This is an English language summary of the original Japanese Asset Management Report available on our
Website. However, no assurance or warranties are given with respect to the accuracy or completeness of thisEnglish language summary. The Japanese original shall prevail in the case of any discrepancies between thissummary and the Japanese original.

Invincible Investment Corporation
Asset Management Report
Fiscal Period ended June 30, 2023 (January 1, 2023 to June 30, 2023)
Content
Greetings from Naoki Fukuda, Executive Director of Invincible Investment Corporation and President & CEO
of Consonant Investment Management Co., Ltd.
Summary of Financial Results
Overview of the Asset Acquired
ESG Initiatives
Unitholder Benefit Program
I.
II.
III.
IV.
V.
VI.
VII.

Asset Management Report
Balance Sheet
Statement of Income and Retained Earnings
Statement of Changes in Net Assets
Notes to Financial Statements
Statement of Cash Distribution
Statement of Cash Flows (Reference Information)

Domestic Portfolio Map (As of August 31, 2023)
Financial Conditions

Overview of Unitholders/Investment Units
Information for Unitholders

Greetings from Naoki Fukuda, Executive Director of Invincible Investment Corporation and President& CEO of Consonant Investment Management Co., Ltd.
We would like to take this opportunity to express our sincere gratitude to all unitholders of Invincible
Investment Corporation ("INV") for your continued support.
We hereby provide you with a report on INV's asset management and financial results for the 40th fiscal period(from January 1, 2023 to June 30, 2023) (the "Reporting Period").
In the Reporting Period, the recovery in domestic hotel demand became prominent as the impact of the Covid19 pandemic has eased significantly, and the legal status of Covid-19 has been downgraded to Category 5
which is the same level as seasonal influenza after May 8, 2023. Demand from domestic tourism has increased
as an alternative to overseas travel due to the continuous appreciation of the U.S. dollar and depreciation of theJapanese yen. As for inbound demand, the number of foreign arrivals has increased with each passing monthsince the relaxation of boarder measures last October, and many foreign tourists can now be seen in various
parts of Japan. Under such circumstances, the occupancy rate for domestic hotels owned by INV generally
remained at around 80%, which represents approximately 90% of 2019 levels before the Covid-19 pandemic.
As such, MyStays Hotel Management Co., Ltd., the major tenant and hotel operator of domestic hotels owned
by INV, did not require any rent reduction during this Reporting Period and INV received the total excess rent
being paid as variable rent in addition to the total original fixed rent.
On the other hand, hotels in the Cayman Islands have experienced a recovery in RevPAR to 2019 levels due toa significant increase in ADR, despite occupancy rates below 2019 levels. The number of commercial flights
to and from the U.S. has not recovered to 2019 levels due to airline staffing shortages and other factors.

On the financing side, we issued investment corporation bonds (3-year and 5-year bonds) in May 2023
for the first time in three years. In the refinancing of the existing borrowings, the focus has shiftedprimarily from short-term borrowings with a term of one year, which was the bulk of the refinancing until
the previous reporting period, to long-term borrowings with a term of three years or more.
Overall, INV announced a distribution per unit of JPY 1,464 by recording operating revenues of JPY 15,914
million, operating income of JPY 10,356 million, and net income of JPY 8,913 million in the Reporting Period.
The distribution per unit has recovered another step closer to the 2019 level before the Covid-19 pandemic.
In July, after the end of the Reporting Period, we issued new investment units through a global offering for the
first time in four years, and together with borrowings, acquired six domestic hotel properties including "Fusaki
Beach Resort Hotel & Villas", our flagship property, on August 1, 2023. INV’s hotel portfolio, the largest hotel
portfolio among J-REITs, has further expanded to exceed JPY 500 billion in assets under management, andhas been further enhanced in terms of the quality of its properties and diversification of areas and hotel types.
On August 10, 2023, it was announced that the Chinese government had lifted the restriction on group travel
to Japan by Chinese nationals, which had been implemented since the beginning of the Covid-19 pandemic.
As a result, a further increase in inbound demand is expected in the future, and INV will strive to further
improve its earnings.
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Although there are issues that need to be addressed, such as rising global energy prices and overall inflation,
we will continue to work diligently to further enhance the value of INV in all aspects, including internal growth,
external growth, financing strategy and sustainability, in order to meet our unitholders’ expectations.

Your continued support is highly appreciated.

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

-2-

Summary of Financial Results
Period fromJanuary 1, 2021 toJune 30, 2021

Period from
July 1, 2021 to
December 31, 2021

Period fromJanuary 1, 2022 toJune 30, 2022

Period from
July 1, 2022 to
December 31, 2022

Period fromJanuary 1, 2023 toJune 30, 2023

Operating
Revenues(JPY million)

3,806

8,406

7,680

11,92915,914

Ordinary Income(JPY million)-3,599

1,014

1,015

5,075

8,914

Net Income(JPY million)-3,599

1,014

1,015

5,075

8,913

Net Assets(JPY million)

245,113

246,130

246,211250,321254,024

Total Assets(JPY million)

497,899494,819

490,118494,237

496,819

Net Assets
per Unit (JPY)40,20340,37040,38341,05841,665Net Assets/Total
Assets (%)

49.2

49.7

50.2

50.6

51.1

Distribution
per Unit (JPY)

15

166

166

832

1,464

Number of Units
Issued (Unit)

6,096,840

6,096,840

6,096,840

6,096,840

6,096,840

Distribution per unit for the 40th fiscal period(the fiscal period ended June 2023)

JPY 1,464(Note) The forward-looking statements, forecasts and goals described in this report are based on available information, assumptions andestimates as of August 31, 2023. These assumptions and estimates are unavoidably uncertain, and could be affected by various risks
and factors beyond INV’s control. Thus, no guarantee can be made regarding the realization of such future forecasts and targets, andactual results may vary significantly.

-3-Overview of the Asset Acquired
Fusaki Beach Resort Hotel & Villas
ResortLocationIshigaki-shi, Okinawa

No. of Rooms

398 rooms

GFA (m2)

23,573.57

Acquisition price

JPY 40,293 million

Tateshina Grand Hotel Takinoyu

Tazawako Lake Resort & Onsen

ResortResortLocation

Location

Chino-shi, Nagano

Semboku-shi, Akita

No. of Rooms

160 rooms

No. of Rooms

80 rooms

GFA (m2)

20,577.41

GFA (m2)

7,289.75

Acquisition price

Acquisition price

JPY 8,365 million

JPY 1,475 million

Hotel MyStays Okayama

Hotel MyStays Aomori Station

Hotel MyStays Soga

Limited Service

Limited Service

Limited Service

Location

Okayama-shi, Okayama

Location

No. of Rooms

145 rooms

No. of Rooms

GFA (m2)

3,023.27

GFA (m2)

Acquisition price

JPY 2,613 million

Acquisition price

Aomori-shi, Aomori

Location

Chiba-shi, Chiba

132 rooms

No. of Rooms

112 rooms

3,963.86

GFA (m2)

3,398.18

JPY 2,445 million-4-

Acquisition price

JPY 2,039 million

ESG Initiatives
INV recognizes the importance of environmental, social, and governance (ESG) considerations in real estate
investment management from the viewpoint of sustainability such as economic and social development andcontributing to global environmental conservation, and regard improvement of sustainability as an importantmanagement issue and implement initiatives to contribute to make our society sustainable.
Initiatives for the Environment
Acquisition of BELS1 Certification
Acquired BELS (Building-Housing Energy-efficiency Labeling System) Certification for seven of INV’shotels, bringing the number of hotels with BELS Certification to 15, including eight hotels that obtained
the certification in the previous period.
Hotel MyStays Oita was rated five stars “★★★★★”, and Hotel MyStays Sapporo Station was rated
four stars “★★★★” due to high energy conservation performance.
(Note 1）BELS is a third-party certification system that evaluates andcertifies the energy-saving performance of a building that theoperators are required to make efforts to display under the Act on
Improving Energy Consumption Performance for Architectural
Structures. Houses and buildings are evaluated based on the value of
BEI (Building Energy Index) derived from the primary energy
consumption based on the government-designated energy
consumption performance standard of architectural structures.
The evaluation result is rated on a five-starscale based on energy conservation
performance (from one star “★” to five stars“★★★★★”), with five stars meaning thehighest energy conservation performance.
Also, two stars or more represent that thebuilding meets the existing energy
conservation standard.

CASBEE Certification for Buildings and Certification for CASBEE for Real Estate2
Acquired CASBEE Certification for Buildings for two hotels, Certification for CASBEE for Real Estate fortwo residential properties.
＜CASBEE Certification for Buildings＞

Rank A

Hotel MyStays
Premier
Akasaka

Rank B+＜Certification for CASBEE for Real Estate＞

Hotel MyStays
PremierKanazawa

Rank A

Royal Parks
Momozaka

Royal Parks
Shinden(Note 2) CASBEE is a method that comprehensively assesses the quality of a building, and evaluates features such as interior comfort andscenic aesthetics, in consideration of environment practices including use of materials and equipment that save energy or achieve smaller
environmental loads. CASBEE Certification for Buildings (Existing Buildings) scores buildings based on the environmental quality andthe environmental load reduction of buildings that are at least one year old after completion. Assessment results by CASBEE are indicatedon a scale with the following five ranks: Rank S "★★★★★", Rank A "★★★★", Rank B+ "★★★", Rank B- "★★", and Rank C "★".
Certification for CASBEE for Real Estate was developed with the aim of making use of the results of the environmental assessment ofbuildings by CASBEE in real estate evaluation. The assessment results are given one of four ranks: Rank S "★★★★★", Rank A"★★★★", Rank B+ "★★★", and Rank B- "★★"

-5-

Green Finance Framework Evaluation
Acquired “Green1 (F)”, the highest rating on Japan
Credit Rating Agency, Ltd. (JCR)’s Green Finance
Framework Evaluation in August 2023.
INV in 2022 GRESB Real Estate Assessment3
GRESB Real Estate Assessment
In the 2022 GRESB Real Estate Assessment, INV received a “2-Star” GRESB Rating, which is based on
overall GRESB scores and its quintile position among participants. INV was also awarded a “GreenStar” designation by achieving high performance in both the “Management Component” that evaluates
policies and organizational structure for ESG (Environmental, Social, and Governance) promotion, andthe “Performance Component” that assesses environmental performance and tenant engagement ofproperties owned. Further, INV was highly evaluated for its ESG information disclosure efforts andreceived an “A Level” the highest level for GRESB Public Disclosure, which assesses the breadth of ESG
disclosure. We will consider preparations for acquiring evaluation by other external organizations, suchas green building certification, to strengthen our ESG initiatives.
(Note 3) GRESB is an annual benchmarking program to evaluate ESG considerationsof property companies and real estate funds. The GRESB Real Estate Assessment isdistinguished by its comprehensive evaluation of initiatives for sustainability of property
companies, REITs and real estate funds, not of individual properties. GRESB rating is arelative evaluation based on comprehensive scores and the highest being "5-stars".

-6-

Unitholder Benefit Program
INV has introduced the unitholder benefit program to improve the satisfaction of its unitholders and expand
the unitholder base. Eligible unitholders can stay at Sheraton Grande Tokyo Bay Hotel and all MyStays
group hotels at special discount rates. INV decided to expand the available period by two months (from six
months to eight months) for stay from the December 2022 Fiscal Period and onwards.
*Detailed information is sent to eligible unitholders along with this report.

Overview of the Unitholder Benefit Program(Note 1)◼ Sheraton Grande Tokyo Bay Hotel
Applicable Hotels◼ All hotels managed by MyStays (Note 2)
All Unitholders whose names are recorded on Invincible’s Unitholders’ Registry
as of the relevant record dates:
Eligible Unitholders *INV decided to remove the eligibility requirement of "holding 10 or moreunits" to enable all INV unitholders to utilize the Unitholder Benefit
Program from the June 2020 Fiscal Period and onwards
The last day of every fiscal period (June 30 and December 31 of each year)
Record Date
Program Details
Hotel Reservation
Available Period(Note 3)

Stay with unitholder special discount rates at the above applicable hotels◼Sheraton Grande Tokyo Bay Hotel
Reservation via phone or Email◼ All MyStays hotels and Kamenoi Hotels
Reservation via official website or phone
From April 1 to November 30 (eligible unitholders as of December 31)
From October 1 to May 31 (eligible unitholders as of June 30)

Sheraton Grande Tokyo Bay Hotel

Hotel Epinard Nasu

Fusaki Beach Resort Hotel & Villas(Note 1)
(Note 2)
(Note 3)

Hotel MyStays Premier Akasaka

The details of the unitholder benefit program described above are as planned by Invincible as of August 31, 2023, and the program may be changed orabolished even after it is has been introduced
Refers to all hotels under MyStays brand managed by MHM, and hotels shown on the MyStays Hotel Group’s official website (https://www.mystays.com/enus/) will be applicable
Available Period represents a period during which you can lodge by using the unitholder benefit program. To enjoy the unitholder benefit program, youactually need to lodge during the availability period

-7-

I.

Asset Management Report

Overview of Asset Management
1

Trends in Investment Corporation’s Operating Results
By Period

Reporting period

36th

37th

38th

39th

40th

fiscal period

fiscal period

fiscal period

fiscal period

fiscal period

Jan. 1, 2021 toJul. 1, 2021 toJan. 1, 2022 toJul. 1, 2022 toJan. 1, 2023 toJun. 30, 2021

Dec. 31, 2021

Jun. 30, 2022

Dec. 31, 2022

Jun. 30, 2023

Operating Results

Operating revenue(JPY thousand)

3,806,176

8,406,334

7,680,227

11,929,599

15,914,981(Rental revenue – real estate)(JPY thousand)(3,806,176)(5,837,847)(5,198,229)(10,182,751)(12,000,955)

Operating expenses(JPY thousand)

6,147,595

6,113,994

5,565,846

5,672,588

5,558,241(Property-related expenses)(JPY thousand)(4,720,815)(4,777,042)(4,498,723)(4,606,538)(4,488,341)

Operating income (loss)(JPY thousand)-2,341,419

2,292,339

2,114,380

6,257,011

10,356,739

Ordinary income (loss)(JPY thousand)-3,599,083

1,014,799

1,015,760

5,075,941

8,914,347

Net income (loss)(JPY thousand)-3,599,688

1,014,194

1,015,155

5,075,336

8,913,742(a) (JPY thousand)

497,899,915

494,819,805

490,118,752

494,237,781

496,819,930(%)(-3.6)(-0.6)(-1.0)

(0.8)

(0.5)

(JPY thousand)

249,198,000

244,945,000

241,372,000

240,797,000

239,190,000(b) (JPY thousand)

245,113,891

246,130,354

246,211,129

250,321,091

254,024,091(%)(-1.8)

(0.4)

(0.0)

(1.7)

(1.5)

Unitholders’ capital(JPY thousand)

235,701,512

235,701,512

235,701,512

235,701,512

235,701,512

Total distributions(c) (JPY thousand)

91,452

1,012,075

1,012,075

5,072,570

8,925,773(Note 1) (%)

-

99.8

99.7

99.9

100.1

(d) (Units)

6,096,840

6,096,840

6,096,840

6,096,840

6,096,840(b) / (d) (Note 2) (JPY)40,20340,37040,38341,05841,665

Total assets(change from last period)

AssetsInterest-bearing debt
Net assets(change from last period)

Dividend
StatusDividend payout ratio
Number of investment units

Information per Unit

issued and outstanding
Net assets per unit(c) / (d) (JPY)

15

166

166

832

1,464

(Distributions of earnings per unit)

(JPY)

(15)

(166)

(166)

(832)

(1,464)(Distributions in excess of retained

(JPY)

(-)

(-)

(-)

(-)

(-)

Distributions per unit

earnings per unit)
Return on assets(annualized)

Financial Measures

Return on equity(annualized)
Capital ratio(change from last period)(Note 3) (%)

0.2

0.2

1.0

1.8

(0.4)

(0.4)

(2.0)

(3.6)

-1.5

0.4

0.4

2.0

3.5

(-2.9)

(0.8)

(0.8)

(4.1)

(7.1)

(%)

49.2
(0.9)

49.7
(0.5)

50.2
(0.5)

50.6
(0.4)

(0.5)

(Note 3) (JPY thousand)

2,090,413

4,201,550

4,936,210

10,509,695

14,523,824(Note 3) (%)(b) / (a) (Note 3) (%)

NOI(Net Operating Income)-0.7(-1.4)

51.1(Note 1) Dividend payout ratio is calculated in accordance with the following formula and rounded to one decimal place:
Dividend payout ratio = Distribution amount (Excluding distributions in excess of retained earnings) / Net income × 100(Note 2) Net assets per unit are rounded to the nearest unit.
(Note 3) Figures above are calculated as below, and ratios are rounded to one decimal place. Figures annualized according
to the number of days are also shown.
Return on assets = Ordinary income for relevant period / ((Total assets at start of relevant period + Total assets at endof relevant period) / 2) x 100.

-8-

Return on equity = Net income for relevant period / ((Net assets at start of relevant period + Net assets at end of
relevant period) / 2) x 100.
Capital ratio = Net assets at end of relevant period / Total assets at end of relevant period x 100.
NOI = Rental revenue – Property-related expenses + Management contract revenue - Management contract expenses+ Depreciation expense for relevant period

2Overview of Asset Management for the Fiscal Period Ended June 2023
(a)

Main Trends of INV

INV was established in January 2002 in accordance with the Investment Trust and Investment Corporation Act (Act No.
198 of 1951, as amended; the “Investment Trust Act”). In May 2004, INV was listed on the Osaka Securities Exchange(application for delisting was made in August 2007), and in August 2006 was listed on the Real Estate Investment andTrust Securities Section of the Tokyo Stock Exchange (Ticker Code: 8963).
After the absorption-type merger with LCP Investment Corporation (“LCP”) was implemented on February 1, 2010, INV
issued new investment units through a third-party allotment on July 29, 2011 and refinanced its debt. Calliope Godo
Kaisha (“Calliope”), an affiliate of the Fortress Investment Group LLC (“FIG” and together with Calliope and otheraffiliates of FIG, collectively the “Fortress Group”) was the main allottee, and the sponsor changed to the Fortress Group.
Ever since the commencement of sponsorship from the Fortress Group (Note 1), INV has been focusing its efforts on
improving the profitability of its portfolio and establishing a revenue base in order to secure stable distributions, and has
strengthened the lender formation through new borrowings and the refinancing of existing bank borrowings, thereby
creating a financial base for external growth. With this platform as a base, in June 2014, Consonant Investment
Management Co., Ltd., the asset manager to which INV entrusts the management of its assets (“CIM”) revised theInvestment Guidelines for INV, positioned hotels as a core asset class alongside residential properties with a view towards
expanding investments in the hotel sector in which demand is forecasted to rise going forward, and has expanded its
portfolio.
INV's portfolio at the end of the Fiscal Period ended June 30, 2023 (the “Reporting Period”) comprised of 128 properties(86 hotels (Note 2) (Note 3), 41 residential properties and one retail facility) with a total acquisition price of JPY 491,416
million (Note 4). Furthermore, INV’s hotel portfolio has the largest asset size (Note 5) of JPY 450,631 million (86properties, 15,597 rooms) among all J-REITs (real estate investment corporations which listed on the Tokyo Stock
Exchange Real Estate Investment Trust Securities Market, hereinafter the same shall apply) hotel portfolios including
Hotel J-REITs (Note 6) .
(Note 1)

(Note 2)

(Note 3)Calliope transferred 80.0% of issued shares of CIM to Fortress CIM Holdings L.P., a subsidiary of SoftBank
Group and 20.0% to SoftBank Group Corp. (“SoftBank Group”) on March 29, 2018, but the SoftBank Grouptransferred its issued shares of CIM to Fortress CIM Holdings L.P. on May 23, 2023. As of the date of thisdocument, SoftBank Group indirectly owns 100% of issued shares of CIM through Fortress CIM Holdings L.P.
The SoftBank Group announced that it has entered into a definitive agreement to transfer its interest in theindirect parent company of Fortress CIM Holdings L.P. to Mubadala Capital and others during the first quarterof 2024.
The preferred equity interest held by INV is counted as one property. Such preferred equity interest issued bya special purpose company (tokutei mokuteki kaisha, “TMK”) refers to 178,458 units of the preferred equity
interest issued by Kingdom Special Purpose Company (equivalent to 49.0% of the outstanding preferred equity
interest), which owns the trust beneficiary interest of the Sheraton Grande Tokyo Bay Hotel as an underlying
asset. The property is classified as a hotel, based on the use of Sheraton Grande Tokyo Bay Hotel, theunderlying asset of the preferred equity interest, and INV’s investment amount of the preferred equity interestis used as the acquisition price of the preferred equity interest, unless otherwise stated. The “underlying asset”
refers to the real estate or the real estate related assets owned by a operator of an anonymous association (tokumei
kumiai, “TK”) interest or a TMK relating to the preferred equity interest which INV owns, thus the real estateor the real estate related assets which will be the revenue source of INV. Hereinafter the same shall apply.
From September 28, 2018 (Cayman Island local time; September 29, 2018 in Japan local time), INV owned-9-100% of the TK interest in Seven Mile Resort Holdings Ltd. (the “Cayman SPC”), a Cayman Islands special
purpose company that holds leasehold interests in Westin Grand Cayman Seven Mile Beach Resort & Spa andSunshine Suites Resort (collectively, the “Cayman Hotels”) and ancillary assets as underlying assets. However,INV implemented the investment structure change (the “Structure Change” in some cases hereinafter) regarding
the Cayman Hotels on May 9, 2019 (Cayman Island local time; May 10, 2019 in Japan local time) and has
directly held the Leasehold Interests, etc. of the Cayman Hotels thereafter. Both of the TK interest and the
Cayman Hotels are counted as two properties before and after the Structure Change. In addition, the“Leasehold Interests, etc.” means leasehold interests (rights equivalent to long-term real estate leases on landand buildings under the British Cayman laws) and furniture, fixtures, equipment, ornaments, kitchen instrument,
and other assets required for hotel operations. Hereinafter the same shall apply.
(Note 4) Due to the Structure Change, the book value of the leasehold interests of the Cayman Hotels recorded by the
Cayman SPC as of May 9, 2019 (Cayman Island local time; May 10, 2019 in Japan local time), when INV
succeeded the leasehold interests of the Cayman Hotels from the Cayman SPC via distribution in kind inconnection with the termination of TK agreement, is deemed as the acquisition price of the Cayman Hotels.
The book value is converted into JPY amount via exchange rate of USD 1=JPY 110.45 based on the foreignexchange forward contracts executed on July 26, 2018 and implemented on September 26, 2018 in connection
with the investment in the TK interest by INV. Hereinafter the same shall apply.
(Note 5) Hotel J-REIT refers to four J-REITs that invest in hotels and hotel related facility defined by The
Association for Real Estate Securitization (ARES) as of June 30, 2023.
(Note 6) “The largest asset size … among all J-REIT hotel portfolios” refers to the total acquisition price of 86 hotels
owned by INV as compared with the total acquisition price of hotels (including inns and other accommodation
facilities) owned by listed investment corporations other than INV as of June 30, 2023.
(b)

Operational Environment and Performance

During the Reporting Period, the Japanese economy maintained a gradual recovery trend, mainly driven by domestic
demand and the normalization of economic activities, as the classification of COVID-19 under the Infectious Disease
Control Law was lowered from the previous Class 2 equivalent to Class 5, the same category as seasonal influenza,
effective May 8, 2023.
In this environment, real GDP (second preliminary report) for the January-March period of 2023 increased 0.7% fromthe previous quarter, marking the second consecutive quarter of growth following the October-December period of 2022.
The number of inbound visitors in the Reporting Period showed a remarkable recovery trend. The cumulative numberof inbound visitors from January to June 2023 was 10,712,000 (estimated by the Japan National Tourism Organization),
far exceeding the 507,000 in the same period in 2022. Compared to 2019, prior to the COVID-19 pandemic, the inboundvisitor figures in June 2023 decreased by 28.0% and the inbound visitor figures in the period from January to Junedecreased by 35.6%. Moreover, according to the Japan National Tourism Organization's Survey, the breakdown oftravel spending of inbound visitors from April to June 2023 is estimated to be 1,205.2 billion yen (first preliminary report),
or 95.1% of the same period in 2019. Regarding the employment trends, the unemployment rate for May 2023 was
2.6%, the same level of the previous month. The effective job openings ratio was 1.31 times, the same level of theprevious month and 0.06 points higher than the rate in May 2022, indicating that the employment situation has notworsened.
The portfolio NOI (Note 1) increased by 194.2% or JPY 9,587 million compared to the same period in the previous year(the June 2022 fiscal period) to JPY 14,523 million. The hotel portfolio NOI increased by JPY 9,547 million. The
residential and retail portfolio NOI increased by JPY 39 million. Compared to the December 2019 fiscal period prior
to the COVID-19 pandemic, the portfolio NOI decreased by 1.4% or JPY 211 million, of which the hotel portfolio NOI
increased by JPY 1,255 million and the residential and retail portfolio NOI decreased by JPY 1,467 million due to asset
sales.
Commentary on hotel and residential performance is as described below.
Each performance metric of the domestic hotel portfolio increased significantly over the same period of the previous
year's results and has recovered to levels close to 2019, before the COVID-19 pandemic, due to the government's travelsubsidy program "National Travel Discount Campaign" and increased inbound demand. The GOP for the Reporting- 10 -

Period of the 75 domestic hotels (Note 3) owned by INV increased by 228.7% compared to the same period in the previous
year (figures exclude nine domestic hotels with fixed-rent lease agreements among the 84 domestic hotels owned by INV
as of the end of the Reporting Period, including Sheraton Grande Tokyo Bay Hotel, the underlying asset of the preferred
equity interest of TMK owned by INV). The 75 domestic hotels recorded an occupancy rate (Note 4) of 80.7%, ADR(Note 5) of JPY 10,868, and RevPAR (Note 6) of JPY 8,772. Compared to the June 2019 fiscal period prior to the
COVID-19 pandemic, the GOP decreased by 9.9%, the occupancy rate decreased by 6.1pt, ADR increased by 7.5%, and
RevPAR is the same level.
The Cayman Hotels recorded an average occupancy rate of 77.3%, ADR of USD 537, and RevPAR of USD 415 for theReporting Period and the figures significantly exceeded the same period in the previous year. Compared to the June2019 fiscal period prior to the COVID-19 pandemic, the occupancy rate decreased by 12.0pt, ADR increased by 29.2%,
and RevPAR increased by 11.8%.
Regarding the residential portfolio (Note 7), the occupancy rate (Note 8) of 41 residential properties decreased by 0.5
points from 96.4% at the end of the previous fiscal period to 95.9% at the end of the Reporting Period. The averageoccupancy rate (Note 8) increased by 0.5 points YoY to 96.5%. The NOI (Note 9) for the Reporting Period increasedby 1.2% YoY.
In the Reporting Period, INV realized a rent increase for 39.3% (based on the number of contracts) of the new residential
lease contracts, however the new rent decreased by 0.4% compared to the previous rent across all new leases (Note 10).
INV achieved a rent increase for 43.7% (based on the number of contracts) of contract renewals with an average rent
increase of 1.8% compared to the previous rent across all renewal leases, while maintaining a high contract renewal rate
(Note 11) of 74.3%. Combined, new lease and renewal lease rents were signed at 1.0% higher than the previous leases.
The average rent per tsubo per month (Note 12) for the Reporting Period increased by 0.7% YoY to JPY 9,190.
The total appraisal value of 127 properties was JPY 560,963 million (one out of the 128 properties owned by INV at theend of the Reporting Period is excluded from the appraisal calculation: Sheraton Grande Tokyo Bay Hotel (preferred
equity interest) for which the appraisal value of such interest is not available). The portfolio has an unrealized gain of
JPY 120,464 million (Note 13) and an unrealized gain ratio of 27.3% (Note 13). The total appraisal value of 127
properties which were owned throughout the Reporting Period increased by 5.3% from JPY 532,570 million at the endof the December 2022 fiscal period to JPY 560,963 million at the end of the Reporting Period.

Key Performance Indicators of 75 Domestic Hotel Properties (Note 2)
June 2023
fiscal period

Year-on-year change

vs 1H 2019

Occupancy Rate (Note 4)

80.7%+19.2pt-6.1ptADR (JPY) (Note 5)

10,868+44.8%+7.5%

RevPAR (JPY) (Note 6)

8,772+90.1%+0.0%

GOP (JPY million) (Note 3)

10,424+228.7%-9.9％

Key Performance Indicators of Cayman Hotels
June 2023
fiscal period

Year-on-year change

Occupancy Rate (Note 4)

77.3%

ADR (USD) (Note 5)
RevPAR (USD) (Note 6)
GOP (USD) (Note 3)

vs 1H 2019+37.6pt-12.0pt

537+45.1%+29.2%

415+182.2%+11.8%

29,182,631+240.9%+9.4%- 11 -

Key Performance Indicators of 41 Residential Properties (Note 7)
June 2023
fiscal period
Occupancy Rate (Note 8)
Average Rent per Tsubo per Month(JPY) (Note 12)
NOI (JPY million) (Note 9)(Note 1)Year-on-year change
96.5%+0.5pt

9,190

+0.7%

1,126

+1.2%

“NOI” for the hotel properties is calculated in accordance with the following formula:
NOI＝ Rental Revenues ‐ Property Related Expenses + Depreciation Expenses + Dividend on the preferred
equity interest (TMK dividend) + (Management Contract Revenue of the Cayman Hotels ‐Management
Contract Expense)(Note 2) Of the 84 hotels held as of the end of June 2023 (including the Sheraton Grande Tokyo Bay Hotel, the underlying
asset of the preferred equity interest of TMK owned by INV), the following nine hotels with fixed-rent leaseagreements etc. are excluded: Super Hotel Shinbashi/Karasumoriguchi, Comfort Hotel Toyama, Super HotelTokyo-JR Tachikawa Kitaguchi, Super Hotel JR Ueno-iriyaguchi, Comfort Hotel Kurosaki, Comfort Hotel
Maebashi, Comfort Hotel Tsubame-Sanjo, Comfort Hotel Kitami and Takamatsu Tokyu REI Hotel. In addition,
the figures for the properties acquired after July 2019 are calculated on the assumption INV had acquired those
properties on July 1, 2019, using the actual figures provided by the sellers of such properties for the period
before the acquisition. "D48 Takamatsu Tokyu REI Hotel" changed its contract with its major tenant, Tokyu
Hotels Corporation, to fixed-rent with variable rent lease from April 25, 2023. However, in view of thecontinuity of disclosed data, this hotel will continue to be excluded. Hereinafter the same shall apply.
(Note 3) “GOP” means the gross operating profit, and is the amount remaining after deducting costs of hotel operations(the personnel, utility and advertising expenses and other expenses) and the management services fee tooperators (if any) from the hotel’s revenues. GOP for each fiscal period ended June 2020 and onwards
includes the amount of employment adjustment subsidies received by the hotel operators for the respective fiscal
periods. In addition, GOP for the Sheraton Grande Tokyo Bay Hotel has been multiplied by 49%, or INV’sownership ratio of the preferred equity interest. Hereinafter the same shall apply.
(Note 4) “Occupancy rate” for the hotel properties is calculated in accordance with the following formula:
Occupancy rate = total number of occupied rooms during a certain period / total number of rooms available
during the same period (number of rooms x number of days)
Hereinafter the same shall apply.
(Note 5) “ADR” means average daily rate, and is calculated by dividing total room sales (excluding service fees) for acertain period by the total number of days per room for which each room was occupied during the same period.
Hereinafter the same shall apply.
(Note 6) “RevPAR” means revenues per available room per day, and is calculated by dividing total room sales for acertain period by total number of rooms available (number of rooms x number of days) during the same period,and is the same as the figure obtained by multiplying ADR by occupancy rates. Hereinafter the same shall apply.
(Note 7) Based on the 41 residential properties owned as of the end of June 2023. Hereinafter the same shall apply.
(Note 8) “Occupancy Rate” and “Average Occupancy Rate” for the portfolio or the residential properties are calculatedby dividing the sum of total leased area by the sum of total leasable area at the end of each month during therelevant period. Hereinafter the same shall apply.
(Note 9) For the comparison of NOI for the residential properties, one-off insurance-related revenues and expenses are
excluded. Hereinafter the same shall apply.
(Note 10) Increase or decrease in the sum of monthly rents on new or renewal contracts, or the total of both, comparedwith the sum of previous rents. Hereinafter the same shall apply.
(Note 11) Renewal rate is calculated by the number of renewed contracts during the relevant period divided by the numberof contracts due up for renewal during the relevant period.
(Note 12) “Average Rent per Tsubo per Month” is calculated by dividing the total rental revenue (including common area
charges) for each month by the sum of total leased area (tsubo) at the end of each month during the relevant- 12 -

period.
(Note 13) The unrealized gain is calculated using the following formula: the appraisal value as of the end of the Reporting
Period – book value as of the end of the Reporting Period.
The unrealized gain ratio is calculated using the following formula: the unrealized gain / book value as of theend of the Reporting Period.
(c)Overview of Fund Raising

As a result of the measures described below, INV’s interest-bearing debt outstanding balance was JPY 239,190 million
and the Interest-Bearing Debt ratio (Note 1) and LTV (appraisal value basis) (Note 2) were 48.1% and 42.7% respectively,
as of the end of the Reporting Period, with an average interest rate (Note 3) of 0.43%.
(Note 1)

(Note 2)(*)

(Note 3)

Interest-Bearing Debt ratio uses the calculation formula below:
Interest-Bearing Debt ratio = total outstanding interest-bearing debt (excluding short-term consumption tax
loans) / total assets x 100
LTV (appraisal value basis) uses the calculation formula below:
LTV = total outstanding interest-bearing debt (excluding short-term consumption tax loans) / total appraisal
value (*) x 100
Since appraisal value for Sheraton Grande Tokyo Bay Hotel (preferred equity interest) is not available, theacquisition price of the preferred equity interest (JPY 17,845 million) is deemed as appraisal value of Sheraton
Grande Tokyo Bay Hotel (preferred equity interest). The appraisal value of the Cayman Hotels is converted
into JPY amount via exchange rate of USD 1=JPY 110.45 based on the foreign exchange forward contracts
concluded on July 26, 2018 and executed on September 26, 2018.
The average interest rate (annual rate) is calculated by the weighted average based on the outstanding balanceof borrowings and rounded to two decimal places.

(i) Borrowing of Funds
INV borrowed New Syndicate Loan (006) on January 16, 2023 (total amount borrowed: JPY 10,408 million; interest rate:
floating interest rate of 1-month JPY TIBOR plus 0.25000% for a duration of one year), which was arranged by Mizuho
Bank, Ltd., Term Loan (011) on January 24, 2023 (total amount borrowed: JPY 1,700 million; interest rate: floatinginterest rate of 1-month JPY TIBOR plus 0.25000% for a duration of one year), which was arranged by MUFG Bank,
Ltd. and Term Loan (012) on January 24, 2023 (total amount borrowed: JPY 6,800 million; interest rate: floating interest
rate of 1-month JPY TIBOR plus 0.25000% for a duration of one year), which was arranged by Sumitomo Mitsui Trust
Bank, Limited in order to repay one of the tranches of New Syndicate Loan (L) in the amount of JPY 4,943 million due
on January 16, 2023, one of the tranches of New Syndicate Loan (M) in the amount of JPY 5,796 million due on January
16, 2023, Term Loan (001) in the amount of JPY 1,700 million due on January 24, 2023 and Term Loan (002) in theamount of JPY 6,800 million due on January 24, 2023.
Moreover, INV borrowed New Syndicate Loan (007) on March 14, 2023 and March 16, 2023 (total amount borrowed:
JPY 13,980 million; interest rate: floating interest rate of 3-month JPY TIBOR plus 0.35000% for a duration of three
years) and New Syndicate Loan (008) on March 14, 2023 (total amount borrowed: JPY 3,039 million; interest rate:
floating interest rate of 1-month JPY TIBOR plus 0.25000% for a duration of one year), which were arranged by Mizuho
Bank, Ltd., in order to repay New Syndicate Loan (001) in the amount of JPY 12,156 million due on March 14, 2023,
New Syndicate Loan (002) in the amount of JPY 3,039 million and one of the tranches of New Syndicate Loan (Q) in theamount of JPY 2,273 million due on March 16, 2023.
Furthermore, INV borrowed Term Loan (013) on June 19, 2023 (total amount borrowed: JPY 1,000 million; interest rate:
floating interest rate of 3-month JPY TIBOR plus 0.30000% for a duration of three years), which was arranged by
Development Bank of Japan, Inc. in order to repay Term Loan (004) in the amount of JPY 1,000 million due on June 17,2023.
In addition, INV borrowed Term Loan (014) on June 27, 2023 (total amount borrowed: JPY 500 million; interest rate:- 13 -

floating interest rate of 3-month JPY TIBOR plus 0.30000% for a duration of three years), which was arranged by MUFG
Bank, Ltd. and Term Loan (015) on June 27, 2023 (total amount borrowed: JPY 1,000 million; interest rate: floatinginterest rate of 1-month JPY TIBOR plus 0.25000% for a duration of one year), which was arranged by SBI Shinsei Bank,
Limited in order to repay Term Loan (H) in the amount of JPY 1,500 million due on June 27, 2023.
(ii) Prepayment of Loan
INV's loans of New Syndicate Loan (005) (in the amount of JPY 639 million) and New Syndicate Loan (008) (in theamount of JPY 3,039 million) were prepaid on June 30, 2023 from cash on hand.
(iii)

Issuance of Investment Corporation Bonds

INV issued investment corporation bonds as follows for the purpose of raising a portion of funds for repayment of existing
borrowings while at the same time lengthening the average maturity period of its debt and further diversifying repayment
dates for interest-bearing debt.
Bond Series

Issue Date

Issue Amount(JPY million)

Interest Rate(annual rate)

Redemption
Date

Abstract

Seventh Series Unsecured Investment
Corporation Bonds (with pari passu
conditions among specified corporate
bonds)

May 25,
2023

5,000

1.000%

May 25, 2026

Unsecured /Unguaranteed
Rating: A (JCR)

Eighth Series Unsecured Investment
Corporation Bonds (with pari passu
conditions among specified corporate
bonds)

May 25,
2023

1,200

1.200%

May 25, 2028

Unsecured /Unguaranteed
Rating: A (JCR)(d)

Overview of Results of Operations and Distributions

As a result of the operations mentioned above, operating revenues for the Reporting Period increased by JPY 3,985 million
from the previous period (+33.4%) to JPY 15,914 million, resulting in a net income of JPY 8,913 million, an increase of
JPY 3,838 million from the previous period (+75.6%). Unappropriated retained earnings including the retained earnings
carried forward from the preceding fiscal period (JPY 8,669 million) is JPY 17,583 million. INV has decided to set the
distribution per unit (excluding excess profit distribution) of JPY 1,464, which is the net income per unit (JPY 1,462) plus
the reversal of retained earnings (JPY 2 per unit).

- 14 -

3

Changes in Total Number of Investment Units Issued and Outstanding

Changes in the number of investment units issued and outstanding and unitholders’ capital for the past five years up to the endof the Reporting Period are as follows.
Date

Type of issue

Total number of investment
units issued and outstanding(units) (units)Total
Increase

Unitholders’ capital (JPY)
Increase

Total

Reference

August 1, 2018

Public offering

909,524

5,702,705

40,280,089,388

209,078,544,702(Note 1)

August 21, 2018

Third-party
allotment

45,476

5,748,181

2,013,995,612

211,092,540,314(Note 2)

December 28, 2018

Retirement-81,341

5,666,840-

211,092,540,314(Note 3)

July 18, 2019

Public offering

409,524

6,076,364

23,317,887,036

234,410,427,350(Note 4)

Third-party
20,476
6,096,840
1,165,882,964 235,576,310,314(Note 5)allotment
Reversal of
allowance for
6,096,840
125,201,855 235,701,512,169(Note 6)
August 22, 2019
temporarydifferences
adjustment(Note 1) New investment units were issued in a public offering at a price of JPY 45,776 per unit (JPY 44,287 after
deducting the underwriters’ discount) to raise a part of the funds for the acquisition of new properties.
(Note 2) New investment units were issued in a third-party allotment at a price of JPY 44,287 per unit for the purposeof raising a part of the funds for the acquisition of new properties.
(Note 3) INV acquired own investment units from December 13, 2018 to December 18, 2018 (on a trade date basis)through the market purchase at Tokyo Stock Exchange based on a discretionary transaction contract with asecurities company.
INV resolved the retirement of all the acquired own investment units at the Board of Directors' Meeting held
on December 25, 2018 and the acquired own investment units were retired on December 28, 2018.
The acquisition of own investment units was conducted using capital surplus, and thus there is no change tounitholders’ capital.
(Note 4) New investment units were issued in a public offering at a price of JPY 58,898 per unit (JPY 56,939 after
deducting the underwriters’ discount) to raise a part of the funds for the acquisition of new properties.
(Note 5) New investment units were issued in a third-party allotment at a price of JPY 56,939 per unit for the purposeof raising a part of the funds for the acquisition of specified assets.
(Note 6) INV decided at the Board of Directors' Meeting held on August 22, 2019, the reversal of allowance fortemporary difference adjustments for incorporation into unitholders' capital.
August 15, 2019

Trends in Trading Prices of Investment Securities
The highest and lowest prices (trading prices) in the Real Estate Investment and Trust Securities Section of the Tokyo Securities
Exchange on which the investment securities of INV are listed are as follows.
Real Estate Investment and Trust Securities Section, Tokyo Securities Exchange(Unit: JPY)
PeriodClosing month
HighestLowest36th fiscal
periodJune
2021
47,65031,40037th fiscal
period38th fiscal
periodDecember
2021
45,80034,450June
2022
45,80034,000- 15 -

39th fiscal
periodDecember
2022
52,50036,25040th fiscal
periodJune
2023
59,60048,2504Distribution PerformanceWith respect to distribution of earnings for the Reporting Period, INV decided that distribution per unit (excluding excess
profit distribution) is JPY 1,464 without reversing retained earnings.

PeriodCalculated Period
Unappropriatedretained earnings(JPY thousand)Reserved profit(JPY thousand)Total cash distribution(JPY thousand)(Distribution per unit)(JPY)
Total profit distribution(JPY thousand)(Profit distribution per
unit)
(JPY)
Total refund ofinvestment(JPY thousand)(Refund of investment
per unit)(JPY)
Total distribution fromthe allowance fortemporary differences
adjustment out of total
refund of investment(JPY thousand)(Distribution from theallowance fortemporary differences
adjustment per unit outof refund of investment
per unit) (JPY)
Total distribution fromunitholders’ equity
under the tax laws outof the total refund ofinvestment(JPY thousand)Distribution fromunitholders’ equity
under the tax laws outof refund of investment
per unit(JPY)

36th fiscal
periodJan. 1, 2021 toJun. 30, 2021

37th fiscal
periodJul. 1, 2021 to
Dec. 31, 2021

38th fiscal
periodJan. 1, 2022 toJun. 30, 2022

39th fiscal
periodJul. 1, 2022 to
Dec. 31, 2022

40th fiscal
periodJan. 1, 2023 toJun. 30, 2023

8,753,480

9,676,221

9,679,301

13,742,562

17,583,734

8,662,027

8,664,146

8,667,226

8,669,991

8,657,960

91,452

1,012,075

1,012,075

5,072,570

8,925,773

(15)

(166)

(166)

(832)

(1,464)91,452

1,012,075

1,012,075

5,072,570

8,925,773

(15)

(166)

(166)

(832)

(1,464)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

- 16 -

5

Future operational policy and issues to be addressed
Outlook for the Fiscal Period Ending December 31, 2023
The Japanese economy is gradually recovering due to the resumption of economic activity through the “Post-Corona(COVID-19)” lifestyle and the recovery of inbound consumption, which is supported by the depreciation of the yen alongwith the pent-up demand for travel. On the other hand, there is a risk that a slowdown in overseas economies may
trigger a temporary slowdown in domestic economic growth, so it is necessary to pay close attention to the impact offluctuations in the financial and capital markets and international affairs.
In the hotel market, the recovery trend is expected to continue for domestic and inbound demand in both leisure andbusiness segments. In particular, travelers from China, who accounted for about 30% of all inbound travelers in 2019,
have yet to recover even after the easing of border measures in October 2022. However, there was an announcementthat the Chinese government has lifted the ban on group travel to Japan in August 2023, and a gradual recovery is expectedin the near future.
In the rental housing market, lifestyle changes due to the impact of COVID-19 infections are expected to affect tenant
trends, and INV will keep an eye on such trends.

(a)Future operational policy and issues to be addressed

Since July 2011, INV has focused on improving the profitability of its portfolio and strengthening its financial base inorder to enhance unitholder value with the Fortress Group as its sponsor. In addition to access to Fortress’ global realestate expertise, INV will actively promote efforts to acquire new demand under the environment of "Post-Corona" andflexibly respond to changes in the external environment while emphasizing customer safety and security. Going forward,
INV will continue to implement various strategies for further growth and financial stability, including the following
measures.
Further external growth utilizing sponsor supportAsset recycling: property acquisitions using the proceeds from salesInternal growth at hotels through reducing costs, stimulating existing demand and creating new demand bycollaborating with hotel operators
Further internal growth at residential properties
Diversification of funding sources through the issuance of investment corporation bonds including Green
Bonds
Details of the future growth strategy are as follows.
(i)

External growth strategy
New Property Acquisitions

As its basic strategy, INV had moved forward with the acquisition of new properties focusing on hotels, where continued
growth in portfolio revenues would be anticipated, and residential properties, especially where rental growth could beachieved, to build a portfolio with a good balance between growth and stability.
In regard to hotels, INV will take into consideration demands of business and leisure customers in nearby areas, andleasing contract types when making investment decisions, with the aim of acquiring properties where growth and stabilityof GOP and rental revenue are forecasted to increase.
In regard to residential properties, INV will analyze occupancy rates, rental market trends, the presence of competing
properties among other factors, and consider acquiring properties with strong competitiveness, in which it believes it canachieve increases in rent.

- 17 -

Properties Acquired from affiliates of the Fortress Group (as of the date of this document)
Year

Properties acquired

Total acquisition price

2012
2014

24 residential properties (Note 1)
20 hotels

JPY 14,043 million (Note 1)
JPY 45,373 million

2015

14 hotels andthree residential properties (Note 2)

JPY 45,238 million (Note 2)

2018

11 hotels andtwo residential properties
six hotels andtwo residential properties (Note 3)
12 hotels (Note 4)

JPY 104,280 million (Note 4)

2019
2020

18 hotels
Two hotels

JPY 82,646 million
JPY 16,236 million

2016
2017

JPY 92,804 million
JPY 90,006 million (Note 3)2023

Six hotels
JPY 57,230 million
120 properties
JPY 547,858 million
Total(of which 89 are hotels and 31 are(of which hotels: JPY 496,220 million;
residential properties)
residential: JPY 51,638 million)(Note 1) Of the properties acquired from affiliates of the Fortress Group, 15 residential properties have been sold.
(Note 2) Of the properties acquired from affiliates of the Fortress Group, one residential property has been sold.
(Note 3) Of the properties acquired from affiliates of the Fortress Group, one residential property has been sold.
Sheraton Grande Tokyo Bay Hotel was acquired through a special purpose company, of which INV owns thepreferred equity interest, and is counted as one property and INV’s investment amount of the preferred equity
interest is counted as the acquisition price of the preferred equity interest.
(Note 4) The Cayman Hotels acquired by the Cayman SPC, of which INV owned the TK interest, are counted as two
properties and INV’s investment amount of the TK interest is used as the acquisition price of the TK interest.
After the Structure Change, INV currently has direct ownership of the Leasehold of the Cayman Hotels.

Property Sales
INV considers the possibility of portfolio optimization upon consideration of the portfolio sector composition, geographic
distribution, and competitiveness of each property as appropriate.
(ii)

Strategy for internal growth(Hotels)

Of the 84 domestic hotels (Note 1) owned by INV as of the end of the Reporting Period, 76 hotels use a variable rent
scheme. In the variable rent scheme, in principle, INV receives all of the gross operating profit (GOP) after deducting
payment of management fees for the hotel operator as rents. For 73 hotels of the 76 hotels, MHM and subsidiaries of
MHM have implemented sophisticated revenue management initiatives seeking to maximize revenue through effectively
taking in accommodation demand. As a result, INV can directly enjoy the hotel revenue upside through this variable
rent scheme.
In response to the reduction in hotel demand, the MHM Group has taken steps to reduce hotel operating expenses andrecover revenues by reviewing its operational strategy. During the recovery phase of hotel demand in the future, INV
will strive to minimize the impact of rising costs such as utility costs and foodstuffs by means of a thorough review ofstaffing and work shifts, continuous efforts to reduce fixed costs, and strategies to maximize GOPPAR (GOP per thenumber of rooms available for sale).
The MHM Group vigorously worked to stimulate demand from domestic customers by providing corporate customers
with diverse options including a new lineup of meeting options highlighting strict measures to reduce the spread of- 18 -COVID-19 and various options including educational tours and employee training while grasping changes in customer
demand under the “Post-Corona” environment. In addition, the MHM Group is focusing on creating demand, including
continuation of delivery and take-out services and the development of new menus through directly managed restaurants
in the hotel.
For hotels, renovation of rooms and replacement of fixtures and fittings are indispensable to maintain and increase
revenues and operate stably in a planned manner.
(Note 1) Including Sheraton Grande Tokyo Bay Hotel (the preferred equity interest).

(Residential properties and others)
INV will continue to strengthen its collaborative ties with property managers and brokers to further boost occupancy rates
and earning capabilities of its properties. With respect to INV’s residential properties, INV will focus on increasing theoccupancy rates and rents for both new lease contracts and lease renewals for all its properties as well as formulating net
leasing cost reduction policies in order to continue maximizing profits.
Further, the implementation of appropriate maintenance and repair plans is of the utmost importance in maintaining andenhancing the competitiveness and market value of the properties as well as ensuring high tenant satisfaction. Therefore,
INV will continue to monitor current strategic plans with flexible implementation as it sees fit.
(iii) Financial strategy
From now on, INV will continue to extend the average interest-bearing debt repayment periods and diversify the loan
maturity dates while paying attention to fund procurement costs, as well as diversifying financing measures by issuinginvestment corporation bonds, including green bonds.
In addition, INV will seek to improve the credit rating (the long-term issuer rating “A” (Outlook: Stable)) obtained fromJapan Credit Rating Agency, Ltd. (JCR) by proceeding with these measures.
(iv) Compliance risk management
While the executive director of INV concurrently serves as the representative director at CIM, two supervisory directors(an external attorney and an external certified public account) oversee the execution of the executive director’s duties via
the Board of Directors of INV.
CIM has a compliance officer who is responsible for compliance with laws, regulations and other relevant matters as well
as overall management of transactions with sponsor related parties. Moreover, it has in place a compliance committee
which, chaired by such compliance officer, is in charge of deliberating on compliance with laws, regulations and otherrelevant matters as well as transactions with sponsor related parties. Compliance committee meetings are attended by anoutside expert (an attorney) who, sitting in as a compliance committee member, conducts rigorous deliberations on theexistence of conflicts of interest in transactions with sponsor related parties as well as strict examinations with respect to
INV’s compliance with laws and regulations. No resolution will be adopted unless the outside expert agrees.
When INV conducts certain transactions such as asset acquisition with sponsor related parties, prior approvals by the Boardof Directors of INV are required to ensure an objectivity in deliberation regarding conflicts of interests. In such agenda,
only two supervisory directors (a lawyer and a certified public accountant) will participate in the vote, and the executive
director who concurrently serves as the representative director of CIM will not participate in the vote as he is a special
interested party.
INV intends to continually take steps to strengthen its compliance structure.
(v)

Initiatives for Sustainability

INV and CIM recognize the importance of environmental, social, and governance (ESG) considerations in real estate
investment management from the viewpoint of sustainability such as economic and social development and contributing
to global environmental conservation, and regard improvement of sustainability as an important management issue.

- 19 -

INV and CIM believe that the incorporation of ESG considerations into the real estate investment management business,
which is our primary business, is essential to maximizing unitholder value over the medium to long term and contributes
to maximizing INV's investment returns.
Thus, INV and CIM have established a “Sustainability Policy” to set basic policies for sustainability and put them into
practice in our daily operations.
Under this policy, CIM has formulated the “Energy Conservation Policy”, the “Greenhouse Gas Emissions Reduction
Policy”, the “Water Saving Policy” and the “Waste Management Policy” which stipulate efforts to reduce environmental
impact as initiatives for environment. In addition, CIM has established the “Sustainable Procurement Policy” in orderto promote initiatives for ESG throughout the value chain of INV's real estate portfolio and concluded the “Green Lease”
contract with tenants to collaborate with tenants on measures related to the environmental consideration of real estate,such as proactive introductions of energy-saving equipment such as LED lighting.
Furthermore, INV acquired CASBEE Certification for Buildings (Existing Buildings) for two hotels, and Certification
for CASBEE for Real Estate for two residential properties. CASBEE is a method that comprehensively assesses thequality of a building, and evaluates features such as interior comfort and scenic aesthetics, in consideration of environment
practices including use of materials and equipment that save energy or achieve smaller environmental loads. Also, 15
hotels owned by INV acquired the certification of Building-Housing Energy-efficiency Labeling System (“BELS”).
In particular, Hotel MyStays Premier Akasaka, Hotel MyStays Fukuoka Tenjin, Hotel MyStays Yokohama Kannai andHotel MyStays Oita have been rated five stars “★★★★★”, and Hotel MyStays Premier Kanazawa, Hotel MyStays
Sapporo Station and Hotel MyStays Fuji Onsen Resort have been rated four stars “★★★★” due to high energy
conservation performance.
As initiatives for society, CIM is working on various measures for tenants and CIM’s officers and employees. CIM
conducts the “Tenant Satisfaction Survey” for residents of INV’s residential properties to collect opinions and requestsof residents and utilize them for asset management, and provides sustainability-focused training for all officers andemployees at least once a year to help officers and employees acquire knowledge and raise awareness of sustainability
considerations in line with business practices. Moreover, as initiatives for CIM’s employees, CIM conducts anemployee satisfaction survey once every three years with the aim of improving its working environment, provides paidvaccine leave so that officers and employees can receive COVID-19 vaccines and deal with any potential side-effects,
and gives full subsidy for a comprehensive medical checkup without age restrictions.
As the spread of COVID-19 continues, some hotels owned by INV (APA Hotel Yokohama-Kannai, Hotel MyStays Oita
and Comfort Hotel Kitami) have been used as accommodation and medical facilities for patients with mild symptoms orquarantine facilities for returnees from overseas in terms of social contributions. Also, meeting rooms at Hotel MyStays
Shin Osaka Conference Center were provided as a vaccination venue.
INV will continue to recognize its social responsibility to the environment and local communities as a J-REIT with hotels
and residences as our core assets, and will proactively implement ESG-friendly investment management andsustainability initiatives that take advantage of asset characteristics and carry out social contribution activities.

6

Significant Subsequent Events(a)Issuance of New Investment Units

On July 19, 2023, INV launched a global equity offering. The offering size and funds raised are described below. The
proceeds from the issuance of new units were used to fund a portion of the acquisition price for the six domestic hotels
stated in “(c) Acquisition of Assets (Properties)”. Payment for the issuance of new investment units was completed on
July 31, 2023. As a result, total equity for INV is JPY 268,463 million, and the total number of issued investment units
is 6,706,632 units. Moreover, payment for the third-party allotment in connection with overallotment will be completed
on August 28, 2023. In this case, total equity for INV is going to be JPY 270,101 million, and the total number of issued
investment units is going to be 6,737,121 units.

- 20 -

(i)Issuance of new investment units through Public Offering

Number of investment units to be offered:

Amount to be paid (issue value)
Total amount to be paid (total issue value)
Issue price (offer price)
Total issue price (total offer price)
Payment date

:
:
:
:

609,792 investment units
Domestic public offering: 353,680 investment units
Overseas offering: 256,112 investment units
JPY 53,726 per unit
JPY 32,761,684,992
JPY 55,566 per unit
JPY 33,883,702,272
July 31, 2023(ii) Secondary offering of investment units (overallotment secondary offering)Number of Investment Units to be offered in
the secondary offering
Offer priceTotal offer price
Delivery date:

30,489 investment units:::

JPY 55,566 per unit
JPY 1,694,151,774
August 1, 2023(iii) Issuance of new investment units through third-party allotment
Number of investment units to be offered
Amount to be paid (issue value)
Total amount to be paid (total issue value)
Payment date
Allottee::::

30,489 investment units
JPY 53,726 per unit
JPY 1,638,052,014
August 28, 2023
Mizuho Securities Co., Ltd.

- 21 -

(b)Debt Financing
Along with equity finance described in “(a) Issuance of New Investment Units”, INV has decided to execute newborrowings (New Syndicate Loan (010)) on July 19, 2023 in order to fund a portion of the acquisition price of thesix domestic hotel properties stated in “(c) Acquisition of Assets (Properties)” and related expenses.

New Syndicate Loan (010)
Borrowing

LenderDate

Outstanding
Balance(JPY million)

Interest Rate

Maturity

Borrowing(annual rate)

Date

MethodMizuho Bank, Ltd.,MUFG Bank, Ltd.,
Sumitomo Mitsui Banking
Corporation,

Floating

August 1,

3,086

2023

interest rate August 1, 2024
(Note 1)

Sumitomo Mitsui Trust Bank,
LimitedMizuho Bank, Ltd.,MUFG Bank, Ltd.,
Sumitomo Mitsui Banking
Corporation,

August 1,

Sumitomo Mitsui Trust Bank,

2023

Floating
9,195.7

interest rate
(Note 2)

Limited,July 16,2026
Unsecured/

The Tokyo Star Bank, Limited,

non guarantee

Aozora Bank, Ltd.
Mizuho Bank, Ltd.,MUFG Bank, Ltd.,
Sumitomo Mitsui Banking
Corporation,
Sumitomo Mitsui Trust Bank,
Limited,Development Bank of Japan

August 1,
2023

Floating
17,574.3(Note 3)

Inc.,
The Tokyo Star Bank, Limited,
Aozora Bank, Ltd.,The Ogaki Kyoritsu Bank, Ltd.
Total Debt

interest rate

29,856(Note 1) 1-month JPY TIBOR (Base Rate) + spread (0.20000%)(Note 2) 3-month JPY TIBOR (Base Rate) + spread (0.30000%)(Note 3) 3-month JPY TIBOR (Base Rate) + spread (0.50000%)- 22 -

July 14,
2028

(c)

Acquisition of Assets
The Asset Manager decided to acquire six hotels as follows on July 19, 2023, and acquisition of assets has been
completed on August 1, 2023.

Property
Number

Property Name

Acquisition Appraisal Value
Price(million yen)(million yen)
(Note 1)

SellerD84

Fusaki Beach Resort Hotel & Villas

40,29340,700

Sheffield Asset Tokutei Mokuteki Kaisha

D85

Tateshina Grand Hotel Takinoyu

8,365

8,450

Heijo Tokutei Mokuteki Kaisha

D86

Hotel MyStays Okayama

2,613

2,640

Nippori Tokutei Mokuteki Kaisha

D87

Hotel MyStays Aomori Station

2,445

2,470

Shiretoko Tokutei Mokuteki Kaisha

D88

Hotel MyStays Soga

2,039

2,060

Nippori Tokutei Mokuteki Kaisha

D89

Tazawako Lake Resort & Onsen

1,475

1,490

Heijo Tokutei Mokuteki Kaisha

57,23057,810Total(Note 1)

Appraisal Value is based on appraisal value stated in the appraisal report by the Japan Real Estate Institute., JLL Morii Valuation& Advisory K.K., The Tanizawa Sōgō Appraisal Co., Ltd. or Daiwa Real Estate Appraisal Co., Ltd. on the valuation date of June
1, 2023.

- 23 -

(Reference Information)(a)Debt Financing

INV decided to borrow New Syndicate Loan (009) on July 12, 2023 and borrowed on July 14, 2023 and July 19, 2023 inorder to repay New Syndicate Loan (I) in the amount of JPY 9,659 million due on July 14, 2023 and New Syndicate Loan(003) in the amount of JPY 49,684 million due on July 19, 2023.
(i)

New Syndicate Loan (009)
Borrowing
Date

BorrowingAmount(JPY million)

July 14,
2023

1,110

July 14,
2023

951.6

July 14,2023

3,774.5

July 14,2023

3,774.5

SBI Shinsei Bank, Limited,
Resona Bank, Limited

July 19,
2023

6,848

Mizuho Bank, Ltd.,MUFG Bank, Ltd.,
Sumitomo Mitsui Banking
Corporation,
Sumitomo Mitsui Trust Bank,
Limited,Development Bank of Japan,
Inc.

July 19,2023

5,168.4

July 19,2023

18,858July 19,2023

18,858

Lender

SBI Shinsei Bank, Limited

Mizuho Bank, Ltd.,MUFG Bank, Ltd.,
Sumitomo Mitsui Banking
Corporation,
Sumitomo Mitsui Trust Bank,
LimitedMizuho Bank, Ltd.,MUFG Bank, Ltd.,
Sumitomo Mitsui Banking
Corporation,
Sumitomo Mitsui Trust Bank,
Limited,Development Bank of Japan,
Inc.,
The Ogaki Kyoritsu Bank, Ltd.

Interest Rate(annual rate)
Floating interest
rates(Note 1)

Floating interest
rates(Note 2)

Floating interest
rates(Note 3)

Floating interest
rates(Note 4)

Floating interest
rates(Note 1)

Floating interest
rates(Note 2)

Floating interest
rates(Note 3)

Floating interest
rates(Note 4)

59,343

Total(Note 1)

1-month JPY TIBOR (Base Rate) + spread (0.20000%)(Note 2)

1-month JPY TIBOR (Base Rate) + spread (0.30000%)(Note 3)3-month JPY TIBOR (Base Rate) + spread (0.30000%)(Note 4)3-month JPY TIBOR (Base Rate) + spread (0.50000%)- 24 -

Maturity
Date

Borrowing
MethodJuly 16,
2024

Unsecured/ nonguarantee

July 16,2026

Unsecured/ nonguarantee

July 16,2026

Unsecured/ nonguarantee

July 14,2028

Unsecured/ nonguarantee

July 16,
2024

Unsecured/ nonguarantee

July 16,2026

Unsecured/ nonguarantee

July 16,2026

Unsecured/ nonguarantee

July 14,2028

Unsecured/ nonguarantee

Overview of the Investment Corporation
1

Overview of Investment
By Period

36th fiscal
period37th fiscal
period38th fiscal
period39th fiscal
period40th fiscal
periodResults Dates

As of Jun. 30,
2021

As of Dec. 31,
2021

As of Jun. 30,
2022

As of Dec. 31,
2022

As of Jun. 30,
2023

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

6,096,840

6,096,840

6,096,840

6,096,840

6,096,840

Unitholders’ capital(JPY million)

235,701

235,701

235,701

235,701

235,701

Number of total
unitholders

33,747

31,23830,00527,00525,829Number of issuable
investment units (Unit)
Number of investment
units issued andoutstanding(Unit)

2

Notes regarding Unitholders
Major unitholders at the end of the Reporting Period are as below.

Name

Number of units held

% of total number of investment
units issued and outstanding

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

1,263,502

20.72

Custody BANK of Japan, Ltd. (trust account)

1,003,175

16.45

310,170

5.08

194,859

3.19

SSBTC CLIENT OMNIBUS ACCOUNT

148,513

2.43

GOLDMAN SACHS INTERNATIONAL

130,768

2.14

FJODF GP INV HOLDINGS LLC

115,931

1.90

96,538

1.58

94,427

1.54

90,8671.49

3,448,750

56.56

The Nomura Trust and Banking Co., Ltd.
(investment trust account)
DEUTSCHE BANK AG, SINGAPORE A/C
CLIENTS (TREATY) 4600601

STATE STREET BANK WEST CLIENT TREATY 505234
STATE STREET BANK AND TRUSTCOMPANY 505103
STICHTING PENSIOENFONDS ZORG ENWELZIJN
Total(Note 1) Percentages are rounded down to two decimal places.

- 25 -

3

Notes regarding Directors
Directors at the end of the Reporting Period are listed below.

Position

Name

Concurrent responsibilities

Executive Director

Naoki Fukuda

President and CEO, Consonant
Investment Management Co., Ltd.
(current position)

Directors’ remuneration for
operating period(JPY thousand)-Attorney,
Shiba-Daimon Law Office
Yoshihiro Tamura

Statutory Auditor,
BEQONE PARTNERS, Inc.
(current position)

2,400

Certified Public Accountant,
CPA Fujimoto Office

Supervisory Director

Hiroyuki Fujimoto

Outside Auditor,
BRYCEN Co., Ltd.
(current position)

2,400

Outside Director, the Audit &Supervisory Committee Member,
NEO MARKETING INC.
(current position)
Auditor(Note1)(Note 2)

Ernst & Young
ShinNihon LLC-

20,900Executive and supervisory directors do not hold INV’s units either in their names or in the names of third
parties. In addition, while they may be directors of organizations not listed above, those organizations aswell as those listed above have no conflicts of interest with INV.
The auditor's remuneration includes the remuneration for the preparation of a comfort letter in connection
with the issuance of investment corporation bonds.

Determination policy for dismissal or non-reappointment of Auditor
The auditing agreement with the auditor is renewed every accounting period. Dismissals are made in accordance with theInvestment Trust Act, and in addition, non-reappointments are considered by the board of directors of INV by comprehensively
taking into account the auditing quality, auditor remuneration, and other various circumstances.

Notes regarding indemnification agreement between Directors and INV
Not applicable.

- 26 -

4

Notes regarding Directors Liability Insurance
Directors Liability Insurance concluded by INV is as below.
Insured Person

Overview of the Insurance Contract(Outline of insured event covered by insurance)
Damages and dispute costs incurred by the insured due to a claim fordamages caused by the insured’s actions as a director’s duties will becovered.

All Executive Directors andSupervisory Directors(Burden ratio of insurance premium)
INV bears the insurance premiums except those for the special contract ofunitholder derivative suits.
(Measures to ensure that duties are executed properly)
By excluding criminal acts such as bribery and damages of directors who
intentionally commit illegal acts from compensation, measures are taken sothat duties of directors are executed properly.

5

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

Name

Asset management company
Asset custody company

Consonant Investment Management Co., Ltd.
Sumitomo Mitsui Trust Bank, Limited

General administrative agent(administration of unitholders’ registry, etc.)
General administrative agent(institutional operations (Note 1))
General administrative agent(accounting operations, etc.)
Special account management company

Sumitomo Mitsui Trust Bank, Limited
Consonant Investment Management Co., Ltd.
Sumitomo Mitsui Trust Bank, Limited
Mitsubishi UFJ Trust and Banking Corporation
Limited (Note 2) / Sumitomo Mitsui Trust Bank,
Limited (Note 3)
Mizuho Bank, Ltd.

General administrative agent(Fiscal agent pertaining to investment corporation bonds,
etc.)(Note 1) (i) Tasks related to the running of general unitholders’ meetings for INV (excluding tasks related to the mailingof general unitholders’ meetings and the receipt and counting of voting forms), (ii) tasks related to the runningof the meetings of the Board of Directors of INV, and (iii) or tasks incidental or related to that mentioned in(i) or (ii) are delegated.
(Note 2) Conducts administrative tasks related to the creation, maintenance, and disposition of transfer savings accountregisters for special accounts of unitholders of the INV before the merger (former Tokyo Growth REIT
Investment Inc.) as well as tasks related to other transfer savings account registers.
(Note 3) Conducts administrative tasks related to the creation, maintenance, and disposition of transfer savings accountregisters for special accounts of unitholders of the former LCP as well as tasks related to other transfer savings
account registers.

- 27 -

Status of Investment Corporation’s Assets under Management
1

Composition of INV’s Assets

Type ofasset

Geographic area

Purpose(Note 1)
Greater Tokyo
Area (Note 3)
Major regional
citiesOverseas (Note 4)
Subtotal

Fiscal period ended December 31, 2022
(as of December 31, 2022)
Amount held
(JPY million)(Note 2)

Percentage of
total assets(%)

Fiscal period ended June 30, 2023
(as of June 30, 2023)
Amount held
(JPY million)(Note 2)

Percentage of
total assets
(%)

2

0.0

2

0.0

-

-

-

-

33,546

6.8

33,168

6.7

33,5496.8

33,170

6.7

33,5496.8

33,170

6.7

Greater Tokyo area
Major regional
citiesSubtotal

28,483

5.8

28,383

5.7

5,900

1.2

5,827

1.2

34,383

7.0

34,210

6.9

Greater Tokyo area
Real
Offices/Commercial Major regional
estate in
Facilities
citiestrust
Subtotal

-

-

―

―

1,605

0.3

1,588

0.3

Real
estateHotelsTotal real estate

Residences

1,605

0.3

1,588

0.3

167,03533.8

166,28533.5

206,71841.8

205,24341.3

373,75375.6

371,528

74.8

Total real estate in trust

409,74182.9

407,32782.0

Preferred equity interest (Note 5)

17,856

3.6

17,856

3.6

Deposits and other assets

33,0896.7

38,465

7.7

494,237100.0

496,819100.0(443,291)(89.7)(440,498)(88.7)

HotelsGreater Tokyo area
Major regional
citiesSubtotal

Total assets (Note 6)(Note 1)
(Note 2)

(Note 3)(Note 4)(Note 5)(Note 6)

“Greater Tokyo area” refers to Tokyo, Kanagawa, Chiba and Saitama.
“Amount held” is from the balance sheet as of the end of the Reporting Period (book value after depreciation forreal estate, leasehold and real estate in trust). The amounts held for hotels are calculated by including book valueof accompanying FF&E, in principle.
While Hotel MyStays Haneda is held as trust beneficiary interests, part of accompanying FF&E is held in kind,which falls under this category.
The Leasehold of the Cayman Hotels falls under the category of “Real estate” for “Overseas.” The leaseholdinterests are the rights equivalent to long-term real estate leasehold rights for buildings and land under the laws of
the Cayman Islands (Term: 99 years; annual lease payment: USD 1 or KYD 1). INV implemented an investment
structure change regarding “Westin Grand Cayman Seven Mile Beach Resort & Spa” and “Sunshine Suites Resort”
on May 9, 2019 (Cayman Island local time), a change from making investments based on the TK agreement todirectly owning the Leasehold of the Cayman Hotels, which are the underlying assets of the TK interest.
Preferred equity interest issued by Kingdom Special Purpose Company, with the Sheraton Grande Tokyo Bay Hotelas an underlying asset (asset in trust of trust beneficiary interest acquired by Kingdom Special Purpose Company,
which is the real estate that serves as the main source of revenue for Kingdom Special Purpose Company).
The figures indicated in parenthesis under “Total assets” show the amounts related to owned real estate (excluding
the amount of preferred equity securities owned).

- 28 -

2

Major Properties
The overview of INV’s major properties (top 10 properties by book value) (Note 1) at the end of the Reporting Period is
as below.

Name of property

Book value(JPY million)

Leasable area
Occupancy rate
Ratio of
Leased area(m2)(%)
rentalrevenue(m2)(Note 2)
(Note 3)(%) (Note 4)Main use

D200

Westin Grand Cayman Seven Mile
Beach Resort & Spa

27,867

21,528.23

21,528.23

100.0

-

Hotel

D43

Hotel MyStays Gotanda Station

26,127

10,137.88

10,137.88

100.0

4.0

Hotel

D60

Hotel MyStays Premier Akasaka

20,0948,620.69

8,620.69

100.0

3.7

Hotel

D44

Hotel Epinard Nasu

18,23537,702.33

37,702.33

100.0

5.1

Hotel

D61

Hotel MyStays Premier Sapporo Park

15,843

21,670.64

21,670.64

100.0

2.5

Hotel

D64

Hotel MyStays Sapporo Aspen

15,107

15,313.17

15,313.17

100.0

2.2

Hotel

D50

Hotel MyStays Shin Osaka ConferenceCenter12,747

13,026.99

13,026.99

100.0

2.1

Hotel

D47

Hotel MyStays Premier Kanazawa

12,25013,250.03

13,250.03

100.0

1.6

Hotel

D82

Hotel MyStays Premier Narita

9,821

36,519.70

36,519.70

100.0

2.0

Hotel

D51

Hotel MyStays Premier Omori

9,721

11,849.61

11,849.61

100.0

2.4

Hotel

Total

167,817

189,619.27

189,619.27

100.0

25.6

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

Securities described in “6 Asset Portfolio of Securities” later in this document are excluded.
Leasable area of Westin Grand Cayman Seven Mile Beach Resort & Spa indicates the area subject tomanagement contract.
“Occupancy rate” is calculated by dividing the leased area by leasable area, and rounded to one decimal place.
“Ratio of rental revenue” are rounded to one decimal place.

- 29 -

3

Asset Portfolio of Real Estate, etc.
The portfolio of the properties (real estate and trust beneficiary interest in real estate) held by INV at the end of theReporting Period is as below.

Name of property

Location(Note 1)

Type of asset

A26

Nisshin Palacestage
Daitabashi

1-31-2 Izumi, Suginami-ku, Tokyo

A28

Growth Maison Gotanda

2-26-6 Nishi-Gotanda, Shinagawa-ku,
Tokyo

A29

Growth Maison Kameido

6-58-16 Kameido, Koto-ku, Tokyo

A30

Emerald House

3-27-18 Itabashi, Itabashi-ku, Tokyo

A32

Suncrest Shakujii-Koen

3-15-35 Takanodai, Nerima-ku, Tokyo

A33

Growth Maison ShinYokohama

3-16-2 Shin-Yokohama, Kohoku-ku,
Yokohama-shi, Kanagawa

A34

Belle Face UenoOkachimachi

1-27-10 Higashi-Ueno, Taito-ku,
Tokyo

A35

Grand Rire Kameido

3-39-12 Kameido, Koto-ku, Tokyo

A37

Growth Maison Yoga

1-15-15 Okamoto, Setagaya-ku, Tokyo

A38

Route Tachikawa

3-7-6 Nishikicho, Tachikawa-shi,
Tokyo

A39

Shibuya-Honmachi Mansion

2-35-2 Honmachi, Shibuya-ku, Tokyo

A40

City Heights Kinuta

4-13-15 Kinuta, Setagaya-ku, Tokyo

A41

Acseeds Tower
Kawaguchi- Namiki

2-5-13 Namiki, Kawaguchi-shi,
Saitama

A43

College Square Machida

3-4-4 Nakamachi, Machida-shi, Tokyo

A44

Belair Meguro

1-2-15 Meguro, Meguro-ku, Tokyo

A45

Wacore Tsunashima I

2-7-47 Tarumachi, Kohoku-ku,
Yokohama-shi, Kanagawa- 30 -

Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest
Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest
Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)

Leasable area(m2) (Note 2)

Appraisal value
as of the end ofBook value
the Reporting(JPY
Periodmillion)(JPY million)(Note 3)

1,771.13

1,290

1,087

1,051.50

1,120

815

1,367.96

1,280

926

2,152.31

1,480

1,300

3,029.16

1,250

1,045

1,858.44

1,290

925

1,351.11

1,160

899

1,562.26

1,090

762

1,015.34

844

708

1,368.57713

641

1,167.50724

712

1,235.93624

659

1,210.74810

490

1,047.75526

550

557.05646

545

907.46562

549

Name of property

Location(Note 1)

Type of asset

A46

Foros Nakamurabashi

1-6-6 Kouyama, Nerima-ku, Tokyo

A47

Growth Maison Kaijin

5-29-51 Kaijin, Funabashi-shi, Chiba

A48

College Square Machiya

7-3-1 Arakawa, Arakawa-ku, Tokyo

A59

Towa City Coop
Shinotsuka II

5-49-7 Higashi-Ikebukuro, Toshima-ku,
Tokyo

A61

Bichsel Musashiseki

1-22-7 Sekimachi-Kita, Nerima-ku,
Tokyo

A63

Towa City Coop Sengencho

4-338-2 Sengencho, Nishi-ku,
Yokohama-shi, Kanagawa

A64Royal Park Omachi

2-11-10 Omachi, Aoba-ku, Sendai-shi,
Miyagi

A65

Lexington Square
Haginomachi

1-15-18 Haginomachi, Miyagino-ku,
Sendai-shi, Miyagi

A66

Visconti Kakuozan

2-44 Otanacho, Chikusa-ku, Nagoyashi, Aichi

A72

Lexington Square
Honjo Azumabashi

4-20-6 Higashi-Komagata, Sumida-ku,
Tokyo

A73

AMS TOWER Minami 6-Jo

2-5-15 Minami 6-Jo Nishi, Chuo-ku,
Sapporo-shi, Hokkaido

A84

Revest Heian

2-13-17 Heian, Kita-ku, Nagoya-shi,
Aichi

A87

Excellente Kagurazaka

128-1 Yamabukicho, Shinjuku-ku,
Tokyo, and other one parcel

A90

Queen’s Court Fukuzumi

1-3-10 Fukuzumi, Koto-ku, Tokyo

A92

Belair Oimachi

5-14-17 Higashi-Oi, Shinagawa-ku,
Tokyo

A93

Siete Minami-Tsukaguchi

3-18-29 Minami-Tsukaguchimachi,
Amagasaki-shi, Hyogo

A94

Prime Life Sannomiya
Isogami Koen

4-3-23 Isogamidori, Chuo-ku, Kobeshi, Hyogo

A96

Century Park Shinkawa 1bankan

4-1-2 Shinkawacho, Minato-ku,
Nagoya-shi, Aichi

A97

West Avenue

1-5-17 Nishi, Kunitachi-shi, Tokyo

A99

Prime Life Mikage

2-25-11 Mikage Tsukamachi,
Higashinada-ku, Kobe-shi, Hyogo

A101

Lieto Court Mukojima

5-45-10 Mukojima, Sumida-ku, Tokyo- 31 -

Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest(Note 4)Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest

Leasable area(m2) (Note 2)

Appraisal value
as of the end ofBook value
the Reporting(JPY
Periodmillion)(JPY million)(Note 3)815.77636

492

2,040.27

561

516

871.35615

423

1,627.13

1,390

784

1,220.24

868

574

3,426.36

1,570

997

1,929.59

717

377

1,528.58

464

254

705.75310

226

784.74754

401

4,460.56

1,270

840

1,554.03

878

484

701.92865

484

765.18817

404

530.60685

376

1,020.86

573

326

789.12578

320

1,477.62

549

288

794.80429

304761.18439

254

2,940.20

2,310

1,577

Location(Note 1)Name of property

Type of asset

A102

Lieto Court Nishi-Ojima

2-41-14 Ojima, Koto-ku, Tokyo

A103

Royal Parks Momozaka

5-38 Fudegasakicho, Tennouji-ku,
Osaka-shi, Osaka

A104

Royal Parks Shinden

3-35-20 Shinden, Adachi-ku, Tokyo

A106

Royal Parks Seasir MinamiSenju

3-41-7 Minami-Senju, Arakawa-ku,
Tokyo

Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest

Subtotal
B18

AEON TOWN Sukagawa

105 Furukawa, Sukagawa-shi,
Fukushima

Trust
beneficiaryinterest

Subtotal
D01

Hotel MyStays Kanda

1-2-2 Iwamotocho, Chiyoda-ku,
Tokyo

D02

Hotel MyStays Asakusa

1-21-11 Honjo, Sumida-ku, Tokyo

D03

Hotel MyStays Kyoto-Shijo

52 Kasabokocho, Higashiiru,
Aburanokoji, Shijyodori, Shimogyoku, Kyoto-shi, Kyoto

D04

MyStays Shin-Urayasu
Conference Center

2-1-4 Akemi, Urayasu-shi, Chiba

D05

Hotel MyStays Maihama

3-5-1 Tekkodori, Urayasu-shi, Chiba

D06

Hotel MyStays Premier
Dojima2-4-1 Sonezakishinchi, Kita-ku,
Osaka-shi, Osaka

D07

Hotel MyStays NagoyaSakae

2-23-22 Higashi-Sakura, Naka-ku,
Nagoya-shi, Aichi

D08

Hotel MyStays SakaisujiHonmachi

1-4-8 Awaji-machi, Chuo-ku, Osakashi, Osaka

D09

Hotel MyStays Yokohama

4-81 Sueyoshicho, Naka-ku,
Yokohama-shi, Kanagawa

D10

Hotel MyStays Nippori

5-43-7 Higashi-Nippori, Arakawa-ku,
Tokyo

D11

Hotel MyStays FukuokaTenjin-Minami

3-14-20 Haruyoshi, Chuo-ku,
Fukuoka-shi, Fukuoka

D12

Flexstay Inn Iidabashi

3-26 Shin-Ogawamachi, Shinjuku-ku,
Tokyo

D13

Hotel MyStays
Ueno Inaricho

1-5-7 Matsugaya, Taito-ku, Tokyo

D14

Flexstay Inn Shinagawa

1-22-19 Kita-Shinagawa, Shinagawaku, Tokyo

D15

Flexstay Inn Tokiwadai

1-52-5 Tokiwadai, Itabashi-ku, Tokyo- 32 -

Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest

Leasable area(m2) (Note 2)

Appraisal value
as of the end ofBook value
the Reporting(JPY
Periodmillion)(JPY million)(Note 3)

2,048.28

2,240

1,526

8,776.26

3,280

2,453

15,797.29

6,460

4,474

6,496.86

3,350

2,425

86,518.75

48,01734,21018,440.58

2,380

1,588

18,440.58

2,380

1,588

2,585.72

4,930

2,779

3,327.38

4,420

2,443

7,241.51

8,250

5,441

6,232.30

7,400

4,353

2,456.36

6,960

4,467

9,445.32

6,470

3,564

9,064.71

5,570

2,489

4,188.83

3,250

2,220

7,379.43

4,000

2,080

1,719.29

2,510

1,719

3,412.71

5,640

1,378

2,953.38

2,090

1,306

1,150.76

2,000

1,168

1,134.52

1,990

1,162

2,539.75

2,130

1,174

Name of property

Location(Note 1)

D16

Flexstay Inn Sugamo

3-6-16 Sugamo, Toshima-ku, Tokyo

D17

Hotel MyStays Otemae

1-3-2 Tokuicho, Chuo-ku, Osaka-shi,
Osaka

D18

Hotel MyStays
Kiyosumi Shirakawa

1-12-16 Tokiwa, Koto-ku, Tokyo

D19

Flexstay Inn Nakanobu P1

4-27-12 Futaba, Shinagawa-ku, Tokyo

D20

Flexstay Inn Nakanobu P2

4-27-8 Futaba, Shinagawa-ku, TokyoD21

APA Hotel
Yokohama-Kannai

3-37-2 Sumiyoshicho, Naka-ku,
Yokohama-shi, Kanagawa

D22

Hotel MyStays
Hakodate-Goryokaku

26-17 Honcho, Hakodate-shi,
Hokkaido

D23

Flexstay Inn Shirogane

5-10-15 Shirokane, Minato-ku, Tokyo

D24

Hotel MyStays Haneda

5-1-13 Haneda, Ota-ku, Tokyo

D25

Hotel MyStays Kameido P1

6-32-1 Kameido, Koto-ku, Tokyo

D26

Hotel MyStays Ueno
Iriyaguchi

5-5-13 Higashi-Ueno, Taito-ku, Tokyo

D27

Hotel MyStays Kameido P2

6-7-8 Kameido, Koto-ku, Tokyo

D28

Hotel MyStays Shimizu

1-23 Masagocho, Shimizu-ku,
Shizuoka-shi, Shizuoka

D29

Super Hotel Shinbashi/
Karasumoriguchi

5-16-4 Shinbashi, Minato-ku, Tokyo

D30

Flexstay Inn Higashi-Jujo

2-10-2 Nakajujo, Kita-ku, Tokyo

D31

Hotel MyStays Utsunomiya

2-4-1 Higashi-Shukugo, Utsunomiyashi, Tochigi

D32

Flexstay Inn KawasakiKaizuka

1-13-2 Kaizuka, Kawasaki-ku,
Kawasaki-shi, Kanagawa

D33

Comfort Hotel Toyama

1-3-2 Takara-machi, Toyama-shi,ToyamaD34

Flexstay Inn KawasakiOgawacho

15-9 Ogawacho, Kawasaki-ku,
Kawasaki-shi, Kanagawa

D35

Flexstay Inn Ekoda

8-6 Sakaecho, Nerima-ku, Tokyo

D36

Super Hotel Tokyo-JR
Tachikawa Kitaguchi

2-21-9 Akebonocho, Tachikawa-shi,
Tokyo

D37

Super Hotel JR Uenoiriyaguchi

7-9-14 Ueno, Taito-ku, Tokyo

Type of asset- 33 -

Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest

Leasable area(m2) (Note 2)

Appraisal value
as of the end ofBook value
the Reporting(JPY
Periodmillion)(JPY million)(Note 3)2,089.86

2,200

1,063

4,956.66

2,450

1,101

2,673.64

1,470

827

770.56817

541

391.49393

276

6,568.51

9,870

7,158

7,961.26

3,920

2,563

1,754.06

2,420

2,048

5,400.16

8,390

6,908

4,349.67

7,550

5,188

2,247.92

3,940

3,554

2,793.99

5,060

3,429

3,559.81

2,480

1,978

1,403.89

1,870

1,557

1,714.53

1,380

1,248

11,733.23

2,110

1,155

1,190.57

1,160

854

3,305.64

1,170

866

725.60902

846

3,932.93

4,650

4,701

1,832.97

1,210

1,046

1,279.16

1,180

1,039

Name of property

Location(Note 1)

Type of asset

D38

Hotel MyStays Shinsaibashi

1-9-30 Nishi-Shinsaibashi, Chuo-ku,
Osaka-shi, Osaka

D39

Comfort Hotel Kurosaki

3-13-13 Kurosaki, Yahatanishi-ku,
Kitakyusyu-shi, Fukuoka

D40

Comfort Hotel Maebashi

2-18-14 Omotecho, Maebashi-shi,
Gunma

D41

Comfort Hotel TsubameSanjo

2-115 Sugoro, Sanjo-shi, Niigata

D42

Comfort Hotel Kitami

3-4 Ohdori-Nishi, Kitami-shi,
Hokkaido

D43

Hotel MyStays Gotanda
Station (Note 5)

2-6-8 Nishi-Gotanda, Shinagawa-ku,
Tokyo

D44

Hotel Epinard Nasu (Note 6)

1-10 Kaidoue (and 59 other landparcels), Oaza-Takakuhei, Nasumachi, Nasu-gun, Tochigi

D45

Hotel MyStays Fukuoka
Tenjin3-5-7 Tenjin, Chuo-ku, Fukuoka-shi,
Fukuoka

D46

Hotel MyStays
Hamamatsucho

1-18-14 Hamamatsucho, Minato-ku,
Tokyo

D47

Hotel MyStays PremierKanazawa

2-13-5 Hirooka, Kanazawa-shi,Ishikawa

D48

Takamatsu Tokyu REI Hotel

9-9 Hyogomachi, Takamatsu-shi,
KagawaD49

Hotel MyStays Premier
Hamamatsucho

1-8-5 Hamamatsucho, Minato-ku,
Tokyo

D50

Hotel MyStays Shin Osaka
Conference Center

6-2-19 Nishinakashima, Yodogawa-ku,
Osaka-shi, Osaka

D51

Hotel MyStays PremierOmori

6-19-3 Minami Oi, Shinagawa-ku,
Tokyo

D52

Kamenoi Hotel Beppu

5-17 Chuocho, Beppu-shi, Oita

D53

Hotel MyStays Sapporo
Station4-15 Kita Hachijyo Nishi, Kita-ku,
Sapporo-shi, Hokkaido

D54

Hotel MyStays Yokohama
Kannai

5-65, Onoe-cho, Naka-ku, Yokohamashi, Kanagawa and 3 other lots

D55

Art Hotel Joetsu

5-1-11, Hon-cho Joetsu-shi, Niigata

D56

Art Hotel Hirosaki City

1-1-2, 1-6, 1-7, 2-1, Omachi, Hirosakishi, Aomori

D57

Hotel MyStays Oita

1-32, Niagemachi Oita-shi, Oita

D58

Hotel MyStays Gotanda

2-5-4, Higashigotanda Shinagawa-ku,
Tokyo

D59

Hotel MyStays Tachikawa

1-8-14, Nishiki-cho Tachikawa-shi,Tokyo- 34 -

Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest

Leasable area(m2) (Note 2)

Appraisal value
as of the end ofBook value
the Reporting(JPY
Periodmillion)(JPY million)(Note 3)

1,942.01

2,110

2,918

3,207.60

1,250

984

3,660.96

1,140

918

3,099.90

1,080

879

3,009.50

911

727

10,137.88

23,90026,12737,702.33

23,00018,2355,083.06

8,200

7,610

1,951.90

6,190

7,723

13,250.03

12,80012,2507,148.17

1,720

2,104

6,151.93

10,3007,900

13,026.99

13,10012,747

11,849.61

10,0009,721

19,422.08

9,050

7,633

7,267.88

8,480

7,377

4,501.18

5,500

5,026

7,563.60

2,760

2,543

14,826.30

2,750

2,515

3,254.69

1,640

1,416

1,839.77

4,110

4,034

3,844.64

3,390

3,152

Name of property

Location(Note 1)

D60

Hotel MyStays Premier
Akasaka

2-17-54, Akasaka Minato-ku, Tokyo

D61

Hotel MyStays Premier
Sapporo Park

2-2-10, Minamikujo Nishi, Chuo-ku,
Sapporo-shi, Hokkaido

D62

Hotel MyStays Ueno East

5-5-6, Higashi Ueno, Taito-ku, Tokyo

D63

Hotel MyStays Midosuji
Honmachi

3-2-10, Honmachi, Chuo-ku, Osakashi, Osaka

D64

Hotel MyStays
Aspen

5-1 Nishi 4-chome, Kita 8-jo, Kita-ku,
Sapporo-shi, Hokkaido, and sevenother lots

D65

Art Hotel Ishigakijima554-2 Nishimaji Okawa, Ishigaki‐shi,Okinawa, and four other lots

D66

Hotel MyStays Fuji Onsen
Resort2654 Arakura Deguchi, Fujiyoshidashi, Yamanashi, and 15 other lots

D67

Hotel Sonia Otaru

1-4-20 Ironai, Otaru-shi, Hokkaido

D68

Hotel MyStays Kanazawa
Castle10-17 Konohana-machi, Kanazawashi, Ishikawa

D69

Art Hotel Niigata Station

1-1 Sasaguchi, Chuo-ku, Niigata-shi,
Niigata

D70

Hotel MyStays
Nishiki

3-8-21 Nishiki, Naka-ku, Nagoya-shi,
Aichi

D71

Hotel Nord Otaru

1-4-16 Ironai, Otaru-shi, Hokkaido

D72

Hotel MyStays Kagoshima
Tenmonkan

2-7 Yamanokuchi-cho, Kagoshima-shi,
Kagoshima

D73

Art Hotel Asahikawa

6-29-2 7-jo-dori, Asahikawa-shi,
Hokkaido

D74

Hotel MyStays Matsuyama

1-10-10 Otemachi, Matsuyama-shi,
Ehime

D75

Hotel MyStays
Susukino

Sapporo

1-6 Nishi 5-Chome, Minami 7-jo,
Chuo-ku, Sapporo-shi, Hokkaido, andone other lot

D76

Hotel MyStays
Nakajima Park

Sapporo1-20 Nishi 1-chome, Minami 14-jo,
Chuo-ku, Sapporo-shi, Hokkaido

D77

Hotel MyStays Sapporo
Nakajima Park Annex

4-3 Nishi 1-chome, Minami 11-jo,
Chuo-ku, Sapporo-shi, Hokkaido

D78

Flexstay Inn Sakuragicho

2-72-2 Hanasaki-cho, Naka-ku,
Yokohama-shi, Kanagawa, and fourother lots

D79

MyCUBE by MYSTAYS
Asakusa Kuramae

2-6-7 Kuramae, Taito-ku, Tokyo

D80

Hotel MyStays Kagoshima
Tenmonkan Annex

1-20 Gofuku-machi, Kagoshima-shi,
Kagoshima

D81

Hotel MyStays Nayoro

11 Minami 5-chome, Nishi 3-jo,
Nayoro-shi, Hokkaido, and one otherlot

SapporoNagoyaType of asset- 35 -

Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest
Trust
beneficiaryinterest

Leasable area(m2) (Note 2)

Appraisal value
as of the end ofBook value
the Reporting(JPY
Periodmillion)(JPY million)(Note 3)8,620.69

23,10020,094

21,670.64

16,30015,843

4,396.02

5,370

5,103

3,429.43

3,130

4,749

15,313.17

15,40015,107

17,247.54

9,510

9,374

5,498.49

9,960

8,566

6,509.41

6,010

5,481

5,931.84

5,620

5,584

10,403.01

5,550

5,184

6,077.99

5,110

5,026

6,047.43

4,240

4,096

7,659.55

3,490

3,305

25,131.84

3,180

2,841

8,274.37

3,190

2,787

2,853.26

2,920

2,954

5,473.41

1,980

2,002

1,775.21

1,560

1,504

1,308.61

1,440

1,380

2,156.70

1,250

1,255

2,047.70

1,210

1,140

1,985.27

958

852

Location(Note 1)Name of property

Trustbeneficiaryinterest
Trust
beneficiaryinterest

Hotel
NaritaD83

Art Hotel Morioka

3-3-18 Odori, Morioka-shi, Iwate

D200

Westin Grand Cayman
Seven Mile Beach Resort &Spa

30620 Seven Mile Beach Road, Grand
Cayman, Cayman Islands

The
Leasehold21,528.23

D201

Sunshine Suites Resort

1465 Esterley Tibbetts Highway,
Grand Cayman, Cayman Islands

The
Leasehold6,723.11(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)

Premier

Leasable area(m2) (Note 2)

D82(Note 1)MyStaysType of asset

40 Yokomine Oyama, Narita-shi,
Chiba, and 14 other lots

Appraisal value
as of the end ofBook value
the Reporting(JPY
Periodmillion)(JPY million)(Note 3)36,519.70

10,4009,821

16,727.08

5,420

5,214

66,086(USD 455,800
thousand)(Note 7)
10,598(USD 73,100
thousand)(Note 7)

27,867

5,300

Subtotal

572,519.79

510,566

404,698

Total

677,479.12

560,963

440,498“Location” is, in principle, based on the indicated address (jyukyohyoji), except that if the jyukyohyoji system
has not been implemented for such property, the location is based on the land number (chiban).
Leasable areas of Westin Grand Cayman Seven Mile Beach Resort & Spa and Sunshine Suites Resort indicate
the areas subject to management contract.
“Appraisal value as of the end of the Reporting Period” is the value appraised or researched by Asset Researchand Development Inc., Japan Real Estate Institute, JLL Morii Valuation & Advisory K.K., The Tanizawa Sogo
Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd. or CBRE, Inc., in accordance with the Articles ofIncorporation of INV and the regulations of The Investment Trusts Association, Japan.
Individual trust beneficiary interests were integrated into three groups with other trust beneficiary interests
when INV procured funds through debt financing backed by trust assets in July 2011. As a result of
disposition of assets and detachment of trust beneficiary interest from an integrated trust account thereafter,
the grouping of trust beneficiary interests at the end of the Reporting Period is as follows:
Group 1
Nisshin Palacestage Daitabashi, Growth Maison Shin-Yokohama, Belle Face Ueno-Okachimachi, Growth
Maison Yoga, Shibuya-Honmachi Mansion, and Foros Nakamurabashi.
Group 2
College Square Machida, Belair Meguro, and Wacore Tsunashima I.
Group 3
Suncrest Shakujii-Koen, Grand Rire Kameido, Acseeds Tower Kawaguchi-Namiki, Growth Maison Kaijin,
and College Square Machiya.
“Appraisal value as of the end of the Reporting Period” indicates appraisal value calculated deeming theowned portion and the floor expansion portion as one.
“Appraisal value as of the end of the Reporting Period” indicates appraisal value calculated deeming theowned portion and the adjacent land portion as one.
“Appraisal value as of the end of the Reporting Period” is converted into JPY using the exchange rate of USD
1 = JPY 144.99, which is the exchange rate on the closing date of the fiscal period (June 30, 2023).

- 36 -

Trends for the leasing operations of the properties owned by INV are as below.

Name of property

39th fiscal period(July 1, 2022 to December 31, 2022)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)40th fiscal period(January 1, 2023 to June 30, 2023)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)Nisshin Palacestage
Daitabashi

1

89.2

35,413

0.3

1

89.9

36,7190.3

A28 Growth Maison Gotanda

1

100.0

28,486

0.3

1

100.0

28,4590.2

A29

Growth Maison Kameido

1

98.4

34,559

0.3

1

97.0

35,661

0.3

A30

Emerald House

1

96.9

40,383

0.4

1

100.0

47,291

0.4

A32

Suncrest Shakujii-Koen

1

100.0

39,384

0.4

1

100.0

40,5180.3

A33

Growth Maison ShinYokohama

1

92.7

37,798

0.4

1

95.5

38,1100.3

A34

Belle Face UenoOkachimachi

1

98.3

32,062

0.3

1

98.5

34,0990.3

A35Grand Rire Kameido

1

100.0

26,619

0.3

1

100.0

26,6190.2

A37Growth Maison Yoga

1

100.0

22,781

0.2

1

100.0

23,3400.2

A38

Route Tachikawa

1

96.6

21,574

0.2

1

100.0

22,781

0.2

A39

Shibuya-Honmachi Mansion

1

100.0

21,331

0.2

1

100.0

21,1790.2

A40City Heights Kinuta

1

100.0

19,339

0.2

1

100.0

19,8370.2

A41

Acseeds Tower KawaguchiNamiki

1

91.2

25,376

0.2

1

94.8

26,947

0.2

A43

College Square Machida

1

100.0

16,609

0.2

1

100.0

16,6090.1

A44

Belair Meguro

1

87.9

14,844

0.1

1

88.1

15,3660.1

A45

Wacore Tsunashima I

1

86.1

16,993

0.2

1

81.9

18,2980.2

A46

Foros Nakamurabashi

1

97.2

18,873

0.2

1

100.0

19,4900.2

A47

Growth Maison Kaijin

1

96.7

24,338

0.2

1

97.4

23,7970.2

A48

College Square Machiya

1

100.0

14,924

0.1

1

100.0

14,924

0.1

A59

Towa City Coop Shinotsuka
II

1

100.0

36,301

0.4

1

97.5

37,4030.3

A61

Bichsel Musashiseki

1

87.1

22,014

0.2

1

94.3

23,096

0.2

A63

Towa City Coop Sengencho

1

92.4

59,514

0.6

1

89.5

59,2400.5

A64Royal Park Omachi

1

97.3

26,034

0.3

1

93.7

26,642

0.2

A65

Lexington Square
Haginomachi

1

100.0

18,319

0.2

1

89.8

18,0050.2

A66

Visconti Kakuozan

1

78.3

9,680

0.1

1

100.0

10,3030.1

A26- 37 -Name of property

39th fiscal period(July 1, 2022 to December 31, 2022)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)40th fiscal period(January 1, 2023 to June 30, 2023)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)

A72

Lexington Square Honjo
Azumabashi

1

91.1

18,641

0.2

1

100.0

19,166

0.2

A73

AMS TOWER Minami 6-Jo

1

95.4

44,093

0.4

1

92.9

45,417

0.4

A84

Revest Heian

1

95.2

23,794

0.2

1

100.0

16,9530.1

A87

Excellente Kagurazaka

1

97.1

18,771

0.2

1

78.1

14,6240.1

A90

Queen’s Court Fukuzumi

1

100.0

17,747

0.2

1

95.0

13,641

0.1

A92

Belair Oimachi

1

96.1

15,467

0.2

1

90.1

12,9350.1

A93

Siete Minami-Tsukaguchi

1

92.5

17,234

0.2

1

100.0

58,0800.5

A94

Prime Life Sannomiya
Isogami Koen

1

100.0

15,176

0.1

1

96.8

50,396

0.4

A96

Century Park Shinkawa 1bankan

1

86.4

18,177

0.2

1

88.1

157,346

1.3

A97West Avenue

1

100.0

13,413

0.1

1

100.0

224,161

1.9

A99

Prime Life Mikage

1

93.4

12,579

0.1

1

89.9

36,7190.3

A101 Lieto Court Mukojima

1

98.5

57,357

0.6

1

100.0

28,4590.2

A102 Lieto Court Nishi-Ojima

1

97.8

50,538

0.5

1

97.0

35,661

0.3

A103 Royal Parks Momozaka

1

92.7

158,579

1.6

1

100.0

47,291

0.4

A104 Royal Parks Shinden

1

100.0

223,656

2.2

1

100.0

40,518

0.3

1

96.8

123,069

1.2

1

95.5

38,110

0.3

41

96.4

1,491,858

14.7

41

95.9

1,516,269

12.6

1

100.0

141,330

1.4

1

100.0

141,287

1.2

Subtotal

1

100.0

141,330

1.4

1

100.0

141,287

1.2

D01

Hotel MyStays Kanda

1

100.0

49,416

0.5

1

100.0

105,033

0.9

D02

Hotel MyStays Asakusa

1

100.0

34,566

0.3

1

100.0

73,1530.6

D03

Hotel MyStays Kyoto-Shijo

1

100.0

69,428

0.7

1

100.0

145,361

1.2

D04

MyStays Shin-Urayasu
Conference Center

1

100.0

158,751

1.6

1

100.0

192,551

1.6

D05

Hotel MyStays Maihama

1

100.0

155,282

1.5

1

100.0

185,369

1.5

D06

Hotel MyStays Premier
Dojima1

100.0

127,230

1.2

1

100.0

191,628

1.6

D07

Hotel MyStays NagoyaSakae

1

100.0

105,283

1.0

1

100.0

123,8811.0

D08

Hotel MyStays SakaisujiHonmachi

1

100.0

64,123

0.6

1

100.0

85,2560.7

D09

Hotel MyStays Yokohama

1

100.0

132,187

1.3

1

100.0

138,735

1.2

A106Royal Parks Seasir MinamiSenju
Subtotal

B18

AEON TOWN Sukagawa- 38 -Name of property

39th fiscal period(July 1, 2022 to December 31, 2022)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)40th fiscal period(January 1, 2023 to June 30, 2023)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)

D10

Hotel MyStays Nippori

1

100.0

25,511

0.3

1

100.0

60,2740.5

D11Hotel MyStays FukuokaTenjin-Minami

1

100.0

82,035

0.8

1

100.0

120,847

1.0

D12

Flexstay Inn Iidabashi

1

100.0

27,532

0.3

1

100.0

42,4170.4

D13Hotel MyStays
Ueno Inaricho

1

100.0

10,711

0.1

1

100.0

37,0050.3

D14

Flexstay Inn Shinagawa

1

100.0

22,367

0.2

1

100.0

42,681

0.4

D15

Flexstay Inn Tokiwadai

1

100.0

23,986

0.2

1

100.0

43,771

0.4

D16

Flexstay Inn Sugamo

1

100.0

13,103

0.1

1

100.0

31,5010.3

D17Hotel MyStays Otemae

1

100.0

49,389

0.5

1

100.0

65,9470.5

D18

Hotel MyStays Kiyosumi
Shirakawa

1

100.0

18,256

0.2

1

100.0

52,5530.4

D19

Flexstay Inn Nakanobu P1

1

100.0

7,312

0.1

1

100.0

15,601

0.1

D20

Flexstay Inn Nakanobu P2

1

100.0

2,699

0.0

1

100.0

7,606

0.1

D21

APA Hotel
Yokohama-Kannai

1

100.0

256,241

2.5

1

100.0

252,1222.1

D22Hotel MyStays HakodateGoryokaku

1

100.0

95,875

0.9

1

100.0

86,416

0.7

D23

Flexstay Inn Shirogane

1

100.0

19,136

0.2

1

100.0

39,5300.3

D24

Hotel MyStays Haneda

1

100.0

106,316

1.0

1

100.0

177,272

1.5

D25

Hotel MyStays Kameido P1

1

100.0

84,079

0.8

1

100.0

145,968

1.2

D26

Hotel MyStays Ueno
Iriyaguchi

1

100.0

23,823

0.2

1

100.0

72,101

0.6

D27

Hotel MyStays Kameido P2

1

100.0

53,451

0.5

1

100.0

95,0770.8

D28

Hotel MyStays Shimizu

1

100.0

58,062

0.6

1

100.0

68,431

0.6

D29Super Hotel
Shinbashi/Karasumoriguchi

1

100.0

39,426

0.4

1

100.0

39,4260.3

D30

Flexstay Inn Higashi-Jujo

1

100.0

10,386

0.1

1

100.0

25,7700.2

D31

Hotel MyStays Utsunomiya

1

100.0

85,424

0.8

1

100.0

74,9160.6

D32

Flexstay Inn KawasakiKaizuka

1

100.0

14,659

0.1

1

100.0

22,5390.2

D33

Comfort Hotel Toyama

1

100.0

35,928

0.4

1

100.0

35,9280.3

D34

Flexstay Inn KawasakiOgawacho

1

100.0

11,326

0.1

1

100.0

22,5380.2

D35

Flexstay Inn Ekoda

1

100.0

55,446

0.5

1

100.0

94,8840.8

D36Super Hotel Tokyo-JR
Tachikawa Kitaguchi

1

100.0

31,787

0.3

1

100.0

31,7870.3- 39 -Name of property

39th fiscal period(July 1, 2022 to December 31, 2022)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)40th fiscal period(January 1, 2023 to June 30, 2023)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)

D37

Super Hotel JR Uenoiriyaguchi

1

100.0

27,275

0.3

1

100.0

27,2750.2

D38

Hotel MyStays Shinsaibashi

1

100.0

22,642

0.2

1

100.0

53,182

0.4

D39

Comfort Hotel Kurosaki

1

100.0

35,271

0.3

1

100.0

35,271

0.3

D40

Comfort Hotel Maebashi

2

100.0

44,171

0.4

2

100.0

44,171

0.4

D41

Comfort Hotel TsubameSanjo

2

100.0

34,949

0.3

2

100.0

34,9490.3

D42

Comfort Hotel Kitami

1

100.0

26,323

0.3

1

100.0

26,1030.2

D43

Hotel MyStays Gotanda
Station1

100.0

310,452

3.0

1

100.0

476,400

4.0

D44

Hotel Epinard Nasu

1

100.0

1,152,194

11.3

1

100.0

613,049

5.1

D45

Hotel MyStays Fukuoka
Tenjin1

100.0

132,560

1.3

1

100.0

203,299

1.7

D46

Hotel MyStays
Hamamatsucho

1

100.0

76,368

0.7

1

100.0

128,644

1.1

D47

Hotel MyStays PremierKanazawa

1

100.0

198,640

2.0

1

100.0

195,631

1.6

D48

Takamatsu Tokyu REI Hotel

2

95.8

109,273

1.1

2

95.8

101,089

0.8

D49

Hotel MyStays Premier
Hamamatsucho

1

100.0

148,767

1.5

1

100.0

267,483

2.2

D50

Hotel MyStays Shin Osaka
Conference Center

1

100.0

173,130

1.7

1

100.0

256,594

2.1

D51

Hotel MyStays Premier
Omori

1

100.0

133,688

1.3

1

100.0

282,439

2.4

D52

Kamenoi Hotel Beppu

1

100.0

312,823

3.1

1

100.0

396,271

3.3

D53

Hotel MyStays Sapporo
Station1

100.0

147,968

1.5

1

100.0

175,489

1.5

D54

Hotel MyStays Yokohama
Kannai1

100.0

135,673

1.3

1

100.0

141,550

1.2

D55

Art Hotel Joetsu

1

100.0

52,101

0.5

1

100.0

66,0700.6

D56

Art Hotel Hirosaki City

1

100.0

116,776

1.1

1

100.0

132,281

1.1

D57

Hotel MyStays Oita

1

100.0

100,900

1.0

1

100.0

100,9110.8

D58

Hotel MyStays Gotanda

1

100.0

65,093

0.6

1

100.0

106,0290.9

D59

Hotel MyStays Tachikawa

1

100.0

90,214

0.9

1

100.0

103,627

0.9

D60

Hotel MyStays Premier
Akasaka
Hotel MyStays Premier
Sapporo Park

1

100.0

201,521

2.0

1

100.0

449,831

3.7

1

100.0

229,699

2.3

1

100.0

295,736

2.5

D62

Hotel MyStays Ueno East

1

100.0

36,932

0.4

1

100.0

115,499

1.0

D63

Hotel MyStays Midosuji
Honmachi

1

100.0

33,286

0.3

1

100.0

70,672

0.6

D61- 40 -Name of property

39th fiscal period(July 1, 2022 to December 31, 2022)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)40th fiscal period(January 1, 2023 to June 30, 2023)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)

D64

Hotel MyStays Sapporo
Aspen

1

100.0

217,658

2.1

1

100.0

263,767

2.2

D65

Art Hotel Ishigakijima

1

100.0

324,249

3.2

1

100.0

243,155

2.0

D66

Hotel MyStays Fuji Onsen
Resort1

100.0

255,162

2.5

1

100.0

310,461

2.6

D67

Hotel Sonia Otaru

1

100.0

191,787

1.9

1

100.0

177,448

1.5

D68

Hotel MyStays Kanazawa
Castle1

100.0

87,429

0.9

1

100.0

89,987

0.7

D69

Art Hotel Niigata Station

1

100.0

150,178

1.5

1

100.0

174,400

1.5

D70

Hotel MyStays Nagoya
Nishiki

1

100.0

74,668

0.7

1

100.0

92,6650.8

D71

Hotel Nord Otaru

1

100.0

127,461

1.3

1

100.0

118,006

1.0

D72

Hotel MyStays Kagoshima
Tenmonkan

2

100.0

145,757

1.4

2

100.0

165,150

1.4

D73

Art Hotel Asahikawa

1

100.0

129,289

1.3

1

100.0

88,9900.7

D74

Hotel MyStays Matsuyama

1

100.0

72,427

0.7

1

100.0

90,5290.8

Hotel MyStays Sapporo
Susukino
Hotel MyStays Sapporo
Nakajima Park
Hotel MyStays Sapporo
Nakajima Park Annex

1

100.0

26,347

0.3

1

100.0

40,821

0.3

1

100.0

15,191

0.1

1

100.0

26,415

0.2

1

100.0

6,336

0.1

1

100.0

19,0800.2

Flexstay Inn Sakuragicho

1

100.0

33,084

0.3

1

100.0

38,5100.3

MyCUBE by MYSTAYS
Asakusa Kuramae
Hotel MyStays Kagoshima
Tenmonkan Annex

1

100.0

2,504

0.0

1

100.0

23,906

0.2

1

100.0

49,331

0.5

1

100.0

55,2220.5

D81

Hotel MyStays Nayoro

1

100.0

35,963

0.4

1

100.0

27,2560.2

D82

Hotel MyStays Premier
Narita1

100.0

215,985

2.1

1

100.0

237,341

2.0

D83

Art Hotel Morioka

1

100.0

79,493

0.8

1

100.0

114,824

1.0

Subtotal

87

99.9

8,549,562

84.0

87

99.9

10,343,397

86.2

Total

129

99.5

10,182,751

100.0

129

99.4

12,000,955

100.0

D75
D76
D77
D78
D79
D80

(Note 1)
(Note 2)
(Note 3)

“Occupancy rate” is calculated by dividing the leased area by leasable area.
“Occupancy rate” and “Ratio of rental revenue” are rounded to one decimal place.
“Rental revenue (during period)” indicates leasing operation revenues during the fiscal period for each
property and has been rounded down to the nearest thousand yen.

- 41 -

39th fiscal period
40th fiscal period(July 1, 2022 to December 31, 2022)(January 1, 2023 to June 30, 2023)
Management
Management
Occupancy
Occupancy
contract
Ratio ofcontract
Ratio of
Number ofrate
Number ofrate
revenue management
revenue management
tenants(at end oftenants(at end of(during
contract(during
contract(at end of
period)(at end of
period)period)revenueperiod)revenueperiod)(%)
period)
(%)
(JPY
(%)
(JPY
(%)
(unit)(Note 1)
(unit)(Note 1)
thousand)(Note 2)
thousand)(Note 2)
(Note 2)
(Note 2)
(Note 3)(Note 3)Name of property

D200

Westin Grand Cayman Seven
Mile Beach Resort & Spa

1

100.0

1,584,958

90.7

1

100.0

3,481,480

88.9

D201

Sunshine Suites Resort

1

100.0

161,889

9.3

1

100.0

432,545

11.1

Total

2

100.0

1,746,848

100.0

2

100.0

3,914,026

100.0(Note 1)
(Note 2)
(Note 3)

4

“Occupancy rate” is calculated using the area subject to management contract.
“Occupancy rate” and “Ratio of management contract revenue” are rounded to one decimal place.
“Management contract revenue” is converted to JPY using the exchange rate at the time of the transaction.

Asset Portfolio of Facilities Generating Renewable Energy, etc.
Not applicable

5

Asset Portfolio Including Rights to Operate Public Facilities, etc.
Not applicable

6

Asset Portfolio of Securities
The portfolio of the securities held by INV at the end of the Reporting Period is as below.

Name

Type

Preferred equity
securities in
Kingdom Special
Purpose Company(Note 1)
(Note 2)

Quantity Book value (JPY million)(units)Unit priceAmountFair value (JPY million) Valuation gainor loss
Unit priceAmount (JPY million)

Notes

Preferred equity 178,458
securities-

17,856-

18,935

1)
1,079 (Note(Note 2)

Total-

17,856-

18,935

1,079

Book value of the preferred equity securities that is classified as investment in affiliates indicates theacquisition cost.
INV owns 178,458 units of preferred equity securities issued by Kingdom Special Purpose Company(equivalent to 49.0% of preferred equity securities issued and outstanding after the issuance of the said
preferred equity securities), with the Sheraton Grande Tokyo Bay Hotel as an underlying asset.

- 42 -

7

Status of Contract Amount and Fair Value of Specified Transaction
As of the end of the Reporting Period, the contract amount and fair value of the outstanding transaction under the specified
transaction account of INV are as follows.
(Unit: JPY thousand)Category

Contract amount(Note 1)
Amounts due after
one yearTransaction type, etc.

Fair value(Note 2)Foreign Exchange Forward,
5,158,490
1,872,600-490,769
Short USD
Interest rate swap
36,687,000
18,441,000
4,550
Receive floating rate/pay fixed rate
The contract amount, etc. for interest rate swap are stated based on a notional principal.
Estimation method for fair value
Foreign Exchange Forward: Indicates fair values of option fees, etc. presented by the correspondent financial
institutions.
Interest rate swap: Estimated based on the price, etc. presented by the correspondent financial institutions.

Non-market
transaction(Note 1)
(Note 2)

8

Status of Other Assets
Real estate and trust beneficiary interests in real estate are listed together in “3 Asset Portfolio of Real Estate, etc.” above.
As of the end of the Reporting Period, there are no investments in specified assets that are significant investment targets
for INV outside of 3 and 6 above.

9

Assets Owned Outside of Japan or the Region
Assets owned outside of Japan or the region held by INV at the end of the Reporting Period are as below.

Country nameAmount held
(JPY million)(Note 1)

Appraisal value as of the end of
the Reporting Period (JPY million) (Note 2)
Percentage of
total assets (%)

No. ofproperties(properties)

Japan

425,186

502,123

86.8

126

The Cayman Islands

33,16876,685

13.2

2

Total

458,354578,809

100.0

128

(Note 1)

(Note 2)

“Amount held” is from the balance sheet (book value after depreciation for real estate and trust beneficiaryinterest in real estate; and book value for preferred equity securities with real estate as underlying assets) as ofthe end of the Reporting Period.
“Appraisal value as of the end of the Reporting Period” indicates the real estate appraisal value as of the end of
the Reporting Period, or the research value stated in the real estate research report and the appraisal value ofinvestment securities. “Appraisal value as of the end of the Reporting Period” for preferred equity securities
which INV holds in Japan indicates acquisition cost since their fair value is deemed extremely difficult to value.
“Appraisal value as of the end of the Reporting Period” for assets which INV holds in the Cayman Islands
indicates the amount converted to JPY using the exchange rate of USD 1 = JPY 144.99, which is the exchange
rate on the closing date of the fiscal period (June 30, 2023).

- 43 -

Capital Expenditures for Properties Held by INV
1Schedule for Capital Expenditures
The schedule for the principal capital expenditures for property maintenance construction, etc., as of the end of theReporting Period for the real estate-related assets owned by INV is as follows.
Estimated cost (JPY thousand)Name of property

PurposeScheduled time of
implementation

Total

Payment for
Advancethe Reporting
payments
PeriodHakodate-shi,
Hokkaido

Exterior wallrenovation work

From July 2023
To December 2023

85,000--

Sapporo-shi,
Hokkaido

Air conditioning
facility and hot water
From July 2023
system renovationTo
December 2023
work for energy
saving65,000--

D83 Art Hotel Morioka

Morioka-shi,
Iwate

Multistory parking
lot parts replacement

From July 2023
To December 2023

56,500--A38 Route Tachikawa

Tachikawa-shi,Tokyo

Exterior wallrenovation work

From July 2023
To December 2023

49,900--

Hakodate-shi,
Hokkaido

Multistory parking
lot pallet renovation
work

From July 2023
To December 2023

45,000

-

-

D22

D64

D22

2

Location

Hotel MyStays
Hakodate-Goryokaku
Hotel MyStays
Sapporo Aspen

Hotel MyStays
Hakodate-Goryokaku

Capital Expenditures for the Reporting Period
The principal construction work constituting capital expenditures for the real estate assets for the Reporting Period is asfollows. Capital expenditures for the Reporting Period totaled JPY 952,975 thousand, and together with JPY 17,029
thousand in repair costs included in this fiscal period’s expenses, construction work totaling JPY 970,005 thousand was
implemented.
Name of property

Payment(JPY thousand)PurposeTime of implementation

Air conditioning facility
renovation work

From January 2023
To June 2023

82,640Development work for
D44 Hotel Epinard Nasu Nasu-gun, Tochigi “Forest Area“

From January 2023
To June 2023

40,800Disaster prevention facility
renovation work

From January 2023
To June 2023

38,920Hotel MyStays
D61 Premier Sapporo
Park

Location
Sapporo-shi,
Hokkaido

D52

Beppu Kamenoi
Hotel

A26

Nisshin Palacestage Suginami-ku,
Daitabashi
Tokyo

Elevator renovation work

From January 2023
To June 2023

17,590A33

Growth Maison
Shin-YokohamaIntercom facility renovation
work

From January 2023
To June 2023

12,430Beppu-shi, Oita

Yokohama-shi
Kanagawa

760,594

Other construction

952,975

Total- 44 -

3

Reserved Funds for Long-Term Maintenance Plan (repair reserves)

INV has reserved funds from the cash flow of the fiscal period, as shown below, towards large-scale
maintenance repairs in the medium- to long-term in accordance with the long-term maintenance plan for each
property.

Fiscal period(Unit: JPY thousand)
36th
37th
38th
39th
40th
fiscal period
fiscal period
fiscal period
fiscal period
fiscal period
From January 1, From July 1, 2021 From January 1, From July 1, 2022 From January 1,
2021 to June 30, to December 31, 2022 to June 30, to December 31, 2023 to June 30,
2021
2021
2022
2022
2023

Reserved funds at beginning
2,610,671
2,749,724
2,791,578
3,025,792
3,096,949
of period
Amount reserved
1,027,418
546,287645,507
737,881
968,000(Note 1)
Amount reversed
667,056
407,235
603,652
503,667
896,843(Note 1)
Amount carried over for
3,457,311
2,749,724
2,791,578
3,025,792
3,096,949
next fiscal period(Note 1) The amount reserved for the relevant fiscal period includes the reserves for acquired properties, and theamount reversed includes the reserves for sold properties.

- 45 -

Overview of Expenses and Liabilities
1

Statement of Operating Expenses

Item(a) Asset management fees(b) Asset custody fees(c) Administrative services fees(d) Directors’ compensation(e) Other
Total

2(JPY thousand)40th fiscal period
January 1, 2023 to June 30, 2023

39th fiscal period
July 1, 2022 to December 31, 2022
300,000

300,000

24,47524,73650,047

39,162

4,800

4,800

117,057

51,871

496,380

420,570

Borrowing Conditions
Borrowing conditions by financial institution at the end of the Reporting Period are as below.

Type

LenderBalance atBalance at
Borrowing beginning of end of Reportingdate
Reporting Period
Period(JPY thousand) (JPY thousand)

MUFG Bank, Ltd.

Jan. 24,2022

1,700,000

Sumitomo Mitsui Trust
Bank, Limited

Jan. 24,2022

6,800,000-

1,733,000-

200,000-

The Bank of Fukuoka, Ltd.

333,000-

Mizuho Bank, Ltd.

386,000-

1,275,000-

Mizuho Bank, Ltd.
The Shizuoka Bank, Ltd.

MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
SBI Shinsei Bank, Limited
Development Bank ofJapan, Inc.
The Shizuoka Bank, Ltd.
Mizuho Bank, Ltd.
Short-term
MUFG Bank, Ltd.
loans
Sumitomo Mitsui Trust
Bank, Limited
The Nomura Trust andBanking Co., Limited
The Shizuoka Bank, Ltd.

Mar. 14,2022

Mar. 29,2022

2,100,000
297,000
1,000,000

Mar. 30,2022-

1,215,500-

199,000-(Note 3)

0.318

Jan. 24,2023(Note 3)

0.302

Mar. 14,2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.302

Mar. 14,2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.302

Mar. 14,2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.302

Mar. 14,2023(Note 3)(Note 2)

Unsecured /with noguarantee(Note 2)-375,000-

The Bank of Fukuoka, Ltd.

525,000-

Mizuho Bank, Ltd.

902,000-

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank ofJapan, Inc.

692,000-

681,000-

617,000-

147,000-

Mar. 30,
2022

Citibank, N.A., Tokyo
BranchJun. 17,2022

2,349,000

-

0.295

Jun. 17,2023(Note 3)Development Bank ofJapan, Inc.

Jun. 17,2022

1,000,000

-

0.295

Jun. 17,2023(Note 3)- 46 -

Unsecured /with noguarantee
Unsecured /(Note 2) with noguarantee

Jan. 24,2023(Note 2)-800,000

Notes

0.318

-

1,270,000

447,500

Averageinterest
Repayment Repayment
rate
Purposedate
method(%)(Note 1)

Unsecured /with noguarantee
Unsecured /(Note 2) with noguarantee

Type

LenderBalance atBalance at
Borrowing beginning of end of Reportingdate
Reporting Period
Period(JPY thousand) (JPY thousand)

Mizuho Bank, Ltd.

11,643,000

11,643,000

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchSBI Shinsei Bank, Limited
Development Bank ofJapan, Inc.
Resona Bank, Limited
The Ogaki Kyoritsu Bank,
Ltd.

11,567,000

11,567,000

9,203,000

9,203,000

4,450,000

4,450,000

5,120,000

5,120,000

5,513,000

5,513,000

Sumitomo Mitsui Banking
Corporation

Jul. 19,
2022

Sep. 14,2022

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchSBI Shinsei Bank, Limited
Development Bank ofJapan, Inc.
Resona Bank, Limited
The Nomura Trust andShort-term Banking Co., Limited
loans
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
SBI Shinsei Bank, Limited
Development Bank ofJapan, Inc.
Resona Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchSBI Shinsei Bank, Limited
Development Bank ofJapan, Inc.
Resona Bank, Limited

Sep. 26,
2022

Sep. 27,2022

Oct. 13,2022

666,000

666,000

1,335,000

1,335,000

187,000

187,000

3,000,000

3,000,000

3,287,000

3,287,000

2,600,000

2,600,000

3,287,000

3,287,000

1,000,000

1,000,000

667,000

667,000

833,000

833,000

500,000

500,000

445,000

445,000

590,000

590,000

2,850,000

2,850,000

2,133,000

2,133,000

2,521,500

2,521,500

1,328,500

1,328,500

1,244,000

1,244,000

500,000

500,000

442,000

442,000

500,000

500,000

500,000

500,000

500,000

500,000

355,000

355,000

355,000

355,000

1,500,000

1,500,000

333,000

333,000

The Bank of Fukuoka, Ltd.

300,000

300,000

Mizuho Bank, Ltd.

190,000-

146,000-

143,000-

130,000-

30,000-MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank ofJapan, Inc.

Sep. 27,2022- 47 -

Averageinterest
Repayment Repayment
rate
Purposedate
method(%)(Note 1)

Notes

0.295

Jul. 19,2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.295

Sep. 14,2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.295

Sep. 26,
2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.295

Sep. 26,
2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.295

Sep. 26,
2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.295

Sep. 26,
2023(Note 4)(Note 3)(Note 2)

Unsecured /with noguarantee

Type

Balance atBalance at
Borrowing beginning of end of Reportingdate
Reporting Period
Period(JPY thousand) (JPY thousand)LenderAverageinterest
Repayment Repayment
rate
Purposedate
method(%)(Note 1)

Notes

Unsecured /with noguarantee
Unsecured /(Note 2) with noguarantee

Citibank, N.A., Tokyo
BranchSep. 27,2022

1,256,000

1,256,000

0.295

Sep. 26,
2023(Note 3)

Mizuho Bank, Ltd.

Nov. 29,2022

4,321,000

4,321,000

0.295

Nov. 29,2023(Note 3)-

1,656,400

0.295

Jan. 16,2024(Note 3)(Note 2)1,700,000

0.295

Jan. 24,2024(Note 3)(Note 2)6,800,000

0.295

Jan. 24,2024(Note 3)

0.295

Mar. 14,2024(Note 3)(Note 2)

Unsecured /with noguarantee

0.295

Mar. 14,2024(Note 3)(Note 2)

Unsecured /with noguarantee

0.295

Mar. 14,2024(Note 5)(Note 3)(Note 2)

Unsecured /with noguarantee

0.295

Jun. 27,2024(Note 3)(Note 2)

Unsecured /with noguarantee

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchSBI Shinsei Bank, Limited
Development Bank ofJapan, Inc.
Resona Bank, Limited
The Nomura Trust andBanking Co., Limited

2,318,200-

1,312,600-

1,500,000-

169,000-

600,000

Jan. 24,
2023

Sumitomo Mitsui Trust
Bank, Limited

Jan. 24,2023

100,000-

333,000-

148,000

Mar. 14,2023

281,000-

100,000
700,000-

1,845,000

The Bank of Fukuoka, Ltd.

-858,000

MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.

-85,000MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank ofJapan, Inc.
SBI Shinsei Bank, Limited
SubtotalMar. 14,2023

Jun. 27,2023-

109,000

-

-

-

-

-

-

-

-

-

-

114,515,000

Unsecured /with noguarantee
Unsecured /(Note 2) with noguarantee

254,000--

Mar. 16,
2023

Unsecured /with noguarantee

300,000-

MUFG Bank, Ltd.

Short-term Mizuho Bank, Ltd.
loans
MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
SBI Shinsei Bank, Limited
Development Bank ofJapan, Inc.
The Nomura Trust andBanking Co., Limited
The Shizuoka Bank, Ltd.

2,451,800-

Jan. 16,2023(Note 2)

1,000,000
111,453,000- 48 -

Type

LenderMizuho Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Sumitomo Mitsui Banking
Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Sumitomo Mitsui Banking
Corporation
SBI Shinsei Bank, Limited
MUFG Bank, Ltd.

Balance atBalance at
Borrowing beginning of end of Reporting
Reporting Period
Perioddate(JPY thousand) (JPY thousand)Oct. 13,2017

Oct. 13,2017

Jun. 27,2018

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
SBI Shinsei Bank, Limited
Citibank, N.A., Tokyo
BranchSumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.
Long-term Sumitomo Mitsui Trust
Bank, Limited
loans(Note 6) SBI Shinsei Bank, Limited
Citibank, N.A., Tokyo
BranchDevelopment Bank ofJapan, Inc.
Resona Bank, Limited
The Nomura Trust andBanking Co., Limited
AEON Bank, Ltd.

Jul. 17,2018

Sep. 26,
2018

Aozora Bank, Ltd
The Nishi-Nippon City
Bank, Ltd.
The Tochigi Bank, Ltd.

Mar. 29,2019

Kiraboshi Bank, Ltd.

Mar. 29,2019

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchSBI Shinsei Bank, Limited
Resona Bank, Limited

1,250,000

1,250,000

1,065,000

1,065,000

1,250,000

1,250,000

1,250,000

1,250,000

1,060,000

1,060,000

1,250,000

1,250,000

1,000,000-

500,000-

2,442,000

2,442,000

2,220,000

2,220,000

1,997,000

1,997,000

1,110,000

1,110,000

1,000,000

1,000,000

890,000

890,000

3,287,500

3,287,500

3,287,500

3,287,500

2,600,000

2,600,000

1,000,000

1,000,000

833,000

833,000

667,000

667,000

500,000

500,000

445,000

445,000

166,000

166,000

333,000

333,000

1,000,000

1,000,000

921,000

921,000

480,000

480,000

961,000

961,000

571,400-

1,464,800
1,331,200
Jul. 16,2019

628,600
1,000,000

Notes

0.745

Oct. 13,2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.845

Oct. 11,2024(Note 3)(Note 2)

Unsecured /with noguarantee

0.750

Jun. 27,2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.545Jul. 14,2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.545

Sep. 26,
2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.594

Mar. 29,2024(Note 3)(Note 2)

Unsecured /with noguarantee

0.845

Mar. 29,2029(Note 3)(Note 2)

Unsecured /with noguarantee

0.400Jan. 16,2023(Note 3)(Note 2)

Unsecured /with noguarantee-

200,000-

600,000-- 49 -

Averageinterest
Repayment Repayment
rate
Purposedate
method(%)(Note 1)

Type

LenderBalance atBalance at
Borrowing beginning of end of Reportingdate
Reporting Period
Period(JPY thousand) (JPY thousand)

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchSBI Shinsei Bank, Limited

Jul. 16,2019

571,400

571,400

1,464,800

1,464,800

1,331,200

1,331,200

628,600

628,600

1,000,000

1,000,000

200,000

200,000

Resona Bank, Limited

600,000

600,000

Mizuho Bank, Ltd.

1,171,400

1,171,400

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchSBI Shinsei Bank, Limited

1,464,800

1,464,800

1,331,200

1,331,200

628,600

628,600

1,000,000

1,000,000

Jul. 16,2019

200,000

200,000

2,171,400

2,171,400

1,464,800

1,464,800

1,331,200

1,331,200

628,600

628,600

200,000

200,000

Mizuho Bank, Ltd.

2,170,400

2,170,400

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
SBI Shinsei Bank, Limited

1,464,800

1,464,800

1,331,200

1,331,200

628,600

628,600

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Long-term Sumitomo Mitsui Banking
loans
Corporation(Note 6) Sumitomo Mitsui Trust
Bank, Limited
SBI Shinsei Bank, Limited

Jul. 16,
2019

Jul. 16,2019

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchDevelopment Bank ofJapan, Inc.
AEON Bank, Ltd.
The Nomura Trust andBanking Co., Limited

Jul. 19,2019

200,000

200,000

1,085,000-

987,000-

987,000-

684,000-

500,000-

300,000-

300,000-

100,000-- 50 -

Averageinterest
Repayment Repayment
rate
Purposedate
method(%)(Note 1)

Notes

0.499

Jan. 16,2024(Note 3)(Note 2)

Unsecured /with noguarantee

0.563

Jul. 16,2024(Note 3)(Note 2)

Unsecured /with noguarantee

0.595

Jan. 16,2025(Note 3)(Note 2)

Unsecured /with noguarantee

0.745Jul. 16,2025(Note 3)(Note 2)

Unsecured /with noguarantee

0.413

Jan. 16,2023(Note 3)(Note 2)

Unsecured /with noguarantee

Type

LenderBalance atBalance at
Borrowing beginning of end of Reportingdate
Reporting Period
Period(JPY thousand) (JPY thousand)

Mizuho Bank, Ltd.

712,000

712,000

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchDevelopment Bank ofJapan, Inc.
AEON Bank, Ltd.
The Nomura Trust andBanking Co., LimitedAozora Bank, Ltd.

986,000

986,000

986,000

986,000

684,000

684,000

500,000

500,000

300,000

300,000

300,000

300,000

100,000

100,000

Jul. 19,2019

237,000

237,000

Mizuho Bank, Ltd.

712,000

712,000

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchDevelopment Bank ofJapan, Inc.
AEON Bank, Ltd.
The Nomura Trust andBanking Co., LimitedAozora Bank, Ltd..,

986,000

986,000

986,000

986,000

684,000

684,000

500,000

500,000

300,000

300,000

300,000

300,000

100,000

100,000

Jul. 19,2019

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Long-term
Sumitomo Mitsui Banking
loans(Note 6) Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank ofJapan, Inc.
AEON Bank, Ltd.
The Nomura Trust andBanking Co., LimitedAozora Bank, Ltd.

Jul. 19,2019

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank ofJapan, Inc.
AEON Bank, Ltd.
The Nomura Trust andBanking Co., LimitedAozora Bank, Ltd.
Tokyo Star Bank, Limited
Mizuho Bank, Ltd.
San ju San Bank,Ltd.
San ju San Bank,Ltd.
San ju San Bank,Ltd.
The Nishi-Nippon City
Bank, Ltd.

Jul. 19,2019

Jul. 22,2019
Aug. 28,2019
Oct. 15,2019
Oct. 15,2019
Oct. 15,2019

375,000

375,000

1,212,000

1,212,000

986,000

986,000

986,000

986,000

684,000

684,000

300,000

300,000

300,000

300,000

100,000

100,000

Averageinterest
Repayment Repayment
rate
Purposedate
method(%)(Note 1)

0.525

Jan. 16,2024(Note 3)(Note 2)

Unsecured /with noguarantee

0.580Jul. 16,2024(Note 3)(Note 2)

Unsecured /with noguarantee

0.595

Jan. 16,2025(Note 3)(Note 2)

Unsecured /with noguarantee

0.745Jul. 16,2025(Note 3)(Note 2)

Unsecured /with noguarantee

0.745Jul. 16,2025(Note 3)(Note 2)

0.462

Jan. 16,2024(Note 3)375,000

375,000

1,211,000

1,211,000

986,000

986,000

986,000

986,000

684,000

684,000

300,000

300,000

300,000

300,000

100,000

100,000

375,000

375,000

700,000

700,000

2,882,000

2,882,000

662,000

662,000

1,700,000

1,700,000

0.486

1,000,000

1,000,000

0.595

1,000,000

1,000,000

0.745- 51 -

Notes

Apr. 15,2024
Apr. 15,2025
Oct. 15,2025(Note 3)(Note 3)(Note 3)

Unsecured /with noguarantee
Unsecured /(Note 2) with noguarantee
Unsecured /(Note 2) with noguarantee
Unsecured /(Note 2) with noguarantee
Unsecured /(Note 2) with noguarantee

Type

LenderSumitomo Mitsui Trust
Bank, Limited
Sumitomo Mitsui Trust
Bank, Limited
Momiji Bank,Ltd.
The Kiyo Bank

Average
Balance atBalance at
Borrowing beginning of end of Reporting interest
Repayment Repayment Purpose
rate
Notes
date
Reporting Period
Perioddatemethod(%)(JPY thousand) (JPY thousand) (Note 1)
Unsecured /Jan. 6,
Jan. 6,1,550,000
0.417(Note 3) (Note 2) with no
2020
2023
guarantee
3,050,000
3,050,000
Unsecured /Jan. 6,
Jan. 6,0.643(Note 3) (Note 2) with no961,000
961,000
2020
2025
guarantee
480,000
480,000

Mizuho Bank, Ltd.
Resona Bank, Limited
Development Bank ofJapan, Inc.
The Bank of Fukuoka, Ltd.
The Nomura Trust andBanking Co., Limited
The Shizuoka Bank, Ltd.

634,000

Mar. 16,
2020

634,000

300,000

300,000

1,000,000

1,000,000

333,000

333,000

333,000

333,000

200,000

200,000

The Yamaguchi Bank, Ltd.

411,000

411,000

MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
The Bank of Fukuoka, Ltd.

850,000
Mar. 30,2020

1,090,000

Mar. 16,2025(Note 3)(Note 2)

Unsecured /with noguarantee

0.352

Mar. 16,2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.545

Mar. 16,2025(Note 3)(Note 2)

Unsecured /with noguarantee(Note 2)333,000

Mizuho Bank, Ltd.

582,000

582,000

MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
SBI Shinsei Bank, Limited

628,000

628,000

1,090,000

1,090,000

570,000

570,000

500,000

500,000

270,000

270,000

1,000,000

1,000,000

The Shizuoka Bank, Ltd.

270,000

270,000

The Kagawa Bank, Ltd.

500,000

500,000

The Yamaguchi Bank, Ltd.

550,000

550,000

The Chukyo Bank, Ltd.

961,000

961,000

Resona Bank, Limited
Long-term The Nomura Trust andBanking Co., Limited
loans(Note 6) Aozora Bank, Ltd.

0.487

Mar. 30,
2020

Unsecured /with noguarantee
Unsecured /(Note 2) with noguarantee
Unsecured /(Note 2) with noguarantee
Unsecured /(Note 2) with noguarantee

Tokyo Star Bank, Limited

Jul. 20,2021

1,582,000

1,582,000

0.395

Jul. 20,2024(Note 3)

Tokyo Star Bank, Limited

Jul. 20,2022

600,000

600,000

0.395

Jul. 20,2025(Note 3)

Tokyo Star Bank, Limited

Oct. 13,2022

1,190,000

1,190,000

0.545

Oct. 13,2027(Note 3)

Sumitomo Mitsui Trust
Bank, Limited

Jan. 6,2023-

1,550,000

0.295

Jan 24,2024(Note 3)

Mizuho Bank, Ltd.

-3,001,500

MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Development Bank ofJapan, Inc.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Development Bank ofJapan, Inc.

-

1,326,000-

2,293,500

0.425

Mar. 14,2026(Note 3)(Note 2)-900,000-

765,000-

981,000

0.425

Mar. 14,2026(Note 3)(Note 2)

Jun 19,2023-

1,000,000

0.375

Jun 19,2026(Note 3)

Jun 27,2023-

500,000

0.375

Jun 27,2026(Note 3)

MUFG Bank, Ltd.

(Note 1)Mar. 14,2023

Mar. 16,
2023

Subtotal

118,082,000

114,337,000

Total

232,597,000

225,790,000

Unsecured /with noguarantee

Unsecured /with noguarantee
Unsecured /(Note 2) with noguarantee
Unsecured /(Note 2) with noguarantee

Average interest rate shows the interest rate for each loan agreement as of the end of the fiscal period, rounded
to three decimal places. In regards to borrowings which interest rate swap transactions are entered into forthe purpose of avoiding risk from interest rate fluctuation, interest rates reflecting the interest rate swap are- 52 -

(Note 2)(Note 3)(Note 4)(Note 5)(Note 6)

3

shown. In regards to borrowings repaid during the Reporting Period, the interest rate for each loan
agreement as of the repayment date rounded to three decimal places is shown.
The funds raised through borrowings are mainly used to acquire trust beneficiary interests in real estate andto repay the borrowings.
The balance at the end of the period will be repaid in full on the repayment date.
The loans were prepaid on June 30, 2023.
The borrowing amount of JPY 3,039 thousand were prepaid on June 30, 2023.
Long-term loans includes current portion of long-term loans payable

Investment Corporation Bonds
Status of investment corporation bonds as of the end of the Reporting Period is as follows.

Bond Series

Issue DateFirst Series
Unsecured
Investment
Corporation Bonds(Note 1)
Second Series
Unsecured
Investment
Corporation Bonds(Note 1)
Third Series
Unsecured
Investment
Corporation Bonds(Note 1)Forth Series
Unsecured
Investment
Corporation Bonds(Note 1)Fifth Series
Unsecured
Investment
Corporation Bonds(Note 1)
Sixth Series
Unsecured
Investment
Corporation Bonds(Note 1)Seventh Series
Unsecured
Investment
Corporation Bonds(Note 1)
Eighth Series
Unsecured
Investment
Corporation Bonds(Note 1)
Total

(Note 1)
(Note 2)

Balance at theBalance at the Interest Rate
beginning of the
Redemption
end of the period(%)
periodDate(JPY thousand)(JPY thousand)

Redemption Use of
methodfunds

May 25, 2018

1,000,000-

0.400 May 25, 2023

(Note 2)

(Note 3)

May 25, 2018

1,000,000

1,000,000

0.800 May 25, 2028

(Note 2)

(Note 3)2,000,000

2,000,000

0.550(Note 2)

(Note 4)1,000,000

1,000,000

0.480(Note 2)

(Note 5)October 12,
2018

October 28,
2019

October 12,
2023

October 28,
2024

Security/
Guaranty

Unsecured /Unguaranteed
October 28,

2,000,000

2,000,000

0.900

March 13,2020

1,200,000

1,200,000

0.850

May 25, 2023-

5,000,000

May 25, 2023-

1,200,000

8,200,000

13,400,000

2019

October 26,(Note 2)

(Note 5)(Note 2)

(Note 4)1.000 May 25, 2026

(Note 2)

(Note 6)1.200 May 25, 2028

(Note 2)

(Note 6)

－

－

－

2029

March 13,
2030

－

－

This is with pari passu conditions among specified corporate bonds.
The Investment Corporation Bonds may be purchased and cancelled at any time after the payment date, except
for the case where the laws and regulations or the depository otherwise stipulates.

- 53 -

(Note 3)(Note 4)(Note 5)(Note 6)

4

The funds will be used to acquire trust beneficiary interest in real estate.
The funds will be used to repay borrowings.
The funds will be used in strategic capital expenditure.
The funds will be used to redeem investment corporation bonds and repay borrowings.

Short-Term Investment Corporation Bonds
Not applicable

5

Investment Unit Options
Not applicable

Acquisitions and Sales for the Reporting Period
1Acquisitions and Sales of Real Estate, Asset-Backed Securities, Infrastructure Assets andInfrastructure Related-Assets
Not applicable2

Acquisitions and Sales of Other Assets
Assets other than those described above were mostly bank deposits or bank deposits in trust.

3

Transaction Price Verification of Specified Assets
Not applicable

4

Transactions with Interested Parties(1) Transactions
Not applicable(2) Commissions Paid
Not applicable

5

Transactions between CIM and Its Other Businesses
As CIM does not engage in any other business, such as the type I financial instruments business and the type II financial
instruments business, the building lots and buildings transaction business, or the real estate specified joint enterprise,
there are no applicable transactions.

- 54 -

Financial Condition
1

Assets, Liabilities, Principal, and Profit and Loss

Please refer to “II. Balance Sheet,” “III. Statement of Income and Retained Earnings,” “IV. Statement of
Changes in Net Assets,” “V. Notes to Financial Statements” and “VI. Statement of Cash Distribution” laterin this document.
The information of previous fiscal period in Balance Sheet, Statement of Income and Retained Earnings,
Statement of Changes in Net Assets, Notes to Financial Statements, and Statement of Cash Distribution isfor reference only. It is not subject to audit by an auditor pursuant to the Article 130 of the Investment Trust
Act for the Reporting Period.
2

Changes in the Calculation Method of Depreciation
Not applicable

3

Changes in the Evaluation Method of Real Estate and Infrastructure Assets, etc.
Not applicable4

Beneficiary Certificates of Investment Trusts, etc. Set Up by the Company
Not applicable- 55 -

Other1
Notice(1) Board of Directors of Investment Corporation
Of the execution and amendment of the agreement approved by INV’s Board of Directors in the Reporting
Period, principal summary is as follows.
Approval date

May 11, 2023

2

Item

Summary

Comprehensive
resolution on issuance ofinvestment corporation
bonds

Board of Directors passed a comprehensive resolution on issuance ofinvestment corporation bonds with a maximum total issue amount of
JPY 8.0 billion and an issuance period from May 12, 2023 to June 30,2023; and entrustment of administrative duties concerning offering ofinvestment corporation bonds and general administrative duties as an
issuing agent, fiscal agent, paying agent, etc. to a prescribed generaladministrative agent.

Disclosure of Companies Owning Real Estate Overseas
Not applicable

3

Disclosure of Real Estate Owned by Companies Owning Real Estate Overseas
Not applicable

4

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

- 56 -

II.

Balance Sheet(Unit: JPY thousand)(Reference)
Fiscal period ended
December 31, 2022
(as of December 31, 2022)

AssetsCurrent assets:
Cash and bank deposits
Cash and bank deposits in trust
Rental receivables
Deposits paid
Prepaid expenses
Income taxes receivable
Other
Total current assets
Non-current assets:
Property and equipment
Buildings
Accumulated depreciation
Buildings, net
Buildings and accompanying facilities
Accumulated depreciation
Buildings and accompanying facilities, net
Structures, at cost
Accumulated depreciation
Structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Construction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Buildings and accompanying facilities in trust
Accumulated depreciation
Buildings and accompanying facilities in trust, net
Structures in trust, at cost
Accumulated depreciation
Structures in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property and equipment, net
Intangible assets
Leasehold rights
Leasehold rights in trust
Total intangible assets
Investment and other assets
Investment securities
Guarantee deposits
Long-term prepaid expenses
Derivatives assets
OthersTotal investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets- 57 -

Fiscal period ended
June 30, 2023
(as of June 30, 2023)

15,553,174
7,768,621
4,845,162
1,703,315
651,46913
5,060
30,526,816

18,377,030
10,464,171
5,750,301
542,947
821,11715
397
35,955,980

19,479,753-1,588,329
17,891,423
5,308,557-1,106,696
4,201,860
1,458
-183
1,275
1,228,513-411,059
817,453
714,997
159,079,641-26,638,315
132,441,325
32,688,012-12,614,111
20,073,900
212,818-109,514
103,304
3,195,160-1,810,584
1,384,575
241,319,447
418,949,564

19,479,753-1,807,607
17,672,145
5,311,502-1,260,171
4,051,330
1,458
-216
1,242
1,282,552-474,151
808,401
720,331
159,247,341-28,861,119
130,386,221
33,186,709-13,472,710
19,713,998
266,849-115,188
151,661
3,370,722-1,995,319
1,375,402
241,319,447
25,767416,225,951

10,637,811
14,419,422
25,057,234

10,637,811
14,380,825
25,018,637

17,856,387
1,372,719
271,704
142,841
22,667
19,666,320
463,673,119

17,856,387
1,372,719
290,589
9,306
22,667
19,551,670
460,796,259

37,84437,844494,237,781

67,69067,690496,819,930

(Unit: JPY thousand)(Reference)
Fiscal period ended
December 31, 2022
(as of December 31, 2022)

Fiscal period ended
June 30, 2023
(as of June 30, 2023)

Liabilities
Current liabilities:
Accounts payable

629,231599,562

114,515,000

111,453,000

Current portion of investment corporation bonds

3,000,000

2,000,000

Current portion of long-term loans payable

42,405,000

46,139,000

3,366

3,514

264,276

247,903

Short-term loans payable

Accounts payable-otherAccrued expenses
Income taxes payable

605

605

Consumption taxes payable

371,675

422,723

Advances received

317,350

305,914

Deposits received

13,49011,663

161,519,996

161,183,886

Total current liabilities
Non-current liabilities:
Investment corporation bonds

5,200,000

11,400,000

Long-term loans payable

75,677,000

68,198,000

Tenant leasehold and security deposits in trust

1,485,701

1,484,328

119

495,525

33,872

34,097

Derivatives liabilities
Asset retirement obligations
Total non-current liabilities

82,396,693

81,611,951

243,916,689

242,795,838

235,701,512

235,701,512

6,264,432

6,264,432-6,130-6,130

Other deduction of capital surplus-5,524,006-5,524,006

Total deduction of unitholders’ capital surplus-5,530,137-5,530,137

Total liabilities
Net assets
Unitholders’ equity:
Unitholders’ capital
Surplus:Capital surplus
Deduction of unitholders’ capital surplus
Allowance for temporary differences adjustment*2

Capital surplus, net
Retained earnings
Total surplus
Total unitholders’ equity

734,294734,294

13,742,562

17,583,734

14,476,857

18,318,029

250,178,369

254,019,541

142,7214,550

Valuation and translation adjustments:
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets*1

Total liabilities and net assets- 58 -

142,7214,550

250,321,091

254,024,091

494,237,781

496,819,930

III.

Statement of Income and Retained Earnings(Unit: JPY thousand)(Reference)
Fiscal period ended
December 31, 2022
(from July 1, 2022 to
December 31, 2022)

Operating revenue
Rental revenue – real estateManagement contract revenue
Total operating revenue
Operating expenses
Property-related expenses
Management contract expenses
Asset management fees
Directors’ compensation
Asset custody fees
Administrative service fees
Other
Total operating expenses
Operating income
Non-operating income
Interest income
Foreign exchange gains
Interest on tax refund
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance costs
Loan-related costs
Derivative losses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings

Fiscal period ended
June 30, 2023
(from January 1, 2023 toJune 30, 2023)*1*2

10,182,751
1,746,848
11,929,599

12,000,955
3,914,026
15,914,981*1*2

4,606,538
569,669
300,000
4,800
24,47550,047
117,057
5,672,588
6,257,011

4,488,341
649,329300,000
4,800
24,736
39,162
51,871
5,558,241
10,356,739

90
92
17,657
17,840100
178,185
3,821
182,107542,104
68,85928,2306,303
553,412
1,198,910
5,075,941
5,075,941
605
605
5,075,336
8,667,226
13,742,562

507,601
33,881
7,053
538,693537,269
1,624,499
8,914,347
8,914,347
605
605
8,913,742
8,669,991
17,583,734- 59 -

IV.

Statement of Changes in Net Assets(Reference) Fiscal period ended December 31, 2022 (from July 1, 2022 to December 31, 2022)(Unit: JPY thousand)Unitholders’ equity
SurplusCapital surplus
Unitholders’capitalDeduction of capital surplus
Capital surplus

Balance at the beginningof the period
Changes during theperiodDistributions fromsurplus

Allowance fortemporarydifferences
adjustment

Other
deduction ofcapital surplus

Total
deduction ofcapital surplus

Capital surplus(net)

235,701,512

6,264,432-6,130-5,524,006-5,530,137

734,294

－

－

－

－

－

－

235,701,512

6,264,432-6,130-5,524,006-5,530,137

734,294

Net income
Changes other thanunitholders’ equity(net)
Total changes during theperiodBalance at the end of theperiodUnitholders’ equity
SurplusRetainedearnings(deficit)
Balance at the beginningof the period
Changes during theperiodDistributions fromsurplus
Net income
Changes other thanunitholders’ equity(net)
Total changes during theperiodBalance at the end of theperiodTotal
surplus

Valuation and translation adjustments
Totalunitholders’equityDeferred
gains or losses
on hedges

Totalvaluation andtranslation
adjustments

96,02096,020Total
net assets

9,679,301

10,413,596

246,115,108

246,211,129-1,012,075-1,012,075-1,012,075-1,012,075

5,075,336

5,075,336

5,075,336

5,075,336
46,701

46,701

46,701

4,063,260

4,063,260

4,063,260

46,701

46,701

4,109,962

13,742,562

14,476,857

250,178,369

142,721

142,721250,321,091- 60 -

Fiscal period ended June 30, 2023 (from January 1, 2023 to June 30, 2023)(Unit: JPY thousand)Unitholders’ equity
SurplusCapital surplus
Unitholders’capitalDeduction of capital surplus
Capital surplus

Balance at the beginningof the period
Changes during theperiodDistributions fromsurplus

Allowance fortemporarydifferences
adjustment

Other
deduction ofcapital surplus

Total
deduction ofcapital surplus

Capital surplus(net)

235,701,512

6,264,432-6,130-5,524,006-5,530,137

734,294

－

－

－

－

－

－

235,701,512

6,264,432-6,130-5,524,006-5,530,137

734,294

Net income
Changes other thanunitholders’ equity(net)
Total changes during theperiodBalance at the end of theperiodUnitholders’ equity
Surplus

Balance at the beginningof the period
Changes during theperiodDistributions fromsurplus
Net income
Changes other thanunitholders’ equity(net)
Total changes during theperiodBalance at the end of theperiodValuation and translation adjustments
Totalunitholders’equityDeferred
gains or losses
on hedges

Totalvaluation andtranslation
adjustments

Total
net assets

Retainedearnings(deficit)

Total
surplus13,742,562

14,476,857

250,178,369-5,072,570-5,072,570-5,072,570-5,072,570

8,913,742

8,913,742

8,913,742

8,913,742

142,721

142,721250,321,091(138,171)(138,171)(138,171)

3,841,171

3,841,171

3,841,171(138,171)(138,171)3,703,000

17,583,734

18,318,029

254,019,541

4,550

4,550

254,024,091- 61 -

V.

Notes to Financial Statements[Notes Concerning Significant Accounting Policies](Reference)
Fiscal period ended June 30, 2023
Fiscal period ended December 31, 2022
(from January 1, 2023 to June 30, 2023)(from July 1, 2022 to December 31, 2022)
Item
1. Evaluation standards and(a) Investment in affiliates(a) Investment in affiliates
evaluation method of assets Cost method through moving-average method Cost method through moving-average method
is used.
is used.
(b) Claims generated and debt incurred(b) Claims generated and debt incurred
through derivative transactions
through derivative transactions
Market value method is used.
Market value method is used.
2. Method of depreciation of (a) Property and equipment(a) Property and equipment
non-current assets
The straight-line method is used.
The straight-line method is used.
The useful lives of major property, plant
The useful lives of major property, plantand equipment are as follows.
and equipment are as follows.
Buildings
16-50 years
Buildings
16-50 years
Buildings and accompanying facilities
Buildings and accompanying facilities
5-29 years
5-29 years
Structures
20 years
Structures
20 years
Tools, furniture and fixtures 3-18 years
Tools, furniture and fixtures 3-18 years
Buildings in trust
5-67 years
Buildings in trust
5-67 years
Buildings and accompanying facilities
Buildings and accompanying facilities
in trust
3-33 years
in trust
3-33 years
Structures in trust
7-55 years
Structures in trust
7-55 years
Tools, furniture and fixtures in trust
Tools, furniture and fixtures in trust
2-20 years
3-20 years(b) Intangible assets(b) Intangible assets
For fixed-term land lease for business
For fixed-term land lease for businesspurposes in Japan, the straight-line
purposes in Japan, the straight-line
method based on the lease period is used.
method based on the lease period is used.
(c) Long-term prepaid expenses(c) Long-term prepaid expenses
The straight-line method is used.
The straight-line method is used.
3. Accounting treatment of
Investment corporation bond issuance costs Investment corporation bond issuance costs
deferred assets
Investment corporation bond issuance costs Investment corporation bond issuance costs
are amortized using the straight-line method are amortized using the straight-line method
over a period up to redemption of theover a period up to redemption of theinvestment corporation bonds.
investment corporation bonds.
By Period

4. Method of calculatingallowances

Allowance for doubtful accounts
Allowance for doubtful accounts
To reserve for losses on doubtful accounts,
To reserve for losses on doubtful accounts,
allowances are provided for normal
allowances are provided for normal
receivables using a rate determined based
receivables using a rate determined basedon past bad debt experiences, and specificon past bad debt experiences, and specificallowances are provided for accounts with a allowances are provided for accounts with apossibility of default based on the estimated possibility of default based on the estimatedamounts considered to be uncollectible byamounts considered to be uncollectible byconsidering the collectability of accounts on considering the collectability of accounts on
an individual basis.
an individual basis.
5. Conversion of assets andReceivables and payables denominated in
Receivables and payables denominated inliabilities in foreign currency foreign currencies are translated into yen atforeign currencies are translated into yen at
into Japanese yen
the spot exchange rate at the end of thethe spot exchange rate at the end of the
fiscal period date, and differences arisingfiscal period date, and differences arisingfrom the translation are treated as a profit or from the translation are treated as a profit or
loss.
loss.
6. Revenue and expense(a) Accounting treatment of property taxes(a) Accounting treatment of property taxes
recognitionand other taxes
and other taxes
With respect to property taxes, city
With respect to property taxes, city
planning taxes and depreciable asset
planning taxes and depreciable asset
taxes, of the tax amount assessed andtaxes, of the tax amount assessed anddetermined, the amount corresponding todetermined, the amount corresponding to- 62 -

(Reference)
Fiscal period ended June 30, 2023
Fiscal period ended December 31, 2022
(from January 1, 2023 to June 30, 2023)(from July 1, 2022 to December 31, 2022)
Item
the relevant fiscal period is accounted forthe relevant fiscal period is accounted foras property related expenses.
as property related expenses.
Of the amounts paid to the seller for
Of the amounts paid to the seller for
acquisitions of real estate, the amountacquisitions of real estate, the amountequivalent to property taxes is capitalized
equivalent to property taxes is capitalized
as part of the acquisition cost of the realas part of the acquisition cost of the realestate instead of being charged as
estate instead of being charged as
expense. The amount equivalent to
expense. The amount equivalent toproperty taxes that was capitalized as
property taxes that was capitalized aspart of the acquisition cost of real estatepart of the acquisition cost of real estate
during the previous fiscal period is zero.
during the Reporting Period is zero.
(b) Recognition of revenue(b) Recognition of revenue
The following is the content of principal
The following is the content of principal
performance obligations related toperformance obligations related torevenue from contracts with INV’srevenue from contracts with INV’scustomers and the normal timing for thecustomers and the normal timing for thesatisfaction of such obligations (normal
satisfaction of such obligations (normal
timing for revenue recognition).
timing for revenue recognition).
Sale of real estate, etc.
Sale of real estate, etc.
For the sale of real estate, etc., revenue
For the sale of real estate, etc., revenue
will be recognized at the time the control
will be recognized at the time the controlof such real estate, etc. is obtained by theof such real estate, etc. is obtained by thepurchaser, who is the customer, as thepurchaser, who is the customer, as thetransfer obligation will be fulfilledtransfer obligation will be fulfilledpursuant to the contract pertaining to the
pursuant to the contract pertaining to thesale of real estate.
sale of real estate.
7. Method of hedge accounting (a) Method of hedge accounting(a) Method of hedge accounting
Deferred hedge accounting is used.
Deferred hedge accounting is used.
(b) Hedging instrument and hedged item(b) Hedging instrument and hedged item
Hedging instrument: interest rate swap
Hedging instrument: interest rate swap
Hedged item: interest on borrowings
Hedged item: interest on borrowings(c) Hedge policy(c) Hedge policy
INV enters into derivatives transactions
INV enters into derivatives transactions
for the purpose of hedging against thefor the purpose of hedging against therisks set forth in INV’s Articles ofrisks set forth in INV’s Articles ofIncorporation in accordance with its risk
Incorporation in accordance with its risk
management policy.
management policy.
(d) Method of evaluating hedge effectiveness (d) Method of evaluating hedge effectivenessHedge effectiveness is evaluated byHedge effectiveness is evaluated bycomparing the cumulative amount ofcomparing the cumulative amount ofchanges in cash flows of the hedging
changes in cash flows of the hedging
instrument and the cumulative amountinstrument and the cumulative amountof changes in cash flows of the hedgedof changes in cash flows of the hedged
item and verifying the difference in theitem and verifying the difference in theamounts of change of both the hedged
amounts of change of both the hedged
item and the hedging instrument.
item and the hedging instrument.
8. Other significant matters(1) Accounting treatment policy of trust(1) Accounting treatment policy of trust
which constitute the basis
beneficiary interests in real estate
beneficiary interests in real estatefor preparation of financial
As to trust beneficiary interests in real
As to trust beneficiary interests in realstatements
estate, all accounts of assets andestate, all accounts of assets andliabilities within assets in trust, as wellliabilities within assets in trust, as well
as all income generated and expenses
as all income generated and expenses
incurred from assets in trust, areincurred from assets in trust, arerecorded in the relevant balance sheetsrecorded in the relevant balance sheets
and income statement accounts. Of
and income statement accounts. Of
such items, the following significant
such items, the following significant
trust assets and liabilities are shown
trust assets and liabilities are shown
separately on the balance sheet.
separately on the balance sheet.
(a) Cash and bank deposits in trust(a) Cash and bank deposits in trust(b) Buildings in trust(b) Buildings in trust
By Period- 63 -

By Period
Item(Reference)
Fiscal period ended June 30, 2023
Fiscal period ended December 31, 2022
(from January 1, 2023 to June 30, 2023)(from July 1, 2022 to December 31, 2022)
Buildings and accompanying
Buildings and accompanying
facilities in trust
facilities in trust
Structures in trust
Structures in trust
Tools, furniture and fixtures in trust
Tools, furniture and fixtures in trust
Land in trust
Land in trust(c) Leasehold rights in trust
Construction in progress in trust(d) Tenant leasehold and security(c) Leasehold rights in trust
deposits in trust(d) Tenant leasehold and security(2) Accounting treatment of non-deductible
deposits in trust
consumption taxes(2) Accounting treatment of non-deductible
Non-deductible consumption taxes etc.
consumption taxes
regarding the acquisition of assets are
Non-deductible consumption taxes etc.
capitalized at amounts of acquisition
regarding the acquisition of assets arecost of each asset.
capitalized at amounts of acquisition
cost of each asset.

[Notes on Material Accounting Estimates](Reference) Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)
1. Valuation of non-current assets(1) Amount recorded in the financial statements for theprevious fiscal period(JPY thousand)Impairment loss
Non-current assets
443,291,801(Rental properties)
Although no impairment loss was recorded in the fiscal
period ended December 31, 2022, we recognize it as adisclosure item in view of the risk of having a significant
impact on the financial statements for the next fiscal period.
(2) Information about the content of material accounting
estimates for the identified item
We determine whether or not there are any signs of possible
impairment pertaining to rental properties owned by INV.
If there are any signs, we determine whether or not INV
should recognize the impairment loss. No impairment
loss was recognized for INV’s rental properties, since future
cash flows before discounting exceed the book value ofrental properties.
In estimating future cash flows, we assume that the businessenvironment will recover in earnest from 2023 onwards,
since the adverse effect by the COVID-19 infection is
gradually showing signs of abating.
However, it isdifficult to accurately predict when the businessenvironment will recover and how much the impacts will
be. Changes in the infection status may affect the above
estimates and INV may incur impairment loss.

- 64 -

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)
Not applicable[Notes to the Balance Sheet](Reference) Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)*1. Minimum net assets as required by Article 67, Paragraph
4 of the Act on Investment Trusts and Investment
Corporations
JPY 50,000 thousand*2. Allowance for temporary differences adjustment

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)*1. Minimum net assets as required by Article 67, Paragraph
4 of the Act on Investment Trusts and Investment
Corporations
JPY 50,000 thousand(Reference) Fiscal period December 31, 2022 (from July 1, 2022 to December 31, 2022)
1. Reasons, related assets and amounts(Unit: JPY thousand)Relatedassets, etc.

ReasonLeaseholdrights intrust

Amortization ofleasehold rights

Initial amount

Total

Balance at the
beginning of
periodAllowance
set aside
duringperiodReversalduringperiodBalance at theend of period-131,332-6,130---6,130-131,332-6,130---6,1302. Method of reversal(1) Leasehold rights in trust
The corresponding amount is scheduled to be reversed upon sale of the relevant properties, etc.
Fiscal period ended ended June 30, 2023 (from January 1, 2023 to June 30, 2023)
1. Reasons, related assets and amounts(Unit: JPY thousand)Relatedassets, etc.

ReasonLeaseholdrights intrust

Amortization ofleasehold rights

Total

Initial amount

Balance at the
beginning of
periodAllowance
set aside
duringperiodReversalduringperiodBalance at theend of period-131,332-6,130---6,130-131,332-6,130---6,1302. Method of reversal(1) Leasehold rights in trust
The corresponding amount is scheduled to be reversed upon sale of the relevant properties, etc.

- 65 -

[Notes to Statement of Income and Retained Earnings](Reference) Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)*1. Real estate rental revenues and expenses(Unit: JPY thousand)
A. Real estate rental revenues*1. Real estate rental revenues and expenses(Unit: JPY thousand)
A. Real estate rental revenues

Rental revenue – real estate(Rent/common area charges) (Note)(Other revenues)
Total

Rental revenue – real estate
10,037,349(Rent/common area charges) (Note)

145,401
10,182,751

12,000,955

Total
B. Real estate rental expenses

Property-related expenses

Property-related expenses(Maintenance costs)

426,784(Maintenance costs)

445,723(Taxes and public dues)

739,194(Taxes and public dues)

596,132(Insurance expenses)

20,233(Insurance expenses)

20,475(Depreciation expenses)

3,323,690(Depreciation expenses)

3,311,017(Other expenses)
Total

96,634(A-B)(Note) Of which, revenue from variable
hotel rents

Management contract revenue andexpenses (C-D)

4,488,341

Total
C. Real estate rental income

5,576,212
3,118,811*2. Management contract revenue and expenses(Unit: JPY thousand)Hotel operating revenue
Hotel operating expenses
Management contract revenue (A-B)
Management contract expenses
Non-life insurance expenses
Depreciation expenses
Other
Total

114,992(Other expenses)

4,606,538

C. Real estate rental incomeE.

271,259(Other revenues)

B. Real estate rental expenses

A.
B.
C.
D.

11,729,696

5,096,139
3,349,290
1,746,848(Note) Of which, revenue from variable
hotel rents

4,615,327*2. Management contract revenue and expenses(Unit: JPY thousand)
A.
B.
C.
D.

136,505
432,613550
569,669
1,177,179

7,512,613

(A-B)

E.

8,388,052
4,474,026
3,914,026

Hotel operating revenue
Hotel operating expenses
Management contract revenue (A-B)
Management contract expenses
Non-life insurance expenses
Depreciation expenses
Other
Total

152,464
435,496
61,368649,329

Management contract revenue andexpenses (C-D)

3,264,696[Notes to Statement of Changes in Net Assets](Reference) Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Total number of issuable investment units and number ofinvestment units issued and outstanding

Total number of issuable investment units and number ofinvestment units issued and outstanding

Total number of investment units authorized 10,000,000 units

Total number of investment units authorized 10,000,000 units

Total number of investment units issued andoutstanding

Total number of investment units issued andoutstanding

6,096,840 units- 66 -

6,096,840 units

[Notes Related to Tax Accounting](Reference) Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

1. Significant components of deferred tax assets and liabilities(Unit: JPY thousand)(Deferred tax assets)
Enterprise tax payable615

1. Significant components of deferred tax assets and liabilities(Unit: JPY thousand)(Deferred tax assets)
Enterprise tax payable
615

Buildings and other (merger)

186,398

Buildings and other (merger)

185,229

Land (merger)

116,724

Land (merger)

116,724

Loss carried forward (Note 1)

1,609,063

Loss carried forward (Note 1)

1,288,595

Asset retirement obligations

10,656

Asset retirement obligations

10,727

Amortization of leasehold right
Adjustment of acquisition prices(overseas properties)
Subtotal
Valuation allowance for tax loss
carried forward
Valuation allowance for the total of
deductible temporary differences,
etc.
Subtotal (Note 2)

162,054

Amortization of leasehold right
Adjustment of acquisition prices(overseas properties)
Subtotal
Valuation allowance for tax loss
carried forward
Valuation allowance for the total of
deductible temporary differences,
etc.
Subtotal (Note 2)

174,196

449,589
2,535,101-1,609,063-926,038-2,535,101

445,643
2,221,732-1,288,595-933,137-2,221,732

Total- Total(Note 1) The amounts of tax loss carried forward and the (Note 1) The amounts of tax loss carried forward and thedeferred tax assets by carry-forward period are asdeferred tax assets by carry-forward period are as
follows.
follows.
(Unit: JPY thousand)(Unit: JPY thousand)Tax loss carriedforward (a)Valuation
allowance
Deferred tax
assetsTax loss carriedforward (a)Valuation
allowance
Deferred tax
assetsDue
withinone year

Due after
one to twoyears

Due after
two tothree years

330,700

-

-

-

-

-

-

-

-330,700---

Due after
four tofive years

Due after
five years

Total

-

1,278,362

1,609,063--1,278,362-1,609,063

-

-

-

Due after
three tofour years
Tax loss carriedforward (a)Valuation
allowance
Deferred tax
assetsTax loss carriedforward (a)Valuation
allowance
Deferred tax
assetsDue
withinone year

Due after
one to twoyears

Due after
two tothree years

Due after
three tofour years

-

-

-

-

-

-

-

-

-

-

-

-

Due after
four tofive years

Due after
five years

Total

-

1,288,595

1,288,595--1,288,595-1,288,595

-

-

-

(a) Tax loss carried forward is multiplied by statutory tax rate.
(Note 2) Valuation allowance decreased by JPY 182,915
thousand mainly due to a decrease in tax loss carriedforward.
2. Significant difference between statutory tax rate and theeffective tax rate
Statutory tax rate
31.46%(a) Tax loss carried forward is multiplied by statutory tax rate.
(Note 2) Valuation allowance decreased by JPY 313,369
thousand mainly due to a decrease in tax loss carriedforward.
2. Significant difference between statutory tax rate and theeffective tax rate
Statutory tax rate
31.46%

Deductible cash distributions-31.44%

Deductible cash distributions-31.50%Changes in valuation allowance-3.60%

Changes in valuation allowance-3.52%

Expiration of loss carried forward

3.58%

Expiration of loss carried forward

3.55%

Others0.01%

Others0.01%

Effective tax rate

0.01%

Effective tax rate

0.01%

- 67 -

[Notes Related to Financial Instruments](Reference) Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

1. Status of financial instruments

1. Status of financial instruments(1) Policy for financial instruments(1) Policy for financial instruments

INV principally conducts its operations throughinvestments in real estate and other specified assets to seek
to ensure stable income in the medium to long term.
The policy for raising funds is principally through issuing
new investment units, investment corporation bonds, orborrowing loans.
Derivative transactions are to be entered into for the
purpose of hedging against the risks of future interest rate
fluctuations, exchange rate fluctuations, etc. and not for
speculation.
Surplus funds are managed after carefully taking into
account safety, liquidity, the interest rate environment andfinancing.
(2) Nature and extent of risks arising from financial
instruments and risk management.

INV principally conducts its operations throughinvestments in real estate and other specified assets to seek
to ensure stable income in the medium to long term.
The policy for raising funds is principally through issuing
new investment units, investment corporation bonds, orborrowing loans.
Derivative transactions are to be entered into for the
purpose of hedging against the risks of future interest rate
fluctuations, exchange rate fluctuations, etc. and not for
speculation.
Surplus funds are managed after carefully taking into
account safety, liquidity, the interest rate environment andfinancing.
(2) Nature and extent of risks arising from financial
instruments and risk management.

The funds raised through borrowings and issuinginvestment corporation bonds are mainly used to acquire
real estate properties or trust beneficiary interest in realestate (including related acquisition costs) and for therefinancing of existing loans. Liquidity risks relating toloan are managed by the finance department of CIM by
preparing and updating plans for funds, and monitoring
the covenants set forth in loan agreements.
(3) Supplemental information regarding fair value, etc. forfinancial instruments.
Since certain assumptions, etc. are used in estimating thefair value of financial instruments, different assumptions,etc. may result in the variance of such value.

- 68 -

The funds raised through borrowings and issuinginvestment corporation bonds are mainly used to acquire
real estate properties or trust beneficiary interest in realestate (including related acquisition costs) and for therefinancing of existing loans. Liquidity risks relating toloan are managed by the finance department of CIM by
preparing and updating plans for funds, and monitoring
the covenants set forth in loan agreements.
(3) Supplemental information regarding fair value, etc. forfinancial instruments.
Since certain assumptions, etc. are used in estimating thefair value of financial instruments, different assumptions,etc. may result in the variance of such value.

2. Estimated fair value of financial instruments.
Book value, fair value and the difference between value asof December 31, 2022 are as follows. “Cash and bankdeposits”, “Cash and bank deposits in trust” and “Shortterm loans payable” are omitted because their fair values
are close to their book values since they are settled in cash
and in a short period of time. Moreover, “Tenantleasehold and security deposits in trust” is omitted because
they are not material.
(Unit: JPY thousand)2. Estimated fair value of financial instruments.
Book value, fair value and the difference between value asof June 30, 2023 are as follows. “Cash and bank deposits”,“Cash and bank deposits in trust” and “Short-term loans
payable” are omitted because their fair values are close to
their book values since they are settled in cash and in ashort period of time. Moreover, “Tenant leasehold andsecurity deposits in trust” is omitted because they are notmaterial.
(Unit: JPY thousand)Book Value

Fair Value

DifferenceBook Value

Fair Value

Difference

17,856,387

17,553,373-303,014

17,856,387

18,935,791-1,079,404

17,856,387

17,553,373-303,014

17,856,387

18,935,791-1,079,404(2,000,000)(1,996,000)

4,000(46,139,000)(46,139,000)-(11,400,000)(11,166,860)

233,140(68,198,000)(68,198,000)-(127,737,000) (127,499,860)

237,140(1) Investment
securities
Total assets(2) Current portion of
Investment
Corporation Bonds(3) Current portion of
long-term loans
payable(4) Investment
corporation bonds(3,000,000)(2,970,200)

29,800(42,405,000)(42,405,000)-(5,200,000)(4,734,340)

465,660(1) Investment
securities
Total assets(2) Current portion of
Investment
Corporation Bonds(3) Current portion of
long-term loans
payable(4) Investment
corporation bonds(5) Long-term loans(75,677,000)(75,677,000)-(5) Long-term loans

Total liabilities(126,282,000)(125,786,540)

495,460

Total liabilities

142,721

142,721-(6) Derivatives(6) Derivatives(486,218)(486,218)-(*1) Items recorded in the Liabilities Section are shown inparenthesis.

(*1) Items recorded in the Liabilities Section are shown inparenthesis.

(*2) Receivables and payables arising from derivativetransactions are recorded in net amounts, and if the total
net amount is a negative amount, such amount is shownin parenthesis.

(*2) Receivables and payables arising from derivativetransactions are recorded in net amounts, and if the total
net amount is a negative amount, such amount is shownin parenthesis.

(Note 1) Methods to calculate fair value of financial
instruments.
(1) Investment securities
For preferred equity interest, the assets and liabilities of theinvestee are valued at fair value, and the equity equivalent in
the obtained net asset value is deemed as the fair value of thepreferred equity interest.

(Note 1) Methods to calculate fair value of financial
instruments.
(1) Investment securities
For preferred equity interest, the assets and liabilities of theinvestee are valued at fair value, and the equity equivalent in
the obtained net asset value is deemed as the fair value of thepreferred equity interest.

(2) Current portion of Investment Corporation Bonds (4)Investment corporation bonds
Fair value is calculated using a method based on market price.

(2) Current portion of Investment Corporation Bonds (4)Investment corporation bonds
Fair value is calculated using a method based on market price.

(3) Current portion of long-term loans payable (5) Long-term (3) Current portion of long-term loans payable (5) Long-termloans payableloans payable
Long-term loans with floating interest rates reflecting changes Long-term loans with floating interest rates reflecting changes
in market rates within a short-term period are stated at theirin market rates within a short-term period are stated at theirbook value as their book value approximate their fair value.
book value as their book value approximate their fair value.

- 69 -

(6) Derivatives(a) Derivatives transactions to which hedge accounting is
not applied
Not applicable(6) Derivatives(a) Derivatives transactions to which hedge accounting is
not applied
As for derivative transactions for which hedge
accounting is not applied, the contract amount as of
the closing date and the amount equivalent to thenotional principal prescribed in the contract are as
follows.
(Unit: JPY thousand)
Derivative

Contract amount, etc.
Amount due

Classification transaction

after

type, etc.

Fair value

Valuation(*1)

gains/losses-490,769-490,769

one year
Currency
OTC

optiontransaction

transaction

5,158,490 1,872,600

short USD(b) Derivatives transactions to which hedge accounting isappliedThe contract amount as of the closing date under eachhedge-accounting method and the amount equivalent
to the notional principal prescribed in the contracts are
as shown below.

(*1) Estimation method for fair value
Currency option:
Indicates fair values of option fees, etc. presented by
the correspondent financial institutions.
(b) Derivatives transactions to which hedge accounting isappliedThe contract amount as of the closing date under eachhedge-accounting method and the amount equivalent
to the notional principal prescribed in the contracts are
as shown below.

(Unit: JPY thousand)(Unit: JPY thousand)Contract amount, etc.
Method of Derivativehedge

transaction

accounting

type, etc.

Primary(*1)
Amount due

hedged item

afterContract amount, etc.
Fair value(*2)

Method of Derivativehedge

transaction

accounting

type, etc.

Primary(*1)
Amount due

hedged item

after

one yearaccounting
methodInterest rate

swap
Receivefloating(*2)

one yearInterest rate
Principle

Fair value

Principle
Borrowings

50,476,000

36,687,000

142,721accounting
methodrate/pay
fixed rate

swap
Receivefloating

Borrowings

36,687,000

18,441,000

4,550

rate/pay
fixed rate(*1) The contract amount, etc. for interest rate swap arestated based on a notional principal.
(*2) Estimation method for fair value
Interest rate swap:
Estimated based on the price, etc. presented by thecorrespondent financial institutions.

- 70 -(*1) The contract amount, etc. for interest rate swap arestated based on a notional principal.
(*2) Estimation method for fair value
Interest rate swap:
Estimated based on the price, etc. presented by thecorrespondent financial institutions.

(Note 2) Repayment schedule of investment corporation
bonds, long-term loans payable and other interestbearing debts after the closing date of the fiscal
period(Note 2) Repayment schedule of investment corporation
bonds, long-term loans payable and other interestbearing debts after the closing date of the fiscal
period(Unit: JPY thousand)Current portion of
Investment Corporation
Bonds
Current portion of longterm loans payable
Investment corporationbonds

Due after one Due after two
to two years to three years

3,000,000--

42,405,000

-

-

-

1,000,000--

34,127,000

39,399,000

Long-term loans payable

45,405,000

35,127,000

39,399,000

Total

Long-term loans payable
Total(Unit: JPY thousand)Due within
one year

Current portion of
Investment Corporation
Bonds
Current portion of longterm loans payable
Investment corporationbonds

Due after three Due after four Due after five
to four years to five years
years
Current portion of
Investment Corporation
Bonds
Current portion of longterm loans payable
Investment corporation
bonds

-

-

-

-

-

-

-

-

4,200,000

Long-term loans payable-

1,190,000

961,000

Total-

1,190,000

5,161,000

Due within
one year

Due after one Due after two
to two years to three years

2,000,000--

46,139,000

-

-

-

1,000,000

5,000,000-

42,243,000

23,804,000

48,139,000

43,243,000

28,804,000

Due after three Due after four Due after five
to four years to five years
years
Current portion of
Investment Corporation
Bonds
Current portion of longterm loans payable
Investment corporation
bonds

-

-

-

-

-

-

-

2,200,000

3,200,000

Long-term loans payable-

1,190,000

961,000

Total-

3,390,000

4,161,000[Notes Related to Asset Retirement Obligations](Reference) Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

1. Summary of the asset retirement obligations for the period
INV has recorded asset retirement obligations in regard to
its obligation to restore the land to its original condition
related to the fixed-term land lease agreement of Comfort
Hotel Maebashi held by INV.
2. Calculation method for asset retirement obligations for theperiodThe amount of the asset retirement obligations has been
calculated by fixing the estimated period of use at 43 years,
based on the period until the expiration of the fixed-term
land lease agreement, and by using a discount rate of
1.342%.
3. Increase/decrease in the total amount of asset retirement
obligations for the end of the period(Unit: JPY thousand)

1. Summary of the asset retirement obligations for the period
INV has recorded asset retirement obligations in regard to
its obligation to restore the land to its original condition
related to the fixed-term land lease agreement of Comfort
Hotel Maebashi held by INV.
2. Calculation method for asset retirement obligations for theperiodThe amount of the asset retirement obligations has been
calculated by fixing the estimated period of use at 43 years,
based on the period until the expiration of the fixed-term
land lease agreement, and by using a discount rate of
1.342%.
3. Increase/decrease in the total amount of asset retirement
obligations for the end of the period(Unit: JPY thousand)

Balance at the beginning of the period
Increase due to the acquisition of properties
Accretion expense
Balance at the end of the period

33,644
227
33,872- 71 -

Balance at the beginning of the period
Increase due to the acquisition of properties
Accretion expense
Balance at the end of the period

33,872
225
34,097

[Notes Related to Rental Properties](Reference) Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

INV owns residential properties and hotels as core assets
principally in the Greater Tokyo area and major regional
cities with an aim to establish a portfolio focusing on bothstability and growth potential. The book value changed
during the period and the fair value at the end of the period
are as follows.

INV owns residential properties and hotels as core assets
principally in the Greater Tokyo area and major regional
cities with an aim to establish a portfolio focusing on bothstability and growth potential. The book value changed
during the period and the fair value at the end of the period
are as follows.

(Unit: JPY thousand)(Unit: JPY thousand)Book value

Use

Fair value atBalance at theBalance at the the end of the
Change during
periodbeginning of
end of thethe period
the period
periodBook value

Use

Fair value atBalance at theBalance at the the end of the
Change during
periodbeginning of
end of thethe period
the period
periodResidences

34,567,566-184,066

34,383,500

47,357,000

Residences

34,383,500-172,720

34,210,779

48,017,000

Commercial
facilities

1,621,984-16,661

1,605,322

2,380,000

Commercial
facilities

1,605,322-16,598

1,588,724

2,380,000

Hotels409,587,102-2,284,122

407,302,979

482,833,730

Hotels407,302,979-2,603,993 404,698,985

510,566,211

Total

445,776,652-2,484,850

443,291,801

532,570,730

Total

443,291,801-2,793,312 440,498,489

560,963,211(Note 1) Book value is the figure calculated by subtracting
amount of accumulated depreciation fromacquisition price (including acquisition-related
costs).
(Note 2) The major factors for the increase for the previous
fiscal period were construction work related tocapital expenditures.
(Note 3) The major factors of the decrease were sale ofresidences and depreciation.
(Note 4) The fair value at the end of the previous fiscal period
is determined based on the appraisal value or survey
value provided by Asset Research and Development
Inc., Japan Real Estate Institute, JLL Morii
Valuation & Advisory K.K., The Tanizawa Sogo
Appraisal Co., Ltd., Daiwa Real Estate Appraisal
Co., Ltd. and CBRE, Inc.
For information related to profits and losses from rental
properties in the previous fiscal period, please refer to“Notes to Statement of Income and Retained Earnings.”(Note 1) Book value is the figure calculated by subtracting
amount of accumulated depreciation fromacquisition price (including acquisition-related
costs).
(Note 2) The major factors for the increase for the Reporting
Period were construction work related to capital
expenditures.
(Note 3) The major factor of the decrease was depreciation.
(Note 4) The fair value at the end of the Reporting Period isdetermined based on the appraisal value or survey
value provided by Asset Research and Development
Inc., Japan Real Estate Institute, JLL Morii
Valuation & Advisory K.K., The Tanizawa Sogo
Appraisal Co., Ltd., Daiwa Real Estate Appraisal
Co., Ltd. and CBRE, Inc.
For information related to profits and losses from rental
properties in the Reporting Period, please refer to “Notes toStatement of Income and Retained Earnings.”[Notes Related to Restriction on Asset Management](Reference) Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Not applicable.

Not applicable.

- 72 -

[Notes Related to Transactions with Related Parties](Reference) Fiscal period ended December 31, 2022 (from July 1, 2022 to December 31, 2022)
1

Interested parties of CIM
NameBusiness or occupation

Percentage ofvoting rights
owned
(%)

Type of transaction

Transaction
amount(JPY thousand)(Note 1)

Account

Balance at the end of
the period(JPY thousand)(Note 1)Naqua Hotel &Resorts
Management Co.,
Ltd.
(Note 2)Hotelbusiness-

Rental revenues

1,152,194

Accounts
receivable

404,531

MyStays HotelManagement Co.,
Ltd.
(Note 2)Hotelbusiness-

Rental revenues

5,771,441

Accounts
receivable

3,864,932

Classification

Interested
party of CIM(Note 1)
(Note 2)2

Consumption taxes, etc., are not included in transaction amounts, but are included in the balance at the end of the period.
Naqua Hotel & Resorts Management Co., Ltd. and MyStays Hotel Management Co., Ltd. have no capital relationship to be disclosedwith CIM. However, these tenants and operators have received an anonymous partnership investment or investment through funds thatare managed by affiliates of FIG (a subsidiary of SoftBank Group Corp., which is a parent company of CIM directly/indirectly owning
100% of its issued shares). Accordingly, INV treats Naqua Hotel & Resorts Management Co., Ltd. and MyStays Hotel Management
Co., Ltd. as the equivalent to interested parties.

Asset Custody Company
Classification

Asset CustodyCompany

Name

Sumitomo Mitsui
Trust Bank,
LimitedBusiness or
occupation

Banking andtrust business

Percentage ofinvestment
units owned(%)

Type of transaction
Borrowing of
short-term loan
Repayment ofshort-term loan
Repayment oflong-term loan-

Transaction
amount(JPY thousand)(Note 1)
7,408,500
5,018,500
2,390,000

Account

Balance at theend of the period(JPY thousand)(Note 1)

Short-termloans payable

17,373,000

Long-termloans payable

17,358,000

Prepaid expenses

51,418Finance-related fees
(Note 2)

22,264Long-term
prepaid expenses

27,152

Interest expenses(Note 2)

79,062 Accrued expenses

847(Note 1) Consumption taxes, etc., are not included in transaction amounts, but are included in the balance at the end of the period.
(Note 2) The terms and conditions have been determined based on actual market conditions.

- 73 -

Fiscal period ended June 30, 2023 (from January 1, 2023 to June 30, 2023)
1

Interested parties of CIM

Classification

Name

Business or occupation

Percentage ofvoting rights
owned
(%)

Type of transaction

Transaction
amount(JPY thousand)(Note 1)

Account

Balance at the end of
the period(JPY thousand)(Note 1)Naqua Hotel &Resorts
Hotel
RentalManagement
Rental revenues
612,959
261,128
business
receivables
Co., Ltd.
Interested(Note 2)
party of CIM
MyStays HotelManagement
Hotel
RentalRental revenues
8,022,489
3,227,566
Co., Ltd.
business
receivables(Note 2)
(Note 1) Consumption taxes, etc., are not included in transaction amounts, but are included in the balance at the end of the period.
(Note 2) Naqua Hotel & Resorts Management Co., Ltd. and MyStays Hotel Management Co., Ltd. have no capital relationship to be disclosedwith CIM. However, these tenants and operators have received an anonymous partnership investment or investment through funds thatare managed by affiliates of FIG (a subsidiary of SoftBank Group Corp., which is a parent company of CIM indirectly owning 100% of
its issued shares). Accordingly, INV treats Naqua Hotel & Resorts Management Co., Ltd. and MyStays Hotel Management Co., Ltd.
as the equivalent to interested parties.

2 Asset Custody Company
Classification

Asset CustodyCompany

Name

Sumitomo Mitsui
Trust Bank,
LimitedBusiness or
occupation

Banking andtrust business

Percentage ofinvestment
units owned(%)

Type of transaction
Borrowing of
short-term loan
Repayment ofshort-term loan
Borrowing of
long-term loan
Repayment oflong-term loan-

Transaction
amount(JPY thousand)(Note 1)
9,092,600
10,711,500
4,824,500
3,952,600

Account

Balance at theend of the period(JPY thousand)(Note 1)

Short-termloans payable

15,754,100

Long-termloans payable

18,229,900

Prepaid expenses

69,162Finance-related fees
(Note 2)

95,780Long-term
prepaid expenses

49,559Interest expenses(Note 2)74,705 Accrued expenses

400(Note 1) Consumption taxes, etc., are not included in transaction amounts, but are included in the balance at the end of the period.
(Note 2) The terms and conditions have been determined based on actual market conditions.

- 74 -

[Notes Related to Per Unit Information](Reference) Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Net assets per unit

JPY 41,058

Net assets per unit

JPY 41,665

Net income per unit

JPY 832

Net income per unit

JPY 1,462

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

The basis for calculating net income per unit is as follows.

(Reference) Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)
Net income for the period (JPY thousand)Amounts not attributable to common unitholders(JPY thousand)Net income attributable to common units(JPY thousand)Average number of investment units during theperiod (units)

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

5,075,336
5,075,336
6,096,840- 75 -Net income for the period (JPY thousand)Amounts not attributable to common unitholders(JPY thousand)Net income attributable to common units(JPY thousand)Average number of investment units during theperiod (units)

8,913,742
8,913,742
6,096,840

[Notes Related to Revenue Recognition](Reference) Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

1. Breakdown of revenue from contracts with customers

1. Breakdown of revenue from contracts with customers(Unit: JPY thousand)Sale of realestate, etc.
Other
Total

Revenue fromcontracts withcustomers (Note 1)

Net sales to externalcustomers--

31,966
31,966

11,929,599
11,929,599(Unit: JPY thousand)
Revenue fromcontracts withcustomers (Note 1)
Sale of realestate, etc.
Other
Total

Net sales to externalcustomers--

27,64527,645

15,914,981
15,914,981(Note 1) Revenue from the leasing business subject to the“Accounting Standard for Lease Transactions” (ASBJ
Statement No. 13), dividend income subject to the“Accounting Standard for Financial Instruments”(ASBJ Statement No. 10) and the sale of real estate,etc. subject to the “Practical Guidelines on Accounting
by Transferors for Securitization of Real Estate Using
Special Purpose Companies” (Accounting System
Committee Report No. 15 of the Japanese Institute ofCertified Public Accountants) are not included in“Revenue from contracts with customers” as they are
not covered by the Accounting Standard for Revenue
Recognition. Major revenue from contracts withcustomers is proceeds from sale of real estate
properties.

(Note 1) Revenue from the leasing business subject to the“Accounting Standard for Lease Transactions” (ASBJ
Statement No. 13), dividend income subject to the“Accounting Standard for Financial Instruments”(ASBJ Statement No. 10) and the sale of real estate,etc. subject to the “Practical Guidelines on Accounting
by Transferors for Securitization of Real Estate Using
Special Purpose Companies” (Accounting System
Committee Report No. 15 of the Japanese Institute ofCertified Public Accountants) are not included in“Revenue from contracts with customers” as they are
not covered by the Accounting Standard for Revenue
Recognition. Major revenue from contracts withcustomers is proceeds from sale of real estate
properties.

2. Information utilized as the basis for understanding revenue
from contracts with customers
The information is as described in “Notes Concerning
Significant Accounting Policies” above.

2. Information utilized as the basis for understanding revenue
from contracts with customers
The information is as described in “Notes Concerning
Significant Accounting Policies” above.

3. Information on relationship of fulfillment of performance
3. Information on relationship of fulfillment of performanceobligations based on contracts with customers with cashflow
obligations based on contracts with customers with cashflow
generated from said contracts as well as amount of revenue
generated from said contracts as well as amount of revenue
and period expected to be recognized in the next calculationand period expected to be recognized in the next calculation
period or thereafter from contracts with customers existing
period or thereafter from contracts with customers existingat the end of the previous fiscal period
at the end of the Reporting Period(1) Balance of contract assets and contract liabilities, etc.
(1) Balance of contract assets and contract liabilities, etc.
(Unit: JPY thousand)(Unit: JPY thousand)Fiscal period ended
December 31, 2022

Fiscal period ended
June 30, 2023

Claims generated from contracts with customers(balance at the beginning of the period)

2,250

Claims generated from contracts with customers(balance at the beginning of the period)

4,231

Claims generated from contracts with customers(balance at the end of the period)

4,231

Claims generated from contracts with customers(balance at the end of the period)

3,093

Contract assets(balance at the beginning of the period)-

Contract assets(balance at the beginning of the period)-

Contract assets(balance at the end of the period)-

Contract assets(balance at the end of the period)-

Contract liabilities(balance at the beginning of the period)-

Contract liabilities(balance at the beginning of the period)-

Contract liabilities(balance at the end of the period)-

Contract liabilities(balance at the end of the period)-(2) Transaction value allocated to remaining performanceobligations
Not applicable(2) Transaction value allocated to remaining performanceobligations
Not applicable- 76 -

[Notes Related to Significant Subsequent Events](Reference) Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

Not applicable

1. Issuance of new investment units
INV resolved at its meetings of the Board of Directors
held on July 19, 2023 and July 25, 2023 respectively to
conduct the issuance of new investment units andsecondary offering of investment units. Payment for the
new investment units issued through the public offering
was completed on July 31, 2023, in accordance with thefollowing terms and conditions.
As a result, theunitholders’ capital of INV is JPY 268,463 million andthe number of investment units issued and outstanding of
INV increased to 6,706,632.
(1) Issuance of new investment units through public
offering
Number of investment units
offeredOf whichdomestic public offering
overseas offering
Issue price (offer price)
Total issue price (total offer
price)
Paid amount (issue value)
Total paid amount(total issue value)
Payment date:609,792 investment units:::

353,680 investment units
256,112 investment units
JPY 55,566 per unit
JPY 33,883,702,272::

JPY 53,726 per unit
JPY 32,761,684,992:

July 31, 2023

(2) Secondary offering of investment units (over-allotment
secondary offering)Number of Investment Units
offered in the secondaryoffering
Offer priceTotal offer price
Delivery date:

30,489 investment units:::

JPY 55,566 per unit
JPY 1,694,151,774
August 1, 2023

(3) Issuance of new investment units through third-party
allotment (Note 1)
Number of investment units
offeredAmount to be paid
(issue value)
Total paid amount(total issue value)
Payment date
Allottee:

30,489 investment units:

JPY 53,726 per unit:

JPY 1,638,052,014::

August 28, 2023
Mizuho Securities Co.,
Ltd.

(Note 1) In relation to the overallotment secondary offering,the investment units will be issued for the purposeof allowing Mizuho Securities Co., Ltd. to acquire
investment units required for returning theborrowed investment units. Consequently, there
may be cases where there will be no application forwhole or part of the investment units to be issued
through the third-party allotment, resulting in a

- 77 -

(Reference) Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)
commensurate shortfall in the ultimate number ofinvestment units to be issued through the third-party
allotment, due to forfeiture, or there may be cases
where such issuance itself will not take place at all.

2. Debt Financing
In order to fund a portion of the acquisition price for six
hotel properties (domestic real estate trust beneficiaryinterests) acquired on August 1, 2023, INV resolved thefollowing debt financing at a meeting of the Board of
Directors held on July 19, 2023, and entered into a loan
agreement on the same day.
New Syndicate Loan (010)
Lender: Syndicate of lenders arranged
by Mizuho Bank, Ltd.
Outstanding balance: JPY 29,856 million
Interest rate, etc.
: Base Rate (3-month JPY
TIBOR) + 0.500%, 0.300%
Base Rate (1-month JPY
TIBOR) + 0.200%
Interest payment date : The last Japanese business dayof March, June, September, andDecember before the principal
maturity date, beginning with
September 30, 2023, and theprincipal maturity date
The last Japanese business dayof each month before theprincipal maturity date,
beginning with August 31,
2023, and the principal maturity
date
Principal repayment : Lump-sum repayment
methodBorrowing method: Unsecured/ non-guarantee
Borrowing date
: August 1, 2023
Maturity date
: July 14, 2028, July 16, 2026,
August 1, 2024
3. Acquisition of assets (properties)
INV resolved acquisition of the following six hotel
properties (total acquisition price: JPY 57,230 million) on
July 19, 2023 and completed the acquisition on August 1,
2023.
Property Number: D84 Fusaki Beach Resort Hotel & Villas
Acquisition Date
: August 1, 2023
Acquisition Price (Note 1): JPY 40,293 million

Location: Ishigaki-shi, Okinawa

Completion Date

: June 1982
June 2019
March 2020
: Trust beneficiary interest

Legal Form of Asset
SellerTotal Floor Area

- 78 -: Sheffield Asset Tokutei
Mokuteki Kaisha: 23,573.57 m2

(Reference) Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)
Total Leasable Area

: 23,573.57 m2

Property Number: D85 Tateshina Grand Hotel Takinoyu
Acquisition Date
: August 1, 2023
Acquisition Price (Note 1): JPY 8,365 million

Location: Chino-shi, Nagano

Completion Date

: August 1966
July 1967
July 1988: Trust beneficiary interest

Legal Form of Asset
SellerTotal Floor Area

: Heijo Tokutei Mokuteki
Kaisha: 20,577.41 m2

Total Leasable Area

: 20,577.41 m2

Property Number: D86 Hotel MyStays Okayama
Acquisition Date
: August 1, 2023
Acquisition Price (Note 1): JPY 2,613 million

Location: Okayama-shi, Okayama

Completion Date

: March 1986

Legal Form of Asset: Trust beneficiary interest

SellerTotal Floor Area

: Nippori Tokutei Mokuteki
Kaisha: 3,023.27 m2

Total Leasable Area

: 3,023.27 m2

Property Number: D87 Hotel MyStays Aomori Station
Acquisition Date
: August 1, 2023
Acquisition Price (Note 1): JPY 2,445 million

Location: Aomori-shi, Aomori

Completion Date

: June 2007

Legal Form of Asset: Trust beneficiary interest

SellerTotal Floor Area

: Shiretoko Tokutei Mokuteki
Kaisha: 3,963.86 m2

Total Leasable Area

: 3,963.86 m2

Property Number: D88 Hotel MyStays Soga
Acquisition Date
: August 1, 2023

- 79 -

Acquisition Price (Note 1): JPY 2,039 million

Location: Chiba-shi, Chiba

Completion Date

: February 1994

Legal Form of Asset: Trust beneficiary interest

SellerTotal Floor Area

: Nippori Tokutei Mokuteki
Kaisha: 3,398.18 m2

Total Leasable Area

: 3,398.18 m2

(Reference) Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)
Property Number: D89 Tazawako Lake Resort & Onsen
Acquisition Date
: August 1, 2023
Acquisition Price (Note 1): JPY 1,475 million

Location: Senboku-shi, Akita

Completion Date

: December 1981
November 1988
: Trust beneficiary interest

Legal Form of Asset
SellerTotal Floor Area

: Heijo Tokutei Mokuteki
Kaisha: 7,289.75 m2

Total Leasable Area

: 7,289.75 m2(Note 1) Acquisition price is based on the purchase priceindicated in the relevant purchase agreement anddoes not include acquisition-related expenses,
property taxes, city planning taxes or consumption
taxes.

[Notes Related to Provision and Reversal of Allowance for Temporary Differences Adjustment](Reference) Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)
Not applicable

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)
Not applicable- 80 -

VI.

I.

Statement of Cash Distribution

Unappropriated retained
earnings
II . Distributions(Distribution per unit)
III. Retained earnings (deficit)
carried forward
Calculation method of
distribution amount(Reference)
Fiscal period ended December 31, 2022
(from July 1, 2022 to December 31, 2022)

Fiscal period ended June 30, 2023
(from January 1, 2023 to June 30, 2023)

JPY 13,742,562,778

JPY 17,583,734,499

JPY 5,072,570,880(JPY 832)

JPY 8,925,773,760(JPY 1,464)

JPY 8,669,991,898

JPY 8,669,991,898657,960,739

In accordance with the distribution policy
set forth in Article 17, Paragraph 1 of the
Articles of Incorporation of INV, thedistribution amount shall be the amountwhich does not exceed the amount of
profits but exceeds 90% of the
distributable income as defined in Article
67-15 of the Special Taxation Measures
Act.
However, in the event that any tax
losses arise, or if no profits have beenrecorded for tax purposes due to tax losses
carried forward, the distribution amount
may be as reasonably determined by INV.
Pursuant to this policy, INV determinedthe distribution amount to be JPY
5,072,570,880 out of net income of JPY
5,075,336,307. Moreover, INV does notmake excess profit distribution set forth in
Article 17, Paragraph 4 of the Articles ofIncorporation.

In accordance with the distribution policy
set forth in Article 17, Paragraph 1 of the
Articles of Incorporation of INV, thedistribution amount shall be the amountwhich does not exceed the amount of
profits but exceeds 90% of the
distributable income as defined in Article
67-15 of the Special Taxation Measures
Act.
However, in the event that any tax
losses arise, or if no profits have beenrecorded for tax purposes due to tax losses
carried forward, the distribution amount
may be as reasonably determined by INV.
Pursuant to this policy, INV determinedthe distribution amount to be JPY
8,925,773,760 which is a total of net
income of JPY 8,913,742,601 andretained earnings carried forward of JPY
12,031,159.

- 81 -

Note
Accompanying English financial information, comprising Balance Sheet, Statement of Income and Retained
Earnings, Statement of Changes in Net Assets, Notes to financial statements and Statement of CashDistribution, have been translated from the Japanese financial statements of INV prepared in accordance with
the Act on Investment Trusts and Investment Corporations of Japan.
Under Article 130 of the Act on Investment Trusts and Investment Corporations of Japan, the Japanesefinancial statements for the six months ended June 30, 2023 have been audited by Ernst & Young ShinNihon
LLC, in accordance with auditing standards generally accepted in Japan. However, English translation of
the Japanese language report of independent auditors is not attached herein since the accompanying English
translation of Balance Sheet, Statement of Income and Retained Earnings, Statements of Changes in Net
Assets, Notes to financial statements and Statement of Cash Distribution is unaudited.
Regarding the English audited financial statements, please refer to the “Audited Financial Statements” on thewebsite of Invincible Investment Corporation: https://www.invincible-inv.co.jp/en/ir/library.html- 82 -

VII. Statement of Cash Flows (Reference Information)

Fiscal period ended
December 31, 2022
(from July 1, 2022 to
December 31, 2022)(Unit: JPY thousand)Fiscal period ended
June 30, 2023
(from January 1, 2023 toJune 30, 2023)

Cash flows from operating activities
Net income before taxes
5,075,941
8,914,347
Depreciation and amortization
3,756,303
3,746,513
Amortization of investment corporation bond issuance costs
6,303
7,053
Loan-related costs
553,412538,693
Interest income
(90)
(100)
Interest expenses
570,334
541,482
Foreign exchange losses (gains)
(29)
(90)
Loss (gain) of derivatives
537,269
Decrease (increase) in rental receivables(1,448,964)(905,138)
Decrease (Increase) in deposits paid
(1,370,438)
1,160,368
Decrease (increase) in receivable income taxes(1)(1)
Increase (decrease) in accounts payable(3,505)
13,731
Increase (decrease) in consumption taxes payable
321,485
51,048
Increase (decrease) in accounts payable-other(26,469)
Increase (decrease) in accrued expenses
20,843(19,097)
Increase (decrease) in advances received(585)(11,435)
Increase (decrease) in deposits received
3,093(1,827)
Others, net(219,196)(250,984)
Subtotal
7,238,437
14,321,833
Interest income received
90100Interest expenses paid
(567,445)(538,660)
Income taxes paid
(605)
(605)
Net cash provided by operating activities
6,670,476
13,782,668
Cash flows from investing activities
Payment into time deposits(800,000)
Proceeds from time deposits
800,000
2,000,000
Purchases of property and equipment(102,499)(62,318)
Purchases of property and equipment in trust(875,748)(965,159)
Repayments of tenant leasehold and security deposits in trust(27,487)(30,246)
Proceeds from tenant leasehold and security deposits in trust
12,23928,873
Others(46,500)
Net cash used in investing activities(993,494)
924,648
Cash flows from financing activities
Proceeds from short-term loans payable
87,471,000
27,660,000
Repayments of short-term loans payable(61,091,000)(30,722,000)
Proceeds from long-term loans payable
1,790,000
12,317,000
Repayments of long-term loans payable(28,745,000)(16,062,000)
Proceeds from issuance of investment corporation bonds
6,163,101
Redemption of investment corporation bonds(1,000,000)
Borrowing related expenses(591,633)(473,134)
Payment of distributions of earnings(1,011,803)(5,070,967)
Net cash provided by (used in) financing activities(2,178,436)(7,188,001)
Effect of exchange rate change on cash and cash equivalents
29
90
Net increase (decrease) in cash and cash equivalents
3,498,574
7,519,406
Cash and cash equivalents at beginning of period
17,023,221
20,521,796*1Cash and cash equivalents at end of period
20,521,796
28,041,202(Note) Statement of cash flows is prepared based on the Regulation on the Terminology, Forms, and Preparation Methods ofFinancial Statements (Ministry of Finance Order No. 59 of 1963, as amended) and attached as reference. This
statement of cash flows is not subject to audit by an auditor pursuant to the Article 130 of the Investment Trust Act, andthus has not been audited by an auditor.

- 83 -

[Notes Concerning Significant Accounting Policies] (Reference Information)
By Period
Item
Cash and cash equivalents as stated inStatement of Cash Flows

Fiscal period ended
December 31, 2022
(from July 1, 2022 to
December 31, 2022)
Cash and cash equivalents as stated in
the Statement of Cash Flows consistof cash on hand and cash in trust,
floating deposits, deposits in trust andshort-term investments that are veryliquid and realizable with a maturityof three months or less whenpurchased and that are subject toinsignificant risks of changes invalue.

Fiscal period ended
June 30, 2023
(from January 1, 2023 toJune 30, 2023)
Cash and cash equivalents as stated in
the Statement of Cash Flows consistof cash on hand and cash in trust,
floating deposits, deposits in trust andshort-term investments that are veryliquid and realizable with a maturityof three months or less whenpurchased and that are subject toinsignificant risks of changes invalue.

[Notes to Statement of Cash Flows] (Reference Information)
By Period
Item*1. Relationship between cash andcash equivalents in Statement of
Cash Flows and amounts inaccompanying balance sheet

Fiscal period ended
December 31, 2022
(from July 1, 2022 to
December 31, 2022)(As of December 31, 2022)(Unit: JPY thousand)Cash and bank
15,553,174
deposits
Cash and bank7,768,621
deposits in trust
Time deposits withover three months(2,800,000)
deposit period
Cash and cash
20,521,796
equivalents

Fiscal period ended
June 30, 2023
(from January 1, 2023 toJune 30, 2023)(As of June 30, 2023)(Unit: JPY thousand)Cash and bank
18,377,030
deposits
Cash and bank
10,464,171
deposits in trust
Time deposits withover three months(800,000)
deposit period
Cash and cash
28,041,202
equivalents“My Number” is issued to all citizens and residents of Japan and is necessary for taxation purposes oninvestment units. Thus, it is necessary for unitholders to notify their brokerage with their “My
Number.”Usage of “My Number” in investment units-related affairs“My Number” is recorded on the payment record and the payment record is filed with the relevant tax
authority pursuant to laws and regulations.
Major payment record *Payment record regarding cash distribution
Usage of “My Number” also includes taxation-related procedures on investment units. It is necessary
for unitholders to notify your “My Number” to your brokerage, etc.
Inquiries regarding notifying “My Number”⚫
⚫

Unitholders whose investment units are managed in brokerage accounts
Each brokerage
Unitholders who have no brokerage accountTransfer Agent Department, Sumitomo Mitsui Trust Bank, Limited
Toll-free Telephone Number 0120-782-031- 84 -Domestic Portfolio Map (As of August 31, 2023)

No. of Properties(Note 1)

134

Others(Note 1)

No. ofResidential
Properties

92

41

1

No. ofHotels(Note 1) Including Sheraton Grande Tokyo Bay Hotel, underlying assets of TMK investment(Note 2) For properties corresponding to the number and their overview,please refer to pages 31-37.

- 85 -

- 86 -

Financial Conditions
INV issued JPY 6.2 billion of bonds for the first time in three years during the June 2023 fiscal period, andrefinanced JPY 59.3 billion of bank loans in total in July 2023. Furthermore, INV executed JPY 29.8 billionof bank loans for the August 2023 asset acquisitions and promoted extension of borrowing periods anddiversification of maturity dates.

◼ Investment Corporation Bonds
Bonds name

IssuedDate

Term(years)Balance(JPY mn)

AnnualInterest Rate

Rating2nd Series Investment
Corporation Bonds

May 25, 2018

10.0

1,000

0.80%

A (JCR)

3rd Series Investment
Corporation Bonds

Oct. 12, 2018

5.0

2,000

0.55%

A (JCR)

4th Series Investment
Corporation Bonds

Oct. 28, 2019

5.0

1,000

0.48%

A (JCR)

5th Series Investment
Corporation Bonds

Oct. 28, 2019

10.0

2,000

0.90%

A (JCR)

6th Series Investment
Corporation Bonds

Mar. 13, 2020

10.0

1,200

0.85%

A (JCR)

7th Series Investment
Corporation Bonds

May 25, 2023

3.0

5,000

1.00%

A (JCR)

8th Series Investment
Corporation Bonds

May 25, 2023

5.0

1,200

1.20％

A (JCR)

Total

13,400◼ Lender Formation (as of August 31, 2023)(Total)JPY

269,046
millionMizuho Bank

21.8%

Nishi-Nippon City Bank

0.7%

MUFG

16.8%

Aeon Bank

0.6%

SMBC

16.5%

Fukuoka Bank

0.6%

SMTB

14.8%

Ogaki Kyoritsu Bank

0.4%

SBI Shinsei Bank

4.7%

Kiraboshi Bank

0.4%

DBJ

4.3%

Momiji Bank

0.4%

Citibank

2.8%

Yamaguchi Bank

0.4%

Tokyo Star Bank

2.3%

The Chukyo Bank

0.4%

Aozora Bank

2.0%

Kagawa Bank

0.2%

Resona Bank

1.9%

Tochigi Bank

0.2%

San ju San Bank

1.2%

Kiyo Bank

0.2%

Nomura TB

1.0%

REIT Bond

5.0%

Shizuoka Bank

0.9%

◼ Rating
Rating Agency

Rating Object

RatingOutlookJapan Credit Rating
Agency, Ltd.

Long-term
Issuer Rating

A

Stable- 87 -

◼ LTV (based on appraisal value)(Note 1) and Weighted Average Interest Rate(Note 2)
（%）

（%）

55

2.0

50
45.1
45

46.8

46.6
42.8

43.4

0.48

0.50

44.5

44.1

45.3

44.6

44.2

1.5

47.6
45.4

44.9

44.5
42.7

43.0

0.43

0.46

40

1.0

0.5
0.50

0.51

0.52

0.53

0.53

0.55

0.54

0.53

0.51

0.49

0.48

0.45

35

0.0

◼ DSCR(Note 3)
(X)

30.0
25.0

26.0
22.9

22.2

20.2

21.4

20.7

22.2

22.0

20.8
17.6

20.0
15.0
10.0
4.7
5.0

4.5

5.7

7.5

2.4

0.0

(Note 1)

(Note 2)
(Note 3)Calculated by the following formula: (Interest-bearing debts at the end of the relevant fiscal period, excluding short-term consumption tax loan) / (Total appraisal
value as of the end of the same period). For the preferred equity interest in the TMK which holds Sheraton Grande Tokyo Bay Hotel as an underlying asset, theacquisition price (INV’s investment amount) of such preferred equity interest is deemed as the appraisal value and included. For the Overseas Real Estate TK
Interest the underlying assets of which are “The Westin Grand Cayman Seven Mile Beach Resort & Spa” and “Sunshine Suites Resort”, the acquisition price (INV’s
TK investment amount) of such TK interest is deemed as the appraisal value and included regarding the calculation for “Dec. 2018”. Regarding “Jun. 2019” onward,
calculation is based on the appraisal value as of the end of each fiscal period. USD is converted into JPY amount via the forward exchange rate of USD 1=JPY
110.45 based on the foreign exchange forward contract entered into on July 26, 2018.
Calculated by the following formula: (Total loan amount outstanding at the relevant time multiplied by applicable interest rate at the relevant time for each loans)/ (The loan amount outstanding at the end of each fiscal period).
DSCR is calculated by dividing (i) by (ii) for the relevant period; (i) operating income, as adjusted for depreciation expenses from property rental business and any
loss (gain) on sales of property (ii) scheduled prepayments of loans payable, interest expenses,. Excluded the temporal increase of income due to the change ofinvestment structure regarding overseas assets for the calculation of June 2019 fiscal period.

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Overview of Unitholders/Investment Units

Historical Unit Price(Note)

Unit prices indicate the closing price on the TSE market.

TSE REIT Index has been indexed, assuming the closing price of TSE REIT Index as of January 4, 2013,

as the same as the closing price of INV’s unit on the same day.

Distribution of Unitholders(Note) Percentage figures are rounded to one decimal place.

Annual Schedule- 89 -

Information for Unitholders
For Unitholders
Investors’ Registry
Administrator
Special Account Management
Institution

Correspondence(Telephone Assistance)

Sumitomo Mitsui Trust Bank, Limited
1-4-1, Marunouchi, Chiyoda-ku, Tokyo<Unitholders of the former Tokyo Growth REIT Investment Inc.>
Mitsubishi UFJ Trust and Banking Corporation
1-4-5, Marunouchi, Chiyoda-ku, Tokyo<Unitholders of the former LCP Investment Corporation>
Sumitomo Mitsui Trust Bank, Limited
1-4-1, Marunouchi, Chiyoda-ku, Tokyo
Transfer Agent Department, Sumitomo Mitsui Trust Bank,
Limited
2-8-4, Izumi, Suginami-ku, Tokyo, 168-0063
Toll-free Telephone Number 0120-782-031
Administrative services are available at the main and branch
offices throughout Japan of Sumitomo Mitsui Trust Bank,
LimitedNotification Process for Address Changes
Please notify your brokerage (financial instruments business operator) regarding changes to addresses, names,
registered seals, and the like. Unitholders who have special accounts instead of brokerage accounts should
contact the transfer account management institution (financial instruments business operator) below.
Unitholders of the pre-merger Investment Corporation (former Tokyo Growth REIT Investment Inc.)
Mitsubishi UFJ Trust and Banking Corporation Toll-free Number: 0120-255-100
Unitholders of the former LCP Investment Corporation
Sumitomo Mitsui Trust Bank, Limited
Toll-free Number: 0120-782-031
Dividends
Unitholders may collect “dividends” by submitting the “Dividends Receipt” at your local Japan Post Bankor at the deposit teller of a post office. In the case that the collection period has past, designate a collection
method on the back of the “Dividends Receipt,” and either mail the receipt to the Transfer Agent Departmentof the Sumitomo Mitsui Trust Bank, Limited or collect from a branch teller.
(Bank Transfers)
Should you desire to specify bank transfers for future dividends, please notify your brokerage(financial instruments business operator).
(Note)

Please collect dividends within 3 years of distribution. Please note that payments cannot be made after
3 years due to the rules and regulations of the Articles of Incorporation of the Investment Corporation.

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Notification(Notice of Dividend Payment)
The 2008 amendment of the Special Taxation Measures Law (Act No. 23 of April 30, 2008) mandated thesending to unitholders a “Notice of Dividend Payment” stating the dividend amount, amount of taxes
withheld, and the like for dividends payable in and after January 2009. If you collect dividends via a“Dividends Receipt,” please view the “Notice of Dividend Payment” sent alongside it. If you have specified
a wire transfer, the “Dividend Statement” delivered with the dividend payment is the “Notice of Dividend
Payment.”(Characters for Addresses and Names of Unitholders)With the digitization of investment securities, if there are Chinese characters in your address or names that
the Japan Securities Depository Center (JASDEC) has not included in the transfer system, JASDEC registers
them in the Investors’ Registry by converting part or all of the characters to those that JASDEC has includedin the transfer system or to katakana. Please be aware that correspondence may be addressed using
characters that JASDEC has included in the transfer system. Please inquire with your brokerage regarding
characters registered for your address and name.
Inquiries
For inquiries regarding INV: Consonant Investment Management Co., Ltd.
TEL: 03-5411-2731 (Main)
Weekdays 9:00-17:00- 91 -