Invincible Investment Corporation
June 2024 Fiscal Period Results(January 1, 2024 to June 30, 2024)
TSE Code : 8963

August 26, 2024

Table of Contents
Ⅰ. Executive Summary

3～4

Ⅱ. Summary of Properties Acquired in July 2024

Ⅴ. Status of Residential Operations
V-1.

Performance of Residential Properties

37

V-2.

Changes of Residential Rents

38

Ⅱ-1.

Summary of Properties Acquired in July 2024

6

Ⅱ-2.

Change in Hotel Portfolio

7

Ⅵ. Financial Condition

Ⅱ-3.

Geographic Footprint of Domestic Hotels

8

Ⅶ. ESG Initiatives

Ⅲ. Summary of June 2024 FP Results, December 2024 FP Forecasts, and June 2025 FP Forecasts

Ⅲ-1.

Financial Highlights for June 2024 FP

10

Ⅲ-2.

Operating Revenue Composition

11

Ⅲ-3.

Summary of December 2024 FP Forecast

12

Ⅲ-4.

Summary of June 2025 FP Forecast

13

Ⅲ-5.

Domestic Hotel KPIs
Past Performance and Forecasts for December 2024 FP and June 2025 FP

14

Ⅲ-6.

Cayman Hotel KPIs
Past Performance and Forecasts for December 2024 FP and June 2025 FP

Ⅲ-7.

Revenue and GOP of MHM 73 Hotels
Past Performance and Forecasts for December 2024 FP and June 2025 FP

16

Ⅲ-8.

Banquet and Meeting Demand Trends

17

15

Ⅲ-9.

Capital Expenditures and Depreciation

18

Ⅲ-10.

Case Study (1): Strategic CAPEX at Flexstay Inn Iidabashi

19

Ⅲ-11.

Case Study (2): Strategic CAPEX at Sunshine Suites Resort

20

Changes in Total Overnight Stays in Japanese Accommodation Market

Ⅶ-1.

ESG Initiatives by INV

42

Ⅶ-2.

ESG Initiatives by MHM

43

1.

KPIs of Hotels acquired in July 2024
(2023 Actual, 2024 Simulated, 2026 Appraisal)

45～46

2.

Unitholder Benefit Program for Invincible Unitholders

47

3.

Inbound Market: Inbound Visitors to Japan by Country

48

4.

Domestic Portfolio Map

49

5.

Track Record of External Growth50

6.

Sponsor Pipeline

51

7.

Summary of Appraisal Value and NAV per Unit

52

8.

Financial Impact of Foreign Exchange Fluctuation (vs. Dec. 2024 FP Forecast)

53

9.

Financial Impact of Foreign Exchange Fluctuation (vs. Jun. 2025 FP Forecast)

54

Appendix (1)Appendix (2) – Financial and Operational Data

Ⅳ. Status of Hotel Operations and Market
Ⅳ-1.

40

22

1.

Key Operational Data for Variable Rent Hotels

56～57

2.

Financial Metrics

58

3.

Income Statement

59

4.

Balance Sheet

60～61

Ⅳ-2.

Japanese Domestic Tourism

23

Ⅳ-3.

Plans for Summer Vacations(Survey about the Summer by Meiji Yasuda Life Insurance)

24

Ⅳ-4.

Inbound Market: 1st half Comparison: 2019 vs. 2024

25

5.

Cash Flow Statement and Dividend Distribution

62

Ⅳ-5.

Inbound Market: China

26

6.

Property Income

63～66

Ⅳ-6.

Inbound Market: Outlook

27

7.

Appraisal Value

67～70

Ⅳ-7.

Inbound Market: Number and Destination Trend of Inbound Repeat Visitors

28

8.

Portfolio Properties

71～74

Ⅳ-8.

Initiatives by MHM

29

9.

Borrowings and Investment Corporation Bonds

75～82

Ⅳ-9.

MHM: Future Outlook and Strategy

30

10.

Overview of Unitholders

83

Ⅳ-10.

Initiatives by Sheraton Grande Tokyo Bay Hotel (SGTB)

31

11.

Unit Price Information

84

Ⅳ-11.

Trial Calculation: Business vs. Leisure Demand

32

Ⅳ-12.

Update of the Status of the Cayman Islands

33

Ⅳ-13.

Status of Overseas Travel

34

Ⅳ-14.

New Hotel Development in Japan and Increase of Construction / Labor Cost

351

Ⅰ. Executive Summary

Ⅰ. Executive Summary (1)◼

Sales and profits increased significantly this period due to robust hotel performance and dividend income1 from Sheraton (recorded forthe first time in eight fiscal periods). Operating revenue increased by 12.3% to JPY 21,136 million compared to the previous fiscal period(“previous period”)

Results of June
2024 Fiscal
Period (FP)◼

Net income increased by 16.9% to JPY 12,900 million compared to the previous period. Distribution per unit (“DPU”) also increased by
16.9% to JPY1,917, which is the highest DPU achieved since February 2010 when the corporate name changed to Invincible Investment
Corporation◼

DPU increased by JPY 32 or 1.7% compared to the forecast announced at the time of public offering on July 18, 2024◼

The total appraisal value of the 133 properties held at the end of the June 2024 FP was JPY 657,902 million, an increase of JPY 28,861
million (or a 4.6% increase) from the end of the December 2023 appraisal◼

Acquired 12 domestic hotels for a total acquisition price of JPY 104.4 billion at an average NOI appraisal yield of 6.0% NOI (after
depreciation: NOI 4.8% yield)

Summary of
Properties
Acquired in July
2024◼

Expanded investments centered on domestic full service hotels, including hotels in regional-areas, further growing the largest hotel
portfolio among J-REITs to JPY 612.2 billion◼

Aim to capture non-room revenue demand from banquets, meetings, and restaurants, which have recovered significantly from COVID,
as well as inbound demand in regional areas◼

Regarding the potential sponsor pipeline, the sponsor manages over 50 hotels, approximately 6,000 rooms, most of which are operated by
MyStays Hotel Management (“MHM”)◼

For the 81 domestic hotels2 owned by INV, all KPIs for this period exceeded those of the same period in 2023, with an 11.0% increase in
RevPAR and a 17.2% increase in GOP◼

For this period, Food & Beverage revenue3, including revenue from banquets, meetings, and restaurants, exceeded the pre-COVID level(100.2% of the same period in 2019) for the 73 domestic hotels managed by the major tenant, MHM (“73 MHM properties 4”). GOP

Domestic
Portfolio

margin of the 73 MHM properties was 39.7%, the same level as that of the same period in 2019 (39.8%), through continued strategies tomaximize GOPPAR (GOP Per Available Room), which continues to be successful despite cost increases◼

NOI of 41 residential properties for this period was JPY 1,140 million, up 1.2% from the same period in 2023, due to successful efforts toincrease rents and occupancy rate

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

Refers to dividend from Kingdom TMK (the “TMK”) that owns Sheraton Grande Tokyo Bay Hotel (“SGTB”) as an underlying asset
Refers to 81 of the 90 domestic hotel properties (including Sheraton Grande Tokyo Bay Hotel, asset-backed by preferred securities) owned as of the beginning of the period ending Jun. 2024, excluding nine properties with fixed rents
Refers to revenue from banquets, meetings, weddings, and restaurants
Refers to 73 hotels operated by MHM in INV portfolio as of the beginning of the December 2023 FP

3

Ⅰ. Executive Summary (2)◼

RevPAR for the two Cayman hotels for this period was USD 446, 7.4% higher than USD 415 in the same period in 2023 due to an increasein both ADR and Occupancy rate

Cayman Hotel
Portfolio◼

USD based Management Contract Revenue this period increased by 8.2% compared to the same period in 2023◼

Average Occupancy rate for this period was 79.0%, which is still lower than the pre-COVID level, down 10.3 points from the same period
in 2019. Going forward, a further recovery in air traffic to the Cayman Islands, which was reduced due to COVID, is expected to increase
Occupancy to the 2019 level, leading to an increase in revenues◼

For this period, INV further diversified fund procurement methods by issuing JPY 6 billion in retail bonds (investment corporation bonds
for individual investors) for the first time in February 2024

Financial
Condition◼

Credit rating was upgraded from A (positive) to A+ (stable) by Japan Credit Rating Agency in March 2024◼

INV borrowed JPY 56.7 billion with a weighted average loan term of 5.9 years for the acquisition of 12 hotels in July 2024, lengthening the
average remaining duration of interest-bearing-debt from 2.4 years (as of the end of the December 2023 FP) to 3.5 years (as of August 26,2024), diversifying the repayment dates◼

Forecasts for
December 2024
Fiscal Period(FP) and June
2025 Fiscal
Period (FP)DPU is expected to be JPY 1,797 for the December 2024 FP and JPY 1,895 for the June 2025 FP, or an increase of JPY 8 (or a 0.4% increase)and JPY 8 (or a 0.4% increase) respectively from the forecast announced at the time of the public offering on July 18, 2024, due to thechange in the number of investment units offered through the third-party allotment◼

The forecast factors in a slight decrease in domestic demand following the end of the “National Travel Discount Campaign” program. As
for inbound demand in 2024, the number of inbound visitors is expected to exceed that in 2019, despite a slow recovery in the number ofChinese tourists visiting Japan. As for 2025, an increase in demand is expected due to the World Expo 2025 in Osaka◼

The portfolio of 41 residential properties and one commercial property is expected to maintain stable returns

4

Ⅱ. Summary of Properties Acquired in July 2024

Ⅱ-1. Summary of Properties Acquired in July 2024
Acquired 12 domestic hotels for a total acquisition price of JPY 104.4 billion at an average 6.0% appraisal NOI yield
No.

Property Name

1

Art Hotel Osaka Bay Tower & Solaniwa Onsen

2

Hakodate Kokusai Hotel3

Art Hotel Nippori Lungwood

4

Hotel MyStays Kumamoto Riverside5

Art Hotel Aomori

6

Kamenoi Hotel Izukogen

7

Art Hotel Oita

8

Art Hotel Kokura New Tagawa

9

Art Hotel Miyazaki Sky Tower

10
11
12

Location

Rooms

2024 NOI2(BeforeDepreciation)(Appraisal)

2024 NOI
Yield3

Hotel Performance4(Appraisal Basis)(BeforeDepreciation)(Appraisal)

ADR (JPY)

Occupancy

Osaka-shi, Osaka

Full Service

454

31,185(JPY mn)
1,662

5.3%

20,000

89.0%

Hakodate-shi, Hokkaido

Full Service

435

16,830

1,052

6.3%

17,00084.0%

Arakawa-ku, Tokyo

Full Service

134

16,335924

5.7%

23,700

93.6%

194

6,831

437

6.4%

12,685

86.9%

Kumamoto-shi, Kumamoto Limited Service
Aomori-shi, Aomori

Full Service

211

5,672

372

6.6%

11,50082.0%

Ito-shi, Shizuoka

Resort

55

5,563

344

6.2%

41,20089.0%

Oita-shi, Oita

Full Service

228

5,484

360

6.6%

9,990

86.1%

Kitakyushu-shi, Fukuoka

Full Service

905

4,672

326

7.0%

13,00090.0%

Miyazaki-shi, Miyazaki

Full Service

135

3,821

271

7.1%

12,50085.0%

Art Hotel Kagoshima

Kagoshima-shi, Kagoshima

Full Service

208

3,395

257

7.6%

12,20082.4%

Kamenoi Hotel Hikone

Hikone-shi, Shiga

Resort

48

2,603

179

6.9%

21,35088.0%

Kamenoi Hotel Nara

Nara-shi, Nara

Resort

42

2,029

122

6.0%

20,400

85.0%

2,234

104,420

6,311

6.0%

17,96086.7%

Total / Average

6

1

7

(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

Type

Acquisition
Price1(JPY mn)

2

8

3

9

4

10

5

11

Acquisition Price shows purchase price set forth in the purchase and sale agreement and does not include adjustments for property taxes, city planning taxes, or national or local consumption taxes
Appraisal NOI is the one calculated by direct capitalization method in stated in the appraisal report on the valuation date of June 1, 2024
Appraisal NOI yield is calculated by dividing appraisal NOI by acquisition price
Numbers are from appraisal report as of June 1, 2024. They are assumed numbers for the normal year (approximately three years by DCF method assessed by each appraisal firm under certain preconditions, and it is not guaranteed to be achieved in the future, and it may actually change significantly
There is a building operated as "Suisui Garden Ryokan“ within the site of the property. However, since such building is not included in the anticipated acquisition, the figures do not include the 3 guest rooms of the building
The average is a simple average for ADR and Occupancy, while it is a weighted average for NOI Yield

6

12

6

Ⅱ-2. Change in Hotel Portfolio◼

INV’s hotel portfolio, which is the largest among J-REITs, reached JPY 612.2 billion in size by acquiring 12 hotels in July 2024◼

INV’s hotel portfolio, which initially focused on limited service hotels, has developed into a well-balanced portfolio that captures a variety of needs
through continuous external growth. INV aims to capture more non-room revenue demand from banquets and meetings, which have recovered
significantly from COVID, as well as inbound demand in regional areas

As of December 31, 2014

As of December 31, 2023

As of July 31, 2024

20 hotels

92 hotels

104 hotels

100%= JPY 507,861 million

100%= JPY 612,281 million

No. of Hotels1

100%= JPY 45,373 million

Full Service,
17.4%

Portfolio
Composition2
by Hotel Type3

Full Service,
29.1%

LimitedService, 82.6%(Note 1)
(Note 2)
(Note 3)(Note 4)

Resort,26.7%

Tokyo 23
wards, 33.8%

Overseas,
5.9%Greater Tokyo (ex.
Tokyo 23 wards),
26.3%

Others, 8.0%
Tokyo 23
wards, 25.8%

Hokkaidoarea, 12.8%

LimitedService, 37.8%

Resort, 23.8%

Others, 8.6%

Kansai area,
29.9%

Chubu area,
6.5%

LimitedService, 44.2%

Overseas,
7.1%

Kyushu area,
3.5%

Portfolio
Composition2
by Geography4

Full Service,
38.4%

Hokkaidoarea, 13.4%

Tokyo 23
wards, 24.1%
Greater Tokyo (ex. Tokyo
23 wards), 10.4%

Greater Tokyo (ex.
Tokyo 23 wards),
12.6%

Kyushuarea, 14.9%

Kansaiarea, 6.9%

Chubu area,
11.4%

Kyushu area,
16.3%
Kansai area,
11.5%

Chubu area,
10.4%

The amount of preferred equity interest contribution by INV to the JV TMK is counted according to the number of properties of underlying assets
Based on acquisition price and acquisition price of SGTB interest in INV’s portfolio is calculated by applying the amount of preferred equity interest contribution by INV to the JV TMK. The acquisition price of overseas hotels is the book value of the hotels as of May 9,
2019 when INV acquired the leaseholds of the properties, etc. related to the overseas hotels as dividend in kind in line with the termination of the SPC contract, which were converted into a JPY amount via the forward exchange rate of USD 1=JPY 110.45. The amount ofpreferred equity interest contribution by INV to the JV TMK is based on the property type or location of the underlying asset
Full service hotels are, in general, hotels that have both restaurant facilities providing breakfast, lunch and dinner (including meals provided by reservation) and meeting facilities that can be used for banquet services. We categorize all hotels other than full service hotels
as limited service hotels (except for limited service hotels that are classified as resort hotels, as described below). Resort hotels are hotels located in areas where a substantial number of guests stay for sightseeing or recreational purposes and includes both full service hotels
and limited service hotels. With respect to a hotel that falls within the definition of both a full service hotel and a resort hotel, we categorize the hotel as a full service hotel if it has substantial demand for meeting room, banquet service, wedding service or food andbeverage service (including demand from non-staying guests) and as a resort hotel in all other cases. With respect to a hotel that falls within the definition of both a limited service hotel and a resort hotel, we categorize the hotel as a resort hotel
Defined as follows: Greater Tokyo (ex, Tokyo 23 wards) is Tokyo (ex. Tokyo 23 Wards), Kanagawa, Chiba and Saitama. Kansai area is Osaka, Hyogo ,Kyoto, Shiga, Wakayama and Nara. Chubu area is Aichi, Gifu, Mie, Shizuoka, Nagano, Yamanashi, Niigata, Toyama,
Ishikawa and Fukui. Kyushu area is Fukuoka, Kumamoto, Kagoshima, Nagasaki, Oita, Miyazaki, Saga and Okinawa7Ⅱ-3. Geographic Footprint of Domestic Hotels
The acquisition of 12 hotel properties in July 2024 will further strengthen diversification by region and hotel type, creating a well-balanced portfolio◼ With the addition of hotels in four new prefectures, INV has a presence in 29 of 47 prefectures in Japan◼

Limited Service Hotel
Properties acquired in July 2024

Resort Hotel
Full Service Hotel

Hakodate Kokusai Hotel

New Prefecture for an INV hotel with the acquisition in July 2024
Prefectures with INV hotels before the acquisition in July 2024

Art Hotel Aomori

Kamenoi Hotel Hikone
Art Hotel Kokura
New Tagawa
Art Hotel Nippori Lungwood

Hotel MyStays Kumamoto
Riverside

Kamenoi Hotel Izukogen
Art Hotel Kagoshima
Art Hotel Osaka Bay Tower& Solaniwa Onsen
Art Hotel Miyazaki Sky Tower

Kamenoi Hotel Nara

Art Hotel Oita

8

Ⅲ. Summary of June 2024 FP Results, December 2024 FP
Forecasts, and June 2025 FP Forecasts

Ⅲ-1. Financial Highlights for June 2024 FP◼

Operating revenue increased by 12.3% to JPY 21,136 million from the previous FP due to an increase in management contract revenue resulting from robust overseas
hotel performance and seasonal factors as well as an increase in the TMK dividend amount (Sheraton), as the TMK dividend was recorded for the first time in eightfiscal periods, despite a decrease in rents from domestic hotels due to seasonal factors. The TMK dividend amount for the June 2024 FP is equivalent to 12 months’
worth, six more than usual, due to special factors, and the estimated dividends received excluding these special factors is JPY 1,053 million◼

Net income increased by 16.9% to JPY 12,900 million from the previous FP, and DPU also increased by 16.9% to JPY 1,917. JPY 1,917 is the highest DPU achievedsince February 2010 when the corporate name changed to Invincible Investment Corporation
Major Causes for Variance（JPY million）

Operating revenue

Variance

Dec. 2023 FP

Jun. 2024 FP

18,81921,136

2,316

12.3%

16,696

14,933-1,763-10.6%

Hotel Rents (Variable rent)

7,441

7,074

-366

-4.9%

Hotel Rents (Fixed rent)

7,469

5,853

-1,616-21.6%

Residential Rents

1,388

1,402

13

1.0%

2,123

4,774

2,651

124.9%TMK Dividend amount

-

1,428

1,428

-

Gain on sale of properties

-

-

-

-

6,230

6,500

270

4.3%

5,096

5,107

10

0.2%

754

623

-130

-17.3%

3,776

3,889

113

3.0%

734

736

1

0.2%

441

451

10

2.3%

NOI

17,205

19,634

2,428

14.1%

NOI after depreciation

12,987

15,292

2,304

17.7%

•

Operating income

12,588

14,635

2,046

16.3%

Decrease in loan-related costs: -36•

Increase in interest expenses: +290

0

427

427

94,430.2%•

Increase in interest expenses on investment corporation bonds: +45

Non-operating expenses

1,556

2,162

606

38.9%

•

Decrease in foreign exchange losses: -76

Ordinary income

11,033

12,901

1,867

16.9%

•

Increase in derivative losses: +530

Net income

11,032

12,900

1,867

16.9%

•

Decrease in investment unit issuance costs: -152

Distribution per Unit (JPY)

1,640

1,917

277

16.9%

Distribution per Unit (JPY)

184

182

-

-

Operating revenue
Real estate rental revenues

Management contract revenue

Operating expenses
Real estate rental expenses
Taxes and other public charges
Depreciation expenses
Management contract expenses
Depreciation expenses

Non-operating income

Operating Days（％）

Amount•Decrease in revenue from hotels acquired in Aug. 2023: -1,024•

Increase/decrease in revenue from properties acquired before Aug.
2023: -738-•

Increase in management contract revenue: +2,651-•

Hotels: -770 / Residential: +31

124.9% increase in JPY basis and 116.3% increase in USD basis（FX rate of 2023 2H: USD 1= JPY 145.4, 2024 1H: USD 1 = JPY 151.2）

Increase in TMK Dividend amount: +1,428

Operating expenses•

Increase in expenses for hotels acquired in Aug. 2023: +127-•

Decrease in expenses for properties acquired before Aug. 2023: -116-•

Increase in depreciation expenses: +94, taxes and otherpublic charges: +31
Increase in depreciation expenses: +19, decrease in taxes
and other public charges: -161

Increase in management contract expenses: +1

Non-operating income•

Increase in foreign exchange gains: +423

Non-operating expenses•

Increase from the previous period: +277

10

Ⅲ-2. Operating Revenue Composition
For the June 2024 FP, operating revenue increased by 12.3% compared with the December 2023 FP due to the increase in management contract revenue and TMK
dividend amount (Sheraton)
Portfolio Composition by Operating Revenue 1+12.3%

21,136

18,81922.6%
Management
Contract Revenue(Cayman hotels)
TMK Dividend
Amount (SGTB)
Variable Rent Hotel(variables)

JPY 16,221 mm

16,616

20.0%

8.4%
4.1%

11.3%
15,914
6.8%
24.6%
40.3%

5.1%

32.1%

35.0%

26.6%

30.2%

Variable Rent Hotel(fixed)Fixed Rent Hotel

37.0%

23.6%

Residential

2.4%

Commercial
properties

20.4%

Management Contract Revenue2(Cayman hotels)

26.4%

2.3%
1.9%

2.1%
9.5%
0.9%

December FP

June FP

14.3%

1.9%
（JPY million）

38.3%

32.6%

CY2019June FP

1.5%
8.0%
0.8%

1.3%
7.2%
0.7%

December FP

June FPCY2023

CY2024

3,240

20.0%

1,397

8.4%

3,914

24.6%

2,123

11.3%

4,774

22.6%

827

5.1%

673

4.1%

-

-%

-

-%

1,428

6.8%

Variable Rent Hotel(variables)

4,307

26.6%

5,332

32.1%

4,807

30.2%

7,576

40.3%

7,398

35.0%

Variable Rent Hotel(fixed)

3,834

23.6%

6,144

37.0%

5,194

32.6%

7,198

38.3%

5,582

26.4%

Fixed Rent Hotel

388

2.4%

386

2.3%

341

2.1%

281

1.5%

281

1.3%

3,316

20.4%

2,374

14.3%

1,516

9.5%

1,497

8.0%

1,529

7.2%

Commercial properties

306

1.9%

307

1.9%

141

0.9%

141

0.8%

141

0.7%

Total

16,221100.0%

16,616100.0%

15,914100.0%

18,819100.0%

21,136100.0%TMK Dividend Amount(SGTB)

Hotel

Residential(Note 1) Based on the properties owned by INV during each fiscal period respectively. The gain on sale is excluded(Note 2) The figure for the June 2019 FP includes the amount of TK dividends INV received for the fiscal period before INV owned Cayman hotels directly11Ⅲ-3. Summary of December 2024 FP Forecast◼

For the December 2024 FP, operating revenue is expected to increase by 26.0% to JPY 23,720 million and DPU is expected to increase by 9.6% to JPY 1,797
from the same period in 2023 due to the increase in rent from the hotels acquired in July 2024, despite a decrease in management contract revenue due to thelarge-scale renovation of Sunshine Suites Resort and an opening campaign of a competing hotel◼

The number of visitors to Japan in June reached three million visitors for the fourth month in a row, and further upside is expected depending on therecovery of demand from Chinese tourists visiting Japan

Dec. 2023 FP
Operating revenue

Real estate rental revenues

Major Causes for Variance

Variance

Dec. 2024 FP（％）

AmountOperating revenue

18,81923,720

4,901

26.0%

•

Increase in rents from hotels acquired before Aug. 2023 (variable rent
and fixed rent): +489•

Increase in rents from hotels acquired in Aug. 2023 (variable rent andfixed rent): +392•

Increase in rents from hotels acquired in Jul. 2024 (variable rent andfixed rent): +3,435

16,69621,011

4,315

25.8%

Hotel Rents (Variable rent)

7,441

10,788

3,346

45.0%

Hotel Rents (Fixed rent)

7,469

8,440

970

13.0%

Residential Rents

1,388

1,417

28

2.0%

2,123

2,020

-102

-4.8%

•

Increase in residential rents: +28

TMK Dividend amount

-

687

687

-

•

Decrease in management contract revenue: -102

Gain on sale of properties

-

-

-

-

6,230

7,484

1,254

20.1%

5,096

6,106

1,009

19.8%

Management contract revenue

Operating expenses

Real estate rental expenses
Taxes and other public charges

754

832

77

10.3%

3,776

4,532

755

20.0%

734

765

30

4.2%

441

459

18

4.1%

NOI

17,205

21,840

4,634

26.9%

NOI after depreciation

12,987

16,848

3,861

29.7%

Operating income

12,58816,235

3,646

29.0%

0

-

0

-100.0%Non-operating expenses

1,556

2,516

960

61.7%

Ordinary income

11,033

13,719

2,685

24.3%

Net income

11,032

13,718

2,685

24.3%

Distribution per Unit (JPY)

1,640

1,797

157

9.6%

184

184

-

-

Depreciation expenses
Management contract expenses

Depreciation expenses

Non-operating income

Operating Days

（JPY million）-•

11.3% decrease in USD basis and 4.8% decrease in JPY basis due to JPY
depreciation（FX rate of 2023 2H: USD 1= JPY 145.4, 2024 2H: USD 1 = JPY
156.1）

Increase in TMK Dividend amount：+687

Operating expenses/Non-operating expenses•

Increase in real estate rental expenses: +1,009-•

Increase in management contract expenses: +30-•

Increase from hotels acquired in Aug. 2023: +185
Increase from hotels acquired in Jul. 2024: +735
Increase in insurance premiums, etc: +12
Increase in depreciation expenses: +18

Increase in non-operating expenses: ＋960-

Increase in interest expenses : +829
Increase in interest expenses on investment corporation bonds: +58
Increase in loan-related costs: +125
Decrease in foreign exchange losses: -76
Decrease in derivative losses: -30
Increase in investment unit issuance costs: +47

12

Ⅲ-4. Summary of June 2025 FP Forecast◼

For the June 2025 FP, revenue and income are expected to increase YoY due to the increase in revenue from hotels acquired in July 2024 despite the decrease in
TMK dividend amount (TMK dividend amount for the June 2024 FP was for 12 months while that of the June 2025 FP is for 6 months) and the decrease inmanagement contract revenue due to similar factors seen in the December 2024 FP. Operating revenue is expected to increase by 14.7% YoY to JPY 24,247
million and net income is expected to increase by 12.2% YoY to JPY 14,467 million◼

DPU for the June 2025 FP is expected to be JPY 1,895, which is 1.1% lower than the June 2024 FP actual figure, and 1.8% higher than the June 2024 FP
simulated figure (JPY 1,861) assuming the TMK Dividend amount of June 2024 FP is for a normal six-moth period
June 2024 FP

Operating revenue

Major Causes for Variance

Variance

June 2025 FP（JPY million）（％）

Amount21,13624,247

3,111

14.7%

14,933

18,674

3,741

25.1%

Hotel Rents (Variable rent)

7,074

10,247

3,173

44.9%

Hotel Rents (Fixed rent)

5,853

6,594

741

12.7%

Residential Rents

1,402

1,422

20

Management contract revenue

4,774

4,630

TMK Dividend amount

1,428

Operating revenue•

Increase in rents from hotels acquired before July 2024 (variable rent
and fixed rent): +457•

Increase in rents from hotels acquired in July 2024 (variable rent andfixed rent in total): +3,457

1.4%

•

Increase in residential rents: +20

-143

-3.0%

•

Decrease in management contract revenue: -143

942

-486

-34.0%

-

-

-

-

6,500

7,543

1,043

16.1%

5,107

6,151

1,044

20.4%

623

752

128

20.6%

Depreciation expenses

3,889

4,651

761

19.6%

Management contract expenses

736

811

75

10.3%

Depreciation expenses

451

509

58

12.9%

NOI

19,63422,445

2,811

14.3%

NOI after depreciation

15,292

17,284

1,992

13.0%

Operating income

14,635

16,704

2,068

14.1%

Non-operating income

427

-

-427

-100.0%Non-operating expenses

2,162

2,235

73

3.4%

Ordinary income

12,901

14,468

1,567

12.1%

Non-operating income

Net income

12,90014,467

1,567

12.2%

•

Distribution per Unit (JPY)

1,917

1,895

-22

-1.1%

182

181

-

-

Real estate rental revenues

Gain on sale of properties
Operating expenses
Real estate rental expenses
Taxes and other public charges

Operating Days-•

1.7% decrease in USD basis and 3.0% decrease in JPY basis

Decrease in TMK Dividend amount: -486

Operating expenses/Non-operating expenses•

Increase in real estate rental expenses : +1,044-•

Increase in management contract expenses : +75-•

Increase from hotels acquired in July 2024: +992
Increase in insurance premiums, etc : +17
Increase in depreciation expenses: +58

Increase in non-operating expenses : + 73-

Increase in interest expenses : + 584
Increase in Interest expenses on investment corporation bonds: +13
Increase in loan-related costs: +34
Decrease in derivative losses: -560

Decrease in non-operating income: -427-

Decrease in foreign exchange gains: -423

13

Ⅲ-5. Domestic Hotel KPIs
Past Performance and Forecasts for December 2024 FP and June 2025 FP◼

For the June 2024 FP, all KPIs exceeded those of the same period in 2023, with an 11.0% increase in RevPAR and a 17.2% increase in GOP for 81 domestic hotels1◼

For the December 2024 FP, all KPIs are expected to exceed those of the same period in 2023, with a 3.6% increase in GOP for 81 domestic hotels◼

For the June 2025 FP, all KPIs are expected to exceed those of the same period in 2024 due to an increase in accommodation demand partly driven by the World
Expo 2025 in Osaka
June FP

Domestic
81 hotels1
82.2%
80.7%
80.5%

Full Year

86.7%

86.6%
82.4%

GOP
(JPY mm)

Domestic
81 hotels1

December FP

2024

2023

2024

2023

2024

2023

2024

12,228
12,101
11,427
11,306
11,213
11,342
11,27910,372
10,330
10,2959,302

June FP

Domestic
93 hotels1
82.3%
82.5%
80.5%
79.7%

2023

2024

2023

2024

2023

2024

2023

2024

2023

2025

2024

2023

2025

2024

2023

Occ

December FP

9,295

Full Year

Domestic
93 hotels1

2023

11,253+11.0%
10,314

13,686
14,127
13,95813,877
13,533
13,397
13,762
13,67012,787
12,886
12,74012,62911,545
11,667

June FP

Domestic
81 hotels1

2025

RevPAR(JPY)

December FP

2024

Domestic
93 hotels1

2023

Domestic
81 hotels1

Full Year

2025

ADR
(JPY)

December FP

2024

June FP

Full Year

Domestic
93 hotels1
36,45030,553 32,214
27,960

83.5%
83.7%
81.1%
81.5%

2024

2023

2024

2023

2024

2023

2024

2023

2025

2024

2023

2025

2024

2023

2024

2023

2024

2023

2024

2023

2024

2023

2025

2024

2023

2025

2024

2023

20,091+3.6%
17,633
16,824 18,618+17.2% 14,176
16,35816,245
13,72913,595
11,715（Note 1）Simulated KPI based on 81 hotels; of the 90 domestic hotels (including Sheraton Grande Tokyo Bay Hotel, the underlying asset of preferred equity interest held by INV) owned at the beginning of the June 2024 FP, nine hotels with fixed-rent lease agreements are excluded, assuming all properties were owned since the beginning of 2019. The performance for the preacquisition period, which is based on actual results provided by sellers with certain adjustments assuming INV owned them, are subject to change caused by the adjustments based on differences in accounting treatments, since it is difficult to adjust them due to the timing even if the figures are based on actual performance. In calculating the GOP, added the 49% of GOP
for Sheraton Grande Tokyo Bay Hotel, which means INV’s pro rata portion of the amount of JV TMK’s preferred equity owned by INV. The rent paid for APA Hotel Yokohama‐Kannai, is regarded as GOP of the hotel. Furthermore, among the nine hotels excluded, the contract with the major tenant TOKYU HOTELS & RESORTS CO., LTD. for “Takamatsu Tokyu REI
Hotel” has been modified to “fixed-rent plus variable rent” since April 25, 2023. However, from the viewpoint of the continuity of data, it is treated as a hotel with fixed rent and continues to be excluded. The same shall apply hereinafter. Domestic 93 hotels; the above 81 hotels plus the 12 hotels acquired in July 2024.

14

Ⅲ-6. Cayman Hotel KPIs
Past Performance and Forecasts for December 2024 FP and June 2025 FP◼

For the June 2024 FP, all KPIs exceeded those of the same period in 2023, with a 7.4% increase in RevPAR (US dollar based) and an 8.2% increase in GOP (USdollar based)◼

For the December 2024 FP, GOP (US dollar based) is expected to decrease by 11.3% from the same period in 2023 due to an opening campaign by a competitor
hotel and the partial closure of rooms in connection with the renovation at Sunshine Suites Resort
June FP

ADR(JPY)

December FP

Full Year

85,337 91,666
72,01561,24759,073 62,084

2023

2024

78,90370,611

66,7062023

67,403 69,751

55,6622023

December FP

2024

2023

Full Year

76.1%
64.8%

45,65930,041 28,441

2024

71.0%

68.0%

Full Year47,37053,663+7.4% 49,036 51,425

53,210 56,876

46,335 49,758

2025

December FP

39,709 40,360

Occ
79.0%

RevPAR(JPY)

67,582June FP
77.3%

June FP

2024

2025

June FP

2023

2024

December FP

GOP(JPY mm)

2023

3,914
3,474

6,795

4,630

+8.2%

3,210

2024

Full Year
6,037

4,774

57.2%

37,786 38,682

2,123

2,020

1,606

1,423

4,816

4,898

2023

2024

3,414
-11.3%

2023

2024

2025

2023

2024

2023

2024

2023

2024

2025

2023

2024

＜About ADR, RevPAR and GOP＞
Bar chart = converted into yen using the exchange rate of USD 1 to JPY 110 to eliminate the influence of exchange rate fluctuations.
Line chart () = converted into yen using the weighted average exchange rate (exchange rates for Dec. 2024 FP and Jun. 2025 FP are forecast) for each fiscal period.

The weighted average exchange
rate (JPY)2023

June FP
2024

2025

December FP
2023
2024

2023

2024

134.1

151.2

149.2

145.4

137.9

152.6

156.1

Full Year15

Ⅲ-7. Revenue and GOP of MHM 73 Hotels1
Past Performance and Forecasts for December 2024 FP and June 2025 FP◼

For the June 2024 FP, Food & Beverage revenue exceeded the 2019 level for the first time since COVID. GOP margin was the same level as 2019 despite cost
increases through continued strategies to maximize GOPPAR (GOP Per Available Room)◼

For the December 2024 FP and the June 2025 FP, both Room revenue and Food & Beverage revenue are expected to increase, maintaining the GOP margin at
the current level

June FP

December FP(JPY billion)

Food & Beveragerevenue

1.7

1.6

5.5

1.7

1.5

1.6
Other revenue

Other revenue

5.7

5.5

Food & Beveragerevenue

22.2

21.3

Room revenue 18.8

Room revenue

18.5

19_売上 19_GOP

2019

Food & Beveragerevenue,2019 = 100%

11.3

9.3

!

23_売上 23_GOP

6.1

2023

!!

24_売上 24_GOP

2024

!!!

20.4

25_売上 25_GOP

19_売上 19_GOP

2025

2019

37.4%

39.7%

39.2%

GOP Margin

ー

88.1%

100.2%

103.4%

Food & Beveragerevenue,2019 = 100%

24.2

22.5

11.6

39.8%

(Note 1) 73 hotels managed by MHM as of the beginning of December 2023 FP

5.8

GOP
11.4

GOP
10.3

6.5

1.8

(inc. banquet andmeeting)

4.8(inc. banquet andmeeting)

GOP Margin

1.7(JPY billion)

12.7

12.2

!

23_売上 23_GOP

2023

!!

24_売上 24_GOP

2024

40.3%

40.7%

39.3%

ー

95.8%

106.1%

16

Ⅲ-8. Banquet and Meeting Demand Trends◼

Demand for banquets and meetings, which stagnated during COVID, is recovering due to several factors such as a return to face-to-face communication,
expansion of employee training by companies, and promotion of MICE1 by the Japanese Government◼

Revenue from banquets and meetings at MHM 18 hotels2 and SGTB has recovered to almost the 2019 level. Further recovery and growth are expected, driven
by the macro trends mentioned above
Revenue from banquets and meetings at INV’s hotels 6

Driver of demand for banquets and meetings
BanquetThe percentage of Tokyo company employees coming to work is on the rise due to the promotion ofcommunication and other reasons, according to a survey by NRI 3. Demand for banquets is expected
to increase in conjunction with this trend
Change infrequency of goingto the office byoffice workers inTokyo3

Top 5 reasons forgoing to the officemore frequently3

Before
COVID

59.7%

Jul. '23

Meeting
Revenue< 3 / week:
10.4%

3 or more / week: 89.6%

Feb. '22MHM
18 hotels2(JPY mm)

40.3%

75.1%

BanquetRevenue

24.9%#1: due to change in company’s policy (mandatory)

39.0%#2: to have better communication (voluntary)

28.2%#3: for better environment for concentration (voluntary)

23.7%#4: to promote communication with colleagues (mandatory)

20.1%(June 19 FP = 100%)
Total
Meeting Revenue
Banquet Revenue#5: to promote communication with outside parties (mandatory) 17.6%

Employee
Training

Training expenses are expected to increase in the future for reasons such as increased employee
engagement and mandatory disclosure of information on human capital.
Linked to this trend, training and conferences using hotel facilities are expected to increase
Question:
Will you increase /decrease spending
on employee
training for the
coming 3 years? 4

'21
'22

43.1%
55.8%

'23

•
•

17.5%
40.1%

62.8%
Increase

MICE

39.3%

32.4%
Unchange

SGTB(JPY mm)4.1%
4.8%
Decrease

363 international conventions (ICCA5 standard) were held in 2023 in Japan, which is 68.9% of2019 level (527 conventions)Japanese Gov. has budgeted JPY 908 million for promoting MICE, approximately 4 times JPY
213 million in 2023. Further recovery in the number of international conventions in Japan is
expected(Note 1) Business events such as corporate meetings, incentive trips conducted by companies, international conferences organized by international organizations or associations, trade shows and exhibitions, and other events(Note 2) Refers to the following hotels: MyStays Shin- Urayasu Conference Center, Hotel MyStays Hakodate-Goryokaku, Hotel MyStays Utsunomiya, Hotel MyStays Gotanda Station, Hotel Epinard Nasu, Hotel MyStays Shin Osaka
Conference Center, Kamenoi Hotel Beppu, Art Hotel Joetsu, Art Hotel Hirosaki City, Hotel MyStays Premier Sapporo Park, Hotel MyStays Sapporo Aspen, Art Hotel Ishigakijima, Art Hotel Niigata Station, Hotel MyStays
Kagoshima Tenmonkan, Art Hotel Asahikawa, Hotel MyStays Matsuyama, Hotel MyStays Premier Narita, Art Hotel Morioka(June 19 FP = 100%)(Note 3) Source: Nomura Research Institute (December 4, 2023)(Note 4) Source: SANRO Research Institute (November 7, 2023)(Note 5) International Congress and Convention Association(Note 6) Revenue from wedding or restaurant is not included17Ⅲ-9. Capital Expenditures and Depreciation◼

In order to further increase the profitability of the portfolio, INV has decided additional investment in renovation work at Hotel MyStays Nippori (budget:
JPY 296 million) with the aim to increase DOR1 on top of the original plans to renovate Flexstay Inn Iidabashi and Sunshine Suites Resort. As a result, thebudget for Strategic CAPEX2 in 2024 has increased by JPY 499 million from the original budget as of February 26, 2024◼

An increase in depreciation from the original budget is mainly due to 12 hotels acquired in July 2024 and the increase in Strategic CAPEX mentioned above（JPY million）

9,333“Excess FFO3 “

8,689
7,992

7,740

7,964
7,522

2,372

Free Cash
JPY 310 per unit4

2,298

Strategic CAPEX2

4,435

4,662

Maintenance
CAPEX5

2024

2024

2,455

6,926
5,811
4,848

4,108

5,175

5,703
6,651

3,741

Depreciation

1,798

5,647

3,585
3,350

2,262

92

2,770

1,365

928
1,877

1,112
252

385

2014

2015

1,323

667
971

830

2016

2017

45

960

1,297

1,494

1,329

82
1,006

2018

2019

2020

2021

2,696
1,829
2022

2023

BudgetRevised(as of Feb. 26) Budget(as of Aug. 26)

Asset Size6(JPY million)(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

117,927

173,815

266,619353,695

448,362

497,979

502,717494,766

491,416

548,646548,646

653,066

Abbreviation of “Double Occupancy Ratio”. It is calculated by dividing the number of guests stayed by the number of rooms sold, i.e., an average number of guests per room sold. The same is applied for other pages
Strategic capital investment for renovation including guest rooms, banquet rooms, restaurant and others in order to improve the competitiveness / profitability of the hotels
Excess FFO is defined as the amount of depreciation minus maintenance CAPEX. The same shall apply hereafter
Based on 7,646,453 units after the issuance of new investment units through the third-party allotment, which was approved at the meetings of the board of directors of INV held on July 18, 2024 and July 24, 2024
Capital investment which is required to maintain proper values of properties and capital investment for fixtures and furnishings that are necessary for operating hotels
Based on the acquisition price as of the end of the relevant year. After 2017, includes the amount of preferred equity interest contribution by INV to the JV TMK that holds Sheraton Grande Tokyo Bay Hotel (SGTB). The acquisition price of overseas hotels (i) is the amount of TK investment to the SPC which held the leasehold of properties for "2018" and (ii) isthe book value of the hotels as of May 9, 2019 for “2019” onward, which are converted into JPY amount via the forward exchange rate of USD 1=JPY 110.45 based on the foreign exchange forward implemented in connection with the original TK investment in the Cayman SPC (contract thereof was entered into on July 26, 2018 and implemented on September
26, 2018)18

Ⅲ-10. Case Study (1) : Strategic CAPEX at Flexstay Inn Iidabashi◼

◼
◼

Adding nine guest rooms through renovation work to increase the number of triple/family rooms which will increase room capacity from 123 to 178 guests(44.7% increase). The hotel will change its brand name from “Flexstay Inn” to “Hotel MyStays” in September 2024
As a result of the increase in room capacity, DOR is expected to increase from 1.74 to 2.34 and ADR is expected to increase ＋68.4％ compared to 2023
ROI is expected to be approximately 25％. GOP is expected to increase JPY 99,423 thousand (+82.8%) per year after the renovation compared to the budget for2024 (established without including renovation work)

Conversion/Renovation for Flexstay Inn Iidabashi■ “Standard Double” (two guests ) → “Comfort double” (three guests)1

Overview
PeriodMay 27, 2024 – September 20, 2024 (scheduled)

Investment
AmountJPY 390 million (excluding tax)

Key Changes

1. Room conversion/renovation including the following work
・Convert two “Junior Suite Twin” rooms on the 6th floor
into two “Standard Twin” rooms and one “Deluxe
Family” room (added one room)
・Convert restaurant space on the 2nd floor into guest
rooms (added five rooms)
・Convert tenant space on the 1st floor into guest rooms (added
three rooms)■ 6 floor “Junior Suite Twin” (two guests)→ “Deluxe family room”(six guests)1

2. Renovation of common area

Composition of guest rooms and capacity before and after therenovation work

■ Lobby/reception area1

Total Guest
Capacity+44.7%(Note 1) Image after completion of the renovation/conversion work19

Ⅲ-11. Case Study (2) : Strategic CAPEX at Sunshine Suites Resort◼

◼

◼

As 25 years have passed since the completion of Sunshine Suites Resort, the hotel will undergo a large-scale renovation to strengthen its competitivenessagainst competing hotels that continue to be renovated or open in the vicinity. The plan includes full renovation of all guest rooms, renovation of common
areas such as the lobby and restaurant, and building new facilities, such as Pickleball courts
In order to minimize business disruption and revenue loss, the period of renovating guest-rooms and facilities is split into two periods from Aug. to Nov. 2024
(Building A), and from May to Aug. 2025 (Building B) so that both buildings can operate during the peak season (Dec. – Apr.)
The total renovation budget is USD 26 million. In 2026, when the effect of the renovation is fully realized, NOI is planned to increase by 91.5% (USD 3.4
million), leading to an ROI of 13.2%, compared to the case of no renovation
Summary of the Renovation
Main
Items

Trends of hotels in neighborhood
Hotel

Build Pickleball courts
Build parking(when Westin Grand
Cayman Seven Mile Beach
Resort & Spa is expanded）• Renovate existing facility/equipment• Build an outdoor seating area

Restaurant

Convert the cafe
to a fitness center

Build a jacuzzi# of rooms Update

Hampton by Hilton Grand Cayman
Seven Mile Beach

122

Holiday Inn Resort Grand Cayman

82

Grand Cayman Marriott Resort

301

Hotel Indigo Grand Cayman

282

Renovation &Rebrand, 2021
Renovation (guestroom), 2021
Renovation (guestroom), 2024
Open, 2024

Before and After (rendering)Cafeカ■Guest room
Guest room
(Building A)

Guest room
(Building B)
Reception• Expand lobby and shop
• Fully renovate all existing 131
guest rooms• Convert a meeting room
(Building A) to a guest room

Renovation
PeriodReturn /Budget■Restaurant

August 2024 – September 2025
Building A: August – November 2024, Building B: May – August 2025

Budget: USD 26 million (CAPEX)
Return: In 2026, when the effect of the renovation is fully realized, RevPAR and NOI isplanned to increase by 37.4% and by 91.5% (USD 3.4 million) respectively, compared tothe case where the renovation does not happen. ROI is 13.2%

20

Ⅳ. Status of Hotel Operations and Market

Ⅳ-1. Changes in Total Overnight Stays in Japanese Accommodation Market
The number of total overnight stays in the 1st half of 2024 increased by 7.5% compared with the same period last year. This increase was driven by
inbound travelers, while the number of overnight stays by Japanese travelers decreased slightly◼ The number of overnight stays by inbound travelers has maintained steady growth over the last 10 years, achieving a 267.9% increase from the 1st
half of 2014 to the same period in 2024. As a result, inbound travelers account for 25.3% of the accommodation market in the 1st half of 2024.
Inbound travelers are expected to play a more important role in the market considering Japanese Government’s target of 60 million of inboundtravelers by 20302◼

Change in the number of overnight stays last 10 years (Total of January - June)1

Change (%/pt)（million overnight stays）

Japanesetravelers

Inboundtravelers
Share ofinboundtravelers(Note 1)
(Note 2)

Source: MLIT. The figures for June 2024 are primary preliminary figures and the figures for January 2024 - May 2024 are secondary preliminary figures that are subject to change in the future
Source: The 23rd meeting of the Ministerial Council on the Promotion of Japan as a Tourism-Oriented Country+8.0pt+15.7pt22

Ⅳ-2. Japanese Domestic Tourism◼

In 2024, Japanese tourists are expected to spend 6.0% more on domestic travel than in 2019, according to JTB estimates 1,2. This corelates to a decreasein outbound visitors in 2024 (January - June) compared to the same period in 2019, stemming from the yen depreciation 3,4

Expenditures of Domestic Tourists1,2(JPY trillion)

USD / JPY Exchange Rate in 2019 and 2024 (Jan. – Jun.)3

160

147.50150.60151.25108.92110.89110.92156.82160.95156.65

2024

140
120

111.70109.33107.68
2019

100
Jan.

Feb.

Mar.

Apr.

May

Jun.

Number of Outbound Visitors in 2019 and 2024 (Jan. – Jun.)4(thousand)
2,000
1,500
1,000

1,930
1,667

1,535

1,452

1,521

1,438
1,220

839

979

889

942

2019

930
2024

500
0
Average expenditure
per person (JPY)(Note 1)
(Note 2)
(Note 3)(Note 4)

Source: Estimated by JTB
The number is estimation and could be different from actual number
Source: Bank of Japan. The figures are as of the end of the month and the most traded rate of the day based on the trading volume
Source: Ministry of Justice

Jan.

Feb.

Mar.

Apr.

May

Jun.

23

Ⅳ-3. Plans for Summer Vacations(Survey about the Summer by Meiji Yasuda Life Insurance)

Japanese behavior for summer vacations in 2024 is split between those who will spend more and those who will spend less money due to price hikes. The numberof respondents who “will spend more on summer vacation” remained flat, while those who responded “they will spend less” increased
Average spending for summer vacations in 2024 is JPY 82,964, up JPY 10,296 from 2023, the third consecutive year of increase
The top reason given by respondents who responded "to increase spending” was "to travel”
A shift to “traveling” from "returning to hometown" which increased post-Covid-19 was observed, with "domestic travel" (56.9%, up 2.3 points from last year) andthe top choice again this year
In contrast to the golden week holiday, respondents tended to spend their vacations “more spending, far away, and longer term”

◼

◼
◼
◼

◼

Changes in spending for summer vacations

Reason to “increase” spending for summer vacations

Increased
three consecutive years andexceeded JPY 80,000(JPY )(%)

Respondents: those who answered will spend more on summer vacation(several answers possible)

80

100,000
86,15990,00082,95078,73280,00084,736

84,84882,974

72.6

89,29684,891
83,622

84,332

81,38083,81460

82,96476,950Up 4.9 pt
from 2023

40

25.1

72,66868,071

17.9

68,63270,00053,807For
travelling

50,00040,0002006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

As incomeincreasedwith wage
increase

As I held out
not to spend
To spendmoney
money onduring"Oshikatsu"
golden week
(Note 1)holiday

To buyelectric
appliances,
etc.

67.7

27.4

19.4

22.6

8.1

10.8

(Note 2)

(Note 2)

7.5

72.6

25.1

17.9

17.9

16.8

13.4

11.7

9.5

5.0

More spending, farther way, longer termcompared to last year

31.1
24.6

21.8

20

18.3
10.5

As bonusincreased(including
expectation)

5.0

2024

40
20.0

To go toluxuryrestaurant(%)
40“Domestic travel” is 1st place
by a wide margin

20

For outdoor Returning toactivities
and leisures hometown

9.5

Respondents: those who answered they plan to travel in Japan or to other countries(several answers possible)

(%)

22.0

11.7

Change for summer vacations in 2024 compared to 2023

Respondents: those who answered they plan to go out during summer holidays(several answers possible)

22.1

13.4

2023

Plans for summer vacations

56.9

16.8

0

60,000

60

17.9

20

65,157

7.3

6.9

14.5

12

10.5

6.6

9.7

8.3

6.7

6

5.1

4.6
1.1

0
Domestic
travelShopping, etc.
in theneighborhood
without goinga long way

Returning tohometown

Pool,amusementpark, theme
park

2023

54.6

(Note 1)
選択肢なし

26.2

2024

56.9

22.1

22.0

0

Outdooractivities,
camping

Watching
Olympics,
sports games(TV at home,etc)Overseas
travel"Oshikatsu"(Note 1)

Not decided
yet

21.0

20.0

(Note 2)
選択肢なし

8.7

選択肢なし
(Note 2)

10.4

20.0

18.3

10.5

7.3

6.9

6.6

Increase
spending

Going along way

Increase
number ofdays

UpgradehotelsReduceexpenses

Going toplacesnearbyBuy more Bring own Downgrade Buy less
Increase
Decrease Decrease
souvenirs food andhotelssouvenirs number of number of number ofdrink topeople todays
people toreducego withgo witheating out(Note 1) Act of enthusiastically supporting someone like an idol singer or actor that one feels particular devotion to(Note 2) Answer not listed in the choice of answers24Ⅳ-4. Inbound Market: 1st half Comparison: 2019 vs. 2024◼

The number of inbound travelers in the 1st half of 2024 increased by 6.9% compared to the same period in 2019. The number of travelers from China
is still below the 2019 level, down 32.3%, while the number of travelers from other countries increased by 21.6%◼

Average travel spending of inbound travelers in the 1st half of 2024 increased by 48.0% compared to the same period in 2019. A shift from shopping
expenditure to service expenditure was seen: Service expenditure showed a 60.8% increase while shopping expenditure increased by only 24.7%.
Among service expenditure, accommodation spending showed the biggest increase of JPY 29,145, which is expected to contribute to the further
growth in ADR

Number of Inbound Travelers (Thousand)1

Average Travel Spending of Inbound Travelers (JPY)3OthersEurope2
U.S.
Hong Kong+21.6%
TaiwanSouth Korea

China

Food/Beverage

Accommodation

Shopping

Average numberof Nights Spent(Note 1)
(Note 2)
(Note 3)

Source: JNTO
France, Germany, Italy, Spain, Russia, Sweden, Netherland, Norway, FinlandPrepared by Asset Manager based on Japan Tourism Agency “Consumption Trend Survey for Foreigners Visiting Japan”

Service
Spending+60.8%

LeisureTransportation

+9.2％

25

Ⅳ-5. Inbound Market: China◼

In Jan. 2023, the Chinese Government ended the Zero-COVID policy and lifted the ban on overseas-leisure travel. Since then, the number of Chineseinternational passengers1 (proxy of number of overall Chinese outbound travelers) has steadily recovered, reaching 88% of the 2019 level in June
2024. However, the recovery has lagged behind that of China’s domestic passenger volume, which has already exceeded the 2019 level. China
Tourism Academy, a Chinese Government think tank, announced in Feb. 2024 that the number of overall Chinese outbound travelers in 2024 is
expected to recover to 84% of the 2019 level2◼

The number of Chinese travelers visiting Japan3 has been recovering with the volume of June 2024 hitting 75% of the same month in 2019 in line withthe recovery of overall Chinese outbound tourists◼

The recovery of Chinese guests at the 73 hotels managed by MHM has generally outperformed the recovery of Chinese inbound travelers to Japan asa whole. In June 2024, the number of room nights sold to Chinese guests was 102% of that in the same month in 2019
2023
Jan.

Bordermeasures
Regulation
ChangeFeb.

Mar.

China: the Zero-COVID
policy ended followed bylifting the ban on Chinese
overseas travel

120
100

83

Jun.

2024
Jul.

Aug.

103

Sep.

Oct.

Nov.

107

112

Chinese Government liftedban on group travel for an
additional 78 countries, such
as Japan, South Korea, andthe U.S.

Thailand started visa
free rule for Chinese
visitors

103

104

97

Malaysia started visa
free rule for Chinese
visitors

120

Mar.

Apr.

May

Jun.

Singapore started
visa free rule for
Chinese visitors

111

108

111

113

80

84

85

102 88

100
82
63

51

42

40

27
7
10 4

12
12 5

33

24

31

26
11

15

18

52
60

24

30

36

60

56

49

42

18

55

54
63
40

Prepared by Asset Manager based on data from Civil Aviation Administration of China
Source: China Tourism Academy
Prepared by Asset Manager based on data from JNTO

82

54

65 63

57
44

35

50

65 65

72 73

72

75

55

34

MHM73 Room Night (Chinese)
1
Chinese Domestic Flight Passenger Volume(Note 1)
(Note 2)
(Note 3)

Feb.

72

80

0

Jan.

112

111

94

Monthly Change（2019 = 100）60

20

Dec.

China: no prior testing
for COVID-19 requiredat the time of entry into
China

• Feb. Chinese Government lifted the ban ongroup travel to 20 countries such as
Thailand and Russia, excluding Japan• Mar.: lifted the ban for additional 40
countries such as France and Italy, etc.

103
89

May

Japan: Bordermeasures for COVID19 ended• Jan. 10, China suspends visa
issuance procedures toJapanese visitors• Jan. 29, resumed the issuanceGroup
travel,Visa

Apr.

Chinese travelers visiting Japan
3
Chinese International Flight Passenger
Volume126

Ⅳ-6. Inbound Market: Outlook
According to a forecast by JTB, the number of inbound visitors in 2024 is expected to exceed the 2019 level 1. A survey conducted by the Development
Bank of Japan and the Japan Travel Bureau Foundation in July 2023 shows that Japan is the most popular destination 2 for the next overseas travel
among both residents of Asia and those of Europe, the U.S., and Australia◼ The number of visitors who visited Japan per 1,000 people in population in China and Southeast Asian countries was far behind those of Hong Kong,
Taiwan, and South Korea as of 20193, and we believe that there is potential for growth of inbound visitors from China and Southeast Asian countries
in the future as per capita national incomes increase◼ Japanese Government has a target of 60 million inbound visitors by 20304◼

Survey of Demand for Travel Abroad among Foreigners (Conducted in July 2023) 2

Changes in Number of Inbound Visitors

Q：Which countries/regions do you want to visit for the next overseas travel? (Top 10)（Thousand）

60,000Residents of Europe,
U.S., and Australia (n=2,557)

Residents of Asia (n=4,857)

65%
41%

35%

26% 26% 26% 24% 22%

30%

20% 19% 19%

26% 26% 25% 23%

22% 20%17% 17%35,00031,88225,066

Potential for Growth of Inbound Visitors from Asia by Country
306

Number of Inbound Visitors per 1,000 People in Population (in 2019)3
207
108
18

2019
(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)

5

2023

5

1

2024
(Forecast)

15

7

Malaysia

China

4

2030
(Gov.’s target)

Source: The 24rd meeting of the Ministerial Council on the Promotion of Japan as a Tourism-Oriented Country
Source: DBJ and Japan Travel Bureau Foundation: Survey on Tourist Travel to Japan from Asia, Europe, the U.S., and Australia (2023)
Prepared by Asset Manager based on data from the Statistics Bureau, Ministry of Internal Affairs and Communications and JNTO.
Number of inbound visitors per 1,000 People in Population is calculated by dividing the number of visitors to Japan from each country
in 2019 by population of each country in 2019 and by multiplied by 1,000
Source: The 23rd meeting of the Ministerial Council on the Promotion of Japan as a Tourism-Oriented Country
Source: JNTO

Hong Kong

TaiwanSouth Korea Thailand

6

5

Philippines Vietnam

2Indonesia27

Ⅳ-7. Inbound Market: Number and Destination Trend of Inbound Repeat Visitors◼

As Japan continues to rank highly among the most desirable travel destinations1, the proportion of repeat visitors (those making their second visit ormore) among overall inbound visitors increased for four consecutive years before COVID-19, and reached 68.0% in 2023. Further increase in repeat
visitors can be expected considering this trend and Japanese Government’s target of 60 million of inbound visitors by 2030 2◼

As repeat visitors are more likely to visit regional areas3 including Hokkaido, Aomori, and Kyushu than first-time visitors (visitors who visit Japanfor the first time), an increase in repeat visitors is expected to result in an increase in stays in regional areas, which could act as a tailwind for theregional hotels in INV’s portfolio
Change in the Number of Inbound Visitors 4 and % of Repeat Visitors5

Destination of Inbound Visitors6

First-time
Visitors
Ranking of Japan as a destination for international travel 1
70,000Residents in
Asia
Residents in
Europe, U.S.,
and Australia

80.0%

#1

#1

#1

#1

#1

#8

#6

#8

#6

#1

（Gov.’s Target）
60,0002
75.0%

60,00068.0%
50,000

61.4%

62.1%

70.0%

64.2%
65.0%

Okinawa

59.3%
60.0%

40,00031,882

11,822

11,41455.0%

28,691

30,00024,04011,07520,00031,192

The % of inboundvisitors who visit
each prefecture is asfollows:

50.0%

25,066
8,021

9,784

15% or more
10% - 14%
5% - 9%1% - 4%
Less than 1%

RepeatVisitors

45.0%

40.0%

10,00014,256

17,616

19,37020,46817,045

35.0%

0

30.0%

2016

2017

2018

Repeat Visitors (Thousand)(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

2019

2020

2023

First-time Visitors (Thousand)

2025

2030

Okinawa% of Repeat Visitors

Ranking of Japan in each of DBJ and Japan Travel Bureau Foundation: Survey on Tourist Travel to Japan from Asia, Europe, the U.S., and Australia (2016-2019, 2023)
Source: The 23rd Ministerial Conference for the Promotion of Tourism Nation
Regional area refers to prefectures other than Chiba, Saitama, Tokyo, Kanagawa, Aichi, Kyoto, Osaka, and Hyogo
Prepared by Asset Manger based on data from JNTO and Japan Tourism Agency
Prepared by Asset Manager based on data from Japan Tourism Agency
Source: Japan Tourism Agency. The survey targets inbound visitors for leisure visiting Japan in 201928

Ⅳ-8. Initiatives by MHM◼

As for banquets and conferences, there has been a shift from holding conferences alone to conferences with banquets, and the number of banquets have been increasing. A similar trend is
expected for the December 2024 FP◼

MHM aims to create demand for tourism centered around culinary experiences across its entire hotel chain. The headquarters' Food and Beverage Department is committed tocontinuously developing products, formulating and guiding food and beverage marketing strategies, conducting regular culinary competitions, supporting the training of chefs, andenhancing service quality. Additionally, multiple executive chefs with top-tier skills in various culinary fields lead the pursuit of excellence in cuisine, not only at their respective hotels but
throughout the entire MHM chain◼

Increased number of sales representatives focused on inbound travel from China, Taiwan, and Korea to strengthen sales capabilities to local agents and proactively worked to capture
inbound demand◼

For European/US customers, implemented sales activities to travel agencies specializing in Europe/US , taking specific conditions under consideration such as room size and dietary
restrictions

Initiatives implemented in the June 2024 FP
Sales expansion through proactive proposal-based marketing

MICE and banquet•

There has been a shift from holding conferences alone to conferences with banquets, and thenumber of banquets have been increasing. A similar trend is expected for the December 2024
FP. Consider various activities to continuously capture demand•

Delivery and take-out service offered at 15 hotels owned by INV account for 3.6% of restaurant
sales at those hotels, and are expected to continue in the future as a certain level of demand has
been established•

Initiatives for expansion and enhancement of client baseTaiwanIncreased inbound sales staff. Number of inquiries/demand from travel agents in Taiwan increased
through the enhancement of the sales capabilities to local agents
Case 1: Hotel MyStays Nagoya Nishiki1
Room nights

Room revenue

Case 2: Tazawako Lake Resort & Onsen1
Room nights(JPY thousand)

x1.4

6,819

x1.8

73,650

1,705

x7.9

244

June
2023
2023年
FP
6月期

•

June
2024
2024年
FP
6月期

June
2023
2023年
FP
6月期

June
2024
2024年
FP
6月期

2023年
June
2023
FP
6月期

1,951

2024年
June
2024
FP
6月期

2023年…
June
2023
FP

2024年…
June 2024
FP

Korea
Expansion of client base through recruitment of Korea-related personnel to capture groupdemand/golf tours, participation in trade fairs in overseas and enhancement of sales to Korean
travel agents
Europe and U.S.
Consider specific conditions required for European/US guests such as room size and dietary
restrictions as their booking lead time and length of stay are longer than other nationalities.
Implement sales activities to Europe/US specified travel agents and propose room rate tables
a year in advance and prepare vegetarian menu, etc.

Demand foraccommodations for midcareer hires2

June 2023 FP

JPY 1,600 thousand
6 hotels

JPY 17,135 thousand
12 hotels

June 2024 FP

JPY 7,642 thousand
17 hotels

JPY 47,878 thousand
15 hotels

JPY 11,890 thousand
10 hotels

JPY 19,210 thousand
14 hotels

December 2024 FP(as of July 18, 2024)•“Study Tours2” orders from overseas in the June 2024 FP exceeded the level in the same period in 2019
due to efforts to uncover demand by leveraging the advantages of the MHM chain network,
approaching overseas specialized travel agents and Japanese universities with a large number ofinternational students. Both “Golden route type3” and “Mid-long term stay type4” showed favorable
results.

•

For domestic sports groups, measures were taken to capture new demand, such as clarifying conditions
for acceptance and prices at MHM managed hotels and proposing sales to sports facilities in the vicinityof hotels, in anticipation of demand to change accommodation facilities due to the sharp rise in hotel
room rates.

15,333

41,981

Demand foraccommodations forinterns

Acquired new accommodation contracts for airline crews from three airlines at three INV hotels withthe recovery of domestic and international flight operations. For existing contracts, successfully
negotiated price increases a the time of contract renewal.

(JPY thousand)x7.0

Demand for accommodations for corporate
interns continued to show a strong booking
trend in 2024 driven by strong hiring
sentiment. Further demand for summer
interns is expected. Demand for mid-careerhires1 is also expected to remain brisk, withbookings at MS Kameido and MS SakaisujiHonmachi scheduled to continue in 2025.

•

Room revenue

4,794

•

•

Changes in sales of various plans at 73 INV-owned hotels (examples)
June 2019 FP

June 2023 FP

June 2024 FP(JPY million)

Dec 2024 FP forecast(as of June 30)

199.7 203.2
104.5

122.5
63.3

60.7

65.9

76.9

124.0 119.6
103.6

13.3
Education trips

Domestic sports groups(Note 1) Taiwanese nationality who booked through Taiwanese travel agents(Note 2) Demand from companies to accommodate mid-career hires to participate in training programs held near the hotel.
(Note 3) Tours for students and teachers from overseas to learn about Japanese culture and environment(Note 4) Tokyo-Kyoto-Osaka-Hiroshima (Note 5) Mainly two weeks to one month travel

Study tours29

Ⅳ-9. MHM: Future Outlook and Strategy◼

The number of inbound visitors to Japan in the June 2024 FP reached 17.7 million, more than 1 million more than the same period in 2019, which marked arecord high. Demand is expected to remain strong, driven by weak Japanese yen. In addition, inbound demand is expected to increase further from various
factors such as an increase in international flights to and from Kansai International Airport at the timing of the switchover to the summer timetable at the endof March 2025, the expansion of the runway at Fukuoka Airport, and the World Expo 2025 in Osaka◼

MHM projects conservative assumptions for domestic business and leisure demand
Assumption of Domestic Demand
LeisureOutlook for
December
2024 FPBusiness

Leisure✓ Although demand is approaching pre- ✓ Business travel frequency is expected to ✓ Demand is expected to increase due to
COVID levels, especially in tourist
trend downward due to the spread of
the weak yen, development of tourist
destinations and resort areas, spending
remote work and the increase in hybrid
destinations, improvement inon leisure travel is expected to be
worktransportation infrastructure, and therestrained due to the impact of theholding of international events
backlash from the end of government✓ Although there is a moderate recovery
travel support and a decline in personalin overall Chinese tourists, recovery toconsumption caused by lower realthe 2019 level is still expected to be
wages due to rising prices
delayed due to a delay in the recoveryof group demand✓ Same as the December 2024 FP

Outlook forJune 2025
FP Onwards

Assumption of Inbound Demand✓ Same as the December 2024 FP✓ The number of travelers is expected todecrease in mid to long term due to thedeclining birthrate and an aging
population. On the other hand, thedemand will remain at the same levelfor several years due to an increase in
the number of elderly people with moreleisure time

Business✓ Although international businessmeetings, conferences, and events are
expected to increase, the frequency ofbusiness travel is expected to decrease
due to the spread of remote work andthe increase in hybrid work

✓ Inbound demand will further increase✓ Same as the December 2024 FP
due to an increase in flights to and from
Kansai International Airport inconjunction with the changeover to theinternational summer timetable, theexpansion of the runway at Fukuoka
Airport, the effects of the World Expo
2025 in Osaka, and a recovery ininternational flights at regional airports

Future Strategyi.

For domestic demand, increased the number of revenue management team members for implementation of more detailed analysis and precise measures. MHM intends to maximize sales
through detailed price adjustments tailored to the change of demand and sales under optimal headcount conditions. In addition, MHM will strengthen the functions of the revenue
management assistance tool that makes full use of AI, realizing labor saving and optimizing pricing

ii.

In terms of securing staff, one of MHMs strong points is the recruitment of new graduates, which continued even during COVID. MHM plans to hire the same number of people in 2024 as in
2023. In addition, a total of 176 graduates1 from “Narita Hospitality Academy”, which opened in June 2023, will join MHM in 2024. MHM plans to continue recruitment in 2025

iii.

Establish a new "Talent Development" section and expand the recruitment and education system to foster specialists who are active in a wide variety of job areas. Promote talent managementthat realizes staffing, training, recruitment, and turnover prevention on a single platform to capture diversifying needs and demandsex) Strengthen competitiveness in attracting human resources by introducing a scholarship repayment support system: MHM will directly repay employees' JASSO scholarships of up to JPY
15,000 per month for up to 10 years(Note 1) Includes interns who will graduate in 2024.

30

Ⅳ-10. Initiatives by Sheraton Grande Tokyo Bay Hotel (SGTB)◼

Incentive demand from life insurance companies, for which demand was sluggish during the COVID period, have revived. In addition, event demand fromconsulting firms and audit firms have increased. For weddings, a shift from small size weddings, which became mainstream during the COVID period, tomedium size weddings have been observed, while demand for large size weddings is decreasing due to a change in values. It is expected to take some time
before the demand recover to the pre-COVID level◼

Signed a new sponsorship with a professional soccer team “JEF UNITED ICHIHARA CHIBA” and received an order for a sponsor party. In addition, the Hotelhas acquired accommodation demand from several national rugby teams and are further strengthening relationships with sports organizations by leveraging thestrengths of the hotel◼

As for group demand, demand for school trips has recovered to near pre- COVID levels. Also, inquiries from domestic and international corporate groupsegments have been increasing. As such, various measures are being considered and will be implemented to ensure that demand is captured

Initiatives to Capture New Demand

Initiatives to Maximize Revenue

Capture new demand with enhanced relationship with local companies
and related organizations

Capture demand for MICE and banquets•

Incentive demand from life insurance companies, for which demand was sluggish during the COVID
period, have revived. In addition, events from consulting firms and audit firms have increased•

Although delivery service was terminated due to shrinking demand, inquiries from group customers led
to three orders (JPY 2.59 million in total) this period•

Focus on utilization of digital tools and digital marketing to capture MICE demand•

Install a large LED screen in the main banquet room “THE CLUB Fuji” (to be completed in Sep. 2024)

Various accommodation packages
and promotion

Weddings••

Wedding fairs are held every weekend for new
couples. Continue to hold the Grand Wedding
Fair three times a year for couples who havealready signed a contract, in an effort to upsellStrengthen the capability to capture demand forpre-wedding photo shoots and wedding afterparties. Sales in the June 2024 FP are 321% and157% of those in the same period in 2023,
respectively

•

•

•
•

Catering business for VIP rooms at ZOZO Marine Stadium in partnership with Chiba
Lotte Marines continues to see growing demand, reaching JPY 3.66 million (34 games) in
the June 2024 FP. Number of VIP rooms increased from 35 to 41 rooms•

Signed a new sponsorship with a professional soccer team “JEF UNITED ICHIHARACHIBA” and received an order for sponsor party. In addition, obtained accommodation
and banquet demands from several national rugby teams and continues to strengthen
relationship with sports teams by appealing hotel’s competitiveness<Accommodation and banquets demand from national rugby teams＞
No. of rooms

Promote sales of triple/forth and suites rooms,
etc., through strict inventory control. Achieved
sales of JPY 2,781 million in the June 2024 FP, up
32% from the same period in 2023
Provide various new accommodation plans suchas Tokyo Disney Resort related products, planwith entrance ticket for sports games, withparking privileges, etc. In addition, wholesale
rates were raised, resulting in an increase in ADR

Operating Costs••

Hotel operating costs this period increased 15% from the same period in 2019 to approx. JPY 5.6 billion,
mainly due to higher personnel costs
Realize cost reduction through promotion of direct bookings, focusing on digital marketing strategies,
controlling energy expenses through the use of systems
Despite general price pressures, such as increases in consumables, equipment, staffing, electricity and gas
rates, as well as the impact of the yen’s depreciation, the hotel continues to increase personnel to improve
service capabilities in line with higher occupancy rate driven by the recovery of inbound demand. The
hotel will appropriately monitor and manage expenditures and inventory related to procurement ofconsumables and food items•

Room revenues Banquet revenues(JPY million)(JPY million)

National team A

369

6.6

10.7

National team B

180

3.0

3.9

National team C

223

5.0

5.5

National team D (as of July 24）

268

6.0

10.7

Received five orders in the June 2024 FP for SDGs program that can be used for school
trips and expected to receive six orders in the Dec 2024 FP and onward (as of July 24).
Focus on capturing further demands with the recovery of school trip demand“Wizkids” and “SKY Experience”•“Wizkids”, renewed on Dec 23, 2022 was used by
47,719 people (45.5% increase from the previous
fiscal period, sales of JPY 23 million, of which
36.2% were visitors) in the June 2024 FP, securing
stable demand•

The “flight simulator” and lodging package plan
launched in August 2022, achieved JPY 0.8
million of sales (21 rooms) in the June 2024 FP
New reading area opened in December
2023

31

Ⅳ-11. Trial Calculation: Business vs. Leisure Demand◼

Based on the assumptions of this trial calculation, business demand of 73 hotels managed by MHM in 2023 was almost equal to that in the June 2024 FP◼

Leisure demand was almost equal to that in 2023

Breakdown of Business / Leisure Demand at 73 Hotels managed by MHM
2019 Annual Average

Two-year Average (2020-2021)：61.3%：26.1%：87.4%

LeisureBusiness
Total

LeisureBusiness
Total

2022 Annual Average：26.6%：18.7%：45.3%：41.7%：26.6%：68.3%

LeisureBusiness
Total

June 2024 FP
Average2023 Annual Average：56.0%：25.2%：81.2%

LeisureBusiness
Total

LeisureBusiness
Total：56.2%：24.6%：80.8%

100%

For Business

For Leisure90%
Changes in
Occupancy
Rate by
Purpose for
Stay(Stackedarea chart)

80%
70%
60%
50%
40%
30%
20%

Jun

Apr

May

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Jul

2023

Aug

Jun

Apr

May

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Jul

2022

Aug

Jun

Apr

May

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Jul

2021

Aug

Jun

Apr

May

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Jul

2020

Aug

Jun

Apr

May

Mar

Jan

Feb

Dec

Oct

Nov

Sep

Jul

2019

Aug

Jun

Apr

May

Mar

Jan

0%

Feb

10%

2024

Premises：Assumed the number of rooms sold on the days before Saturday, Sunday, and national holiday is leisure demand. As for other days, assumed the number of rooms sold is leisure demand if DOR is larger than 2.0, and if DOR isequal or less than 2.0, assumed the number of rooms sold multiplied by [DOR – 1.0] is leisure demand, while the remaining is assumed to be business demand (based on the assumption that all the rooms are used either by one personor two persons)32

Ⅳ-12. Update of the Status of the Cayman Islands◼

In the June 2024 FP, the Hotel Indigo (282 rooms) opened in May 2024, and has been taking an aggressive pricing strategy for opening sales, leading to properties in the market tocompetitively drop their rates. The number of guest rooms in the Cayman Islands in 2024 reached 8,022 with the opening of a new hotel and renovation work at existing hotels, and it isexpected to surpass 9,0002 rooms with the opening of three new hotels in 2025◼

The number of flights to the Cayman Islands showed a steady recovery. The number of flights in the June 2024 FP was 84.8% of the same period in 2019, up 12.3 points from 72.5% in
the June 2023 FP. Stay-over visitors to the Cayman Islands in the June 2024 FP was the third highest visitation recorded for the first half of a year, only behind 2018 and 2019◼

With the expectation of an increase in visitors to the Cayman Islands aided by an increase in flights, the Westin expansion plans are still under consideration to pursue further upside.
The proposed Annex Expansion of the Westin was heard before the Caymanian Central Planning Authority (“CPA”), and the plan was approved in July 2023 by the CPA, subject to anumber of conditions. However, INV needs to resubmit its application to the CPA for redetermination, to specifically address an objection presented to the Planning Appeals Tribunal
regarding the off-site parking variance. The next steps for this project are to resubmit the application to CPA addressing the off-site parking variance, update required investment
analysis for the expansion, and investigate the potential return on investment

Change in Number of Room Accommodations in Cayman Islands 1

Change in Number of Flights3 (same month/period of 2019 = 100% )9,000
or more2

June 2023 FP
vs. June 2019 FP: 84.8％

8,022
7,234

+12.3pt

June 2023 FP
vs. June 2019 FP: 72.5％

7,537
7,005

7,161

2023

2019-2020年

End ofAug. 2020

2020-2021年

End ofAug. 2021

2021-2022年

End ofAug. 2022

2022-2023年

End ofAug. 2023

2023-2024年

End of
May 2024(Note 1) Prepared by Asset Manager based on Cayman Islands Department of Tourism(Note 2) Source: travelmarket.com(Note 3) Source: Aimbridge Hospitality. Total number of flights from the U.S., Canada, and the U.K.

2025年以降（予想）32025 onward(forecast)

2024

# of
Flights
June 2023 FP: 2,154

June 2024 FP: 2,520

33

Ⅳ-13. Status of Overseas Travel◼

According to the United Nations World Tourism Organization (UNWTO), the number of international tourists in March 2024 recovered to 97% of the samemonth in 2019◼

By region, international airline seat volume has increased in all regions between November 2023 and May 2024. All regions but Asia Pacific exceeded the 2019
level. While Asia-Pacific’s recovery is slow, it shows steady progress◼

The U.S. Hotel ADR Index slightly increased compared to the previous FP and the RevPAR Index continued to be above 100

International Travel Environment

Hotel KPIs in the U.S. (Jan 2020-Jun 2024)

International Tourist Arrivals (Global) Index14 (FY2019=100)

The U.S. weekly KPIs Index2 (indexed to 2019)

2020

2021

2022

2023

2024

RevPAR

Occ

ADR

Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar

0

140

-10

-3

-20
-30

120

-40
-50
-60

100

-70
-80
-90

80

-100

Number of seats on international flights by region1 (FY2019=100)

10

60

16

20
6

8

6
0

40

0
-2

-10

-3

-4

-20

-14
-20

-30
Americas

EuropeMiddle East

Nov 2023

AfricaMay 2024(Note 1) Source: UNWTO. The figures for the same month in 2019 are indexed to 100(Note 2) Prepared by Asset Manager based on the data from STR. KPIs of US hotels in each week are indexed as 100 for comparable weeks in 201920

Asia Pacific02020 1H2020
1H2020 2H

2020
2H2021 1H

2021
1H

2021 2H

2021
2H

2022 1H

2022
1H

2022 2H

2022
2H

2023 1H2023
1H2023 2H

2023
2H2024 1H

2024
1H

34

Ⅳ-14. New Hotel Development in Japan and Increase of Construction / Labor Cost
The number of rooms in new hotel developments1 has been decreasing from 2019 through June 2023. It rebounded on December of 2023, but declined
again in June 20242,3,4◼ Indices of both construction material and labor cost have risen sharply5, and future supply of hotels is expected to be limited. Existing full service andresort-type hotels, especially in local areas, will become increasingly important as local infrastructure◼

The Number of Planned New Hotel Room Supply2,3Construction Material Cost Index and Labor Cost Index5

New hotel rooms supplied or planned to be supplied each year4(%)

Hotel rooms planned to be supplied
Hotel rooms supplied

56,212

150

Labor Cost for Construction (2015=100%)

46,69035,631
29,857140

29,194
13,4322020

Construction Materials Cost (2015=100%)

2021

2022

2023

2024

2025

(Estimate)
3

9,713

130

2026

(Estimate)
3120

The Change in the Number of Rooms for New Hotel
Development1,2,4(Number of Rooms)

120,000

110

100,000
Declinedagain

80,00060,000100

40,00020,0000Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun.
2012
(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

90
Feb. 2015

Aug. 2016

Mar. 2018

Oct. 2019

Apr. 2021

Nov. 2022

Jun. 2024

2024

The figures refer to the number of hotel rooms for which expansion plans have been confirmed for each period
Based on the plans confirmed as of each survey by HOTERES
The number of hotel rooms supplied (or planned to be supplied) in each year, based on information already available as of Jun. 15, 2024. This information includes newly built hotels with more than 40 rooms, some auberges with less than 40 rooms, newly built hotels with pets, and some hotels that may compete with"hotels," such as simple lodging businesses with private room types
The new supply plans shown above are based on developers' plans based on HOTERES research as of Jun. 15, 2024, and for some hotels whose planned number of rooms is undetermined or unknown, the analysis assumes an average value of 200 rooms per building. This analysis is intended to determine the trend ofincrease/decrease in supply over the next few years, and the actual number of new supply may differ significantly from the said figures
Source: Construction Research Institute, MLIT

35

Ⅴ. Status of Residential Operations

Ⅴ-1. Performance of Residential Properties◼

For the June 2024 FP, leasing activities were prioritized to maintain and improve occupancy during the busy season from February to April, and theoccupancy rate reached 96.7%, the highest in the past nine fiscal periods◼

Recorded JPY 1,140 million of NOI for 41 residential properties this period, a 1.2% increase compared to the same period last year◼

The portfolio of 41 residential properties and one commercial property owned today is expected to maintain stable earnings

Residential NOI, Actual and Forecast1 (Unit: JPY million)
2020
Based on 41
Residential
Properties

2021

2022

2023

2024

ActualActualActualActualForecast（As of 2/26）

〈A〉

〈B〉

〈C〉

〈D〉

〈E〉

Variance
Forecast（As of 8/26）

Actual〈F〉

vs.
The same
period in
2023

vs.
Forecast
as of 2/26

〈F/D-1〉〈F/E-1〉

1.2%

1.1%

June FP

1,115

1,115

1,113

1,126

1,127

1,140

Dec. FP

1,112

1,110

1,118

1,120

1,124

1,123

0.3%

-0.1%

Full Year

2,228

2,225

2,231

2,246

2,251

2,263

0.8%

0.5%

Change in Occupancy1（ January 2019 – June 2024 ： Average occupancy rate as of the end of the month during each fiscal period ）
97%

96.3%

96.0%

96%

95.8%

96.3%

96.0%

96.7%

96.5%
96.0%

95.3%

95%
94%
93%
June FP

Dec. FP
2020

June FP

Dec. FP
2021

June FP

Dec. FP
2022(Note 1) Based on 41 properties held by INV as of the end of the fiscal period ended June 30, 2024. Excludes one-off insurance-related revenues and expenses as well as one-off custodian fee associated with a trust split for NOI

June FP

Dec. FP
2023

June FP
2024

37

Ⅴ-2. Changes of Residential Rents
For the June 2024 FP, actively sought to increase rent, leading to growth of the average rent of both new lease contracts and renewal contracts

Changes in Rent for New Contracts1
Increase

Flat

Changes in Rent for Renewal Contracts1

Decrease

Increase

100%

100%

80%

54.6%

59.6%

43.6%

21.7%

39.3%

20%
0%
No. of
New Contracts
Occupancy

2

Net Leasing Cost
(No. of months)3

25.0%

13.9%

0.0%

66.5%

63.4%

33.5%

36.6%

Dec.
2021 FP

55.9%

41.8%

25.2%

39.3%

Dec.
2021 FP

Jun.
2022 FP

Dec.
2022 FP

Jun.
2023 FP

Dec.
2023 FP

Jun.
2024 FP

216

282

156

257

161

292

94.7%

96.0%

96.3%

96.5%

96.0%

96.7%

1.23

0.89

1.02

0.73

1.15

0.56

0.0%

0.0%

0.0%

0.0%

50.2%

56.3%

53.2%

61.3%

20%

49.8%

43.7%

46.8%

38.7%

0%

Jun.
2022 FP

Dec.
2022 FP

Jun.
2023 FP

Dec.
2023 FP

Jun.
2024 FP

No. ofRenewals
Renewal
Rate4

355

454

235

430

250

486

79.6%

79.6%

79.7%

74.3%

75.1%

76.8%

Changes in Rent for All Contracts1
Increase

Flat

20.7%
80%
60%

46.6%

22.8%

45.0%

40.2%

Average Rent Increase / Decrease5

Decrease

100%

17.4%

14.7%
43.2%

8.5%
41.1%

0%

(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)

New Lease

(%)

13.2%
46.9%

1.4

2.0

32.2%

Dec.
2021 FP

Jun.
2022 FP

42.5%

42.1%

Dec.
2022 FP

Jun.
2023 FP

50.4%

Dec.
2023 FP

Jun.
2024 FP

Based on the properties owned by INV for the relevant period. The properties INV acquired / disposed during the period are included only for the term when owned by INV
Occupancy is calculated by dividing the sum of total residential leased area by the sum of total residential leasable area at the end of each month of each year
Net Leasing Cost (Multiple of Monthly Rent) = Advertising Expenses (Multiple of Monthly Rent) + Free Rent (Multiple of Monthly Rent) – Key Money (Multiple of Monthly Rent)
Renewal rate is calculated by “Number of Renewals during the Period” ÷ ”Number of Cases Targeted for Renewal during the Period”
Weighted average of monthly rent increase or decrease (%) of new or renewal contracts, or the total of both, compared with previous contracts of properties owned at the end of period

1.8
1.0

0.5

0.3

1.3 1.3 1.3

1.1
0.1

0.7

-

-2.0

39.8%

Total

1.6

1.3

-1.0

32.7%

Renewal

3.0

1.0

40%
20%

Decrease

40%

15.2%
31.4%

31.5%

60%

22.9%

21.4%

0.0%

80%

22.4%

60%
40%

35.3%

Flat

-0.4

-0.4
-1.3

-1.5

-3.0
-4.0

-3.1
Dec.
2021 FP

Jun.
2022 FP

Dec.
2022 FP

Jun.
2023 FP

Dec.
2023 FP

Jun.
2024 FP38

Ⅵ. Financial Condition

Ⅵ. Financial Condition◼

For the June 2024 FP, INV further diversified fund procurement methods by issuing JPY 6 billion in retail bonds (investment corporation bonds for individual
investors) for the first time in February 2024, and the credit rating was upgraded from A (positive) to A+ (stable) by Japan Credit Rating Agency in March 2024◼

Further lengthened borrowing terms and diversified repayment dates. INV borrowed JPY 56.7 billion with a weighted average loan term of 5.9 years for theacquisition of 12 hotels in July 2024, lengthening the average remaining duration of interest-bearing-debt from 2.4 years (as of the end of the December 2023 FP)
to 3.5 years (as of August 26, 2024)

LTV（Appraisal Value Base)2 and Weighted Average Interest Rate3

Summary of borrowing for the acquisition in July 2024
Borrowing Period (year)

Borrowing Amount (JPY
million)7

23,067

6

20,733

6

6,500

1

4,925

Weighted Average:
5.9 years（Total）

JPY

321,497
million

22.4%

17.2%

SMBC

17.2%

SMTB

13.8%

DBJ

4.5%

SBI Shinsei BankTokyo Star Bank

4.1%
2.7%

Aozora Bank

1.7%

San ju San Bank

1.3%

Nomura TB
Fukuoka Bank
Shizuoka Bank
Resona Bank
Suruga Bank

0.8%
0.8%
0.7%
0.6%
0.6%

46.8

46.6
45

43.4

44.5

44.1

1.5

47.6
45.3

44.6

44.2

45.4

44.9

44.5
42.7

42.2

0.90

0.85

0.50

0.50

0.51

0.52

Dec.
2016

Jun.
2017

Dec.
2017

Jun.
2018

1.0

42.3

41.9

40

0.5

0.63

0.53

0.53

0.55

0.54

0.53

0.51

0.49

0.48

0.45

0.43

Dec.
2018

Jun.
2019

Dec.
2019

Jun.
2020

Dec.
2020

Jun.
2021

Dec.
2021

Jun.
2022

Dec.
2022

Jun.
2023

35

0.0
Dec.
2023

Jun. Aug. 26
2024
2024

Maturity Ladder (as of August 26, 2024)

Lender Formation（as of August 26, 2024 ）
MUFG

2.0

45.1

Floating：0.85727%(3M TIBOR + 0.500%)
Floating：0.42182%(1M TIBOR + 0.200%)
Weighted Average:
0.95692%

Mizuho Bank（%）

Average Interest Rate (right)

50

Fixed：1.59750%

Total:
JPY 56,725 million

LTV (left)

55

Floating：1.05727%(3M TIBOR + 0.700%)
Floating：0.95727%(3M TIBOR + 0.600%)

1,500

5

（%）

Interest Rate1

The Chiba Bank
YamaguchiBank
The Chukyo
BankTochigi Bank
Nishi-Nippon
City Bank
Kiyo Bank
Kagawa BankThe San-in
Godo Bank
Ogaki Kyoritsu
Bank
Kiraboshi Bank
Momiji Bank
Aeon BankREIT Bond

0.6%

0.6%

60,081( JPY million)

0.6%
0.6%

41,1450.5%

31,01927,5620.5%
0.3%

21,583

17,962 17,005

0.3%

25,02428,146

18,513
12,89912,883

0.3%

4,560

0.3%
0.3%
0.2%
6.5%

Dec. FP Jun. FP Dec. FP Jun. FP Dec. FP Jun. FP Dec. FP Jun. FP Dec. FP Jun. FP Dec. FP Jun. FP Dec. FP Jun. FP Dec. FP
2024

3,115

2025

2026

2027

2028

2029

2030

2031

(Note 1)

The applicable interest rate as of August 26, 2024

(Note 2)

LTV at the end of fiscal period is 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). LTV as of August 26, 2024 is calculated by the following formula : (Interest-bearing debts as of August 26, 2024, excluding short-term consumption tax loan) / ((Total
appraisal value of the existing properties as of the end of June. 2024) + (Total appraisal value of the 12 hotels as of Jun. 1, 2024)). For the preferred equity interest in the TMK which holds Sheraton Grande Tokyo Bay Hotel as an underlying asset, the acquisition 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

(Note 3)Calculated by the following formula: (Total loan amount outstanding at the relevant time multiplied by applicable interest rate at the relevant time for each) / (The loan amount outstanding at the relevant time)40

Ⅶ. ESG Initiatives

Ⅶ. ESG Initiatives
Ⅶ-1. ESG Initiatives by INV
◼
◼
◼

◼

First ESG report issued by INV
Executed refinance with green loans in January and March in 2024 based on the green finance framework establish to implement green finance
Acquired additional external environmental certification for seven hotels and one residential property bringing the number of hotels with environmental
certification to 22 properties
Established DEI policy to nourish an inclusive organizational culture and to establish an inclusive value chain, and introduced a "Qualification Acquisition
Support Program" to cover a certain amount of expenses required to acquire and maintain qualifications for employees every year to create a comfortable
work environment and develop and maintain excellent human resources
Issuance of the ESG report

External Certifications

Issued the first ESG report in June 2024 in order toinform our unitholders and various otherstakeholders about the major ESG-related initiatives
implemented by INV and CIM and promote theirunderstanding of these efforts. The report will be
issued annually.

BELS1Certification

Newly acquired BELS Certification for four of INV’s hotels, bringing thenumber of the properties with BELS Certification to 19 properties＜Hotels newly acquired the certification＞

https://www.invincible-inv.co.jp/en/upd/ESGreport2024_EN.pdf★★★★★

Hotel MyStays Haneda, Hotel MyStays Matsuyama★★★★

Hotel MyStays Kanda, Hotel MyStays Aomori Station

Green finance

CASBEE Certification for Buildings and Certification for CASBEE for Real Estate2

Executed refinance with green loans in January and March in 2024 based on thegreen finance framework established to implement green finance. INV willconsider leveraging green finance as a financial method appropriately

Acquired CASBEE Certification for Buildings for three more hotels and CASBEE for Real
Estate for one more residence property. Eight properties owns CASBEE Certification＜Total amount of green finance＞

Name of green bonds/loans＜Hotels newly acquired the certification＞
CASBEE Certification for Buildings

Date ofissuance/
borrowings

Term

Amount(JPY
million)9th series unsecured corporate
bonds (Green bond)Sep. 21, 2023

5 years

1,700

10th series unsecured
corporate bonds (Green bond)Dec. 14, 2023

5 years

1,800

New Syndicate Loan (012)
5th tranche (Green loan)

Jan. 16, 2024

6 years

8,970

New Syndicate Loan (013)
1st tranche (Green loan)

Mar. 14, 2024

6 years

1,029

Hotel Epinard Nasu,
Rank B+
Hotel MyStays Yokohama Kannai

CASBEE for Real Estate
Rank A Royal Parks Seasir Minami-Senju

RankＢ- Hotel MyStays Sapporo Station◼ INV in 2023 GRESB Real Estate Assessment 3

GRESB Rating“3-Star”

GRESB Public Disclosure“A Level”, the highest level(Note 1) BELS is a third-party certification system that evaluates and certifies the energy-saving performance of a building that the operators are required to make efforts to display under the Act on Improving Energy Consumption Performance for Architectural Structures. Houses andbuildings 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-star scale
based on energy conservation performance (from one star “★” to five stars “★★★★★”), with five stars meaning the highest energy conservation performance. Also, two stars or more represent that the building meets the existing energy conservation standard(Note 2) CASBEE is a method that comprehensively assesses the quality 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. CASBEE Certification for Buildings (Existing Buildings) scores buildings based on the environmental quality and the environmental load reduction of buildings that are at least one year old after completion. Assessment results by CASBEE are indicated on ascale 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 of buildings by
CASBEE in real estate evaluation. The assessment results are given one of four ranks: Rank S "★★★★★", Rank A "★★★★", Rank B+ "★★★", and Rank B- "★★"
(Note 3) GRESB is an annual benchmarking assessment to measure ESG (Environmental, Social, and Governance) integration of real estate companies and funds. The GRESB Real Estate Assessment is characterized by evaluating sustainability initiatives of real estate companies, REITs,
and real estate funds, rather than targeting individual real estate. The GRESB rating is a relative evaluation based on the overall score, with the highest rating being 5-star42

Ⅶ-2. ESG Initiatives by MHM◼
◼

MHM has been leveraging subsidies provided by the Ministry of the Environment (SHIFT project) to reduce CO2 emissions and energy costs
Since its opening in 2023, a total of 159 interns1 have completed training at “Narita Hospitality Academy,” which specializes in hotel-specific training forforeign technical interns. The interns finished their training and have started working at MHM managed hotels, promoting diversity in human resources

E

S

Initiatives for Environment

Energy-saving construction using Ministry of the Environment subsidy (SHIFT Project)
・Hotel Epinard Nasu, Hotel MyStays Gotanda Station, Hotel MyStays Ueno East andHotel MyStays Nagoya-Sakae received subsidies of JPY 96.8 million in total (about onethird of the total investment) from the Ministry of the Environment’s “Project for the
Promotion of Leading Decarbonization Initiatives in Factories and Business Sites (SHIFT
Project*)” to replace steam boilers, hot water boilers, etc. with heat pump chillers. The
hotels aim to reduce CO2 emissions and energy costs through reduction of fuelconsumption by improvement of energy efficiency and reduction of energy power
consumption by removing cooling water pumps and cooling towers.
* Projects that support initiatives that serve as role models for decarbonization (setting reduction targets, formulating reduction plans,
and implementing facility upgrades, electrification, fuel conversion, and operational improvements) at factories and business sites toachieve Japan's 2030 GHG reduction targets and achieve carbon neutrality in 2050.

◆CO2 Reduction Plan (case of Hotel Epinard Nasu)
Status in 2023
Entire business site
Main systems

Collaboration with local community
・Art Hotel Nippori Lungwood (acquired on July 31, 2024)

6,121

11.7％

5,403

(t-CO2/year)

reduction(t-CO2/year)(t-CO2/year)

Promotion of diversity in human resources
・Opening of “Narita Hospitality Academy”
Opened “Narita Hospitality Academy” on June 1, 2023, in
Narita city, Chiba prefecture, which is a post-arrival training
facility specializing in hospitality internships for foreigntechnical interns. The training contributes to the developmentof hospitality personnel by providing a general Japanese
language program as well as the spirit and culture of Japanesehospitality, in the aim to make them acquire the knowledge
and specialized skills as hotel staff. Since its opening, total 159 interns1 participated in the
training and started to work at MHM managed hotels. In 2024, further 107 interns will
participate in the training.
(Note 1) Total number of interns from the first term to the fifth term (graduated in July 2024)

2026 Target

1,416

Initiatives for Society

50.7％

698

reduction(t-CO2/year)

LED Conversion Work・Hotel Epinard Nasu:
Plan to implement LED conversion work including fixture retrofitting as production of standard
fluorescent lamps will be ended by the end of 2027
- Lighting in the parking and lighting for signboards* Electricity cost expected to be reduced: JPY 335 thousand/year (ROI 95.8％)- Downlights at common passageway on the first and the second floor at the main building* Electricity cost expected to be reduced: JPY 979 thousand/year (ROI 42.6％)- Lightings in the banquet rooms at the main building* Electricity cost expected to be reduced: JPY 291 thousand/year (ROI 30.3％)
・Art Hotel Hirosaki:
Plan to achieve energy reduction through LED conversion in all buildings* Electricity cost expected to be reduced: JPY 3,805 thousand/year (ROI 12.6％)

Showcases displaying and selling traditional crafts createdby artisans in Arakawa Ward were installed on the first-floor
lobby, utilizing Arakawa Ward's "Subsidy to Promote
Utilization of Accommodation Facilities Utilization". In
addition, cloth pouches and hairpins made at welfare
facilities in the Arakawa Ward are also displayed for sale. It
contributes to promote communication with guests, to appeal
attractiveness of Arakawa Ward as a representative hotel in the area, and to strengthening
relations with local community.
＜Cost＞
Total project cost: approx. JPY 2.3 million (of which, approx. JPY 1.4million of subsidy)

SDGs Event “Mystays Charity Market”
・Art Hotel Osaka Bay Tower (acquired on July 31, 2024)
Expanded the “Matching Project”, a project that had been
implemented among group hotels to reuse products as much as
possible, to the general public and organized an event at Art Hotel
Osaka bay Tower to sell items such as tableware, furniture, appliances,
etc. that are no longer used in the establishments due to renovation or
renewal. Hotel received 635 visitors and approximately JPY 1 million
of profits were donated to an international NGO “Plan International”.

43Appendix (1)KPIs of Hotels acquired in July 2024 (1)(2023 Actual1, 2024 Simulated2, 2026 Appraisal3)
Room Revenue

Food & Beverage Revenue

Other Revenue

GOP Margin
JPY million

Art Hotel Osaka Bay Tower & Solaniwa Onsen4

5,628

6,526

Hakodate Kokusai Hotel

2,271

6,928
3,010

Hotel MyStays Kumamoto Riverside896

Art Hotel Nippori Lungwood

3,472

3,890

Art Hotel Aomori

847

926

696

1,855
1,404

Kamenoi Hotel Izukogen

1,278

1,068
966

1,081

512

(Note 1)

Based on the information provided from the sellers(Note 2)2024 simulated figures are calculated by combining the actual monthly performance from January to May 2024 and forecasted monthly performance from June to December 2024 estimated by INV. Pre-acquisition performance is based on actual results provided by sellers and adjusted to reflect trust fee and insurance premiums assuming the property had been held by INV(Note 3)

Numbers are from appraisal report as of June 1, 2024. They are assumed numbers for the normal year (Approximately three years by DCF method) assessed by each appraisal firm under certain preconditions(Note 4)

Numbers are based on the profits and losses of hotel facilities and onsen facilities (common area under the management bylaws are not included). The revenue from the onsen facilities is included in “Other Revenue”

45

KPIs of Hotels acquired in July 2024 (2)(2023 Actual1, 2024 Simulated2, 2026 Appraisal3)
Room Revenue

Food & Beverage Revenue

Other Revenue

GOP Margin
JPY million

Art Hotel Oita

919

1,013

Art Hotel Kokura New Tagawa

Art Hotel Miyazaki Sky Tower

1,143
1,728

1,921

676

789

865

1,188

Art Hotel Kagoshima

Kamenoi Hotel Hikone

Kamenoi Hotel Nara

1,303
886

1,060

733

807

540

569

627

634

(Note 1)

Based on the information provided from the sellers(Note 2)2024 simulated figures are calculated by combining the actual monthly performance from January to May 2024 and forecasted monthly performance from June to December 2024 estimated by INV. Pre-acquisition performance is based on actual results provided by sellers and adjusted to reflect trust fee and insurance premiums assuming the property had been held by INV(Note 3)

Numbers are from appraisal report as of June 1, 2024. They are assumed numbers for the normal year (Approximately three years by DCF method) assessed by each appraisal firm under certain preconditions

46

Unitholder Benefit Program for Invincible Unitholders◼

INV introduced the Unitholder Benefits Program1 with the goal of increasing unitholders satisfaction and expanding the investor base◼

Eligible unitholders can stay at a discounted rate at the Sheraton Grande Tokyo Bay Hotel and at all MyStays group hotels (including the former Kanpo
no Yado hotels)◼

The revenue2 for the June 2024 FP for MyStays hotels from the Unitholder Benefits Program increased by approximately 2.1 times compared to the same
period last year

Eligible Hotels:
Sheraton Grande Tokyo Bay Hotel and All hotels managed by MyStays3

Overview of Unitholder Benefit Program1
Applicable Hotels

Eligible
Unitholders

Sheraton Grande Tokyo Bay Hotel◼ Sheraton Grande Tokyo Bay Hotel◼ All hotels managed by MyStays3
All unitholders who hold Invincible unit(s) and whose names
are on Invincible’s Unitholders’ Registry as of these record
dates:✓ June 30 and December 31 of each year

Benefit Program

(1)

(2)

Eligible Hotels

Sheraton Grande Tokyo Bay
Hotel

All MyStays Hotels

Details

10% discount from BAR4

10% discount from BAR4

By telephone or email

Via dedicated website

Hotel Reservation

Available Period5

Hotel MyStays
Premier Kanazawa

Kamenoi Hotel Beppu

Hotel MyStays
Premier Akasaka

Fusaki Beach Resort
Hotel & Villas◼ From April 1 to November 30(eligible unitholders as of December 31)◼ From October 1 to May 31(eligible unitholders as of June 30)(Note 1) The details of the unitholder benefit program described above is what Invincible provides as of today, and the program may be changed or abolished in the future(Note 2) Revenue for 6 months from January 1, 2024 to June 30, 2024 generated from the unit holder benefit program(Note 3) All hotels operated by MyStays Hotel Management Co., Ltd., which are listed on the Official Site of My Stays Hotel Group (https://www.mystays.com/en-us/). Hereafter the same on the page
(Note 4) BAR (Best Available Rate) refers to the lowest price at the time of booking(Note 5) Available Period represents a period during which you can lodge by using the unitholder benefit program. To enjoy the unitholder benefit program, you actually need to lodge during the available period

Hotel Epinard Nasu

47

Inbound Market: Inbound Visitors to Japan by Country◼

The number of inbound visitors for the first six months of 2024 showed steady growth, 6.9% higher than that in the same period of 2019◼

In the first six months of 2024, the number of Chinese travelers accounted for 17.3% of total inbound travelers, while it accounted for 27.2% of inboundtravelers in 2019. As such, the number of inbound visitors is expected to further increase due to the recovery in the number of Chinese tourists

Inbound Visitors to Japan by Country
2015

2016

YoY

(thousands of people)

2017
YoY

2018
YoY

2019
YoY

2020
YoY

2021
YoY

2022
YoY

2023
YoY

China

4,994 +107.3%

6,374+27.6%

7,356+15.4%

8,380+13.9%

9,594+14.5%

1,069-88.9%

42-96.0%

189 +347.5%

South Korea

4,002+45.3%

5,090+27.2%

7,140+40.3%

7,539

+5.6%

5,585

-25.9%

488-91.3%

19-96.1%

1,013 +5244.9%

Taiwan3,677+29.9%

4,168+13.3%

4,564

+9.5%

4,757

+4.2%

4,891

+2.8%

695

-85.8%

5-99.3%

331 +6500.9%

Hong Kong

1,524+64.6%

1,839+20.7%

2,232+21.3%

2,208

-1.1%

2,291

+3.8%

346

-84.9%

1-99.6%

269

Thailand797+21.2%

902+13.2%

987

+9.5%

1,132

+14.7%

1,319+16.5%

220-83.3%

3

Malaysia

305+22.4%

394+29.1%

440+11.5%

468

+6.6%

502

+7.1%

77

-84.7%

Indonesia

205+29.2%

271+32.1%

352+30.0%

397+12.6%

413

+4.0%

78

Philippines268+45.7%

348+29.6%

424+21.9%

504+18.8%

613+21.7%

Vietnam185+49.2%

234+26.1%

309+32.1%

389+25.9%

495

The U.S.

1,033+15.9%

1,243+20.3%

1,375+10.6%

1,526+11.0%The U.K.

258+17.5%

292+13.1%

310

+6.2%

334

France214+20.0%

253+18.3%

269+6.0%

Canada231+26.5%

273+18.1%

306

Australia376+24.3%

445+18.4%

Others1,666+24.0%

1,914

Total

19,737+47.1%

24,040Source: JNTO
(Note 1) Figures are rounded up to the indicated unit

2024
Jan-JunJan-JunYoY

YoY
2,425 +1182.3%

3,068+415.8%6,959+587.1%

4,442+42.0%

4,202 +1169.2%

2,979+68.3%+21409.6%

2,114+685.2%

1,276+40.3%-98.7%

198 +7082.7%

996+402.7%618+24.2%

2-97.6%

74 +3941.5%

416+461.0%242+24.5%-81.2%

5-93.3%

120 +2199.9%

429+258.7%264+30.8%

109-82.2%

6-94.8%

127 +2156.0%

622+390.6%402+44.9%+27.3%

153-69.2%

27-82.6%

284 +968.6%

574+102.0%332+10.3%

1,724+12.9%

219-87.3%

20-90.9%

324 +1515.4%

2,046+532.4%1,343+38.1%+7.6%

424+27.0%

51-88.0%

7-85.7%

58 +688.3%

322+459.2%

218+45.5%

305+13.5%

336+10.3%

43-87.2%

7-83.7%

53 +651.7%

277+425.6%184+50.9%+11.9%

331

+8.2%

375

+13.5%

53-85.8%

4-93.4%

56 +1480.9%426+662.0%272+48.6%

495+11.2%

552+11.6%

622+12.5%

144-76.9%

3-97.7%

89 +2613.6%

613+591.6%462+68.1%+14.9%

2,133+11.5%

2,369+11.1%

2,699+13.9%

372-86.2%

95-74.4%

649 +580.9%

2,645+307.8%1,674+47.6%+21.8%

28,691+19.3%

31,192+8.7%

31,882

+2.2%

4,116

-87.1%

246-94.0%

3,832 +1458.6%

25,066+554.1%

17,777+65.9%

48

Domestic Portfolio Map (as of August 26, 2024)
No. ofProperties1

No. ofHotelsNo. ofResidentials

No. ofOthers

146

104

41

1

(Note 1) Includes Westin Grand Cayman Seven Mile Beach Resort & Spa and Sunshine Suites Resort & Spa49

Track Record of External Growth◼

INV has built an irreplaceable diversified portfolio centered on the acquisitions of hotels◼

INV has the largest hotel portfolio among J-REITs1

Growth of AUM2

653,066(JPY million)

Top 5 J-REITs’ Hotel Portfolio1(JPY million)

Hotel612,281548,646

Residential

497,979

Others502,717494,766

491,416

448,362
453,108

353,695

612,281266,619352,607434,373450,609450,609507,861
450,631226,650

248,326
173,815
117,927

165,832

181,032

142,217

96,162

77,16145,37358,083
19,077
2013

58,083
14,4702014

63,182
14,4702015

71,116

93,01390,154

14,4702016

12,356
2017

5,600
2018

58,0055,600
201946,5075,600
2020

41,8362,320
2021

38,4652,320
2022

38,4652,320
2023

38,4652,320
Aug 26,2024

No. ofproperties3

78

91

111

124

126

132

147

142

134

128

134

146

Hotel

0

20

37

48

54

66

84

86

86

86

92

104

Residential

63

63

66

68

67

64

61

54

47

41

41

41

Others

15

8

8

8

5

2

2

2

1

1

1

1

INV

JHR HRR UUR MTR(Note 1) As of August 1, 2024
(Note 2) Based on acquisition price at the end of each fiscal period and acquisition price of SGTB interest in INV’s portfolio is calculated by applying the amount of preferred equity interest contribution by INV to the JV TMK. For overseas hotels, “The Westin Grand Cayman Seven Mile Beach Resort & Spa” and “Sunshine Suites
Resort”, the amount of TK investment to the SPC which held the leasehold of the hotels is deemed as the acquisition price and included regarding for 2018. For 2019 onward, the book value of the hotels as of May 9, 2019, which are converted into JPY amount via the forward exchange rate of USD 1=JPY 110.45 based on theforeign exchange forward implemented in connection with the original TK investment in the Cayman SPC (contract thereof was entered into on July 26, 2018 and implemented on September 26, 2018)(Note 3) The amount of preferred equity interest contribution by INV to the JV TMK and the amount of TK investment by INV to the SPC are counted according to the number of properties of underlying assets and included the calculation which are based on the property type of the assets

50

Sponsor Pipeline
FIG manages an extensive nationwide hotel portfolio consisting of over 50 properties, approximately 6,000 rooms most of which are managed by
MHM, in addition to the 91 MHM managed hotels owned by INV◼ Consonant Investment Management, the asset manager of INV, and FIG are actively discussing potential acquisition opportunities for INV, based on
the status of renovations and rebranding, stabilization of operations, and other factors◼

Hotel MyStays
Art Hotel
Kamenoi Hotel
Flexstay Inn
MyStays Collection and Others（Note 1）This page shows the properties owned by FIG or its affiliates and operated mainly by MHM as of the date of this material. As of the end of July 2024, INV has no preferential negotiation right on any of these properties, and therefore, there is no assurance that INV will be given the opportunity to negotiate to acquire any ofthese properties, including the properties subject to active discussion on potential acquisition opportunities. In addition, even if INV will be given the opportunity to acquire any of these properties, there is no assurance that INV will actually acquire such properties

51

Summary of Appraisal Value and NAV per Unit
Trend of Appraisal Value(JPY million)

Unrealized Gain1

Book Value

700,000

629,041

600,000
500,000
400,000

400,007411,542

72,29774,607

462,580472,263

79,93083,960382,649

388,302

Dec. 2018

Jun. 2019

560,963

557,099542,336

530,860

532,550

530,212532,570

91,516523,699

65,08065,30770,38571,89584,43589,278120,464

465,583

477,256

465,553

462,164

451,804

445,776

443,291

440,498

Dec. 2019

Jun. 2020

Dec. 2020

Jun. 2021

Dec. 2021

Jun. 2022

Dec. 2022

657,902133,259

164,661495,782

493,241

Jun. 2023

Dec. 2023

Jun. 2024

58,53959,94819,75919,780Jun. 2023

Dec. 2023

300,000
200,000

327,709336,934

Dec. 2017

Jun. 2018

100,000
0

Trend of NAV per Unit2(JPY)

Unrealized Gain per Unit

70,00060,00051,407

51,84951,55552,21253,79650,00040,00064,69949,44415,083

15,565

14,105

14,81615,010Dec. 2017

Jun. 2018

Dec. 2018

Jun. 2019

Dec. 201949,46450,31250,57552,64553,447

10,674

10,712

11,545

11,792

13,84914,643

Jun. 2020

Dec. 2020

Jun. 2021

Dec. 2021

Jun. 2022

Dec. 2022

24,441

30,00020,00010,0000(Note 1) Unrealized Gain = End‐of‐period Appraisal Value – End-of-period Book Value(Note 2) NAV per unit is calculated by the following formula: (End‐of‐period Amount of Net Assets ‐ Undistributed Profit + Total year-end appraisal value of portfolio ‐ Total book value of portfolio) ÷ Investment Units outstanding as of the end of each fiscal period

Jun. 2024

52

Financial Impact of Foreign Exchange Fluctuation (vs. Dec. 2024 FP Forecast)
Assumptions Underlying the December 2024 FP Forecast•••

Management contract revenue (= “Flow”) for the Dec. 2024 FP: USD 12.9 million
Hedged portion1: USD 7.6 million
Non-hedged portion: USD 5.3 million
Exchange rate of USD 1 = JPY 150 for the non-hedged portion
Cash and bank deposits and receivables in USD (= “Stock”) as of the beginning of the Dec. 2024 FP: USD 23.0 million

Impact of Foreign Exchange Fluctuation on the Forecast
Summary of the Impactof Foreign Exchange
Fluctuation

Impact on Flow
Impact on non-hedged
portion (USD 5.3 million)

Impact on Stock
Impact on the market
value in JPY of cash andbank deposits andreceivables in USD

Impact (= Variance from the forecast)Items on which theimpact is recorded

Management contract
revenue
Forecast:
JPY 2,020 million

Foreign exchange
profit/loss
Forecast:－(Note 1) For the details of foreign exchange forward, please refer to the press release “Notice concerning Execution of Foreign Exchange Forward” dated March 10, 2023

JPY 130= USD 1

JPY 140

JPY 150(Baseline)

JPY 160

JPY-106 million

JPY-53 million－

JPY+53 million

The impact is calculated by the following formula factoring in thechange in Stock during the FP:(Period-end balance of Stock in USD × Period-end foreign Exchange)-[(Period-beginning balance of Stock in USD × Period-beginningforeign Exchange)± (Change in Stock in USD × applicable rate )]53

Financial Impact of Foreign Exchange Fluctuation (vs. Jun. 2025 FP Forecast)
Assumptions Underlying the June 2025 FP Forecast••

Management contract revenue (= “Flow”) for the June 2025 FP: USD 31.0 million
Hedged portion1: USD 19.6 million
Non-hedged portion: USD 11.4 million
Exchange rate of USD 1 = JPY 150 for the non-hedged portion

Impact of Foreign Exchange Fluctuation on the Forecast
Summary of the Impactof Foreign Exchange
Fluctuation

Impact on Flow
Impact on non-hedged
portion(USD 11.4 million)

Impact on Stock
Impact on the market
value in JPY of cash andbank deposits andreceivables in USD

Impact (= Variance from the forecast)Items on which theimpact is recorded

Management contract
revenue
Forecast:
JPY 4,630 million

Foreign exchange
profit/loss
Forecast:－(Note 1) For the details of foreign exchange forward, please refer to the press release “Notice concerning Execution of Foreign Exchange Forward” dated May 31, 2024

JPY 130= USD 1

JPY 140

JPY 150(Baseline)

JPY 160

JPY-229 million

JPY-114 million－

JPY+114 million

The impact is calculated by the following formula factoring in thechange in Stock during the FP:(Period-end balance of Stock in USD × Period-end foreign Exchange)-[(Period-beginning balance of Stock in USD × Period-beginningforeign Exchange)± (Change in Stock in USD × applicable rate )]54

Appendix (2) - Financial and Operational Data

Key Operational Data for Variable Rent Hotels (1)Property

Location# ofAcquisition

rooms

Month

Occupancy

ADR (¥)

RevPAR (¥)

GOP (¥ mn)

Daily Ratio

Overseas Sales Ratio

Jan.-Jun. 2024 Actual

Jan.-Jun. 2024 Actual

Jan.-Jun. 2024 Actual

Jan.-Jun. 2024 Actual

Jan.-Jun. 2024 Actual

Jan.-Jun. 2024 Actual

Y-o-Y (pt)

Y-o-Y

Y-o-Y

Y-o-Y

Y-o-Y (pt)Y-o-Y (pt)

D1

MS Kanda

Chiyoda-ku, Tokyo126

May 2014

86.9%

5.8

11,863

12.4%

10,314

20.4%

125

19.3%

99.4%

5.9

33.6%

9.9

D2

MS Asakusa

Sumida-ku, Tokyo160

May 2014

88.0%

3.9

8,184

37.2%

7,205

43.6%

113

55.2%

73.9%

20.0

44.8%

1.8

D3

MS Kyoto-Shijo

Kyoto, Kyoto

224

Jul 2014

70.2%

-0.8

12,834

28.6%

9,014

27.1%

195

46.4%

100.0%

0.0

50.9%

8.5

D4

MS Shin-Urayasu CC.

Urayasu, Chiba

175

Jul 2014

91.5%

4.2

13,213

11.1%

12,092

16.5%

232

20.7%

100.0%

0.0

28.3%

9.1

D5

MS Maihama

Urayasu, Chiba

90

Jul 2014

96.7%

0.0

23,58518.7%

22,808

18.7%

227

22.6%

100.0%

0.0

43.8%

5.4

D6

MS Dojima

Osaka-shi, Osaka141

Jul 2014

78.9%

3.0

13,625

2.1%

10,745

6.1%

175

8.8%

100.0%

0.0

39.2%

4.9

D7

MS Nagoya-Sakae

Nagoya, Aichi

270

Jul 2014

85.9%

2.2

7,545

13.1%

6,477

16.0%

151

22.8%

99.9%

-0.1

24.2%

7.8

D8

MS Sakaisuji-Honmachi

Osaka, Osaka190

Jul 2014

74.6%

-3.2

7,663

7.9%

5,716

3.5%

96

13.4%

77.4%

-3.8

30.2%

4.1

D9

MS Yokohama

Yokohama, Kanagawa

194

Jul 2014

88.8%

3.5

10,137

6.4%

8,996

10.7%

159

14.9%

98.4%

-1.3

27.1%

6.0

D10 MS Nippori

Arakawa-ku, Tokyo93

Jul 2014

86.9%

2.5

9,438

18.9%

8,202

22.4%

76

27.0%

65.6%

-11.4

45.9%

14.1

D11 MS Fukuoka-Te njin-Minami

Fukuoka, Fukuoka

177

Jul 2014

88.2%

2.0

9,971

18.0%

8,792

20.8%

145

20.5%

100.0%

0.2

37.2%

10.1

D12 FSI Iidabashi

Shinjuku-ku, Tokyo59

Jul 2014

82.4%

-3.2

12,934

44.5%

10,663

39.1%

64

51.2%

96.3%

7.3

36.8%

5.2

D13 MS Ue no-Inaricho

Taito-ku, Tokyo72

Jul 2014

90.2%

-2.6

9,567

51.1%

8,626

46.9%

58

59.7%

89.9%

16.4

56.2%

-4.5

D14 FSI Shinagawa

Shinagawa-ku, Tokyo55

Jul 2014

89.4%

-4.0

10,643

16.6%

9,510

11.6%

47

10.6%

92.6%

7.3

24.4%

-1.0

D15 FSI Tokiwadai

Itabashi-ku, Tokyo129

Jul 2014

87.6%

-0.8

5,412

23.1%

4,739

22.0%

57

30.4%

28.8%

9.5

35.5%

15.3

D16 FSI Sugamo

Toshima-ku, Tokyo104

Jul 2014

80.2%

0.4

5,572

23.4%

4,466

24.0%

44

47.4%

32.8%

-4.5

12.6%

5.5

D17 MS Ote mae

Osaka, Osaka110

Jul 2014

77.9%

-6.7

9,484

12.9%

7,386

4.0%

73

11.0%

66.4%

-4.0

34.5%

-0.9

D18 MS Kiyosumi-Shirakawa

Koto-ku, Tokyo57

Jul 2014

78.3%

0.7

15,71632.0%

12,306

33.2%

72

38.6%

100.0%

6.0

69.1%

8.5

D19 FSI Nakanobu P1

Shinagawa-ku, Tokyo39

Jul 2014

81.7%

-2.1

6,335

13.2%

5,176

10.4%

17

17.8%

43.7%

15.4

7.0%

1.8

D20 FSI Nakanobu P2

Shinagawa-ku, Tokyo22

Jul 2014

81.1%

-6.4

6,225

14.0%

5,047

5.6%

8

12.5%

52.4%

17.8

6.4%

2.6

D21 APA Hote l Yokohama-Kannai (Note 2)

Yokohama, Kanagawa

451

Fe b 2015

83.8%

-

8,613

-

7,222

-

224

-

-

-

-

-

D22 MS Hakodate -Goryokaku

Hakodate , Hokkaido

208

Fe b 2015

67.2%

-3.3

7,786

8.8%

5,233

3.7%

94

11.9%

100.0%

0.0

10.8%

-0.3

D23 FSI Shirogane

Minato-ku, Tokyo84

Fe b 2015

78.4%

-4.6

7,459

31.2%

5,848

23.9%

47

22.3%

52.5%

11.2

41.6%

16.5

D24 MS Hane da

Ota-ku, Tokyo174

Jul 2015

94.4%

2.9

12,764

6.1%

12,052

9.4%

195

10.6%

100.0%

0.0

39.0%

7.2

D25 MS Kame ido P1

Koto-ku, Tokyo265

Jul 2015

86.1%

-1.6

7,719

34.2%

6,647

31.7%

204

41.1%

47.5%

15.6

20.8%

-5.7

D26 MS Ue no-Iriyaguchi

Taito-ku, Tokyo97

Jul 2015

91.1%

6.5

13,25849.4%

12,075

60.8%

120

75.6%

100.0%

6.4

83.9%

20.5

D27 MS Kame ido P2

Koto-ku, Tokyo175

Jul 2015

85.5%

-2.4

7,916

34.5%

6,768

30.8%

129

35.8%

65.2%

25.1

29.6%

-4.7

D28 MS Shimizu

Shizuoka, Shizuoka

152

Jul 2015

83.3%

-1.8

7,375

9.7%

6,147

7.4%

71

5.0%

100.0%

0.0

21.5%

6.6

D30 FSI Higashi-Jujo

Kita-ku, Tokyo88

Jul 2015

83.7%

-3.2

5,464

21.5%

4,572

17.0%

31

26.2%

54.7%

2.1

35.9%

6.1

D31 MS Utsunomiya

Utsunomiya, Tochigi

116

Jul 2015

85.9%

-1.1

8,667

7.0%

7,442

5.6%

100

33.7%

100.0%

0.0

13.0%

-1.9

D32 FSI Kawasaki-Kaizuka

Kawasaki, Kanagawa

64

Jul 2015

82.3%

-0.8

5,909

13.5%

4,864

12.4%

26

21.4%

18.7%

-0.6

4.6%

-0.3

D34 FSI Kawasaki-Ogawacho

Kawasaki, Kanagawa

62

Jul 2015

88.0%

2.9

5,383

7.0%

4,739

10.7%

25

18.5%

45.9%

12.6

10.2%

4.7

D35 FSI Ekoda

Ne rima-ku, Tokyo210

Aug 2015

86.8%

9.3

5,995

13.4%

5,202

27.1%

115

34.0%

37.3%

5.1

12.1%

5.6

D38 MS Shinsaibashi

Osaka, Osaka54

Jan 2016

83.8%

1.5

13,725

5.6%

11,506

7.5%

57

10.8%

100.0%

0.0

69.1%

10.5

D43 MS Gotanda Station

Shinagawa-ku, Tokyo384

Mar 2016

91.8%

2.6

14,541

17.0%

13,347

20.5%

600

26.3%

100.0%

0.0

31.0%

4.0

D44 Hote l Epinard Nasu

Nasu, Tochigi

310

Mar 2016

81.8%

1.5

25,502

2.9%

20,863

4.8%

605

2.1%

100.0%

0.0

0.5%

0.1

D45 MS Fukuoka Te njin

Fukuoka, Fukuoka

217

Mar 2016

88.2%

4.0

11,85315.0%

10,457

20.5%

242

19.2%

100.0%

0.0

54.2%

11.0

D46 MS Hamamatsucho

Minato-ku, Tokyo105

Mar 2016

95.7%

-0.1

15,15521.3%

14,504

21.2%

155

22.2%

100.0%

0.0

56.7%

17.5

D47 MSP Kanazawa

Kanazawa, Ishikawa

244

Jun 2016

78.8%

8.7

12,766

21.5%

10,063

36.6%

294

59.7%

100.0%

0.0

9.8%

-2.9

D49 MSP Hamamatsucho

Minato-ku, Tokyo120

May 2017

94.2%

1.6

26,64731.7%

25,102

34.0%

356

33.2%

100.0%

0.0

80.1%

18.0

D50 MS Shin Osaka CC

Osaka-shi, Osaka397

Oct 2017

80.7%

9.6

8,023

0.7%

6,476

14.3%

298

23.7%

100.0%

0.0

17.9%

-1.2

D51 MSP Omori

Shinagawa-ku, Tokyo232

Oct 2017

87.3%

3.1

17,49527.9%

15,280

32.6%

388

37.9%

100.0%

0.0

56.2%

11.1

(Note 1) Excludes the data for nine hotels* with fixed-rent lease as well as Sheraton Grande Tokyo Bay since they are not allowed to be disclosed. (*D29 Super Hotel Shinbashi/ Karasumoriguchi, D33 Comfort Hotel Toyama, D36 Super Hotel Tokyo-JR Tachikawa Kitaguchi, D37
Super Hotel JR Ueno-iriyaguchi, D39 Comfort Hotel Kurosaki, D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubame-Sanjo, D42 Comfort Hotel Kitami, and D48 Takamatsu Tokyu REI Hotel). "D48 Takamatsu Tokyu REI Hotel" changed its contract with its major
tenant, Tokyu Hotels & Resorts Co., Ltd., to fixed-rent with variable rent lease from April 25, 2023. However, in view of the continuity of disclosed data, this hotel will continue to be treated as a fixed-rent hotel and excluded from the list
(Note 2) D21 APA Hotel Yokohama-Kannai and D57 Hotel MyStays Oita accepted COVID-19 patients with mild or no symptoms for part of June 2023 FP. The year-on-year comparisons are not disclosed as the consent from the parties concerned has not been obtained, it is also
excluded from the performance calculation for the Domestic Hotels total above(Note 3) The figures for “D200 Westin Grand Cayman Seven Mile Beach Resort & Spa” and “D201 Sunshine Suites Resort” are in US dollars, and in USD in thousands for GOP

56

Key Operational Data for Variable Rent Hotels (2)Property

Location# ofAcquisition

rooms

Month

Occupancy

ADR (¥)

RevPAR (¥)

GOP (¥ mn)

Daily Ratio

Overseas Sales Ratio

Jan.-Jun. 2024 Actual

Jan.-Jun. 2024 Actual

Jan.-Jun. 2024 Actual

Jan.-Jun. 2024 Actual

Jan.-Jun. 2024 Actual

Jan.-Jun. 2024 Actual

Y-o-Y (pt)

Y-o-Y

Y-o-Y

Y-o-Y

Y-o-Y (pt)Y-o-Y (pt)

D52 Kame noi Hote l Be ppu

Be ppu-shi, Oita

322

Oct 2017

85.2%

3.9

14,122

8.5%

12,030

13.7%

435

22.3%

100.0%

0.0

18.9%

7.4

D53 MS Sapporo Station

Sapporo-shi, Hokkaido

242

Oct 2017

77.1%

-0.8

11,057

13.1%

8,526

12.0%

183

10.4%

100.0%

0.0

39.2%

15.8

D54 MS Yokohama Kannai

Yokohama-shi , Kanagawa

165

Fe b 2018

89.8%

1.8

10,797

2.4%

9,692

4.4%

156

10.8%

100.0%

0.1

28.3%

8.6

D55 Art Hote l Joe tsu

Joe tsu-shi, Niigata

198

Fe b 2018

66.3%

-2.0

8,450

10.1%

5,605

6.9%

70

19.9%

100.0%

0.0

7.8%

1.6

D56 Art Hote l Hirosaki City

Hirosaki-shi, Aomori

134

Fe b 2018

73.8%

-1.1

14,692

11.5%

10,837

9.8%

166

34.5%

100.0%

0.0

16.8%

5.7

D57 MS Oita (Note 2)

Oita-shi, Oita

145

Fe b 2018

90.3%

-

7,570

-

6,832

-

85

-

100.0%

-

28.6%

-

D58 MS Gotanda

Shinagawa-ku, Tokyo110

Jun 2018

92.1%

2.2

13,57820.3%

12,499

23.3%

138

30.8%

100.0%

0.0

33.1%

12.2

D59 MS Tachikawa

Tachikawa-shi, Tokyo121

Jun 2018

89.3%

-0.3

11,914

14.8%

10,637

14.4%

129

24.7%

99.8%

-0.2

19.8%

1.8

D60 MSP Akasaka

Minato-ku, Tokyo327

Aug 2018

89.5%

3.5

18,667

34.6%

16,699

40.1%

665

48.0%

100.0%

0.0

72.7%

12.2

D61 MSP Sapporo Park

Sapporo-shi, Hokkaido

419

Aug 2018

66.1%

-3.0

12,342

10.3%

8,160

5.5%

282

6.8%

100.0%

0.0

16.4%

5.4

D62 MS Ue no East

Taito-ku, Tokyo150

Aug 2018

90.4%

0.3

12,151

34.0%

10,979

34.4%

161

39.9%

99.7%

5.1

80.5%

18.8

D63 MS Midosuji Honmachi

Osaka, Osaka108

Aug 2018

79.0%

6.1

11,766

4.9%

9,293

13.7%

83

18.7%

100.0%

0.0

57.5%

13.2

D64 Hote l MyStays Sapporo Aspe n

Sapporo-shi, Hokkaido

305

Jul 2019

76.5%

-2.9

13,838

16.5%

10,586

12.2%

302

25.5%

100.0%

0.0

37.8%

9.8

D65 Art Hote l Ishigakijima

Ishigaki-shi, Okinawa

245

Jul 2019

70.6%

-9.8

15,296-3.8%

10,802-15.5%

107-54.7%

100.0%

0.0

9.2%

2.7

D66 Hote l MyStays Fuji Onse n Re sort

Fujiyoshida-shi, Yamanashi

159

Jul 2019

89.3%

9.0

26,88823.8%

24,009

37.6%

469

51.1%

100.0%

0.0

54.7%

-2.1

D67 Hote l Sonia Otaru

Otaru‐shi, Hokkaido

149

Jul 2019

71.9%

-5.1

16,6599.7%

11,979

2.5%

183

3.3%

100.0%

0.0

24.6%

5.3

D68 Hote l MyStays Kanazawa Castle

Kanazawa-shi, Ishikawa

206

Jul 2019

78.8%

7.5

10,645

27.5%

8,385

41.0%

159

86.2%

100.0%

0.0

11.3%

-0.7

D69 Art Hote l Niigata Station

Niigata-shi, Niigata

304

Jul 2019

72.0%

-8.6

8,065

10.5%

5,809

-1.2%

187

24.2%

100.0%

0.0

7.2%

0.7

D70 Hote l MyStays Nagoya Nishiki

Nagoya-shi, Aichi

169

Jul 2019

89.0%

2.3

8,936

18.7%

7,950

21.8%

129

39.2%

99.9%

-0.1

31.0%

7.9

D71 Hote l Nord Otaru

Otaru‐shi, Hokkaido

98

Jul 2019

73.1%

-6.2

16,897

10.9%

12,344

2.2%

112

0.6%

100.0%

0.0

33.3%

8.6

D72 Hote l MyStays Kagoshima Te nmonkan

Kagoshima-shi, Kagoshima

196

Jul 2019

81.4%

-1.4

6,778

-32.1%

5,514-33.2%

82-48.4%

100.0%

0.0

18.3%

2.8

D73 Art Hote l Asahikawa

Asahikawa-shi, Hokkaido

265

Jul 2019

75.6%

-4.5

10,220

17.7%

7,727

11.1%

108

61.7%

100.0%

0.0

11.7%

4.9

D74 Hote l MyStays Matsuyama

Matsuyama-shi, Ehime

162

Jul 2019

73.0%

3.5

8,731

0.4%

6,374

5.5%

96

10.8%

100.0%

0.0

17.3%

5.5

D75 Hote l MyStays Sapporo Susukino

Sapporo-shi, Hokkaido

104

Jul 2019

65.3%

5.3

8,801

9.1%

5,746

18.8%

41

17.5%

100.0%

0.0

30.5%

10.4

D76 Hote l MyStays Sapporo Nakajima Park

Sapporo-shi, Hokkaido

86

Jul 2019

55.0%

5.8

11,545

14.5%

6,354

27.9%

27

65.5%

100.0%

0.0

54.2%

15.6

D77 Hote l MyStays Sapporo Nakajima Park Anne x

Sapporo-shi, Hokkaido

80

Jul 2019

51.1%

-5.8

8,232

20.4%

4,206

8.1%

13

2.6%

100.0%

0.0

32.2%

-1.3

D78 Fle xstay Inn Sakuragicho

Yokohama-shi, Kanagawa

70

Jul 2019

91.1%

-2.7

7,450

17.0%

6,790

13.6%

46

20.7%

55.6%

11.6

13.8%

-2.2

D79 MyCUBE by MYSTAYS Asakusa Kuramae

Taito-ku, Tokyo161

Jul 2019

68.3%

7.1

5,142

28.1%

3,511

43.0%

42

77.7%

83.1%

11.6

57.2%

13.8

D80 Hote l MyStays Kagoshima Te nmonkan Anne x

Kagoshima-shi, Kagoshima73

Jul 2019

92.1%

0.5

6,236

-32.1%

5,745-31.8%

25-53.5%

100.0%

0.0

26.0%

10.5

D81 Hote l MyStays Nayoro

Nayoro-shi, Hokkaido

70

Jul 2019

74.3%

-4.7

8,678

8.0%

6,448

1.6%

26

-3.4%

100.0%

0.0

8.3%

3.8

D82 Hote l MyStays Pre mie r Narita

Narita-shi, Chiba

711

Jan 2020

69.1%

-4.0

9,469

4.4%

6,547

-1.3%

221

-6.9%

100.0%

0.0

16.0%

1.1

D83 Art Hote l Morioka

Morioka-shi, Iwate

214

Jan 2020

82.2%

-0.2

8,487

-1.2%

6,976

-1.4%

102

5.8%

100.0%

0.0

13.3%

1.7

D84 Fusaki Be ach Re sort Hote l & Villas

Ishigaki-shi, Okinawa

398

Aug 2023

67.5%

-10.0

33,026-3.7%

22,276-16.2%

583-37.0%

100.0%

0.0

5.3%

-0.2

D85 Tate shina Grand Hote l Takinoyu

Chino-shi, Nagano160

Aug 2023

80.1%

7.8

21,910-1.7%

17,554

8.9%

194

94.3%

100.0%

0.0

2.3%

0.0

D86 Hote l MyStays Okayama

Okayama-shi, Okayama

145

Aug 2023

88.3%

3.9

7,124

-0.5%

6,291

4.2%

63

1.2%

100.0%

0.0

17.5%

1.6

D87 Hote l MyStays Aomori Station

Aomori-shi, Aomori132

Aug 2023

76.0%

-2.8

9,615

6.7%

7,310

2.9%

87

-3.9%

100.0%

0.0

35.5%

9.2

D88 Hote l MyStays Soga

Chiba-shi, Chiba112

Aug 2023

90.9%

2.8

9,161

0.3%

8,326

3.5%

77

11.6%

100.0%

0.0

13.2%

3.4

D89 Tazawako Lake Re sort & Onse n

Se nboku-shi, Akita80

Aug 2023

62.0%

-1.0

13,244

-7.4%

8,215

-8.8%

34

-14.5%

100.0%

0.0

6.3%

-4.6

Domestic Hotels (except D21 & D57) (Note 2)

80.3%

0.4

12,244

11.1%

9,830

11.6%

12,269

16.6%

96.0%

0.6

29.8%

7.4

D200 We stin Grand Cayman Se ve n Mile Be ach Re sort & Spa

Grand Cayman

343

Se p 2018

80.5%

0.5

661

6.3%

532

7.0%

28,001

7.9%

-

-

-

-

D201 Sunshine Suite s Re sort

Grand Cayman

131

Se p 2018

75.0%

4.8

293

2.9%

220

10.0%

3,584

10.8%

-

-

-

-

79.0%

1.7

564

5.1%

446

7.4%

31586

8.2%

-

-

-

-

Overseas Hotels--

13,395474--(Note 1) Excludes the data for nine hotels* with fixed-rent lease as well as Sheraton Grande Tokyo Bay since they are not allowed to be disclosed. (*D29 Super Hotel Shinbashi/ Karasumoriguchi, D33 Comfort Hotel Toyama, D36 Super Hotel Tokyo-JR Tachikawa Kitaguchi, D37
Super Hotel JR Ueno-iriyaguchi, D39 Comfort Hotel Kurosaki, D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubame-Sanjo, D42 Comfort Hotel Kitami, and D48 Takamatsu Tokyu REI Hotel). "D48 Takamatsu Tokyu REI Hotel" changed its contract with its major
tenant, Tokyu Hotels & Resorts Co., Ltd., to fixed-rent with variable rent lease from April 25, 2023. However, in view of the continuity of disclosed data, this hotel will continue to be treated as a fixed-rent hotel and excluded from the list
(Note 2) D21 APA Hotel Yokohama-Kannai and D57 Hotel MyStays Oita accepted COVID-19 patients with mild or no symptoms for part of June 2023 FP. The year-on-year comparisons are not disclosed as the consent from the parties concerned has not been obtained, it is also
excluded from the performance calculation for the Domestic Hotels total above(Note 3) The figures for “D200 Westin Grand Cayman Seven Mile Beach Resort & Spa” and “D201 Sunshine Suites Resort” are in US dollars, and in USD in thousands for GOP

57

Financial Metrics
Items

June 2021

December 2021

June 2022

December 2022

June 2023

December 2023

June 2024

Jan 1, 2021Jun 30, 2021

Jul 1, 2021Dec 31, 2021

Jan 1, 2022Jun 30, 2022

Jul 1, 2022Dec 31, 2022

Jan 1, 2023Jun 30, 2023

Jul 1, 2023Dec 31, 2023

Jan 1, 2024Jun 30, 2024

Amount of Total Assets (JPY million)

497,899494,819

490,118494,237

496,819563,393569,016

Amount of Net Assets (JPY million)

245,113

246,130

246,211250,321254,024

290,305

292,766

49.2%

49.7%

50.2%

50.6%

51.1%

51.5%

51.5%

Total Amount of Investment (JPY million)

235,701

235,701

235,701

235,701

235,701

270,101

270,101End-of-period total number of units issued

Capital-to-Asset Ratio

6,096,840

6,096,840

6,096,840

6,096,840

6,096,840

6,737,121

6,737,121

Amount of Net Assets per Unit ( JPY)

40,20340,37040,38341,05841,66543,09043,455Return on Asset (ROA) (annualized)

-1.4%

0.6%

0.4%

2.1%

3.6%

4.0%

4.6%

Return on Equity (ROE) (annualized)

-2.9%

1.2%

0.8%

4.1%

7.1%

7.7%

8.9%
271,154249,198

244,945

241,372

240,797

239,190

269,100

Weighted average interest rate

0.5%

0.5%

0.5%

0.5%

0.5%

0.7%

0.9%

Loan to Value (LTV 1)

51.3%

50.9%

50.5%

50.5%

50.3%

49.8%

50.0%

End-of-period Loan-to-Value based on Total Assets (LTV 2)

50.0%

49.5%

49.2%

48.7%

48.1%

47.8%

47.7%

Net Operating Income (NOI) (JPY million)

2,090

4,201

4,936

10,50914,523

17,205

19,634

NOI yield (annualized)

0.8%

2.5%

2.0%

4.2%

6.0%

6.3%

7.2%

Depreciation Expenses (JPY million)

3,889

3,850

3,766

3,756

3,746

4,217

4,341

290

2,296

3,312

8,831

12,66015,25017,242NAV (JPY million)

306,746

308,349

320,967

325,857

356,905

403,873435,886

NAV per Unit (JPY)50,31250,57552,64553,44758,53959,94864,699

0.9

0.7

0.8

1.0

1.0

1.0

1.0

Amount of interest-bearing debts (JPY million)

Funds From Operations (FFO) (JPY million)

NAV ratio(Note 1) Financial indicators calculation method in the above table are as follows
・ ROA (annualized)＝ Ordinary Income / Weighted Average Total Assets during the period x 100/days during the period x 365
・ ROE (annualized)＝ Net Income / Weighted Average Net Assets during the period x 100/days during the period x 365
・ LTV (1)＝ End‐of‐period Interest‐Bearing Debt / (End‐of‐period Interest‐Bearing Debt + Unitholders’ Capital + Unitholders’ Capital Surplus)x100
・ LTV (2)＝ End‐of‐period Interest‐Bearing Debt / End‐of‐period Total Assets x 100
・ NOI＝ Rental Revenues + TMK Dividend amount ‐ Property-Related Expenses + Depreciation Expenses
・ NOI yield (annualized)＝((Rental Revenues + TMK Dividend amount ‐ Property-Related Expenses + Depreciation Expenses)/ days during the period x 365)/ Acquisition Price
・ FFO＝ Net Income + Depreciation Expenses + Other Amortization – Gain on Sales of Properties + Loss from Sales of Properties
・ NAV＝ End‐of‐period Amount of Net Assets – Undistributed Profit + Total year-end appraisal value of portfolio ‐ Total book value of portfolio
・ NAV ratio ＝ period-end unit price/ Amount of Net Assets per Unit
(Note 2) Figures are rounded down to the indicated unit and percentages are rounded to one decimal place

58

Income Statement
Dec 2023 Period
Jul 1, 2023Items
Dec 31, 2023
JPY thousand(%)
Operating revenue (1)18,819,119
100.0
Rental revenue
16,696,076
Management contract revenue
2,123,042
Dividend income
Operating expenses
6,230,207
33.1
Property related expenses (2)5,096,717
Management contract expenses (3)734,722
Depreciation expenses (4)4,217,991
NOI (including dividend income) (1)-(2)-(3)+(4)17,205,671
91.4
Asset management fees
300,000
Directors’ compensation
5,200
Asset custody fees
27,267Administrative service fees
48,537
Other
17,761
Operating income
12,588,912
66.9
Non-operating income
452
0.0Interest income
138
Foreign exchange gains
Interest on tax refund
Other
314
Non-operating expenses
1,556,188
8.3
Interest expenses
603,172
Foreign exchange losses
76,288Interest expenses on investment corporation bonds
63,059Amortization of investment corporation bond issuance costs
10,839Loan-related costs
620,370
Loss on derivatives
30,078Investment unit issuance expenses
152,379
Ordinary income
11,033,176
58.6
Extraordinary income
Subsidy income
Extraordinary losses
Loss on reduction entry of non-current assets
Income before income taxes
11,033,176
58.6
Income taxes
605
Net income
11,032,571
58.6
Retained earnings brought forward

Jun 2024 Period
Jan 1, 2024Jun 30, 2024
JPY thousand(%)
21,136,007
100.0
14,933,032
4,774,272
1,428,702
6,500,276
30.8
5,107,042
736,333
4,341,470
19,634,102
92.9
450,000
4,800
28,23541,077
132,787
14,635,731
69.2
427,6432.0
163
423,972
2,615
891
2,162,208
10.2
893,218
108,923
15,608583,615560,841
12,901,166
61.0
24,991
24,991
24,991
24,991
12,901,166
61.0
605
12,900,561
61.0

Changes
JPY thousand(%)
2,316,887
12.3(1,763,044)
2,651,229
1,428,702
270,069
4.3
10,325
1,610
123,479
2,428,431
14.1
150,000(400)
967(7,460)115,025
2,046,818
427,190 94,511.1
25
423,9722,615
577
606,01938.9
290,045(76,288)
45,864
4,768(36,754)
530,762(152,379)
1,867,989
24,991
24,991
24,991
24,991
1,867,989
1,867,989-

8,657,960

8,641,653(16,307)

Unappropriated retained earnings / losses at the end of the period 19,690,532

21,542,214

1,851,682

59

Balance Sheet - Assets
Items
AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Rental receivables
Deposits paid
Prepaid expenses
Income taxes receivable
Consumption tax receivable
OthersTotal current assets
Non-current assets
Property and equipment
Buildings
Buildings and accompanying facilities
Structures
Tools, furniture and fixtures
Construction in progress
Buildings in trust
Buildings and accompanying facilities in trust
Structures in trust
Tools, furniture and fixtures in trust
Land in trust
Construction in progress in trust
Total property and equipment
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 investment and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets

Dec 2023 Period(As of December 31, 2023)
JPY thousand(%)

21,956,120
12,936,394
4,834,083
1,976,184
1,143,417
21
2,615,543
12,63645,474,401

Jun 2024 Period(As of June 30, 2024)
JPY thousand(%)

Changes
JPY thousand

8.1

30,213,929
12,346,894
6,040,833
2,414,240
1,428,542
24
52,444,465

83.2

17,241,196
3,744,620
1,176
873,398
1,055,651
150,406,952
26,502,186
173,551
1,635,974
264,666,397
240,499
466,541,605

5.0

10,637,811
17,357,800
27,995,612

17,856,387
1,382,359
1,825,986
7,877
22,66721,095,278
517,829,876

3.7
91.9

17,856,387
1,390,459
2,007,275
627,676
32,667
21,914,466
516,451,684

3.9
90.8

8,100
181,288619,799
10,000819,187(1,378,192)

88,78388,783563,393,061

0.0
100.0

120,364
120,364
569,016,514

0.0
100.0

31,581
31,581
5,623,452

17,457,249
3,898,162
1,209
822,627754,330
152,726,019
26,449,389
159,6111,567,120
264,666,397
198,056
468,700,175
10,637,811
17,396,611
28,034,422

(%)

9.2

8,257,809(589,499)
1,206,749
438,055
285,124
3(2,615,543)(12,636)
6,970,063

15.3

82.0

(216,053)(153,541)(32)
50,771
301,321(2,319,067)
52,796
13,93968,85442,442(2,158,569)

(0.5)

4.9

(38,810)(38,810)

(0.1)

3.9
(0.3)

1.0

60

Balance Sheet – Liabilities/Net Assets
Items
Liabilities
Current liabilities
Accounts payable
Short-term loans payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable-otherAccrued expenses
Income taxes payable
Consumption taxes payable
Advances received
Deposits received
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits in trust
Derivatives liabilities
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
SurplusCapital surplus
Deduction of captial surplus
Allowance for temporary differences adjustment
Other deduction of capital surplus
Total deduction of captial surplus
Capital surplus (net)
Retained earnings
Total surplus
Total unitholders' equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

Dec 2023 Period(As of December 31, 2023)
JPY thousand(%)

800,491
36,520,000
1,000,000
36,787,000
6,321
281,210605
305,676
55,10775,756,412

Jun 2024 Period(As of June 30, 2024)
JPY thousand(%)

Changes
JPY thousand

(%)

13.4

709,906
8,813,000
1,000,000
44,553,000
8,691
393,151605
1,023,206
313,582
18,58956,833,732

10.0(90,585)(27,707,000)
7,766,000
2,370
111,940
1,023,206
7,905(36,518)(18,922,680)(25.0)

13,900,000
180,893,000
1,491,055
654,369
393,202
197,331,627
273,088,040

35.0
48.5

19,900,000
196,888,000
1,497,699
734,860
395,487
219,416,047
276,249,780

38.6
48.5

6,000,000
15,995,000
6,643
80,4902,285
22,084,419
3,161,739

11.2
1.2

270,101,249

47.9

270,101,249

47.5

-

-

6,264,432

6,264,432-(6,130)(5,524,006)(5,530,137)
734,294
19,690,532
20,424,826
290,526,075

3.6
51.6

(6,130)(5,524,006)(5,530,137)
734,294
21,542,214
22,276,509
292,377,758

3.9
51.4

1,851,682
1,851,682
1,851,682

9.1
0.6(221,054)(221,054)
290,305,021
563,393,061

(0.0)
51.5
100.0

388,975
388,975
292,766,734
569,016,514

0.1
51.5
100.0

610,029
610,0292,461,712
5,623,452

0.8
1.0

61

Cash Flow Statement and Dividend Distribution
Items

Dec 2024 Period
Jul 1, 2024Dec 31, 2024
(JPY thousand)Jun 2024 Period
Jan 1, 2024Jun 30, 2024
(JPY thousand)Cash flows from operating activities
Income (loss) before income taxes

11,033,176

12,901,166

Depreciation and amortization

4,217,991

4,341,470

Loss on reduction entry of non-current assets
Investment unit issuance costs-

24,991

152,379
10,83915,608

Loan-related costs

620,370

583,615Interest income

(138)

(163)

Interest expenses

666,231

1,002,142

23

(142)

30,078560,841

Decrease (increase) in rental receivables

916,217(1,206,749)(1,433,237)(438,055)

Decrease (increase) in receivable income taxes
Decrease (increase) in consumption taxes receivable
Increase (decrease) in accounts payable
Increase (decrease) in consumption taxes payable
Increase (decrease) in accrued expenses

(5)

(3)

(3,038,267)

2,615,543(3,446)(4,478)-1,023,206
85,639

8,353
(238)

7,905

Increase (decrease) in deposits received

43,443(36,518)

Others

193,803(176,618)

Subtotal

13,417,575

21,299,400

Interest expenses paid
Income taxes paid
Cash flows from operating activities(JPY thousand)

19,690,532

21,542,214

Distributions(JPY thousand)

11,048,878

12,915,060(JPY thousand)

11,048,878

12,915,060

(JPY)

1,640

1,917

(JPY)

1,640

1,917

8,641,653

8,627,153

Distribution per unit
Of which, distributions of earnings per unit

Increase (decrease) in advances received

Interest income received

Unappropriated retained earnings

Of which, distributions of earnings

Loss (gain) of derivatives
Decrease (Increase) in deposits paid

Jun 2024 Period
Jan 1, 2024Jun 30, 2024-

Amortization of investment corporation bond issuance costs

Foreign exchange losses (gains)

Dec 2023 Period
Jul 1, 2023Dec 31, 2023

Items

138

163

(643,780)(973,357)

(605)

(605)

12,773,327

20,325,601

Retained earnings / losses carried forward(JPY thousand)Cash flows from investment activities
Proceeds from withdrawal of time deposits

800,000-

Purchases of property and equipment(122,052)(434,456)

Purchases of property and equipment in trust(55,967,444)(1,818,446)

Purchases of leasehold rights in trust(3,055,022)-

Repayments of tenant leasehold and security deposits in trust(33,591)(22,016)

Proceeds from tenant leasehold and security deposits in trust

40,31828,659Payments of tenant leasehold and security deposits(9,640)(8,100)

Others(95,410)(500,120)(58,442,843)(2,754,478)

Cash flows from investment activities
Cash flows from financing activities
Proceeds from short-term loans payable

11,899,000-

Repayments of short-term loans payable(86,832,000)(27,707,000)

Proceeds from long-term loans payable

129,686,000

43,557,000

Repayments of long-term loans payable(26,343,000)(19,796,000)

Proceeds from issuance of investment corporation bonds

3,470,368

5,950,508

Redemption of investment corporation bonds(2,000,000)-

Payments for loan-related costs(2,684,150)(861,343)

Payments of distributions of earnings(8,922,722)(11,046,120)

Proceeds from issuance of investment units

34,247,357-

52,520,852(9,902,955)

Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents

(23)

142

Net increase (decrease) in cash and cash equivalents

6,851,312

7,668,309

Cash and cash equivalents at beginning of period

28,041,202

34,892,514

Cash and cash equivalents at end of period

34,892,514

42,560,824

62

Property Income (1/4)(JPY thousand )P roperty Number

Property Name

A26

Rent, c ommon area fees

A29

A30

Nisshin

GrowthGrowthPalacestage

MaisonMaisonDaitabashi

GotandaKameidonumber of operating days
① Rental revenues

A28

A32

Emerald
House

A33

A34

A35

S uncrest

GrowthBelle Face

S hakujii-

Maison S hin-

Ueno-

Koen

Yokohama

Okachimachi

A37

A38

A39

A40

S hibuya-Grand Rire

GrowthRoute

Kameido

Maison Yoga

Tachikawa

A41

A43

Acseeds

Honmachi
Mansion

City Heights

Tower

KinutaKawaguchiNamiki

A44

CollegeS quareMachida

A45

BelairWacoreMeguroTsunashima I

A46

A47

A48
College

Foros

GrowthNakamura-

MaisonS quarebashi

KaijinMachiya

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

39,262

28,88036,11747,59840,17539,62434,442

26,61923,521

21,643

21,324

19,77825,894

16,60916,68918,227

20,36623,391

14,98635,62826,916

33,69338,54936,44135,93030,465

26,61921,854

20,17020,752

17,75024,372

16,60915,50817,33917,651

21,91014,706

Rental revenues (Fixed rent)
Rental revenues (Variable rent)
Other revenue (Note 1)

3,633

1,964

2,424

9,049

3,734

3,694

3,977

-

1,666

1,472

572

2,028

1,522

-

1,181

888

2,715

1,481

280

② Property related expenses

20,846

9,170

14,60622,48916,490

16,24017,887

8,878

10,082

9,610

7,040

8,077

13,381

3,493

6,831

10,204

9,658

14,637

5,700

5,706

1,719

3,495

5,995

3,979

3,039

6,964

712

2,521

1,789

1,763

3,608

3,397

251

1,570

2,491

1,971

3,757

-

452

85

195

1,030

707

69

877

399

107

209

392

250

109

251

115

127

57

416

-

Fac ility management fees (a)（of whic h, repair c ost)
( of whic h, utility expenses)

2,022

298

538

916

861

546

520

-

255

209

145

156

331

-

147

348

262

1,006

-

Tax and other public c harges (b)

1,648

1,388

1,713

2,602

3,257

2,497

1,706

1,781

1,381

1,113

1,014

1,036

1,108

525

965

897

980

2,017

958

Insuranc e expenses (c )Deprec iation expenses（⑦）

60

36

51

97

101

69

50

52

39

41

35

34

40

39

25

28

33

79

28

10,066

5,480

6,917

9,106

7,798

7,863

6,123

5,794

4,327

5,833

3,106

2,301

5,507

2,141

2,984

4,519

5,159

7,782

4,177

Other expenses (d)

3,364

545

2,427

4,687

1,353

2,770

3,043

536

1,813

831

1,120

1,095

3,328

536

1,284

2,267

1,513

1,000

536

③ Rental inc ome（①－②）

18,415

19,70921,511

25,10923,684

23,383

16,555

17,741

13,43912,032

14,283

11,701

12,513

13,116

9,858

8,022

10,708

8,753

9,285

④ NOI （①－②＋⑦）

28,481

25,18928,42834,21531,48331,24722,67823,536

17,766

17,866

17,39014,002

18,02015,258

12,843

12,542

15,867

16,536

13,463⑤ Capital expenditure

3,727

6,787

4,359

19,864

4,431

7,460

1,389

1,098

1,375

3,339

1,072

2,324

884

-

1,108

4,385

5,774

1,987

-

⑥ NCF（④－⑤）

24,754

18,402

24,06914,35027,052

23,787

21,28822,437

16,391

14,527

16,318

11,67817,135

15,258

11,734

8,157

10,093

14,54813,463

A59

A61

A63

A64

A65

A66

A72

A73

A84

A87

A90

A92

A93

A94

A96

S ietePrime Life

Century Park

Minami-

Sannomiya

S hinkawa

Tsukaguchi Isogami Koe n

1-bankan

P roperty Number

Towa City
Property Name

Coop

BichselS hin-otsuka

MusashisekiⅡnumber of operating days
① Rental revenues
Rent, c ommon area fees

Towa City
Coop
S engencho

Royal Park
Omachi

Lexington
S quareHaginomachi

Lexington
Visconti

S quareKakuozan

HonjoAzumabashi

AMS
TOWER

Revest HeianMinami 6-Jo

Queen's

ExcellenteKagurazaka

BelairCourt

OimachiFukuzumi

A97

A99

A101

A102

West

Prime Life

Lieto Court

Lieto Court

AvenueMikageMukojima

Nishi-Ojima

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

36,55323,96062,242

26,061

17,422

9,643

19,233

46,24324,20919,307

17,974

16,071

17,22615,031

16,805

13,156

12,911

58,831

51,09934,49823,12354,33023,061

15,767

8,547

18,433

43,97423,334

18,426

16,732

14,92916,576

14,224

14,046

12,347

12,47655,20150,143

Rental revenues (Fixed rent)
Rental revenues (Variable rent)
Other revenue (Note 1)

2,055

836

7,912

3,000

1,655

1,096

800

2,269

874

881

1,242

1,142

650

807

2,759

808

435

3,630

956

② Property related expenses

15,141

8,161

29,677

11,336

6,881

6,648

7,179

21,977

11,638

9,691

8,480

7,202

7,541

8,817

9,280

5,578

7,028

26,71920,514
3,993

Fac ility management fees (a)

4,885

1,801

13,517

5,006

2,317

2,577

1,753

7,360

2,155

1,677

1,908

1,803

2,010

1,657

2,284

1,625

1,524

4,966

（of whic h, repair c ost)

316

211

235

412

112

60

108

913

57

-

-

129

47

154

83

144

279

287

298

( of whic h, utility expenses)

18

345

31

1,700

614

24

368

1,529

263

196

112

124

266

184

231

260

138

608

572

1,450

1,231

3,063

808

591

943

831

2,204

1,421

793

755

749

989

870

843

566

784

2,490

2,191

84

45

137

63

39

27

30

124

44

30

29

23

36

26

44

23

24

94

72

5,643

3,671

7,554

4,264

2,568

1,748

2,961

9,816

6,650

4,764

3,511

3,257

3,778

3,872

4,641

2,044

3,480

16,614

13,118Tax and other public c harges (b)Insuranc e expenses (c )Deprec iation expenses（⑦）
Other expenses (d)

3,077

1,412

5,403

1,192

1,364

1,351

1,603

2,472

1,365

2,425

2,275

1,369

726

2,390

1,466

1,319

1,215

2,554

1,138

③ Rental inc ome（①－②）

21,411

15,79832,565

14,725

10,5402,995

12,05424,266

12,571

9,616

9,494

8,869

9,684

6,214

7,525

7,578

5,883

32,11230,584④ NOI （①－②＋⑦）

27,055

19,47040,11918,98913,1094,743

15,01534,082

19,222

14,381

13,005

12,126

13,462

10,087

12,166

9,622

9,363

48,72643,703⑤ Capital expenditure

14,508

2,832

4,755

467

1,158

547

3,798

6,075

209

2,478

435

-

9,956

6,789

2,451

1,876

5,068

6,536

2,891

⑥ NCF（④－⑤）

12,546

16,63735,364

18,522

11,950

4,195

11,21728,007

19,013

11,903

12,56912,126

3,506

3,297

9,714

7,745

4,294

42,18940,811(Note 1) In the vast majority of hotels operated by MHM, INV receives the difference between the consumption tax deposited by MHM and the consumption tax paid by MHM. This amount of difference may exceed the amount of consumption tax to be recognized on INV’s rental revenues. In
such case, the total excess amount was treated as revenue not tied to individual properties until the fiscal period ended Dec ember 2023, in view of the low monetary importance. However, the excess amount of each property is recorded as "Other revenue" for each property from the fiscal
period ended June 2024. As a result, the amount of "Other revenue" for the subject properties generally increased from the previous period(Note 2) Using an exchange rate at the time of transaction regarding ①-⑦ of Cayman hotels

63Property Income (2/4)(JPY thousand )P roperty Number

A103

A104

A106

B18

Property NameRoyal Parks

Royal Parks

S easir

Momozaka

S hinden

Minami-AEON
subtotal

TOWN① Rental revenues
Rent, c ommon area fees

subtotal

S ukagawaS enjunumber of operating days

D01

D02

D03

D04

D05

MyS tays

Royal Parks

Hotel

Hotel

Hotel

S hin-Hotel

MyS tays

MyS tays

MyS tays

Urayasu

MyS tays

Kanda

Asakusa

Kyoto-S hijo

Conference

MaihamaCenter

D06

D07

D08

Hotel

Hotel

Hotel

D09

MyS tays

MyS tays

MyS tays

Premier

Nagoya-S akaisuji-

DojimaS akaeHonmachi

D10

D11

D12

D13

Hotel
Hotel

Hotel

MyS tays

MyS tays

MyS tays

Fukuoka-

Yokohama

NipporiTenjin-Hotel
Flexstay Inn
Iidabashi

MyS tays
Ueno
Inaricho

Minami

182

182

182

-

182

-

182

182

182

182

182

182

182

182

182

182

182

182

182

160,851

223,962

125,512

1,529,470

141,279

141,279

126,759

114,939

199,439

234,535

230,119

216,639

152,357

97,926

161,066

77,637

147,393

64,96959,937

145,541

203,260

110,443

1,402,290

141,279

141,279

125,336

113,115

195,310

232,483

227,285

175,599

151,149

96,697

159,41076,579145,595

64,146

58,91636,00037,50089,34066,96066,120113,132

65,70044,04041,22030,30028,56026,70021,60037,316

Rental revenues (Fixed rent)
Rental revenues (Variable rent)

89,33675,615

105,970

165,523

161,165

62,46785,44952,657

118,190

46,279117,035

37,446

Other revenue (Note 1)

15,31020,701

15,068127,180

-

-

1,423

1,823

4,129

2,052

2,834

41,040

1,208

1,229

1,655

1,058

1,798

823

1,021

② Property related expenses

113,105

119,056

75,796

762,783

80,75280,75230,19819,65071,68856,032

46,55764,14547,67429,264

46,477

16,454

21,73014,743

13,704

Fac ility management fees (a)53,95529,33323,705

226,557

56,124

56,124

-

-

-

-

-

11,761

17,163

-

-

-

-

-

-

（of whic h, repair c ost)

1,305

1,572

410

12,991

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

( of whic h, utility expenses)

1,238

-

1,321

18,720

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Tax and other public c harges (b)7,637

13,921

5,705

79,439

6,662

6,662

5,154

3,698

11,237

8,353

3,482

12,624

3,820

7,076

4,221

1,857

5,836

4,625

1,501

Insuranc e expenses (c )Deprec iation expenses（⑦）

293

532

238

3,015

245

245

99

111

208

206

108

284

266

112

201

59

109

91

44

46,02474,80941,597373,386

17,055

17,05524,42415,30659,72446,96542,457

38,762

25,916

21,571

41,543

14,031

15,277

9,522

11,652Other expenses (d)

5,194

459

4,548

80,384

665

665

521

534

518

506

508

713

508

503

510

505

506

503

505

③ Rental inc ome（①－②）

47,745

104,906

49,716766,687

60,52660,52696,561

95,288

127,751

178,503

183,562

152,494

104,682

68,661

114,589

61,183

125,662

50,226

46,233④ NOI （①－②＋⑦）

93,770179,715

91,3131,140,074

77,581

77,581

120,985

110,594

187,475

225,469

226,019

191,256

130,599

90,233

156,132

75,214140,940

59,74857,886⑤ Capital expenditure

3,134

27,233

10,616

185,192

-

-

5,100

6,700

12,60275,818

11,272

46,586

8,401

3,334

51,225

6,797

3,820

240

3,768

⑥ NCF（④－⑤）

90,635

152,482

80,697

954,881

77,581

77,581

115,885

103,894

174,873

149,651

214,747

144,670

122,198

86,899104,907

68,417137,11959,50854,118

D14

D15

D16

D17

D18

D19

D20

D21

D22

D23

D24

D25

D26

D27

D28

D29

D30

D31

D32

P roperty Number

Property Name

number of operating days
① Rental revenues
Rent, c ommon area fees

Flexstay Inn

Flexstay Inn

Flexstay Inn

S hinagawa

Tokiwadai

S ugamo

Hotel

Hotel
MyS tays
OtemaeMyS taysFlexstay Inn

Kiyosumi

Nakanobu P1 Nakanobu P2

Flexstay Inn

S hirakawa

APA Hotel
YokohamaKannai

Hotel
MyS taysFlexstay Inn

Hakodate-

S hirogane

Goryokaku

Hotel

Hotel

Hotel

MyS tays

MyS tays

HanedaKameido P1

MyS tays
Ueno
Iriyaguchi

Hotel

Hotel

Super HotelMyS tays

MyS tays

Shinbashi/

Kameido P2

S himizu

Flexstay Inn

Higashi-Jujo
Karasumoriguchi

Hotel

Flexstay Inn

MyS tays

Kawasaki-

Utsunomiya

Kaizuka

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

47,661

57,90244,40974,34974,545

17,3898,237

219,885

95,82948,029198,848

206,003

123,440

130,327

72,40739,42631,754

101,759

26,77547,22157,09944,142

73,20772,85917,3048,182

219,885

94,85747,414

195,986

204,947

120,655

129,145

71,26539,426

31,239100,192

26,653

Rental revenues (Fixed rent)

19,86024,54022,98019,86016,320

8,820

4,920

212,500

36,00027,00091,80089,40057,00057,00036,60039,42622,20037,80018,600Rental revenues (Variable rent)

8,053

27,361

32,55921,162

53,34756,539

8,484

3,262

7,385

58,857

20,414104,186

115,547

63,655

72,14534,665-9,039

62,392Other revenue (Note 1)

439

803

266

1,141

1,685

84

54

-

972

615

2,862

1,055

2,784

1,182

1,141

-

514

1,566

121

② Property related expenses

9,071

11,733

11,077

16,69816,168

5,913

3,456

95,72647,156

11,10757,64336,272

27,23628,42329,711

9,277

10,691

36,086

11,574

Fac ility management fees (a)

-

-

-

1,050

-

-

-

-

-

-

-

-

3,738

-

-

710

1,100

-

1,020

（of whic h, repair c ost)

-

-

-

-

-

-

-

-

-

-

-

-

599

-

-

702

-

-

-

( of whic h, utility expenses)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1,799

3,657

2,956

3,685

3,520

1,072

626

11,665

5,130

1,753

4,119

6,350

939

3,815

4,061

3,392

2,129

12,719

824

36

77

65

119

81

22

13

292

208

53

177

166

82

104

108

48

47

325

36

6,730

7,493

7,551

11,33812,060

4,313

2,312

83,26341,3108,796

52,93929,34822,06924,097

25,135

4,717

7,007

22,6299,286

Tax and other public c harges (b)Insuranc e expenses (c )Deprec iation expenses（⑦）
Other expenses (d)

505

505

505

505

505

504

504

505

506

504

407

407

406

406

405

407

406

411

406

③ Rental inc ome（①－②）

38,58946,16833,331

57,65058,376

11,475

4,780

124,159

48,67236,922

141,205

169,730

96,203

101,90342,69530,14921,06365,672

15,201④ NOI （①－②＋⑦）

45,31953,66240,882

68,98970,436

15,7897,093

207,42289,98345,718194,144

199,078

118,272

126,001

67,83034,86728,07088,302

24,487⑤ Capital expenditure

5,804

7,898

7,858

5,891

6,037

999

1,560

369,215

50,632

8,676

3,374

11,039

475

3,232

1,718

-

7,866

7,938

3,045

⑥ NCF（④－⑤）

39,51545,76433,02463,09864,39914,7895,533-161,792

39,35037,041

190,770

188,039

117,796

122,769

66,112

34,867

20,20480,364

21,442(Note 1) In the vast majority of hotels operated by MHM, INV receives the difference between the consumption tax deposited by MHM and the consumption tax paid by MHM. This amount of difference may exceed the amount of consumption tax to be recognized on INV’s rental revenues. In
such case, the total excess amount was treated as revenue not tied to individual properties until the fiscal period ended Dec ember 2023, in view of the low monetary importance. However, the excess amount of each property is recorded as "Other revenue" for each property from the fiscal
period ended June 2024. As a result, the amount of "Other revenue" for the subject properties generally increased from the previous period(Note 2) Using an exchange rate at the time of transaction regarding ①-⑦ of Cayman hotels

64Property Income (3/4)(JPY thousand )P roperty Number

Property Name

D33

D34

ComfortFlexstay Inn

Hotel

Kawasaki-Toyamanumber of operating days
① Rental revenues
Rent, c ommon area fees
Rental revenues (Fixed rent)

Ogawacho

D36

D37

S uper Hotel
Flexstay Inn

Tokyo-JR

Ekoda

Tachikawa

D38

D40

D41

S uper Hotel

Hotel

Comfort

ComfortJR Ueno-MyS tays

Hotel

Hotel

iriyaguchi

Kitaguchi

D39

S hinsaibashi

Kurosaki

D42

D43

D44

D45

Hotel

D46

D47

Comfort Hotel

ComfortMyS taysHotel

MyS tays

Hotel MyStays

Tsubamesanjo

Hotel Kitami

GotandaEpinard Nasu

Fukuoka

Hamamatsucho

MaebashiS tation

D48

D49

D50

D51

Hotel

Hotel

Hotel

Takamatsu

Hotel MyStays

MyS tays

MyS tays

Tokyu REI

Premier

S hin Osaka

Hotel

Hamamatsucho

Conference

Kanazawa

TenjinHotelCenter

MyS tays
Premier
Omori

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

35,92825,848

115,648

31,78727,27561,71037,894

44,171

34,94930,300607,460

615,343

246,259

158,461

295,409

95,236361,375

302,456

390,656

35,92825,747

115,036

31,78727,27557,21937,894

43,811

32,86130,300600,324

605,113242,356

155,517294,12163,801

356,271298,718

388,223

35,92815,00060,78031,78727,27537,20037,894

43,811

32,86130,300272,700

192,000

88,20082,200145,500

39,000107,400

193,200

138,000
250,223

Rental revenues (Variable rent)-

10,74754,256--20,019----327,624

413,113

154,156

73,317

148,62124,801

248,871

105,518

-

100

612

-

-

4,490

-

360

2,088

-

7,136

10,230

3,902

2,943

1,288

31,434

5,103

3,737

2,433

14,348

7,263

32,673

13,148

10,201

23,92620,01526,286

15,771

15,37572,625314,135

55,35540,942

128,993

62,80937,46452,346

66,888Other revenue (Note 1)② Property related expenses

D35

Fac ility management fees (a)

460

-

-

1,391

1,070

-

965

5,669

972

831

8,381

9,335

-

-

-

36,265209--（of whic h, repair c ost)

460

-

-

1,091

770

-

365

-

546

231

-

-

-

-

-

191

209

-

-

( of whic h, utility expenses)
Tax and other public c harges (b)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

22,093

-

-

-

3,752

940

4,546

2,813

2,339

2,951

3,405

1,553

3,594

1,619

19,464

26,235

7,948

7,688

14,3432,350

11,55013,113

14,933

Insuranc e expenses (c )Deprec iation expenses（⑦）

94

24

115

54

38

56

75

93

79

73

382

1,203

181

79

479

205

249

527

430

9,632

5,892

27,606

8,482

6,346

20,458

15,111

18,56010,711

12,442

43,739276,872

46,76932,719113,711

23,51824,997

38,27251,061Other expenses (d)

408

406

405

407

407

459

458

410

414

408

658

489

455

454

459

468

458

433

462

③ Rental inc ome（①－②）

21,57918,584

82,975

18,63817,07437,784

17,87817,884

19,177

14,924534,835

301,207

190,904

117,518

166,415

32,427

323,910250,109323,767④ NOI （①－②＋⑦）

31,212

24,477

110,581

27,12023,42058,242

32,99036,44429,88827,367

578,575

578,080

237,673150,238

280,126

55,945348,907288,382

374,829⑤ Capital expenditure

372

3,663

6,678

-

-

4,244

12,345

-

5,340

-

8,478

93,985

4,268

2,396

13,653

10,523

5,245

4,967

20,44330,84020,813103,90227,12023,42053,99820,64536,44424,54827,367570,097

484,095

233,405

147,842

266,472

45,422

343,662

283,414354,386

D53

D54

D55

D56

D57

D58

D59

D61

D62

D65

D66

D67

D68

D69

Hotel

Hotel

⑥ NCF（④－⑤）

P roperty Number

Property Name

number of operating days
① Rental revenues
Rent, c ommon area fees

D52

Kamenoi

MyS tays

MyS tays

Art Hotel

Art Hotel

Hotel Beppu

S apporo

Yokohama

JoetsuHirosaki City

S tation

Kannai

D60

Hotel

Hotel

Hotel

MyS tays

MyS tays

MyS tays

Oita

GotandaTachikawa

Hotel

Hotel
MyS tays
Premier
Akasaka

MyS tays

Hotel

Premier

MyS tays

S apporo

Ueno East

Park

D63

D64

Hotel

Hotel

MyS tays

MyS tays

Art Hotel

Midosuji

S apporo

Ishigakijima

Honmachi

Aspen

Hotel

Hotel

MyS tays Fuji Hotel S onia
Onsen

Otaru

Art Hotel

MyS tays

MyS tays

Niigata

Kanazawa

ResortD70
Hotel
NagoyaS tation

CastleNishiki

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

442,696

185,603

157,498

87,143

169,122

86,501

140,444130,033

679,444

288,072

165,284

86,155

309,665

112,519

476,973

185,540

160,537

190,509130,561
129,028435,813

183,481

156,846

85,683

166,949

85,365

138,721

129,233

665,909

282,912

161,543

83,921

302,694

112,519469,239

183,294

159,382

187,094

Rental revenues (Fixed rent)

179,100

105,000

70,50048,40052,50027,60056,25046,950217,200

172,100

69,70052,400204,100

109,900

128,900

57,40076,500102,700

64,900Rental revenues (Variable rent)

256,71378,481

86,34637,283

114,449

57,76582,471

82,283448,709110,81291,84331,521

98,594

2,619

340,339

125,894

82,882

84,394

64,128Other revenue (Note 1)

6,882

2,122

652

1,460

2,173

1,135

1,723

800

13,535

5,159

3,741

2,234

6,970

-

7,734

2,245

1,155

3,414

1,533

② Property related expenses

129,33173,76039,677

41,21162,53824,574

11,34922,634

91,136

134,073

32,45941,031

77,66565,881

117,557

55,94025,55189,552

26,359Fac ility management fees (a)

-

-

-

-

160

-

-

-

-

-

6,214

-

-

-

-

-

-

13,008-（of whic h, repair c ost)

-

-

-

-

160

-

-

-

-

-

-

-

-

-

-

-

-

139

-

( of whic h, utility expenses)
Tax and other public c harges (b)Insuranc e expenses (c )Deprec iation expenses（⑦）
Other expenses (d)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

10,744

6,878

8,658

7,355

14,281

1,900

4,434

6,197

25,167

14,167

4,208

9,568

11,392

9,193

6,416

3,961

4,022

2,935

4,467

798

293

173

243

619

128

84

151

347

796

169

118

584

620

232

249

217

520

198

117,329

66,17730,39033,20347,015

22,138

6,375

15,82865,165

118,701

21,45930,88865,22955,654110,454

51,276

20,856

72,676

21,239

458

410

454

409

461

407

455

457

455

407

408

454

458

412

454

453

454

410

454

③ Rental inc ome（①－②）

313,364

111,843

117,82145,931

106,584

61,926129,094

107,399

588,308

153,999

132,825

45,124

231,999

46,637359,416

129,599

134,986

100,957

104,202④ NOI （①－②＋⑦）

430,694

178,021

148,212

79,135

153,599

84,065

135,470

123,227

653,474

272,700

154,284

76,013

297,229102,292

469,870

180,876

155,843

173,634

125,442⑤ Capital expenditure

16,07765,328180

12,64734,509

446

907

2,699

13,83657,961

1,388

6,517

16,903

5,102

930

-

1,233

51,569

1,957⑥ NCF（④－⑤）

414,617

112,692

148,032

66,488

119,090

83,618

134,562

120,528

639,638

214,739

152,895

69,495

280,325

97,189468,939

180,876

154,609

122,064

123,485(Note 1) In the vast majority of hotels operated by MHM, INV receives the difference between the consumption tax deposited by MHM and the consumption tax paid by MHM. This amount of difference may exceed the amount of consumption tax to be recognized on INV’s rental revenues. In
such case, the total excess amount was treated as revenue not tied to individual properties until the fiscal period ended Dec ember 2023, in view of the low monetary importance. However, the excess amount of each property is recorded as "Other revenue" for each property from the fiscal
period ended June 2024. As a result, the amount of "Other revenue" for the subject properties generally increased from the previous period(Note 2) Using an exchange rate at the time of transaction regarding ①-⑦ of Cayman hotels

65Property Income (4/4)(JPY thousand )P roperty Number

D71

D72

D73

D74

Hotel
Property Name

Hotel Nord

MyS tays

Art Hotel

Otaru

Kagoshima

Asahikawa

Hotel① Rental revenues
Rent, c ommon area fees

MyS tays

MyS tays
Matsuyama

Tenmonkan

number of operating days

D75
Hotel
S apporo
S usukino

D76

D77

Hotel

Hotel

D78

MyS tays

MyS tays

S apporo

S apporo

D79

D80

Nakajima

Nakajima

Park

Park Annex

Flexstay Inn

MYS TAYS

S akuragicho

Asakusa
Kuramae

D81

D82

Hotel

MyCUBE by

D83

D84

Hotel

MyS tays

Hotel

Kagoshima

MyS taysTenmonkan

NayoroMyS tays

Art Hotel

PremierMorioka

Fusaki Beach

D86

Tateshina& Villas

D87

Takinoyu

D88

Hotel

Hotel

Resort Hotel Grand Hotel

Narita

Annex

D85

Hotel

MyS tays

MyS tays

MyS tays

Aomori

Okayama

S oga

S tation

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

182

114,41289,705

115,574

98,59742,56629,921

18,74546,724

43,153

26,101

26,703

215,420

109,853

627,322

194,891

64,59585,84878,379112,494

88,123

108,773

96,47841,97428,98318,65546,46642,06825,65526,316

209,980

109,626

627,322

194,887

63,72584,22277,650Rental revenues (Fixed rent)

50,80057,35942,20056,60031,30025,80018,40020,50019,00018,60016,200151,400

102,100

253,500

42,40017,90022,80019,200Rental revenues (Variable rent)

58,45061,69430,764

66,57339,878

10,674

3,183

255

25,96623,068

7,055

10,116

58,5807,526

373,822

152,487

45,82561,422Other revenue (Note 1)

1,917

1,581

6,800

2,119

592

938

89

257

1,085

446

386

5,439

226

-

4

870

1,625

728

② Property related expenses

39,15230,30585,61840,61916,19722,021

15,177

9,033

9,648

9,277

16,146

151,588

107,820

333,894

151,346

16,79542,082

17,664

907

2,279

-

-

-

-

-

-

-

1,000

-

-

23,400

-

4,035

-

-

-

-

279

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Fac ility management fees (a)（of whic h, repair c ost)
( of whic h, utility expenses)
Tax and other public c harges (b)

7

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

3,531

3,241

7,552

3,873

1,051

3,332

881

1,433

3,776

794

1,325

19,854

6,825

21,963

3,309

1,503

1,982

1,649

Insuranc e expenses (c )Deprec iation expenses（⑦）

239

233

841

286

95

209

70

50

71

79

56

1,303

542

1,053

633

106

119

123

34,01224,093

68,66736,001

14,59418,023

13,771

7,094

5,346

6,949

14,311

129,965

76,694

310,523

139,681

14,832

39,626

15,537

Other expenses (d)

461

457

8,556

457

455

455

454

455

454

454

453

464

358

353

3,685

352

353

354

③ Rental inc ome（①－②）

75,26059,40029,95657,97826,369

7,900

3,567

37,69133,505

16,824

10,557

63,832

2,033

293,428

43,54547,80043,76660,715④ NOI （①－②＋⑦）

109,272

83,493

98,623

93,97940,96425,923

17,33944,78638,851

23,77324,868

193,79778,727603,951

183,227

62,632

83,39376,252⑤ Capital expenditure

15,761

6,538

30,614

3,220

3,257

146,403

13,460

648

193

5,397

1,668

24,378

9,320

8,910

656

565

1,055

1,141

⑥ NCF（④－⑤）

93,511

76,95568,00990,75937,707-120,479

3,879

44,13838,65818,37623,199169,419

69,406595,041

182,571

62,067

82,33875,110

P roperty Number

P roperty Number

D89
Tazawako

Property Name

D200

D201

Westin Grand

Lake Resort

subtotal

Property Name

Total

& Onsen

Cayman S even S unshine S uites
Mile Beach

Resort(Note 2)
number of operating days
① Rental revenues
Rent, c ommon area fees

182

-

-

28,574

13,262,282

14,933,032
14,560,812

28,57413,017,242

Rental revenues (Fixed rent)

13,6005,942,596

Rental revenues (Variable rent)

14,974

7,074,645

Other revenue (Note 1)② Property related expenses
Fac ility management fees (a)TotalResort & S pa-

245,040

372,220

22,907

4,263,505

5,107,042

number of operating days

(Note 2)
182

182

-

① Management contract profits

4,234,691

539,5814,774,272

Management contract profits

4,234,691

539,5814,774,272

Other revenue② Property related expenses

-

-

-

580,150

156,182

736,333

88

153,189435,871

Facility management fees (a)

-

-

-

（of whic h, repair c ost)

-

5,745

18,736（of which, repair cost)

-

-

-

( of whic h, utility expenses)-

22,10140,821( of which, utility expenses)

-

-

-

1,107

537,797623,898

Tax and other public charges (b)

-

-

-

193

21,28024,541

Insurance expenses (c)172,356

40,765

213,122451,610

Tax and other public c harges (b)Insuranc e expenses (c )Deprec iation expenses（⑦）

21,1603,499,417

3,889,859

Depreciation expenses（⑦）

349,896

101,713

Other expenses (d)35851,820132,870

Other expenses (d)57,897

13,70371,600③ Rental inc ome（①－②）

5,666

8,998,776

9,825,990③ Rental income（①－②）

3,654,540

383,399

4,037,939④ NOI （①－②＋⑦）

26,826

12,498,194

13,715,849④ NOI （①－②＋⑦）

4,004,437

485,113

4,489,550⑤ Capital expenditure

5,784

1,504,704

1,689,896⑤ Capital expenditure

124,284

8,850

133,135⑥ NCF（④－⑤）

21,042

10,993,490

12,025,953⑥ NCF（④－⑤）

3,880,152

476,262

4,356,414(Note 1) In the vast majority of hotels operated by MHM, INV receives the difference between the consumption tax deposited by MHM and the consumption tax paid by MHM. This amount of difference may exceed the amount of consumption tax to be recognized on INV’s rental revenues. In
such case, the total excess amount was treated as revenue not tied to individual properties until the fiscal period ended Dec ember 2023, in view of the low monetary importance. However, the excess amount of each property is recorded as "Other revenue" for each property from the fiscal
period ended June 2024. As a result, the amount of "Other revenue" for the subject properties generally increased from the previous period(Note 2) Using an exchange rate at the time of transaction regarding ①-⑦ of Cayman hotels

66Appraisal Value (1/4)(JPY thousand )Property

Property Name

NumberAcquisitionPrice
1,251,830

As of the end of December 2023
Book Value

As of the end of June 2024

Appraisal Value

Cap Rate

Book Value

1,082,288

1,320,000

4.1%

1,075,949

Change (Note 1)

Appraiser

Cap Rate(Note 2)

Appraisal Value

Cap Rate

Appraisal Value

1,360,000

4.0%

40,000-0.1pt Assets R&D

A26

Nisshin Palacestage Daitabashi

A28

Growth Maison Gotanda

888,200

810,6111,150,000

3.8%

811,918

1,180,000

3.7%

30,000-0.1pt Assets R&D

A29

Growth Maison Kameido

1,070,850

921,762

1,310,000

3.9%

919,203

1,360,000

3.8%

50,000-0.1pt Assets R&D

A30

Emerald House

1,505,161

1,299,175

1,510,000

4.1%

1,309,933

1,550,000

4.0%

40,000-0.1pt Assets R&D

A32

S uncrest S hakujii-Koen

1,088,979

1,045,484

1,290,000

4.2%

1,042,116

1,320,000

4.1%

30,000-0.1pt Assets R&D

A33

Growth Maison S hin-Yokohama

1,059,457

919,418

1,330,000

4.2%

919,015

1,360,000

4.1%

30,000-0.1pt Assets R&D

A34

Belle Face Ueno-Okachimachi

1,023,074

893,019

1,190,000

3.7%

888,286

1,220,000

3.6%

30,000-0.1pt Assets R&D

A35

Grand Rire Kameido

906,121757,216

1,120,000

4.1%

752,520

1,140,000

4.0%

20,000-0.1pt Assets R&D

A37

Growth Maison Yoga

795,986

707,211

869,000

3.8%

704,258

891,000

3.7%

22,000-0.1pt Assets R&D

A38

Route Tachikawa

676,951

692,981733,000

4.2%

690,486

752,000

4.1%

19,000-0.1pt Assets R&D

A39

S hibuya-Honmachi Mansion

651,474

713,327

743,000

4.2%

711,293764,000

4.1%

21,000-0.1pt Assets R&D

A40

City Heights Kinuta

646,337

657,951

639,000

4.2%

657,974

657,000

4.1%

18,000-0.1pt Assets R&D

A41

Acseeds Tower Kawaguchi-Namiki

620,893

485,528

832,000

4.7%

480,906

851,000

4.6%

19,000-0.1pt Assets R&D

A43

College S quare Machida589,553

549,350537,000

4.9%

547,208

548,000

4.8%

11,000-0.1pt Assets R&D

A44

Belair Meguro

589,004

544,326

667,000

3.6%

542,450

694,000

3.5%

27,000-0.1pt Assets R&D

A45

Wacore Tsunashima I

572,914553,542575,000

4.4%

553,408

588,000

4.3%

13,000-0.1pt Assets R&D

A46

Foros Nakamurabashi

566,980

488,422652,000

4.0%

489,037

673,000

3.9%

21,000-0.1pt Assets R&D

A47

Growth Maison Kaijin

557,256

512,946

580,000

4.6%

507,151

594,000

4.5%

14,000-0.1pt Assets R&D

A48

College S quare Machiya

510,721443,509630,000

4.0%

439,331645,000

3.9%

15,000-0.1pt Assets R&D

A59

Towa City Coop S hin-otsuka II

866,000

779,884

1,390,000

3.9%

788,749

1,390,000

3.9%

-

A61

Bichsel Musashiseki

577,000

577,069

865,000

3.8%

576,230

866,000

3.8%

1,000

- Morii

A63

Towa City Coop S engencho

1,110,000

995,461

1,560,000

4.5%

992,662

1,560,000

4.5%-- JREI

A64

Royal Park Omachi

415,000

374,634

715,000

4.6%

370,837

716,000

4.6%

1,000

- JREI

A65

Lexington S quare Haginomachi

330,000

252,027

464,000

4.7%

250,617464,000

4.8%-

0.1pt JREI

A66

Visconti Kakuozan

255,000

225,223305,000

4.3%

224,022304,000

4.3%-1,000

A72

Lexington S quare Honjo-Azumabashi

511,000

399,989

786,000

3.3%

400,826

804,000

3.3%

18,000- Tanizawa

A73

AMS TOWER Minami 6-Jo

1,180,000

854,926

1,310,000

4.2%

851,185

1,310,000

4.2%-- Tanizawa

A84

Revest Heian

595,000

477,643878,000

4.0%

471,202879,000

4.0%

1,000

- JREI

A87

Excellente Kagurazaka

543,000

482,494

878,000

3.2%

480,207878,000

3.2%-- JREI

A90

Queen's Court Fukuzumi

456,000

400,888820,000

3.3%

397,812834,000

3.3%

14,000- JREI

A92

Belair Oimachi

412,000

376,562

681,000

3.3%

373,305

680,000

3.3%-1,000- JREI

A93

S iete Minami-Tsukaguchi

374,000

324,671

581,000

4.0%

330,849

585,000

4.0%

4,000

- JREI

A94

Prime Life S annomiya Isogami Koen

373,000

320,163

579,000

3.7%

323,080

579,000

3.7%-- JREI

A96

Century Park S hinkawa 1-bankan

335,000

284,345

551,000

4.4%

282,155

551,000

4.4%-- JREI

A97

West Avenue

331,000

302,049

430,000

4.2%

301,882

431,000

4.2%

1,000

- JREI- JREI- Tanizawa(Note 1) With regard to "increase / decrease", we calculate it excluding properties acquired / sold during the period(Note 2) The names of the appraisers in the chart are abridged. Official names are as follows: Assets R&D: Assets Research and Development Inc., JREI: Japan Real Estate Institute, Morii: JLL Morii Valuation & Advisory K.K., Tanizawa：The Tanizawa Sōgō Appraisal Co., Ltd., Daiwa：Daiwa Real EstateAppraisal Co., Ltd.
(Note 3) Includes ¥1,849 million for acquisition of additional floor as of October 31 2017
(Note 4) Includes ¥21.6 million for acquisition of adjacent land as of September 9, 2022
(Note 5) For the overseas hotels, the book values as of May 9, 2019 when INV acquired the leasehold interest of the hotels directly is deemed the acquisition price of these properties, which are calculated using an exchange rate of USD1 = ¥110.45 fixed by the foreign exchange forward contract executed on
July 26, 2018 denominated in Japanese Yen. Moreover, the book value is calculated by subtracting the accumulated amount of depreciation from the total of acquisition price, acquisition cost and CAPEX. The payment in USD is converted in JPY using an exchange rate at the time of transaction.
Appraisal values for June 2023 FP and December 2023 FP are converted into JPY using the exchange rates of USD 1 = ¥ 144.99 and ¥ 141.83 respectively, which are the rates on closing date of each fiscal period(Note 6) The amount of acquisition price, book value and appraisal value is rounded down to the nearest thousand yen. Percentages are rounded to one decimal place

67

Appraisal Value (2/4)(JPY thousand )Property

Property Name

NumberA99

Prime Life Mikage

A101
A102

AcquisitionPrice

As of the end of December 2023
Book Value

As of the end of June 2024

Appraisal Value

Cap Rate

Book Value

Change (Note 1)

Appraisal Value

Cap Rate

Appraisal Value

Appraiser

Cap Rate(Note 2)

297,000

253,318

439,000

4.0%

254,906

438,000

4.0%-1,000- JREI

Lieto Court Mukojima

1,683,000

1,569,682

2,310,000

3.6%

1,559,604

2,310,000

3.6%-- JREI

Lieto Court Nishi-Ojima

1,634,000

1,514,118

2,240,000

3.4%

1,503,892

2,240,000

3.4%-- JREI

A103

Royal Parks Momozaka

2,910,000

2,417,469

3,290,000

3.8%

2,374,579

3,160,000

3.8%-130,000- Morii

A104

Royal Parks S hinden

5,024,000

4,432,858

6,200,000

4.0%

4,385,281

6,150,000

4.0%-50,000- Morii

A106

Royal Parks S easir Minami-S enju

2,683,000

2,392,522

3,280,000

5.0%

2,361,540

3,270,000

5.0%-10,000- JREI

38,465,748

34,086,080

48,229,000-

33,897,885

48,546,000-

317,000

2,320,000

1,592,723

2,380,000

6.1%

1,575,668

2,380,000

6.1%-

S ubtotal of Residential-

B18

AEON TOWN S ukagawa

2,320,000

1,592,723

2,380,000-

1,575,668

2,380,000

-

-

D01

Hotel MyS tays Kanda

2,851,000

2,758,121

5,060,000

4.1%

2,738,797

5,320,000

3.9%

260,000-0.2pt JREI

D02

Hotel MyS tays Asakusa

2,584,000

2,436,018

4,480,000

4.4%

2,427,412

4,610,000

4.2%

130,000-0.2pt JREI

D03

Hotel MyS tays Kyoto-S hijo

6,024,460

5,387,350

8,300,000

4.5%

5,340,227

8,640,000

4.3%

340,000-0.2pt JREI

D04

MyS tays S hin- Urayasu Conference Center

4,930,200

4,310,187

7,610,000

4.7%

4,339,040

8,230,000

4.6%

620,000-0.1pt JREI

D05

Hotel MyS tays Maihama

4,870,312

4,433,756

7,540,000

4.4%

4,402,571

7,960,000

4.4%

420,000- JREI

D06

Hotel MyS tays Premier Dojima

3,845,400

3,609,235

6,610,000

4.3%

3,617,059

6,890,000

4.2%

280,000-0.1pt JREI

D07

Hotel MyS tays Nagoya-S akae

2,958,000

2,473,918

5,620,000

5.0%

2,456,402

5,650,000

4.9%

30,000-0.1pt JREI

D08

Hotel MyS tays S akaisuji-Honmachi

2,514,820

2,200,523

3,340,000

4.4%

2,182,285

3,420,000

4.3%

80,000-0.1pt JREI

D09

Hotel MyS tays Yokohama

2,119,900

2,060,551

4,190,000

5.5%

2,070,233

4,510,000

5.4%

320,000-0.1pt JREI

D10Hotel MyS tays Nippori

1,898,540

1,719,472

2,570,000

4.4%

1,712,239

2,690,000

4.2%

120,000-0.2pt JREI

D11

Hotel MyS tays Fukuoka-Tenjin-Minami

1,570,520

1,367,250

5,820,000

4.5%

1,355,793

6,070,000

4.3%

250,000-0.2pt JREI

D12

Flexstay Inn Iidabashi

1,381,660

1,299,554

2,110,000

4.3%

1,290,272

2,210,000

4.1%

100,000-0.2pt JREI

D13

Hotel MyS tays Ueno Inaricho

1,331,960

1,159,108

2,050,000

4.2%

1,151,223

2,160,000

4.0%

110,000-0.2pt JREI

D14

Flexstay Inn S hinagawa

1,242,500

1,159,557

2,060,000

4.2%

1,158,631

2,120,000

4.1%

60,000-0.1pt JREI

D15

Flexstay Inn Tokiwadai

1,242,500

1,171,454

2,190,000

4.6%

1,171,859

2,270,000

4.4%

80,000-0.2pt JREI

D16

Flexstay Inn S ugamo

1,192,800

1,060,640

2,220,000

4.6%

1,060,947

2,320,000

4.4%

100,000-0.2pt JREI

D17

Hotel MyS tays Otemae

1,192,800

1,093,475

2,570,000

4.8%

1,088,028

2,640,000

4.7%

70,000-0.1pt JREI

D18

Hotel MyS tays Kiyosumi S hirakawa

749,476

819,943

1,540,000

4.5%

813,920

1,580,000

4.4%

40,000-0.1pt JREI

D19

Flexstay Inn Nakanobu P1

589,442

543,102844,000

4.4%

539,788864,000

4.3%

20,000-0.1pt JREI

D20

Flexstay Inn Nakanobu P2

283,290

275,729

406,000

0.0%

274,976

416,000

4.3%

10,0004.3pt JREID21

APA Hotel Yokohama-Kannai

8,350,000

7,107,012

10,000,000

4.2%

7,392,964

10,000,000

4.2%

-

- JREI

D22

Hotel MyS tays Hakodate-Goryokaku

2,792,000

2,612,457

4,000,000

5.1%

2,621,779

4,080,000

5.0%

80,000-0.1pt JREI

D23

Flexstay Inn S hirogane

2,119,000

2,046,887

2,430,000

4.4%

2,046,767

2,520,000

4.2%

90,000-0.2pt JREI

D24

Hotel MyS tays Haneda

7,801,000

6,853,160

8,470,000

4.2%

6,803,595

8,810,000

4.0%

340,000-0.2pt JREI

D25

Hotel MyS tays Kameido P1

5,594,000

5,171,406

7,730,000

4.5%

5,153,096

8,070,000

4.3%

340,000-0.2pt JREI

D26

Hotel MyS tays Ueno Iriyaguchi

3,821,000

3,538,321

3,980,000

4.5%

3,516,727

4,170,000

4.3%

190,000-0.2pt JREIS ubtotal of Offices and Commercial Facilities-- Morii-(Note 1) With regard to "increase / decrease", we calculate it excluding properties acquired / sold during the period(Note 2) The names of the appraisers in the chart are abridged. Official names are as follows: Assets R&D: Assets Research and Development Inc., JREI: Japan Real Estate Institute, Morii: JLL Morii Valuation & Advisory K.K., Tanizawa：The Tanizawa Sōgō Appraisal Co., Ltd., Daiwa：Daiwa Real EstateAppraisal Co., Ltd.
(Note 3) Includes ¥1,849 million for acquisition of additional floor as of October 31 2017
(Note 4) Includes ¥21.6 million for acquisition of adjacent land as of September 9, 2022
(Note 5) For the overseas hotels, the book values as of May 9, 2019 when INV acquired the leasehold interest of the hotels directly is deemed the acquisition price of these properties, which are calculated using an exchange rate of USD1 = ¥110.45 fixed by the foreign exchange forward contract executed on
July 26, 2018 denominated in Japanese Yen. Moreover, the book value is calculated by subtracting the accumulated amount of depreciation from the total of acquisition price, acquisition cost and CAPEX. The payment in USD is converted in JPY using an exchange rate at the time of transaction.
Appraisal values for June 2023 FP and December 2023 FP are converted into JPY using the exchange rates of USD 1 = ¥ 144.99 and ¥ 141.83 respectively, which are the rates on closing date of each fiscal period(Note 6) The amount of acquisition price, book value and appraisal value is rounded down to the nearest thousand yen. Percentages are rounded to one decimal place-

68Appraisal Value (3/4)(JPY thousand )Property

Property Name

NumberAcquisitionPrice

As of the end of December 2023
Book Value

As of the end of June 2024

Appraisal Value

Cap Rate

Book Value

Change (Note 1)

Appraisal Value

Cap Rate

Appraisal Value

Appraiser

Cap Rate(Note 2)

D27

Hotel MyS tays Kameido P2

3,742,000

3,412,975

5,180,000

4.5%

3,392,109

5,390,000

4.3%

210,000-0.2pt JREI

D28

Hotel MyS tays S himizu

2,198,000

1,959,390

2,510,000

5.3%

1,935,972

2,580,000

5.2%

70,000-0.1pt JREI

D29

S uper Hotel S hinbashi/ Karasumoriguchi

1,624,000

1,552,331

1,880,000

3.6%

1,547,613

1,930,000

3.5%

50,000-0.1pt JREI

D30

Flexstay Inn Higashi-Jujo

1,277,000

1,245,299

1,390,000

4.7%

1,246,158

1,430,000

4.6%

40,000-0.1pt JREI

D31

Hotel MyS tays Utsunomiya

1,237,000

1,180,632

2,100,000

5.3%

1,165,940

2,170,000

5.2%

70,000-0.1pt JREI

D32

Flexstay Inn Kawasaki-Kaizuka

980,000

849,867

1,160,000

4.8%

843,626

1,210,000

4.6%

50,000-0.2pt JREI

D33

Comfort Hotel Toyama

979,000

856,581

1,180,000

5.0%

847,320

1,200,000

4.9%

20,000-0.1pt JREI

D34

Flexstay Inn Kawasaki-Ogawacho

906,000

843,589

913,000

4.6%

841,360

948,000

4.4%

35,000-0.2pt JREI

D35

Flexstay Inn Ekoda

5,069,000

4,679,970

4,690,000

4.7%

4,659,042

4,870,000

4.5%

180,000-0.2pt JREI

D36

S uper Hotel Tokyo-JR Tachikawa Kitaguchi

1,170,000

1,038,015

1,240,000

4.2%

1,029,532

1,240,000

4.2%

-

D37

S uper Hotel JR Ueno-iriyaguchi

1,130,000

1,032,835

1,200,000

3.8%

1,026,489

1,210,000

3.8%

10,000D38

Hotel MyS tays S hinsaibashi

3,160,000

2,903,644

2,080,000

4.7%

2,887,429

2,140,000

4.6%

60,000

D39

Comfort Hotel Kurosaki

1,148,000

971,415

1,200,000

5.1%

968,648

1,200,000

5.1%-- Daiwa

D40

Comfort Hotel Maebashi

1,128,000

901,107

1,100,000

4.5%

882,775

1,090,000

4.5%-10,000- Daiwa

D41

Comfort Hotel Tsubamesanjo

1,010,000

870,388

1,060,000

5.1%

865,017

1,070,000

5.1%

10,000- Daiwa

D42

Comfort Hotel Kitami

851,000

715,729

883,000

5.3%

703,286

883,000

5.3%-- Daiwa

D43

Hotel MyS tays Gotanda S tation (Note 3)

26,523,000

26,095,013

24,500,000

4.8%

26,059,752

24,900,000

4.7%

400,000-0.1pt Morii

D44

Hotel Epinard Nasu (Note 4)

21,002,640

18,057,516

23,400,000

5.8%

17,874,629

23,800,000

5.7%

400,000-0.1pt Morii

D45

Hotel MyS tays Fukuoka Tenjin

8,059,000

7,565,628

8,360,000

4.7%

7,523,126

8,530,000

4.6%

170,000-0.1pt Morii

D46

Hotel MyS tays Hamamatsucho

7,959,000

7,690,795

6,300,000

4.5%

7,660,471

6,470,000

4.4%

170,000-0.1pt Morii

D47

Hotel MyS tays Premier Kanazawa

13,761,000

12,146,709

12,700,000

5.2%

12,046,652

12,700,000

5.2%

-

- Morii

D48

Takamatsu Tokyu REI Hotel

2,139,000

2,083,820

1,720,000

5.0%

2,070,824

1,740,000

5.0%

20,000D49

Hotel MyS tays Premier Hamamatsucho

8,000,000

7,882,675

10,100,000

4.2%

7,862,923

10,900,000

4.1%

800,000

D50

Hotel MyS tays S hin Osaka Conference Center

13,068,000

12,756,689

13,400,000

4.6%

12,723,384

13,400,000

4.6%

-

- Tanizawa

D51

Hotel MyS tays Premier Omori

9,781,000

9,697,057

10,300,000

4.3%

9,666,439

11,200,000

4.3%

900,000- Tanizawa

D52

Kamenoi Hotel Beppu

8,870,000

7,527,194

9,810,000

5.9%

7,425,941

9,920,000

5.9%

110,000- Tanizawa

D53

Hotel MyS tays S apporo S tation

7,880,000

7,336,592

8,820,000

4.4%

7,335,743

9,000,000

4.4%

180,000- Tanizawa

D54

Hotel MyS tays Yokohama Kannai

5,326,000

4,996,742

5,710,000

4.3%

4,966,531

5,780,000

4.3%

70,000- Tanizawa

D55

Art Hotel Joetsu

2,772,000

2,544,711

2,660,000

5.8%

2,524,155

2,720,000

5.8%

60,000- Tanizawa

D56

Art Hotel Hirosaki City

2,723,000

2,561,649

2,500,000

6.0%

2,549,143

2,540,000

5.9%

40,000-0.1pt Tanizawa

D57

Hotel MyS tays Oita

1,604,000

1,402,195

1,680,000

5.6%

1,380,503

1,700,000

5.6%

20,000- Tanizawa

D58

Hotel MyS tays Gotanda

4,068,000

4,028,864

4,310,000

4.1%

4,023,396

4,490,000

4.1%

180,000

D59

Hotel MyS tays Tachikawa

3,257,000

3,158,537

3,420,000

4.2%

3,145,407

3,420,000

4.2%

-

D60

Hotel MyS tays Premier Akasaka

20,691,000

20,031,859

23,400,000

3.8%

19,980,530

26,000,000

3.6%

2,600,000

D61

Hotel MyS tays Premier S apporo Park

16,731,000

15,760,752

16,300,000

4.6%

15,700,012

16,500,000

4.6%

200,000- Daiwa- Daiwa-0.1pt JREI

- Daiwa-0.1pt JREI

- Tanizawa- Daiwa-0.2pt JREI
- Tanizawa(Note 1) With regard to "increase / decrease", we calculate it excluding properties acquired / sold during the period(Note 2) The names of the appraisers in the chart are abridged. Official names are as follows: Assets R&D: Assets Research and Development Inc., JREI: Japan Real Estate Institute, Morii: JLL Morii Valuation & Advisory K.K., Tanizawa：The Tanizawa Sōgō Appraisal Co., Ltd., Daiwa：Daiwa Real EstateAppraisal Co., Ltd.
(Note 3) Includes ¥1,849 million for acquisition of additional floor as of October 31 2017
(Note 4) Includes ¥21.6 million for acquisition of adjacent land as of September 9, 2022
(Note 5) For the overseas hotels, the book values as of May 9, 2019 when INV acquired the leasehold interest of the hotels directly is deemed the acquisition price of these properties, which are calculated using an exchange rate of USD1 = ¥110.45 fixed by the foreign exchange forward contract executed on
July 26, 2018 denominated in Japanese Yen. Moreover, the book value is calculated by subtracting the accumulated amount of depreciation from the total of acquisition price, acquisition cost and CAPEX. The payment in USD is converted in JPY using an exchange rate at the time of transaction.
Appraisal values for June 2023 FP and December 2023 FP are converted into JPY using the exchange rates of USD 1 = ¥ 144.99 and ¥ 141.83 respectively, which are the rates on closing date of each fiscal period(Note 6) The amount of acquisition price, book value and appraisal value is rounded down to the nearest thousand yen. Percentages are rounded to one decimal place69

Appraisal Value (4/4)(JPY thousand )Property

Property Name

NumberD62

AcquisitionPrice
5,286,000

Hotel MyS tays Ueno East

As of the end of December 2023

As of the end of June 2024

Change (Note 1)

Book Value

Appraisal Value

Cap Rate

Book Value

Appraisal Value

Cap Rate

Appraisal Value

5,096,465

5,460,000

4.1%

5,076,395

5,490,000

4.1%

30,000Appraiser

Cap Rate(Note 2)- Tanizawa-0.1pt JREI

D63

Hotel MyS tays Midosuji Honmachi

5,039,000

4,718,487

3,130,000

4.1%

4,694,116

3,220,000

4.0%

90,000D64

Hotel MyS tays S apporo Aspen

15,543,000

15,128,129

15,400,000

4.5%

15,064,271

15,400,000

4.5%

-

D65

Art Hotel Ishigakijima

9,731,000

9,374,755

9,670,000

5.1%

9,324,202

9,720,000

5.1%

50,000- JREI

D66

Hotel MyS tays Fuji Onsen Resort

9,405,000

8,456,390

10,700,000

5.1%

8,346,867

11,500,000

5.0%

800,000-0.1pt JREI

D67

Hotel S onia Otaru

5,930,000

5,440,633

6,420,000

5.0%

5,389,356

6,920,000

5.0%

500,000- Tanizawa

D68

Hotel MyS tays Kanazawa Castle

5,682,000

5,568,347

5,750,000

5.1%

5,548,723

5,840,000

5.0%

90,000-0.1pt Tanizawa

D69

Art Hotel Niigata S tation

5,524,000

5,137,951

5,780,000

5.2%

5,116,844

5,810,000

5.2%

30,000

D70

Hotel MyS tays Nagoya Nishiki

5,197,000

5,006,185

5,240,000

4.3%

4,986,903

5,350,000

4.2%

110,000

D71

Hotel Nord Otaru

4,296,000

4,145,912

4,380,000

5.1%

4,118,203

4,450,000

5.1%

70,000

D72

Hotel MyS tays Kagoshima Tenmonkan

3,445,000

3,290,659

3,550,000

4.9%

3,273,104

3,550,000

4.9%-- Tanizawa- Tanizawa-0.1pt Morii- Tanizawa- Daiwa-0.1pt Tanizawa

D73

Art Hotel Asahikawa

3,197,000

2,817,637

3,340,000

5.3%

2,779,583

3,410,000

5.2%

70,000D74

Hotel MyS tays Matsuyama

3,098,000

2,792,656

3,210,000

5.0%

2,759,874

3,220,000

5.0%

10,000- Daiwa

D75

Hotel MyS tays S apporo S usukino

3,059,000

2,944,833

2,980,000

4.7%

2,933,495

3,000,000

4.7%

20,000- Morii

D76

Hotel MyS tays S apporo Nakajima Park

2,118,000

1,999,762

2,010,000

4.8%

2,128,142

2,020,000

4.8%

10,000

D77

Hotel MyS tays S apporo Nakajima Park Annex

1,584,000

1,560,857

1,580,000

4.7%

1,560,545

1,580,000

4.7%-- Morii- Tanizawa

D78

Flexstay Inn S akuragicho

1,425,000

1,378,319

1,490,000

4.3%

1,371,872

1,510,000

4.3%

20,000- Daiwa

D79

MyCUBE by MYS TAYS Asakusa Kuramae

1,287,000

1,253,362

1,270,000

4.1%

1,248,209

1,290,000

4.1%

20,000- Daiwa

1,168,000

1,135,355

1,240,000

4.9%

1,133,803

1,240,000

4.9%-- Daiwa

957,000

840,320972,000

5.5%

827,678

973,000

5.5%

1,000

10,593,000

9,727,544

10,500,000

4.6%

9,621,957

10,600,000

4.6%

100,000

D80

Hotel MyS tays Kagoshima Tenmonkan Annex

D81

Hotel MyS tays Nayoro

D82

Hotel MyS tays Premier Narita- Morii- Tanizawa

D83

Art Hotel Morioka

5,643,000

5,204,939

5,520,000

5.2%

5,137,566

5,530,000

5.2%

10,000- Morii

D84

Fusaki Beach Resort Hotel & Villas

40,293,000

40,122,791

40,900,000

5.1%

39,821,280

42,000,000

5.0%

-

- JREI

D85

Tateshina Grand Hotel Takinoyu

8,365,000

8,472,971

8,600,000

5.8%

8,334,950

8,620,000

5.8%-- Tanizawa

D86

Hotel MyS tays Okayama

2,613,000

2,674,682

2,680,000

5.1%

2,660,891

2,740,000

5.0%-- JREI

D87

Hotel MyS tays Aomori S tation

2,445,000

2,420,161

2,470,000

5.7%

2,381,589

2,510,000

5.6%-- Morii

D88

Hotel MyS tays S oga

2,039,000

2,060,433

2,110,000

4.7%

2,046,235

2,160,000

4.7%-- Tanizawa- Daiwa

D89

Tazawako Lake Resort & Onsen

1,475,000

1,511,031

1,490,000

6.1%

1,495,933

1,490,000

6.1%

-

D200

Westin Grand Cayman S even Mile Beach Resort & S pa (Note 5)

30,061,308

27,593,742

67,199,054

8.3%

27,368,130

78,312,234

8.3%

11,113,180- CBRE

D201

S unshine S uites Resort (Note 5)

5,842,674

5,221,106

10,495,420

8.8%

5,128,243

13,030,563

8.8%

2,535,143- CBRES ubtotal of Hotels

490,015,203

460,103,406

578,432,474-

457,767,512

606,976,797-

27,274,323

-

-

Total

530,800,951

495,782,211

629,041,474-

493,241,067

657,902,797-

27,591,323--(Note 1) With regard to "increase / decrease", we calculate it excluding properties acquired / sold during the period(Note 2) The names of the appraisers in the chart are abridged. Official names are as follows: Assets R&D: Assets Research and Development Inc., JREI: Japan Real Estate Institute, Morii: JLL Morii Valuation & Advisory K.K., Tanizawa：The Tanizawa Sōgō Appraisal Co., Ltd., Daiwa：Daiwa Real EstateAppraisal Co., Ltd.
(Note 3) Includes ¥1,849 million for acquisition of additional floor as of October 31 2017
(Note 4) Includes ¥21.6 million for acquisition of adjacent land as of September 9, 2022
(Note 5) For the overseas hotels, the book values as of May 9, 2019 when INV acquired the leasehold interest of the hotels directly is deemed the acquisition price of these properties, which are calculated using an exchange rate of USD1 = ¥110.45 fixed by the foreign exchange forward contract executed on
July 26, 2018 denominated in Japanese Yen. Moreover, the book value is calculated by subtracting the accumulated amount of depreciation from the total of acquisition price, acquisition cost and CAPEX. The payment in USD is converted in JPY using an exchange rate at the time of transaction.
Appraisal values for June 2023 FP and December 2023 FP are converted into JPY using the exchange rates of USD 1 = ¥ 144.99 and ¥ 141.83 respectively, which are the rates on closing date of each fiscal period(Note 6) The amount of acquisition price, book value and appraisal value is rounded down to the nearest thousand yen. Percentages are rounded to one decimal place

70Portfolio Properties (1/4)
P roperty
Number

P roperty Name

Address

Acquisition
Date

Completion Date

Renovation P eriod(Hotel only)(Note 1)

A26
A28
A29
A30
A32
A33
A34
A35
A37
A38
A39
A40
A41
A43
A44
A45
A46
A47
A48
A59
A61
A63
A64
A65
A66
A72
A73
A84
A87
A90
A92
A93
A94
A96
A97
A99
A101
A102
A103
A104
A106
B18

Nisshin Palacestage Daitabashi
Growth Maison Gotanda
Growth Maison Kameido
Emerald House
S uncrest S hakujii-Koen
Growth Maison S hin-Yokohama
Belle Face Ueno-Okachimachi
Grand Rire Kameido
Growth Maison Yoga
Route Tachikawa
S hibuya-Honmachi Mansion
City Heights Kinuta
Acseeds Tower Kawaguchi-Namiki
College S quare Machida
Belair Meguro
Wacore Tsunashima I
Foros Nakamurabashi
Growth Maison Kaijin
College S quare Machiya
Towa City Coop S hin-otsuka II
Bichsel Musashiseki
Towa City Coop S engencho
Royal Park Omachi
Lexington S quare Haginomachi
Visconti Kakuozan
Lexington S quare Honjo-Azumabashi
AMS TOWER Minami 6-Jo
Revest Heian
Excellente Kagurazaka
Queen's Court Fukuzumi
Belair Oimachi
S iete Minami-Tsukaguchi
Prime Life S annomiya Isogami Koen
Century Park S hinkawa 1-bankan
West Avenue
Prime Life Mikage
Lieto Court Mukojima
Lieto Court Nishi-Ojima
Royal Parks Momozaka
Royal Parks S hinden
Royal Parks S easir Minami-S enju
S ubtotal of Residential
AEON TOWN S ukagawa
S ubtotal of Commercial Facilities

S uginami-ku, Tokyo
S hinagawa-ku, Tokyo
Koto-ku, Tokyo
Itabashi-ku, Tokyo
Nerima-ku, Tokyo
Yokohama, Kanagawa
Taito-ku, Tokyo
Koto-ku, Tokyo
S etagaya-ku, Tokyo
Tachikawa, TokyoS hibuya-ku, Tokyo
S etagaya-ku, Tokyo
Kawaguchi, S aitama
Machida, Tokyo
Meguro-ku, Tokyo

Nagoya, Aichi
S umida-ku, Tokyo
S apporo, Hokkaido
Nagoya, Aichi
S hinjuku-ku,Tokyo
Koto-ku, Tokyo
S hinagawa-ku, Tokyo
Amagasaki, Hyogo
Kobe Hyogo
Nagoya, Aichi
Kunitachi, Tokyo
Kobe, Hyogo
S umida-ku, Tokyo
Koto-ku, Tokyo
Okasa, Osaka
Adachi-ku, Tokyo
Arakawa-ku, Tokyo

Jul 28, 2005
Jan 30, 2006
Mar 30, 2006
Aug 1, 2006
Aug 3, 2006
Aug 3, 2006
Aug 1, 2006
Aug 3, 2006
Aug 3, 2006
Aug 3, 2006
Aug 3, 2006
Aug 3, 2006
Aug 3, 2006
Aug 1, 2006
Aug 1, 2006
Aug 3, 2006
Aug 3, 2006
Aug 1, 2006
Aug 3, 2006
Feb 1, 2010
Feb 1, 2010
Feb 1, 2010
Feb 1, 2010
Feb 1, 2010
Feb 1, 2010
Feb 1, 2010
Feb 1, 2010
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
S ep 28, 2012
Jul 16, 2015
Jul 16, 2015
Jan 22, 2016
Mar 31, 2016
Mar 14, 2017

Dec 1992
Jul 2005
Oct 2005
Feb 1995
Mar 1990
Mar 2006
Feb 2006
Mar 2006
Mar 2006
Mar 1997
Dec 1986
Mar 1983
Feb 2006
Mar 1984
Oct 2005
Feb 1991
S ep 2001
Oct 1993
Mar 2006
May 1993
Feb 1992
Oct 1992
Feb 1993
Aug 2005
S ep 2003
Oct 2006
Feb 2007
Nov 2006
Jan 2007
S ep 2006
Apr 2006
Jan 2007
Nov 2006
S ep 2001
Oct 1991
Jan 2007
Feb 2008
Feb 2008
Jun 2007Jun 2007
Aug 2006-

Sukagawa, Fukushima

Feb 1, 2010

Oct 2005-

Yokohama, Kanagawa

Nerima-ku, Tokyo
Funabashi, Chiba
Arakawa-ku, Tokyo
Toshima-ku, Tokyo
Nerima-ku, Tokyo
Yokohama, Kanagawa
S endai, Miyagi
Se ndai, Miyagi

Acquisition Investment
P riceRatio(JP Y mn)(%)

(Note 2)

(Note 3)

1,251
888
1,070
1,505
1,088
1,059
1,023
906
795
676
651
646
620
589
589
572
566
557
510
866
577
1,110
415
330
255
511
1,180
595
543
456
412
374
373
335
331
297
1,683
1,634
2,910
5,024
2,683
38,465
2,320
2,320

0.2
0.2
0.2
0.3
0.2
0.2
0.2
0.2
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.2
0.1
0.2
0.1
0.1
0.0
0.1
0.2
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.1
0.3
0.3
0.5
0.9
0.5
7.0
0.4
0.4

Rentable
Unit(Note 4)

98
48
66
96
29
68
64
72
39
24
25
19
57
62
25
50
37
34
43
58
70
154
51
39
8
33
120
40
33
25
26
40
32
44
40
28
82
91
147
248
113
2,478
1
1

Leasable

LeasedTotal

Occupancy

Area

Area

Number of

Rate

(m2 )

(m2 )

Tenants(%)(Note 5)(Note 5)

1,771.13
1,051.50
1,367.96
2,152.31
3,029.16
1,858.44
1,351.11
1,562.26
1,015.34
1,368.57
1,167.50
1,235.93
1,210.74
1,047.75
557.05907.46815.772,040.27
871.35
1,627.13
1,220.24
3,426.36
1,929.59
1,528.58
705.75784.744,460.56
1,554.03
701.92765.18530.601,020.86
789.12
1,477.62
794.80761.182,940.20
2,048.28
8,776.26
15,797.29
6,496.86
86,518.75
18,440.58
18,440.58

1,717.51
1,051.50
1,347.50
2,152.31
2,860.17
1,858.44
1,307.77
1,562.26
1,015.34
1,322.13
1,118.12
1,235.93
1,146.84
1,047.75
557.05834.38768.502,040.27
871.35
1,583.85
1,168.23
3,240.90
1,812.45
1,408.75
705.75784.74
4,095.15
1,554.03
701.92765.18530.60995.36789.12
1,276.02
735.18735.682,940.20
2,048.28
8,290.90
15,797.29
6,028.31
83,803.01
18,440.58
18,440.58

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
41
1
1

97.0
100.0
98.5
100.0
94.4
100.0
96.8
100.0
100.0
96.6
95.8
100.0
94.7
100.0
100.0
91.9
94.2
100.0
100.0
97.3
95.7
94.6
93.9
92.2
100.0
100.0
91.8
100.0
100.0
100.0
100.0
97.5
100.0
86.4
92.5
96.6
100.0
100.0
94.5
100.0
92.8
96.9
100.0
100.0

(Note 1) "Property number" refers to the asset owned by INV, classifying the residential asset as A, the office / commercial facility as B, the parking lot as C, the hotel as D according to the use of each property. The numbers with A, B, C, and D indicate the order of acquisition dates
and properties with the same acquisition date are arranged in the order of acquisition price(Note 2) "Acquisition price" indicates the purchase price stated in real estate sales contract or trust beneficiary rights transfer agreement etc. In addition, the price does not include consumption tax, etc., and it discards less than 1 million yen. Acquisition price of Sheraton GrandeTokyo Bay Hotel is calculated by applying 178,458 units of preferred equity interest contribution by INV (equivalent to 49.0% of preferred equity interest) to the JV TMK which owns the trust beneficiary interest of the Sheraton Grande Tokyo Bay Hotel as an underlying
asset. For "The Westin Grand Cayman Seven Mile Beach Resort & Spa" and "Sunshine Suites Resort", the book values as of May 9, 2019 when INV acquired the leasehold interest of the hotels directly is deemed the acquisition price of these properties, which are calculatedusing an exchange rate of USD1 = ¥110.45 fixed by the foreign exchange forward contract executed on July 26, 2018 denominated in Japanese Yen(Note 3) "Investment ratio" is the ratio to the total acquisition price of INV, rounded down to the second decimal place(Note 4) "Rentable units" includes shops, offices and etc. which are counted as one unit by each compartment(Note 5) For D200 The Westin Grand Cayman Seven Mile Beach Resort & Spa and D201 Sunshine Suites Resort, the area subject to management contract are indicated(Note 6) Construction period for conversion (conversion of zoning) is indicated.

71Portfolio Properties (2/4)
P roperty
Number

P roperty Name

Address

Acquisition
Date

Completion Date

Renovation P eriod(Hotel only)(Note 1)

D01
D02
D03
D04
D05
D06
D07
D08
D09
D10
D11
D12
D13
D14
D15
D16
D17
D18
D19
D20
D21
D22
D23
D24
D25
D26
D27
D28
D29
D30
D31
D32
D33
D34
D35
D36
D37
D38
D39
D40
D41
D42

Hotel MyS tays Kanda
Hotel MyS tays Asakusa
Hotel MyS tays Kyoto-S hijo
MyS tays S hin- Urayasu Conference Center
Hotel MyS tays Maihama
Hotel MyS tays Premier Dojima
Hotel MyS tays Nagoya-S akae
Hotel MyS tays S akaisuji-Honmachi
Hotel MyS tays Yokohama
Hotel MyS tays Nippori
Hotel MyS tays Fukuoka-Tenjin-Minami
Flexstay Inn Iidabashi
Hotel MyS tays Ueno InarichoFlexstay Inn S hinagawa
Flexstay Inn Tokiwadai
Flexstay Inn S ugamo
Hotel MyS tays Otemae
Hotel MyS tays Kiyosumi S hirakawa
Flexstay Inn Nakanobu P1
Flexstay Inn Nakanobu P2
APA Hotel Yokohama-Kannai
Hotel MyS tays Hakodate-Goryokaku
Flexstay Inn S hirogane
Hotel MyS tays Haneda
Hotel MyS tays Kameido P1
Hotel MyS tays Ueno Iriyaguchi
Hotel MyS tays Kameido P2
Hotel MyS tays S himizu
S uper Hotel S hinbashi/ Karasumoriguchi
Flexstay Inn Higashi-Jujo
Hotel MyS tays Utsunomiya
Flexstay Inn Kawasaki-Kaizuka
Comfort Hotel Toyama
Flexstay Inn Kawasaki-Ogawacho
Flexstay Inn Ekoda
S uper Hotel Tokyo-JR Tachikawa Kitaguchi
S uper Hotel JR Ueno-iriyaguchi
Hotel MyS tays S hinsaibashi
Comfort Hotel Kurosaki
Comfort Hotel Maebashi
Comfort Hotel Tsubamesanjo
Comfort Hotel Kitami

Chiyoda-ku, TokyoS umida-ku, Tokyo
Kyoto, Kyoto
Urayasu, Chiba
Urayasu, Chiba
Osaka, Osaka
Nagoya, Aichi
Osaka, Osaka
Yokohama, Kanagawa
Arakawa-ku, Tokyo
Fukuoka, Fukuoka
S hinjuku-ku, Tokyo
Taito-ku, Tokyo
S hinagawa-ku, Tokyo
Itabashi-ku, Tokyo
Toshima-ku, Tokyo
Osaka, Osaka
Koto-ku, Tokyo
S hinagawa-ku, Tokyo
S hinagawa-ku, Tokyo
Yokohama, Kanagawa
Hakodate, Hokkaido
Minato-ku, Tokyo
Ota-ku, Tokyo
Koto-ku, Tokyo
Taito-ku, Tokyo
Koto-ku, Tokyo
S hizuoka, S hizuoka
Minato-ku, Tokyo
Kita-ku, Tokyo

Maebashi, Gunma
S anjyo, Niigata
Kitami, Hokkaido

May 23, 2014
May 23, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Jul 17, 2014
Feb 6, 2015
Feb 6, 2015
Feb 6, 2015
Jul 16, 2015
Jul 16, 2015
Jul 16, 2015
Jul 16, 2015
Jul 16, 2015
Jul 16, 2015
Jul 16, 2015
Jul 16, 2015
Jul 16, 2015
Jul 16, 2015
Jul 16, 2015
Aug 28, 2015
Aug 28, 2015
Aug 28, 2015
Jan 22, 2016
Jan 22, 2016
Jan 22, 2016
Jan 22, 2016
Jan 22, 2016

Dec 2005
Jan 1990
Jan 2008
Mar 2009
Jun 2005
Aug 1990
Nov 1979
Jul 2008
Oct 1974
Apr 1987
Feb 2008
Dec 1990
Dec 1986
Oct 1986
Dec 1989
Jan 1992
Dec 1986
May 1992
S ep 1986
Mar 1989
Apr 2005
Feb 2008
Dec 1984
Apr 2001
Mar 1991
Nov 1985
Mar 1991
Jan 2007
Feb 2008
Jun 1986
Jan 1990
Apr 1990
Mar 2007
Apr 1989
Jan 1989
Nov 2007
Mar 2006
S ep 1984
Feb 2009
Mar 2009
Jun 2007
Mar 2008

D43

Hotel MyS tays Gotanda S tation

S hinagawa-ku, Tokyo

Mar 31, 2016

Mar 1974, Aug 1984

Utsunomiya, Tochigi
Kawasaki, Kanagawa
Toyama, Toyama
Kawasaki, Kanagawa

Nerima-ku, Tokyo
Tachikawa, Tokyo
Taito-ku, Tokyo
Osaka, Osaka
Kitakyusyu, Fukuoka

May-Aug 20162012 Nov-2012 Dec
May-Jul 2018
Feb-Mar, May 2018
Jan-Apr, May-Jun 20182018 Jan-2018 Mar, 2018
Apr-Jun 2013
Jun-Nov 2006, May-Jul
Feb-Mar 2011
Nov-Dec 20122011 Nov-2011 Dec
Mar 2013
Mar 2013
Dec 2012-Jan 2013
Jun-S ep 2019
S ep-Dec 2017
Feb-Apr 2018
Mar 2013
Nov 2013-Aug 2014
Jan-Mar 2012
Jan-Mar 2014
Jan-Mar 2013
Feb-Mar 2019
Oct-Dec 2018
Mar 2013
Nov 2013-Jan 2014
Jan-Mar 2014
Feb-Mar 2014
Jan-Mar 2013
Mar 2018
Jan-Mar 2015
Mar-Nov 2015,
Jun-Oct 2017

Acquisition Investment
P riceRatio(JP Y mn)(%)

(Note 2)

(Note 3)

Rentable
Unit(Note 4)

Leasable

LeasedTotal

Occupancy

Area

Area

Number of

Rate

(m2 )

(m2 )

Tenants(%)(Note 5)(Note 5)

2,851
2,584
6,024
4,930
4,870
3,845
2,958
2,514
2,119
1,898
1,570
1,381
1,331
1,242
1,242
1,192
1,192
749
589
283
8,350
2,792
2,119
7,801
5,594
3,821
3,742
2,198
1,624
1,277
1,237
980
979
906
5,069
1,170
1,130
3,160
1,148
1,128
1,010
851

0.5
0.5
1.1
0.9
0.9
0.7
0.5
0.5
0.4
0.3
0.3
0.3
0.2
0.2
0.2
0.2
0.2
0.1
0.1
0.1
1.5
0.5
0.4
1.4
1.0
0.7
0.7
0.4
0.3
0.2
0.2
0.2
0.2
0.2
0.9
0.2
0.2
0.6
0.2
0.2
0.2
0.2

126
161
224
175
90
153
279
191
194
93
178
62
72
55
130
105
112
58
39
22
452
211
84
174
266
97
177
152
74
89
125
64
150
62
210
96
69
57
151
154
133
127

2,585.72
3,327.38
7,145.53
6,232.30
2,456.36
9,445.32
9,064.71
4,188.83
7,379.43
1,719.29
3,412.71
2,953.38
1,150.76
1,134.52
2,539.75
2,089.86
4,956.66
2,673.64
770.56391.496,462.48
7,830.62
1,754.06
5,400.16
4,338.47
2,247.92
2,793.99
3,559.81
1,403.89
1,714.53
11,733.23
1,190.57
3,305.64
725.603,932.93
1,832.97
1,279.16
1,942.01
3,207.60
3,653.96
3,098.07
3,009.50

2,585.72
3,327.38
7,145.53
6,232.30
2,456.36
9,445.32
9,064.71
4,188.83
7,379.43
1,719.29
3,412.71
2,953.38
1,150.76
1,134.52
2,539.75
2,089.86
4,956.66
2,673.64
770.56391.496,462.48
7,830.62
1,754.06
5,400.16
4,338.47
2,247.92
2,793.99
3,559.81
1,403.89
1,714.53
11,733.23
1,190.57
3,305.64
725.603,932.93
1,832.97
1,279.16
1,942.01
3,207.60
3,653.96
3,098.07
3,009.50

1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
2
1

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

26,5234.8

386

10,137.88

10,137.88

1

100.0

(Note 1) "Property number" refers to the asset owned by INV, classifying the residential asset as A, the office / commercial facility as B, the parking lot as C, the hotel as D according to the use of each property. The numbers with A, B, C, and D indicate the order of acquisition dates
and properties with the same acquisition date are arranged in the order of acquisition price(Note 2) "Acquisition price" indicates the purchase price stated in real estate sales contract or trust beneficiary rights transfer agreement etc. In addition, the price does not include consumption tax, etc., and it discards less than 1 million yen. Acquisition price of Sheraton GrandeTokyo Bay Hotel is calculated by applying 178,458 units of preferred equity interest contribution by INV (equivalent to 49.0% of preferred equity interest) to the JV TMK which owns the trust beneficiary interest of the Sheraton Grande Tokyo Bay Hotel as an underlying
asset. For "The Westin Grand Cayman Seven Mile Beach Resort & Spa" and "Sunshine Suites Resort", the book values as of May 9, 2019 when INV acquired the leasehold interest of the hotels directly is deemed the acquisition price of these properties, which are calculatedusing an exchange rate of USD1 = ¥110.45 fixed by the foreign exchange forward contract executed on July 26, 2018 denominated in Japanese Yen(Note 3) "Investment ratio" is the ratio to the total acquisition price of INV, rounded down to the second decimal place(Note 4) "Rentable units" includes shops, offices and etc. which are counted as one unit by each compartment(Note 5) For D200 The Westin Grand Cayman Seven Mile Beach Resort & Spa and D201 Sunshine Suites Resort, the area subject to management contract are indicated(Note 6) Construction period for conversion (conversion of zoning) is indicated.

72

Portfolio Properties (3/4)
P roperty

P roperty Name

NumberAddress

Acquisition
Date

Completion Date

Renovation P eriod(Hotel only)(Note 1)

D44

Hotel Epinard Nasu

Nasu-gun, Tochigi

Mar 31, 2016

Feb 1992, Jun 1995

D45
D46
D47

Hotel MyS tays Fukuoka Tenjin
Hotel MyS tays Hamamatsucho
Hotel MyS tays Premier Kanazawa

Fukuoka, Fukuoka
Minato-ku, Tokyo
Kanazawa, Ishikawa

Mar 31, 2016
Mar 31, 2016
Jun 15, 2016

Aug 2008
Oct 2008
Oct 2014

D48

Takamatsu Tokyu REI Hotel

Takamatsu, Kagawa

Jun 15, 2016

Apr 1982

Apr-Jun 2014, Jan-Apr 2015,

Acquisition Investment
P riceRatio(JP Y mn)(%)

(Note 2)

(Note 3)

Rentable
Unit(Note 4)

Leasable

LeasedTotal

Occupancy

Area

Area

Number of

Rate

(m2 )

(m2 )

Tenants(%)(Note 5)(Note 5)21,0023.8

310

37,702.33

37,702.33

1

100.0

8,059
7,959
13,761

1.5
1.5
2.5

218
105
262

5,083.06
1,951.90
13,121.00

5,083.06
1,951.90
13,121.00

1
1
1

100.0
100.0
100.0

2,139

0.4

193

7,148.17

6,847.11

2

95.8

8,000
13,068
9,781
8,870

1.5
2.4
1.8
1.6

134
397
256
323

6,151.93
13,026.99
11,849.61
19,422.08

6,151.93
13,026.99
11,849.61
19,422.08

1
1
1
1

100.0
100.0
100.0
100.0

7,880

1.4

243

7,267.88

7,267.88

1

100.0

Mar 2008
Aug 2016
Apr-Jun 2016
Nov 2017-Apr 2018
Dec 2015-May 2016
Mar-Jun 2017
Oct 2016-May 2017
-

5,326
2,772
2,723
1,604
4,068
3,257
20,691
16,731
5,286
5,039
15,543
9,731
9,405

1.0
0.5
0.5
0.3
0.7
0.6
3.8
3.0
1.0
0.9
2.8
1.8
1.7

166
198
158
145
110
123
328
419
150
109
307
245
159

4,501.18
7,563.60
14,806.73
3,216.01
1,839.77
3,844.64
8,620.69
21,670.64
4,396.02
3,429.43
15,313.17
17,247.54
5,498.49

4,501.18
7,563.60
14,806.73
3,216.01
1,839.77
3,844.64
8,620.69
21,670.64
4,396.02
3,429.43
15,313.17
17,247.54
5,498.49

1
1
1
1
1
1
1
1
1
1
1
1
1

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

Oct 2016-May 2017

5,930

1.1

149

6,509.41

6,509.411

100.0

Nov 2015-Mar 2016

5,682

1.0

208

5,931.84

5,931.84

1

100.0

May-Aug 2007
May 2017-Jul 2018
Nov 2016-Apr 2017
Jan-Apr 2018
Dec 2017-Jan 2018
May-Jul 2018
Apr-Jul 2018
Jan-May 2016
Mar-Jun 2017
Jul-S ep 2016

5,524
5,197
4,296
3,445
3,197
3,098
3,059
2,118
1,584
1,425

1.0
0.9
0.8
0.6
0.6
0.6
0.6
0.4
0.3
0.3

304
172
98
197
266
163
105
86
80
70

10,403.01
6,077.99
6,047.43
7,659.55
25,131.84
8,274.37
2,853.26
5,473.41
1,775.21
1,308.61

10,403.01
6,077.99
6,047.43
7,659.55
25,131.84
8,274.37
2,853.26
5,473.41
1,775.21
1,308.61

1
1
1
2
1
1
1
1
1
1

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

1,287

0.2

162

2,156.70

2,156.701

100.0

Jan-Jul 2017, Jan-Feb 2020
Jan-May 2020
Jan-Mar 2020
Jan 2016, Dec 2016,
Dec 2017-Jan 2018,
Dec 2018

D49
D50
D51
D52

Hotel MyS tays Premier Hamamatsucho
Hotel MyS tays S hin Osaka Conference Center
Hotel MyS tays Premier Omori
Kamenoi Hotel Beppu

Minato-ku, Tokyo
Osaka, Osaka
S hinagawa-ku, Tokyo
Beppu, Oita

May 29, 2017
Oct 13, 2017
Oct 13, 2017
Oct 13, 2017

Jun 1994
Jun 1974
Feb 1995
May 1997

D53

Hotel MyS tays S apporo S tation

S apporo, Hokkaido

Oct 13, 2017

Oct 2007

D54
D55
D56
D57
D58
D59
D60
D61
D62
D63
D64
D65
D66

Hotel MyS tays Yokohama Kannai
Art Hotel Joetsu
Art Hotel Hirosaki City
Hotel MyS tays Oita
Hotel MyS tays Gotanda
Hotel MyS tays Tachikawa
Hotel MyS tays Premier Akasaka
Hotel MyS tays Premier S apporo Park
Hotel MyS tays Ueno East
Hotel MyS tays Midosuji Honmachi
Hotel MyS tays S apporo Aspen
Art Hotel Ishigakijima
Hotel MyS tays Fuji Onsen Resort

Yokohama, Kanagawa
Joetsu, Niigata
Hirosaki, Aomori
Oita, Oita
S hinagawa-ku, Tokyo
Tachikawa-shi, Tokyo
Minato-ku, Tokyo
S apporo-shi, Hokkaido
Taito-ku, Tokyo
Osaka-shi, Osaka
S apporo, Hokkaido
Ishigaki, Okinawa
Fujiyoshida, Yamanashi

Feb 7, 2018
Feb 7, 2018
Feb 7, 2018
Feb 7, 2018
Jun 27,2018
Jun 27,2018
Aug 2,2018
Aug 2,2018
Aug 2,2018
Aug 2,2018
Jul 19, 2019
Jul 19, 2019
Jul 19, 2019

Aug 2016
Nov 1993
Aug 1989
Jul 2007
Jun 1988
May 1991
Jun 2016
Mar 1998
S ep 1991
Oct 2017
Dec 1995
Jan 1984
Nov 2016

D67

Hotel S onia Otaru

Otaru, Hokkaido

Jul 19, 2019

Apr 1992, Mar 1998,
Nov 2018
Jun 1982, Feb 1991,

D68

Hotel MyS tays Kanazawa Castle

Kanazawa, Ishikawa

Jul 19, 2019

D69
D70
D71
D72
D73
D74
D75
D76
D77
D78

Art Hotel Niigata S tation
Hotel MyS tays Nagoya Nishiki
Hotel Nord Otaru
Hotel MyS tays Kagoshima Tenmonkan
Art Hotel Asahikawa
Hotel MyS tays Matsuyama
Hotel MyS tays S apporo S usukino
Hotel MyS tays S apporo Nakajima Park
Hotel MyS tays S apporo Nakajima Park Annex
Flexstay Inn S akuragicho

Niigata, Niigata
Nagoya, Aichi
Otaru, Hokkaido
Kagoshima, Kagoshima
Asahikawa, Hokkaido
Matsuyama, Ehime
S apporo, Hokkaido
S apporo, Hokkaido
S apporo, Hokkaido
Yokohama, Kanagawa

Jul 19, 2019
Jul 19, 2019
Jul 19, 2019
Jul 19, 2019
Jul 19, 2019
Jul 19, 2019
Jul 19, 2019
Jul 19, 2019
Jul 19, 2019
Jul 19, 2019

Apr 1985
Mar 1974
Mar 1996
S ep 1990
Oct 1987
Jul 2000
May 1981
Feb 1991
S ep 1991
Nov 1991

D79

MyCUBE by MYS TAYS Asakusa Kuramae

Taito-ku, Tokyo

Jul 19, 2019

S ep 1991

Jan 1997

Aug-Nov 2016
Nov 2015-Mar 2016
Aug -Nov 2016
May-Jul 2015
Oct-Dec 2019,
Mar-May 2020

Nov 2015-May 2016
(Note 7)(Note 1) "Property number" refers to the asset owned by INV, classifying the residential asset as A, the office / commercial facility as B, the parking lot as C, the hotel as D according to the use of each property. The numbers with A, B, C, and D indicate the order of acquisition dates
and properties with the same acquisition date are arranged in the order of acquisition price(Note 2) "Acquisition price" indicates the purchase price stated in real estate sales contract or trust beneficiary rights transfer agreement etc. In addition, the price does not include consumption tax, etc., and it discards less than 1 million yen. Acquisition price of Sheraton GrandeTokyo Bay Hotel is calculated by applying 178,458 units of preferred equity interest contribution by INV (equivalent to 49.0% of preferred equity interest) to the JV TMK which owns the trust beneficiary interest of the Sheraton Grande Tokyo Bay Hotel as an underlying
asset. For "The Westin Grand Cayman Seven Mile Beach Resort & Spa" and "Sunshine Suites Resort", the book values as of May 9, 2019 when INV acquired the leasehold interest of the hotels directly is deemed the acquisition price of these properties, which are calculatedusing an exchange rate of USD1 = ¥110.45 fixed by the foreign exchange forward contract executed on July 26, 2018 denominated in Japanese Yen(Note 3) "Investment ratio" is the ratio to the total acquisition price of INV, rounded down to the second decimal place(Note 4) "Rentable units" includes shops, offices and etc. which are counted as one unit by each compartment(Note 5) For D200 The Westin Grand Cayman Seven Mile Beach Resort & Spa and D201 Sunshine Suites Resort, the area subject to management contract are indicated(Note 6) Construction period for conversion (conversion of zoning) is indicated.

73

Portfolio Properties (4/4)
P roperty
Number

P roperty Name

Address

Acquisition
Date

Completion Date

Renovation P eriod(Hotel only)(Note 1)

D80
D81
D82
D83

Hotel MyS tays Kagoshima Tenmonkan Annex
Hotel MyS tays Nayoro
Hotel MyS tays Premier Narita
Art Hotel Morioka

Kagoshima, Kagoshima
Nayoro, Hokkaido
Narita, Chiba
Morioka, Iwate

Jul 19, 2019
Jul 19, 2019
Jan 6, 2020
Jan 6, 2020

Feb 1985
Nov 2014
May 1985
Mar 1981

Feb-Apr 2018
Aug 2017-Jan 2018
Dec 2018-Apr 2019

Acquisition Investment
P riceRatio(JP Y mn)(%)

(Note 2)

(Note 3)

Rentable
Unit(Note 4)

Leasable

LeasedTotal

Occupancy

Area

Area

Number of

Rate

(m2 )

(m2 )

Tenants(%)(Note 5)(Note 5)

1,168
957
10,593
5,643

0.2
0.2
1.9
1.0

74
70
713
217

2,047.70
1,985.27
36,519.70
16,727.08

2,047.70
1,985.27
36,519.70
16,727.08

1
1
1
1

100.0
100.0
100.0
100.0

40,293

7.3

398

23,573.57

23,573.57

1

100.0

Jan-Apr 2020, Jan-May 2022

8,365

1.5

160

20,577.41

20,577.41

1

100.0

Aug-Oct 2021
May-Dec 2019
Nov 2021-Feb 2022
Oct-Nov 2018
May 2016-Oct 2017
Oct 2016

2,613
2,445
2,039
1,475
30,061
5,842

0.5
0.4
0.4
0.3
5.5
1.1

145
133
112
80
346
131

3,023.27
3,963.86
3,398.18
7,289.75
21,528.23
6,723.11

3,023.27
3,963.86
3,398.18
7,289.75
21,528.23
6,723.11

1
1
1
1
1
1

100.0
100.0
100.0
100.0
100.0
100.0

Apr 2005, Mar 2006, May
D84

Fusaki Beach Resort Hotel & Villas

Ishigaki-shi, Okinawa

Aug 1, 2023

Jun 1982, Jun 2019, 2015, Apr 2018, Dec 2018,
Mar 2020

Jun 2019, Mar 2020, Jul
2020, Feb 2023

Aug 1966, Jul 1967, Jul

D85

Tateshina Grand Hotel Takinoyu

Chino-shi, Nagano

Aug 1, 2023

D86
D87
D88
D89
D200
D201

Hotel MyS tays Okayama
Hotel MyS tays Aomori S tation
Hotel MyS tays S oga
Tazawako Lake Resort & Onsen
Westin Grand Cayman S even Mile Beach Resort & S pa
S unshine S uites Resort

Okayama-shi, Okayama
Aomori-shi, Aomori
Chiba-shi, Chiba
S enboku-shi, Akita
Grand Cayman
Grand Cayman

Aug 1, 2023
Aug 1, 2023
Aug 1, 2023
Aug 1, 2023
May 9, 2019
May 9, 2019

Mar 1986
Jun 2007
Feb 1994
Dec 1981, Nov 1988
1994
1999

S heraton Grande Tokyo Bay Hotel (preferred equity interest)

Urayasu-shi, Chiba

Oct 13, 2017

Mar 1988-

S ubtotal of Hotels
Total

1988

S ep 2014-Jul 2015,
S ep-Nov 2021

17,845

3.3

-

-

-

-

507,861
548,646

92.6
100.0

15,776
18,255

633,805.87
738,765.20

633,504.81
735,748.40

95
137

100.0
99.6

(Note 1) "Property number" refers to the asset owned by INV, classifying the residential asset as A, the office / commercial facility as B, the parking lot as C, the hotel as D according to the use of each property. The numbers with A, B, C, and D indicate the order of acquisition dates
and properties with the same acquisition date are arranged in the order of acquisition price(Note 2) "Acquisition price" indicates the purchase price stated in real estate sales contract or trust beneficiary rights transfer agreement etc. In addition, the price does not include consumption tax, etc., and it discards less than 1 million yen. Acquisition price of Sheraton GrandeTokyo Bay Hotel is calculated by applying 178,458 units of preferred equity interest contribution by INV (equivalent to 49.0% of preferred equity interest) to the JV TMK which owns the trust beneficiary interest of the Sheraton Grande Tokyo Bay Hotel as an underlying
asset. For "The Westin Grand Cayman Seven Mile Beach Resort & Spa" and "Sunshine Suites Resort", the book values as of May 9, 2019 when INV acquired the leasehold interest of the hotels directly is deemed the acquisition price of these properties, which are calculatedusing an exchange rate of USD1 = ¥110.45 fixed by the foreign exchange forward contract executed on July 26, 2018 denominated in Japanese Yen(Note 3) "Investment ratio" is the ratio to the total acquisition price of INV, rounded down to the second decimal place(Note 4) "Rentable units" includes shops, offices and etc. which are counted as one unit by each compartment(Note 5) For D200 The Westin Grand Cayman Seven Mile Beach Resort & Spa and D201 Sunshine Suites Resort, the area subject to management contract are indicated(Note 6) Construction period for conversion (conversion of zoning) is indicated.

74

Borrowings and Investment Corporation Bonds (1/7) *As of August 26, 2024
Borrowings
Name

LenderBorrowing Amount

Fixed / Floating

Interest Rate

Borrowing Date

Maturity Date

3,560

Floating interest rate

JPY 1 month TIBOR+0.80000%

October 13, 2017

October 11, 2024

961

Floating interest rate

JPY 1 month TIBOR+0.80000%March 29, 2019

March 29, 2029

5,796

Floating interest rate

JPY 1 month TIBOR+0.55000%

July 16, 2019

January 16, 2025

5,795

Floating interest rate

JPY 1 month TIBOR+0.70000%

July 16, 2019

July 16, 2025

4,943

Floating interest rate

JPY 1 month TIBOR+0.55000%

July 19, 2019

January 16, 2025

4,942

Floating interest rate

JPY 1 month TIBOR+0.70000%

July 19, 2019

July 16, 2025

Tokyo Star Bank, Limited

700

Floating interest rate

JPY 1 month TIBOR+0.70000%

July 22, 2019

July 16, 2025

The San ju San Bank, Ltd.

1,000

Floating interest rate

JPY 1 month TIBOR+0.55000%

October 15, 2019

April 15, 2025

The Nishi-Nippon City Bank, Ltd.

1,000

Floating interest rate

JPY 1 month TIBOR+0.70000%

October 15, 2019

October 15, 2025

4,491

Fixed interest rate
(swap)

0.64291% 1

January 6, 2020

January 6, 2025

3,211

Fixed interest rate
(swap)

0.48700% 1

March 16, 2020

March 16, 2025

(JPY million)
New Syndicate Loan (H)Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited

New Syndicate Loan (K)Kiraboshi Bank, Ltd.

New Syndicate Loan (M)Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
SBI Shinsei Bank, Limited

New Syndicate Loan (L)Term Loan (L)Mizuho Bank, Ltd.,
Sumitomo Mitsui Banking Corporation,
MUFG Bank, Ltd.,
Sumitomo Mitsui Trust Bank, Limited,
Development Bank of Japan Inc.,
AEON Bank, Ltd.,
Aozora Bank, Ltd.,The Nomura Trust and Banking Co., Ltd.

New Syndicate Loan (O)New Syndicate Loan (P)New Syndicate Loan (Q)Sumitomo Mitsui Trust Bank, Limited
Momiji Bank,Ltd.
The Kiyo Bank
Mizuho Bank, Ltd.
Development Bank of Japan Inc.
Resona Bank, Limited
The Nomura Trust and Banking Co., Ltd.
The Shizuoka Bank, Ltd.
The Bank of Fukuoka, Ltd.
The Yamaguchi Bank, Ltd.

(Note 1) These are borrowings with floating interest rates, but the interest rates are fixed through interest rate swap agreements. The interest rates in consideration of swaps are stated(Note 2) Borrowing amount is rounded down to indicated unit75

Borrowings and Investment Corporation Bonds (2/7) *As of August 26, 2024
Name

LenderBorrowing Amount

Fixed / Floating

Interest Rate

Borrowing Date

Maturity Date

6,921

Floating interest rate

JPY 1 month TIBOR+0.50000%March 30, 2020

March 16, 2025

(JPY million)

New Syndicate Loan (Q)Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
SBI Shinsei Bank, Limited
Resona Bank, LimitedAozora Bank, Ltd.
The Nomura Trust and Banking Co., Ltd.
The Shizuoka Bank, Ltd.
The Yamaguchi Bank, Ltd.
The Chukyo Bank, Ltd.
The Kagawa Bank, Ltd.

Term Loan (005)

The Tokyo Star Bank, Limited

600

Floating interest rate

JPY 1 month TIBOR+0.35000%

July 20, 2022

July 20, 2025

Term Loan (008)

The Tokyo Star Bank, Limited

1,190

Floating interest rate

JPY 1 month TIBOR+0.50000%

October 13, 2022

October 13, 2027

7,521

Fixed interest rate
(swap)

0.71200% 1

March 14, 2023

March 14, 2026

1,746

Floating interest rate

March 16, 2023

March 14, 2026

1,000

Floating interest rate

June 19, 2023

June 19, 2026

500

Floating interest rate

JPY 3M TIBOR+0.30000%

June 27, 2023

June 27, 2026

951

Floating interest rate

JPY 1M TIBOR+0.30000%

July 14, 2023

July 16, 2026

0.69100% 1

July 14, 2023

July 16, 2026

1.39500% 1

July 14, 2023

July 14, 2028

JPY 1M TIBOR+0.30000%

July 19, 2023

July 16, 2026

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
New Syndicate Loan (007)Development Bank of Japan, Inc.
MUFG Bank, Ltd.
The Chiba Bank, Ltd.
Term Loan (013)

Development Bank of Japan, Inc.

Term Loan (014)

MUFG Bank, Ltd.

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

3,774

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

5,168

New Syndicate Loan (009)

3,774

Fixed interest rate
(swap)
Fixed interest rate
(swap)

Floating interest rate

JPY 3M TIBOR+0.35000%
JPY 3M TIBOR+0.30000%(Note 1) These are borrowings with floating interest rates, but the interest rates are fixed through interest rate swap agreements. The interest rates in consideration of swaps are stated(Note 2) Borrowing amount is rounded down to indicated unit76Borrowings and Investment Corporation Bonds (3/7) *As of August 26, 2024
Name

LenderBorrowing Amount

Fixed / Floating

Interest Rate

Borrowing Date

Maturity Date

18,858Fixed interest rate
(swap)

0.69600% 1

July 19, 2023

July 16, 2026

18,858Fixed interest rate
(swap)

1.39500% 1

July 19, 2023

July 14, 2028

9,195

Fixed interest rate
(swap)

0.69100% 1

August 1, 2023

July 16, 2026

17,574

Fixed interest rate
(swap)

1.06900% 1

August 1, 2023

July 14, 2028

0.87900% 1

September 14, 2023

July 16, 2027

0.69100% 1

September 26, 2023

July 16, 2026

(JPY million)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
New Syndicate Loan (009)
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan, Inc.
The Ogaki Kyoritsu Bank, Ltd.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
The Tokyo Star Bank, LimitedAozora Bank, Ltd.
Mizuho Bank, Ltd.
New Syndicate Loan (010)
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan Inc.
The Tokyo Star Bank, LimitedAozora Bank, Ltd.
The Ogaki Kyoritsu Bank, Ltd.
Term Loan (016)

Sumitomo Mitsui Banking Corporation

3,000

SBI Shinsei Bank, Limited

3,197

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan, Inc.
The Nomura Trust and Banking Co., Ltd.
New Syndicate Loan (011) Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan, Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited

Fixed interest rate
(swap)
Fixed interest rate
(swap)

24,333Fixed interest rate
(swap)

0.89400% 1

September 26, 2023

July 16, 2027

10,104

Floating interest rate

JPY 3M TIBOR+0.50000%

September 26, 2023

July 16, 2028

2,495

Fixed interest rate
(swap)

0.87900% 1

October 13, 2023

July 16, 2027

1,069

Floating interest rate

JPY 3M TIBOR+0.50000%

October 13, 2023

July 16, 2028

(Note 1) These are borrowings with floating interest rates, but the interest rates are fixed through interest rate swap agreements. The interest rates in consideration of swaps are stated(Note 2) Borrowing amount is rounded down to indicated unit77Borrowings and Investment Corporation Bonds (4/7) *As of August 26, 2024
Name

LenderBorrowing Amount

Fixed / Floating

Interest Rate

Borrowing Date

Maturity Date

(JPY million)
Term Loan (017)

The Tokyo Star Bank, Limited.

1,900

Fixed interest rate
(swap)

1.05400% 1

September 26, 2023

July 14, 2028

Term Loan (018)Mizuho Bank, Ltd.

4,321

Floating interest rate

JPY 3M TIBOR+0.60000%

November 29, 2023

November 29, 2029

8,970

Floating interest rate

JPY 3M TIBOR+0.60000%

January 16, 2024

March 14, 2030

1,200

Floating interest rate

January 16, 2024

March 16, 2025

369

Floating interest rate

January 16, 2024

March 14, 2027

5,308

Fixed interest rate
(swap)

1.26500% 1

January 16, 2024

March 14, 2028

5,406

Floating interest rate

JPY 3M TIBOR+0.50000%

January 16, 2024

March 14, 2029

5,025

Fixed interest rate
(swap)

1.26500% 1

January 24, 2024

March 14, 2028

January 24, 2024

March 14, 2029

January 16, 2024

March 14, 2029

March 14, 2024

March 14, 2030

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
New Syndicate Loan (012)
Sumitomo Mitsui Trust Bank, Limited(green loan)
Development Bank of Japan, Inc.
San ju San Bank, Ltd.
The Nomura Trust and Banking Co., Ltd.
Resona Bank, Limited
SBI Shinsei Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, LimitedAozora Bank, Ltd.
The Nomura Trust and Banking Co., Ltd.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan, Inc.
New Syndicate Loan (012)
The Nomura Trust and Banking Co., Ltd.

JPY 1M TIBOR+0.20000%
JPY 3M TIBOR+0.30000%

New Syndicate Loan (012)

MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited

Term Loan (019)

The Tokyo Star Bank, Limited

Mizuho Bank, Ltd.
New Syndicate Loan (013) MUFG Bank, Ltd.
(green loan)
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan, Inc.

5,025

Floating interest rate

2,440

Floating interest rate

1,029

Floating interest rate

JPY 3M TIBOR+0.50000%
JPY 3M TIBOR+0.50000%
JPY 3M TIBOR+0.60000%(Note 1) These are borrowings with floating interest rates, but the interest rates are fixed through interest rate swap agreements. The interest rates in consideration of swaps are stated(Note 2) Borrowing amount is rounded down to indicated unit78Borrowings and Investment Corporation Bonds (5/7) *As of August 26, 2024
Name

LenderBorrowing Amount

Fixed / Floating

Interest Rate

Borrowing Date

Maturity Date

1,238

Floating interest rate

JPY 3M TIBOR+0.20000%March 14, 2024

March 14, 2026

1,746

Floating interest rate

JPY 3M TIBOR+0.30000%March 14, 2024

March 14, 2027

1,000

Floating interest rate

March 29, 2024

March 14, 2027

350

Floating interest rate

March 14, 2024

March 14, 2028

350

Floating interest rate

March 14, 2024

March 14, 2029

Aozora Bank, Ltd.
The Tochigi Bank, Ltd.

1,401

Floating interest rate

March 29, 2024

March 14, 2029

Term Loan (020)

San ju San Bank, Ltd.

1,700

Floating interest rate

April 15, 2024

March 14, 2030

Term Loan (021)

SBI Shinsei Bank, Limited

1,000

Floating interest rate

June 27, 2024

July 16, 2029

3,300

Floating interest rate

July 16, 2024

July 14, 2028

4,692

Floating interest rate

JPY 3M TIBOR+0.50000%

July 16, 2024

July 16, 2029

2,791

Floating interest rate

JPY 3M TIBOR+0.60000%

July 16, 2024

July 16, 2030

5,079

Floating interest rate

JPY 3M TIBOR+0.70000%

July 16, 2024

July 16, 2031

(JPY million)
The Shizuoka Bank, Ltd.
The Bank of Fukuoka, Ltd.
SBI Shinsei Bank, Limited
The Shizuoka Bank, Ltd.
The Bank of Fukuoka, Ltd.
Aozora Bank, Ltd.
New Syndicate Loan (013) The Nishi-Nippon City Bank, Ltd.

The Nomura Trust and Banking Co., Ltd.

SBI Shinsei Bank, Limited
The Bank of Fukuoka, Ltd.
Mizuho Bank, Ltd.
SBI Shinsei Bank, Limited
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
The Nomura Trust and Banking Co., Ltd.
Mizuho Bank, Ltd.
New Syndicate Loan (014) SBI Shinsei Bank, Limited
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Aozora Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan, Inc.

JPY 3M TIBOR+0.40000%
JPY 3M TIBOR+0.40000%
JPY 3M TIBOR+0.50000%
JPY 3M TIBOR+0.50000%
JPY 3M TIBOR+0.60000%
JPY 3M TIBOR+0.50000%
JPY 3M TIBOR+0.40000%(Note 1) These are borrowings with floating interest rates, but the interest rates are fixed through interest rate swap agreements. The interest rates in consideration of swaps are stated(Note 2) Borrowing amount is rounded down to indicated unit

79

Borrowings and Investment Corporation Bonds (6/7) *As of August 26, 2024
Name

LenderBorrowing Amount

Fixed / Floating

Interest Rate

Borrowing Date

Maturity Date

(JPY million)
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited

3,425

Floating interest rate

JPY 1M TIBOR+0.20000%

July 31, 2024

July 31, 2025

Mizuho Bank, Ltd.

1,500

Floating interest rate

JPY 1M TIBOR+0.20000%

July 31, 2024

July 31, 2025

SBI Shinsei Bank, Limited
THE BANK OF FUKUOKA, LTD.
The Chiba Bank, Ltd.
The Chukyo Bank, Ltd.
The Kiyo Bank, Ltd.
The San-In Godo Bank, Ltd.
Suruga Bank Ltd.

6,500

Floating interest rate

JPY 3M TIBOR+0.50000%

July 31, 2024

July 16, 2029

MUFG Bank, Ltd.

1,500

Fixed interest rate

1.59750%

July 31, 2024

July 16, 2030

20,733

Floating interest rate

JPY 3M TIBOR+0.60000%

July 31, 2024

July 16, 2030

23,067

Floating interest rate

JPY 3M TIBOR+0.70000%

July 31, 2024

July 16, 2031

New Syndicate Loan (015) Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan Inc.
San ju San Bank, Ltd.
The Chiba Bank, Ltd.
The Kiyo Bank, Ltd.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan Inc.
The Yamaguchi Bank Ltd.
The Tochigi Bank Ltd.
The Kagawa Bank Ltd.
Subtotal of Short Term Debt
Subtotal of Long Term Debt
Total Debt

4,925
295,672
300,597(Note 1) These are borrowings with floating interest rates, but the interest rates are fixed through interest rate swap agreements. The interest rates in consideration of swaps are stated(Note 2) Borrowing amount is rounded down to indicated unit

80Borrowings and Investment Corporation Bonds (7/7) *As of August 26, 2024
Investment Corporation Bonds
Name

Issue Date

Issue AmountInterest

Term

Redemption Date

Rating

10 ye ars

May 25, 2028

5 ye ars

Octobe r 28, 2024

10 ye ars

Octobe r 26, 2029

10 ye ars

March 13, 2030

3 ye ars

May 25, 2026

5 ye ars

May 25, 2028

5 ye ars

Se pte mbe r 21, 2028

（JCR)

5 ye ars

De ce mbe r 14, 2028

（JCR)

5 ye ars

Fe bruary 9, 2029

(JPY million)
2nd se rie s unse cure d corporate bonds(with pari passu conditions among spe cifie d corporate bonds)
4th se rie s unse cure d corporate bonds(with pari passu conditions among spe cifie d corporate bonds)
5th se rie s unse cure d corporate bonds(with pari passu conditions among spe cifie d corporate bonds)
6th se rie s unse cure d corporate bonds(with pari passu conditions among spe cifie d corporate bonds)
7th se rie s unse cure d corporate bonds(with pari passu conditions among spe cifie d corporate bonds)
8th se rie s unse cure d corporate bonds(with pari passu conditions among spe cifie d corporate bonds)

May 25, 2018

1,000

Octobe r 28, 2019

1,000

Octobe r 28, 2019

2,000

March 13, 2020

1,200

May 25, 2023

5,000

May 25, 2023

1,200

Se pte mbe r 21, 2023

1,700

De ce mbe r 14, 2023

1,800

Fe bruary 9, 2024

6,000

9th se rie s unse cure d corporate bonds(with pari passu conditions among spe cifie d corporate bonds)(gre e n bonds)

11th se rie s unse cure d corporate bonds

Total

0.480％
p.a.
0.900％
p.a.
0.850％
p.a.
1.000％
p.a.
1.200％
p.a.

p.a.
1.297％(gre e n bonds)(with pari passu conditions among inve stme nt corporate bonds)

p.a.

1.200％

10th se rie s unse cure d corporate bonds(with pari passu conditions among spe cifie d corporate bonds)

0.800％

p.a.
1.470％
p.a.

A+
（JCR)
A+
（JCR)
A+
（JCR)
A+
（JCR)
A+
（JCR)
A+
（JCR)
A+

A+

A+
（JCR)

20,90081

Overview of Unitholders
As of December 31, 2023

As of June 30, 2024

Major Unitholders (TOP 10)

Number ofunits held(%)

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

1,354,762

20.10

2 Custody BANK of Japan, Ltd. (trust account)
The Nomura Trust and Banking Co., Ltd.
3
(investment trust account)
4 SSBTC CLIENT OMNIBUS ACCOUNTDEUTSCHE BANK AG, SINGAPORE A/C CLIENTS
5(TREATY) 4600601
6 GOLDMAN SACHS INTERNATIONAL

1,166,019

17.30

362,795

5.38

181,677
145,871

Name

Number ofunits held(%)

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

1,270,238

18.85

1,218,303

18.08

352,046

5.22

2.69

2 Custody BANK of Japan, Ltd. (trust account)
The Nomura Trust and Banking Co., Ltd.
3
(investment trust account)
4 JPMorgan Securities Japan Co., Ltd.

170,162

2.52

2.16

5 SSBTC CLIENT OMNIBUS ACCOUNT

169,823

2.52

THE NOMURA TRUST AND BANKING CO., LTD. AS THE
6
TRUSTEE OF REPURCHASE AGREEMENT MOTHER FUND
7 FJODF GP INV HOLDINGS LLC

133,756

1.98

124,638

1.85

7 JP MORGAN CHASE BANK 385632

116,867

1.73

8 FJODF GP INV HOLDINGS LLC

115,931

1.72

9 STATE STREET BANK WEST CLIENT - TREATY 505234

109,408

1.62

10 STATE STREET BANK AND TRUST COMPANY 505103

103,9541.543,781,922

56.13

Total

Name

115,931

1.72

8 GOLDMAN SACHS INTERNATIONAL

109,491

1.62

9 STATE STREET BANKWEST CLIENT - TREATY 505234

108,759

1.61

10 JP MORGAN CHASE BANK 380072

102,4641.52

3,750,973

55.67

Total

Issued investment units: 6,737,121*Percentages are rounded down to the second decimal place

Issued investment units: 6,737,121

Unitholders Composition＜Number of Unitholders＞
1.35%
(361)
0.29%
(78)

＜Number of Units held by Unitholders＞

1.84%
(490)

7.41%
(499,399)＜Number of Unitholders＞
1.40%
(445)
0.26%
(83)

＜Number of Units held by Unitholders＞

1.71%
(542)

8.46%
(570,614)

42.18%(2,841,981)
96.50 %
(25,682)

38.12%(2,568,207)
49.33%(3,323,966)

96.62 %
(30,588)

1.06%(71,775)

1.81%(122,195)(Total : 6,737,121 units)(Total 26,611)

Individuals*Percentages are rounded down to second decimal place

51.59%(3,476,105)

Financial Institutions (incl. Securities Companies)(Total 31,658)

Other Domestic Corporations(Total : 6,737,121 units)

Foreign Companies, etc.

82

Unit Price Information(JPY)

Volume (right)

INV unit price (left)(Unit)TSE REIT Index

450,000

100,000(as of July 31, 2024)
INV unit price : ¥68,100

90,000Market Cap

400,000: ¥519.7 billion

80,000350,000

70,000300,000
60,000250,000
50,000200,000
40,000150,000
30,000100,000

20,00050,00010,0000

0Jan-132013 Jan-14 2014 Jan-15 2015 Jan-16 2016 Jan-17 2017 Jan-18 2018 Jan-19 2019 Jan-20 2020 Jan-21 2021 Jan-22 2022 Jan-23 2023 Jan-24
2024

Source: TSE and Bloomberg(Note 1) It shows the change in the price from January 4, 2013 until July 31, 2024
(Note 2) TSE REIT Index has been indexed, assuming the closing price of TSE REIT Index as of January 4, 2013 was the same as the closing price of INV unit on the same day

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

INQUIRIES:
Consonant Investment Management Co., Ltd. (Asset Manager of INV)
Tel. +81-3-5411-2731

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