18th Fiscal Period Results(from Jan. 1, 2012 to Jun. 30, 2012)

Invincible Investment Corporation

http://www.invincible-inv.co.jp/eng/(Aug. 28, 2012)1

Table of Contents
Section 1:
Highlights of Performancefor the 18th Fiscal Period

Section 3:
Overview of Operations(P.15)( )(P.3)- Financial Highlights for the 18th Fiscal Period- Historical Operating Results- Financial Metrics- Forecast for the 19th Fiscal Period- Portfolio / Financial History- Portfolio MAP- Portfolio Diversification- Overview of Residential Properties- Historical Occupancy Rates- Overview of Borrowings- Overview of Borrowing Mortgages- Overview of Unitholders- Historical Unit Price

Section 2:
Financial Statements
for the 18th Fiscal Period

Section 4:
Activities to Improve
the Asset Value and the Profitability (P.29)- Income Statement- Balance Sheet- Cash Flow Statement / Financial Statements
pertaining to Distribution of Monies(P.9)- Internal Growth Strategies■Disclaimer(Appendix)- Performance by Properties in the 18th Fiscal Period- Appraisal Values & Book Values at the end of the 18th Fiscal Period- Portfolio List

2

Section 1 Highlights of Performancefor the 18th Fiscal Period

3Financial Highlights for the 18th Fiscal Period (1)Borrowing (Note1)

Total JPY 131 mn of repayment
was made by scheduled
repayments in twice on each of
Syndicate Loan A
and Shinsei Trust Loan B

Balance as of Dec. 31, 2011

Balance as of Jun. 30, 2012

JPY 31,603 million

JPY 31,734 million

LTV based on
Unitholders’Capital(Note 2)

As of Dec. 31, 2011

As of Jun. 30, 2012

-0.1%

49 5%
49.5%

49 4%
49.4%

(LTV based on Appraisal Value (Note 3): 54.5%)(LTV based on Appraisal Value (Note 3): 53.5%)+0.1%

As of Dec. 31, 2011

As of Jun. 30, 2012

Occupancy Rates
95.0%

Portfolio

Averaged Occupancy Rates: 95.2%(during the 17th fiscal period:94.0%)

As of Dec. 31, 2011
54 properties

Appraisal value:+ JPY 907 mn(+ 1.6 %)Forecastin the Financial Summary

As of Jun. 30, 2012
54 properties(Total Acquisition Price: JPY 63,118 million)(Total Appraisal Value: JPY 59,106 million)(Total Acquisition Price: JPY 63,118 million)(Total Appraisal Value: JPY 58,199 million)

Balance of Surplus
after the Distribution
for the Fiscal Period
Ended June 2012

95.1%

+ JPY 95 mn

Resultsin the Financial Summary(Kessan-Tanshin)(Kessan-Tanshin)

as of Feb. 22, 2012
JPY 62 million

as of Aug. 27, 2012
JPY 157 million(Note 1) Please refer to the page 23 for the overview of borrowings as of Jul. 31, 2012.
(Note 2) The LTV based on Unitholders’ Capital is calculated based on the following formula:
LTV based on Unitholders’ Capital = Interest-bearing debt / (Interest-bearing debt + unitholders’ capital + unitholders’ capital surplus)) x 100(Note 3) The LTV based on Appraisal Value is calculated based on the following formula: LTV based on Appraisal Value = Interest-bearing debt / Appraisal Value x100
(Note 4) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

4

Financial Highlights for the 18th Fiscal Period (2)18th Fiscal Period Results against Forecasts and Historical Results
17th Fiscal Period 18th Fiscal Period 18th Fiscal Period(Results)(1)(Initial Forecast)(2) (Results) (3)(2011/7/12011/12/31)(2012/1/12012/6/30)(2012/1/12012/6/30)

Compared to 17th
Fiscal Period (3)-(1)ChangesCompared to the Initial 19th Fiscal Period
Forecast (3)-(2)(Forecast)(%)

Changes(2012/7/12012/12/31)(%)

Days of
Operation

184

182

182

-2

－

－

－

184

Operating
Revenues(ths JPY)

2,202,448

2,176,000

2,176,839-25,609

-1.2

839

0.0

2,161,000

Operating
Income (ths JPY)

-409,968

803,000

894,072

1,304,041－

91,07211.3

858,000

Ordinary Income(ths JPY)-3,466,417

33,000125,9813,592,398－

92,981281.8

81,000Net Income(ths JPY)-2,476,155

32,000128,175

2,604,330－

96,175300.5

81,000DistributionDit ib ti per
Unit (JPY)

200

200

200

－

－

－

－

177

Reversal of
Surplus(ths JPY)

2,745,814

237,000

141,483-2,604,330-94.8-95,516-40.3

157,000

Surplus after theDistributions foreach fiscal
period (ths JPY)

299,171

62,000157,688-141,483-47.3

95,668154.3

0IssuedInvestment Unit

1,348,292

1,348,292

1,348,292

－

－

－

－

1,348,292(Note 1) “(Initial Forecast) (2)” is the forecast for the 18th fiscal period ended Jun. 30, 2012 announced in the financial summary (Kessan- Tanshin) dated Feb. 22, 2012.
(Note 2) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.
Furthermore, figures of “18th Fiscal Period (Initial Forecast) (2)” and ”19th Fiscal Period (Forecast)” are rounded down to the million JPY.
(Note 3) The forecast for the 19th fiscal period ending Dec. 31, 2012 on this page is based on the announcement in the financial summary (Kessan-Tanshin) dated Aug. 27, 2012, and has
been subsequently revised. Please refer to “Notice concerning Revision of Forecast of Financial Results and Distributions for the 19th Fiscal Period Ending December 2012 andconcerning Forecast of Financial Results and Distributions for the 20th Fiscal Period Ending June 2013” dated Sep. 26, 2012 for details.

5Historical Operating Results<Operating Revenues>

2,300,000<Property Related Expenses> (Note 2)

The fiscal period ended Jun
Jun. 2012 (Results): JPY 2
2,176,839
176 839 ths
Compared to FP ended Dec.2011 (Results: JPY-25,609 ths(-1.2%)(Compared to FP ended Dec. 2011(Note 1): JPY +51,294 ths (+2.4%))
2,202,448
2,176,839
2,161,000
2,125,544

The fiscal period ended Jun
Jun. 2012 (Results): JPY 612
612,591
591 ths
Compared to FP ended Dec. 2011 (Results): JPY -103,318 ths (-14.4%)(Compared to FP ended Dec. 2011 (Note 1): JPY -65,461 ths (-9.7%))
2,300,000

2,000,000,,

2,000,000, ,1,700,000

1,700,000

1,400,000

1,400,000

1,100,000

1,100,000

800,000

800,000

500,000

500,000

2011.12 (2011.12)(Results)(Note 1)2012.6(Results)

2012.12(Forecast)

715,909

Conducted the review
of various kinds of
costs

678,053

2011.12 (2011.12)

2012.6(Results)(Note 1)2,000,000

2011.12200,000-ᇞ 100,000

1,528,000-ᇞ 400,000-

ᇞ 700,000-ᇞ 1,000,000

1,100,000-ᇞ 1,300,000-ᇞ 1,600,000

800,000-ᇞ 1,900,000

500,000
2011.12 (2011.12)

2012.62012.12(Forecast)

The fiscal period ended Jun. 2012 (Results): JPY128,175ths
Compared to Dec. 2011 (Results): JPY+2,604,330 ths(－%)(Results)

1,564,247

633,000<Net Income>The fiscal period ended Jun. 2012 (Results): JPY 1,564,247 ths
Compared to FP ended Dec. 2011 (Results): JPY +77,708 ths (+5.2%)(Compared to Dec. 2011 (Note 1): JPY+116,756 ths (+8.1%))

1,700,000 1,486,538
1,447,491
1,400,000

612,591(Results)

<NOI>
NOI

2,300,000(Unit: ths JPY)

2012.12-ᇞ 2,200,000

2012.6(Results)

128,175

2012.12(Forecast)

81,000“Exit fees (JPY 1,436 mn*) relating to
Shinsei Trust Loan A and Shinsei Trust Loan B”,“Fees to Calliope (JPY 336.5 mn*)”,“Loss from sales of properties (JPY 1,012,mn)
due to the disposition of New Edobashi Building
as of Oct. 21, 2011”,
and “Gain on forgivenessgof debts in total:JPY 1,000,mnrelating to the debt waiver on the Securitized Loan
dated Jul. 29, 2011 and Oct. 21, 2011”, are included.
* Those are onetime costs of this fiscal period
ended Dec. 2011 relating to the series of transactions
as of Jul. 29, 2011.

-ᇞ 2,500,000-ᇞ 2,476,155(Forecast)(Results)(Results) (Note 1)(Note 1) The portion outlined by the red border：□ is calculated excluding operating revenues, property related expenses or NOI, respectively, relating to New Edobashi Building which was soldas of Oct. 21, 2011.
(Note 2) Depreciation expenses are excluded from property related expenses of this page. Depreciation expenses of each fiscal period are as follows:
the fiscal period ended Dec. 2011: JPY 422,084 ths / ended Jun. 2012: JPY 411,685 ths / ending Dec. 2012 (forecast) JPY 416,000 ths. In addition, in relation to the portion outlined by the red border, thedepreciation expense excluding that of New Edobashi Building in the fiscal period ended Dec. 2011 is JPY 410,507 ths.
(Note 3) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place. Furthermore, the figures of “the fiscal period ending Dec. 2012 (Forecast) are rounded down to the million JPY.
(Note 4) The forecast for the 19th fiscal period ending Dec. 31, 2012 on this page is based on the announcement in the financial summary (Kessan-Tanshin) dated Aug. 27, 2012, and has beensubsequently revised. Please refer to “Notice concerning Revision of Forecast of Financial Results and Distributions for the 19th Fiscal Period Ending December 2012 and concerning Forecast of
Financial Results and Distributions for the 20th Fiscal Period Ending June 2013” dated Sep. 26, 2012 for details.

6Financial Metrics

Items

Return on Asset (ROA)

15th Fiscal Period 15th Fiscal Period
16th Fiscal Period 17th Fiscal Period 18th Fiscal Period(Results)(Adjusted Results)
2010/1/1-

2010/1/1-

2011/1/1-

2011/7/1-

2012/1/1-

2010/12/31

2010/12/31

2011/6/30

2011/12/31

2012/6/30

-9.0%

0.4%

-0.1%

-4.8%

0.2%

-9.0%

0.4%

-0.1%

-9.6%

0.4%

14.8%

0.9%

-4.4%

-7.1%

0.4%

14 8%
14.8%

0 9%
0.9%

-8.8%
8 8%

-14.0%
14 0%

0 8%
0.8%

Loan-to-Value (LTV 1)

62.8%

62.8%

62.6%

49.5%

49.4%

Loan-to-Value based on total assets at the end of fiscal period (LTV 2)

56.6%

56.6%

58.2%

46.6%

46.7%

Capital-to-Asset Ratio (fiscal year-end)

39.8%

39.8%

39.1%

48.4%

48.5%

Net Operatingpg Income ((NOI)) ((ths JPY))

3,754,420

3,754,420

1,554,015

1,486,538

1,564,247

5.0%

5.0%

4.4%

4.4%

5.0%

964,612964,612428,247

422,084

411,685

1,241,586

1,241,586

369,542-600,801

539,860

annualized
Return on Equity (ROE)
annualized
li dannualized NOI yield
Depreciation Expenses (ths JPY)
Funds from Operation (FFO) (ths JPY)

・ ROA＝ Ordinary Income / Weighted Average Total Assets during the period x 100
・ ROE＝ Net Income / Weighted Average Net Assets during the period x100
・ 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-Bearingg Debt / End-of-period Total Assets x 100
・ NOI＝ Rental Revenues - Property Related Expenses + Depreciation Expenses
・Annualized NOI yield=((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(Note 1) Figures of the15th Fiscal Period (Adjusted results) are calculated excluding the effect from “Loss from sales of properties” and “Gain on negative goodwill”.
(Note 2) FFO is calculated excluding the effects of “Gain on negative goodwill” in the 15th Fiscal Period , “Impairment Loss” in the 16th Fiscal Period , and “Exit fees unpaid”
in the 17th Fiscal Period, respectively.
(Note 3) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

7

(As of Aug. 27, 2012)

Forecast for the 19th Fiscal Period
18th Fiscal Period (Results)

2012/1/12012/6/30
Ths JPY

Operating revenues
Rental revenues (1)Operating expenses
Property related expenses (2)Changes

2012/7/12012/12/31
Ths JPY%

Ths JPY%%

2,176,839

100.0

2,161,000

100.0-15,839

2,176,839

100.0

2,161,000

100.0-15,839

1,282,766

58.9

1,303,000

60.3

1,024,277

20,234

1,049,000

24,723

Facilities management fees

359,308

372,000

12,692

Taxes and other public charges

146,563

146,000

-563

4,118

4,000

-118

102,601

110,000

7,399

Insurance expenses
Other expenses
Depreciation expenses (3)411,685

416,000

4,315

NOI (1)-(2)+(3)(1) (2)+(3)1 564 247
1,564,247

1 528 000
1,528,000-36,247
36 247-41,562

Rental income (1)-(2)

1,152,562

1,111,000

Asset management fees

150,000

150,000-

Other operating expenses

108,489

103,000-5,489Operating income

Non-operating revenues
Non-operating expenses
Ordinary income
Income before income taxes
Income and other taxes
Net income(Note 3)((Note 4))(Note 5)

1.6

41.1

858,000

39.7-36,072

-4.0

2,390

0.1

0

0.0

-2,390-100.0770 482
770,48235 4
35.4

776 000
776,000

35 9
35.9

5 518
5,518

07
0.7

125,9815.8

81,0003.8-44,981-35.7

125,9815.8

81,0003.8-44,981-35.7-2,194

-0.1

0

0.0

2,194

-100.0128,175

5.9

81,0003.8-47,175-36.8(Balance of surplus after the distribution
for the fiscal period ending Dec. 2012: JPY 0.37 mn (Note4))(Note 2)-0.7

894,072

Assumptions for Forecast: Assets:At 54 propertiesti Issued Investment Units: 1,348,292 units Reversal of surplus: JPY 157 mn(Note 1)

＜Scheduled CAPEX and Repair Costs
for the fiscal period ending Dec.
Dec 2012＞- Total CAPEX: JPY 160 million- Total Repair Costs: JPY 46 million

19th Fiscal Period (Forecast)F
Forecasted
t d Distribution
Di t ib ti
for the 19th fiscal period
JPY 177 per unit (Note 3)(Note 4)

(Ref.) Scheduled Major CAPEX
B14 Lexington Plaza Nishigotanda: JPY 27,000 ths (2F&5F Air conditioning renewal)
A26 Nisshin Palacestage Daitabashi: JPY 23,500 ths (Repair and rere-covercover of external wall tiles)
B14 Lexington Plaza Nishigotanda: JPY 18,000 ths (Air conditioning renewal ofcommon space on 1-7F )A27 Nisshin Palacestage Higashi-Nagasaki: JPY 9,000 ths (Replacement of equipment for
hot water supply and heat source)
A26 Nisshin Palacestage Daitabashi: JPY 8,000 ths (Replacement of equipment for
h t waterhott supplyl anddhheatt source))
B16 Ohki Aoba Building: JPY 6,600 ths (Maintenance construction formechanical parking equipment)
A64 Royal Park Omachi: JPY 5,500 ths (Repair work of halon
fire extinguishing systems of multistory car park)＜Results of CAPEX and Repair Costs
for the fiscal period ended Jun. 2012＞- Total CAPEX: JPY 33,928 ths- Total Repair Costs: JPY 21,803 ths
Conducted total of JPY 55,731 ths of construction＜Breakdown of scheduled non- operating expenses
for the fiscal p
period endingg Dec. 2012＞- Interest exp.
JPY 699 mn
JPY 75 mn- Finance related costs- Other non-operating exp.
JPY 1 mn
Total

JPY 776 mn

Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.
＜Breakdown of results of non-operating expenses
Furthermore, figures of the 19th Fiscal Period (Forecasts) are rounded down to the million JPY
Furthermore
JPY.
for the fiscal period ended Jun. 2012＞
If INV decides to acquire or dispose a property, INV will review and revise the forecast and will disclose the revised
forecast in compliance with the rules of Tokyo Stock Exchange.
- Interest exp.
JPY 695 mn
INV assumes that, by utilizing most of JPY 157 million of the remaining surplus after the distribution
JPY 73 mn- Finance related costs
for the 18th fiscal period ended Jun. 2012, JPY 238 million will be distributed for the 19th fiscal period ending Dec. 2012.
- Other non-operating exp.
JPY 1 mn
Since the balance of the surplus is expected to be JPY 0.37 million after paying the distribution for the 19th fiscal period
ending Dec. 2012 and there will remain only a small amount of surplus available for the subsequent distribution,
Total
JPY 770 mn
INV will pay the distribution mainly out of net income for the fiscal period ending Jun. 2013 and thereafter. (Note 5)
Surplusp
after the distribution for the fiscal p
period endingg Dec. 2012 ((forecast)) ((JPY 375,648),) = ((Surplus
pafter the distribution for the fiscal period ended Jun. 2012 (JPY 157,688,394))＋Net income for the fiscal period ending Dec. 2012 (forecast) (JPY 81,334,938) – (Distribution per unit for the fiscal
period ending Dec. 2012 (forecast) (JPY 177) X Issued investment unit (1,348,292 units))
The forecast for the 19th fiscal period ending Dec. 31, 2012 on this page is based on the announcement in the financial summary (Kessan-Tanshin) dated Aug. 27, 2012, and has beensubsequently revised. Please refer to “Notice concerning Revision of Forecast of Financial Results and Distributions for the 19th Fiscal Period Ending December 2012 and concerning Forecastof Financial Results and Distributions for the 20th Fiscal Period Ending June 2013” dated Sep. 26, 2012 for details.
Among other things, INV has changed the assumption for the distribution for the 19th fiscal period ending Dec. 2012, as follows: INV assumes that it will retain the surplus after the distribution of
the 18th fiscal period ended Jun. 2012, and JPY 14 million will be distributed out of net income for the 19th fiscal period ending Dec. 2012, resulting in forecasted distribution for the 19th fiscal
period to JPY 11 per unit.

8Section 2 Financial Statements
for the 18th Fiscal Period9Income Statement
Items

Operating revenues
Rental revenues (1)Operating expenses
Property related expenses (2)Depreciation expenses (3)NOI(1)-(2)+(3)Loss from sales of properties
Directors' remuneration
Asset management fees
Asset custodian fees
Administrative service fees
Provision of allowance for doubtful accounts
Bad debt expenses
Other operating expenses
Operating income / loss
Non-operating revenues
Interest revenues
Mi
MiscellaneouslliincomeNon-operating expenses
Interest expenses
Finance related costs
New investment unit issue costs
Public listing related costs
Miscellaneous losses
O diOrdinary
iincome / lloss
Extraordinary income
Gain on forgiveness of debts
Extraordinary loss
Loss on disaster
Income / loss before income taxes
Corporate tax, etc.
Net income / loss
Retained earnings at the beginning of the period
Unappropriated retained earnings / loss at the end of the period

17th Fiscal Period

18th Fiscal Period

2011/7/12011/12/31

2012/1/1
2012/06/30

Ths JPY%

2,202,448
2,202,448
2,612,417
1,137,994
422,084
1,486,538
1,012,716
4,200
150,055
3,541
35,379311
220
267,998-409,968
4,523
540
3,983
3,060,972
766,171
2,155,844
137,569
1,265
122-3,466,417
3 466 417
1,000,197
1,000,197
9,330
9,330
-2,475,550
605-2,476,155
2 476 155
3,044,985
568,830

100.0

Ths JPY

118.6

-18.6
0.2

139.0

-157.4
157 4
45.4
0.4
-112.4-112.4112 42,176,839
2,176,839
1,282,766
1,024,277
411,685
1,564,247
4,800
150,000
3,328
25,273646
1,137
73,303894,072
2,390
515
1,875
770,482695,689
73,562
1,230
125 981
125,981
125,981-2,194
128 175
128,175
299,171427,346

Changes%Ths JPY

100.0-25,609-25,609-1,329,650-113,717-10,398
77,708-1,012,716
600
-55
-212
-10,106
335
917-194,695
1,304,041-2,133-25-2,108-2,290,490-70,482-2,082,281-137,569-35-122
3 592 398
3,592,398-1,000,197-1,000,197-9,330-9,3302,601,531-2,7992 604 330
2,604,330-2,745,814-141,483

58.9

41.1
0.1

35.4

5.8
5
8
5.8
59
5.9

Distribution per unit
For 18th Fiscal Period: JPY 200(Total distribution amount: JPY 269 mn)(Note 1)(Note 1) Total distribution amount for the 18th fiscal period is calculated by the following■Operating revenues: JPY 2,176 mn(Compared to the previous fiscal period: decrease of JPY 25 mn)⇒ Mainly due to decrease of rental revenues
in relation to the sale of New Edobashi Building
as of October 21, 2011

formula:Total distribution amount (JPY 269 mn)= Net income (JPY 128 mn) + Reversal of surplus (JPY 141 mn)(Note 2) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

%
-1.2
-50.9

-47.2

-74.8

-100.0-100.0-■Operating expenses: JPY 1,282 mn(Compared to the previous fiscal period:
decrease of JPY1,329 mn）<Propert related e<Property
expenses>penses> JPY -113
113 mn Controlled repair costs :JPY -27 mn
 PM/ BM fees: JPY -12 mn
 Expert fees (accountant auditor and tax accounting):JPY- 1mn
 Trust fees: JPY -82 mn (recognized, during 17th
fiscal period, JPY 75 mn of expense relating tosetting up new trusts / consolidating trusts in relation to
new borrowings.)g ) Administrative service fees (unit registration andaccounting): JPY-10 mn<Other taxes and dues>: JPY-149 mn
 Recognized, during 17th fiscal period, the expenses
relating to “Refinance” and “Consolidation of trusts” etc.
(e.g. Consumption tax levied on the sale of
New Edobashi Building and Exit fees of Shinsei Trust
Loan A /B and Registration and license tax levied on
the consolidation of trusts)<Loss from sales of properties> :JPY -1,012 mn
 Recognized, during 17th fiscal period, JPY 1,012 mn ofloss from sales of properties by the sale of
New Edobashi Building■Non-operating expenses: JPY 770 mn(Compared to the previous fiscal period: decrease of JPY 2,290
2 290 mn)
<Finance related costs>: JPY -2,082 mn
Recognized JPY 1,772 mn of onetime costs (Note 1)
due to the execution of the series of transactions(Third Party Allotment / Refinance etc.)
during the fiscal period ended Dec. 2011.
<New investment unit issue costs>: JPY -137 mn
Recognized, during the fiscal period ended Dec. 2011,
JPY 137 mn of new investment unit issue costs
due to Third Party Allotment(Note 1) The following is the breakdown of
onetime costs in finance related costs
for the fiscal period ended Dec. 2011.
- of which, fees to Calliope
JPY 336 mn- of which, exit fees (Note 2)
JPY 1,436 mn
Total of the above onetime costs
JPY 1,772 mn(Note 2) The amount of exit fees were decreased by
JPY 93 mn from the initially-assumed
JPY 1,530 mn to JPY 1,436 mn. (Note 3)(Note 3) Exit fees in the amount of JPY 1,436 mn
was recorded on an accrual basis in the fiscal
period ended Dec. 2011.
(The amount of accrued exp.: JPY1,362mn(as of the end of fiscal period ended Jun. 2012))

10

Balance Sheet - Assets
Items

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Accounts receivables
Advances paid
Deposits paid
Prepaid expenses
Consumption tax receivable
Allowance 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

17th Fiscal Period

18th Fiscal Period( As of Dec. 31, 2011)( As of Jun. 30, 2012)

Ths JPY

Ths JPY

3,147,282
2,056,083
15,380422
647,357
181,805-311
6,048,020%

Changes%Ths JPY%■Property, plant and equipment■Property: JPY 61,282 mn(Compared to the previous fiscal period: decrease of JPY 377 mn )<18th fiscal period>
Total depreciation exp.: JPY 411 mn
Total CAPEX: JPY 33 mn

8.9

3,080,041
2,130,105
19,103
208
696,804
164,645
23,311-831
6,113,388

2,572,218
32,5132,866
2,713,620
21,690,590
3,349,929
185,142
56,44331,056,639
61,659,964

90.6

2,544,613
29,5392,726
2,713,620
21,488,840
3,209,656
175,265
61,30531,056,639
61,282,207

90.5-27,605-2,973-139-201,750-140,273-9,877
4,862-377,757

1,046
1,046

0.0

621
621

0.0

-424
-424

-40.6

0.6
91.1
100.0

10,000263,982
28,686
302,669
61,585,498
67,698,887

0.4
91.0
100.0

-72,581694-71,886-450,067-384,699

-19.2
-0.7
-0.6

10,000336,563
27,991
374,555
62,035,566
68,083,586

9.0-67,241
74,021
3,723-213
49,446-17,159
23,311-519
65,3681.1-0.6(Note ) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

11

Balance Sheet – Liabilities/Net Assets
Items

17th Fiscal Period

18th Fiscal Period( As of Dec. 31, 2011)( As of Jun. 30, 2012)

Ths JPY

Ths JPY%

Changes%Ths JPY%

Liabilities
Current liabilities
Accounts ppayableyCurrent portion of long-term debts
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
Long-term accrued expenses
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
SurplusCapital surplus
Unappropriated retained earnings / loss
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets

123,229,
262,000
8,791
365,166497
59,401
281,564
5,623
1,106,273
20,472,500
11,000,000
930,462
183,579
1,423,111
34,009,654
35,115,928

1.6

76,887,
262,000
6,062
371,854506
288,1623,307
1,008,782

50.0
51.6

20,341,500
11,000,000
925,696
183,579
1,413,153
33,863,929
34,872,711

1.5-46,341,-2,7286,687
9-59,401
6,598-2,315-97,49150.0
51.5-131,000-4,766-9,958-145,724-243,216

26,134,396

26,134,396-

6,264,432
568,830
6,833,262
32,967,658
32,967,658
68,083,586

6,264,432
427,346
6,691,778
32,826,175
32,826,175
67,698,887-141,483-141,483-141,483-141,483-384,699

10.0
48.4
48.4
100.0

9.9
48.5
48.5
100.0

■Borrowing amount as of the end of
the 18th fiscal period: JPY 31,603 mn(Compared to the previous fiscal period: decrease of JPY 131 mn)⇒ JPY 131 mn of repayments by scheduled
repayments in twice (Note)◇C◇Current-portiontti off long-termlt
d bt JPY 262 mn
debts:JPY◇Long-term debts and long-term debts in trust: JPY 31,341 mn◇Loan to Value (LTV): 46.7%(LTV= End-of-period Interest-Bearing Debt
/ End-of-period Total Assets x 100)

-8.8

-0.4
-0.7

(Note) Partial repayments;
Syndicate Loan A: JPY 75 mn /Shinsei Trust Loan B: JPY 56 mn,
were made during the fiscal period
ended Jun. 2012

-2.1
-0.4
-0.4
-0.6

The end of the 18th fiscal period
Net assets per unit: JPY 24,346(Issued investment units: 1,348,292 units)(Note) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

12

Cash Flow Statement /Financial Statements pertaining to Distribution of Monies
17th Fi
Fiscall Period
P i d
Items

Cash flows from operating activities
Net income (loss) before taxes
Depreciation expenses
Gain on forgiveness of debts
Loss due to disaster
Public listing related costs
Finance related costs
Amortization of tenant leasehold and security deposits in trust
Interest received
Interest paid
Increase (decrease) in allowance for doubtful accounts
Decrease (increase) in accounts receivable
Decrease (increase) in deposit payments
Decrease (increase) in consumption tax receivable
Increase (decrease) in accrued consumption taxes
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in deposits received
Decrease due to sale of tangible assets in trust
OthersSubtotal
Proceeds of interest
Payment of interest
Payment of loss due to disaster
Payment of corporate taxes, etc.
Cash flows from operating activities
Cash flows from investment activities
Payment for acquisition of tangible assets in trust
Payment of tenant leasehold and security deposits in trust
Proceeds of tenant leasehold and security deposits in trust
OthersCash flows from investment activities
Cash flows from financing activities
Repayment of short
short-term
term debt
Proceeds from long-term debt
Repayment of long-term debt
Proceeds from long-term debt in trust
Public listing related costs
Finance related costs
Payment of distributions
Proceeds of new investment unit issue
Cash flows from financing activities
Increase (decrease) in cash and cash equivalents
Beginning balance of cash and cash equivalents
Closing balance of cash and cash equivalents

17th Fiscal Period

18th Fi
Fiscall Period
P i d

2011/7/12011/12/31

2012/1/1
2012/06/30

Ths JPY

Ths JPY(2,475,550)
422,744(1 000 197)
(1,000,197)
9,330
1,265
2,155,844(1,279)(540)
766,171
311
8 512
8,512
(647,357)
204,972
59,401
10,3871,600(176,415)(34,165)
1 156
1,156
6,128,165(17,968)
5,416,389
540(527,019)(8,706)(573)
4 880 630
4,880,630

125,981
412,1101,230
73,562(927)(515)
695,689
519(902)(49,446)(23,311)(59,401)(38,383)
(344)
(570)
6,598
(2 315)(2,315)15,097
1,154,670
493(688,459)(3,667)(595)
462 441
462,441(50,925)(213,763)
55,012(209,676)(38,277)(49,274)
45,436(694)(42,810)(25,796,425)(25
796 425)
21,200,000(16,265,302)
11,000,000(1,265)(1,159,018)(127,599)
6,999,979(4 149 631)
(4,149,631)
521,323
4,682,043
5,203,366(131,000)(1,230)(10,452)(270,167)(412 849)(412,849)
6,780
5,203,366
5,210,146

18th Fiscal Period

2011/7/1

2012/1/1

2011/12/31

2012/06/30

Items
Unappropriated retained earnings(Ths JPY)

568,830

427,346

Distributions(Ths JPY)

269,658

269,658

Distribution per unit
Retained earnings carried forward(JPY)(Ths JPY)

200

200

299 171299,171

157 688
157,688(Note) Figures are rounded down to the indicated unit.

13

Memo

14

Section 3 Overview of Operations

15

Portfolio / Financial History
Feb. 2010- Merged with former LCP- Changed its company name into
INV
Sep. 2010- Added "Notice of Going Concern“

Aug. 2006
Listed on TSE

May 2004
Listed on OSE(Note 1)

May 2004
IPO
9,000 units

Feb. 2005
PO
10,650 units

Feb. 2010- Split units
215,596 units- Merger
367,200 units

Jul. 2006
PO
25,000 units(unit: JPY 100 mn)

1,000

Former TGR

Former LCP

INV (former TGR)

922

925

884

875

875

516

455
400
200

392

377

117

138

'04/06'04/12

210

228

240

'05/06'05/12'06/06,'06/08

448

448

440

430

Jul. 2011
Third Party Allotment
711,597 units

875

800
600

Aug. 2011
Removed “Notice ofGoing Concern”

705

705

'10/12'11/06631

631'11/12'12/06430

0'06/12,'07/02'07/06,'07/08'07/12,'08/02'08/06,'08/08'08/12,'09/02'09/06,'09/08'09/12

Fiscal Periods of former LCP(Fi(Fiscall Period)P i d)

3rd Fiscal Period 4th Fiscal Period 5th Fiscal Period 6th Fiscal Period 7th Fiscal Period 8th Fiscal Period 9th Fiscal Period 10th Fiscal Period 11th Fiscal Period 12th Fiscal Period 13th Fiscal Period 14th Fiscal Period 15th Fiscal Period 16th Fiscal Period 17th Fiscal Period 18th Fiscal Period

Asset Size

(Note 2)

Properties of INV (former TGR)
Properties of former LCP
Unitholders' Capital

Jun. 2004

Dec. 2004

JPY 11.7 bn

JPY 13.8 bn

Jun. 2005
JPY 21 bn

JPY 22.8 bn

17 properties

20 properties

28 properties

29 properties

-

-

-

-

JPY 6,895 mn

Issued investment units-

Balance of interest-bearing debt-

LTV based on unitholders' capital(Note 3)-

Jun. 2006
JPY 24 bn

33 properties

JPY 10,833 mn

18,249 units

Distribution Per Unit

Dec. 2005

JPY 39.2 bn

Dec. 2007
JPY 44.8 bn

Jun. 2008

Dec. 2008

42 properties

47 properties

56 properties

57 properties

62 properties

61 properties

36 properties

46 properties

46 properties

44 properties

43 properties

43 properties

JPY 44 bn

Jun. 2009

Dec. 2009

Dec. 2010

JPY 43 bn

Jun. 2011

Dec. 2011

JPY 70.5 bn
55 properties--

54 properties-

636,695 units

1,348,292 units

JPY 9,800

JPY 13,641

JPY 6,620

JPY 4,928

JPY 435

JPY 200

JPY 200

JPY 200

JPY 8,180 mn JPY 11,500 mn JPY 13,150 mn JPY 13,806 mn JPY 20,842 mn JPY 20,750 mn

JPY 27,283 mn

JPY 26,941 mn

JPY 25,727 mn

JPY 24,974 mn

JPY 24,358 mn

JPY 42,965 mn

JPY 42,596 mn

JPY 31,734 mn

JPY 31,603 mn

58.8%

58.5%

57.3%

56.6%

56.0%

62.8%

62.6%

49.5%

49.4%

54.8%

56.0%

JPY 11,924-

JPY 8,934

51.5%

JPY 12,453

JPY 26,134 mn

53,899 units
JPY 13,799

Jun. 2012

JPY 63.1 bn

JPY 11,150

54.3%

JPY 12,254

Jun. 2007

JPY 37.7 bn

JPY 19,134 mn

28,899 units
JPY 10,246

Dec. 2006

52.1%

52.0%

(Note 1) In order to focus trading on one securities exchange and reduce administrative tasks and costs accompanying cross listing,listing former TGR (INV) was delisted from the OSE on October 6
6, 20072007.
Consequently, INV is listed only on the TSE as of the date of this material.
(Note 2) Asset value is calculated by the acquisition price.
However, the acquisition price of the properties which former LCP held before the effective date of the Merger (Feb. 1, 2010) is calculated in principle by the acquisition price at which former LCP
bought such properties and it is different from the actual acquisition price of INV.
(Note 3) The LTV based on Unitholders’ Capital is calculated based on the following formula: LTV based on Unitholders’ Capital = Interest-bearing debt / (Interest-bearing debt + unitholders’ capital +unitholders’ capital surplus) x 100(Note 4) Figures are rounded down to the indicated unit.

16

Portfolio MAP
Tokyo 23 wards

Tokyo (except for 23 wards)& its surrounding area
SaitamaItabashi-ku

Adachi ku
Adachi-ku
North

Tokyo

Kita-ku

Katsushika-ku

Nerima-ku
Toshima-ku
Nakano-kuWestBunkyo-ku

Chiba

Arakawa-ku

Kanagawa
East

Taito-ku Sumida-ku
Edogawa-ku

Shinjuku-ku

Suginami-ku
Chiyoda-ku
Shibuya ku
Shibuya-ku

Koto-ku
Chuo kuChuo-ku

Central 5
wards
Minato-ku

Setagaya-ku

Hokkaido
Meguro-ku
Shinagawa-ku

SouthMiyagiOta-ku

Hyogo
FukushimaCentral 5 wards: Shibuya-ku, Shinjuku-ku, Chuo-ku, Chiyoda-ku and Minato-ku
East: Edogawa-ku, Katsushika-ku, Koto-ku, Sumida-ku and Taito-ku
West: Suginami-ku, Nakano-ku and Nerima-ku
South: Ota-ku, Shinagawa-ku, Setagaya-ku and Meguro-ku
North: Adachi-ku, Arakawa-ku, Itabashi-ku, Kita-ku, Toshima-ku and Bunkyo-ku

Aichi
Residences
Offices, Commercial Facilities etc.
Hotels, Seniors, Parking lots etc.

17

Portfolio Diversification
As of the end ofFirst Half of 15th Fiscal Period (Jun. 30, 2010)
Kansai 0.7%

By Geograp
phyChubu 1.9%
Hokkaido1.7%
Saitama 0.9%
Tohoku10.2%
Chiba 0.8%

Tokyo otherthan 23 wards
2.6%

Saitama
0.9%

North 9.0%

As of the end of
18th Fiscal Period (Jun. 30, 2012)

Kansai 0.7%

Chubu 1.9%
Hokkaido
1.7%
Tohoku10.2%

Chiba 0.8%
Central 5
wards 38.1%

Kanagawa
5.5%

As of the end of
16th Fiscal Period (Jun. 30, 2011)

Kanagawa
5 5%
5.5%Tokyo otherthan 23 wards
2.6%
North 9.0%

Central 5
wards 38.1%

Chubu 2.1%

Kansai 0.8%

Saitama 1.0% Hokkaido
1.9%
TohokuChiba 0.9%
11.3%
Kanagawa
6 2%
6.2%
Tokyo otherthan 23 wards
2.9%

Central 5
wards 30.9%

North 10.1%
East 8.1%

Sourth13.5%

East 7.3%
South 13.5%

East 7.3%

West 7.8%

South 15.1%

West 8.7%

West 7.8%

Greater Tokyo Area: 85.6 % (Tokyo 23 wards: 75.8 %)Parking lots
0.1%

By AgeByy Property Tyype

Seniors 6.5%
Commercial
Facilities 7
7.9%
9%Greater Tokyo Area: 85.6 % (Tokyo 23 wards: 75.8 %)Seniors 6.5%

Parking lots
0.1%

Commercial
Facilities 7.9%

20 years
20‐
24.1%

Residences
62.4%

0‐4 years
24 0%
24.0%

5‐9 years
24.3%
10‐14 years
4.1%

Weighted average age: 12.4 years

Parking lots
0.2%

Of f ices 13.9%
Residences
62.4%

Residences
69.8%

0-4 years
3.8%
20 years
2021.8%20- years
28.3%
5-9 years
44.5%

15‐19 years
23.5%

Seniors 7.3%
Commercial
Facilities 8.9%

Of f ices 22.9%
Of f ices 22.9%

Greater Tokyo Area: 84.0 % (Tokyo 23 wards: 73.0 %)15-19 years
19.3%
10-14
10
14 years
4.1%

Weighted average age: 13.4 years(Note 1) For the classification of “Central 5 wards”, “East”, “West”, “South” and “North”, please see P.17 (Portfolio MAP).
(Note 2) “Tokyo”, "Kanagawa, Chiba, and Saitama prefectures" are defined as “Greater Tokyo Area“.
(Note 3) Percentages are calculated based on acquisition price and are rounded to one decimal place.

15-19 years
23.0%

5-9 years
53.0%

10-14
10
14 years
2.2%

Weighted average age: 13.2 years

18Overview of Residential Properties(As of the end of Jun. 2012)

Residences No. of properties:
39 properties Asset size: JPY 44 bn

By asset size:
Focused on the asset size
from JPY 0.5 bn to JPY 1.5 bn

By geography:
Focused on Tokyo 23 wards(based on the acquisition price)(based on the acquisition price)

Central 5 wardsof Tokyo
39.5%
Others
16.7%

Tokyo 23
wards
83.3%

 Rentable units: 2,241 units  Leasable area: 74,663.33 ㎡(Based on the acquisition price)

Tokyo 23 wards
other thancentral 5 wardsof Tokyo
43.8%

Less than
0.5bn
JPY 4 bn 2.3%
- JPY 8 bn
15.9%
JPY 0.5 bn JPY 2 bn
JPY 1 bn
- JPY 4 bn
31.6%
13.1%

JPY 1 bn
- JPY 2 bn
37.1%

Rent range:
Focused on less than JPY 100 ths

Room type:
Focused on a room for single use(based on unit)(based on unit)

Greater than
JPY 200 ths
JPY 150 ths ‐ 6.8%
JPY 200 ths
10.7%
JPY 100 ths‐JPY 150 ths
18.6%

Less than JPY
100 ths
63.9%

Large
%
11.0%

Medium
27.3%

Small
61.7%

(Note 1) Chuo-ku, Chiyoda-ku, Minato-ku, Shibuya-ku and Shinjuku-ku are defined as “Central 5 wards” . Also, the areas other than Tokyo 23 wards are defined as “Others”.
(N t 2) INV defines
(Note
d fi
“Small”“S ll” a rentable
t bl unitit with
ith an area off lesslthan
th 30 ㎡,
㎡ “Medium”“M di ” as a rentable
t bl unit
it withith an area off 30㎡ or more andd lless than
th 60㎡ andd “L“Large”” as a rentable
t bl unitit
with an area of 60㎡ or more.

19

Historical Occupancy Rates
Averaged occupancy rate during the fiscal period ended Jun. 2012: 95.2%
100.0%
98.0%
96.0%
94.0%
92.0%
90.0%
88.0%
86.0%
84.0%
Jan.

Feb.

Mar.

Apr.

May

Jun.

Year 2012
Residences

Offices &Commercial facilities

Parking lots,
Hotels & Seniors

Total

Residences

Offices &Commercial facilities

Parking lots,
Hotels & Seniors

Total

End of Jun. 2012

93.9%

94.6%

100.0%

95.1%

End of May 2012

93.0%

94.6%

100.0%

94.6%

End of Apr. 2012

93.5%

94.7%

100.0%

94.9%

End of Mar. 2012

94.8%

94.1%

100.0%

95.5%

End of Feb. 2012

95.2%

94.1%

100.0%

95.7%

End of Jan. 2012

94.4%

94.1%

100.0%

95.3%(Note 1) Occupancy rate = total leased area / total leasable area x100
(Note 2) Percentages are rounded to one decimal place.

20

Overview of Borrowings (1) (as of Jun. 30, 2012)
Overview of borrowings
 Balance of the outstanding of borrowings:

JPY 31,603 mn (the previous fiscal period: JPY31,734 mn)

 LTV based on Unitholders’ Capital /LTV based on Appraisal Value (Note1):

49.4% (the previous fiscal period: 49.5%)/ 53.5%(the previous fiscal period: 54.5%)

 Average interest rate (Note 2):

4.407%

 Interest coverage ratio (Note 3):

32.0% (the previous fiscal period: 34.8%)

Diversification of maturity dates on loans (Note 4)(Unit: mn JPY)

Jul. 29,
2014

Jan. 30,
2015

Syndicate Loan A
Prudential LPS Loan

Jan. 25,
2017

Jan. 25,
2018

Jan. 25,
2019

Shinsei Trust Loan A
Shinsei Trust Loan B

Ratio of long-term debt
0.0%

100.0%
長期借入金
Long-term
（注4）

短期借入金
Short-term

Debt (Note 4)
Debt(Note 1) The LTV based on Unitholders’ Capital is calculated based on the following formula:
LTV based on Unitholders’ Capital = Interest-bearing debt / (Interest-bearing debt + unitholders’ capital + unitholders’ capital surplus) x 100
The LTV based on Appraisal Value is calculated using the following formula: LTV based on Appraisal Value = Interest-bearing debt / Appraisal Value x100
(Note 2) The average interest rate is calculated by using weighted average by days and is rounded to three decimal places.
(Note 3) Interest coverage ratio is calculated based on the following formula: Interest coverage ratio= Interest Expenses / Operating Revenues(Note 4) ‘Current
Current portion of long
long-term
term debts on “Syndicate
Syndicate Loan A”
A and “Shinsei
Shinsei Trust Loan B”‘
B are included in “Long-termLong term Debt
Debt” .
Furthermore, JPY 150 million a year (JPY 37.5 million every three months) with respect to Syndicate Loan A and JPY 112 million a year
(JPY 28 million every three months) with respect to Shinsei Trust Loan B, are repaid by the scheduled repayments.
Also, regarding each Prudential LPS Loans, on each principal and interest payment date (every three months) after three years have passed since the borrowing date,
INV will pay the amount calculated on the assumption that the remaining principal as of the date is repaid in equal installments of the principal and the interest over 20 years(80 times in total).
(Note 5) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

21

Overview of Borrowings (2) (As of Jun. 30, 2012)
Loan Name

LenderBorrowing date

Outstanding
Borrowing

Interest Rate(per annum)etc.

Maturity date

Shinsei Bank, Limited
Citibank Japan Ltd.
Syndicate
Loan A

2 4361 %2.43615%

Jul. 29, 2011

Sumitomo Mitsui Trust
Bank, Limited(Note 2)

JPY 10,887 mn

Variableinterest rate
(Three-month
JPY TIBOR +spread
(2.1%))

Jul. 29, 2014

The Bank of New York
Mellon Trust (Japan), Ltd.

O t 31,Oct.
31 2011

Resona Bank, Limited

Jul. 29, 2011

Shinsei Trust
L
Loan
A

Shinsei Trust & Banking
C Ltd
Co.,
Ltd.

Jul. 29, 2011

JPY 7,100 mn

8.50000%
Fixed
interest rate

Jan. 30, 2015

Shinsei Trust
Loan B

Shinsei Trust & Banking
Co., Ltd.

Jul. 29, 2011

JPY 2,616 mn

9.50000%
Fixed
interest rate

Jan. 30, 2015

Subtotal of long-termlong term debt (Note 1)

Prudential
LPS Loan(Note 3)Prudential Mortgage Asset
Holdings 1 Japan
Investment Business
Limited Partnership

JPY 2020,603603 mnJPY 3,750 mn
Jul. 29, 2011

JPY 3,620 mn
JPY 3,630 mn

Subtotal of long-term debt in trust

JPY 11,000 mn

Total debt

JPY 31,603 mn

Jan. 25, 2017
2.50000%
Fixed
interest rate

Jan. 25, 2018
Jan. 25, 2019

(Note 1) “Current
Current portion of long
long-term
term debts of “Syndicate
Syndicate Loan A”
A and “Shinsei
Shinsei Trust Loan B””
B are included in “Subtotal
Subtotal of long
long-term
term debt
debt” .
Furthermore, JPY 150 million a year (JPY 37.5 million every three months) with respect to Syndicate Loan A, and JPY 112 million a year (JPY 28 million every three months)
with respect to Shinsei Trust Loan B, are repaid by the scheduled repayments.
(Note 2) The interest rates are applicable for the period from April 27, 2012 through July 30, 2012.
(Note 3) Regarding each Prudential LPS Loans, on each principal and interest payment date (every three months) after three years have passed since the borrowing date,
INV will pay the amount calculated on the assumption that the remaining principal as of the date is repaid in equal installments of the principal and the interest over 20 years(80 times in total).
(Note 4) The outstanding of borrowing is rounded down to the indicated unit.

22

(Ref.)
Overview of Borrowings (As of Jul. 31, 2012)
Loan Name

LenderBorrowing date

Outstanding
Borrowing

Interest Rate(per annum)etc.

Maturity date

Shinsei Bank, Limited
Citibank Japan Ltd.
Syndicate
Loan A

2 42833%
2.42833%

Jul. 29, 2011

Sumitomo Mitsui Trust
Bank, Limited(Note 2)

JPY 10,850 mn

Variableinterest rate
(Three-month
JPY TIBOR +spread
(2.1%))

Jul. 29, 2014

The Bank of New York
Mellon Trust (Japan), Ltd.

O t 31,Oct.
31 2011

Resona Bank, Limited

Jul. 29, 2011

Shinsei Trust
L
Loan
A

Shinsei Trust & Banking
C Ltd
Co.,
Ltd.

Jul. 29, 2011

JPY 7,100 mn

8.50000%
Fixed
interest rate

Jan. 30, 2015

Shinsei Trust
Loan B

Shinsei Trust & Banking
Co., Ltd.

Jul. 29, 2011

JPY 2,588 mn

9.50000%
Fixed
interest rate

Jan. 30, 2015

Subtotal of long-termlong term debt (Note 1)

Prudential
LPS Loan(Note 3)Prudential Mortgage Asset
Holdings 1 Japan
Investment Business
Limited Partnership

JPY 2020,538538 mnJPY 3,750 mn
Jul. 29, 2011

JPY 3,620 mn
JPY 3,630 mn

Subtotal of long-term debt in trust

JPY 11,000 mn

Total debt

JPY 31,538 mn

Jan. 25, 2017
2.50000%
Fixed
interest rate

Jan. 25, 2018
Jan. 25, 2019

(Note 1) “Current
Current portion of long
long-term
term debts of “Syndicate
Syndicate Loan A”
A and “Shinsei
Shinsei Trust Loan B””
B are included in “Subtotal
Subtotal of long
long-term
term debt
debt” .
Furthermore, JPY 150 million a year (JPY 37.5 million every three months) with respect to Syndicate Loan A, and JPY 112 million a year (JPY 28 million every three months)
with respect to Shinsei Trust Loan B, are repaid by the scheduled repayments.
(Note 2) The interest rates are applicable for the period from April 27, 2012 through July 30, 2012.
(Note 3) Regarding each Prudential LPS Loans, on each principal and interest payment date (every three months) after three years have passed since the borrowing date,
INV will pay the amount calculated on the assumption that the remaining principal as of the date is repaid in equal installments of the principal and the interest over 20 years(80 times in total).
(Note 4) The outstanding of borrowing is rounded down to the indicated unit.

23

Overview of Borrowing Mortgages(As of Jun. 30, 2012)
Loan Name

Maturity Date

BorrowingAmount as of Jun.
2012

Mortgages

No. ofProperties

21

Syndicate Loan A

Jul. 29, 2014

JPY 10,887mn

City House Tokyo Shinbashi,
Shinbashi Winbell Kagurazaka,
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
6-Jo,
Jo, Cross Square NAKANO,
Ohki Aoba Building, Lexington Plaza Hachiman , AEON TOWN
Sukagawa, Shinjuku Island and Stop Parking Kanda-Sudacho

Shinsei Trust Loan A

Jan. 30, 2015

JPY 7,100 mn

Spacia Ebisu and Lexington Plaza Nishigotanda

2

Shinsei Trust Loan B

Jan. 30, 2015

JPY 2,616 mn

Bon Sejour Chitose Funabashi, Bon Sejour Yotsugi, Bon Sejour
Hino, Bon Sejour Musashi Shinjo, Bon Sejour Komaki, Bon
Sejour Hadano Shibusawa and Bon Sejour Itami

7

Jan 25Jan.
25, 2017

JPY 3
3,750
750 mnNisshin Palacestage Daitabashi, Nisshin Palacestage HigashiNagasaki,g, Growth Maison Shin-Yokohama,, Belle Face UenoOkachimachi, Growth Maison Yoga, Shibuya-Honmachi Mansion,
City Heights Kinuta and Foros Nakamurabashi

8

Jan. 25, 2018

JPY 3,620 mn

Growth Maison Gotanda, Growth Maison Kameido, Emerald
House, Growth Maison Ikebukuro, Route Tachikawa, College
Square Machida, Belair Meguro and Wacore Tsunashima I

8Jan. 25, 2019

JPY 3,630 mn

Harmonie Ochanomizu, Suncrest Shakujii-Koen, Grand Rire
Kameido, Acseeds Tower Kawaguchi-Namiki, Capital Heights
Kagurazaka, Growth Maison Kaijin, College Square Machiya andKindai Kagakusha Building

8-

JPY 31,603 mn-

54

Prudential LPS Loan

Total

24

Overview of Unitholders (1)Major Unitholders (Top 10)
17th Fiscal Period (As of Dec. 31, 2011)

18th Fiscal Period (As of Jun. 30, 2012)
Number ofunits held

Name

Name

(%)

Number ofunits held(%)

1 Calliope Godo Kaisha

609,94245.23

1 Calliope Godo Kaisha

609,94245.23

2 New Mission Funding G.K.

129,400

9.59

2 JP MORGAN CHASE BANK 380180

136,248

10.10

3 PROSPECT JAPAN FUND LIMITED

87,231

6.46

3 New Mission Funding G.K.

129,400

9.59

4 THE CHASE MANHATTAN BANK, N.A. LONDON SPECIAL ACCOUNT NO.1

67,277

4.98

4 PROSPECT JAPAN FUND LIMITED

61,1654.53

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

61,674

4.57

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

59,912

4.44

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

36,573

2.71

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

39,306

2.91

7 CGML - IPB CUSTOMER COLLATERAL ACCOUNT

33,7372.50

7 CGML - IPB CUSTOMER COLLATERAL ACCOUNT

17,094

1.26

8 MELLON BANK TREATY CLIENTS OMNIBUS

20,834

1.54

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

15,936

1.18

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

17,065

1.26

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

13,4280.99

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

14,104

1.04

10 MELLON BANK TREATY CLIENTS OMNIBUS

13,0500.96

1,077,837

79.94

1,095,481

81.24

Issued investment units

1,348,292

Issued investment units

1,348,292

Total

Total

(Note 1) Percentages (%) are rounded to two decimal places.
(Note 2) As a result of issuance of 711, 597 of new investment units of INV by way of Third-Party Allotment on July 29, 2011, the number of issued investment units has become 1,348,292 units.

<(Ref.) Major Unitholding Report>
Firm name
Prospect Asset Management, Inc.

Submitted on
May. 23, 2012

Number of units held
Holding ratio (%)
227,576
16.87(Note) Percentages (%) are rounded to two decimal places.

25

Overview of Unitholders (2)Breakdown of numberof unitholders by their status
所有者別投資主数
Other domestic companies
1.1% (118 persons)Foreign investors
0.5% (54 persons)FinancialFii l iinstitutions
tit ti(incl. securities companies)
0.3% (29 persons)Individual & Others
98.1% (10,592 persons)

Other domestic companies
1.1% (118 persons)Financial institutions(incl. securities companies)
0.3% (28 persons)Individual & Others
98.2% (10,510 persons)

As of the end of 17 th fiscal period (Dec. 2011)
Number of total unitholders: 10,793 persons

Foreign investors
0.4% (47 persons)

As of the end of 18 th fiscal period (Jun. 2012)(Note) Percentages are rounded to one decimal place. The same shall apply hereinafter.

Number of total unitholders: 10,703 persons

Breakdown of number of units held by the status of unitholders

Foreign investors
18.5%((250,033,
units))

Individual & Others
14.7%(198,120 units)
Financial institutions(incl. securities companies)
11.1%(149,378 units)

Other domestic companies
55 7%(750 761 units)
55.7%(750,761

Individual & Others
Foreign investors 15.0%(202,567 units)
18.6%(250,234 units)
Financial institutions(incl. securities companies)
10.8% (145,272 units)
Other domestic companies
55.6%(750,219 units)

As of the end of 17 th fiscal period (Dec. 2011)

As of the end of 18 th fiscal period (Jun. 2012)

Issued investment units: 1,348,292 units

Issued investment units: 1,348,292 units

26

Historical Unit Price
4th
(JPY)

5th

6th

7th

8th

9th

10th

11th

12th

13th

14th

15th

16th

17th

18th
(Volume)

Unit Price of OSE
Unit Price of TSE
VolumeMay.31, Dec.31, Jun.30,
2004
2004
2005

Dec.31, Jun.30, Dec.31, Jun.30, Dec.31, Jun.30, Dec.31, Jun.30, Dec. 31,
2007
2008
2008
2006
2009
2007
2005 20062009

Dec. 31, Jun. 30, Dec.31, Jun. 30,
2010
2011
2011
2012

(Note 1) Regarding the volume of transaction from Aug. 1, 2006 to Oct. 6, 2007, total volume of the Tokyo Stock Exchange (TSE) and the Osaka Securities Exchange(OSE) is used in the above chart.
(Note 2) Regarding unit prices above, the closing prices of OSE are used until July 31, 2006 and those of TSE are used since August 1, 2006.
(Note 3) In order to focus trading on one securities exchange and reduce administrative tasks and costs accompanying cross listing, former TGR (INV) was delisted from the OSE on October 6, 2007.
Consequently, INV is listed only on the TSE as of the date of this material.
(Note 4) Former TGR (INV) merged with former LCP effective on Feb. 1, 2010 and split its investment units with one investment unit into five unit.
(Note 5) For the purpose of providing continuity to the unit prices
prices, the unit prices on or before Jan
Jan. 31
31, 2010 as indicated in the above chart are the figures adjusted by dividing the actual unit
prices by five.

27

Memo

28

Section 4 Activities to Improve the Asset Valueand the Profitability

29

Internal Growth Strategies
Activities to Improve the Asset Value and the Profitability
 In order to realize the principle that INV provides stable medium-and
medium and long-termlong term cash flow to its unitholders,unitholders INV has worked ondiversified measures for establishing its stable financial base and growth strategy.
Activities to improve
occupancy rates and level of rents

Activities for cost reductions

Improving the asset value and the profitability(mn)<Historical Appraisal Value>

60,000(%)
100.0<Historical Occupancy Rates>
100.0

59,565

100.0

100.0

59 50059,50059,10659,00095.0
92.2

58,65858,50095.0

58,199

90.9

90.0

90.1

58,000

92.9
92.6

94.1
94.0

100.0
95.1
94.6
93.9

住居
Residences

Offices andオフィスビル・Commercial Facilities
商業施設

Parking Lots,

駐車場・ホテル・Hotels and Seniors
シニア

89.4

Total Portfolio
ポートフォリオ全体(Note 3)85.0

57,5002010.122011.62011.122012.6(%) <Historical Ratio of Property Management Fees> (Note 2)
8.50

2010.122011.61,600,000

7.70

2011.121,564,247

1,528,000

7.79

7.50

2012.6<Historical NOI>

(ths)

1,500,000

7.26

6.54

1 478 589
1,478,589
1,447,491

1,400,000

6.50
1,300,000

1,200,000

5.50
2011.62011.122012.62012.12(Forecast)Total appraisal value: JPY 59,106 mn (Compared to the previous FP: JPY +907 mn)
Ratio of property management fees: 7.26 % (Compared to the previous FP: -0.53%)

2011.62011.122012.62012.12(Forecast) (As of the end of Jun. 2012)

Occupancy of total portfolio: 95.1 % (Compared to the previous FP: +0.1 %)NOI: JPY 1,564,247 ths (Compared to the previous FP: JPY+116,756 ths)

(Note 1) Graphs in this page are based on 54 properties which INV holds as of the end of June 2012.
(Note 2) “Ratio of Property Management Fees“ is calculated based on the following formula:
Ratio of Property Management Fees= (PM fees + Building Management Fees + Management Miscellaneous Expenses) / Rental Revenues X 100(Note 3) INV does not hold hotels as of the end of Jun. 2012.
(Note 4) The forecast for the 19th fiscal period ending Dec. 31, 2012 on this page is based on the announcement in the financial summary (Kessan-Tanshin) dated Aug. 27, 2012, and has been subsequently
revised. Please refer to “Notice concerning Revision of Forecast of Financial Results and Distributions for the 19th Fiscal Period Ending December 2012 and concerning Forecast of Financial Resultsand Distribution for the 20th Fiscal Period Ending June 2013” dated Sep. 26, 2012 for details.

30Internal Growth Strategies
Activities to Improve Occupancy Rates and a Level of Rents
Activities to improve occupancy rates and level of rents
 INV conductedd t d researchh on market
k t trends
t d andd conductedd t d strategict t i tenanttt recruiting
iti basedbd on theth analysis
l i off thethcharacteristics of each property and region.
 INV flexibly reviewed the leasing strategy for rooms for rent which had been vacant for more than 30 days, andimplemented measures against this issue so that INV can maintain a stable and high occupancy rate.
 INV establishedt bli h d strategiest t i reflecting
fl ti theth situation
it ti off theth market
k t andd competingti properties,ti
andd provided
id d thoroughthhinstructions to, and supervision of, the property management companies based on such strategies.

A ti iti tto improve
Activitiesiththe profitability
fit bilit furtherf th INV changed the structures of the leasing of 3 properties (Growth Maison Shin-Yokohama (A33), Growth Maison
Ikebukuro (A36) and Growth Maison Yoga (A37)) out of the owned properties, from fixed rent type to pass through type
(Note 1) after
ft a careful
f l examinationi ti off fifinancial
i l results
lt andd marketk t conditions.
diti
As
A off theth endd off theth fiscalfil period
i d ended
d d JJune
2012, the appraisal value of Growth Maison Ikebukuro (A36) and Growth Maison Yoga (A37) increased from the fiscal
period ended December 2011 in relation to the change of the leasing arrangement.
- A36 Growth Maison Ikebukuro:

Appraisal value compared to the previous FP: +14.5 % (Note 2)- A37 Growth Maison Yoga:

Appraisal value compared to the previous FP: +11.2 % (Note 3)(Note 1) The structure on which the same amount as the rents based on the sublease agreement between a master lease company and end-tenants, are paid to a trustee, isdefined as a pass through type and the one on which the fixed rents are paid, is defined as fixed rent type both in accordance with the master lease agreement
between a trustee and a master lease company.
((Note 2)) This is because, since the type
yp of contract was changed
g from fixed rent type
yp to ppass throughg type,yp the net income, which is the base of calculation for appraisalppvalue,
has increased by 15.7 % mainly due to the increase of rental revenue by 17.6%.
(Note 3) This is because, since the type of contract was changed from fixed rent type to pass through type, the net income, which is the base of calculation for appraisal value,
has increased by 12.4 % mainly due to the increase of rental revenue by 7.3% .

31Internal Growth Strategies
Activities for Cost Reductions
Effect of cost reduction for the fiscal period ended June 2012 (18th fiscal period): JPY - 24 mn
Conducted reduction of operatingp
g expensespand various recurringg costs of INV as one p
part of activities on internal g
growth strategies.
g<Property
p yRelations>
Reduction ofproperty
management feesand building
management fees
throughcomprehensive
cost management<Management
Relations>
Reduction ofexpert fees
(accountant
auditorsdit
andd ttaxaccountants)<Management
Relations>
Reduction ofadministrative
service fees (unitregistrationi t ti anddaccounting)<Management
Relations>
Reduction ofgeneral fee forinvestigation of theproperties<Management
Relations>
Reduction of
expenses related
to investors
relations

JPY -1212 mn

JPY - 1 mn

JPY - 10 mn

JPY - 0.7
0 7 mn

JPY - 0.1
0 1 mnProjected effect of cost reduction for the fiscal period ending December 2012 (19th fiscal period): JPY - 21 mn
INV continues to work on further improvement of its operations and cost reductions.
<Property Relations> INV plans to improve management quality and conduct cost reductions by changing property managementcompanies and building management companies or reviewing the current agreement between them/ Property management fees andb ildi managementt ffees.
building<Management Relations> INV plans to conduct cost reductions on “Administrative service fees (accounting)”.
INV has worked assiduously on further cost reductions other than that above.

32

Disclaimer◆ 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 topurchase investment units of INV.
◆ This material does not constitute or form a part of any disclosure document or an asset management reportrequired by the Financial Instruments and Exchange Act of Japan or regulations thereunder, the Investment Trustand Investment Corporation Act of Japan or regulations thereunder, or the listing rules of the Financial Instruments
Exchanges or other related rules and regulations.
◆ This material contains forward-looking statements and these statements are based on certain assumptions andjudgments in consideration of the available information as of the date of this material; therefore there may becurrently 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, results of 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 and such information is subject to revision or retraction without prior notice.

INQUIRIES:
Consonant Investment Management Co., Ltd. (Asset Manager of INV)
Planning & Finance Department
Tel. +81-3-5411-2733 (Investor Relations)33

AppendixPerformance by Properties in the 18th Fiscal Period(unit:JPY ths)

No.

Property Name

RentalRevenues (1)Rents andCommonExpenses

Property
Other Income
Related
Expenses (2)Facilities
Management
Fees

Taxes and
Other Public
Charges

Insurance
Expenses

Other
Expenses

Depreciation
Expenses (3)(1)－(2)NOI((1)－(2) + (3))

NOI Yield(Acquisition
Price Basis(%))(Note 2)

NOI Yield(Appraisal
Value Basis(%)) (Note 3)

A26 Nisshin Palacestage Daitabashi

41,24738,003

3,244

19,340

7,521

1,492

74

2,637

7,614

21,90629,521

4.7

5.3

A27 Nisshin Palacestage Higashi-Nagasaki

46,63841,497

5,141

25,952

9,687

2,688

102

2,260

11,213

20,68531,8995.2

5.4

A28 Growth Maison Gotanda

27,415

26,772

643

8,841

2,431

1,370

34

654

4,350

18,57422,9255.2

5.1

A29 Growth Maison Kameido

32,14930,804

1,344

14,757

4,523

1,753

47

2,553

5,879

17,391

23,2704.4

4.6

A30 Emerald House

50,85439,525

11,32925,258

8,046

2,675

105

4,881

9,550

25,59535,1464.7

6.1

A31 Harmonie Ochanomizu

39,85636,155

3,701

18,601

6,644

1,873

72

3,161

6,850

21,254

28,105

3.9

4.8

A32 Suncrest Shakujii Koen

35,89633,114

2,782

14,360

3,765

3,172

105

1,010

6,305

21,536

27,841

5.1

5.6

A33 Growth Maison Shin Yokohama

34,08831,5362,551

13,350

4,059

2,480

73

795

5,942

20,737

26,6795.1

5.2

A34 Belle Face Ueno Okachimachi

34,35930,067

4,291

14,502

4,883

1,740

46

2,476

5,355

19,85725,212

4.9

5.5

A35 Grand Rire Kameido

26,666

26,619

46

8,277

375

1,806

49

558

5,487

18,38823,876

5.3

5.4

A36 Growth Maison Ikebukuro

22,64721,5191,128

10,751

3,575

1,099

42

881

5,152

11,896

17,0484.1

4.4

A37 Growth Maison Yoga

21,052

19,726

1,325

9,054

2,818

1,390

42

1,019

3,783

11,997

15,781

4.0

4.8

A38 Route Tachikawa

16,133

14,776

1,357

9,797

3,397

1,081

43

1,496

3,778

6,335

10,114

3.0

3.5

A39 Shibuya Honmachi Mansion

20,577

19,668

909

5,801

1,801

903

37

1,068

1,991

14,776

16,767

5.2

5.8

A40 City Heights Kinuta

17,00916,320

689

6,929

3,346

924

37

950

1,671

10,08011,751

3.6

5.3

A41 Acseeds Tower Kawaguchi Namiki

25,17523,437

1,738

11,410

3,221

1,171

40

1,937

5,038

13,76518,804

6.1

5.8

A42 Capital Heights Kagurazaka

19,567

17,184

2,382

8,534

3,857

1,099

40

1,606

1,929

11,032

12,962

4.3

4.9

A43 College Square Machida

18,26818,268

-

3,720

29

501

30

500

2,659

14,547

17,2075.9

6.7

A44 Belair Meguro16,62015,408

1,211

6,747

2,213

850

23

1,458

2,202

9,872

12,075

4.1

4.6

A45 Wacore Tsunashima Ⅰ

19,222

17,771

1,450

8,785

3,062

915

33

872

3,901

10,437

14,3385.0

5.7

A46 Foros Nakamurabashi

16,75915,761

998

10,213

3,423

1,012

37

1,512

4,227

6,545

10,773

3.8

4.2

A47 Growth Maison Kaijin

22,582

20,337

2,244

13,979

4,904

2,107

89

1,747

5,131

8,602

13,733

4.9

6.1

A48 College Square Machiya

14,706

14,706

-

5,059

-

980

30

500

3,549

9,646

13,1955.2

5.5

A51 City House Tokyo Shinbashi

83,00280,3582,644

37,553

14,188

5,084

98

5,116

13,06445,44858,513

4.7

4.6

A52 Winbell Kagurazaka

104,927

94,155

10,772

37,179

9,296

6,499

164

5,692

15,52667,74883,274

5.1

5.1

A53 Nishiwaseda Cresent Mansion

67,16963,1893,979

23,92010,031

3,577

125

4,112

6,073

43,24849,322

5.3

5.0

A54 Lexington Square Akebonobashi

45,90544,542

1,362

20,129

4,893

2,222

64

4,263

8,685

25,77534,461

4.8

4.7

A56 Casa Eremitaggio

29,50627,1472,359

16,048

3,065

1,796

53

2,326

8,805

13,45822,2644.2

4.5

A59 Towa City Coop Shin-otsukaⅡ

32,65331,5981,054

13,481

4,250

1,419

52

2,762

4,996

19,171

24,168

5.6

5.3

A61 Bichsel Musashiseki

24,61923,208

1,410

11,840

6,094

1,199

48

1,737

2,760

12,77915,5395.4

5.5

A62 Lexel Mansion Ueno Matsugaya

33,38230,9802,402

16,192

4,063

2,005

64

1,842

8,216

17,19025,407

5.3

5.0

A63 Towa City Coop Sengencho

63,62059,095

4,525

30,774

16,414

3,130

104

2,056

9,070

32,84541,916

7.6

6.9

A64 Royal Park Omachi

23,551

20,3603,191

13,819

5,658

1,659

64

1,838

4,598

9,732

14,331

6.9

6.9

A65 Lexington Square Haginomachi

17,63015,349

2,280

8,928

2,634

1,203

41

1,510

3,538

8,702

12,240

7.4

6.9

A66 Visconti Kakuozan

11,718

10,633

1,084

6,556

2,715

962

21

1,073

1,782

5,161

6,944

5.5

6.2

A71 Lexington Square Daitabashi

32,926

31,245

1,680

15,324

3,204

1,486

44

2,587

8,002

17,60225,6045.3

5.3

A72 Lexington Square Honjo-Azumabashi

17,495

16,3691,125

10,418

2,884

840

31

1,768

4,893

7,077

11,970

4.7

4.7

A73 AMS TOWER Minami 6-Jo

49,53545,4944,041

29,604

8,370

1,312

127

5,519

14,274

19,931

34,2065.8

6.9

A75 Spacia Ebisu

189,227

171,237

17,99071,656

13,6308,932

280

12,21036,602

117,571

154,174

4.4

4.6

1,446,369

1,333,951

112,418

637,458

198,984

78,427

2,628

92,956

264,461

808,911

1,073,372

4.9

5.1

Subtotal of Residences
B8 Kindai Kagaku Sha Building
B9 Shinjuku Island

36,732(Note 3)31,479(Note 3)

5,252
(Note 3)22,054(Note 3)

8,332
(Note 3)4,454
(Note 3)78
(Note 3)759
(Note 3)8,429
(Note 3)

14,677(Note 3)

23,106(Note 3)

3.6

4.7

2.4

3.3

B14 Lexington Plaza Nishigotanda

132,214116,150

16,06385,671

28,712

12,913209

1,216

42,61846,542

89,161

3.7

4.2

B15 Cross Square NAKANO

25,935

20,847

5,087

17,024

6,463

3,969

88

2,875

3,628

8,910

12,5382.4

2.7

B16 Ohki Aoba Building

42,187

34,1298,058

28,924

11,632

4,053

108

762

12,367

13,26325,631

6.3

8.7

B17 Lexington Plaza Hachiman

158,494

127,570

30,92376,972

42,21812,036176

2,519

20,021

81,521

101,542

6.2

6.6

B18 AEON TOWN Sukagawa

144,266

143,262

1,003

100,72156,124

13,424

222

1,511

29,43843,544

72,983

6.3

7.1

557,027

490,637

66,389341,867

158,926

54,031

957

9,644

118,307

215,160

333,467

4.7

5.4

Subtotal of Offices etc.
C1 Stop Parking Kanda-Sudacho

2,443

2,443

-

269

-

255

-

-

13

2,174

2,188

4.5

4.8

C21 Bon Sejour Chitose Funabashi

23,91322,549

1,364

5,504

230

1,821

58

-

3,393

18,40921,802

6.4

6.0

C22 Bon Sejour Yotsugi

22,534

22,534

-

4,881

225

1,078

47

-

3,529

17,652

21,181

6.5

6.2

C23 Bon Sejour Hino

21,411

21,411

-

4,167

214

1,227

47

-

2,678

17,24319,922

7.0

6.2

C24 Bon Sejour Musashi-Shinjo

17,752

17,752

-

3,781

167

1,442

41

-

2,129

13,971

16,101

6.6

5.9

C25 Bon Sejour Komaki

45,59845,598-13,152

201

4,942

198

-

7,810

32,44540,2567.7

7.6

C26 Bon Sejour Hadano Shibusawa

23,80823,478

330

7,949

213

1,927

84

-

5,723

15,85921,583

6.4

7.0

C27 Bon Sejour Itami

15,97815,978

-

5,245

145

1,407

55

-

3,638

10,733

14,371

6.0

6.7

Subtotal of Parking lots etc.

173,441

171,747

1,694

44,951

1,397

14,104532-

28,916

128,490

157,407

6.7

6.6

Total

2,176,839

1,996,336

180,5021,024,277

359,308

146,563

4,118

102,601

411,685

1,152,562

1,564,247

5.0

5.3

(Note 1) NOI Yield (%) (Acquisition Price Basis)= (( Rental Revenues - Property Related Expenses + Depreciation Expenses)/ Operation Days x 365)/ Acquisition Price(Note 2) NOI Yield (%) (Appraisal Value Basis)= (( Rental Revenues - Property Related Expenses + Depreciation Expenses)/ Operation Days x 365)/ Appraisal Value(Note 3) Figures are not written since the tenants do not give approvals to disclose them in public.
(Note 4) Accounting period: from Jan. 1, 2012 to Jun. 30, 2012.
(Note 5) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

1/3

Appraisal Values & Book Values at the end of the 18th Fiscal Period

Appraisal Value

Property NameNo.

Cap Rate

Book Valueas of Jun.
2012

As of
Acquisition

As of Jun.
2011 (INV)

As of Dec.
2011 (INV)

As of Jun.
2012 (INV)(ths JPY)(ths JPY)(ths JPY)(ths JPY)(ths JPY)

Compared to
Dec. 2011
(INV)

(%)

As of Dec.
2011 (INV)

As of Jun.
2012 (INV)

Changes

(%)

(%)

(%)

A26 Nisshin Palacestage Daitabashi

1,143,059

1,300,000

1,100,000

1,090,000

1,110,000

1.8

5.35

5.35

-

A27 Nisshin Palaistage Higashi-Nagasaki

1,113,799

1,300,000

1,130,000

1,120,000

1,180,000

5.4

5.35

5.35

-

A28 Growth Maison Gotanda

864,087

991,000

899,000

891,000

909,000

2.0

5.00

5.00

-

A29 Growth Maison Kameido

1,036,064

1,110,000

996,000

1,000,000

1,020,000

2.0

5.10

5.10

-

A30 Emerald House

1,453,494

1,570,000

1,160,000

1,160,000

1,160,000

-

5.30

5.30

-

A31 Harmonie Ochanomizu

1,398,555

1,710,000

1,150,000

1,160,000

1,180,000

1.7

5.10

5.10

-

A32 Suncrest Shakujii Koen

1,057,541

1,220,000

989,000

990,000

993,000

0.3

5.15

5.15

-

A33 Growth Maison Shin Yokohama

1,016,403

1,110,000

1,020,000

1,020,000

1,020,000

-

5.20

5.25

0.05

A34 Belle Face Ueno Okachimachi

1,004,546

1,100,000

926,000

922,000

915,000

-0.8

4.95

5.00

0.05

A35 Grand Rire Kameido

877,193930,000

889,000

889,000

889,000

-

5.20

5.25

0.05

A36 Growth Maison Ikebukuro

797,353

856,000

682,000

682,000

781,000

*

14.5

5.10

5.15

0.05

A37 Growth Maison Yoga

778,198

831,000

596,000

597,000

664,000

*

11.2

5.05

5.10

0.05

A38 Route Tachikawa

659,312749,000

604,000

607,000

582,000

-4.1

5.35

5.35

-

A39 Shibuya Honmachi Mansion

657,970678,000

588,000

564,000

576,000

2.1

5.15

5.15

-

A40 City Heights Kinuta

644,701

707,000

468,000

457,000

447,000

-2.2

5.25

5.25

-

A41 Acseeds Tower Kawaguchi Namiki

591,745

698,000

631,000

627,000

645,000

2.9

5.95

6.00

0.05

A42 Capital Heights Kagurazaka

620,153

647,000

532,000

536,000

528,000

-1.5

5.15

5.15

-

A43 College Square Machida580,992

597,000

514,000

514,000

515,000

0.2

5.75

5.75

-

A44 Belair Meguro

580,114608,000

535,000

519,000

532,000

2.5

4.90

4.90

-

A45 Wacore Tsunashima Ⅰ

558,462

665,000

506,000

507,000

508,000

0.2

5.45

5.45

-

A46 Foros Nakamurabashi

543,719

634,000

516,000

518,000

518,000

-

5.10

5.10

-

A47 Growth Maison Kaijin

526,968

603,000

429,000

434,000

448,000

3.2

5.80

5.80

-

A48 College Square Machiya

491,774

521,000

484,000

484,000

482,000

-0.4

5.20

5.25

0.05

A51 City House Tokyo Shinbashi

2,457,602

2,790,000

2,470,000

2,470,000

2,540,000

2.8

5.30

5.20

-0.10

A52 Winbell Kagurazaka

3,186,502

3,690,000

3,190,000

3,200,000

3,260,000

1.9

5.20

5.00

-0.20

A53 Nishiwaseda Cresent Mansion

1,858,588

2,190,000

1,880,000

1,930,000

1,980,000

2.6

5.40

5.30

-0.10

A54 Lexington Square Akebonobashi

1,410,9781,600,000

1,410,000

1,430,000

1,480,000

3.5

5.30

5.20

-0.10

A56 Casa Eremitaggio

1,028,015

1,240,000

987,000

999,000

997,000

-0.2

5.20

5.00

-0.20

A59 Towa City Coop Shin-otsukaⅡ

844,167

937,000

901,000

908,000

916,000

0.9

5.60

5.60

-

A61 Bichsel Musashiseki569,382703,000

572,000

552,000

562,000

1.8

5.60

5.50

-0.10
-0.10

A62 Lexel Mansion Ueno Matsugaya

932,237

1,130,000

965,000

966,000

1,010,000

4.6

5.40

5.30

1,073,481

1,240,000

1,140,000

1,170,000

1,210,000

3.4

6.20

6.20

-

A64 Royal Park Omachi

403,178

564,000

391,000

394,000

416,000

5.6

7.00

6.70

-0.30

A65 Lexington Square Haginomachi

320,718

411,000

309,000

326,000

357,000

9.5

7.20

6.80

-0.40

A66 Visconti Kakuozan

246,948

397,000

234,000

218,000

224,000

2.8

6.10

6.10

-

A71 Lexington Square Daitabashi

938,755

1,019,000

950,000

948,000

975,000

2.8

5.30

5.20

-0.10

A63 Towa City Coop Sengencho

A72 Lexington Square Honjo-Azumabashi*

487,738

525,000

505,000

492,000

506,000

2.8

5.40

5.30

-0.10

A73 AMS TOWER Minami 6-Jo

1,112,008

1,400,000

1,070,000

994,000

1,000,000

0.6

6.40

6.30

-0.10

A75 Spacia Ebisu

6,834,957

9,140,000

6,540,000

6,620,000

6,790,000

2.6

5.00

4.90

-0.10

42,701,472

50,111,000

40,858,000

40,905,000

41,825,000

2.2

-

-

-

1,227,008

1,340,000

983,000

993,000

989,000

-0.4

5.15

5.15

-

719,499

871,000

501,000

488,000

520,000

6.6

5.40

5.40

-

B14 Lexington Plaza Nishigotanda

4,816,321

7,160,000

4,460,000

4,280,000

4,280,000

-

5.20

5.20

-

B15 Cross Square NAKANO

1,044,526

1,038,000

1,040,000

981,000

932,000

-5.0

5.50

5.50

-

759,924

847,000

676,000

593,000

591,000

-0.3

6.50

6.50

-

3,233,509

4,760,000

3,120,000

3,090,000

3,100,000

0.3

6.70

6.70

-

Subtotal of Residences
B8 Kindai Kagaku Sha Building
B9 Shinjuku Island

B16 Ohki Aoba Building
B17 Lexington Plaza Hachiman
B18 AEON TOWN Sukagawa

2,208,942

2,563,000

2,220,000

2,070,000

2,070,000

-

7.30

7.30

14,009,733

18,579,000

13,000,000

12,495,000

12,482,000

-0.1

-

-

-

C1 Stop Parking Kanda-Sudacho

100,878

100,000

91,20091,20091,300

0.1

4.70

4.70

-

C21 Bon Sejour Chitose Funabashi

669,545

791,000

735,000

734,000

734,000

-

5.90

5.90

-

C22 Bon Sejour Yotsugi

635,206

765,000

681,000

681,000

681,000

-

6.20

6.20

-

C23 Bon Sejour Hino

561,251

699,000

641,000

641,000

641,000

-

6.20

6.20

-

C24 Bon Sejour Musashi-Shinjo

475,852

610,000

543,000

543,000

543,000

-

6.10

6.10

-

1,012,253

1,940,000

1,060,000

1,060,000

1,060,000

-

7.60

7.60

-

C26 Bon Sejour Hadano Shibusawa

653,337

962,000

616,000

616,000

616,000

-

7.00

7.00

-

C27 Bon Sejour Itami

462,676

748,000

433,000

433,000

433,000

-

6.70

6.70

-

Subtotal of Parking lots etc.

4,571,001

6,615,000

4,800,200

4,799,200

4,799,300

0.0

-

-

-

Total

61,282,207

75,305,000

58,658,200

58,199,200

59,106,300

1.6

-

-

-

Subtotal of Offices

C25 Bon Sejour Komaki(note) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.
* Properties whose appraisal values are different more than 10 % compared to the previous fiscal period and the reasons of the differences.
A36 Growth Maison IkebukuroThis is because, since the type of contract was changed from fixed rent type to pass through type, the net income, which is the base of calculation for appraisal value, has increased by 15.7 %mainly due to the increase of rental revenue by 17.6%.
A37 Growth Maison Yoga
This is because, since the type of contract was changed from fixed rent type to pass through type, the net income, which is the base of calculation for appraisal value, has increased by 12.4 %mainly due to the increase of rental revenue by 7.3%.
A65 Lexington Square Haginomachi
This is because, since the effect of cost reductions of property management fees and building management fees, net income increased by 3.4% and cap rate decreased by 40bp.

2/3

Portfolio List

(As of Jun. 30, 2012)
No.

Acquisition
Price(JPY mn)

Location

Property Name

Appraisal
Value(JPY mn)

Acquisition
Date

Completion
Date

PropertyAge (years)

Total Rentable Total Leasable
units
Area (㎡)Occupancy
Rate (%)

23 wards

Suginami, Tokyo

1,251

1,110

Jul. 2005

Dec. 1992

19

98

1,771.13

A27 Nisshin Palacestage Higashi-Nagasaki 23 wards

Toshima, Tokyo

1,229

1,180

Jul. 2005

Mar. 1989

22

60

2,681.94

97.8

A28 Growth Maison Gotanda

23 wards

Shinagawa, Tokyo

888

909

Jan. 2006

Jul. 2005

6

48

1,051.50

100.0

A29 Growth Maison Kameido

23 wards

Koto, Tokyo

1,070

1,020

Mar. 2006

Oct. 2005

6

66

1,367.96

95.4

A30 Emerald House

23 wards

Itabashi, Tokyo

1,505

1,160

Aug. 2006

Feb. 1995

16

96

2,152.31

100.0

A31 Harmonie Ochanomizu

23 wards

Bunkyo, Tokyo

1,428

1,180

Aug. 2006

Mar. 1997

14

65

1,748.24

96.1

A32 Suncrest Shakujii Koen

23 wards

Nerima, Tokyo

1,088

993

Aug. 2006

Mar. 1990

21

29

3,029.16

97.1

A33 Growth Maison Shin Yokohama

Surrounding

Yokohama, Kanagawa

1,059

1,020

Aug. 2006

Mar. 2006

5

68

1,858.44

94.1

A34 Belle Face Ueno Okachimachi

23 wards

Taito, Tokyo

1,023

915

Aug. 2006

Feb. 2006

564

1,351.11

100.0

A35 Grand Rire Kameido

23 wards

Koto, Tokyo

906

889

Aug. 2006

Mar. 2006

5

72

1,562.26

100.0

A36 Growth Maison Ikebukuro

23 wards

Toshima, Tokyo

825

781

Aug. 2006

Jan. 2006

542952.8990.5

A37 Growth Maison Yoga

23 wards

Setagaya, Tokyo

795

664

Aug. 2006

Mar. 2006

539

1,015.34

92.4

A38 Route Tachikawa

Surrounding

Tachikawa, Tokyo

676

582

Aug. 2006

Mar. 1997

14

24

1,368.57

67.9

A39 Shibuya Honmachi Mansion

23 wards

Shibuya, Tokyo

651

576

Aug. 2006

Dec. 1986

25

25

1,167.50

96.5

A40 City Heights Kinuta

23 wards

Setagaya, Tokyo

646

447

Aug. 2006

Mar. 1983

28

19

1,235.93

94.6

A41 Acseeds Tower Kawaguchi Namiki

Surrounding

Kawaguchi, Saitama

620

645

Aug. 2006

Feb. 2006

557

1,210.74

94.8

A42 Capital Heights Kagurazaka

23 wards

Shinjuku, Tokyo

604

528

Aug. 2006

May. 1987

24

26

1,126.65

84.4

A43 College Square Machida

Surrounding

Machida, Tokyo

589

515

Aug. 2006

Mar. 1984

27

62

1,047.75

100.0

A44 Belair Meguro

23 wards

Meguro, Tokyo

589

532

Aug. 2006

Oct. 2005

625

557.0587.9

A45 Wacore Tsunashima Ⅰ

Surrounding

Yokohama, Kanagawa

572

508

Aug. 2006

Feb. 1991

2050

908.9984.2

A46 Foros Nakamurabashi

23 wards

Nerima, Tokyo

566

518

Aug. 2006

Sep. 2001

1037

815.76

92.6

A47 Growth Maison Kaijin

Surrounding

Funabashi, Chiba

557

448

Aug. 2006

Oct. 1993

18

34

2,040.27

96.7

A48 College Square Machiya

23 wards

Arakawa, Tokyo

510

482

Aug. 2006

Mar. 2006

543871.35100.0

A51 City House Tokyo Shinbashi

23 wards

Minato, Tokyo

2,520

2,540

Feb. 2010

Aug. 2004

786

3,364.00

93.0

A52 Winbell Kagurazaka

23 wards

Shinjuku, Tokyo

3,260

3,260

Feb. 2010

Feb. 2004

7

118

4,032.70

93.3

A53 Nishiwaseda Cresent Mansion

23 wards

Shinjuku, Tokyo

1,880

1,980

Feb. 2010

Jul. 1987

24

69

4,310.77

88.8

A54 Lexington Square Akebonobashi

23 wards

Shinjuku, Tokyo

1,450

1,480

Feb. 2010

Dec. 2004

7

88

1,987.88

93.4

A56 Casa Eremitaggio

23 wards

Meguro, Tokyo

1,070

997

Feb. 2010

Dec. 2003

8

17

1,197.19

90.0

A59 Towa City Coop Shin-otsukaⅡ

23 wards

Toshima, Tokyo

866

916

Feb. 2010

May. 1993

18

58

1,627.13

92.6
97.1

A26 Nisshin Palacestage Daitabashi

95.8

A61 Bichsel Musashiseki

23 wards

Nerima, Tokyo

577

562

Feb. 2010

Feb. 1992

19

70

1,220.24

A62 Lexel Mansion Ueno Matsugaya

23 wards

Taito, Tokyo

970

1,010

Feb. 2010

Jan. 2005

629

1,969.45

96.3

A63 Towa City Coop Sengencho

Surrounding

Yokohama, Kanagawa

1,110

1,210

Feb. 2010

Oct. 1992

19

154

3,426.36

89.8

A64 Royal Park Omachi

TohokuSendai, Miyagi

415

416

Feb. 2010

Feb. 1993

18

51

1,929.59

93.2

A65 Lexington Square Haginomachi

TohokuSendai, Miyagi

330

357

Feb. 2010

Aug. 2005

6

39

1,528.58

100.0

A66 Visconti Kakuozan

Chubu

Nagoya, Aichi

255

224

Feb. 2010

Sep. 2003

8

8

705.75100.0

A71 Lexington Square Daitabashi

23 wards

Suginami, Tokyo

977

975

Feb. 2010

Nov. 2006

543

1,430.64

97.9

A72 Lexington Square Honjo-Azumabashi 23 wards

Sumida, Tokyo

511

506

Feb. 2010

Oct. 2006

5

33

784.74

90.9

A73 AMS TOWER Minami 6-Jo

Hokkaido

Sapporo, Hokkaido

1,180

1,000

Feb. 2010

Feb. 2007

4120

4,460.56

88.6

A75 Spacia Ebisu

23 wards

Shibuya, Tokyo

7,010

6,790

Feb. 2010

Feb. 2003

8

109

7,794.91

97.1

44,04041,825

-

12.0

2,241

74,663.33

93.9

1,301

989

Aug. 2006

20

13

1,451.54

85.5

Subtotal of Residences-

B8

Kindai Kagaku Sha Building

23 wards

B9

Shinjuku Island

Shinjuku, Tokyo

Jun. 1991

23 wards

Shinjuku, Tokyo

715

520

Mar. 2007

Jan. 1995

161

526.43100.0

B14 Lexington Plaza Nishigotanda

23 wards

Shinagawa, Tokyo

4,880

4,280

Feb. 2010

Jun. 1993

18

11

6,033.58

92.0

B15 Cross Square NAKANO

23 wards

Nakano, Tokyo

1,060

932

Feb. 2010

Jan. 1993

18

45

2,145.00

54.0

B16 Ohki Aoba Building

TohokuSendai, Miyagi

816

591

Feb. 2010

Jul. 1997

14

13

2,178.41

100.0

B17 Lexington Plaza Hachiman

TohokuSendai, Miyagi

3,280

3,100

Feb. 2010

Dec. 2005

618

8,419.15

94.6

B18 AEON TOWN Sukagawa

TohokuSukagawa, Fukushima

2,320

2,070

Feb. 2010

Oct. 2005

6

1

18,440.58

100.0

-

13.7

102

39,194.69

94.6

1

81.04

100.0

14,372

12,482C1 Stop Parking Kanda-Sudacho

23 wards

Chiyoda, Tokyo

97

91

Jan. 2007

C21 Bon Sejour Chitose Funabashi

23 wards

Setagaya, Tokyo

685

734

Feb. 2010

Mar. 1988

2342

2,342.17

100.0

C22 Bon Sejour Yotsugi

23 wards

Katsushika, Tokyo

652

681

Feb. 2010

Mar. 1989

22

62

1,962.87

100.0

C23 Bon Sejour Hino

Surrounding

Hino, Tokyo

574

641

Feb. 2010

May. 1990

21

56

1,984.17

100.0

C24 Bon Sejour Musashi-Shinjo

Surrounding

Kawasaki, Kanagawa

486

543

Feb. 2010

Feb. 1985

26

46

1,710.43

100.0

C25 Bon Sejour Komaki

Chubu

Komaki, Aichi

1,050

1,060

Feb. 2010

Mar. 1991

20

123

8,858.49

100.0

C26 Bon Sejour Hadano Shibusawa

Surrounding

Hadano, Kanagawa

681

616

Feb. 2010

Jul. 1991

20

100

3,435.79

100.0

C27 Bon Sejour Itami

Kansai

Itami, Hyogo

480

433

Feb. 2010

Mar. 1989

22

62

2,129.87

100.0

Subtotal of Parking lots etc.

-

-

4,705

4,799

-

-

22.5

492

22,504.83

100.0

Total

-

-

63,11859,106

-

-

13.2

2,835

136,362.85

95.1

Subtotal of Offices etc.

-

-

-

-

(Note 1) "Tokyo (except for "Tokyo 23 wards")" and "Kanagawa, Chiba, and Saitama prefectures" are defined as "Surrounding".
(Note 2) Property ages in the "Subtotal" and "Total" fields are weighted average figures.
(Note 3) Since "C1 Stop Parking Kanda-Sudacho" is a flat parking lot, there are no buildings on the ground so there are no "Completion Date" and "Property Age".
(Note 4) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.

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