’ Registry
Administrator

Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo

Special Account<Unitholders of the former Tokyo Growth REIT Fund>Management Institution

Mitsubishi UFJ Trust and Banking Corporation Limited
4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo<Unitholders of the forme LCP Investment Corporation>
Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome Chiyoda-ku, Tokyo
Transfer Agent Department, Sumitomo Mitsui Trust Bank, Limited
8-4, Izumi 2-chome, Suginami-ku, Tokyo, 168-0063
Toll-free Telephone Number 0120-782-031
Administrative services are available at the main and branch offices throughout
Japan of Sumitomo Mitsui Trust Bank, Limited

Correspondence(Telephone Assistance)

52