22nd Fiscal Period Results(January 1, 2014 to June 30, 2014)
August 28, 2014

Invincible Investment Corporation

Invincible
TSE Code: 8963

http://www.invincible‐inv.co.jp/eng/

Investment
Corporation

Table of Contents
Title

Page

Title

Page
APPENDIX

2

Table of Contents

26

3

Financial Highlights ‐ 22nd Fiscal Period (1H/2014)27• Income Statement

4

Global Offe ring of Inve stme nt Units (Imple me nte d on July 17, 2014)28• Balance Sheet

5• Reduced Funding Costs & Strengthened Bank Formation

6• Media Coverage

7• 22nd Fisc al Period & 23rd Fisc al Period Results/Forec ast/Normalized

8• Track Record of Value Creation

9• Historical Unit Price

10

31
32

Ove rvie w & Pe rformance of Ne wly Acquire d 20 Hote ls

33

11• Ove rvie w of Ne wly Acquire d 20 Hote ls

12• Performanc e of 20 Limited S ervic e Hotels & Revenue Upside Potential

13• Fundame ntals Driving De mand for Hote l Se ctor

14

• Exte rnal Growth Opportunitie s from Sponsor

15• Re vision of the Inve stme nt Guide line s

16

30

34
35
36

Overview of Fortress Group• Cash Flow Statement/ Financial Statements pertaining to Distribution of Monies• Forecast for 23rd Fiscal Period (as of Aug. 27, 2014)• 22nd Fiscal Period Results‐ comparison with 21st Fiscal Period results• 22nd Fiscal Period Results ‐ comparison with initial forecast• 23rd Fiscal Period Forecast‐ comparison with 22nd Fiscal Period results• Financial Metrics• Overview of Borrowings(as of the end of Jun. 30, 2014 / Jul. 31, 2014)37• Overview of Borrowing Mortgages

17• Fortress Group’s Commitment to the Japanese Market

39• Portfolio Characteristics

18• Fortress Group’s Global Presence40• Overview of Unitholders

41• Newly Acquired 20 Hotels

20

22nd Fiscal Period Operation Highlights (1H/2014)21• Portfolio Occupancy

22• Me asure s to Incre ase Re side ntial Re nts

23• Ste ady Growth in Re side ntial De mand in Ke y Me tropolitan Are as

64

24• Growth of Portfolio Asse t Value s

67

Investment
Invincible Corporation

51• Portfolio List as of the end of Jun. 2014
(Performance by Properties, etc.)• Appraisal Values & Book Values as of the end of Jun. 2014
Disclaimer(Note) In this document, unless described otherwise, figures are rounded down to the indicated amount andpercentages are rounded to first decimal place.

2

Financial Highlights – 22nd Fiscal Period (1H/2014)
Repositioning of Portfolio
Sale of 7 Senior Housing Properties (May 22,2014)# of properties

7

Aggregate sales price

JPY 5,400 mn

Profit on sale

JPY 1,003 mn

Sales NOI yield(1)5.74%
 Senior housing has relatively limited upside due to longterm and fixed rent lease contracts
 Taking advantage of the increase in investment activity
in the senior housing market, Invincible sold each
property at an attractive cap rate, thus generating a profit
on saleAcquisition of 2 Limited Service/Extended Stay Hotels
Located in Tokyo (May 23,2014)# of properties

2

Aggregate acquisition price

JPY 5,435 mn

Aggregate appraisal value

JPY 5,490 mn

Acquisition normalized
NOI yield(2)6.01%

Hotel MyStays
Kanda, Tokyo

Hotel MyStays
Asakusa, Tokyo Focus on asset class with expanding market share in thehospitality market
 Increased demand from foreign and domestic tourists, aswell as steady demand from business customers

Acquisition of quality assets with stable
income and rent upside to promote internal
revenue growth

Refinanced Prudential LPS Loan at 2.50% interest with
Syndicate Loan (B) at 0.95% interest(4) (one‐month JPY TIBOR

Acquired 18 limited service/extended stay hotels using
funds procured via public offering and borrowings+ 0.80%)Investment
Corporation

Announced Implementation of
Global Public Offering, Refinancing andAcquisition of Properties (June 23, 2014)

Debt Refinancing (May 23,2014)


Invincible

Further strengthened bank formation by adding Mizuho
Bank and Sumitomo Mitsui Trust Bank as new lendersFurther reduced borrowing costs through debt
refinancing and strengthened bank formation

Interest‐Bearing Debt Profile Before Refinancing(as of December 31, 2013)

Balance(mn JPY)

Interest Rate

New Syndicate Loan（A）

20,350

1.65%（3）Prudential LPS Loan

11,0002.50%

Prudential LPS Loan B

9,960

1.90%

Total／Average

41,310

1.94%

Loans

Enhanced Unitholder Value throughinternal and external growth

Dividend

Net income for the 22nd Fiscal Period outperformed initial

Refinancing of Prudential LPS Loan and Partial Paydown of
Syndicate Loan (A) with New Syndicate Loan (B)Distribution per unit exceeded initial forecasts(5) by JPY 109 (23%),

Interest‐Bearing Debt Profile After Refinancing

22nd Fiscal Period(1H/2014)
Distribution per unit

(as of June 30, 2014)

Balance(mn JPY)

Interest Rate

New Syndicate Loan（B）

13,488

0.95%（4）New Syndicate Loan（A）

17,552

1.65%（3）Prudential LPS Loan B

9,960

1.90%

Total／Average

41,000

1.48%

Loans

One‐month TIBOR + 0.80% sets a new
benchmark for Invincible’s borrowing costs(Note 1) The sales NOI cap rate was calculated based on 2013 NOI, sum of the 20th and 21st period NOI attributed to 7 senior housing properties of JPY 309.8 mn divided by theaggregate sales price.
(Note 2) The acquisition normalized NOI yield has been calculated by dividing the aggregate 2014 normalized NOI forecast for the two hotels at the time of acquisition by theaggregate acquisition price. The aggregate 2014 normalized NOI forecast assumes a hypothetical acquisition of the two hotels by Invincible immediately prior to thebeginning of 1H/2014, and is based on (i) historical figures provided by FHM for the two properties from January through March 2014 (as adjusted to reflect an expectedchange in trust fees, management fees and insurance expenses upon the acquisition by Invincible), (ii) Invincible’s forecasted figures for the remaining period (figures thatare consistent with the assumptions used to calculate the forecast) and (iii) treating initial property‐related taxes for the two hotels as if they were expensed and not
capitalized.

forecasts(5) by JPY 170 million (23%), increasing to JPY 901 million
reaching JPY 573
InitialForecast(5)

JPY 464

Revision of
Forecast

Results(May 21, 2014)

JPY 550

JPY 573

Achieved dividend that exceeds forecast as of May 21
without reversal of Surplus or excess profit distribution

Forecast distribution per unit for the 23rd Fiscal Period:
As Initial Forecast(5) JPY 600, outperforming the 22nd Fiscal Periodby JPY 27 (4.7%)
Forecasts expect no reversal of Surplus or excess profit distribution

Stabilized earnings per unit for 2014(6) willrise JPY 12 (1.0%) from JPY 1,216 to JPY 1,228(Note 3) 1 month TIBOR + 1.50%. As for the first interest calculation period, two‐month TIBOR + 1.50%.
(Note 4) 1 month TIBOR + 0.80%. As for the first interest calculation period, two‐month JPY TIBOR + 0.80%.
（Note 5） Initial forecast for the 22nd fiscal period (1H/2014) announced in the financial summary dated February 26, 2014.
（Note 6） Total of the stabilized earnings per unit of the 22nd fiscal period (1H/2014) and 23rd fiscal period (2H/2014)
announced in the press release dated June 23, 2014. Stabilized earnings per unit refer to earnings per unit calculated
by first assuming the financial results for the fiscal period ending December 2014 and then eliminating the effects ofsuch factors as one‐time expenses related to public offering, acquisition of properties associated with it andrefinancing, and treating all assets acquired during the 22nd fiscal period as if the acquisitions had occurred prior to
the start of the fiscal period ending June 2014 (assumed that property taxes and city planning taxes are expensed
from the beginning of the fiscal period ending June 2014 ).

3

Global Offering of Investment Units (Implemented on July 17, 2014)■ Repositioning of Portfolio
Before Follow‐On Offering
Number of properties

Properties to be Acquired

After Follow‐On Offering

73

+

18

=

91

Acquisition price

JPY 77.9bn+

JPY 39.9bn=

JPY 117.9bn

Appraisal value(1)JPY 77.2bn+

JPY 40.3bn=

JPY 117.6bn

NOI Yield

5.16%(2)+

6.45%(2)=

5.59%(2)NOI Yield after depreciation

3.74%

+

4.54%

=

4.02%

■ Ratio of hotel properties
in portfolio increased(Based on acquisition price)

Hotel

Parking lots

RetailFacilities

Parking lots
Hotel
RetailFacilities

Residential
Office■ Debt Refinancing
Loans

Office■ Offering Overview
Balance (mn JPY)

Interest Rate

New Syndicate Loan (B)13,488

0.95%(3)New Syndicate Loan (A)17,552

1.65%(4)Prudential LPS Loan B

9,960

1.90%

Total／Average Interest Rate

41,000

1.48%

Offering Size(incl. Overallotment)

Number of Units(incl. Overallotment)

Balance (mn JPY)

Interest Rate

New Syndicate Loan (C)57,300

0.98%(3)Prudential LPS Loan B

9,960

1.90%

Total／Average Interest Rate

67,2601.09%(As of Jul. 31, 2014)(Note 1) For existing properties, appraisal value as of June 30, 2014; and for 18 hotel properties, appraisal value as of April 30, 2014
(Note 2) NOI yield is calculated by dividing the sum of the historical figures of 22nd fiscal period and forecasted figures of 23rd fiscal period by
the aggregate acquisition price. Although INV actually recognizes GOP without deduction of hotel expenses for one‐month after theacquisition of hotels, NOI yield is calculated assuming the hotel expenses are incurred.

Investment
Invincible Corporation

 Approx. JPY 26.4 bn
 Total: 1,165,658
 Newly Issued Units: 1,095,507
of which, Domestic：582,829 Overseas：512,678

 Secondary Units: 70,151(As of Jun. 30, 2014)

Loans

Residential

Hotel

Offering Format

 Domestic Public Offering Overseas Offering :144A/Regulation S

Domestic/International
Split

 50% : 50%

Lock‐up Agreements

 90 days for the Issuer
 180 days for the sponsor (Fortress affiliates)

Joint Global Coordinators

 SMBC Nikko, Citigroup(Note 3) 1 month TIBOR+0.80%. As for the first interest calculation period, 2 months TIBOR+0.80%(Note 4) 1 month TIBOR+1.50%. As for the first interest calculation period, 2 months TIBOR+1.50%(Note 5) The amount is calculated by multiplying 1,165,658 units, the number of investment units newly issued and the investment units offered(including overallotment secondary offering) by the issue price of JPY 22,688 and differ from the actual amount of proceeds.

4Reduced Funding Costs& Strengthened Bank Formation

Invincible

Investment
Corporation

Continued effort to reduce financing costs with support from leading Japanese and global banks
Interest Rate(1)Sources & Uses of Cash(unit: bn JPY)
Use of proceeds2012 2H2013 1H

2013 2H

July 31, 20142014 1H

DSCR(2)

2012 2H2013 1H

2013 2H2014 1H

Sumitomo Mitsui
Trust Bank, Ltd.
7.3% (JPY 3,000 mn)

New Syndicate
Loan (C)57.3

Repayment of existing
borrowings

31.0

Public offering

23.9

Costs related to debt andpublic offering, etc.

1.3

Cash on hand andreserves, etc.

7.3

Total

81.2

Total

81.2

(As of July 31, 2014)
Resona Bank, Limited.
3.1% (JPY 2,100mn)

Sumitomo Mitsui
Banking Corporation
20.1% (JPY8,248 mn)

Aozora Bank, Ltd.
2.8%
(JPY 1,165 mn)

Citibank Japan Ltd.
4.2% (JPY 1,726 mn)

41.4

Loan to Value (LTV)(As of June 30, 2014)

Shinsei Trust &Banking Co., Ltd.
4.2%
(JPY 1,726 mn)

New property acquisition
price and costs related toacquisition

2014 2H（Forecast）

Bank Formation

Prudential Mortgage
Asset Holdings 1 Japan.
24.3% (JPY 9,960 mn)

Financing

The Bank ofTokyo‐Mitsubishi
UFJ, Ltd.
20.1% (JPY 8,248 mn)
Mizuho Bank, Ltd.
8.5% (JPY 3,500 mn)

Shinsei Bank, Limited
8.4% (JPY 3,453 mn)

Prudential Mortgage
Asset Holdings 1 Japan.
14.8%(JPY 9,960mn)

Sumitomo Mitsui
Trust Bank, Ltd.
7.4% (JPY 5,000mn)

Shinsei Bank, Limited
9.7% (JPY 6,500mn)

Citibank Japan Ltd.
9.7%
(JPY 6,500mn)(unit: bn JPY)

After
Implementation
End of Dec. 2013 End of Jun. 2014of
Public Offeringand Borrowing

Sumitomo Mitsui
Banking Corporation
18.4% (JPY 12,400 mn)

The Bank ofTokyo‐Mitsubishi
UFJ, Ltd.
18.4%(JPY 12,400mn)
Mizuho Bank, Ltd.
18.4%
(JPY 12,400mn)

Outstanding interest‐
bearing debt balance
Total assets

41.3

41.0

67.2

79.1

79.2

128.1

LTV based on total assets

52.2%

51.7%

52.5%

(Note 1) Average interest rate is calculated by multiplying outstanding balance of debt as of the end of the fiscal period for eachindividual borrowing with the applicable interest rate as of the end of the fiscal period, and dividing the aggregate amountarrived by aggregate outstanding balance of debt.
(Note 2) DSCR is calculated as (Operating Profits+Depreciation) divided by (Scheduled Amortization+Interest Expense).
(Note 3) The amount of Total Assets after implementation of the Public Offering and Borrowing is calculated by adding the total
assets as of the end of June 2014 with the acquisition price and expenses associated with the 18 properties acquired on July17, 2014, and the excess cash reserves from the Public Offering, with no other significant changes.

5Media Coverage(This is a translation: Original report is in Japanese)

J-REIT of the Day: Invincible Investment Corporation Gains
Momentum Together with Fortress
The subscription period for Invincible Investment Corporation’s public offering ended on
July 11. The details of the issuance are as indicated below.
Market/Securities Code: TSE/8963
Offering: 1,040,000 units (¥23,595,520,000)
Secondary offering: 70,151 units (¥1,591,585,888)
Over allotment: 55,507 units (¥1,259,342,816)
Offering price: ¥22,688 (discount rate: 2.50%)
Joint Global Coordinators: SMBC Nikko Securities and Citigroup Global Markets Japan
Indicative price: discount rate of between 2.5% and 5.0% (at 0.5% intervals)
Total units issued and outstanding: 2,613,179 units (1,573,179 units prior to offering)Market cap at time of resolution: ¥64,258,071,610 (including the offering)
It merged with LCP Investment Corporation and changed its name to “Invincible
Investment Corporation (IIC)” in February 2010. It started anew as a diversified REIT thatinvests in various properties, but with a focus on residential assets. In July 2011, a private
share placement to Calliope GK, an affiliate of Fortress Investment Group LLC (Fortress).
In addition, along with the change of the largest stockholder of its asset managementcompany, Fortress became its sponsor. The sponsor Fortress has a portfolio of approximately
62.5 billion dollars globally as of the end of March 2014 and the size of its assets undermanagement in Japan is over 300 billion yen, holding more than 30 hotels and residential
properties, including projects currently under development, which total over 100 billion yen
on an acquisition price basis.
With Fortress as its sponsor, IIC has drawn strength from “Fortress’ network within andoutside of Japan, and the relationship with banks” and aimed to strengthen the bankformation to center on megabanks while progressing restructuring of its portfolio.
Refinancing of past borrowings lowered its average interest from 3.66% to 1.95%. Interest
rate on borrowings reduced to 1.09% after refinancing associated with the acquisition ofproperties. With the acquisition of 2 properties – Hotel MyStays Kanda and Hotel MyStays
Asakusa – for about 5.4 billion yen and sale of 7 elderly care facilities for about 5.4 billion
yen in May 2014, it made an upward revision to the distribution per unit for the fiscal period
ending June 2014 from 464 yen to 550 yen.
IIC said “it has shown clear growth strategies including increasing investments to hotels”
and it was viewed positively by the market and the investment unit price, which was 18,000
yen as of May 21 rose about 40% up until the board decided the public offering.

IIC announced the acquisition of 18 limited service hotels (planned acquisition price: 39.9
billion yen; appraisal value: 40.3 billion yen; NOI yield: 6.30%) in line with its growth strategy
and changed its investment guidelines in order to add hotels to its core assets. Many
institutional investors voiced positive notes including the one that said “it is based on thefavorable market environment surrounding.” The average NOI yield of the acquired properties
is above that of the existing portfolio which is 5.15% and a person involved says “the fact that it
was able to acquire properties with fairly stable yield was also recognized.” As Invincible
Investment Corporation says “after Fortress acquired the properties, it had raised theoccupancy rates through measures that included conducting ongoing renovations and improving
operations,” the average guest room occupancy rates, which were 84.7% in 2013 rose to 89.2%
during the period from the beginning of 2014 to the end of April IIC that “the average daily
room rate (ADR) is 6,673 yen, we will aim to increase the room rate.”
IIC has concluded a memorandum regarding preferential negotiation rights to acquire 26
limited service hotels in May 2014 and 18 properties acquired this time are included in thetarget properties of the memorandum. It has once again concluded a memorandum concurrently
with the resolution and additionally acquired preferential negotiation rights for 22 properties.
The person involved says that “it concluded the memorandum to dispel concern the sponsor is afund and such commitment was favorably received by the investors.” As an investment trust
indicates that “things have changed after Fortress joined as a sponsor. We had high interest in
the REIT but we could not buy it due to liquidity issues,” there are moves towards aggressively
incorporating the REIT into the investment universe. A domestic investment trust says that“further decease in debt cost through refinancing is expected and also the pipeline is rich” andthere are also opinions such as another institutional investor says “it is a REIT at which
everything is starting to work well” and a person involved said that “there is no downside.”Three teams visited around 50 firms each in Japan and overseas between June 25 and July 4.
They also held large meetings twice during that period. It reduced domestic retail investors’
portion from 40% to 35%, shifting the 5% to overseas institutional investors. As a result, 50% of
the shares offered was allocated to overseas investors and remaining 15% was allocated todomestic institutional investors. A person involved in the deal said domestic retail book waseight-times oversubscribed , while domestic institutional investors’ book was more than twice
oversubscribed and overseas investors’ seven times. The overall book was seven times
oversubscribed. Another person involved said that participants include overseas real estate
specialists, long-only investors, domestic J-REIT specialized funds and investor classes weresimilar to those of J-REITs with biggest market capitalization.
After the pricing on July 9, the investment unit price rose by 16.5% over 2 business days, which
an institutional investor pointed out that “investors whose allocation wasn’t enough arepurchasing.” There are also voices heard such as a person involved says “with the existence ofthe memorandum, the total market capitalization of 100 billion yen is on the verge. IIC might
have become a brand that in which investors didn’t want to miss out.” IIC will utilize thesuccessful capital increase as a step to the next offering, and work to promptly achieve an asset
size of 200 billion yen.
(Miho Ozawa DealWatch / Thomson Reuters）※All and any part of this article may not be reproduced or redistributed without the express written consent of Deal Watch/Thomson
Reuters.

Investment
Invincible Corporation

6

22nd Fiscal Period & 23rd Fiscal Period Results/Forecast/Normalized
NOI from 18 hotels(1/1–6/30)

Depreciation
 2 hotels (1/1–5/22): (28)mn
 18 hotels (1/1‐6/30): (380)mnProperty tax for 2 hotels

GOP from 18 hotels (7/1‐7/16): +100mn
GOP (Due to a 1 month accounting delay on
the hotel operating expenses) : (206)mn
Property Tax: (84)mn



GOP from 2 hotels (1/1–5/22): +124mn
GOP (Due to a 1 month accounting delay on
the hotel operating expenses): (14)mn(mn JPY)

21st period

22nd period

23rd period

2H 2013

1H 2014

2H 2014

NOI (Existing 71 prope rtie s)
NOI (Bon Se jour)
NOI (Kanda + Asakusa)
NOI (18 hote ls)

ActualActualBonsejour

20 Hotels

Refinance

Estimated

Normalized

20 Hotels

Forecast

1,851

1,846

‐

‐

‐

1,846

1,840

‐

‐

155

115

(115)

‐

‐

‐

‐

‐

‐

‐

‐

57

‐

110

‐

167

168

(8)

‐

160

‐

‐

‐

1,241

‐

1,241

1,535

(191)

‐

1,343

2,018

(115)

1,352

‐

3,255

3,544

(199)

‐

3,344

‐

1,003

(1,003)

‐

‐

‐

‐

‐

‐

‐

De pre ciation e xpe nse s

(527)

(527)

18

(408)

‐

(917)

(881)

(33)

‐

(914)

Asse t manage me nt fe e s

(125)

(125)

‐

‐

‐

(125)

(125)

‐

‐

(125)

Othe r ope rating e xpe nse s

(88)

(134)

‐

‐

‐

(134)

(107)

(36)

‐

(143)

1,265

2,234

(1,100)

944

‐

2,078

2,429

(269)

‐

2,160

Gain on sale of prope rtie s (ne t)

Operating income
Non‐operating revenues

355

1

‐

‐

‐

1

‐

‐

‐

‐

Offe ring / Finance re late d costs

(579)

(957)

‐

‐

849

(107)

(457)

‐

348

(109)

Inte re st e xpe nse s

(672)

(376)

‐

‐

7

(369)

(370)

‐

(5)

(375)

Othe r non‐ope rating e xpe nse s

(16)

‐

‐

‐

‐

‐

‐

‐

‐

‐

353

902

(1,100)

944

856

1,603

1,602

(269)

342

1,675

Ordinary income
Extraordinary income / loss
Net income
Investment units outstanding
Earnings per unit (JPY)

‐

‐

‐

‐

‐

‐

‐

‐

‐

‐

352

901

(1,100)

944

856

1,602

1,601

(269)

342

1,675

1,573,179

1,573,179‐‐‐

2,668,686

2,668,686‐‐

2,668,686

259

573

600

600

Reversal of retained earnings per unit (JPY)‐‐

Excess profit distribution per unit (JPY)

‐

‐

573

600

237

DPU (JPY)



1,840

2,006

NOI totalNormalized

Refinance

One‐time costs for the refinancing as of May 23, 2014: +488mn
One‐time Offering and finance related costs as of Jul. 17, 2014 :+415mnOthersInvincible

Investment
Corporation

Non‐deductible
consumption taxes
Difference of interest
between new and old debts





628

Depreciation of 18 hotels(7/1‐7/16)

One‐time upfront amortization cost for Syndicate Loan A&B:
176mn
One‐time closing cost for Syndicate Loan (C): 17mn
Equity related costs for new investment units issuance as ofJul. 17, 2014: 157mn

7

Invincible

Track Record of Value Creation

Investment
Corporation

Recapitalization

Debt Restructuring

Portfolio Restructuring

External Growth

Further Growth

STEP 1

STEP 2

STEP 3

STEP 4

Medium‐term
Goals

May
2014

June / July
2014

MarketCapitalization:
Over JPY
100 billion

December
2013

July
2011~

Asset size:
Over JPY
200 billion
 Acquisition of 2 hotels
 MOU to potentially acquire 26
additional hotels(September 2012)

External  Acquisition of 24
Growth residential properties
Internal  Cost reduction and
Growth occupancy increase Commenced rent increaseprogram for residential assets(July 2011) Capital infusion from
Finance Fortress Group(1) (Third‐
party allotments andrefinance)

 Early repayment of Shinsei Trust Loan
through debt from mega banks, etc.
 Reduced average interest rate from
3.66% to 1.95% and strengthened thebank formation
 Third‐party allotment of new units
mainly to Fortress GroupEPU

 Acquisition of 18 hotels
 Updated MOU to potentiallyacquire 22 additional hotels
 Expected to capture strong
demand for hotel accommodations
 Increased rents and reduced net
leasing costs for residential
properties

 Continued to lower interest rates
further by Refinancing
 Further strengthend bankformation

 Success of Global offering Further lowered weighted averageinterest rate to 1.09%
 Continued support from all 3
mega banks, etc.

DPU

Normalized EPU

MarketCapitalization(mn JPY)

2011 2H2012 1H

2012 2H2013 1H

2013 2H2014 1H

8,602

8,602

8,305

18,45830,56638,1332014 2H（Forecast）
Aug. 27, 2014
78,860(Note 1) For details on the Fortress Group, please refer to page 16.
(Note 2) EPU figures calculated using the number of units outstanding at the end of each period.

8Historical Unit Price

Volume(mn Units)

21st

20th

22nd
June 23, 2014
Announced acquisition of
18 hotels , global public
offering, refinancing

Unit Price (JPY)Tokyo Stock Exchange REIT Index
Volume (Units)

Unit Price(JPY)

May 21, 2014
Announced acquisition of 2 hotels and refinancing
December 6, 2013
Announced refinancing of Shinsei Trust
Loan, equity financing via third‐party
allotment

Jan.4th
2013

Jun.
2013

Dec.
2013

Jun. Jul.
2014 2014(Note) Unit prices indicated the closing price on the TSE market.

Investment
Invincible Corporation

9

Overview & Performance of Newly Acquired 20 Hotels

Hotel MyStays
Sakaisuji‐Honmachi

Investment
Invincible Corporation

Hotel MyStays Maihama

Flexstay Inn Iidabashi

Hotel MyStays
Fukuoka‐Tenjin‐Minami

10Hotel type

 Limited service/extended stay

Number of properties

 20

Average room occupancy rate (1) 88.9%ADR(1)

 JPY 6,931

RevPAR(1) JPY 6,163

Property Name
Hotel MyStays Kanda
Hotel MyStays Asakusa
Hotel MyStays Kyoto‐Shijo
MyStays Shin‐Urayasu
Conference Center

Location

No.
Rooms

Hotel
Vista
PremioDojimaAcquisition
Cost(2)

Appraisal
Value(2)(mn JPY)(mn JPY)

NOI
yield(1)

Tokyo

126

2,851

2,880

5.54%

Tokyo

160

2,584

2,610

6.37%

Kyoto Prefecture

224

6,024

6,110

6.16%

Chiba Prefecture

175

4,930

4,980

6.45%

90

4,870

4,920

6.13%

Hotel Vista Premio Dojima

Osaka Prefecture

141

3,845

3,900

6.58%

Hotel MyStays Nagoya‐Sakae

Aichi Prefecture

270

2,958

3,000

6.37%

Hotel MyStays Sakaisuji‐
HonmachiOsaka Prefecture

190

2,514

2,530

6.69%

Hotel MyStays Yokohama

Kanagawa Prefecture

190

2,119

2,150

7.95%

Hotel MyStays Nippori

Tokyo

93

1,898

1,910

5.83%

Fukuoka Prefecture

177

1,570

1,580

7.28%

Flexstay Inn Iidabashi

Tokyo

59

1,381

1,390

5.66%

Hotel MyStays Ueno Inaricho

Tokyo

72

1,331

1,340

5.57%

Flexstay Inn Shinagawa

Tokyo

55

1,242

1,250

5.90%

Flexstay Inn Tokiwadai

Tokyo

129

1,242

1,250

7.34%

Flexstay Inn Sugamo

Tokyo

104

1,192

1,200

6.75%

Hotel MyStays Otemae

Osaka Prefecture

110

1,192

1,200

7.90%

Flexstay Inn Kiyosumi Shirakawa

Tokyo

55

749

754

6.33%

Flexstay Inn Nakanobu P1

Tokyo

39

589

593

5.92%

Flexstay Inn Nakanobu P2

Tokyo

22

283

285

6.06%

2,481

45,37345,832

6.40%(12 properties)

1,877

34,84635,210

6.40%

Flexstay Inn (7 properties)

463

6,681

6,722

6.33%

Vista

141

3,845

3,900

6.58%

MyStays(1 property)

Kita

Hotel MyStays
OtemaeHotel MyStays Maihama

Total

Hotel MyStays
Sakaisuji‐Honmachi

Chuo

Chiba Prefecture

Hotel MyStays Fukuoka‐Tenjin‐
Minami

Investment
Corporation

Invincible

Overview of Newly Acquired 20 Hotels

Hotel MyStays Nagoya‐Sakae
Hotel MyStays Kyoto‐Shijo

Hotel MyStays
Yokohama

Hotel MyStays
FukuokaTenjin‐Minami

Hotel MyStays
Ueno

Hotel MyStays Nippori
Flexstay Inn Tokiwadai

Chiba

ItabashiFlexstay Inn
Arakawa
Sugamo Toshima Taito
Flexstay Inn
Shinjuku
SumidaIidabashi
ChiyodaKoto

Hotel MyStays
Kanda(5)Hotel MyStays
Asakusa(5)Flexstay Inn
Kiyosumi‐
Shirakawa
Urayasu

ShinagawaFlexstay Inn
Shinagawa

MyStaysShin‐Urayasu
Conference Center
Hotel MyStays
MaihamaFlexstay Inn Nakanobu P1
Flexstay Inn Nakanobu P2(Note 1) Calculated based on the actual results from July 1, 2013 to June 30, 2014.
・ “Room Occupancy Rate” is calculated using the following formula: room occupancy rate = total number of rooms occupied during therelevant period ÷ (aggregate number of rooms during the relevant period x number of business days during target period)・ “ADR,” or Average Daily Rate, is the value of the total room sales for a certain period (excluding service fees) divided by the total
number of sold rooms for the same period.
・ “RevPar”, or Revenues Per Available Room, is calculated by dividing the total sales for a certain period by the aggregate number ofrooms for the same period (rooms x number of days), and is the same figure as that of a product of room occupancy rate multiplied with
ADR.
・ “NOI yield” is calculated by dividing actual NOI for the concerned period by the aggregate acquisition price.

11

Performance of 20 Limited Service Hotels& Revenue Upside Potential

Invincible

Investment
Corporation

 RevPAR at 20 hotels increased +18.5% YoY (Jan. – Jul. 2014)

 Diversified customers mix including strong corporate base

 GOP growth accelerating at 20 Hotels +9.8% vs. forecast (May. – Jul. 2014)

 Foreign customers increased due to expanded marketing Balance mix of Daily/Weekly/Monthly visitors

 Lease structure captures entire rental growth

Actual Occupancy rate, ADR and RevPAR(1)Actual Overseas Sales (4) and Share of Total(Comparison of actual Jan.‐Jul. figures each year)

Occupancy: +7.0% YoY
ADR: +9.2% YoY
RevPAR: +18.5% YoY（JPY）(Comparison of actual Jan.‐Jul. figures each year)+148.7% YoY+4.3% from the forecast

Occupancy Rate
（mn JPY）

10.1%
Overseas Sales
Overseas Sales Share
3.5%

326

93
Jan.‐Jul. 2012

Jan.‐Jul. 2013

Actual GOP and GOP Margin (2)(Comparison of actual Jan.‐Jul. figures
each year)

Jan.‐Jul. 2014

Jan.‐Jul. 2013

Comparison of Actual GOP
with Forecast (3)Actual Share of Foreign Visitors to Japan by Region(6)(Jan.‐Jun. 2014)(Actual/Forecast for May‐Jul. 2014)（mn JPY）

Non‐Asia
21.0%

Others14.0%（mn JPY）

GOP
GOP Margin

52.1%

Up 22.8% YoY
Up 4.2% from forecast

Up 9.8% fromforecast

Actual
1,322

Actual
1,484

Jan.‐Jul. 2012 Jan.‐Jul. 2013

Actual
1,822 Forecast
1,748

Actual
795

Jan.‐Jul. 2014

May‐Jul. 2014

Mix of Daily/Weekly/Month
Monthly
Visitors(4)Rest of Asia
7.6%

(Jan.‐Jul. 2014)

WeeklyDaily

Total JPY7,530ths
Up 26.4% fromprevious year

Thailand
5.0%
Hong Kong
6.8%

Forecast
723

Taiwan
22.2%

Asia
79.0%

China
17.1%

Source： JNTO

Lease contracts to capture rent upside

Corporate Contract Rate
(Jan.‐Jul. 2014)

Rep. of Korea
20.3%

U.S.A.
7.0%

49.2%
45.0%

Jan.‐Jul. 2014

Corporate
Contracts

Non‐Corporate
Contracts(Note 1) As to “ADR” and “RevPAR”, please refer to page 11.
(Note 2) “GOP”, Gross Operating Profit, is the amount equivalent to gross revenue of hotels minus various expenses related to hotel operations (staff
cost, cost of materials and utilities, advertisement cost, and other expenses) and management fees for operators, and is the amount which
INV recognizes as rental revenues of hotels. Further, “GOP Margin” is calculated by dividing GOP by gross revenue.

Fixed rent to be determined for individual hotel

In principle, MyStays Hotel Management Co., Ltd. (7) receives 2% ofsales and 4‐6% of GOP as management fees and 6% of sales on directbookings through its corporate marketing and via its own website as
customer transfer fee.

(Note 3) Calculated based on actual results from May 1, 2014 to July 31, 2014.
(Note 4) The breakdown of Daily/Weekly/Monthly visitors is based on gross revenue.
Daily/Weekly/Monthly are defined as Daily=1~6, Weekly=7~29, Monthly=over 30 night stays basis. Hotel Vista Premio Dojima is excluded
from the calculation due to lack of Daily/Weekly Monthly data.
(Note 5) Actual overseas sales are gross revenue via overseas online agents.
(Note 6) Figures for Jan.‐May. 2014 are provisional figures, and figures for Jun.‐Jul. 2014 are estimated figures.
(Note 7) For the details, please refer to page 18. Further, Hotel Vista Premio Dojima is operated by a third‐party operator.

12

Invincible

Fundamentals Driving Demand for Hotel Sector

Investment
Corporation

 Business hotel occupancy rates at all time highs
 Airport capacity expansion
 Both domestic and inbound tourism increasing New hotel supply on the decline Growth of Low Cost Carriers (LCCs)
 Government efforts to increase foreign visitors

Business Hotel Occupancy by Region (12‐month moving average)

Hotel New Construction Starts

Tokyo

2010/1

Number of new construction starts
Floor space of new construction starts

Osaka

2011/1

2012/1

2014/1

2013/1

Source: Japan Tourism Agency (1)Airport Capacity Expansion
HanedaDomestic

FY2010/3

Japan(Domestic)

FY2011/3

FY2012/3

FY2013/3

FY2014/3

Source: MLITFY2015/3(Forecast)

Number of Overnight Stays
Japanese
GuestsForeign
Guests

2008

2009

2001

2004

2007

2010

2013

+48.5%

HanedaInternational

503,000

FY2009/3

1998

LCC Market Share in Japan (based on number of seats)
747,000

Narita1995

Source: Ministry of Land, Infrastructure and Transport and Tourism (MLIT)

2010

2007

International

2008

2009

2010

2011

Japan Inbound Visitors

2011

2012

2013

2012

2013

Jun.‐Apr.2014

Source: JNTO, Japan Tourism Agency

2010

2011

Government
announced target
promoting Japan as a
tourism nation2012

Source: MLIT
Source: CAPA – Centre for Aviation、OAG、MLIT(Note 1) Hotel occupancy data for Apr. – Jun. 2010 and later include data on accommodation facilities with fewer than 10 employees.

2013

2020

13

Investment

Further External Growth Opportunities from Sponsor Invincible Corporation
 Sponsor has a strong track record of supporting Invincible
by providing accretive growth opportunities contributing
to an increase in profits and distributions
Location

Number of
Guest Rooms

Hotel MyStays Kameido P1

Tokyo

265

Hotel MyStays Kameido P2

Tokyo

175

Flexstay Inn Higashi‐Jujo

Tokyo

88

Flexstay Inn Shinsaibashi

Osaka Prefecture

54

Hotel Nets Hakodate

Hokkaido

202

Flexstay Inn Shirogane

Tokyo

84

Flexstay Inn Ekoda

Tokyo

210

Hotel MyStays Utsunomiya

Tochigi Prefecture

116

Hotel MyStays Akasaka(1)

Tokyo

319

Flexstay Inn Kawasakiogawacho

Kanagawa Prefecture

62

Hotel MyStays Ueno Iriyaguchi

Tokyo

97

Flexstay Inn Kawasakikaizuka

Kanagawa Prefecture

64

Toko Gotanda

Tokyo

338

Hotel MyStays Haneda(1)

Tokyo

174

Hotel MyStays Kanazawa(1)Ishikawa Prefecture244

Hotel MyStays Yokohama Kannai(1) Kanagawa Prefecture

166

Comfort Hotel Toyama Ekimae
Super Hotel Shinbashi
Karasumoriguchi

Toyama Prefecture

150

Tokyo

74

Best Western Hotel Fino Oita

Oita Prefecture

145

Hokkaido

242

Takamatsu Tokyu Inn

Kanagawa Prefecture

191

Hotel Vista Shimizu

Shizuoka Prefecture

152
3,612

Name

Best Western Hotel Fino Sapporo

Total

 MOU provides a potential pipeline of 22 hotel
properties from Sponsor‐related entities

Hotel MyStays Kameido P2

Hotel MyStays Kameido P1

Hotel MyStays Akasaka (Rendering)

Hotel MyStays Haneda (Tentative Name) (Rendering)(Note 1) Hotel MyStays Yokohama Kannai, Hotel MyStays Haneda and Hotel MyStays Kanazawa are under construction. Hotel MyStays Akasaka is planned to be redeveloped.
(Note 2) The above represents the properties covered by amended MOU. Invincible may elect to acquire only a selected number from the above or none at all.
(Note 3) Rendering is a conceptual drawing based on design drawing and there is a potential difference with actual building.

14

Revision of Investment Guidelines
Revision of Portfolio Construction Policy

Revision of Distribution Policy

In order to construct a portfolio focused on both improved stability andfuture growth, hotels were added to core assets investment target

Decided to consider making distributions in excess of profits in order tostabilize distributions and be more reflective of the stabilized earnings incases where significant expenses are to be recorded in connection with, among
other things, the acquisition of assets or the raising of capital, and leading to asignificant decrease in earnings.

■ Allocation Ratio by Property TypeCore Assets
50% or more
Residential
Properties &HotelsINV will consider making excess profit distribution in the following events, andwill, in principle, not make excess profit distribution in other circumstances.

Sub Assets
Less than50％
Properties ofother types

To satisfy the requirements under the Special Taxation Measures Act, in casethe distributable amount is less than 90% of distributable income.

To stabilize distributions in cases where significant expenses are to berecorded in connection with, among other things, the acquisition of assets or
the raising of capital, and the distribution amount is expected to decreasesignificantly.

■ Allocation Ratio by Geography
Allocation Ratio
Area

Specific Area(based on acquisition
value)

Greater Tokyo Area

Tokyo, Kanagawa, Chiba andSaitama Prefectures

65% or above(or 70% or more excluding hotels)

Major Regional
CitiesAreas surrounding the Greater
Tokyo area and major cities
nationwide including ordinancedesignated cities and theirsurrounding areas

Less than 35%(or less than 30% excluding
hotels)Investment
Invincible Corporation

15

Overview of Fortress Group

Investment
Invincible Corporation

16

Overview of Fortress
Fortress Investment Group LLC (“FIG”; together with its affiliates, “Fortress”) is a global alternative
investment manager with extensive experience in Japanese residential and hospitality assets

Fortress is a highly diversified global alternative investment manager with approximately $63.8bn in assets under management as ofJune 30, 2014–

FIG is listed on NYSE with an approx. $3.2bn equity market capitalization as of June 30, 2014–

Extensive experience investing in real estate through private funds, REITs and other publicly listed real estate companies,
including Brookdale Senior Living Inc. (U.S.), Eurocastle Investment Ltd. (Europe), Newcastle Investment Corp. (U.S.), and New
Residential Investment Corp. (U.S.)

Fortress manages two dedicated Japanese real estate funds: Fortress Japan Opportunity Funds I and II–Over JPY 200bn in committed equity–

Wide spectrum of Japanese real estate investments, including residences, hotels, office buildings and retail facilities–

Fortress`s Japan‐based portfolio is valued at over JPY 300bn and includes 31 additional hotels including 3 hotels underconstruction and residential properties worth over JPY 100bn after the sale of the 18 hotels–

Strong track record of post‐acquisition capital expenditures and operational enhancements such as strategic renovations andrebranding–

Ownership of MyStays Hotel Management Co., Ltd. by Fortress‐managed funds provides competitive advantage in sourcing andmanaging hospitality assets(As of March 31, 2014)

Investment
Invincible Corporation

17

MyStays Hotel Management’s Track Record(1/2)
Subject hotels are managed by an experienced operator(1) owned by Fortress‐managed funds:
MyStays Hotel Management
Company Overview
 Company Name: MyStays Hotel Management Co., Ltd.
(formerly Flexstay Hotel Management Co., Ltd.) Date of Establishment: July 8, 1999
 Acquired by Fortress in June 2012
 Representative: President and CEO Atsuki Asano Hotel operation and management under the following brands:
Hotel MyStays, Flexstay Inn, Monthly ResiStays
 Employees: 560 (as of April 30, 2014, including part‐timeworkers)
 Capital: JPY 100mn(2) Properties under management: 47 properties (5,768 rooms), of
which 11 properties are owned by Fortress(3)Asset Management Initiatives
Competitive Advantages
 Extensive know‐how in selling rooms on a daily, weekly, andmonthly basis, thereby achieving more stable occupancies andhigher profit margins
 A corporate client base of over 2,200 corporations
Rebranding Reduced number of brands to reduce customer confusion andincrease focus
 Website reconstructed to provide easier navigation and provide
a more modern appearance Enhanced web marketing to stimulate untapped demand
including Free Independent Travelers (FITs)
Renovations

 Operational insight provides ability to better assess opportunities
in hotel market

 Since 2011, FHM renovated 17 hotels (2,154 rooms)
 Strategic renovations increased ADR for renovated hotels
Operational Improvements
 Various revenue management methods implemented, including
hiring a revenue manager to analyze market trends, in order tomaximize revenue
 Focus on employee training to improve efficiency and reduceturnoverCost Control(Note 1)

Hotel Vista Premio Dojima is managed by another operator. Several of hotels under
MOU are not managed by Mystays Hotel Management(Note 2) As of April 30, 2014
(Note 3) As of July 17, 2014

Investment
Invincible Corporation

 Promoting efficient and low cost operations via effective
procurement strategies
18

MyStays Hotel Management’s Track Record(2/2)

Investment
Invincible Corporation

19

22nd Fiscal Period Operation Highlights (1H/2014)

Investment
Invincible Corporation

20

Portfolio Occupancy
Average occupancy rates of office and retail facilities increased to 97.1% from 96.3% in the previous period.
The average occupancy for the portfolio improved to 95.8%, while occupancy for residential properties remained stable.

Period averageoccupancy rate

17th Fiscal Period(2H/2011)

18th Fiscal Period(1H/2012)

19th Fiscal Period(2H/2012)

20th Fiscal Period(1H/2013)

Total 93.2%

Total 94.2%

Total 95.3%

Total 95.3%

Total 95.7%

21st Fiscal Period(2H/2013)

Residential 92.9%

Residential 94.2%

Residential 95.2%

Residential 95.6%

Residential 95.5%

Office/Retail Facilities

Office/Retail Facilities

Office/Retail Facilities

Office/Retail Facilities

Office/Retail Facilities

93.8%

94.4%

95.7%

94.6%

96.3%

22nd Fiscal Period(1H/2014)
Total 95.8%
Residential 95.3%
Office/Retail Facilities

97.1%

Monthly occupancy rate

1H/2014
Total
Residential
Office/Retail Facilities
Hotel/Parking lot

17th Fiscal Period(2H/2011)

18th Fiscal Period(1H/2012)

19th Fiscal Period(2H/2012)

20th Fiscal Period(1H/2013)

21st Fiscal Period(2H/2013)

95.1％
93.8％
97.9％
100.0％

22nd Fiscal Period(1H/2014)(Note1) Data for the 17th Fiscal Period (2H/2011) excludes the effect of the sale of the New Edobashi Building which was sold on October 21, 2011.
Effect of the seven senior properties which were sold on May 22, 2014 are excluded from all the indicated periods.

Investment
Invincible Corporation

21

Invincible

Measures to Increase Residential Rents

Investment
Corporation

 Raised rents for New Leases by 1.8%
 Rents increased for 53.3% of New Leases
 Net leasing costs declining (vs. same period in prior year) Raised rents for Contract Renewals by 0.8%
 Rents increased at 24.9% of Contract Renewals
 On a monthly basis, rent increases are accelerating

Residential (New Contracts)

Residential (Contract Renewals)
Increase

Net Rent
Change(1)No. of newcontracts
Net Leasing
Costs(2)As isDecrease

‐3.1%

‐5.9%

‐0.6%

+0.2%

+1.8%

2012 1H

2012 2H2013 1H

2013 2H2014 1H

272

334

484

343

0.96

1.91

0.90

1.51

No. of newcontracts

+0.0%

+0.0%

+0.8%

368

2012 1H
356
No. of renewal

2012 2H
305

2013 1H
497

2013 2H
321

2014 1H446

0.87

Renewal rate (3)

86.2%

83.8%

82.0%

79.9%

85.0%

Residential (Renewal Contracts) monthly (1H/2014)

+1.6%

+1.5%

+2.0%

+3.7%

+4.9%

Jan.

Feb.

Mar.

Apr.

May.

Jun.

74

115

62

Decrease

+0.0%

‐0.3%

67

As is

‐0.1%

Residential (New Contracts) monthly (1H/2014)
Net Rent
Change(1)Increase
Net Rent
Change(1)2030(Note 1) Calculated by subtracting the total amount of monthly rent under previous contracts from the total
amount of monthly rent on new contracts and dividing by the total amount of monthly rent underprevious contracts(Note 2) Net Leasing Cost (No. of Months) = Advertising Expenses (No. of Months) + Free Rent (No. ofMonths) – Key Money (No. of Months)

Net Rent
Change(1)No. ofrenewals

+0.0%

+0.5%

+0.5%

+1.1%

+1.4%

+1.6%

Jan.

Feb.

Mar.

Apr.

May.

Jun.

43

67

139

82

52

63

(Note 3) Renewal rate is calculated by “Number of Renewals during the Period” ÷”Number of Cases
Targeted for Renewal during the Period”

22Steady Growth in Residential Demand in Key Metropolitan Areas Number of households continues to increase in Tokyo
and Osaka
 48.0% of new Tokyo residents in 2013 were between ages
18 to 29

 Supply of rental apartment tends to decrease Rising construction costs expected to result in reduced
supply of new residential properties

Increased Demand

Decreased Supply

Number of Households in Tokyo and Osaka(1)Trend of Rental Apartment Housing Starts in Tokyo

Source: Tokyo Metropolitan Government, Osaka Prefectural Government
National Institute of Population and Social Security Research (IPSSR)

Source: MLIT

Tokyo Net Migration by Age Group

Residential Construction Costs(2)Ages 18 to 29 vs. Total New Residents (%)
2013: 48.0%
2012: 47.8%
2011: 47.9%（Unit：persons）

80,00070,00060,00050,00040,00030,00020,00010,0000‐10,000

2011

2012

2013

2013

2011

2009

2007

2020E

2015E

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

0.0

2005

1.0

2003

2.0

2001

3.0

1999

4.0

1997

5.0

1995

6.0

80,00070,00060,00050,00040,00030,00020,00010,000
0

1993

Osaka

1991

Tokyo

7.0

1989

→Estimate（Unit：mn ）

120%
115%
110%
105%
100%

Ages 0 to 17

Ages 18 to 29

Ages 30 to 59

Source: Tokyo Metropolitan Government

Investment
Invincible Corporation

Ages 60 or older

95%
2003/4

2005/4

2007/4

2009/4

2011/42013/4

Source: MLIT
(Note 1) 2000 to 2013 are actual figures provided by Tokyo metropolitan government and Osaka prefectural government. 2015 to 2035 figures are estimated by IPSSR(Note 2) Projected construction cost per unit area as of April, 2003 is indexed as 100%. Projected construction cost per unit area = totalized monthly projected construction/
totalized monthly floor area for type of dwellings used exclusively for living and used also for commerce or other purposes23

Growth of Portfolio Asset Values
 Appraisal value(1) increased by JPY 1,169.2 million in the June 2014 period, a gain of 1.7% over the prior period The Fifth consecutive period of growth in asset values
 The portfolio has an unrealized gain of JPY 1,904 million（Unit：mn JPY）
End‐of‐period Appraisal Values

Unrealized
profitJPY 1,904 mn

End‐of‐Period Book Values+1,838 ** Breakdown‐ Portion added by new acquisition of
24 properties: +14,194‐ Higher valuation portion of 54
existing properties: +183 (+0.3%)+1,082（+1.5％）+864（+1.2％）+14,377*+907（+1.6％）

02012 2H2012 1H

2011 2H2013 1H

Sep. 2012
New acquisition of 24 properties

2013 2H2014 1H

May 2014 New acquisition of
2 Hotel properties and Sale of 7
Senior Housing Properties<Change in appraisal value: Analysis by type location, and other factors>
Category
Total Portfolio

Type

Residential
Offic es/ Retail Fac ilities
Hotels
S eniors / Others
Location

Greater Tokyo Area
Chubu
Kansai
Hokkaido/ Tohoku

Number of
P roperties

P revious

Current

Appraisal

Appraisal

Value

Value

73
63
7
2
1
48
7
12
6

Investment
Invincible Corporation

76,09857,921
12,5955,490
92
57,320
3,864
6,892
8,022

77,26858,86512,8085,490
105
58,106
3,966
6,982
8,214

Increase/ Decrease+1,169
+944
+213
‐
+12
+785
+102
+90
+192

+1.5%
+1.6%
‐
‐
+13.0%
+1.4%
+2.6%
+1.3%
+2.4%

Increae /Increase /Decrease due

Decrease due

to Cap Rate

to Cashflow+1,158
+930
+226
‐
+2
+848
+66
+100
+144

+10
+13
▲13
‐
+10
▲62
+36
▲10
+48

* Breakdown- Higher valuation portionof 71 held properties ：+1,169.2（+1.7％）- Portion added by new acquisitionof 2 Hotel properties ：+5,490- Portion decreased by saleof 7 Senior Housing properties ：-4,821(Note 1) 71 properties excluding seven senior properties sold on May 22, 2014 andtwo hotels acquired on May 23, 2014.
(Note 2) Appraisal value is the appraisal price as of April 30, 2014

24

Memo

Investment
Invincible Corporation

25

APPENDIX

Investment
Invincible Corporation

26

Income Statement
Items

2１st Fiscal Period
2013/7/1‐
2013/12/31‐
Ths JPY%

22nd Fiscal Period
2014/1/1‐
2014/06/30
Ths JPY%

ChangesThs JPY

Operating revenues
Rental revenues (1)Gain on sales of properties
Operating expenses
Property related expenses (2)Depreciation expenses (3)NOI (1)‐(2)+(3)Asset management fees
Directorsʹ remuneration
Asset custodian fees
Administrative service fees
Provision of allowance for doubtful accounts
Bad debt loss
Other operating expenses
Operating income
Non‐operating revenues
Interest revenues
Profit from finance related cost adjustment
Reversal of allowance for doubtful accounts
Miscellaneous income
Non‐operating expenses
Interest expenses
Finance related costs
Investment unit issuance expenses
Miscellaneous losses
Ordinary income
Income before income taxes
Corporate tax, etc.
Net income

2,740,449
2,740,449‐
1,474,679
1,261,221
527,420
2,006,648
125,000
4,800
3,986
19,0891,045
2,561
56,9751,265,770
355,544400
354,737‐406
1,267,953
672,128
579,038
15,4871,300
353,360
353,360
605
352,755

Retained earnings at the beginning of the period

93,24773,159‐20,087

Unappropriated retained earnings / loss at the end of the period

446,003

974,975

528,972

Invincible

Investment
Corporation

100.0

53.8

46.2
13.0

46.3

12.9
12.9
12.9

3,775,772
2,772,419
1,003,352
1,541,127
1,281,791
527,9142,018,542
125,000
4,800
3,906
18,224‐‐
107,404
2,234,644
1,777
404
‐
475
898
1,334,001
376,514842,043
115,4385
902,420
902,420605
901,815

100.0

40.8

59.2
0.0

35.3

23.9
23.9
23.9

1,035,323
31,9701,003,352
66,44820,570494
11,894‐‐‐79‐864‐1,045‐2,56150,429968,874‐353,766
3‐354,737
475
491
66,048‐295,613
263,004
99,951‐1,294
549,059
549,059‐
549,059

%
37.8

4.5

76.5
‐99.5

5.2

155.4
155.4
155.6

27

Invincible

Balance Sheet ‐ Assets
Items

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Accrued revenue
Accounts receivables
Prepaid expenses
Consumption tax receivable
Advance payment
OthersAllowance for doubtful accounts
Total current assets
Non‐current assets
Property, plant and equipment, at cost
Buildings
Equipment
Building improvements
Land
Buildings in trust
Equipment in trust
Building improvements in trust
Tools, furniture and fixtures in trust
Land in trust
Total property, plant and equipment, at cost
Intangible assets
OthersTotal intangible assets
Investment and other assets
Guarantee deposits
Long‐term prepaid expenses
OthersTotal investment and other assets
Total non‐current assets
Total assets

21st Fiscal Period

22nd Fiscal Period( As of Dec. 31, 2013)( As of Jun. 30, 2014)

Ths JPY

Ths JPY%

1,457,257
2,729,902‐
10,948122,3217,419‐
10‐2,573
4,325,286

Investment
Corporation

Changes%Ths JPY%

5.5

759,058
2,765,504
2,574
71,193
120,941‐
17,1380‐1,391
3,735,018

2,461,796
22,7062,330
2,713,620
27,423,061
5,073,126
223,646
80,64636,582,527
74,583,461

94.2

78,131
21,5101,640
711,834
28,538,783
5,259,944
212,270
91,54040,447,565
75,363,220

95.1‐2,383,665‐1,196‐689‐2,001,786
1,115,722
186,818‐11,376
10,894
3,865,038
779,759

137
137

0.0

106
106

0.0

‐30
‐30

‐22.2

0.3
94.5
100.0

10,000
119,338
34,070163,40975,526,736
79,261,754

0.2
95.3
100.0

‐
‐105,032
694‐104,337
675,391
85,122

‐39.0
0.9
0.1

10,000224,371
33,375
267,746
74,851,345
79,176,632

4.7‐698,199
35,601
2,574
60,244‐1,379‐7,41917,138‐101,181‐590,268

‐13.6

1.0

28

Balance Sheet – Liabilities/Net Assets
Items

Liabilities
Current liabilities
Accounts payable
Short‐term debts
Current portion of long‐term debts
Current portion of long‐term debts in trust
Accrued liabilities
Accrued expenses
Accrued income taxes
Accrued consumption taxes
Advances received
Deposits received
Total current liabilities
Non‐current liabilities
Long‐term debts
Long‐term debts in trust
Tenant leasehold and security deposits in trust
Tenant leasehold and security deposits
Total non‐current liabilities
Total liabilities
Net assets
Unitholdersʹ equity
Unitholdersʹ capital
SurplusCapital surplus
Unappropriated retained earnings / loss
Total surplus
Total unitholdersʹ equity
Total net assets
Total liabilities and net assets

21st Fiscal Period

22nd Fiscal Period( As of Dec. 31, 2013)( As of Jun. 30, 2014)

Ths JPY

Ths JPY

174,201‐
203,520
105,833
5,000
229,843525‐
385,886
5,048
1,109,859%%

ChangesThs JPY%

1.4

143,439
13,488,750
17,552,100‐
32,733
121,934520
143,637
357,52232,92731,873,567

20,146,480
20,854,166
1,037,721
183,579
42,221,948
43,331,808

53.3
54.7

‐
9,960,000
1,025,726
28,663
11,014,390
42,887,957

13.9
54.1

‐20,146,480‐10,894,166‐11,995‐154,916‐31,207,558‐443,850

29,134,389

36.8

29,134,389

36.8

‐

‐

8.5
45.3
45.3
100.0

6,264,432
974,975
7,239,407
36,373,796
36,373,796
79,261,754

9.1
45.9
45.9
100.0

‐
528,972
528,972
528,972
528,972
85,122

7.9
1.5
1.5
0.1

6,264,432
446,0036,710,435
35,844,824
35,844,824
79,176,632

40.2‐30,762
13,488,750
17,348,580‐105,833
27,733‐107,908‐4
143,637‐28,364
27,87930,763,708

AI

‐73.9
‐1.0

Net assets per unit as of the end of 22nd Fiscal Period

Invincible

Investment
Corporation

JPY 23,121 (Issued investment units: 1,573,179 units)

29

Cash Flow Statement /Financial Statements pertaining to Distribution of Monies
Items

21ｓｔ Fiscal Period
2013/7/1‐
2013/12/31
Ths JPY

22nd Fiscal Period
2014/1/1‐
2014/06/30
Ths JPY

Net income before taxes

353,360

Depreciation expenses

527,451

902,420

Investment unit issuance expenses

15,487

Finance related costs

579,038

115,438

842,043

Amortization of tenant leasehold and security deposits in trust

(683)

(435)

Interest revenues

(400)

(404)

Profit from finance related cost adjustment(354,737)Interest expenses

672,128
1,045(1,181)

6,458(60,244)

Decrease (increase) in deposit payments

748,197(7,419)

7,419

Increase (decrease) in accrued consumption taxes(24,902)

143,637

Increase (decrease) in accounts payable

24,617(87,869)

Increase (decrease) in accrued liabilities‐(1,613)

Increase (decrease) in accrued expenses(127,432)

18,110

Increase (decrease) in advances received

8,411(28,364)

Increase (decrease) in deposits received(3,553)

10,909‐4,367,451

5,481(6,762)

2,422,548

7,125,015

Proceeds of interest

390

404

Payment of interest(650,982)(502,533)

Payment of corporate taxes, etc.
Cash flows from operating activities

974,975
901,431573
73,543‐

Decrease (increase) in consumption tax receivable

Subtotal

446,003372,843
237
73,15922nd Fiscal Period
2014/1/1‐
2014/06/30‐

Increase (decrease) in allowance for doubtful accounts

Others(Ths JPY)(Ths JPY)(JPY)(Ths JPY)

Investment
Corporation

376,514

Decrease (increase) in accounts receivable

Decrease in property and equipment due to sale

21ｓｔ Fiscal Period
2013/7/1‐
2013/12/31

Items

Unappropriated retained earnings
Distributions
Distribution per Unit
527,945
Retained earnings carried forward

Cash flows from operating activities

Invincible

(606)

(609)

1,771,350

6,622,276

Cash flows from investment activities
Payment for acquisition of tangible assets in trust(158,960)(5,618,018)‐(154,916)

Repayment of tenant leasehold and security deposits in trust(49,761)(93,087)

Proceeds of tenant leasehold and security deposits in trust

39,531

81,527(694)(17,833)(169,885)(5,802,328)

Proceeds from short‐term debt‐

13,500,000

Repayment of short‐term debt‐

(11,250)

Proceeds from long‐term debt

20,350,000‐

Repayment of long‐term debt

(22,891,500)(2,797,899)

Repayment of tenant leasehold and security deposits

OthersCash flows from investment activities
Cash flows from financing activities

Repayment of long‐term debt in trust‐(11,000,000)(1,618,501)(732,126)

Payment of distributions(355,323)(342,802)

Proceeds from issuance of investment units

2,999,992

Finance related costs

Payment of investment unit issuance expenses
OthersCash flows from financing activities‐‐(98,468)(16,787)‐(1,532,119)(1,482,546)

Increase (decrease) in cash and cash equivalents

69,344(662,597)

Beginning balance of cash and cash equivalents

4,117,815

4,187,160

Closing balance of cash and cash equivalents

4,187,160

3,524,562

30

Forecast for 23rd Fiscal Period (as of Aug. 27, 2014)

Item

22nd Fiscal Perid (Results)

23rd Fiscal Period (Forecast)

2014/1/1～

2014/7/1～

2014/6/30

Operating revenues

2014/12/31%

mn JPY3,775

Changes%mn JPY%

mn JPY

100.0

4,323

100.0

547

14.5

Rental revenues (1)

2,772

73.4

4,323

100.0

1,551

Gain on sales properties

1,003

26.6

0

0.0

ᇞ 1,003

1,541

40.8

1,893

43.8

352

22.9

379

29.6

Operating expenses
Property related expenses (2)

1,281

1,661

Facilities management fees

446

475

28

of which, repair costs

40

40

ᇞ0

Taxes and other public charges

174

163

‐10

Insurance expenses

4

5

0

Other expenses

127

134

6

Depreciation expenses (3)

527

881

353

NOI（1)‐(2)+(3)

2,018

3,544

1,525

75.6
78.6

Rental income (1)‐(2)

1,490

2,662

1,171

Asset management fees

125

125

‐

Other operating expenses

134

107

ᇞ 26

Operating income

2,234

59.2

2,429

56.2

195

8.7

Non‐operating revenues

1

0.0

‐

‐

‐1

‐

Non‐operating expenses

1,334

35.3

827

19.1

‐506

‐38.0

Ordinary income

901

23.9

1,602

37.1

700

77.6

Net income

901

23.9

1,601

37.0

699

77.6

Forecasted Distribution for 23rd Fiscal Period
JPY 600 per unit
(Issued investment units: 2,668,686 units)

Invincible

Investment
Corporation(Note1) If Invincible decides to acquire or dispose a property, Invincible will review and revise the forecast and will
disclose the revised forecast in compliance with the rules of Tokyo Stock Exchange.

31

22nd Fiscal Period Results ‐ comparison with 21st Fiscal Period(unit: mn JPY) (1)21st Fiscal Period 22nd Fiscal Period
Results (2H/2013) Results (1H/2014)

Changes

Reasons for changes(unit: mn JPY)

+1,035+37.8％+31+1.2％+1,003

－％

1,474

3,775
2,772
1,003
1,541

+66

+4.5％

Repair costs

28

40

+12

＋44.5％

Operating Income

2,234
1

+968
▲353

＋76.5％

Non‐operating revenues

1,265
355

Profit from financerelated cost adjustment

354

－

▲354

－％

Non‐operating expenses

1,267

1,334

+66

＋5.2％

Interest Expenses

672

376

▲295

▲44.0％

 Reduction of interest burden associated withrefinancing as of May 23, 2014

Finance‐related costs

579

842

+263

＋45.4％

 Additional one‐off expenses related to refinancing asof May 23, 2014

Other non‐operating
expenses

16

115

+98

＋587.7％

 Additional one‐off expenses associated with offering
as of Jul. 17, 2014
(Expenses related to issue of new investment units)

352
224
13
237
2,006
5.2％

901
573

+549
+349
▲13
+336
+11
+0.1％

＋155.6％

Operating revenues

2,740

Rental revenues

2,740
－

Gain on sales of properties
Operating expenses

Net Income
Net Income per Unit
Reversal of Surplus per Unit
Distribution per UnitNOINOI yield

Invincible

Investment
Corporation

－

573
2,018
5.3％

・ Rent, common area fees, etc. ＋13
・ Renewal fee revenue +10
・ Key money income +6
・ Gain on sales of 7 senior housing properties +1,003
・ Maintenance costs +14（Restoration costs +6,Repair costs＋12,
Miscellaneous management expenses ▲3）・ Professional fees＋6
・ Cost of shared commissioned survey ▲4・ Advertising expenses and other fees +11
・ Other taxes and dues +47(Due to changes in taxable sales ratio)▲99.5％
 Booked refund of exit fees on refinancing of Shinsei
Trust Loans A and B in the 21st Fiscal Period＋155.8％－％+141.8％+0.6％－(Note1) Amounts listed are rounded down to the million JPY, however, the figures for “Net Income per Unit”, “Reversal of Surplus per Unit” and“Distribution per Unit” are in a unit of one yen. Furthermore, percentages are rounded to one decimal place.
(Note 2) “Net Income per Unit” figures calculated using the number of units outstanding at the end of each period.

32

22nd Fiscal Period Results – comparison with initial forecast
22nd Fiscal Period
Initial Forecast(1H/2014)
As of Feb. 27, 2014

(unit: mn JPY) (1)22nd Fiscal
PeriodResults(1H/2014)

Reasons for changes

Changes+1,014＋36.8％

2,760

3,775
2,772

+11

+0.4％

－

1,003

+1,003

－％

1,569

1,541

▲27

▲1.8％

Repair costs

40

40

+0

+1.3％

Operating Income

1,191+1,042＋87.5％+1+875－％＋190.1％

Operating revenues

2,760

Rental revenues
Gain on sales of properties
Operating expenses(unit: mn JPY)・ Rent, common area fees, etc. +1
・ Restoration fee revenue ＋3
・ Renewal fee revenue▲8・ Revenues on cost of utilities ＋3
・ Key money income ＋5
・ Other miscellaneous income ＋3
・ Gain on sales of 7 senior housing properties +1,003
・ Maintenance costs▲16（Restoration costs ▲17,
Miscellaneous management expenses▲1）・ Professional fees＋5
・ Depreciation ▲10・ Advertising expenses and other fees ▲23・ Other taxes and dues +17(Increase in the consumption tax regarding hotels
due to changes in taxable sales ratio)

Non‐operating revenues－

Non‐operating expenses

458

2,234
1
1,334

Interest Expenses

396

376

▲19

▲5.0％

Finance‐related costs

62

842

+779

+1,249.8％

 Additional one‐off expenses related to refinancing
as of May 23, 2014

Other non‐operating
expenses

1

115

+115

－％

 Additional one‐off expenses associated withoffering as of Jul. 17, 2014
(Expenses related to issue of new investment units)

731
465
－
464
1,968
5.1％

901
573

+170
+108
－
+109
+50
+0.2％

＋23.3％Net Income
Net Income per Unit
Reversal of Surplus per Unit
Distribution per UnitNOINOI yield

Invincible

Investment
Corporation

－

573
2,018
5.3％

 Reduction of interest burden associated withrefinancing as of Dec. 20, 2013
 Reduction of interest burden associated withrefinancing as of May 23, 2014＋23.2％－％＋23.5％＋2.5％－(Note1) Amounts listed are rounded down to the million JPY, however, the figures for “Net Income per Unit”, “Reversal of Surplus per Unit” and“Distribution per Unit” are in a unit of one yen. Furthermore, percentages are rounded to one decimal place.
(Note 2) “Net Income per Unit” figures calculated using the number of units outstanding at the end of each period.

33

23rd Fiscal Period Forecast ‐ comparison with 22nd Fiscal Period results(unit: mn JPY)

(1)

22nd Fiscal Period(1H/2014)
Results

23rd Fiscal Period(2H/2014)
Forecast
Aug. 27, 2014

Reasons for changes

Changes(unit: mn JPY)

+547

＋14.5 ％

Rental revenues

2,772

4,323
4,323

+1,551＋56.0％

Gain on sales ofproperties

1,003

－

▲1,003－％Operating expenses

1,893
40

+352
▲0

＋22.9％

Repair costs

1,541
40

(Ref.) CAPEX

135

141

+5

+4.2%

(Ref.) Total

176

181

+5

+3.0%

Operating Income

2,429
－
827

+195
▲1
▲506

＋8.7％

Non‐operating expenses

2,234
1
1,334

▲38.0％

Interest Expenses

376

370

▲6

▲1.7％

 Reduction of interest burden associated withrefinancing as of Jul. 17, 2014

Finance‐related costs

842

300

▲541

▲64.3％

 Decrease of one‐off expenses related to refinancing asof Jul. 17, 2014

Other non‐operating
expenses

115

157

+41

＋36.0％

Difference of billing timing related to one‐off expenses
associated with offering as of Jul. 17, 2014
(expenses related to issue of new investment units)

901
573
－
573
2,018
5.3％

1,601
600
－
600
3,544
5.6％

+699
+27
－
+27
+1,525+0.3％＋77.6％

3,775

Operating revenues

Non‐operating revenues

Net Income
Net Income per Unit
Reversal of Surplus per Unit
Distribution per UnitNOINOI yield

Invincible

Investment
Corporation▲1.3％

・ Rent, common area fees, etc. ＋1,575(Decrease on sales of 7 senior housing properties ▲131)・ Key money income ▲6・ Restoration fee revenue ▲7・ Other miscellaneous income ▲5・ Gain on sales of 7 senior housing properties ▲1,003
・ Maintenance costs＋28
・ Trust fees＋8・ Advertising expenses and other fees ▲3・ Depreciation＋353
・ Taxes and public dues ▲10(Property tax, etc.)
・ Accounting auditor remuneration＋11
・ Cost of shared commissioned survey ＋4
・ Other miscellaneous operating expenses ＋4
・ Other taxes and dues ▲53(Due to changes in taxable sales ratio)

－％

＋4.7％
－％
＋4.7％
＋75.6％－(Note1) Amounts listed are rounded down to the million JPY, however, the figures for “Net Income per Unit”, “Reversal of Surplus per Unit” and“Distribution per Unit” are in a unit of one yen. Furthermore, percentages are rounded to one decimal place.
(Note 2) “Net Income per Unit” figures calculated using the number of units outstanding at the end of each period.

34

Financial Metrics
18th Fiscal Period 19th Fiscal Period 20th Fiscal Period 21st Fiscal Period 22nd Fiscal Period
Items

Amount of Total Assets (mn JPY)
Amount of Net Assets (mn JPY)
Capital‐to‐Asset Ratio
Total Amount of Investment (mn JPY)
End‐of‐period total number of units issued
Amount of Net Assets per Unit ( JPY)
Return on Asset (ROA) (annualized)
Return on Equity (ROE) (annualized)
Amount of interest‐bearing debts (mn JPY)
Weighted average interest rate
Loan to Value (LTV 1)
End‐of‐period Loan‐to‐Value based on Total Assets (LTV 2)
Net Operating Income (NOI) (mn JPY)NOI yield (annualized)
Depreciation Expense (mn JPY)
Funds From Operations (FFO) (mn JPY)
NAV(mn JPY)
NAV per Unit (JPY)NAV ratio

2012/1/1‐
2012/6/30
67,69832,82648.5%
26,134
1,348,292
24,3460.4%
0.8%
31,603
4.4%
49.4%
46.7%
1,564
5.0%
411
539
30,222
22,4160.3

2012/7/1‐
2012/12/31
80,20032,67040.7%
26,134
1,348,292
24,2310.3%
0.7%
43,982
4.0%
57.6%
54.8%
1,800
5.2%
480
594
30,53922,6500.3

2013/1/1‐
2013/6/30
80,24932,84840.9%
26,134
1,348,292
24,3630.8%
2.1%
43,851
3.7%
57.5%
54.6%
2,008
5.2%
543
878
31,791
23,5790.6

2013/7/1‐
2013/12/31
79,17635,84445.3%
29,134
1,573,179
22,7850.9%
2.1%
41,310
3.2%
53.9%
52.2%
2,006
5.2%
527
880
36,24523,0390.6

2014/1/1‐
2014/6/30
79,26136,37345.9%
29,134
1,573,179
23,121
2.3%
5.0%
41,000
1.8%
53.7%
51.7%
2,018
5.3%
527
426
37,286
23,7011.0(Note 1) Financial indicators calculation method in the above table are as follows.
・ ROA(annualized)＝ Ordinary Income / Weighted Average Total Assets during the period x 100/days during the period x 365
・ ROE(annualized)＝ Net Income / Weighted Average Net Assets during the period x 100/days during the period x 365
・ LTV(1)＝ End‐of‐period Interest‐Bearing Debt / (End‐of‐period Interest‐Bearing Debt + Unitholders’ Capital + Unitholders’ Capital Surplus)x100
・ LTV(2)＝ End‐of‐period Interest‐Bearing Debt / End‐of‐period Total Assets x 100
・ NOI＝ Rental Revenues ‐ Property‐Related Expenses + Depreciation Expenses
・ NOI yield (annualized)＝((Rental Revenues ‐ Property‐Related Expenses + Depreciation Expenses)/ days during the period x 365)/ Acquisition Price
・ FFO＝ Net Income + Depreciation Expenses + Other Amortization – Gain on Sales of Properties + Loss from Sales of Properties
・ NAV＝ End‐of‐period Amount of Net Assets – Undistributed Profit + End‐of‐period Appraisal Value ‐ Tangible property
・ NAV ratio ＝ period‐end unit price/ Amount of Net Assets per Unit
(Note 2) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.
In addition “Amount of Net Assets per Unit (JPY)” and “NAV per Unit (JPY)” are rounded to nearest yen.

Invincible

Investment
Corporation

35

Overview of Borrowings(as of the end of Jun. 2014 / Jul. 31, 2014)

Investment
Invincible Corporation

Borrowing amount
Loan

Debtor Bank

New
Syndicate
Loan（B）

Sumitomo Mitsui Banking
Corporation
The Bank of Tokyo‐Mitsubishi
UFJ, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank,
Limited

BorrowingdateNew
Syndicate
Loan (A)（3）New
Syndicate
Loan（C）

Sumitomo Mitsui Banking
Corporation
The Bank of Tokyo‐Mitsubishi
UFJ, Ltd.
Mizuho Bank, Ltd.
Citibank Japan Ltd.
Shinsei Bank Limited
Sumitomo Mitsui Trust Bank,
LimitedResona Bank, Limited

Prudential Mortgage Asset Holdings
1 Japan Investment Limited
Partnership

Subtotal of long‐term debt
in trust

Total

As of the end ofJun. 2014

As ofJul. 31, 2014

Maturitydate

JPY 13,488mn－

JPY 13,488mn－

Variableinterest rate
（1month JPY
TIBOR +0.8%）－

May 22, 2015(2)－Dec. 20, 2016(2)1.64636%（1）Dec. 20,
2013

Jul. 17,2014

Subtotal of long‐term debt
Prudential
LPS Loan B

As ofJul. 31, 2014

0.94636%（1）
May 23,2014

Subtotal of short‐term debt
Sumitomo Mitsui Banking
Corporation
The Bank of Tokyo‐Mitsubishi
UFJ, Ltd.
Shinsei Bank Limited
Citibank Japan Ltd.
Shinsei Trust & Banking Co., Ltd.（4）Aozora Bank, Ltd.

As of the end ofJun. 2014

Interest rate (annual rate) etc.

Sep. 28,2012

JPY 17,552mn－

Variableinterest rate
（1month JPY
TIBOR +1.5%）

0.98000%（5）－JPY 57,300mn

JPY 17,552mn

JPY 57,300 mn

JPY 2,700 mn
JPY 2,860 mn
JPY 1,830 mn
JPY 2,570 mn

Variableinterest rate
（1month JPY
TIBOR +0.8%）－

1.9％
Fixed interest rate

Jul. 14, 2017

Mar. 31, 2018
Mar. 31, 2019
Mar. 31, 2020
Mar. 31, 2019

JPY 9,960 mn
JPY41,000mn

JPY67,260mn（Note 1） The interest rate is applicable for the period from Jun. 30, 2014 through Jul. 30, 2014.
（Note 2） The full amount was prepaid as of Jul. 17, 2014.
（Note 3） Regarding New Syndicate Loan (A), partial repayment of the principal, JPY 16 million, is made on each interest payment date (JPY 203.5 million per year) and the remainder was
repaid on the principal maturity date (2).
(Note 4) Shinsei Trust & Banking Co., Ltd. is the trustee of the specified money trust, and the Platinum CRE Loan II Investment Limited Partnership holds the beneficiary rights to the trust.
(Note 5) The interest rate is applicable for the period from Jul. 17, 2014 through Aug. 28, 2014.(2‐month JPY TIBOR＋0.8％ for the first interest calculation period only.）(Note 6) The outstanding of borrowing is rounded down to the indicated unit.

36

Overview of Borrowing Mortgages(as of the end of Jun. 2014)
Loan

BorrowingAmountas of Jun.
2014
(mn JPY)

Appraisal
Values asof Jun. 2014
(mn JPY)

Investment
Invincible Corporation

LTV
based
on
Appraisal
ValuesMortgages

No. ofProperties

City House Tokyo Shinbashi, Winbell Kagurazaka, Nishiwaseda Cresent Mansion,
Lexington Square Akebonobashi, Casa Eremitaggio, Towa City Coop Shinotsuka II,
Bichsel Musashiseki, Lexel Mansion Ueno Matsugaya, Towa City Coop Sengencho,
Royal Park Omachi, Lexington Square Haginomachi, Visconti Kakuozan, Lexington
Square Daitabashi, Lexington Square Honjo Azumabashi, AMS TOWER Minami 6‐Jo,
Spacia Ebisu, Lexington Plaza Nishigotanda, Cross Square NAKANO, Ohki Aoba
Building, Lexington Plaza Hachiman , AEON TOWN Sukagawa, Shinjuku Island,
Stop Parking Kanda‐Sudacho（1）23

New Syndicate Loan (A)17,55237,597

46.7%

Subtotal

17,55237,597

46.7%

23
Nisshin Palacestage Daitabashi, Nisshin Palacestage Higashi‐Nagasaki, Growth
Maison Gotanda, Growth Maison Kameido, Emerald House, Harmonie Ochanomizu,
Suncrest Shakujii Koen, Growth Maison ShinYokohama, Belle Face Ueno
Okachimachi, Growth Maison Yoga, Route Tachikawa, Shibuya Honmachi Mansion,
City Heights Kinuta, Acseeds Tower Kawaguchi Namiki, Capital Heights
Kagurazaka, College Square Machida, Belair Meguro, Wacore Tsunashima I, Foros
Nakamurabashi, Growth Maison Ikebukuro, Growth Maison Kaijin, College Square
Machiya, Kindai Kagakusha Building, Hotel MyStays Kanda and Hotel MyStays
Asakusa

New Syndicate Loan （B）

13,48824,713

54.6%

Subtotal

13,48824,713

54.6%

First lending

2,700

4,048

66.7%

Neo Prominence, Salvo Sala, Luna Court Edobori, Revest Meieki Minami and Wintage Kobe
Motomachi

5Second lending

2,860

4,293

66.6%

Sun Terrace Minami Ikebukuro, Excellente Kagurazaka, HERMITAGE NANBA WEST, Little
River Honmachibashi, Invoice Shin‐Kobe Residence and Cosmo Court Motomachi

6

Third lending

1,830

2,798

65.4%

Queen‘s Court Fukuzumi, Prime Life Sannomiya Isogami Koen, Revest Honjin, Revest
Matsubara and Corp Higashinotoin

5

Fourth lending

2,570

3,811

67.4%

West Avenue, Belair Oimachi, Siete Minami‐Tsukaguchi, Prime Life Mikage, Alba Noritake
Shinmachi, Revest Heian, Century Park Shinkawa 1‐bankan and Vendir Hamaotsu Ekimae

8

Subtotal

9,960

14,950

66.6％

24

Total

41,00077,260

53.1%

73

Prudential
LPS Loan B

26

26（Note 1） The property name was changed from “Stop Parking Kanda‐Sudacho” to “Times Kanda‐Sudacho 4th” as of Jul. 1,201437

Overview of Borrowing Mortgages(as of the end of Jul. 2014)
Loan

BorrowingAmount asof Jul.
2014(mn JPY)

Appraisal
Values asof Jun. 2014
(mn JPY)

Investment
Invincible Corporation

LTV
based onAppraisal
ValuesMortgages

No. ofProperties

First priority pledges over the real estate trust beneficiary interests for 65 properties: Nisshin
Palacestage Daitabashi, Nisshin Palacestage Higashi‐Nagasaki, Growth Maison Gotanda,
Growth Maison Kameido, Emerald House, Harmonie Ochanomizu, Suncrest Shakujii Koen,
Growth Maison Shin‐Yokohama, Belle Face Ueno Okachimachi, Grand Rire Kameido, Growth
Maison Ikebukuro, Growth Maison Yoga, Route Tachikawa, Shibuya Honmachi Mansion, City
Heights Kinuta, Acseeds Tower Kawaguchi Namiki, Capital Heights Kagurazaka, College
Square Machida, Belair Meguro, Wacore Tsunashima I, Foros Nakamurabashi, Growth Maison
Kaijin, College Square Machiya, City House Tokyo Shinbashi, Winbell Kagurazaka,
Nishiwaseda Crescent Mansion, Lexington Square Akebonobashi, Casa Eremitaggio, Towa
City Coop Shinotsuka II, Bichsel Musashiseki, Lexel Mansion Ueno Matsugaya, Towa City
Coop Sengencho, Royal Park Omachi, Lexington Square Haginomachi, Visconti Kakuozan,
Lexington Square Daitabashi, Lexington Square Honjo Azumabashi, AMS TOWER Minami 6‐
Jo, Spacia Ebisu, Kindai Kagakusha Building, Lexington Plaza Nishigotanda, Cross Square
NAKANO, Ohki Aoba Building, Lexington Plaza Hachiman, AEON TOWN Sukagawa, Hotel
MyStays Kanda, Hotel MyStays Asakusa, Hotel MyStays Kyoto‐Shijo, MyStays Shin Urayasu
Conference Center, Hotel MyStays Maihama, Hotel Vista Premio Dojima, Hotel MyStays
Nagoya‐Sakae, Hotel MyStays Sakaisuji‐Honmachi, Hotel MyStays Yokohama, Hotel MyStays
Nippori, Hotel MyStays Fukuoka‐Tenjin‐Minami, Flexstay Inn Iidabashi, Hotel MyStays Ueno
Inaricho, Flexstay Inn Shinagawa, Flexstay Inn Tokiwadai, Flexstay Inn Sugamo, Hotel MyStays
Otemae, Flexstay Inn Kiyosumi Shirakawa, Flexstay Inn Nakanobu P1 and Flexstay Inn
Nakanobu P2. First priority mortgages over two real estate properties: Shinjuku Island andTimes Kanda‐Sudacho 4th. Floating lien over nine properties: Hotel MyStays Kanda, Hotel
MyStays Kyoto‐Shijo, MyStays Shin Urayasu Conference Center, Hotel MyStays Maihama,Hotel Vista Premio Dojima, Hotel MyStays Nagoya‐Sakae, Hotel MyStays Sakaisuji‐Honmachi,
Hotel MyStays Yokohama and Hotel MyStays Fukuoka‐Tenjin‐Minami.

67

New Syndicate Loan （C）

57,300102,660

55.8%

Subtotal

57,300102,660

55.8%

First lending

2,700

4,048

66.7%

Neo Prominence, Salvo Sala, Luna Court Edobori, Revest Meieki Minami and Wintage Kobe
Motomachi

5Second lending

2,860

4,293

66.6%

Sun Terrace Minami Ikebukuro, Excellente Kagurazaka, HERMITAGE NANBA WEST, Little
River Honmachibashi, Invoice Shin‐Kobe Residence andCosmo Court Motomachi

6

Third lending

1,830

2,798

65.4%

Queen‘s Court Fukuzumi, Prime Life Sannomiya Isogami Koen, Revest Honjin, Revest
Matsubara and Corp Higashinotoin

5

Fourth lending

2,570

3,811

67.4%

West Avenue, Belair Oimachi, Siete Minami‐Tsukaguchi, Prime Life Mikage, Alba Noritake
Shinmachi, Revest Heian, Century Park Shinkawa 1‐bankan and
Vendir Hamaotsu Ekimae

8

Subtotal

9,960

14,950

66.6％

24

Total

67,260117,610

57.2%

91

Prudential
LPS Loan B

67

38

Invincible

Portfolio Characteristics

Investment
Corporation(as of the end of Jun. 2014)

No. of Properties : 73

(Residential : 63 ,Hotels: 2)(Based on Acquisition Price)

Chubu 4.8%

Greater Tokyo
Area excluding
Tokyo 23 wards
7.1%

RetailFacilities
7.2%

others
10.7% Central 5
wards of
Tokyo
29.3%

Total Rentable Units : 3,802 unit

<By Property Type>
Hotels
7.0%<By Property Age>
Parking Lots
0.1%

20‐ years
30.6%

Office11.2%

Tokyo 23 wards
excluding Central
5 wards 39.7 %Residential
74.5%

Greater Tokyo Area : 76.1 % (Tokyo 23 wards：69.1 % )<By Room Type>

15‐19 years
7.4%

Residential : 74.5%, Hotels : 7.0%

5‐9 years
44.7%

10‐14 years
17.3%

Weighted average age : 13.7 years<By Rent Range>
JPY150th‐JPY200ths
8.0%

JPY100th‐
JPY150ths
14.3%

Small : 64.7%

Total Leasable Area : 154,773.28 ㎡(Residential : 109,584.45 ㎡
Hotels: 5,913.10㎡)(Residential : 3,413 units ,Hotels: 286 units)(Residential : JPY 58 billion ,Hotels: JPY 5.4 billion)<By Geography>

Kansai 8.4%



 Asset Size : JPY 77.9 billion

Greater than
JPY200ths
4.2%

Less than
JPY100ths
73.4%

Less than JPY 100 ths : 73.4%(Note 1) Central 5 wards, Greater Tokyo Area excluding Tokyo 23 wards, Kansai Area, Chubu Area and other are defined as follows:
Central 5 wards: Chiyoda‐ku, Chuo‐ku, Minato‐ku, Shibuya‐ku and Shinjuku‐ku
Greater Tokyo Area excluding Tokyo 23 wards: Tokyo excluding Tokyo 23 wards, Kanagawa, Chiba and Saitama
Kansai Area: Osaka, Hyogo, Kyoto, Nara, Shiga and Wakayama
Chubu Area: Aichi, Gifu, Mie, Shizuoka, Nagano, Yamanashi, Niigata, Toyama, Ishikawa and Fukui
Others: Miyagi, Fukushima and Hokkaido(Note 2) Invincible defines as“Small” a rentable unit with an area of less than 30㎡, “Medium” as a rentable unit with an area of 30㎡ to 60㎡ and “Large” as a rentable unit
with an area of 60㎡ or more.
(Note 3) <By Age >, <By Geography>, <By property Type> are calculated based on the acquisition price .
(Note 4) Percentages are rounded to one decimal place.

39

Overview of Unitholders
Major Unitholders (TOP 10)
21st Fiscal Period (As of Dec. 31, 2013)

22nd Fiscal Period (As of Jun. 30, 2014)
Number ofunits held
609,94238.77

1 Calliope Godo Kaisha

2 Rayo Godo Kaisha

149,925

9.53

2 Rayo Godo Kaisha

149,925

9.53

3 New Mission Funding Co., Ltd.

129,400

8.22

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

113,573

7.21

4 SCG16 Godo Kaisha

74,962

4.76

4 Japan Trustee Services Bank, Ltd. (trust account)

110,979

7.05

5 JP MORGAN CHASE BANK 380180

67,283

4.27

5 Trust & Custody Services Bank, Ltd. (securities investment trust account)

82,132

5.22

6 GOLDMAN SACHS INTERNATIONAL

65,701

4.17

6 JP MORGAN CHASE BANK 380180

72,004

4.57

7 Japan Trustee Services Bank, Ltd. (trust account)

58,7993.73

7 INFINITE VALUE INVESTMENT LTD

70,151

4.45

8 INFINITE VALUE INVESTMENT LTD

57,757

3.67

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

41,3102.62

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

40,3692.56

9 New Mission Funding Co., Ltd.

20,3401.29

10 CHASE MANHATTAN BANK GTS CLIENTS ACCOUNT ESCROW

34,445

2.18

10 NORTHERN TRUST CO. (AVFC) RE 15PCT TREATY ACCOUNT

16,037

1.01

Name
1 Calliope Godo Kaisha

Total

1,288,583

81.90

Issued investment units

1,573,179

Number ofunits held
609,942

Name

(%)

Total

(%)
38.77

1,286,393

81.77

Issued investment units

1,573,179(Note 1 ) Percentages are rounded down to two decimal places.

21st Fiscal Period
Individuals

22nd Fiscal Period

Financial institution (incl. securities companies)

Foreign companies, etc.

1.1%(106 unitholders)

1.2%(105 unitholders)
0.6%(54 unitholders)
0.3%(27 unitholders)

10.8%
15.9%
(170,349 units)(249,944units)11.3%(177,102 units)
62.0%(975,784units)

97.9%(8,597 unitholders)

Breakdown of number of unitholders
by their status(Number of total unitholders : 8,783)

Invincible

Other domestic companies

Investment
Corporation

Breakdown of number of units
held by the status of unitholders(Issued investment units : 1,573,179)

0.8%(80 unitholders)
0.2%(25 unitholders)
97.9%(9,794 unitholders)

Breakdown of number of unitholders
by their status(Number of total unitholders : 10,005)

12.0%
14.0%
(188,174 units)(220,845units)
23.6%(371,809 units)50.4%(792,351units)

Breakdown of number of units
held by the status of unitholders(Issued investment units : 1,573,179)(Note 2 ) Percentages are rounded to one decimal place.

40Newly Acquired 20 Hotels (1/10)(D1) Hotel MyStays Kanda

Location
Prefecture
AccessDate of Construction
Date of Renovation
Number of Guest Rooms
Total Floor Area
Land Area
Daily / Weekly / Monthly % (1)(2013)ADR (2013)(2)Occupancy (2013) (3)
RevPAR (2013) (4)Gross Revenue (2013)
GOP / GOP% (2013)
NOI (2013)

1‐2‐2 Iwamotocho, Chiyoda‐kuTokyo
6 minute walk from Kanda Station
December 2005‐
126
2,585.72 sqm
348.12 sqm

Investment
Invincible Corporation

71.5% / 9.5% / 19.0%
JPY 6,607
91.7%
JPY 6,061
JPY 286 mn
JPY 155 mn / 54.3%
JPY 145 mn(D2) Hotel MyStays Asakusa

Location
Prefecture
AccessDate of Construction
Date of Renovation
Number of Guest Rooms
Total Floor Area
Land Area
Daily / Weekly / Monthly %(1)(2013)ADR (2013) (2)Occupancy (2013) (3)
RevPAR (2013) (4)Gross Revenue (2013)
GOP / GOP% (2013)
NOI (2013)

1‐21‐11 Honjo, Sumida‐kuTokyo
4 minute walk from Kuramae Station
January 1990
November to December 2012
160
3,327.38 sqm
827.53 sqm
54.8% / 13.4% / 31.8%
JPY 4,848
88.5%
JPY 4,290
JPY 270 mn
JPY 157 mn / 58.3%
JPY 148 mn(Note 1) The percentages are revenue basis. Daily/Weekly/Monthly are defined as Daily=1~6, Weekly=7~29, Monthly=over30 night stays basis.
(Note 2) Total room sales for period divided by aggregate number of days per room for which each room was occupied.
(Note 3) Total room sales for period divided by the number of days per room for which each room was available during the period.
(Note 4) Calculated based on the total number of guest rooms.

41

Newly Acquired 20 Hotels (2/10)(D3) Hotel MyStays Kyoto‐Shijo

Location
Prefecture
AccessDate of Construction
Date of Renovation
Number of Guest Rooms
Total Floor Area
Land Area
Daily / Weekly /Monthly %(1) (2013)
ADR (2013) (2)Occupancy (2013) (3)
RevPAR (2013) (4)Gross Revenue (2013)
GOP / GOP% (2013)
NOI (2013)

Investment
Invincible Corporation

52, Kasaboko‐cho, Higashiiru,
Aburanokoji,
Shijyo‐dori, Shimogyo‐ku, Kyoto‐shi
Kyoto
6 mins walk from Shijo Station
January 2008‐
224
7,241.51 sqm
1,021.70 sqm
98.0% / 1.7% / 0.4%
JPY 9,040
85.6%
JPY 7,739
JPY 658 mn
JPY 352 mn / 53.5%
JPY 328 mn(D4) MyStays Shin‐Urayasu Conference Center

Location
Prefecture
AccessDate of Construction
Date of Renovation
Number of Guest Rooms
Total Floor Area
Land Area
Daily / Weekly /Monthly %(1) (2013)
ADR (2013) (2)Occupancy (2013) (3)
RevPAR (2013) (4)Gross Revenue (2013)
GOP / GOP% (2013)
NOI (2013)

2‐1‐4, Akemi, Urayasu‐shi
Chiba
15 mins walk from Shin‐Urayasu
StationMarch 2009‐175
6,232.30 sqm
3,281.50 sqm
97.4% / 2.6% / ‐%JPY 9,663
82.7%
JPY 7,993
JPY 599 mn
JPY 322 mn / 53.9%
JPY 304 mn(Note 1) The percentages are revenue basis. Daily/Weekly/Monthly are defined as Daily=1~6, Weekly=7~29, Monthly=over30 night stays basis.
(Note 2) Total room sales for period divided by aggregate number of days per room for which each room was occupied.
(Note 3) Total room sales for period divided by the number of days per room for which each room was available during the period.
(Note 4) Calculated based on the total number of guest rooms.

42Newly Acquired 20 Hotels (3/10)(D5) Hotel MyStays Maihama

Location
Prefecture
AccessDate of Construction
Date of Renovation
Number of Guest Rooms
Total Floor Area
Land Area
Daily / Weekly /Monthly %(1) (2013)
ADR (2013) (2)Occupancy (2013) (3)
RevPAR (2013) (4)Gross Revenue (2013)
GOP / GOP% (2013)
NOI (2013)

Investment
Invincible Corporation

3‐5‐1, Tekko‐dori, Urayasu‐shi
Chiba
12 mins walk from Maihama Station
June 2005‐
90
2,456.36 sqm
1,322.00 sqm
99.9% / 0.1% / ‐%JPY 15,634
91.0%
JPY 14,222
JPY 485 mn
JPY 285 mn / 58.8%
JPY 277 mn(D6) Hotel Vista Premio Dojima

Location
Prefecture
AccessDate of Construction
Date of Renovation
Number of Guest Rooms
Total Floor Area
Land Area
ADR (2013) (2)Occupancy (2013) (3)
RevPAR (2013) (4)Gross Revenue (2013)
GOP / GOP% (2013)
NOI (2013)

2‐4‐1, Sonezakishinchi, Kita‐ku,
Osaka‐shiOsaka
5 mins from Kitashinchi Station
August 1990‐
141
9,445.32 sqm
1,767.16 sqm
JPY 9,120
87.6%
JPY 7,987
JPY 553 mn
JPY 286 mn / 51.7%
JPY 241 mn(Note) Breakdown of Daily / Weekly / Monthly is not described because there is no available data.

(Note 1) The percentages are revenue basis. Daily/Weekly/Monthly are defined as Daily=1~6, Weekly=7~29, Monthly=over30 night stays basis.
(Note 2) Total room sales for period divided by aggregate number of days per room for which each room was occupied.
(Note 3) Total room sales for period divided by the number of days per room for which each room was available during the period.
(Note 4) Calculated based on the total number of guest rooms.

43Newly Acquired 20 Hotels (4/10)(D7) Hotel MyStays Nagoya‐Sakae

Location
Prefecture
AccessDate of Construction
Date of Renovation
Number of Guest Rooms
Total Floor Area
Land Area
Daily / Weekly /Monthly %(1) (2013)
ADR (2013) (2)Occupancy (2013) (3)
RevPAR (2013) (4)Gross Revenue (2013)
GOP / GOP% (2013)
NOI (2013)

Investment
Invincible Corporation

2‐23‐22, Higashisakura, Naka‐ku,
NagoyaAichi
7 mins walk from Sakae Station
November 1979
April to June 2013
270
9,064.71 sqm
1,142.41 sqm
96.1% / 3.2% / 0.7%
JPY 5,553
79.9%
JPY 4,437
JPY 498 mn
JPY 210 mn / 42.3%
JPY 163 mn(D8) Hotel MyStays Sakaisuji‐Honmachi

Location
Prefecture

1‐4‐8, Awaji‐machi, Chuo‐ku, Osaka‐shi
Osaka
7 mins walk from
AccessSakaisuji‐Hommachi Station
Date of Construction
July 2008
Date of Renovation‐
Number of Guest Rooms
190
Total Floor Area
4,188.83 sqm
Land Area
736.23 sqm
Daily / Weekly /83.8% / 11.0% / 5.2%
Monthly %(1) (2013)(2)
ADR (2013)
JPY 5,848
Occupancy (2013) (3)80.6%
RevPAR (2013) (4)JPY 4,714
Gross Revenue (2013)
JPY 337 mn
GOP / GOP% (2013)
JPY 170 mn / 50.5%
NOI (2013)
JPY 156 mn(Note 1) The percentages are revenue basis. Daily/Weekly/Monthly are defined as Daily=1~6, Weekly=7~29, Monthly=over30 night stays basis.
(Note 2) Total room sales for period divided by aggregate number of days per room for which each room was occupied.
(Note 3) Total room sales for period divided by the number of days per room for which each room was available during the period.
(Note 4) Calculated based on the total number of guest rooms.

44

Newly Acquired 20 Hotels (5/10)(D9) Hotel MyStays Yokohama

Location
Prefecture
AccessDate of Construction
Date of Renovation
Number of Guest Rooms
Total Floor Area
Land Area
Daily / Weekly /Monthly %(1) (2013)
ADR (2013) (2)Occupancy (2013) (3)
RevPAR (2013) (4)Gross Revenue (2013)
GOP / GOP% (2013)
NOI (2013)

Investment
Invincible Corporation

4‐81, Sueyoshi‐cho, Naka‐ku,
Yokohama‐shi
Kanagawa
1 min walk from Koganecho Station
December 1974
June to September, 2006
190
7,379.43 sqm
845.77 sqm
84.4% / 10.2% / 5.4%
JPY 5,956
85.2%
JPY 5,077
JPY 377 mn
JPY 164 mn / 43.6%
JPY 150 mn(D10) Hotel MyStays Nippori

Location
Prefecture
AccessDate of Construction
Date of Renovation
Number of Guest Rooms
Total Floor Area
Land Area
Daily / Weekly /Monthly %(1) (2013)
ADR (2013) (2)Occupancy (2013) (3)
RevPAR (2013) (4)Gross Revenue (2013)
GOP / GOP% (2013)
NOI (2013)

5‐43‐7, Higashi‐Nippori, Arakawa‐ku
Tokyo
5 mins walk from Nippori Station
April 1987
February to March 2011
93
1,719.29 sqm
254.09 sqm
67.5% / 15.4% / 17.0%
JPY 5,912
90.7%
JPY 5,363
JPY 188 mn
JPY 103 mn / 55.0%
JPY 98 mn(Note 1) The percentages are revenue basis. Daily/Weekly/Monthly are defined as Daily=1~6, Weekly=7~29, Monthly=over30 night stays basis.
(Note 2) Total room sales for period divided by aggregate number of days per room for which each room was occupied.
(Note 3) Total room sales for period divided by the number of days per room for which each room was available during the period.
(Note 4) Calculated based on the total number of guest rooms.

45

Newly Acquired 20 Hotels (6/10)(D11) Hotel MyStays Fukuoka‐Tenjin‐Minami

Location
3‐14‐20, Haruyoshi, Chuo‐ku, Fukuoka‐shi
Prefecture
Fukuoka
Access5 mins walk from Tenjin‐Minami Station
Date of Construction
February 2008
Date of Renovation‐
Number of Guest
177
Rooms
Total Floor Area
3,412.71 sqm
Land Area
899.15 sqm
Daily / Weekly /77.9% / 15.4% / 6.7%
Monthly %(1) (2013)(2)
ADR (2013)
JPY 5,065
Occupancy (2013) (3)79.1%
RevPAR (2013) (4)JPY 4,004
Gross Revenue (2013)
JPY 264 mn
GOP / GOP% (2013)
JPY 119 mn / 45.4%
NOI (2013)
JPY 108 mn

Investment
Invincible Corporation(D12) Flexstay Inn Iidabashi

Location
Prefecture
AccessDate of Construction
Date of Renovation
Number of Guest Rooms
Total Floor Area
Land Area
Daily / Weekly /Monthly %(1) (2013)
ADR (2013) (2)Occupancy (2013) (3)
RevPAR (2013) (4)Gross Revenue (2013)
GOP / GOP% (2013)
NOI (2013)

3‐26, Shin‐Ogawa‐Machi,
Shinjuku‐ku
Tokyo
8 mins walk from Iidabashi Station
December 1990‐
59
2,953.38 sqm
898.62 sqm
66.9% / 16.0% / 17.1%
JPY 7,280
87.8%
JPY 6,389
JPY 155 mn
JPY 85 mn / 55.3%
JPY 75 mn(Note 1) The percentages are revenue basis. Daily/Weekly/Monthly are defined as Daily=1~6, Weekly=7~29, Monthly=over30 night stays basis.
(Note 2) Total room sales for period divided by aggregate number of days per room for which each room was occupied.
(Note 3) Total room sales for period divided by the number of days per room for which each room was available during the period.
(Note 4) Calculated based on the total number of guest rooms.

46

Newly Acquired 20 Hotels (7/10)(D13) Hotel MyStays Ueno Inaricho

Location
Prefecture
AccessDate of Construction
Date of Renovation
Number of Guest Rooms
Total Floor Area
Land Area
Daily / Weekly /Monthly %(1) (2013)
ADR (2013) (2)Occupancy (2013) (3)
RevPAR (2013) (4)Gross Revenue (2013)
GOP / GOP% (2013)
NOI (2013)

Investment
Invincible Corporation

1‐5‐7, Matsugaya, Taito‐kuTokyo
4 mins walk from Inaricho Station
December 1986
November to December 201272
1,150.76 sqm
294.35 sqm
74.8% / 12.1% / 13.1%
JPY 5,797
90.2%
JPY 5,227
JPY 141 mn
JPY 69 mn / 49.4%
JPY 65 mn(D14) Flexstay Inn Shinagawa

Location
1‐22‐19, Kitashinagawa, Shinagawa‐ku
Prefecture
Tokyo
Access1 min walk from Kitashinagawa Station
Date of Construction
October 1986
Date of Renovation
November to December 2011
Number of Guest Rooms
55
Total Floor Area
1,134.52 sqm
Land Area
441.71 sqm
Daily / Weekly /64.7% / 9.3% / 26.0%
Monthly %(1) (2013)(2)
ADR (2013)
JPY 6,648
93.1%
Occupancy (2013) (3)
RevPAR (2013) (4)JPY 6,192
Gross Revenue (2013)
JPY 127 mn
GOP / GOP% (2013)
JPY 70 mn / 55.3%
NOI (2013)
JPY 65 mn(Note 1) The percentages are revenue basis. Daily/Weekly/Monthly are defined as Daily=1~6, Weekly=7~29, Monthly=over30 night stays basis.
(Note 2) Total room sales for period divided by aggregate number of days per room for which each room was occupied.
(Note 3) Total room sales for period divided by the number of days per room for which each room was available during the period.
(Note 4) Calculated based on the total number of guest rooms.

47

Newly Acquired 20 Hotels (8/10)(D15) Flexstay Inn Tokiwadai

Location
Prefecture
AccessDate of Construction
Date of Renovation
Number of Guest Rooms
Total Floor Area
Land Area
Daily / Weekly /Monthly %(1) (2013)
ADR (2013) (2)Occupancy (2013) (3)
RevPAR (2013) (4)Gross Revenue (2013)
GOP / GOP% (2013)
NOI (2013)

Investment
Invincible Corporation

1‐52‐5, Tokiwadai, Itabashi‐ku
Tokyo
5 mins walk from Tokiwadai Station
December 1989
March 2013
129
2,539.75 sqm
1,200.61 sqm
32.5% / 35.7% / 31.8%
JPY 3,890
84.0%
JPY 3,269
JPY 167 mn
JPY 83 mn / 49.8%
JPY 75 mn(D16) Flexstay Inn Sugamo

Location
Prefecture
AccessDate of Construction
Date of Renovation
Number of Guest Rooms
Total Floor Area
Land Area
Daily / Weekly /Monthly %(1) (2013)
ADR (2013) (2)Occupancy (2013) (3)
RevPAR (2013) (4)Gross Revenue (2013)
GOP / GOP% (2013)
NOI (2013)

3‐6‐16, Sugamo, Toshima‐ku
Tokyo
5 mins walk from Sugamo Station
January 1992
March 2013
104
2,089.86 sqm
683.47 sqm
37.8% / 22.3% / 39.9%
JPY 3,950
88.3%
JPY 3,490
JPY 145 mn
JPY 74 mn / 51.6%
JPY 67 mn(Note 1) The percentages are revenue basis. Daily/Weekly/Monthly are defined as Daily=1~6, Weekly=7~29, Monthly=over30 night stays basis.
(Note 2) Total room sales for period divided by aggregate number of days per room for which each room was occupied.
(Note 3) Total room sales for period divided by the number of days per room for which each room was available during the period.
(Note 4) Calculated based on the total number of guest rooms.

48

Newly Acquired 20 Hotels (9/10)(D17) Hotel MyStays Otemae

Location
Prefecture
AccessDate of Construction
Date of Renovation
Number of Guest Rooms
Total Floor Area
Land Area
Daily / Weekly /Monthly %(1) (2013)
ADR (2013) (2)Occupancy (2013) (3)
RevPAR (2013) (4)Gross Revenue (2013)
GOP / GOP% (2013)
NOI (2013)

1‐3‐2, Tokui‐cho, Chuo‐ku, Osaka‐shi
Osaka
4 mins walk from Tanimachi 4‐chome
StationDecember 1986
December 2012 to January 2013110
4,956.66 sqm
667.83 sqm

Investment
Invincible Corporation

60.9% / 16.1% / 23.0%
JPY 5,401
80.8%
JPY 4,364
JPY 188 mn
JPY 84 mn / 44.7%
JPY 75 mn(D18) Flexstay Inn Kiyosumi Shirakawa

Location
Prefecture
AccessDate of Construction
Date of Renovation
Number of Guest Rooms
Total Floor Area
Land Area
Daily / Weekly /Monthly %(1) (2013)
ADR (2013) (2)Occupancy (2013) (3)
RevPAR (2013) (4)Gross Revenue (2013)
GOP / GOP% (2013)
NOI (2013)

1‐12‐16, Tokiwa, Koto‐kuTokyo
5 mins walk from Kiyosumi‐
Shirakawa Station
May 1992‐
55
2,673.64 sqm
870.77 sqm
44.2% / 14.0% / 41.8%
JPY 5,253
87.7%
JPY 4,606
JPY 108 mn
JPY 56 mn / 51.7%
JPY 47 mn(Note 1) The percentages are revenue basis. Daily/Weekly/Monthly are defined as Daily=1~6, Weekly=7~29, Monthly=over30 night stays basis.
(Note 2) Total room sales for period divided by aggregate number of days per room for which each room was occupied.
(Note 3) Total room sales for period divided by the number of days per room for which each room was available during the period.
(Note 4) Calculated based on the total number of guest rooms.

49Newly Acquired 20 Hotels (10/10)(D19) Flexstay Inn Nakanobu P1

Location
Prefecture
AccessDate of Construction
Date of Renovation
Number of Guest Rooms
Total Floor Area
Land Area
Daily / Weekly /Monthly %(1) (2013)
ADR (2013) (2)Occupancy (2013) (3)
RevPAR (2013) (4)Gross Revenue (2013)
GOP / GOP% (2013)
NOI (2013)

Investment
Invincible Corporation

4‐27‐12, Futaba, Shinagawa‐ku
Tokyo
5 mins walk from Nakanobu Station
September 1986‐
39
770.56 sqm
395.33 sqm
19.1% / 14.2% / 66.6%
JPY 4,695
90.5%
JPY 4,251
JPY 64 mn
JPY 37 mn / 57.8%
JPY 34 mn(D20) Flexstay Inn Nakanobu P2

Location
Prefecture
AccessDate of Construction
Date of Renovation
Number of Guest Rooms
Total Floor Area
Land Area
Daily / Weekly /Monthly %(1) (2013)
ADR (2013) (2)Occupancy (2013) (3)
RevPAR (2013) (4)Gross Revenue (2013)
GOP / GOP% (2013)
NOI (2013)

4‐27‐8, Futaba, Shinagawa‐ku
Tokyo
5 mins walk from Nakanobu Station
March 1989‐
22
391.49 sqm
213.00 sqm
30.5% / 25.2% / 44.2%
JPY 4,114
94.8%
JPY 3,900
JPY 34 mn
JPY 18 mn / 54.2%
JPY 16 mn(Note 1) The percentages are revenue basis. Daily/Weekly/Monthly are defined as Daily=1~6, Weekly=7~29, Monthly=over30 night stays basis.
(Note 2) Total room sales for period divided by aggregate number of days per room for which each room was occupied.
(Note 3) Total room sales for period divided by the number of days per room for which each room was available during the period.
(Note 4) Calculated based on the total number of guest rooms.

50

Portfolio List as of the end of Jun. 2014(Performance by Properties, etc.)
Property Number

A26

A27

A28

A29

Property Name

Nisshin Palacestage
Daitabashi

Nisshin Palacestage
Higashi‐Nagasaki

Growth Maison
GotandaGrowth Maison
Kameido

A30

A31

Acquisition Date

July 28, 2005

July 28, 2005

January 30, 2006

March 30, 2006

August 1, 2006

August 3, 2006

August 3, 2006

Completion Date

December, 1992

March, 1989

July, 2005

October, 2005

February, 1995

March, 1997

March, 1990

March, 2006

Emerald House

A32

A33

Harmonie Ochanomizu Suncrest Shakujii Koen

Growth Maison Shin‐Yokohama
August 3, 2006

1‐31‐2 Izumi, Suginami
Ward, Tokyo

5‐4‐1 Nagasaki,
Toshima Ward, Tokyo

2‐26‐6 Nishi‐Gotanda,
Shinagawa Ward,Tokyo

6‐58‐16 Kameido, Koto
Ward, Tokyo

3‐27‐18 Itabashi,
Itabashi Ward, Tokyo

2‐5‐5 Yushima, Bunkyo
Ward, Tokyo

3‐15‐35 Takanodai,
Nerima Ward, Tokyo

Transport Access

About 10 minutes walk About 6 minutes walkfrom Daitabashi Station from Higashi‐Nagasakion Keio Line
Station on Seibu Line

About 5 minutes walkfrom Gotanda Station
on JR Line

About 2 minutes walkfrom Kameido Station
on JR Line

About 8 minutes walkfrom Shin‐Itabashi
Station on Toei Line

About 8 minutes walkfrom Ochanomizu
Station on JR Line

About 7 minutes walkfrom Nerima‐
Takanodai Station on
Seibu Line

About 7 minutes walkfrom Shin‐Yokohama
Station on JR Line

Price
information

Address

3‐16‐2 Shin‐Yokohama,
Kohoku‐ku, Yokohama
City, Kanagawa
Prefecture

Acquisition Price (JPY mn)

1,251

1,229

888

1,070

1,505

1,428

1,088

1,059

1.6%

1.6%

1.1%

1.4%

1.9%

1.8%

1.4%

1.4%

Book Value (mn JPY)

1,138

1,118

846

1,012

1,419

1,380

1,069

994

Appraisal Value as of Jun. 2014 ( mn JPY)

1,140

1,240

931

1,060

1,190

1,250

1,010

1,080

Investment ratio

Leasing
information

Total Rentable Units
Total Leasable Area ( ㎡)
Leased area ( ㎡)
Occupancy
Rate

48

66

96

65

29

68

1,051.50

1,367.96

2,152.31

1,748.24

3,029.16

1,858.44
1,615.78

1,666.59

2,619.30

1,051.50

1,221.54

2,152.31

1,594.12

2,937.72

94.1%

97.7%

100.0%

89.3%

100.0%

91.2%

97.0%

86.9%

Dec. 31, 2013

95.0%

97.4%

100.0%

89.3%

98.9%

97.5%

95.3%

94.1%

181 days

181 days

181 days

181 days

181 days

181 days

181 days

181 days

39,801

46,42027,34432,37649,34839,80935,961

33,24636,58541,29026,772

29,71738,05736,88832,84429,921

Days of operation
Rent, common area fees (ths JPY)
Other income (ths JPY)

3,216

5,130

572

2,659

11,291

2,920

3,116

3,324

18,03925,961

8,405

16,22625,56815,044

18,263

15,258

6,557

9,770

2,180

4,899

8,387

4,551

6,272

4,483

438

2,646

158

580

1,317

386

1,592

328

(Utility expenses (ths JPY))

1,999

2,763

275

562

1,056

715

1,164

638

Tax and other public charges (ths JPY)

1,571

2,649

1,322

1,685

2,563

1,826

3,120

2,395

70

97

33

45

100

69

101

70

(2) Property related expenses (ths JPY)
Information on Profits and losses

60
2,681.94

Jun. 30, 2014

(1) Rental revenues (ths JPY)

Reference
Information

98
1,771.13

Facility management fees (ths JPY)
(Repair costs (ths JPY))

Insurance expenses (ths JPY)
Other expenses(commissions paid, Trust fees, etc.) (ths JPY)
(3)Depreciation expenses (ths JPY)
(4) NOI = (1) ‐ (2) + (3)

1,978

1,467

519

3,692

4,754

1,488

1,727

2,223

7,861

11,976

4,350

5,903

9,762

7,109

7,042

6,085
24,07329,62332,43523,29022,05333,541

31,87324,739

NOI yield based on Acquisition price

4.8%

5.3%

5.3%

4.2%

4.5%

4.5%

4.6%

4.6%

NOI yield based on Appraisal value

5.2%

5.3%

5.0%

4.2%

5.7%

5.1%

4.9%

4.5%

(5) Rental income = (1)‐(2) (ths JPY)

21,761

20,45918,93916,15023,77924,764

17,697

17,988(6) Capital expenditure (ths JPY)

806

6,743

‐

‐

2,064

1,808

31,463‐(7) NCF = (4) ‐ (6) (ths JPY)

28,816

25,691

23,29022,05331,47630,064(6,723)24,073

Expense ratio = ((2) ‐ (3)) / (1)

25.6%

30.1%

14.8%

31.9%

32.0%

19.9%

31.2%

27.6%

Property Tax 2014 (ths JPY)

2,828

5,141

2,532

3,184

4,934

3,474

6,086

Mortgagee*

New Syndicate B

New Syndicate B

New Syndicate B

New Syndicate B

New Syndicate B

New Syndicate B

New Syndicate B

4,460
New Syndicate B

51

Portfolio List as of the end of Jun. 2014(Performance by Properties, etc.)

Invincible Investment Corporation (8963)

A34

A35

A36

Property Name

Belle Face Ueno
Okachimachi

Grand Rire Kameido

Growth Maison
Ikebukuro

Acquisition Date

August 1, 2006

August 3, 2006

Completion Date

February, 2006

March, 2006

Address

1‐27‐5 Higashi‐Ueno,
Taito Ward, Tokyo

3‐39‐12 Kameido, Koto
Ward, Tokyo

Transport Access

About 3 minutes walk About 14 minutes walk About 5 minutes walk About 14 minutes walk About 11 minutes walk About 8 minutes walk About 9 minutes walk About 7 minutes walkfrom Shin‐Okachimachi from Kameido Station from Ikebukuro Station from Yoga Station on from Tachikawa Station from Hatsudai Stationfrom Soshigayaokura from Nishi‐Kawaguchi
Station on Toei Lineon JR Lineon JR Line
Tokyu Lineon JR Lineon Keio Line
Station on Odakyu Line
Station on JR Line

Price
information

Property Number

Acquisition Price (JPY mn)
Investment ratio

Leasing
information

A39

A40

A41

Growth Maison Yoga

Route Tachikawa

Shibuya Honmachi
Mansion

City Heights Kinuta

Acseeds Tower
Kawaguchi Namiki

August 3, 2006

August 3, 2006

August 3, 2006

August 3, 2006

August 3, 2006

August 3, 2006

January, 2006

March, 2006

March, 1997

December, 1986

March, 1983

February, 2006

3‐31‐14 Nishi‐
Ikebukuro, Toshima
Ward, Tokyo

1‐15‐15 Okamoto,
Setagaya Ward, Tokyo

3‐7‐6 Nishikicho,
Tachikawa City, Tokyo

2‐35‐2 Honmachi,
Shibuya Ward, Tokyo

4‐13‐15 Kinuta,
Setagaya Ward, Tokyo

2‐5‐13 Namiki,
Kawaguchi City,
Saitama Prefecture

906

825

795

676

651

646

620

1.3%

1.2%

1.1%

1.0%

0.9%

0.8%

0.8%

0.8%

Book Value (mn JPY)

983

855

777

764

653

655

646

571

Appraisal Value as of Jun. 2014 ( mn JPY)

924

918

838

682

595

591

457

684

Total Leasable Area ( ㎡)
Leased area ( ㎡)
Occupancy
Rate

64

72

42

39

24

25

19

57

1,351.11

1,562.26

952.891,015.34

1,368.57

1,167.50

1,235.93

1,210.74
1,126.18

1,328.76

1,562.26

861.28988.33

1,322.13

1,167.50

1,235.93

Jun. 30, 2014

98.3%

100.0%

90.4%

97.3%

96.6%

100.0%

100.0%

93.0%

Dec. 31, 2013100.0%

100.0%

97.6%

100.0%

83.5%

96.4%

94.6%

96.5%

181 days

181 days

181 days

181 days

181 days

181 days

181 days

181 days

33,576

26,61926,20822,653

20,293

20,105

17,62925,146

29,643

26,61923,537

21,63018,825

19,274

16,894

23,217

Days of operation(1) Rental revenues (ths JPY)
Rent, common area fees (ths JPY)
Other income (ths JPY)
(2) Property related expenses (ths JPY)
Information on Profits and losses

A38

1,023

Total Rentable Units

Facility management fees (ths JPY)

3,933

‐

2,670

1,022

1,467

831

734

1,928

14,2397,967

10,461

8,528

9,382

8,056

5,019

10,704
3,010

4,832

230

2,825

2,232

2,731

3,902

1,494

(Repair costs (ths JPY))

50

82

64

175

669

2,322

285

203

(Utility expenses (ths JPY))

496

‐

580

385

454

227

87

414

1,670

1,702

1,057

1,355

1,053

902

956

1,127

44

47

41

41

41

35

35

38

Tax and other public charges (ths JPY)
Insurance expenses (ths JPY)
Other expenses(commissions paid, Trust fees, etc.) (ths JPY)
(3)Depreciation expenses (ths JPY)
(4) NOI = (1) ‐ (2) + (3)

2,337

500

1,289

994

1,483

1,067

1,059

1,488

5,355

5,487

5,247

3,905

4,071

2,148

1,472

5,038
19,481

24,692

24,13920,99418,02914,982

14,197

14,082

NOI yield based on Acquisition price

4.9%

5.4%

5.1%

4.6%

4.5%

4.4%

4.4%

6.3%

NOI yield based on Appraisal value

5.4%

5.3%

5.1%

5.3%

5.1%

4.8%

6.2%

5.7%

19,336

18,652

15,747

14,124

10,91012,04912,61014,442

‐

‐

‐

‐

781

1,360

291

‐

(7) NCF = (4) ‐ (6) (ths JPY)

24,692

24,13920,99418,02914,20012,837

13,791

19,481

Expense ratio = ((2) ‐ (3)) / (1)

26.5%

9.3%

19.9%

20.4%

26.2%

29.4%

20.1%

22.5%

Property Tax 2014 (ths JPY)

3,191

3,413

1,940

2,596

1,991

1,780

1,845

(5) Rental income = (1)‐(2) (ths JPY)
(6) Capital expenditure (ths JPY)
Reference
Information

A37

Mortgagee*

New Syndicate B

New Syndicate B

New Syndicate B

New Syndicate B

New Syndicate B

New Syndicate B

New Syndicate B

2,090
New Syndicate B

52

Portfolio List as of the end of Jun. 2014(Performance by Properties, etc.)

Invincible Investment Corporation (8963)

Property Number

A42

A43

Property Name

Capital Heights
Kagurazaka

College Square
Machida

A44

A45

A46

Belair Meguro

Wacore Tsunashima Ⅰ

Acquisition Date

August 3, 2006

August 1, 2006

August 1, 2006

August 3, 2006

August 3, 2006

August 1, 2006

August 3, 2006

February 1, 2010

Completion Date

May, 1987

March, 1984

October, 2005

February, 1991

September, 2001

October, 1993

March, 2006

August, 2004

5‐29‐51 Kaijin,
Funabashi City, Chiba
Prefecture

7‐3‐1 Arakawa,
Arakawa Ward, Tokyo

6‐19‐1 Shinbashi,
Minato Ward, Tokyo

About 10 minutes walkfrom Kaijin Station on
Keisei Line

About 4 minutes walkfrom Machiya Station
on Keisei Line

About 3 minute walkfrom Onarimon Station
on Toei Line
2,520

Transport Access

About 5 minutes walkAbout 10 minutes walk About 7 minutes walk About 9 minutes walkfrom Kagurazaka
from Machida Station from Meguro Station on
from Tsunashima
Station on Tokyo Metroon Odakyu Line
JR LineStation on Tokyu LineLine

Leasing
informationPrice
information

71‐1 Enokicho, Shinjuku
Ward, Tokyo

About 7 minutes walkfrom Nakamurabashi
Station on Seibu Line

A51

Growth Maison Kaijin College Square Machiya

City House Tokyo
Shinbashi

604

589

589

572

566

557

510

0.8%

0.8%

0.7%

0.7%

0.7%

0.7%

3.2%

Book Value (mn JPY)

616

570

572

547

530

531

477

2,405

Appraisal Value as of Jun. 2014 ( mn JPY)

540

529

551

499

550

454

500

2,720

Total Rentable Units

26

62

25

50

37

34

43

86

1,126.65

1,047.75

557.05907.46815.772,040.27

871.353,364.00
3,178.86

Total Leasable Area ( ㎡)
Leased area ( ㎡)
Occupancy
Rate

1,019.27

1,047.75

557.05853.61815.77

1,836.34

871.35

Jun. 30, 2014

90.5%

100.0%

100.0%

94.1%

100.0%

90.0%

100.0%

94.5%

Dec. 31, 2013

91.0%

100.0%

92.1%

82.1%

94.5%

100.0%

100.0%

100.0%

181 days

181 days

181 days

181 days

181 days

181 days

181 days

181 days

18,00018,26815,901

17,314

17,95821,922

14,70689,437

17,12918,268

14,952

16,706

16,812

20,103

14,70686,237(1) Rental revenues (ths JPY)
Rent, common area fees (ths JPY)
Other income (ths JPY)
(2) Property related expenses (ths JPY)
Information on Profits and losses

3‐4‐4 Nakamachi,
Machida City, Tokyo

A48

0.8%

Investment ratio

Days of operation

Reference
Information

Foros Nakamurabashi

2‐7‐47 Tarumachi,
1‐2‐15 Meguro, Meguro Kohoku‐ku, Yokohama 1‐6‐6 Koyama, Nerima
Ward, Tokyo
City, Kanagawa
Ward, Tokyo
Prefecture

Address

Acquisition Price (JPY mn)

A47

871

‐

948

607

1,146

1,818

‐

3,200

8,036

4,036

5,991

10,747

10,425

15,285

5,212

34,634

3,590

363

1,563

3,948

3,862

6,238

193

13,506(Repair costs (ths JPY))

731

363

17

888

1,863

904

193

353

(Utility expenses (ths JPY))

384

‐

197

640

329

1,150

‐

15

1,073

502

850

894

987

2,054

941

4,905

38

29

22

31

36

85

29

114

Facility management fees (ths JPY)

Tax and other public charges (ths JPY)
Insurance expenses (ths JPY)
Other expenses(commissions paid, Trust fees, etc.) (ths JPY)
(3)Depreciation expenses (ths JPY)
(4) NOI = (1) ‐ (2) + (3)

1,189

500

1,243

1,913

1,245

815

500

3,044

2,144

2,640

2,311

3,959

4,294

6,092

3,549

13,064
67,867

12,10816,872

12,22010,525

11,827

12,72813,042

NOI yield based on Acquisition price

4.0%

5.8%

4.2%

3.7%

4.2%

4.6%

5.1%

5.4%

NOI yield based on Appraisal value

4.5%

6.4%

4.5%

4.3%

4.3%

5.7%

5.3%

5.0%

(5) Rental income = (1)‐(2) (ths JPY)

9,963

14,231

9,909

6,566

7,533

6,636

9,493

54,803(6) Capital expenditure (ths JPY)

788

‐

412

382

243

12,481‐‐(7) NCF = (4) ‐ (6) (ths JPY)

11,31916,872

11,808

10,143

11,583247

13,042

67,867

Expense ratio = ((2) ‐ (3)) / (1)

32.7%

7.6%

23.1%

39.2%

34.1%

41.9%

11.3%

24.1%

Property Tax 2014 (ths JPY)

2,103

1,959

1,649

1,677

1,779

3,804

1,758

Mortgagee*

New Syndicate B

New Syndicate B

New Syndicate B

New Syndicate B

New Syndicate B

New Syndicate B

New Syndicate B

9,728
New Syndicate A

53

Portfolio List as of the end of Jun. 2014(Performance by Properties, etc.)

Property Number

Invincible Investment Corporation (8963)

A52

A53

A54

A56

A59

A61

A62

A63

Property Name

Winbell Kagurazaka

Nishiwaseda Cresent
MansionLexington Square
Akebonobashi

Casa Eremitaggio

Towa City Coop Shin‐otsukaⅡ

Bichsel Musashiseki

Lexel Mansion Ueno
Matsugaya

Towa City Coop
Sengencho

Acquisition Date

February 1, 2010

February 1, 2010

February 1, 2010

February 1, 2010

February 1, 2010

February 1, 2010

February 1, 2010

February 1, 2010

Completion Date

February, 2004

July, 1987

December, 2004

December, 2003

May, 1993

February, 1992

January, 2005

October, 1992

1‐22‐7 Sekimachi‐
Kita,Nerima Ward,Tokyo

3‐10‐2 Matsugaya,Taito
Ward, Tokyo

4‐338‐2 Sengencho,
Nishi‐ku,Yokohama
City, Kanagawa
Prefecture

About 3 minute walkfrom Musashi‐Seki
Station on Seibu Line

About 8 minute walkfrom Iriya Station on
Tokyo Metro Line

About 9 minutes walkfrom Tennomachi
Station on Sotetsu Line
1,110

3‐18‐9 Nishi‐
3‐8
6‐15 Shin‐Ogawacho,
1‐14‐15 Nakane,Meguro
Waseda,Shinjuku Ward, Yochomachi,Shinjuku
Shinjuku Ward, Tokyo
Ward, TokyoTokyo
Ward, Tokyo

Transport Access

About 8 minute walkfrom Iidabashi Station
on JR Line

Price
information

Address

Acquisition Price (JPY mn)

1,880

1,450

1,070

866

577

970

4.2%

2.4%

1.9%

1.4%

1.1%

0.7%

1.2%

1.4%

Book Value (mn JPY)

3,128

1,849

1,377

996

831

558

899

1,046

Appraisal Value as of Jun. 2014 ( mn JPY)

3,490

2,180

1,600

996

949

634

1,070

1,250

118

69

88

17

58

70

29

154

4,032.70

4,310.77

1,987.88

1,197.19

1,627.13

1,220.24

1,969.45

3,426.36

Leasing
information

Total Leasable Area ( ㎡)
Leased area ( ㎡)

3,975.60

3,986.36

1,854.11

1,161.61

1,510.74

1,150.45

1,897.28

3,051.95

Jun. 30, 2014

98.6%

92.5%

93.3%

97.0%

92.8%

94.3%

96.3%

89.1%

Dec. 31, 2013

96.5%

94.8%

89.7%

90.0%

89.9%

92.9%

100.0%

90.5%

Days of operation

181 days

181 days

181 days

181 days

181 days

181 days

181 days

181 days(1) Rental revenues (ths JPY)

105,41070,93147,71528,49233,31524,02833,83959,396

97,203

66,69245,44726,65932,32722,70031,09754,454

Occupancy
Rate

Rent, common area fees (ths JPY)

8,207

4,238

2,268

1,833

987

1,328

2,741

4,941

35,567

24,27019,021

15,822

12,98911,89615,111

31,488

8,477

11,940

4,504

3,444

4,828

5,884

3,542

18,030

270

2,921

117

502

240

2,498

146

580

(Utility expenses (ths JPY))

1,901

731

553

730

2

609

563

9

Tax and other public charges (ths JPY)

6,265

3,508

2,175

1,695

1,372

1,167

1,900

3,005

148

106

59

46

52

48

58

107

Other income (ths JPY)
(2) Property related expenses (ths JPY)
Information on Profits and losses

About 8 minute walkAbout 2 minutes walkfrom Toritsudaigaku from Shinotsuka Station
Station on Tokyu Lineon Tokyo Metro Line

3,260
Investment ratio

Total Rentable Units

Reference
Information

About 8 minute walkAbout 10 minute walkfrom Takadanobaba
from Akebonobashi
Station on Tokyo Metro
Station on Toei LineLine

5‐49‐7 Higashi‐
Ikebukuro, Toshima
Ward, Tokyo

Facility management fees (ths JPY)
(Repair costs (ths JPY))

Insurance expenses (ths JPY)
Other expenses(commissions paid, Trust fees, etc.) (ths JPY)
(3)Depreciation expenses (ths JPY)
(4) NOI = (1) ‐ (2) + (3)

4,947

2,461

3,667

1,641

2,009

2,177

1,393

2,767

15,728

6,253

8,615

8,994

4,727

2,618

8,216

7,578
35,48685,571

52,91437,30921,66425,052

14,75026,944

NOI yield based on Acquisition price

5.3%

5.7%

5.2%

4.1%

5.8%

5.2%

5.6%

6.4%

NOI yield based on Appraisal value

4.9%

4.9%

4.7%

4.4%

5.3%

4.7%

5.1%

5.7%

(5) Rental income = (1)‐(2) (ths JPY)

69,842

46,66028,693

12,66920,325

12,132

18,72827,907(6) Capital expenditure (ths JPY)

2,562

5,456

343

529

694

‐

‐

736

(7) NCF = (4) ‐ (6) (ths JPY)

83,00947,45836,965

21,13424,35814,75026,94434,749

Expense ratio = ((2) ‐ (3)) / (1)

18.8%

25.4%

21.8%

24.0%

24.8%

38.6%

20.4%

40.3%

Property Tax 2014 (ths JPY)

12,208

6,958

4,339

2,965

2,714

2,311

3,603

Mortgagee*

New Syndicate A

New Syndicate A

New Syndicate A

New Syndicate A

New Syndicate A

New Syndicate A

New Syndicate A

5,915
New Syndicate A

54

Portfolio List as of the end of Jun. 2014(Performance by Properties, etc.)

Property Number

Invincible Investment Corporation (8963)

A64

A65

A66

A71

A72

A73

A75

A76

Property NameRoyal Park Omachi

Lexington Square
Haginomachi

Visconti Kakuozan

Lexington Square
Daitabashi

Lexington Square
Honjo‐Azumabashi

AMS TOWER Minami
6‐Jo

Spacia Ebisu

Neo Prominence

Acquisition Date

February 1, 2010

February 1, 2010

February 1, 2010

February 1, 2010

February 1, 2010

February 1, 2010

February 1, 2010

September 28, 2012

Completion Date

February, 1993

August, 2005

September, 2003

November, 2006

October, 2006

February, 2007

February, 2003

April, 1994

2‐5‐15 Minami 6‐Jo
Nishi, Chuo‐ku,
Sapporo City,
Hokkaido

3‐6‐22 Higashi,Shibuya
Ward, Tokyo

3‐21‐5 Shimo, Kita
Ward, Tokyo

About 8 minute walkfrom Ebisu Station on
JR LineAbout 1 minute walkfrom Shimo Station on
Tokyo Metro Line
1,660

2‐11‐10 Omachi, Aoba‐ 1‐15‐16 Haginomachi,ku, Sendai City, Miyagi Miyagino‐ku, Sendai
Prefecture
City, Miyagi Prefecture

2‐44 Otanacho,
Chikusa‐ku,Nagoya
City, Aichi Prefecture

Transport Access

About 12 minute walkfrom Hirose‐Dori
Station on Sendai
Subway Nanboku Line

About 7 minute walkAbout 10 minute walkAbout 2 minute walk Hosui Susukino Stationfrom Kakuozan Stationfrom Daitabashi Station from Honjo‐azumabashi on Sapporo Subway
on Nagoya Subway
on Keio Line
Station on Toei Line
Toho Line
Higashiyama Line

Leasing
informationPrice
information

Address

Acquisition Price (JPY mn)

415

330

255

977

511

1,180

7,010

0.5%

0.4%

0.3%

1.3%

0.7%

1.5%

9.0%

2.1%

Book Value (mn JPY)

393

307

240

906

468

1,057

6,693

1,656

Appraisal Value as of Jun. 2014 ( mn JPY)

508

422

244

1,040

549

1,120

6,930

1,720

Total Rentable Units

51

39

8

43

33

120

109

52

1,929.59

1,528.58

705.751,430.64

784.744,460.56

7,794.91

3,574.70

Investment ratio

Total Leasable Area ( ㎡)
Leased area ( ㎡)
Occupancy
Rate

1,748.21

1,488.53

705.75

1,299.82

760.04

4,095.17

7,015.54

3,177.27

Jun. 30, 2014

90.6%

97.4%

100.0%

90.9%

96.9%

91.8%

90.0%

88.9%

Dec. 31, 2013

95.0%

97.4%

100.0%

93.7%

100.0%

97.1%

89.2%

96.6%

181 days

181 days

181 days

181 days

181 days

181 days

181 days

181 days

Days of operation(1) Rental revenues (ths JPY)
Rent, common area fees (ths JPY)

Information on Profits and losses

24,95618,023

11,774

31,377

17,881

50,486

186,31263,037

21,547

16,021

10,782

29,604

17,433

48,129165,420

53,332

3,409

2,001

991

1,773

448

2,357

20,891

9,704

13,619

8,376

6,692

15,081

8,529

27,27872,80830,448

6,870

2,578

2,872

3,022

1,710

7,455

15,46814,324

490

‐

104

40

‐

813

1,346

4,000

(Utility expenses (ths JPY))

2,008

660

178

571

346

1,746

2,514

4,334

Tax and other public charges (ths JPY)

1,591

1,148

920

1,544

809

2,147

8,662

3,508

61

38

22

42

30

120

241

125

Other income (ths JPY)
(2) Property related expenses (ths JPY)

Reference
Information

About 9 minute walkfrom Miyaginohara
Station on JR Sengoku
Line

4‐20‐6
1‐33‐8 Izumi,Suginami
Higashikomagata,Sumi
Ward, Tokyoda Ward, Tokyo

Facility management fees (ths JPY)
(Repair costs (ths JPY))

Insurance expenses (ths JPY)
Other expenses(commissions paid, Trust fees, etc.) (ths JPY)
(3)Depreciation expenses (ths JPY)
(4) NOI = (1) ‐ (2) + (3)

978

1,059

1,092

2,468

1,085

3,434

11,561

2,595

4,118

3,550

1,784

8,002

4,893

14,11936,874

9,894
42,482

15,454

13,198

6,866

24,29914,24537,327150,378

NOI yield based on Acquisition price

7.5%

8.1%

5.4%

5.0%

5.6%

6.4%

4.3%

5.2%

NOI yield based on Appraisal value

6.1%

6.3%

5.7%

4.7%

5.2%

6.7%

4.4%

5.0%

(5) Rental income = (1)‐(2) (ths JPY)

11,336

9,647

5,081

16,296

9,352

23,208113,50332,588(6) Capital expenditure (ths JPY)

2,328

361

‐

‐

‐

742

595

567

(7) NCF = (4) ‐ (6) (ths JPY)

13,125

12,837

6,866

24,29914,24536,584

149,782

41,915

Expense ratio = ((2) ‐ (3)) / (1)

38.1%

26.8%

41.7%

22.6%

20.3%

26.1%

19.3%

32.6%

Property Tax 2014 (ths JPY)

3,063

2,233

1,739

3,062

1,600

8,497

17,192Mortgagee*

New Syndicate A

New Syndicate A

New Syndicate A

New Syndicate A

New Syndicate A

New Syndicate A

New Syndicate A

7,000First Lending B

55

Portfolio List as of the end of Jun. 2014(Performance by Properties, etc.)

Property Number

A77

A78

Property Name

Invoice Shin‐KobeResidence

Cosmo Court
Motomachi

Acquisition Date

September 28, 2012

Completion Date

January, 2007

Price
information

Acquisition Price (JPY mn)

Leasing
information

A81

A82

A83

A84

Revest Honjin

Revest Matsubara

Sun Terrace Minami
IkebukuroAlba Noritake
Shinmachi

Revest Meieki Minami

Revest Heian

September 28, 2012

September 28, 2012

September 28, 2012

September 28, 2012

September 28, 2012

September 28, 2012

September 28, 2012

March, 2007

March, 2007

March, 2007

February, 1998

November, 2006

February, 2007

November, 2006

2‐13 Torii DoriNakamura
Ward,Nagoya City,
Aichi Prefecture

Investment ratio

3‐13‐12 Matsubara
Naka Ward, Nagoya
City, Aichi Prefecture

3‐6‐8 Noritake
2‐13‐33 Meiekiminami,
Shinmachi, Nishi Ward,
Nakamura Ward,
Nagoya City, Aichi
Nagoya City, Aichi
Prefecture
Prefecture

2‐22‐6 Minami
Ikebukuro, Toshima
Ward, Tokyo

2‐13‐17 Heian, Kita
Ward, Nagoya City,
Aichi Prefecture

About 7 minute walkAbout 12 minute walkAbout 3 minute walkAbout 5 minute walk from Kamejima Station About 9 minute walkfrom Higashi Betsuin
from Heian‐dori Stationfrom Ikebukuro Station on Nagoya Municipal from Nagoya Station on
Station on Nagoya
on Nagoya Municipalon JR Line
Subway Higashiyama JR Tokaido Main Line
Municipal Subway
Subway Meijo LineLine
Meijo Line
657
625
608
597
595

1.6%

1.2%

0.9%

0.8%

0.8%

0.8%

0.8%

Book Value (mn JPY)

1,250

966

669

653

620

604

594

591

Appraisal Value as of Jun. 2014 ( mn JPY)

1,300

1,040

718

720

667

644

649

619

Total Rentable Units
Total Leasable Area ( ㎡)
Leased area ( ㎡)
Occupancy
Rate

0.8%

81

82

80

70

38

64

61

40

2,773.71

2,310.49

1,933.80

1,955.40

898.701,731.68

1,634.60

1,554.03
1,529.03

2,617.83

2,088.16

1,836.65

1,784.06

804.101,587.26

1,529.79

Jun. 30, 2014

94.4%

90.4%

95.0%

91.2%

89.5%

91.7%

93.6%

98.4%

Dec. 31, 2013

95.4%

98.7%

93.7%

98.8%

97.4%

96.5%

98.5%

98.4%

181 days

181 days

181 days

181 days

181 days

181 days

181 days

181 days

45,92736,80231,30428,954

21,891

25,422

24,91923,57042,90935,91628,52327,166

19,48724,28823,70822,942

Days of operation(1) Rental revenues (ths JPY)
Rent, common area fees (ths JPY)
Other income (ths JPY)
(2) Property related expenses (ths JPY)
Information on Profits and losses

A80

About 6 minute walkAbout 2 minute walkAbout 1 minute walkfrom Shin‐Kobe Stationfrom Honjin Station on
from Motomachi
on Kobe Municipal
Nagoya Municipal
Station on JR Tokaido
Subway Seishin‐Yamate
Subway Higashiyama
Main Line
Line
Line
1,260
973
674

Transport Access

3,018

886

2,781

1,788

2,403

1,134

1,210

627

25,24917,931

15,064

13,051

11,045

13,383

12,638

10,560
2,045

6,928

4,572

3,989

3,335

4,037

3,741

3,056

(Repair costs (ths JPY))

114

592

763

21

575

963

246

2

(Utility expenses (ths JPY))

603

613

358

366

438

357

558

304

2,754

2,307

1,784

1,855

906

1,729

1,650

1,404

73

71

63

57

30

57

60

42

Facility management fees (ths JPY)

Tax and other public charges (ths JPY)
Insurance expenses (ths JPY)
Other expenses(commissions paid, Trust fees, etc.) (ths JPY)
(3)Depreciation expenses (ths JPY)
(4) NOI = (1) ‐ (2) + (3)

4,041

1,007

1,846

838

1,212

1,005

1,002

708

11,451

9,972

7,380

6,963

4,857

6,849

6,868

6,359
19,36932,13028,84323,62022,867

15,703

18,88819,150NOI yield based on Acquisition price

5.1%

6.0%

7.1%

7.0%

5.1%

6.3%

6.5%

6.6%

NOI yield based on Appraisal value

5.0%

5.6%

6.6%

6.4%

4.7%

5.9%

6.0%

6.3%

20,67818,871

16,23915,903

10,845

12,03912,281

13,010

‐

‐

545

594

‐

‐

542

‐

(7) NCF = (4) ‐ (6) (ths JPY)

32,13028,84323,07522,272

15,703

18,88818,607

19,369

Expense ratio = ((2) ‐ (3)) / (1)

30.0%

21.6%

24.5%

21.0%

28.3%

25.7%

23.2%

17.8%

Property Tax 2014 (ths JPY)

5,115

4,595

3,557

3,699

1,773

3,448

3,289

(5) Rental income = (1)‐(2) (ths JPY)
(6) Capital expenditure (ths JPY)
Reference
Information

A79

3‐3‐8 Ikutacho Chuo 3‐12‐20 Motomachi DoriWard,Kobe City, Hyogo Chuo Ward,Kobe City,
Prefecture
Hyogo Prefecture

Address

Invincible Investment Corporation (8963)

Mortgagee*

Second Lending B

Second Lending B

Third Lending B

Third Lending B

Second Lending B

Fourth Lending B

First Lending B

2,797
Fourth Lending B

56

Portfolio List as of the end of Jun. 2014(Performance by Properties, etc.)

Property Number

A85

Property Name

Vendir Hamaotsu
EkimaeSalvo Sala

Acquisition Date

September 28, 2012

Completion Date

February, 2007

1‐2‐15 Hama Otsu,Otsu
City, Shiga Prefecture

2‐6‐21 Shimanouchi
Chuo Ward, Osaka
City, Osaka Prefecutre

About 1 minute walkfrom Hamaotsu Station
on Keihan Keishin Lineand Ishiyama Sakamoto
Line
581

About 6 minute walkfrom Nagahoribashi
Station on Osaka
Municipal Subway
Sakaisuji Line
544

0.7%

0.7%

Address

Price
information

Transport AccessAcquisition Price (JPY mn)
Investment ratio

A86

Leasing
information

A88

A89

A90

A91

A92

Excellente Kagurazaka

Luna Court Edobori

Winntage Kobe
Motomachi

Queenʹs Court
Fukuzumi

Corp Higashinotoin

Belair Oimachi

September 28, 2012

September 28, 2012

September 28, 2012

September 28, 2012

September 28, 2012

September 28, 2012

September 28, 2012

January, 2007

January, 2007

February, 2004

May, 2007

September, 2006

February, 2004
380‐1 Kawaranomachi,
7‐2‐2 Motomachi Dori,
3‐4‐11 Edobori, Nishi
Higashinotoin Dori Nijo
128‐1 Yamabukicho
1‐3‐10 Fukuzumi, Koto
Ward, Osaka City,
Chuo Ward,Kobe City,
Kudaru, Chukyo Ward
Shinjuku Ward,Tokyo
Ward, Tokyo
Osaka Prefecture
Hyogo Prefecture
Kyoto City, Kyoto
Prefecture
About 5 minute walkAbout 6 minutes walkAbout 4 minute walkAbout 2 minute walkAbout 7 minute walkfrom Karasuma Oikefrom Edogawabashi
from Awaza Station on from Nishi‐Motomachi from Monzen‐Nakacho
Station on Kyoto
Station on Tokyo
Osaka Municipal
Station on Kobe Kosoku Station on Tokyo Metro
Municipal Subway
Metoro Line
Subway Chuo Line
Line
Line
Karasuma Line
543
525
512
456
446
0.7%

0.7%

0.7%

0.6%

0.6%

April, 2006
5‐14‐17 Higashi Oi,
Shinagawa Ward,Tokyo

About 3 minute walkfrom Oimachi Station
on JR Line
412
0.5%

576

542

542

522

508

454

444

411

Appraisal Value as of Jun. 2014 ( mn JPY)

669

577

569

549

553

497

474

455

Total Leasable Area ( ㎡)
Leased area ( ㎡)
Occupancy
Rate

81

54

33

50

57

25

42

26

2,670.66

1,428.12

701.92

1,185.50

1,433.35

765.181,029.05

530.602,516.01

1,307.25

681.291,044.08

1,305.31

765.18929.56510.10Jun. 30, 2014

94.2%

91.5%

97.1%

88.1%

91.1%

100.0%

90.3%

96.1%

Dec. 31, 2013100.0%

96.7%

91.2%

98.0%

86.0%

100.0%

95.1%

96.4%

181 days

181 days

181 days

181 days

181 days

181 days

181 days

181 days

Days of operation(1) Rental revenues (ths JPY)
Rent, common area fees (ths JPY)

32,42623,992

17,842

20,912

22,148

16,521

16,98015,41530,246

22,95017,357

19,991

21,41015,32015,776

14,404

2,180

1,042

484

921

737

1,200

1,204

1,011

15,567

11,050

8,227

9,404

12,601

7,829

8,346

6,003

5,203

3,155

1,873

2,633

2,879

2,465

2,638

1,571

‐

91

234

102

25

701

28

‐

(Utility expenses (ths JPY))

2,206

956

293

924

503

200

663

215

Tax and other public charges (ths JPY)

1,954

1,577

778

1,173

1,587

761

903

656

68

47

28

36

44

25

32

21

Other income (ths JPY)
(2) Property related expenses (ths JPY)
Information on Profits and losses

A87

Book Value (mn JPY)
Total Rentable Units

Facility management fees (ths JPY)
(Repair costs (ths JPY))

Insurance expenses (ths JPY)
Other expenses(commissions paid, Trust fees, etc.) (ths JPY)
(3)Depreciation expenses (ths JPY)
(4) NOI = (1) ‐ (2) + (3)

1,383

825

1,351

496

2,284

1,382

991

1,077

6,958

5,444

4,194

5,064

5,805

3,195

3,780

2,675

23,817

18,386

13,80916,572

15,351

11,886

12,41412,087

NOI yield based on Acquisition price

8.3%

6.8%

5.1%

6.4%

6.0%

5.3%

5.6%

5.9%

NOI yield based on Appraisal value

7.2%

6.4%

4.9%

6.1%

5.6%

4.8%

5.3%

5.4%

16,85912,942

9,615

11,508

9,546

8,691

8,634

9,412

(5) Rental income = (1)‐(2) (ths JPY)
(6) Capital expenditure (ths JPY)
Reference
Information

Invincible Investment Corporation (8963)

‐

‐

‐

‐

‐

‐

‐

‐

(7) NCF = (4) ‐ (6) (ths JPY)

23,817

18,386

13,80916,572

15,351

11,886

12,41412,087

Expense ratio = ((2) ‐ (3)) / (1)

26.6%

23.4%

22.6%

20.8%

30.7%

28.1%

26.9%

21.6%

Property Tax 2014 (ths JPY)

3,901

2,969

1,476

2,336

3,164

1,453

1,804

Mortgagee*

Fourth Lending B

First Lending B

Second Lending B

First Lending B

First Lending B

Third Lending B

Third Lending B

1,321
Fourth Lending B

57

Portfolio List as of the end of Jun. 2014(Performance by Properties, etc.)

Invincible Investment Corporation (8963)

Property Number

A93

A94

Property Name

Siete Minami‐
Tsukaguchi

Prime Life Sannomiya
Isogami Koen

A95

Acquisition Date

September 28, 2012

September 28, 2012

September 28, 2012

Completion Date

January, 2007

November, 2006

December, 2006

Transport Access

About 7 minute walkfrom Tsukaguchi
Station on JR
Fukuchiyama Line

Leasing
informationPrice
information

Address

3‐18 Minami
4‐3‐23 Isogamidori
Tsukaguchimachi,,Chuo Ward, Kobe City
Amagasaki City, Hyogo
Hyogo Prefecture
Prefecture

A98

A99

West Avenue

Little River
Honmachibashi

4‐10‐3 Sakuragawa
Naniwa Ward, Osaka
City, Osaka Prefecture

Prime Life Mikage

September 28, 2012

September 28, 2012

September 28, 2012

September 28, 2012－

September, 2001

October, 1991

June, 2007

January, 2007－

1‐34 Honmachibashi
Chuo Ward, Okasa
City, Osaka Prefecture

2‐25‐11 Mikage
Tsukamachi Higashi
Nada Ward, Kobe City,
Hyogo Prefecture－

About 5 minute walkfrom Ishiyagawa
Station on Hanshin
Main Line

－

4‐1‐2 Shinkawamachi
Minato Ward,Nagoya
City, Aichi Prefecture

About 4 minute walkAbout 9 minute walkfrom Sakuragawa
from Tokai‐dori Station
Station on Osakaon Nagoya Municipal
Municipal Subway
Subway Meiko LineSennichimae Line355
335

1‐5‐17 Nishi,KunitachiCity, Tokyo

AtotalSubtotal of Residential

374

373

331

0.5%

0.5%

0.5%

0.4%

0.4%

0.4%

0.4%

74.5%

Book Value (mn JPY)

373

371

355

334

328

310

295

55,874

Appraisal Value as of Jun. 2014 ( mn JPY)

402

389

382

372

338

335

312

58,865

Total Rentable Units

40

32

21

44

40

31

28

3,413

1,020.86

789.12992.76

1,477.62

794.80974.81

761.18109,584.45
102,771.60

Acquisition Price (JPY mn)
Investment ratio

Total Leasable Area ( ㎡)
Leased area ( ㎡)
Occupancy
Rate

About 8 minute walkfrom Sannomiya Station
on JR Tokaido MainLine

About 14 minute walkfrom Nishi‐Kunitachi
Station on JR Line297

58,083

944.44789.12913.481,477.62

675.58914.91

711.13

Jun. 30, 2014

92.5%

100.0%

92.0%

100.0%

85.0%

93.9%

93.4%

93.8%

Dec. 31, 2013

97.5%

93.8%

96.0%

97.7%

90.0%

96.9%

96.6%

95.4%

181 days

181 days

181 days

181 days

181 days

181 days

181 days

16,437

14,64014,842

17,19012,666

12,971

11,8092,022,623

15,33013,936

14,211

14,491

11,85912,88011,623

1,872,228(1) Rental revenues (ths JPY)
Rent, common area fees (ths JPY)
Other income (ths JPY)
(2) Property related expenses (ths JPY)
Information on Profits and losses

A97

About 8 minute walkfrom Sakaisuji‐
Hommachi Station on
Osaka Municipal
Subway Chuo Line
310

Days of operation

－

1,106

703

631

2,698

807

90

185

150,395

8,623

7,156

7,681

8,244

7,387

6,238

5,953

909,743
285,689

3,323

1,719

2,013

2,173

2,629

1,734

1,383

(Repair costs (ths JPY))

15

92

‐

40

163

‐

‐

35,457(Utility expenses (ths JPY))

383

236

272

243

225

289

162

43,380Tax and other public charges (ths JPY)

983

846

1,022

886

566

943

760

110,390

Insurance expenses (ths JPY)

44

24

28

41

22

25

20

3,584

Facility management fees (ths JPY)

Other expenses(commissions paid, Trust fees, etc.) (ths JPY)
(3)Depreciation expenses (ths JPY)
(4) NOI = (1) ‐ (2) + (3)

1,031

1,140

1,258

1,344

1,238

829

827

112,991

3,240

3,426

3,359

3,798

2,931

2,705

2,960

397,087
1,509,967

11,053

10,91010,521

12,744

8,210

9,439

8,816

NOI yield based on Acquisition price

6.0%

5.9%

6.0%

7.7%

5.0%

6.1%

6.0%

5.2%

NOI yield based on Appraisal value

5.5%

5.7%

5.6%

6.9%

4.9%

5.7%

5.7%

5.2%

7,813

7,483

7,161

8,945

5,278

6,733

5,856

1,112,880

‐

‐

483

1,281

753

‐

‐

78,747(7) NCF = (4) ‐ (6) (ths JPY)

11,053

10,91010,038

11,462

7,457

9,439

8,816

1,431,220

Expense ratio = ((2) ‐ (3)) / (1)

32.8%

25.5%

29.1%

25.9%

35.2%

27.2%

25.3%

25.3%

Property Tax 2014 (ths JPY)

1,956

1,684

1,927

1,746

1,123

1,878

1,516

219,897(5) Rental income = (1)‐(2) (ths JPY)
(6) Capital expenditure (ths JPY)
Reference
Information

A96

HERMITAGE NANBA Century Park Shinkawa
WEST
1‐bankan

Mortgagee*

Fourth Lending B

Third Lending B

Second Lending B

Fourth Lending B

Fourth Lending B

Second Lending B

Fourth Lending B－

58

Portfolio List as of the end of Jun. 2014(Performance by Properties, etc.)

Invincible Investment Corporation (8963)

Property Number

B8

B9

B14

Property Name

Kindai Kagaku Sha
Building

Shinjuku Island

Lexington Plaza
Nishigotanda

Acquisition Date

August 1, 2006

March 26, 2007

Completion Date

June, 1991

January, 1995

2‐7‐15, Ichigaya
Tamachi,Shinjuku
Ward, Tokyo

Address

Price
information

Acquisition Price (JPY mn)

Leasing
information

B18

Cross Square NAKANO

Ohki Aoba Building

AEON TOWN
Sukagawa

February 1, 2010

February 1, 2010

February 1, 2010

February 1, 2010

February 1, 2010－

June, 1993

January, 1993

July, 1997

December, 2005

October, 2005－

105
Furukawa,Sukagawa
City, Fukushima
Prefecture

－

－

－

5‐24‐18 Nakano,
Nakano Ward, Tokyo

9‐7 Futsukacho, Aoba‐ 3‐1‐50 Hachiman, Aoba‐ku, Sendai City, Miyagi ku,Sendai City, Miyagi
Prefecture
Prefecture

About 3 minute walkAbout 5 minute walkAbout 4 minute walkAbout 9 minute walkfrom Nishi‐Shinjuku
from Kita‐Yobancho
from Fudomae Station from Nakano Station on
Station on Tokyo Metro
Station on Sendai
on Tokyu Line
JR LineLine
Subway Nanboku Line－

BtotalSubtotal of Offices andCommercial Facilities

715

4,880

1,060

816

3,280

2,320

1.7%

0.9%

6.3%

1.4%

1.0%

4.2%

3.0%

18.4%

Book Value (mn JPY)

1,234

712

4,801

1,070

761

3,184

2,091

13,855

Appraisal Value as of Jun. 2014 ( mn JPY)

1,010

556

4,140

938

644

3,330

2,190

12,808

13

1

11

45

13

18

1

102

1,451.54

526.43

6,033.58

2,145.00

2,178.41

8,419.15

18,440.58

39,194.69
38,355.67

Total Leasable Area ( ㎡)
Leased area ( ㎡)

14,372

1,379.14

526.43

6,033.58

1,378.38

2,178.41

8,419.15

18,440.58

Jun. 30, 2014

95.0%

100.0%

100.0%

64.3%

100.0%

100.0%

100.0%

97.9%

Dec. 31, 2013100.0%

100.0%

90.1%

67.6%

100.0%

100.0%

100.0%

96.7%

181 days

181 days

181 days

181 days

181 days

181 days

181 days

38,735(Note)

126,690

28,68540,559163,313

142,116557,297

Rent, common area fees (ths JPY)

34,055(Note)

111,945

23,56832,159131,345

142,116

492,387

Other income (ths JPY)

4,680

(Note)

14,745

5,116

8,399

31,967‐64,90923,660(Note)

75,701

15,22330,247

79,412

94,359328,462

7,736(Note)

27,322

6,795

11,061

46,19356,124160,072830(Note)

1,533

390

1,206

1,089

‐

5,048

(Utility expenses (ths JPY))

3,742(Note)

16,703

2,616

5,166

33,854‐62,082

Tax and other public charges (ths JPY)

4,366

(Note)

12,684

3,851

4,016

11,555

7,967

47,57874(Note)

200

85

106

165

205

918

Occupancy
Rate
Days of operation(1) Rental revenues (ths JPY)

(2) Property related expenses (ths JPY)
Information on Profits and losses

B17
Lexington Plaza
Hachiman

1,301
Investment ratio

Total Rentable Units

Reference
Information

B16

5‐2‐4
6‐5‐1 Nishi‐Shinjuku,
Nishigotanda,Shinagaw
Shinjuku Ward, Tokyoa Ward, Tokyo

About 3 minute walkfrom Ichigaya Station
on Tokyo Metro Line

Transport Access

B15

Facility management fees (ths JPY)
(Repair costs (ths JPY))

Insurance expenses (ths JPY)
Other expenses(commissions paid, Trust fees, etc.) (ths JPY)
(3)Depreciation expenses (ths JPY)
(4) NOI = (1) ‐ (2) + (3)

－

1,850

(Note)

9,350

740

829

743

623

14,137

9,632(Note)

26,144

3,749

14,23320,75529,438105,755
334,591

24,707(Note)

77,133

17,211

24,545

104,655

77,195

NOI yield based on Acquisition price

3.8%

2.6%

3.2%

3.3%

6.1%

6.4%

6.7%

4.7%

NOI yield based on Appraisal value

4.9%

3.3%

3.8%

3.7%

7.7%

6.3%

7.1%

5.3%

(5) Rental income = (1)‐(2) (ths JPY)

15,075(Note)

50,98913,461

10,312

83,90047,756

228,835(6) Capital expenditure (ths JPY)

17,423‐

16,148225

16,075

7,175‐

57,049(7) NCF = (4) ‐ (6) (ths JPY)

7,283

(Note)

60,984

16,9858,469

97,48077,195277,541

Expense ratio = ((2) ‐ (3)) / (1)

36.2%

46.8%

39.1%

40.0%

39.5%

35.9%

45.7%

40.0%

Property Tax 2014 (ths JPY)

8,478

6,228

23,672

7,664

7,737

22,39913,84890,028Mortgagee*

New Syndicate B

New Syndicate A

New Syndicate A

New Syndicate A

New Syndicate A

New Syndicate A

New Syndicate A－

59

Portfolio List as of the end of Jun. 2014(Performance by Properties, etc.)

C1

Property Name

Stop Parking Kanda‐
SudachoAcquisition Date

January 22, 2007－

Completion Date‐－

Address

1‐22‐7, 1‐22‐15 Kanda
sudacho, Chiyoda
Ward, Tokyo－

Transport Access

About 4 minutes walkfrom Kanda Station on
JR Line－Price
information

Property Number

Acquisition Price (JPY mn)
Investment ratio

97

97
0.1%

Book Value (mn JPY)

100

100

Appraisal Value as of Jun. 2014 ( mn JPY)

105

105

Leasing
information

Total Leasable Area ( ㎡)
Leased area ( ㎡)
Jun. 30, 2014

Occupancy
Rate

Dec. 31, 2013

Days of operation(1) Rental revenues (ths JPY)
Rent, common area fees (ths JPY)

1

1

81.04

81.04

81.04

81.04

100.0%

100.0%

100.0%
181 days

Information on Profits and losses

100.0%
－

2,443

2,443

2,443

2,443

‐

‐

706

706

Facility management fees (ths JPY)‐‐

(Repair costs (ths JPY))‐‐(Utility expenses (ths JPY))

‐

‐

253

253

‐

‐

439

439

Other income (ths JPY)
(2) Property related expenses (ths JPY)

Tax and other public charges (ths JPY)
Insurance expenses (ths JPY)
Other expenses(commissions paid, Trust fees, etc.) (ths JPY)
(3)Depreciation expenses (ths JPY)

13

13

1,750

1,750

NOI yield based on Acquisition price

3.6%

3.6%

NOI yield based on Appraisal value

3.4%

3.4%

1,736

1,736

(4) NOI = (1) ‐ (2) + (3)(5) Rental income = (1)‐(2) (ths JPY)
(6) Capital expenditure (ths JPY)
Reference
Information

CtotalSubtotal of Seniors
and Parking lots

0.1%

Total Rentable Units‐‐(7) NCF = (4) ‐ (6) (ths JPY)

1,750

1,750

Expense ratio = ((2) ‐ (3)) / (1)

28.4%

28.4%

Property Tax 2014 (ths JPY)

505

Mortgagee*

New Syndicate A

Invincible Investment Corporation (8963)

505
－

60

Portfolio List as of the end of Jun. 2014(Performance by Properties, etc.)

Invincible Investment Corporation (8963)

Property Number

D1

D2

Property Number

Property Name

Hotel MyStays Kanda

Hotel MyStays Asakusa

Subtotal of Hotels

Property Name

Total
‐

May 23, 2014

May 23, 2014‐

Acquisition Date

Completion Date

December, 2005

January, 1990‐

Completion Date‐

1‐2‐2 Iwamoto‐cho,
Chiyoda Ward, Tokyo
About 6 minute walkfrom Kanada Station
on JR Yamanote Lineand Tokyo Metro Line
2,851

1‐21‐11 Honjo,
Sumida Ward, Tokyo‐

Address‐

About 4 minute walkfrom Kuramae Station
on Toei Oedo Line‐

Transport Access‐

Investment ratio

3.7%

Leasing
information
Information on Profits and losses

5,435

3.3%

7.0%

Book Value (mn JPY)

2,907

2,625

5,532

Appraisal Value as of Jun. 2014 (mn JPY)

2,880

2,610

5,490

Total Rentable Units
Total Leasable Area (㎡)Leased area (㎡)Jun. 30, 2014

Occupancy
Rate

Dec. 31, 2013

126

160

286

2,585.72

3,327.38

5,913.10

2,585.72

3,327.38

5,913.10

100.0%

100.0%

100.0%－－－

39 days

39 days(1) Rental revenues (ths JPY)

27,512

29,90357,416

GOP (ths JPY)

27,512

29,90357,416

77,988Investment ratio

Other income (ths JPY)

‐

‐

‐

3,464

3,754

7,219

Facility management fees (land rent) (ths JPY) ‐(a)

‐

‐

‐

(Repair costs (ths JPY))

‐

‐

‐

(Utility expenses (ths JPY))

‐

‐

‐

Tax and other public charges (ths JPY)‐(b)

‐

‐

‐

Insurance expenses (ths JPY)‐(c)

11

5

17

Other expenses (Trust fees) (ths JPY) ‐(d)

107

106

214

Book Value (mn JPY)

75,363
77,2683,802

Total Leasable Area (㎡)154,773.28

Leased area (㎡)Occupancy
Rate

147,121.41
Jun. 30, 2014

95.1%

Dec. 31, 2013

96.3%

Other income (ths JPY)

40,506(Utility expenses (ths JPY))

105,463

Tax and other public charges (ths JPY)

158,222

Insurance expenses (ths JPY)NOI yield based on Acquisition price

9.0%

10.8%

9.8%

NOI yield based on Acquisition priceNOI yield based on Appraisal value

8.9%

10.7%

9.7%

NOI yield based on Appraisal value

24,047

26,14950,196‐‐57,184

4,520

Other expenses(commissions paid, Trust fees, etc.) (ths JPY)

6,987

29,791445,761(Repair costs (ths JPY))

57,184‐215,305
1,246,132

Facility management fees (ths JPY)

3,641

27,392

2,424,476(2) Property related expenses (ths JPY)

29,791(7) NCF = (4) ‐ (6) (ths JPY)

2,639,781

Rent, common area fees / GOP (ths JPY)

3,345

(6) Capital expenditure (ths JPY)－

(1) Rental revenues (ths JPY)

27,392(4) NOI = (1) ‐ (2) + (3)100.0%

Appraisal Value as of Jun. 2014 (mn JPY)

Days of operation(2) Property related expenses (ths JPY)

(3)Depreciation expenses (ths JPY)

Acquisition Price (JPY mn)

Total Rentable Units / Rooms－

Days of operation(5) Rental income = (1)‐(2) (ths JPY)

127,783(3)Depreciation expenses (ths JPY)

509,843(4) NOI = (1) ‐ (2) + (3)1,903,493
5.2%
5.0%

(5) Rental income = (1)‐(2) (ths JPY)

1,393,649(6) Capital expenditure (ths JPY)

135,796(7) NCF = (4) ‐ (6) (ths JPY)

1,767,696

Expense ratio = ((2) ‐ (3)) / (1)

0.4%

0.4%

0.4%

Expense ratio = ((2) ‐ (3)) / (1)27.9%Property Tax 2014 (ths JPY)

8,777

7,846

16,623

Property Tax 2014 (ths JPY)

327,056(8) Total Revenues (ths JPY)

Mortgagee*

New Syndicate B(8) Total Revenues (ths JPY)
Room Income (ths JPY)
Reference Information

2,584

Leasing
information

Acquisition Price (JPY mn)

Other Income (ths JPY)

New Syndicate B‐

Mortgagee*

32,40935,33767,746

31,69432,87164,565

715

2,465

3,181

（9）Operating Costs (not including (a)‐(d) above) (ths JPY)

4,897

5,433

10,330GOP (8) ‐ (9) (ths JPY)

27,512

29,90357,416

ADR (JPY)

6,819

5,650

6,169

RevPAR (JPY)

6,450

5,268

5,789

Room Occupancy Rates

94.6%

93.2%

GOP Ratio

84.9%

84.6%

Daily

75.9%

WeeklyMonthlyD
M
W‐

Room Income (ths JPY)
Reference InformationPrice
information

Transport AccessInformation on Profits and losses

Address

Price
information

Acquisition Date

Other Income (ths JPY)

67,74664,565
3,181（9）Operating Costs (not including (a)‐(d) above) (ths JPY)

10,330GOP (8) ‐ (9) (ths JPY)

57,416

ADR (JPY)

6,169

RevPAR (JPY)

5,789

93.8%

Room Occupancy Rates

93.8%

84.8%

GOP Ratio

84.8%

69.7%

72.7%

6.1%

12.1%

9.2%

18.0%

18.2%

18.1%

D
M
W

Daily

72.7%

Weekly9.2%

Monthly

18.1%

61

Portfolio List as of the end of Jun. 2014(Performance by Properties, etc.)

Property Number

C21

Property NameBon Sejour Chitose
Funabashi

Acquisition Date
Completion Date

C24

C25

C26

C27

Bon Sejour Yotsugi

Bon Sejour Hino

Bon Sejour Musashi‐
ShinjoBon Sejour Komaki

Bon Sejour Hadano
Shibusawa

Bon Sejour Itami

Properties Sold

February 1, 2010

February 1, 2010

February 1, 2010

February 1, 2010

February 1, 2010

February 1, 2010

February 1, 2010－

March, 1988

March, 1989

May, 1990

February, 1985
773‐2 Aza‐kitaura,
Chitose, Takatsu‐ku,
Kawasaki City,
Kanagawa Prefecture

March, 1991

July, 1991

March, 1989－

Acquisition Price (JPY mn)
Investment ratio－

Leasing
information

－

－

－

About 2 minute walkAbout 10 minute walk
Kasugai Station on JR
from Itami Station on
from Shibusawa Station
Line
Hankyu Railway Itami
on Odakyu Line
Line
1,050
681
480
－

－

－

－

－

4,608
－

Book Value as of Sale (mn JPY)

657

622

551

468

984

633

449

4,367

Gain or Loss on Sale (mn JPY)

168

149

173

114

283

95

18

1,003

Total Rentable Units
Total Leasable Area (㎡)Leased area (㎡)Jun. 30, 2014

Occupancy
Rate

42

62

56

46

123

100

62

491

2,342.17

1,962.87

1,984.17

1,710.43

8,858.49

3,435.79

2,129.87

22,423.79

－

－

－

－

－

－

－

－

－

－

－

－

－

－

Dec. 31, 2013

Days of operation(1) Rental revenues (ths JPY)
Rent, common area fees (ths JPY)
Other income (ths JPY)
(2) Property related expenses (ths JPY)
Information on Profits and losses

1‐6‐60 Shibusawa‐
1‐2‐25 Chuo, Itami City,
3‐1 Shiroyama, Komaki
Kami, Hadano City,
Hyogo Prefecture
City, Aichi Prefecture
Kanagawa Prefecture

About 5 minutes walkAbout 3 minute walk About 13 minute walkAbout 9 minute walkfrom Chitose‐funabashi
from Yotsugi Station on from Mogusaen Station from Musashi‐Shinjo
StationStation on JR Lineon Keio Line
Keisei Lineon Odakyu Line
685
652
574
486

Transport AccessPrice
informationC23

3‐1‐11 Higashi‐Yotsugi,
438‐1 Ochigawa,Hino
1‐37‐3 Funabashi,
Katsushika Ward,
City, Tokyo
Setagaya Ward, Tokyo
Tokyo

Address

Facility management fees (ths JPY)－－

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

142 days

142 days

142 days

142 days

142 days

142 days

142 days

100.0%－

18,592

17,485

16,63913,80935,226

18,441

12,442

132,637

17,481

17,485

16,63913,80935,22618,183

12,442

131,270

1,110

‐

‐

‐

‐

257

‐

1,367

4,692

3,794

3,456

2,731

10,814

5,981

4,187

35,659
927

150

149

142

111

134

142

96

(Repair costs (ths JPY))

‐

‐

‐

‐

‐

‐

‐

‐

(Utility expenses (ths JPY))

‐

‐

‐

‐

‐

‐

‐

‐

2,261

1,302

1,539

1,209

5,767

2,365

1,781

16,228

50

33

38

35

160

68

45

431

1

‐

‐

‐

‐

‐

‐

1

2,229

2,309

1,736

1,374

4,752

3,404

2,263

18,071

16,12916,00014,91912,452

29,164

15,864

10,518115,049

6.1%

6.3%

6.7%

6.6%

7.1%

6.0%

5.6%

Tax and other public charges (ths JPY)
Insurance expenses (ths JPY)
Other expenses(commissions paid, Trust fees, etc.) (ths JPY)
(3)Depreciation expenses (ths JPY)
(4) NOI = (1) － (2) + (3)NOI yield based on Acquisition priceNOI yield based on Appraisal value－(5) Rental income = (1)－(2) (ths JPY)

－

－

－

－

－

－

6.4%
－

13,89913,691

13,182

11,077

24,412

12,459

8,254

‐

‐

‐

‐

‐

‐

‐

‐

(7) NCF = (4) － (6) (ths JPY)

16,12916,00014,91912,452

29,164

15,864

10,518115,049

Expense ratio = ((2) － (3)) / (1)

13.2%

8.5%

10.3%

9.8%

17.2%

14.0%

15.5%

13.3%

Property Tax 2013 (ths JPY)

3,538

2,047

2,405

1,885

9,220

3,710

2,800

25,608(6) Capital expenditure (ths JPY)
Reference
Information

C22

Invincible Investment Corporation (8963)

Mortgagee*

－

－

－

－

－

－

－

96,978－62

Portfolio List as of the end of Jun. 2014(Performance by Properties, etc.)

Property Number

Total(Incl. the properties
sold)

Property Name－

Completion Date－

Address－

Transport Access－Leasing
informationPrice
information

Acquisition Date－

Acquisition Price (JPY mn)
Investment ratio－

Book Value (mn JPY)－

Appraisal Value as of Jun. 2014 (mn JPY)－

Total Rentable Units / Rooms－

Total Leasable Area (㎡)－－Leased area (㎡)Jun. 30, 2014

Occupancy
Rate

Dec. 31, 2013

Days of operation－－－(1) Rental revenues (ths JPY)

2,772,419

Rent, common area fees / GOP (ths JPY)

2,555,746

Other income (ths JPY)

216,673

Information on Profits and losses(2) Property related expenses (ths JPY)

1,281,791

Facility management fees (ths JPY)

446,688(Repair costs (ths JPY))

40,506(Utility expenses (ths JPY))

105,463

Tax and other public charges (ths JPY)

174,451

Insurance expenses (ths JPY)

4,952

Other expenses(commissions paid, Trust fees, etc.) (ths JPY)

127,784(3)Depreciation expenses (ths JPY)

527,914(4) NOI = (1) ‐ (2) + (3)2,018,542

NOI yield based on Acquisition price

5.3%

NOI yield based on Appraisal value‐(5) Rental income = (1)‐(2) (ths JPY)

1,490,627(6) Capital expenditure (ths JPY)

135,796

Reference
Information(7) NCF = (4) ‐ (6) (ths JPY)

1,882,745

Expense ratio = ((2) ‐ (3)) / (1)27.2%Property Tax 2014 (ths JPY)

352,664

Mortgagee*

Invincible Investment Corporation (8963)－

63

Appraisal Values & Book Values as of the end of Jun. 2014
Appraisal ValueNo.

Property NameCap Rate

Book Valueas of Jun.
2014

As of
Acquisition

As of Jun. 2013

As of Dec. 2013

As of Jun. 2014

(ths JPY)(ths JPY)(ths JPY)(ths JPY)(ths JPY)

A26 Nisshin Palacestage Daitabashi

1,138,204

1,300,000

1,120,000

1,130,000

1,140,000

A27 Nisshin Palaistage Higashi‐Nagasaki

Compared to Dec. 2013(ths JPY)(%)

10,000

0.9

As of Dec.
2013

As of Jun.
2014

Changes

(%)

(%)

(%)

5.20

5.10

‐0.10

1,118,757

1,300,000

1,220,000

1,240,000

1,240,000

‐

‐

5.20

5.10

‐0.10

A28 Growth Maison Gotanda

846,684

991,000

916,000

922,000

931,000

9,000

1.0

4.90

4.80

‐0.10

A29 Growth Maison Kameido

1,012,752

1,110,000

1,040,000

1,040,000

1,060,000

20,000

1.9

5.00

4.90

‐0.10

A30 Emerald House

1,419,461

1,570,000

1,170,000

1,180,000

1,190,000

10,000

0.8

5.20

5.10

‐0.10

A31 Harmonie Ochanomizu

1,380,696

1,710,000

1,210,000

1,230,000

1,250,000

20,000

1.6

4.90

4.80

‐0.10

A32 Suncrest Shakujii Koen

‐0.10

1,069,979

1,220,000

997,000

998,000

1,010,000

12,000

1.2

5.10

5.00

A33 Growth Maison Shin Yokohama

994,590

1,110,000

1,040,000

1,060,000

1,080,000

20,000

1.9

5.10

5.00

‐0.10

A34 Belle Face Ueno Okachimachi

983,124

1,100,000

918,000

928,000

924,000‐4,000

‐0.4

4.90

4.80

‐0.10

A35 Grand Rire Kameido

855,242930,000

895,000

909,000

918,000

9,000

1.0

5.10

5.00

‐0.10

A36 Growth Maison Ikebukuro

777,307856,000

798,000

827,000

838,000

11,000

1.3

4.90

4.80

‐0.10

A37 Growth Maison Yoga

764,399

831,000

669,000

674,000

682,000

8,000

1.2

5.00

4.90

‐0.10

A38 Route Tachikawa

653,797

749,000

584,000

591,000

595,000

4,000

0.7

5.20

5.10

‐0.10

A39 Shibuya Honmachi Mansion

655,887

678,000

579,000

588,000

591,000

3,000

0.5

5.10

5.00

‐0.10

A40 City Heights Kinuta

646,518

707,000

448,000

454,000

457,000

3,000

0.7

5.10

5.00

‐0.10

A41 Acseeds Tower Kawaguchi Namiki

571,590698,000

666,000

676,000

684,000

8,000

1.2

5.80

5.70

‐0.10

A42 Capital Heights Kagurazaka

616,870647,000

528,000

534,000

540,000

6,000

1.1

5.00

4.90

‐0.10

A43 College Square Machida570,376

597,000

519,000

525,000

529,000

4,000

0.8

5.60

5.50

‐0.10

A44 Belair Meguro

572,581

608,000

529,000

545,000

551,000

6,000

1.1

4.70

4.60

‐0.10

A45 Wacore Tsunashima Ⅰ

547,391

665,000

491,000

496,000

499,000

3,000

0.6

5.30

5.20

‐0.10

A46 Foros Nakamurabashi

530,840

634,000

526,000

532,000

550,000

18,000

3.4

5.00

4.90

‐0.10

A47 Growth Maison Kaijin

531,412603,000

451,000

455,000

454,000‐1,000

‐0.2

5.70

5.60

‐0.10

A48 College Square Machiya

477,575

521,000

487,000

494,000

500,000

6,000

1.2

5.10

5.00

‐0.10

A51 City House Tokyo Shinbashi

2,405,343

2,520,000

2,610,000

2,650,000

2,720,000

70,000

2.6

5.00

4.90

‐0.10

A52 Winbell Kagurazaka

3,128,104

3,260,000

3,400,000

3,420,000

3,490,000

70,000

2.0

4.70

4.60

‐0.10

A53 Nishiwaseda Cresent Mansion

1,849,182

1,880,000

2,010,000

2,140,000

2,180,000

40,000

1.9

5.00

4.90

‐0.10

A54 Lexington Square Akebonobashi

1,377,399

1,450,000

1,550,000

1,570,000

1,600,000

30,000

1.9

4.90

4.80

‐0.10

A56 Casa Eremitaggio

996,550

1,070,000

996,000

980,000

996,000

16,000

1.6

4.90

4.80

‐0.10

A59 Towa City Coop Shin‐otsukaⅡ

831,041

866,000

930,000

930,000

949,000

19,000

2.0

5.40

5.30

‐0.10

64

Appraisal Values & Book Values as of the end of Jun. 2014

Invincible Investment Corporation (8963)
Appraisal ValueNo.

Property Name

A61 Bichsel Musashiseki
A62 Lexel Mansion Ueno Matsugaya

Cap Rate

Book Valueas of Jun.
2014

As of
Acquisition

As of Jun. 2013

As of Dec. 2013

As of Jun. 2014

(ths JPY)(ths JPY)(ths JPY)(ths JPY)(ths JPY)

558,613577,000

595,000

631,000

Compared to Dec. 2013(ths JPY)(%)

As of Dec.
2013

As of Jun.
2014

Changes

(%)

(%)

(%)

634,000

3,000

0.5

5.20

5.10

‐0.10

899,370970,000

1,050,000

1,050,000

1,070,000

20,000

1.9

5.00

4.90

‐0.10

1,046,034

1,110,000

1,210,000

1,230,000

1,250,000

20,000

1.6

6.00

5.90

‐0.10

A64 Royal Park Omachi

393,761

415,000

450,000

484,000

508,000

24,000

5.0

6.40

6.30

‐0.10

A65 Lexington Square Haginomachi

307,009

330,000

391,000

405,000

422,000

17,000

4.2

6.40

6.30

‐0.10

A66 Visconti Kakuozan

240,018

255,000

226,000

232,000

244,000

12,000

5.2

5.90

5.80

‐0.10

A71 Lexington Square Daitabashi

906,744977,000

995,000

1,020,000

1,040,000

20,000

2.0

4.90

4.80

‐0.10

A72 Lexington Square Honjo‐Azumabashi

468,164

511,000

516,000

536,000

549,000

13,000

2.4

5.00

4.90

‐0.10

A73 AMS TOWER Minami 6‐Jo

1,057,865

1,180,000

1,050,000

1,080,000

1,120,000

40,000

3.7

6.00

5.90

‐0.10

A75 Spacia Ebisu

6,693,006

7,010,000

6,810,000

6,860,000

6,930,000

70,000

1.0

4.80

4.70

‐0.10

A76 Neo Prominence

1,656,390

1,660,000

1,680,000

1,710,000

1,720,000

10,000

0.6

5.30

5.30

‐

A77 Invoice Shin‐Kobe Residence

A63 Towa City Coop Sengencho

1,250,971

1,260,000

1,280,000

1,300,000

1,300,000

‐

‐

5.70

5.60

‐0.10

A78 Cosmo Court Motomachi

966,629

980,000

1,000,000

1,020,000

1,040,000

20,000

2.0

5.60

5.50

‐0.10

A79 Revest Honjin

669,981

679,000

697,000

705,000

718,000

13,000

1.8

6.20

6.10

‐0.10

A80 Revest Matsubara

653,241

662,000

684,000

705,000

720,000

15,000

2.1

5.80

5.70

‐0.10

A81 Sun Terrace Minami Ikebukuro

620,515625,000

631,000

644,000

667,000

23,000

3.6

5.00

4.90

‐0.10

A82 Alba Noritake Shinmachi

604,597

608,000

626,000

637,000

644,000

7,000

1.1

5.70

5.60

‐0.10

A83 Revest Meieki Minami

594,044597,000

609,000

626,000

649,000

23,000

3.7

5.50

5.40

‐0.10

A84 Revest Heian591,665

599,000

605,000

610,000

619,000

9,000

1.5

5.80

5.70

‐0.10

A85 Vendir Hamaotsu Ekimae

576,620

638,000

645,000

650,000

669,000

19,000

2.9

6.50

6.40

‐0.10

A86 Salvo Sala

542,894

548,000

557,000

567,000

577,000

10,000

1.8

5.80

5.70

‐0.10

A87 Excellente Kagurazaka

542,115543,000

552,000

558,000

569,000

11,000

2.0

4.80

4.70

‐0.10

A88 Luna Court Edobori

522,002525,000

538,000

547,000

549,000

2,000

0.4

5.60

5.60

‐

A89 Winntage Kobe Motomachi

508,635

516,000

537,000

545,000

553,000

8,000

1.5

5.70

5.60

‐0.10

A90 Queenʹs Court Fukuzumi

454,403

456,000

468,000

477,000

497,000

20,000

4.2

4.90

4.80

‐0.10

A91 Corp Higashinotoin

444,421446,000

457,000

468,000

474,000

6,000

1.3

5.50

5.50

‐

A92 Belair Oimachi

411,596

412,000

420,000

428,000

455,000

27,000

6.3

4.90

4.80

‐0.10

A93 Siete Minami‐Tsukaguchi

373,525

377,000

388,000

394,000

402,000

8,000

2.0

5.90

5.80

‐0.10

A94 Prime Life Sannomiya Isogami Koen

371,535

373,000

375,000

383,000

389,000

6,000

1.6

5.60

5.50

‐0.10

65

Appraisal Values & Book Values as of the end of Jun. 2014

Invincible Investment Corporation (8963)
Appraisal ValueNo.

Property Name

A95 HERMITAGE NANBA WEST

Cap Rate

Book Valueas of Jun.
2014

As of
Acquisition

As of Jun. 2013

As of Dec. 2013

As of Jun. 2014

(ths JPY)(ths JPY)(ths JPY)(ths JPY)(ths JPY)

355,169

358,000

366,000

382,000

Compared to Dec. 2013(ths JPY)(%)

As of Dec.
2013

As of Jun.
2014

Changes

(%)

(%)

(%)

382,000

‐

‐

5.70

5.60

‐0.10

A96 Century Park Shinkawa 1‐bankan

334,456

337,000

337,000

349,000

372,000

23,000

6.6

6.20

6.10

‐0.10

A97 West Avenue

328,495

333,000

330,000

334,000

338,000

4,000

1.2

5.80

5.70

‐0.10

A98 Little River Honmachibashi

310,309

312,000

321,000

329,000

335,000

6,000

1.8

5.50

5.40

‐0.10

A99 Prime Life Mikage

295,988

299,000

300,000

307,000

312,000

5,000

1.6

5.90

5.80

‐0.10

55,874,464

59,659,000

56,993,000

57,921,000

58,865,000

944,000

1.6

‐

‐

‐

1,234,100

1,340,000

1,010,000

1,020,000

1,010,000‐10,000

‐1.0

5.00

4.90

‐0.10

712,290871,000

531,000

542,000

556,000

14,000

2.6

5.20

5.10

‐0.10

B14 Lexington Plaza Nishigotanda

4,801,941

4,880,000

4,070,000

4,050,000

4,140,000

90,000

2.2

5.10

5.00

‐0.10

B15 Cross Square NAKANO

1,070,043

1,060,000

938,000

930,000

938,000

8,000

0.9

5.30

5.20

‐0.10

761,574

816,000

602,000

633,000

644,000

11,000

1.7

6.30

6.20

‐0.10

B17 Lexington Plaza Hachiman

3,184,450

3,280,000

3,210,000

3,270,000

3,330,000

60,000

1.8

6.40

6.30

‐0.10

B18 AEON TOWN Sukagawa

2,091,188

2,320,000

2,150,000

2,150,000

2,190,000

40,000

1.9

7.00

6.90

‐0.10

13,855,590

14,567,000

12,511,000

12,595,000

12,808,000

213,000

1.7

‐

‐

‐

100,825

100,000

92,30092,800105,000

12,200

13.1

4.60

4.50

‐0.10

100,825

100,000

92,30092,800105,000

12,200

13.1

‐

‐

‐

D1 Hotel MyStays Kanda

2,907,285

2,880,000‐‐

2,880,000

‐

‐

‐

5.70

‐

D2 Hotel MyStays Asakusa

2,625,056

2,610,000‐‐

2,610,000

‐

‐

‐

6.10

‐

Subtotal of Hotels

5,532,341

5,490,000‐‐

5,490,000

‐

‐

‐

‐

‐

Total

75,363,220

79,816,000

69,596,300

70,608,800

77,268,000

6,659,200

9.4

‐

‐

‐

Subtotal of Residences
B8 Kindai Kagaku Sha Building
B9 Shinjuku Island

B16 Ohki Aoba Building

Subtotal of Offices
C1 Stop Parking Kanda‐Sudacho
Subtotal of Parking lots66

Disclaimer

Investment
Invincible Corporation◆ This material is for informational purposes only and not for solicitation to invest in, or recommendation to buy, certain
products of Invincible Investment Corporation (INV). You should consult with securities firms if you intend to purchaseinvestment units of INV.
◆ This material does not constitute or form a part of any disclosure document or an asset management report requiredby the Financial Instruments and Exchange Act of Japan or regulations thereunder, the Investment Trust and Investment
Corporation Act of Japan or regulations thereunder, or the listing rules of the Financial Instruments Exchanges or otherrelated rules and regulations.
◆ This material contains forward‐looking statements and these statements are based on certain assumptions andpremises in consideration of the available information as of the date of this material; therefore there may be currently
unknown risks and uncertainties in such statements. The contents of forward‐looking statements are subject to such risks,
uncertainties, assumptions and other factors. Accordingly, there is no assurance as to actual business performance, resultsof operations or financial conditions.
◆ INV has given its attention that the information provided herein does not contain mistakes or omissions. However,there is no assurance given as to the accuracy, certainty or completeness, validity or fairness of any such information andsuch information is subject to revision or retraction without prior notice.

INQUIRIES:
Consonant Investment Management Co., Ltd. (Asset Manager of INV)
Planning Department
Tel. +81‐3‐5411‐2731 (Investor Relations)67