Investment
Invincible Corporation

Audited Financial Statements
for the 19th Fiscal Period(from July 1, 2012 to December 31, 2012)

Greetings from Naoki Shibatsuji, Executive Director of Invincible Investment
Corporation and President & CEO of Consonant Investment Management Co., Ltd.
It gives me much pleasure to take this opportunity to express my sincere gratitude to all
investors of Invincible Investment Corporation (INV) for your ongoing support.
We hereby provide you with a report of the results of INV’s financial results andoperational condition for the 19th period (covering the period from July 1, 2012 toDecember 31, 2012).
With the objective of providing unitholders with stable cash flows over the medium to longterm, we have taken various measures for securing a stable financial foundation andachieving our growth strategy, such as the merger, the invitation of a new sponsor, a capitalincrease via third party allotment, debt refinancing, and implementation of measures forinternal growth.
During the 19th period we not only achieved internal growth but also, for the first time infour years since September 2008, external growth. Using the proceeds of JPY 12,510 million
raised from new borrowings and the refinancing of existing loans, together with JPY 1,533
million in funds on hand, we acquired 24 new residential properties (for an acquisition
price of JPY 14,043 million).
Additionally, a general meeting of unitholders was held in November 2012, at which ourarticles of incorporation were revised, reducing asset management fees and making it
possible to set reasonable distribution even in the case the conduit requirements (Note) are
not met.
As a result of these activities, for the 19th period operating revenues totaled JPY 2476
million, a JPY 299 million increase over the last fiscal period, operating income totaled JPY
1,084, or a JPY 190 million increase, ordinary income was JPY 114 million, or a JPY 11million decrease, and net income was at JPY 114 million, a decrease of JPY 13 million, while
distribution per unit was JPY 117, a decrease of JPY 83 per unit from the last fiscal period.
With respect to the amount of distribution per unit, due to the recognition of one‐time
expenses associated with the acquisition of new properties, including loan‐related costs JPY
120 million, the amount of JPY 117 per unit was below the previous level of approximately
JPY 200 per unit.

1However, in terms of contribution, distribution per unit from net income was JPY 85 (asopposed to JPY 95 for the previous fiscal period), and the distribution per unit fromreversal of surplus resulting from the negative goodwill attributable to the merger was JPY
32 (as opposed to JPY 105 for the previous fiscal period). Thus, on a net income basis thedecrease compared to the previous fiscal period was only JPY 10 per unit.
INV believes that through its new acquisitions of 24 residential properties, it has
substantially expanded the size of its assets and established a strong revenue base.
Commencing with the next fiscal period (ending June 30, 2013), we expect it will bepossible to realize the same level of distribution as in prior periods over the medium tolong term without utilizing the surplus.
From this perspective, we believe the activities undertaken during the 20th period are ofgreat significance for INV.
In terms of measures going forward, we expect to continue to focus on internal growth,with leasing strategies for not only occupancy rates but also rent increases. In addition, wewill continue to consider additional reductions in costs, which are already at a low level. Inaddition, to prepare for future refinancing of borrowings, we will seek to increase the asset
value of properties for collateral, strengthen our existing relations with financial
institutions and forge new relations with other financial institutions.
We look forward to receiving the continued support of all of our unitholders.
Naoki Shibatsuji
Executive Director, Invincible Investment Corporation
President and CEO, Consonant Investment Management Co. Ltd.
(Note)

Unlike normal operating companies, investment corporations are granted a deduction forcorporation tax for profit that is distributed to unitholders, so long as certain conduit
requirements are satisfied. Thus, taxes are applicable only for the unitholders that receive such
distributions, eliminating double taxation. One of the conduit requirements is called the“payment distribution requirement,” which requires distribution of 90% or more of thedistributable profit. INV has losses carried forward for tax purposes of JPY 20,561 million (as ofDecember 31, 2012) and thus expects that even if the conduit requirement is not met, for acertain period, no corporate tax will be payable.

2

FixedDistributions

The 19th fiscal period(the fiscal period endedDecember 2012)

Per investment unit JPY 117

Forecast
Distributions

The 20th fiscal period(the fiscal period endingJune 2013)

Per investment unit JPY 200

3

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)

Invincible Investment Corporation (T. 8963)