[For Information Purpose Only.
The Japanese language press release should be referred to as the original.]
July 18, 2024
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Naoki Fukuda, Executive Director(Securities code: 8963)
Asset manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, President & CEO
Contact: Jun Komo
General Manager of Planning Department(Tel. +81-3-5411-2731)

Notice concerning Acquisition and Lease of Domestic Trust Beneficiary Interests
Invincible Investment Corporation (“INV”) announced the decision to acquire trust beneficiary interests (the“Acquisition”) in 12 domestic hotel properties (the “12 Hotel Properties” or “Assets to be Acquired”) and enter
into relevant leasing contracts with respect to each of the 12 Hotel Properties as decided on July 18, 2024 byConsonant Investment Management Co., Ltd. (“CIM”), the asset manager of INV.
1.

Overview of Acquisition
Property Name

AnticipatedAcquisition Price(million yen)
(Note 1)

Appraisal
Value(million yen)
(Note 2)

Seller(Note 3)

D90

Art Hotel Osaka Bay
Tower & Solaniwa Onsen

31,18531,500Ganges Tokutei Mokuteki
KaishaD91

Hakodate Kokusai Hotel

16,83017,000

Hakodate Tokutei
Mokuteki Kaisha

D92

Art Hotel Nippori
Lungwood

16,335

16,500

Nippori Tokutei Mokuteki
KaishaD93

Hotel MyStays Kumamoto
Riverside

6,831

6,900

Rishiri Tokutei Mokuteki
KaishaD94

Art Hotel Aomori

5,672

5,730

Shiretoko Tokutei
Mokuteki Kaisha

D95

Kamenoi Hotel Izukogen

5,563

5,620

Yakushima Tokutei
Mokuteki Kaisha

D96

Art Hotel Oita

5,484

5,540

Shiretoko Tokutei
Mokuteki Kaisha

Property
NumberAnticipatedAcquisition Date
(Note 4)

July 31, 2024

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

1

Property
Number

Property Name

AnticipatedAcquisition Price(million yen)
(Note 1)

Appraisal
Value(million yen)
(Note 2)

Seller(Note 3)

D97

Art Hotel Kokura New
Tagawa

4,672

4,720

Kawaguchiko Tokutei
Mokuteki Kaisha

D98

Art Hotel Miyazaki Sky
Tower

3,821

3,860

Rishiri Tokutei Mokuteki
KaishaD99

Art Hotel Kagoshima

3,395

3,430

Shiretoko Tokutei
Mokuteki Kaisha

D100

Kamenoi Hotel Hikone

2,603

2,630

Yakushima Tokutei
Mokuteki Kaisha

D101

Kamenoi Hotel Nara

2,029

2,050

Yakushima Tokutei
Mokuteki Kaisha

Total

104,420

105,480

AnticipatedAcquisition Date
(Note 4)

July 31, 2024--

(Note 1) Anticipated Acquisition Prices show purchase prices of the Assets to be Acquired set forth in the purchase and saleagreements for the trust beneficiary interests of each property. They do not include consumption taxes.
(Note 2) Appraisal Value is based on appraisal value stated in the appraisal report by the Japan Real Estate Institute, JLL Morii
Valuation & Advisory K.K., The Tanizawa Sōgō Appraisal Co., Ltd. or Daiwa Real Estate Appraisal Co., Ltd. on thevaluation date of June 1, 2024. For details, please refer to “(1) Details of the 12 Hotel Properties” of “4. Details of the 12
Hotel Properties” as described below.
(Note 3) For an overview of the sellers, please refer to “5. Overview of Sellers” as described below.
(Note 4) (A) The purchase and sale agreements for all of 12 Hotel Properties provide that, in case where the offer price for theissuance of new investment units as set out in (Note 5) has not been determined on or prior to July 24, 2024, INV may
postpone the closing date to any business day from August 1, 2024 to August 14, 2024 designated by INV. In such case,
INV will exercise the postponement right pursuant to the purchase and sale agreements. (B) In addition, the purchaseand sale agreements for all of 12 Hotel Properties also provide that, in the event that the funds are not sufficient to makepayment of the Anticipated Acquisition Price on the closing date (or on the postponed closing date in case of (A) above),
INV may defer, on an interest-free basis, the payment of the shortfall as stipulated in the purchase and sale agreements
to a date separately agreed with the seller. If there is any shortage in the proceeds, INV will exercise the payment
deferral right.
(Note 5) For issuance of new investment units, please refer to the press release “Notice concerning Issuance of New Investment
Units and Secondary Offering of Investment Units” dated July 18, 2024. The same shall apply hereinafter.
(Note 6) Brokerage is not applicable in connection with the Acquisition.
(Note 7) Amounts are rounded down to the nearest unit. The same shall apply hereinafter.

2.

Reasons for Acquisition and Lease
INV decided to acquire the 12 Hotel Properties at an average 6.0% appraisal NOI yield (Note 1) and at
an average 4.8% simulated NOI yield (Note 2) which are expected to contribute to growth and stability ofrevenue of the portfolio. The Acquisition is from affiliates of the Sponsor, Fortress Investment Group LLC(“FIG”), and will be funded using funds raised through the issuance of new investment units and new
borrowings (Note 3).
The acquisition of the 12 Hotel Properties comes with INV’s ninth public equity offering over the last elevenyears, further promoting INV’s external growth strategy backed by the Sponsor’s strong support. Following
the Acquisition, INV’s AUM (Note 4) is expected to grow to JPY 653.0 billion, and the composition of hotel
This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

2

properties in the portfolio is expected to be JPY 612.2 billion (104 hotels, 19,026 guest rooms (Note 5)).
INV’s hotel portfolio is the largest hotel portfolio amongst all J-REITs (Note 6), including J-REITs
specializing in hotels and accommodations.
The 12 Hotel Properties are located in Osaka, Hokkaido, Tokyo, Kumamoto, Aomori, Shizuoka, Oita,
Fukuoka, Miyazaki, Kagoshima, Shiga, and Nara, and INV believes that they are all high-quality hotels(Note 7) with excellent facilities that are close to traffic hubs or major tourism areas.
The Japanese government announced, on April 17, 2024, that the number of inbound visitors in 2024
would exceed the 2019 number (31.8 million visitors) (Note 8), which was a record high, with the prospectof achieving the target for 2025 a year ahead (Note 9). INV believes that the Japanese hotel market has
been improving, with the number of total Japanese overnight stays also remaining at almost the samelevel since 2023 compared to the same month in 2019 (Note 10).
INV also finds a lot of strong drivers for the travel industry’s growth in Japan, as exemplified by theincrease in entertainment facilities such as the opening of Warner Bros. Studio Tour Tokyo, expansion at
Tokyo Disney Resort, ongoing construction of Osaka Integrated Resort and expansion at Universal
Studios Japan (“USJ”), as well as invitation of MICE events (Note 11) including EXPO 2025 Osaka Kansai(Note 12).
On the other hand, the number of rooms in new hotel developments (Note 13) has been decreasing since2019. Although rebounded in December 2023, it declined again in June 2024, and new hotel supply is
expected to be limited (Note 14).
As of today, the latest 2024 RevPAR (Note 15) for January to May 2024 for the 81 domestic variable-rent
hotels (Note 16) owned by INV is 11.2% higher than 2023 RevPAR for the same period (Note 17),
indicating that the performance of INV's existing portfolio is recovering.
INV plans to acquire 12 properties, mainly focusing on full service hotels and resort hotels (Note 18),
expanding its footprint with four new prefectures added. Out of the 12 properties, six hotels equipped with
hot spring facilities which attract both inbound and domestic tourists will help INV further diversify the
portfolio. Furthermore, 11 hotels are equipped with banquet rooms, which will offer further revenue
opportunities to add to accommodation room income.
Art Hotel Osaka Bay Tower and Solaniwa Onsen will be acquired at the largest anticipated acquisition
price among the Assets to be Acquired in association with this offering, which accounts for 29.9% of thetotal anticipated acquisition price. This hotel is characterized by good accessibility, as directly connectedto the nearest Bentencho Station (on the JR Osaka Loop Line and the Osaka Metro Chuo Line),approximately 35 minutes and approximately 60 minutes away by train from Osaka International Airportand Kansai International Airport, respectively. It is also certified as a USJ affiliate (associate) hotel, andhotel guests can ride a free-of-charge shuttle bus between the hotel and USJ, which is located three train
stations away from Bentencho Station (a transfer needed). Solaniwa Onsen, where hotel guests can enjoy
This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

3

at a discounted rate, featuring a diverse range of baths including natural hot springs and open-air baths,
air baths, seven types of bedrock saunas, a Japanese garden spanning more than 3,000m2, and arecreational area.
Additionally, in this acquisition, INV plans to acquire three hotels under the Kamenoi Hotel brand, thenationwide hotel brand managed by MYSTAYS HOTEL MANAGAMENT Co., Ltd. (“MHM”) (Kamenoi
Hotel Izukogen, Kamenoi Hotel Hikone and Kamenoi Hotel Nara). As a hot spring hotel with natural hot
springs throughout Japan, Kamenoi Hotel has developed facilities and services to provide a truly relaxing
experience for people of all ages.
For details, please refer to “(1) Details of the 12 Hotel Properties” of “4. Details of the 12 Hotel Properties”
described below.
As of today, INV has a well-balanced nationwide, diversified portfolio with AUM of JPY 548.6 billion (Note4), 134 properties (Note 19), and the Acquisition would further expand the portfolio and increases both
geographical and hotel type diversification. By adding the 12 Hotel Properties to the existing, INV expects
both an improvement in profitability and stability of the portfolio.
INV will consider making additional selective investments in properties that are considered highly
competitive in terms of locations and facilities, with the aim to improve the performance of the entire
portfolio in terms of revenue growth and stability.
(Note 1) Average appraisal NOI yield is calculated for reference by the following formula;(the sum of appraisal NOI of the 12 Hotel Properties) ÷ (the sum of Anticipated Acquisition Price for the 12 Hotel
Properties)
Appraisal NOI of the 12 Hotel Properties is the sum of net operating income calculated by DCF method indicated on
appraisal report as of June 1, 2024. The same shall apply hereinafter.
(Note 2) Average simulated NOI yield is calculated for reference by the following formula;(the sum of simulated NOI of the 12 Hotel Properties) ÷ (the sum of Anticipated Acquisition Price for the 12 Hotel
Properties)
Simulated NOI of the 12 Hotel Properties is calculated by combining the actual monthly performance from January to
May 2024 and anticipated monthly performance from June to December 2024 estimated by CIM. Pre-acquisition
performance is based on actual results provided by sellers and adjusted to reflect trust fees and insurance premiums
assuming the properties had been held by INV through 2024. Anticipated monthly performance is calculated based on
the assumptions set out in Appendix 1 “Operating Revenues” of “Notice concerning Revision of Forecast of Financial
Results and Distribution for the 42nd Fiscal Period Ended June 2024 and the 43rd Fiscal Period Ending December 2024
as well as Forecast of Financial Results and Distribution for the 44th Fiscal Period Ending June 2025”, which may
significantly deviate from actual results. The same shall apply hereinafter.
(Note 3) For the new borrowings, please refer to the press release “Notice concerning Debt Financing” dated July 18, 2024. The
same shall apply hereinafter.
(Note 4) Based on the (Anticipated) Acquisition Price. The Acquisition Price of the preferred equity interest issued by Kingdom
Tokutei Mokuteki Kaisha (owning Trust Beneficiary Right of “Sheraton Grande Tokyo Bay Hotel”), which is backed by
Sheraton Grande Tokyo Bay (the “Preferred Equity Interest”) is based on the investment amount for the Preferred Equity
Interest. In September 28, 2018 (Cayman Islands local time, which is September 29, 2018 JST), for the first time as a
J-REIT, INV acquired a TK interest pursuant to a TK agreement with Seven Mile Resort Holdings Ltd., a Cayman Islands
SPC that acquired leasehold interests (rights declared upon the laws in Cayman island, which is equal to long-termlease right on land and building) in the underlying land and buildings of the Westin Grand Cayman Resort and Sunshine
Suites Resort (collectively, the “Cayman Islands hotels”), two resort hotel properties located in the Cayman Islands, aswell as ownership of the furniture, fixtures and equipment of the two hotel properties. On May 9, 2019 (Cayman Islands
This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

4local time, which is May 10, 2019 JST), INV restructured its investment in the Cayman Islands hotels by terminating the
TK arrangement and directly acquiring through dividend in kind the leasehold interests and furniture, fixtures, equipment,
and other related assets needed to operate Cayman Islands hotels (collectively, the “Leasehold”). Acquisition Price of
the Cayman Islands hotels is the book value of the Cayman Islands hotels recorded by the Cayman Islands SPC as of
May 9, 2019 (Cayman Islands local time, which is May 10, 2019 JST) and has been translated into Japanese yen at therate of ¥110.45 = $1.00 for convenience purposes based on the foreign exchange forward implemented in connection
with the TK investment in the Cayman SPC (contract thereof was entered into on July 26, 2018 and implemented on
September 26, 2018). The amount is rounded down to the nearest unit. The same shall apply hereinafter.
(Note 5) The number of guest rooms is as of August 1, 2024, after the anticipated acquisition of the 12 Hotel Properties.
(Note 6) “Largest hotel portfolio amongst all J-REITs” is based on INV’s total (Anticipated) Acquisition Price of all 104 hotel
properties after the anticipated acquisition of the 12 Hotel Properties compared with other listed J-REITs’ total(Anticipated) Acquisition Price of hotel properties (including ryokan and other accommodation; the same shall apply
hereinafter in this (Note 6)) acquired as of June 30, 2024 and the hotel properties to be acquired announced as of June30, 2024.
(Note 7) “High-quality hotels” are indicated based on INV’s discretion that properties have competitiveness in terms of location,
appearance, interior, spec, annex facilities and equipment.
(Note 8) Source: Japan National Tourism Organization (JNTO)(Note 9) Source: The 23rd Ministerial Conference for the Promotion of Tourism Nation(Note 10) Source: MLIT “Overnight Travel Statistics Survey.”(Note 11) “MICE” stands for meetings, incentives, conventions and exhibitions, which is a general term of corporate meetings,
corporate incentive and training tours, international conventions and conferences held by international organizations
and academic societies, exhibitions and fairs, and other business events. The same shall apply hereinafter.
(Note 12) There can be no assurance that these expansions or events will be implemented or held at the time and on the scaleplanned as of today. As it is difficult to forecast the number of visitors, economic effects, etc., there can be no assurance
that those will be achieved as expected as of today.
(Note 13) The number of hotel rooms for which expansion plans have been confirmed for each period based on the plansconfirmed as of each survey for corresponding period by HOTERES. The same shall apply hereinafter.
(Note 14) Source: HOTERES(Note 15) “RevPAR (“revenue per available room”)” is calculated by dividing the total sales for a certain period by the aggregate
number of rooms for the same period (rooms x number of days), and is the same figure as that of a product of room
occupancy rate and ADR. “ADR (“average daily rate”)” is the value of the total room sales for a certain period (excluding
service fees) divided by the total number of sold rooms for the same period. The same shall apply hereinafter.
(Note 16) 81 properties refers to the 90 domestic hotel properties (This includes the Sheraton Grande Tokyo Bay Hotel, which isa property backed by preferred securities of a special purpose vehicle owned by INV.) currently owned by INV, excluding
nine fixed rent, etc. properties. The rent from each of Super Hotel Shinbashi/Karasumoriguchi, Comfort Hotel Toyama
Station, Super Hotel Tokyo-JR Tachikawa Kitaguchi, Super Hotel JR Ueno-iriyaguchi, Comfort Hotel Kurosaki, Comfort
Hotel Maebashi, Comfort Hotel Tsubame-Sanjyo and Comfort Hotel Kitami will be a fixed rent, with no variable rent
component. For "Takamatsu Tokyu REI Hotel", the contract with Tokyu Hotels Corporation, a major tenant, was changed
from "fixed rent type" to "fixed rent plus variable rent type" from April 25, 2023, but from the perspective of comparison
with the same period in 2023, it is included in the nine fixed rent, etc. properties.
(Note 17) RevPAR growth rate is calculated assuming INV owns 81 domestic variable rate hotels at the beginning of 2023. The
actual results for the period prior to the acquisition by INV are calculated based on the actual results provided by theseller, with adjustments based on the assumption that INV had retained the property. However, differences in accounting
treatment and adjustments based on such differences may result in differences in actual results.
(Note 18) 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 areclassified 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 include both full service hotels and limited service hotels. With respect to a hotel that falls within thedefinition 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 and beverage 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 thehotel as a resort hotel.
This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

5(Note 19) Preferred equity interest is counted as one property.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

6

The summary of the existing portfolio as of June 30, 2024, the 12 Hotel Properties and the Post-Acquisition
portfolio, inclusive of the Preferred Equity Interest and Cayman Islands hotels are as follows;
Existing Portfolio

12 HotelPost-Acquisition

Properties(Note 1)134 (92)

12 (12)146 (104)

548,646

104,420

653,066

as of June 30, 2024
(Note 1)
Number of Properties(Hotel Properties)
Total (Anticipated) Acquisition Price(million yen) (Note 2)(Note 1) The figures described in the column of “Existing Portfolio as of June 30, 2024” and “Post-Acquisition” are inclusive of
the Preferred Equity Interest and Cayman Islands hotels. Number of properties is based on the underlying assets (i.e.
one property for the preferred equity interest) and the Preferred Equity Interest is classified as a hotel based on the
category of the underlying asset.
(Note 2) The figures described in the row of “Total (Anticipated) Acquisition Price” are rounded to the nearest unit.

The summary of the existing portfolio as of June 30, 2024, the 12 Hotel Properties and the Post-Acquisition
portfolio (including Cayman Islands hotels), exclusive of Preferred Equity Interest are as follows;
Existing Portfolio
as of June 30, 2024
(Note 1)

12 HotelProperties

Post-Acquisition(Note 1)

Number of Properties(Hotel Properties)

133 (91)

12 (12)145 (103)

Total (Anticipated) Acquisition Price(million yen) (Note 2)

530,800

104,420635,220

Total Appraisal Value (million yen)
(Note 2) (Note 3)

639,580

105,480745,060

Appraisal NOI Yield (Note 4)

7.0%

6.0%

6.8%

After Depreciation NOI Yield (Note 4)

5.3%

4.8%

5.2%

(Note 1) The figures for each item do not include the Preferred Equity Interest.
(Note 2) The figures for “Total (Anticipated) Acquisition Price” and “Total Appraisal Value” are rounded down to the nearest units.
(Note 3) “Total Appraisal Value” is based on the appraisal value stated in the appraisal report on the valuation date of December
31, 2023 for properties owned as of June 30, 2024, and on the valuation date of June 1, 2024 for the 12 Hotel Properties.
The appraisal value of Cayman Islands hotels is translated into USD1 = JPY161.07 according to the foreign exchange
rate as of the end of the 42nd Fiscal Period Ended June 2024 (June 30, 2024).
(Note 4) “Appraisal NOI Yield” and “After Depreciation NOI Yield” are calculated by dividing the total NOI derived from the direct
capitalization method stated in the appraisal reports mentioned at (Note 3) above (and deducting depreciation for After
Depreciation NOI Yield) by the total of (Anticipated) Acquisition Price, and rounded to one decimal place. The appraisal
NOI of the Cayman Islands hotels includes the amount of FF&E reserve in accordance with the calculation of appraisal
NOI of the existing portfolio as of June 30, 2024 and the 12 Hotel Properties.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

7

Portfolio Composition by Asset Type (based on (Anticipated) Acquisition Price)(Note 1)

Commertial Facility
0.4%

Residential
7.0%

Resort24.7%

Commertial Facility
0.4%

Residential
5.9%

Resort22.3%

LimitedService
40.9%

LimitedService35.4%

Full Service
36.0%

Full Service
26.9%

Hotel 93.8%

Hotel 92.6%

As of the end ofJune 2024

Post-Acquisition(Note 1) The ratio figures are rounded to one decimal place; the same shall apply hereinafter.

Portfolio Composition by Geography (based on (Anticipated) Acquisition Price)(Note 1)

Overseas
6.5%

Others
8.5%

Tokyo 23 wards
28.6%

Overseas
5.5%

Chubu
10.8%

Others
8.0%

Tokyo 23 wards
26.5%

Chubu
9.9%

GreaterTokyo(excluding
Tokyo 23
wards) Kansai
7.1%
12.6%

GreaterTokyo(excluding
Tokyo 23
wards)
10.6%

Kyushu13.8%
Hokkaido
12.1%

Kansai11.4%

As of the end ofJune 2024

Kyushu15.3%
Hokkaido
12.7%

Post- Acquisition(Note 1) The definitions of areas used in the circle charts are as follows;
Greater Tokyo (excluding Tokyo 23 wards): Tokyo Metropolis (excluding Tokyo 23 wards), Kanagawa, Chiba andSaitama prefectures.
Kansai: Osaka, Hyogo, Kyoto, Shiga, Wakayama and Nara prefectures.
Chubu: Aichi, Gifu, Mie, Shizuoka, Nagano, Yamanashi, Niigata, Toyama, Ishikawa and Fukui prefectures.
Kyushu: Fukuoka, Kumamoto, Kagoshima, Nagasaki, Oita, Miyazaki, Saga and Okinawa prefectures.
This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

8Location of the 12 Hotel Properties

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

93.

Execution of Lease Agreement
In regard to the 12 Hotel Properties, INV will enter into lease agreements with each tenant based on the
combination of fixed rents and variable rents linked to Gross Operating Profit (GOP) (Note 1). Out of the
102 domestic hotel properties (Note 2) in INV’s portfolio after the anticipated acquisition of the 12 Hotel
Properties, 91 hotels employ a variable rent scheme described above (Note 3). MHM, an experienced
hotel operator, or its subsidiary company conduct comprehensive revenue management for all of those
hotels under the variable rent scheme and seek to maximize revenue by increasing accommodation
demand. These initiatives allow INV to directly benefit from an increase in revenue from hotels throughthe variable rent scheme. In addition, in the event of a downward trend in GOP, the income from theembedded fixed-rent works as a buffer.
INV believes that the tenants for the 12 Hotel Properties conform to the standard for selection of tenants
described in the Report on the Management Structure and System of the Issuer of Real Estate Investment
Trust Units and Related Parties (Japanese only) filed on March 28, 2024.
(Note 1) Gross Operating Profit is a rent which is the amount remaining after deducting operating expenses such as personnel
expenses, cost of utilities, and advertising expenses, as well as management fee for operators (if any) from the hotel’srevenues.
(Note 2) Including the Sheraton Grande Tokyo Bay Hotel which is the underlying asset of the Preferred Equity Interest.
(Note 3) There are three other hotels out of the hotels in Japan held by INV that are under variable rent contracts. The variable
rent scheme applicable to these three hotels is different from that described above.

<Overview of Tenant and Operator>
An overview of the tenants and operators for the 12 Hotel Properties is as follows:
The tenant and operator for 9 properties (Hotel MyStays Kumamoto Riverside, Art Hotel Aomori, Kamenoi
Hotel Izukogen, Art Hotel Oita, Art Hotel Kokura New Tagawa, Art Hotel Miyazaki Sky Tower, Art Hotel
Kagoshima, Kamenoi Hotel Hikone, and Kamenoi Hotel Nara), and the operator for three properties (Art Hotel
Osaka Bay Tower & Solaniwa Onsen, Hakodate Kokusai Hotel, and Art Hotel Nippori Lungwood)
(i)

Name

MYSTAYS HOTEL MANAGEMENT Co., Ltd.

(ii)

Location

Roppongi Hills North Tower 14th Floor, 6-2-31 Roppongi, Minato-ku,
Tokyo, Japan

(iii)

Title

and

name

of

President and CEO, Ryoichi Shirota

representative officer(iv)

Business

Hotel and Ryokan (Japanese inn) operation and management(v)

CapitalJPY 100 million (as of the end of May 2024)(vi)

Date of establishment

July 8, 1999

(vii)

Relationship between INV/CIM and the Tenant/Operator
Capital relationships

While there are no capital relationships that should be noted between
INV/CIM and MHM, the parent company of MHM is indirectly held by afund operated by affiliate of FIG. FIG indirectly holds 100% of CIM’s
outstanding shares.

Personal relationships

While there are no personal relationships that should be noted between
INV/CIM and MHM, as of today, among the directors of INV and theThis English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

10

officers and employees of CIM, Executive Director of INV and President& CEO of CIM, Naoki Fukuda, the Executive Director of CIM, Naoto Ichiki,a part-time director of CIM, Christopher Reed, and one other employee of
CIM are seconded from Fortress Investment Group Japan GK, a
subsidiary of FIG.
Transactional

As of today, INV has entered into lease agreements with MHM withrelationships

respect to 79 hotel properties (Note 1).

Whether the Operator

MHM is not a related party of INV/CIM. Further, related persons andis a related party

affiliates of MHM are not related parties of INV/CIM. Furthermore, MHM
is not an interested party, etc. of CIM as provided in the Act on Investment
Trusts and Investment Corporations (the “Investment Trust Act”).

(Note 1)

Agreements with MHM subsidiaries and management contracts between MHM and tenants are included.

The tenant for Art Hotel Osaka Bay Tower & Solaniwa Onsen
(i)

Name

Osaka Bay Tower LLC(ii)

Location

1-2-4-700, Benten, Minato-ku, Osaka-shi, Osaka

(iii)

Title

(iv)

and

name

of

Executive Officer at General Incorporated Association Ganges 2,

representative officer

Shunsuke Yamamoto

Business

1. Acquisition, holding, management, and disposal of monetary claims,
securities (including deemed securities), shares of various corporations,investment interests, specified investments under the Act on the
Liquidation of Assets, and preferred equity interest and other investment
assets
2. Acquisition, holding, management, lease and disposal of real estate(v)

Capital

JPY 0.1 million (As of the end of May 2024)(vi)

Date of establishment

October 23, 2015

(vii)

Relationship between INV/CIM and the Operator
Capital relationships

While there are no capital relationships that should be noted between
INV/CIM and the tenant, the parent company of tenant is indirectly heldby a fund managed by affiliate of FIG. FIG indirectly holds 100% of CIM’s
outstanding shares.

Personal relationships

While there are no personal relationships that should be noted between
INV/CIM and the tenant, as of today, among the directors of INV and theofficers and employees of CIM, Executive Director of INV and President& CEO of CIM, Naoki Fukuda, the Executive Director of CIM, Naoto Ichiki,a part-time director of CIM, Christopher Reed, and one other employee of
CIM are seconded from Fortress Investment Group Japan Godo Kaisha,a subsidiary of FIG.

Transactional

There are no transactional relationships that should be noted between

relationships

INV/CIM and the tenant.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

11Whether the Operator

The tenant is not a related party of INV/CIM. Further, related persons andis a related party

affiliates of the tenant are not related parties of INV/CIM. Furthermore, thetenant is not an interested party, etc. of CIM as provided in the Investment
Trust Act.

The tenant for Hakodate Kokusai Hotel
(i)

Name

Hakodate Kokusai Hotel Co., Ltd.

(ii)

Location

5-10, Otemachi, Hakodate-city, Hokkaido

(iii)

Title

and

name

of

CEO, Shunsuke Yamamoto

representative officer(iv)

Business

1. Management of hotel and ryokan
2. Management of restaurant
3. Management and lease of real estate(v)

CapitalJPY 3 million (As of the end of May 2024)(vi)

Date of establishment

March 3, 1971

(vii)

Relationship between INV/CIM and the Operator
Capital relationships

While there are no capital relationships that should be noted between
INV/CIM and the tenant, the parent company of tenant is indirectly heldby a fund managed by affiliate of FIG. FIG indirectly holds 100% of CIM’s
outstanding shares.

Personal relationships

While there are no personal relationships that should be noted between
INV/CIM and the tenant, as of today, among the directors of INV and theofficers and employees of CIM, Executive Director of INV and President& CEO of CIM, Naoki Fukuda, the Executive Director of CIM, Naoto Ichiki,a part-time director of CIM, Christopher Reed, and one other employee of
CIM are seconded from Fortress Investment Group Japan Godo Kaisha,a subsidiary of FIG.

Transactional

There are no transactional relationships that should be noted between

relationships

INV/CIM and the tenant.

Whether the Operator

The tenant is not a related party of INV/CIM. Further, related persons andis a related party

affiliates of the tenant are not related parties of INV/CIM. Furthermore, thetenant is not an interested party, etc. of CIM as provided in the Investment
Trust Act.

The tenant for Art Hotel Nippori Lungwood
(i)

Name

Nippori Hotel Management GK(ii)

Location

C/O EP consulting Service, 1-1-1, Nishi-shimbashi, Minato-ku, Tokyo

(iii)
(iv)

Title

and

name

of

Executive Officer, Shunsuke Yamamoto at General Incorporated

representative officer

Association Nippori

Business

1. Management of hotel and ryokan
2. Management of restaurant and bar
3. Management of banquet, general photography service, barber andThis English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

12beauty salon(v)

Capital

JPY 0.1 million (As of the end of May 2024)(vi)

Date of establishment

February 12, 2021

(vii)

Relationship between INV/CIM and the Tenant
Capital relationships

While there are no capital relationships that should be noted between
INV/CIM and the tenant, the parent company of tenant is indirectly heldby a fund operated by affiliate of FIG. FIG indirectly holds 100% of CIM’s
outstanding shares.

Personal relationships

While there are no personal relationships that should be noted between
INV/CIM and the tenant, as of today, among the directors of INV and theofficers and employees of CIM, Executive Director of INV and President& CEO of CIM, Naoki Fukuda, the Executive Director of CIM, Naoto Ichiki,a part-time director of CIM, Christopher Reed, and one other employee of
CIM are seconded from Fortress Investment Group Japan Godo Kaisha,a subsidiary of FIG.

Transactional

There are no transactional relationships that should be noted between

relationships

INV/CIM and the tenant.

Whether the Operator

The tenant is not a related party of INV/CIM. Further, related persons andis a related party

affiliates of the tenant are not related parties of INV/CIM. Furthermore, thetenant is not an interested party, etc. of CIM as provided in the Investment
Trust Act.

4.

Details of the 12 Hotel Properties(1) Details of the 12 Hotel Properties
Details, profit and loss status and outline of appraisal reports of the 12 Hotel Properties are as
follows:<Explanation of details of the 12 Hotel Properties>a.

“Type and Location of Specified Assets, etc.” column:
・ “Type of Specified Assets” indicates the type (the legal form) of real property and other assets
as specified assets (which is specified in “Regulation for Enforcement of the Act on Investment
Trusts and Investment Corporations” (Order of the Prime Minister’s Office of No.129 ofNovember 17, 2000, as amended)).
・ “Date of Planned Acquisition” indicates the date when an acquisition is executed, which is
specified in the purchase agreement or the trust beneficiary right sales agreement.
・ “Planned Purchase Price” indicates a purchase price of the 12 Hotel Properties which is
specified in the purchase agreement or the trust beneficiary right sales agreement;
Consumption tax is not included, and rounded down to the nearest million yen.
・ “Appraisal Value” indicates reported price by appraisal firm for anticipated acquisitions.
・ The details in “Location” (excluding address), “Lot Area” of the “Land” and, “Total Floor Area”,“Structure/No. of Stories”, “Purpose of Use”, and “Completion Date” of the “Building” are, unlessotherwise specified, as shown in the property register. The “Total Floor Area” is the gross floor

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

13area (if no annotation in the context, an annex building would not be included), and with respect
to “Purpose of Use,” the primary ones of the purposes shown in the property register is listed.
Further, the “Completion Date” lists the time at which the building was newly constructed, as
shown in the property register. As for the properties without the “Completion Date” in theproperty register, it is based on other materials.
・ “Transport” indicates the time to walk to the nearest station based on the description in the Real
Estate Appraisal Report (in case there is no description of time distance in the Real EstateAppraisal Report, “Transport” is calculated by assuming walking time on the road distance of
80 meters per minute in accordance with the Fair Competition Code on the Real Estate
Representations (Fair Trade Commission Notification No.2 of 2003, as amended) (hereinafter,
referred to as the “Fair Competition Code”) and the Ordinance for Enforcement of the Fair
Competition Code).
・ In “Zoning” regarding land, the class of zoning under the respective items of Article 8(1) of theCity Planning Act (Act No. 100 of 1968, as amended; the “City Planning Act”) is listed.
・ In “Building Coverage Ratio” regarding land, the ratio of a building’s area with regard to the landarea as set forth under Article 53 of the Building Standards Act (Act No. 201 of 1950, as
amended; the “Building Standards Act”) is listed.
・ In “Floor Area Ratio” regarding land, the ratio of a building’s floor area with regard to the landarea as set forth under Article 52 of the Building Standards Act is listed.
・ In “Trustee”, the planned trustee at the time of INV’s acquisition of the assets for anticipatedacquisitions is listed.
・ In “Trust Period”, the planned trust period at the time of INV’s acquisition of the assets for
anticipated acquisitions is listed.
b.

“Lease Overview” column:

・ Based on lease agreements with tenants effective as of May 31, 2024 or anticipated leaseagreements which will be entered into upon acquisition of the 12 Hotel Properties.
・ “Total No. of Tenant(s)” is calculated by counting a lessee who has directly concluded a leaseagreement or is expected to conclude a lease agreement at the time of INV’s acquisition of theassets for each property as one tenant, and a tenant who has rented two or more rooms in asingle property is calculated as one tenant.
・ In “Leasable Area”, the total leasable floor are for guest room, residential, office, retail andothers for the area of each real property or trusted real property to be owned by INV is listed. In
the case of the leasable area being not specified in the relevant lease agreement for a hotel
property, the gross floor area is shown in the list.
・ In “Lease Area”, the total sum of the leased area with respect to which a lease agreement with
end-tenant have actually been entered into and which are leased to the end-tenant or will beleased to the end-tenant after acquisitions (the area specified in the lease agreement) is listed.
However, in the case where a master lease agreement is concluded, the area leased by master
lessee is listed.
・ In “Occupancy Rate”, the ratio of the leased area to the leasable area is shown, rounded to thenearest first decimal place.
・ In “Number of Guest Rooms”, indicates the number of guest rooms their tenant(s) can sublease.
“(S/T/D/O)” indicates the breakdown of the number of guest rooms categorized as
This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

14

(Single/Twin/Double/Other).
・ In “Security Deposit/Guarantee”, the security deposit and guarantee after amortization as
specified in the lease agreements executed or to be executed after the acquisition is stated.
・ “GOP”, or the gross operating profit which is the amount remaining after deducting thepersonnel, utilities and advertising expenses as well as the management service fees for the
hotel operations from the hotel operation’s revenues of the tenant, and are recognized as therental revenues received as rent, is listed.
c.

“Overview of Lease Agreement” column:

・ Based on the lease agreements with tenants effective as of May 31,2024 or anticipated leaseagreements which will be entered into upon acquisition of the 12 Hotel Properties.
・ “Type of Contract” is the type of rent received from the relevant operator (either a fixed rent ora fixed rent plus variable rent) is indicated. “Fixed rent” is defined as an agreement under which
INV or the trustee shall receive a specified rent, regardless of the operational results of therelevant hotel. “Fixed rent plus variable rent” is defined as an agreement under which INV or
the trustee shall receive rent that varies based on the GOP (Gross Operating Profit), in addition
to a fixed rent.
・ The “Management Services Fee” is a commission fee payable to the tenant from landlord inaccordance with the provisions of the lease agreement as a compensation for operational
service provided by a tenant under the agreement. The Management Services Fee is notdisclosed, as tentative consent has not been obtained for disclosure. However, for MHM, anamount of the management services fee to be received is, in principle the sum of (i) an amountequal to 2% of monthly sales, (ii) an amount equal to 0-6% of monthly sales from direct bookings
made through the MHM’s marketing department or website, and (iii) an amount equal to 4-6%of the monthly GOP (pre-fees) after deducting the amounts of (i) and (ii) above.
・ In “Security Deposit/Guarantee Money,” the amount of the security deposit/guarantee money
after amortization pursuant to the lease agreement is listed, which is concluded, or to beconcluded, after the acquisition by INV.
d.

“Overview of Building Conditions Survey Report” column:
For the 12 Hotel Properties, INV has received a report from Tokio Marine dR Co., Ltd. onbuilding deterioration survey, short- and long-term repair plan decision, a condition survey incompliance with the Building Standards Act, a survey of dangerous substances contained in abuilding, and soil survey, amongst others, and has provided an overview of the report in thiscolumn.

・ “Short term Repair Costs” indicates the repair and/or replacement costs for items which, at thetime of the survey, are below minimum maintenance level due to deterioration or items which
are in violation of law or regulations, etc. and which can be judged as best to be repaired or
replaced within one year.
・ “Long term Repair Costs” consist of capital expenditures and repair costs. Capital expendituresmeans, of the anticipated improvement costs necessary to maintain the building at the set
building functionality level, the costs to extend the use period of the building’s equipment or to
replace it entirely. Repair costs means, of the anticipated improvement costs necessary tomaintain the building at the set building functionality level, costs other than capital expenditures.
・ “Replacement Price” means the total amount of the appropriate costs needed in the event thatthe appraised building is to be rebuilt at the time of the survey.
This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

15

e.

About the section of “Overview of PML Report”
For the 12 Hotel Properties, INV has received a seismic risk assessment from Tokio Marine dR
Co., Ltd. The summary of the report is described in this section.

・ “Probable Maximum Loss (PML)” is a term that means the value of the largest loss that could
result from an earthquake, used for a specific property and for an overall portfolio as well. As
there is not a universal definition for PML in the strict sense, this press release uses the term
under the definition of “a loss (damage) estimate expressed as a percentage of the total
replacement cost of real property,” assuming an earthquake of the largest magnitude in the 50year period of a property’s expected lifetime, or a mega-quake of recurrence interval (return
period) of 475 years, which translates into a probability of recurrence 10% in 50 years.
f.

Descriptions in the “Area Characteristics”:
Descriptions in the “Area Characteristics” field are an abstract or summary of descriptions in theReal Estate Appraisal Report on each real property or trusted real property, prepared byappraisal firms or market report, or created by referring to such descriptions.

g.

Descriptions in the “Special Notes”:
Descriptions in the “Special Notes” fields are matters that are deemed important in considerationof their impact on rights, appraisal value, profitability and disposability of each real property ortrusted real property.

h.

“Income and Expenditures, Etc.” column:

・Based on the information provided from the sellers for each operating period from January 1,
2022 to December 31, 2023. This is not a guarantee of future income and expenditures.

・Amounts are rounded down to the nearest unit. Therefore, the figures may not necessarily
match the total value when added together. Unless otherwise specifically noted, the amounts
do not include consumption tax, etc.

・“Land Lease Fees” is based on the land lease fees applicable under a relevant lease agreement.

・“Taxes and Public Dues,” include property tax and city planning tax, which are generally
imposed on the owner on January 1 of each year. For property tax and city planning tax thatwere borne by the current owner at the time of acquisition of the real estate related properties
INV will acquire, the estimated amount is included in the acquisition cost, and is therefore notincluded in “Taxes and Public Dues.”

・“Non-life Insurance Premiums” is the total amount of paid insurance premiums distributed
proportionally over the relevant period.

・“Trust Fees” is based on real estate management and trust agreements which INV will enter
into and recorded per relevant period.

・“NOI” (Net Operating Income), which refers to an amount calculated by deducting operating
expenses (excluding depreciation expenses) from operating revenue, lists in principle the actual
figures as provided by the seller. With respect to the trust fees, administration fees, depreciationand insurance premiums, the figure following the adjustments assuming the asset is held by
INV is listed.

・“Room Income” includes room use fees and lease fees.

・“Other Income” includes items such as parking lot use fees, laundry fees, vending machinetransaction fees, etc. which do not fall under “Room Income”.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

16

・“ADR,” or Average Daily Rate, is the value of the total room sales for a certain period (excluding
service fees) divided by the total number of sold rooms for the same period.

・“RevPAR”, or Revenues Per Available Room per day, is calculated by dividing the total sales fora certain period by the aggregate number of rooms for the same period (rooms x number ofdays), and is the same figure as that of a product of room occupancy rate and ADR

・“Room Occupancy Rate” is calculated using the following formula:
Room Occupancy Rate = the aggregate number of days per room for which each room was
occupied divided by the number of available rooms (aggregate number of rooms during therelevant period x number of business days during target period) during the relevant period

・“GOP Ratio” is calculated using the following formula:
GOP ratio = GOP ÷ sales figure
GOP is the amount remaining after deducting operating expenses such as personnel expenses,
cost of utilities, and advertising expenses, as well as management fee for operators (if any) fromthe hotel’s revenues.

・“Daily / Weekly / Monthly” is the ratio for each classification of length of stay (i.e.,
daily/weekly/monthly), and is calculated by dividing total room sales for the relevant
classification during each operational period by the aggregate room sales for the same
operational period and then multiplying the figure by 100. Daily, weekly and monthly areclassified by the number of days of stays, with daily being 1-6 nights, weekly being 7-29 nights,
and monthly being 30 or more nights.

・“Overseas Sales Share” is the sales amount via overseas web agents, who operate a business
managing application from abroad, to room sales. Therefore, the overseas sales share includes
revenues from domestic customers.

i.

“Summary of Real Estate Appraisal Report” column:
INV has requested real estate appraisals from Japan Real Estate Institute, The Tanizawa Sōgō
Appraisal Co., Ltd, Daiwa Real Estate Appraisal Co., Ltd., and JLL Morii Valuation & Advisory
K.K. for the 12 Hotel Properties based on the matters for consideration in a real estate appraisal
under the Investment Trust Act, the Act on Real Estate Appraisal (Act No. 152 of 1963, as
amended; the “Act on Real Estate Appraisal”) and the real estate appraisal standards.
An appraisal value of a property is merely an opinion of the real estate appraiser regarding thevalue of the appraised property at the time the appraisal was conducted in accordance with the
Act on Real Estate Appraisal and real estate appraisal standards, etc.
A real estate appraisal is neither a guarantee nor a promise that an asset can be sold orpurchased at such appraisal value either now or in the future. Further, it is rounded down to thenearest million yen.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

17D90: Art Hotel Osaka Bay Tower & Solaniwa Onsen
Type and Location of Specified Assets, etc.
Type of Specified Assets

Trust Beneficiary Right

Date of Planned Acquisition

July 31, 2024

Planned Purchase Price

JPY 31,185 million

Appraisal Value

JPY 31,500 million (Note 1)

Appraisal Firm

Japan Real Estate Institute(Lot Number)

Location(Address)
Transport

1-2-1 Benten, Minato-ku, Osaka-shi, Osaka
1-2-1 Benten, Minato-ku, Osaka-shi, Osaka (Hotel)
1-2-3 Benten, Minato-ku, Osaka-shi, Osaka (Solaniwa Onsen)

Connected by a direct walkway to Bentencho station on the JR Osaka Loop Line and the Osaka Metro Chuo Line
OwnershipForm of Possession

ZoningCommercial Area

44.6%)Land

Building

Coverage

Lot Area (Note 2)

25,031.92 m2

Form of Possession

Unit Ownership

Purpose of Use

Hotel / Public Bathhouse

44,759.49 m2

Construction Date

June 29, 1990 (Note 3)

Total Floor Area
(Note 2)
Building(Right of Site:

Structure/No. of
StoriesRenovation Date

Ratio/Floor Area Ratio

80% / 800%

Steel-framed reinforced concrete, Steel frame and steel-framed reinforced concrete flat
roof, 3 basements, 50 stories (Note 4)
September 2017-April 2018, September 2022-November 2022, May 2023-July 2023, May
2024-July 2024

Trustee

Shinsei Trust & Banking Co., Ltd.

Trust Period

From: March 31, 2016; Until: July 30, 2034

Creation of Security Interest

None

Lease Overview (as of May 31, 2024)
Total No. of Tenant (s)1Leasable Area

44,759.49m

2Lease Area

44,759.49m2

Number of Guest Rooms

Occupancy Rate

454 rooms(T:238, D:140, O:76)

Security Deposit/Guarantee

-

Money

100.0%GOP (per month)

JPY 135,085 thousand

Overview of Lease Agreement
TenantOsaka Bay Tower LLC

Type of Contract

Fixed rent plus variable rent type

Term

From: July 31, 2024; Until: July 30, 2034
Sum of variable rent corresponding to GOP from the operation of the hotel and Solaniwa Onsen, and the fixed rent

Determination of rent of lease
contract(JPY 573.6 million per year (Jan.: JPY 40.7 million per month / Feb.: JPY 48.5 million per month / Mar.: JPY 53.9
million per month / Apr.: JPY 50.1 million per month / May: JPY 52.3 million per month / Jun.: JPY 39.7 million permonth / Jul.: JPY 25.8 million per month / Aug.: JPY 61.4 million per month / Sep.: JPY 43.7 million per month /Oct.: JPY 57.7 million per month / Nov.: JPY 55.5 million per month / Dec.: JPY 44.3 million per month)) (Note 5)

Management Services Fee

Not disclosed, as tenant's consent has not been obtained for disclosure.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

18

Security Deposit/Guarantee
Money
Renewal Upon Expiration

The contract is a Fixed Term Building Lease, therefore the contract will terminate at the expiration of thelease term unless the contract is renewed.

Rent Revision

Rent cannot be revised during the lease term.

Early Termination

Termination prior to the expiration of the lease term is not permitted.

Other Special Matters-

Overview of Building Conditions Survey ReportCompany Conducting Survey

Tokio Marine dR Co., Ltd.

Short term Repair Costs (within-

1 year)Long term Repair Costs (in 12
years)

Date of Report
Replacement Price

June 2024
JPY 64,387,900 thousand(Note 6)

JPY 2,113,625 thousand

Overview of PML reportCompany Conducting Survey

Tokio Marine dR Co., Ltd.

Probable Maximum Loss (PML)

Date of Report

June 2024

8.4%

Area Characteristic
This property has a good access to major areas in Osaka. It is connected by a direct walkway to Bentencho station on the JR Osaka Loop Line and the
Osaka Metro Chuo Line. It takes approximately 10 minutes, 15 minutes, from Bentencho station to Umeda area (downtown Osaka) and Shin-Osaka station,
respectively. Further, it takes approximately 60 minutes to Kansai International Airport Station.
The hotel is a full service hotel with a stable expected income. It is one of the best hotels in Osaka in terms of its nightscape as the guest rooms are locatedon the upper floors, 23rd-25th, 30th-49th floor out of 50 floors (Note 4).
Solaniwa Onsen is a Onsen theme park built based on a concept of reproducing the cityscapes in Azuchi- Momoyama era, it has nine types of natural hot
spring drawn from 1,000 meters below ground, private open-air bath, and rock baths. Guests can enjoy various facilities as well as hot spring.
Special Notes

Some part of its land (59.48m2) is offered for municipal road of Osaka city.

(Note 1) A long-term repair of co-owned area in this property has been planned between the unit owner and the co-owner of this property and the current
owner, a part of which is not reflected to the appraisal value. The cost for the repair is decided to be partially covered by the current owner.
(Note 2) This property is under sectional ownership, and “Lot Area” of “Land” is represented by the land area of the entire building, and “Total Floor Area”
of “Building” by the floor area of exclusively owned portions that will be acquired by INV. The ratio of land with registered right in the land includedin this property is 45,266.11/101,449.62, the total floor area of the entire building is 175,604.98 m2, and the ratio of exclusively owned portions
that will be acquired by INV to overall exclusively owned portions of this building is approximately 44.6%.
(Note 3) Although the Construction Date of this property is written as June 29, 1990 in the certificate of registry, it is written as September 1993 in thebuilding inspection certificate.
(Note 4) The top floor of the hotel is the 51st floor since the 42nd floor does not exist as the 43rd floor is located one floor above the 41st floor due to theoperational matter of the hotel included in the property.
(Note 5) Variable rent is calculated by subtracting the fixed rent from the GOP during 6 months of the calculation period of variable rent. Yet in the case itis smaller than zero, the variable rent is zero.
(Note 6) Sum of co-owned area including the area owned by the co-owner and exclusively owned area is written as a replacement price.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

19D90: Art Hotel Osaka Bay Tower & Solaniwa Onsen
Income and Expenditures, Etc.
Operating Period

April 1, 2023-December 31, 2023 (Note 1)

GOP (= (1) - (2)) (Note 2)-

JPY 1,104,395 thousanda. Land Lease Fees--

b. Taxes and Public Dues (Note 2)-

JPY 162,341 thousandc. Non-life Insurance Premiums (Note 2)-

JPY 2,305 thousandd. Trust Fees (Note 2)-

JPY 753 thousand

NOI (= GOP - [a. + b. + c. + d.]) (Note 2)-

JPY 938,994 thousand-

JPY 1,964,749 thousand

Room Income (Note 2)-

JPY 1,294,356 thousand

Other Income (Note 2)-

JPY 670,392 thousand-

JPY 860,354 thousand

ADR (Note 3)-

JPY 15,720

RevPAR (Note 3)-

JPY 13,126

Room Occupancy Rate (Note 3)

-

83.5%

Daily/ Weekly/ Monthly (Note 3)-

100.0% / 0.0% / 0.0%

Overseas Sales Share (Note 3)

-

32.2%

(1) Sales (Note 2)(2) Operating Costs (Note 2) (notincluding a. through d. above)(Reference)(Note 1) Numbers here are the results for the period after April 1, 2023, when the property was classified as co-owned and owned by multiple owners(Note 2) Income and costs are for the proprietary and common areas(Note 3) Numbers here are the results from April 1, 2023 to December 31, 2023 for Art Hotel Osaka Bay Tower (Hotel area)＜Hotel KPI＞
Appraisal (Note 3)

ActualRoom Occupancy Rate (Note 1)

81.6%

Room Occupancy Rate

89.0%

ADR (Note 1)

JPY 16,421

ADR

JPY 20,000

RevPAR (Note 1)

JPY 13,400

RevPARJPY 17,800

NOI (Note 2)

JPY 1,361 million

NOI (Note 4)

JPY 1,662 million(Note 1) Average of recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 2) NOI includes data calculated based on Onsen facilities and the portion of ownership of parking lots (common area under the management by laws).
NOI is the net operating income (actual) for recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(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;
the same shall apply hereinafter) 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.
(Note 4) NOI includes data calculated based on Onsen facilities and the portion of ownership of parking lots (common area under the management by laws).

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

20D90: Art Hotel Osaka Bay Tower & Solaniwa Onsen
Summary of Real Estate Appraisal Report
Appraisal Value

JPY 31,500 million

Appraisal Firm

Japan Real Estate InstituteTime of Valuation

June 1, 2024
Item

1. Value of Profits using the Profit Capitalization Method(1) Direct Capitalization Method(I) Operating Revenue [(a)-(b)]Contents

Overview(JPY thousand)
31,500,000
31,600,000
3,039,267

Room Rental Income, Utility Costs for exclusively owned areas, andincome from parking lots are estimated based on the current lease(a) Total Potential Revenue

3,039,267

agreement, historical data of the hotel and hot spring business,comparable hotels and hot spring facilities, from the medium- tolong-term perspective.

(b) Vacant Room Losses, etc.
(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)]1,376,616
Maintenance expenses consisting of cleaning fees, facility
management fees, and security fees etc. are posted using the(c) Maintenance and Management Costs

152,110amounts paid in the past and maintenance expenses of similar
properties as a reference and taking into account the individualityof the property concerned.
Utilities costs for exclusively owned areas and co-owned areas areposted after estimating the amount using those paid in the past as(d) Utility Costs

934,000a reference, taking into account the utilities expenses of similar
properties and the individuality of the property concerned and otherfactors.
Repair Costs are posted based on the management operation(e) Repair Costs

52,841plans, the level of repair costs of comparable assets, and annual
average of repair costs in the engineering report of comparable
assets.
Property Management Fee are estimated using remuneration(f) Property Management Fee

5,100

rates, etc. based on the contract conditions, taking into account the
remuneration rates for similar properties, the individuality of theproperty concerned, and other factors.

(g) Tenant Solicitation Expenses(h) Taxes and Public Dues

217,565

Based on standard taxable value as stated in the documents
relating to tax rate adjustments.

(i) Non-life Insurance Premiums

5,000

Based on insurance premiums of comparable assets.

(j) Other Costs

10,000Costs for marketing and advertisement are posted.

(III) Net Operating Income [(I)-(II)](k) One-time Investment Gains

1,662,651
Based on capital expenditure levels of similar properties, the building(l) Capital Improvements and Expenses

126,993(m) FF&E Reserve

48,136age, the yearly average amount of repair and renewal expenses inengineering reports, etc.

(IV) Net Income [(III)+(k)-(l)-(m)]Based on the level of FF&E Reserve of comparable assets.

1,487,522
Based on the benchmark yields for each district, taking into account

Capitalization Yield

4.7%

the purpose of use of the property and the conditions on thebusiness characteristics, and based on the conditions on thelocation, taking into account the uncertainty in the future andThis English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

21transaction yields related to similar properties.
(2) DCF Method
Discount Rate

31,300,000
4.4%

Based on the transaction yields of similar properties, taking into
account the forecast and the individuality of the property.
Based on the transaction yields, taking into account the forecast for

Final Capitalization Yield

4.8%

investment yields, the risks of the property as a subject ofinvestment, general forecasts for economic growth, the trends ofproperty prices and rents.

2. Estimated Price using Cost Method

27,100,000

Land Ratio

81.5%

Building Ratio

18.0%

FF&E Ratio

0.5%
Judged that income approach value truly replicates the price formation process from an

Other Points to be Noted for Appraisal by Appraisal Firm

income perspective, is more persuasive and adopted the Income Price, with the cost
approach value as a reference.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

22D91: Hakodate Kokusai Hotel
Type and Location of Specified Assets, etc.
Type of Specified Assets

Trust Beneficiary Right

Date of Planned Acquisition

July 31, 2024

Planned Purchase Price

JPY 16,830 million

Appraisal Value

JPY 17,000 million

Appraisal Firm

Daiwa Real Estate Appraisal Co., Ltd.
(Lot Number)

5-58 Otemachi, Hakodate-shi, Hokkaido, and twelve other lots

(Address)

5-10 Otemachi, Hakodate-shi, Hokkaido

LocationTransport

Approximately 8 minutes on foot from Hakodate Station on the JR Hakodate Main Line, approximately 4 minutes onfoot from Hakodate City Train Shiyakusyo-mae Stop
Form of Possession

Ownership

ZoningLot Area

17,188.04m2

Form of Possession

OwnershipLand

Building

Quasi-Industrial Zone
Coverage Ratio/Floor

Area Ratio

2

60% / 200%

Purpose of Use

HotelConstruction Date

East Wing: March 7, 1972
West Wing: March 4, 1994
Main Tower: November 22,
2018

Total Floor Area

34,511.60m

Structure/No. of

Steel-framed reinforced concrete, reinforced concrete structure with galvanized plate roof, 1

Stories (Note 2)

basement, 13 stories

Renovation Date

March 2017-December 2018

Building

Trustee

Sumitomo Mitsui Trust Bank, Limited

Trust Period

From: April 14, 2017; Until: July 30, 2034

Creation of Security Interest

None

Lease Overview (as of May 31 2024)
Total No. of Tenant (s)1Number of Guest Rooms

Leasable Area

34,511.60m2

Lease Area

34,511.60m2

Occupancy Rate

435 rooms(T:301, D:78, O:56)

Security Deposit/Guarantee

-

Money

100.0%GOP (per month)

JPY 106,449 thousand

Overview of Lease Agreement
TenantHakodate Kokusai Hotel Co., Ltd.

Type of Contract

Fixed rent plus variable rent type

Term

From: July 31, 2024; Until: July 30, 2034
Sum of variable rent corresponding to GOP from the operation of the hotel by the tenant, and the fixed rent (JPY

Determination of rent of lease
contract

280.5 million per year (Jan.: JPY 4.1 million per month / Feb.: JPY 6.2 million per month / Mar.: JPY 8.5 million permonth / Apr.: JPY 19.9 million per month / May: JPY 29.5 million per month / Jun.: JPY 26.3 million per month / Jul.:
JPY 35.9 million per month / Aug.: JPY 46.7 million per month / Sep.: JPY 32.4 million per month / Oct.: JPY 28.9
million per month / Nov.: JPY 20.7 million per month / Dec.: JPY 21.4 million per month)) (Note 1)

Management Services Fee

Not disclosed, as tenant's consent has not been obtained for disclosure.

Security Deposit/Guarantee-

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

23MoneyRenewal Upon Expiration

The contract is a Fixed Term Building Lease, therefore the contract will terminate at the expiration of thelease term.

Rent Revision

Rent cannot be revised during the lease term.

Early Termination

Termination prior to the expiration of the lease term is not permitted.

Other Special Matters-

Overview of Building Conditions Survey ReportCompany Conducting Survey

Tokio Marine dR Co., Ltd.

Short term Repair Costs (within-

1 year)Long term Repair Costs (in 12
years)

Date of Report
Replacement Price

June 2024
JPY 12,385,500 thousand

JPY 1,440,958 thousand

Overview of PML reportCompany Conducting Survey

Tokio Marine dR Co., Ltd.

Probable Maximum Loss (PML)

Date of Report

June 2024

3.7%

Area Characteristic
The property has a good access from major tourism areas such as Mt. Hakodate, Old public hall of Hakodate ward, Kanemori red brick warehouse, andGoryokaku Park. It takes approximately 30 minutes by car from Hakodate airport, and approximately 8 minutes on foot from Hakodate Station on the JR
Hakodate Main Line.
All the guest rooms are double or larger, which enables to fulfill the various demand from business to leisure. Further, the hotel provides attractive services
and facilities such as a hot spring with a view of Mt. Hakodate and Hakodate Port, and a breakfast buffet with fresh sea food and live kitchen.
It is a full service hotel with chapel and multiple restaurants, in addition to the banquet and the meeting rooms catering to various demand including groupstay and parties.
Special Notes

None(Note 1) Variable rent is calculated by subtracting the fixed rent from the GOP during 6 months of the calculation period of variable rent. Yet in the case itis smaller than zero, the variable rent is zero.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

24D91: Hakodate Kokusai Hotel
Income and Expenditures, Etc.
Operating Period

Jan. 1, 2022-Dec. 31, 2022

Jan. 1, 2023-Dec. 31, 2023

GOP (= (1) - (2))

JPY 400,116 thousand

JPY 678,474 thousand--

JPY 63,953 thousand

JPY 63,370 thousandc. Non-life Insurance Premiums

JPY 2,454 thousand

JPY 2,454 thousandd. Trust Fees

JPY 1,000 thousand

JPY 1,000 thousand

JPY 332,708 thousand

JPY 611,648 thousand

JPY 2,240,999 thousand

JPY 3,010,635 thousand

Room Income

JPY 1,282,755 thousand

JPY 1,776,868 thousand

Other Income

JPY 958,243 thousand

JPY 1,233,766 thousand

JPY 1,840,883 thousand

JPY 2,332,161 thousand

ADR

JPY 13,784

JPY 15,732

RevPAR

JPY 8,079

JPY 11,191

Room Occupancy Rate

58.6%

71.1%

GOP Ratio

17.9%

22.5%

Daily/ Weekly/ Monthly

100.0% / 0.0% / 0.0%

100.0% / 0.0% / 0.0%

Overseas Sales Share

4.1%

7.9%

a. Land Lease Fees
b. Taxes and Public DuesNOI (= GOP - [a. + b. + c. + d.])(1) Sales(2) Operating Costs (not including a.
through d. above)(Reference)＜Hotel KPI＞
ActualAppraisal (Note 3)

Room Occupancy Rate (Note 1)

75.9%

Room Occupancy Rate

84.0%

ADR (Note 1)

JPY 16,006

ADR

JPY 17,000

RevPAR (Note 1)

JPY 12,152

RevPARJPY 14,280

NOI (Note 2)

JPY 729 million

NOI

JPY 1,052 million(Note 1) Average of recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 2) NOI is the net operating income (actual) for recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 3) Numbers are from appraisal report as of June 1, 2024. They are assumed numbers for the normal year assessed by each appraisal firm undercertain preconditions, and it is not guaranteed to be achieved in the future, and it may actually change significantly.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

25

D91: Hakodate Kokusai Hotel
Summary of Real Estate Appraisal Report
Appraisal Value

JPY 17,000 million

Appraisal Firm

Daiwa Real Estate Appraisal Co., Ltd.

Time of Valuation

June 1, 2024
Item

1. Value of Profits using the Profit Capitalization Method(1) Direct Capitalization Method

Contents

Overview(JPY thousand)
17,000,000
17,300,000(I) Operating Revenue [(a)-(b)]1,154,549(a) Total Potential Revenue

1,154,549(b) Vacant Room Losses, etc.
(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)]Standardized estimated rent income is posted taking into accountthe medium- to long-term competitiveness of the property.

101,930(c) Maintenance and Management Costs-(d) Utility Costs-(e) Repair Costs

27,168Annual average of Repair Costs on the engineering report isposted.
Property Management Fee as a general monitoring fee for the
management of the tenant is posted based on the level of Property(f) Property Management Fee

360

Management Fee of comparable assets, though property
management fee is not included in the planned securitization
scheme.

(g) Tenant Solicitation Expenses-(h) Taxes and Public Dues

61,823(i) Non-life Insurance Premiums

6,192(j) Other Costs(III) Net Operating Income [(I)-(II)](k) One-time Investment Gains

6,386(m) FF&E Reserve

58,356(2) DCF Methodof comparable assets.

10
92,911

Capitalization Yield

0.05% of Replacement Price is posted.
Reserve expense is posted based on the level of reserve expense

1,052,618(l) Capital Improvements and Expenses(IV) Net Income [(III)+(k)-(l)-(m)]Based on the historical data of 2024, taking into account the trendsof the land prices and level of the burden.

Based on average annual 12-year renewal fee in the engineering
report, using that of comparable assets as a reference.
Based on the level of FF&E Reserve of comparable assets.

901,360
5.2%

Mainly based on the comparison with the transactions of comparable
assets, interviewing investors as a reference.

16,800,000
Based on both the comparison with the transactions of comparable

Discount Rate

5.0%

assets and the method adding the individuality of the property to theyield of financial asset. Interviewed investors as a reference.
Based on the transaction yields, taking into account the forecast for

Final Capitalization Yield

5.4%

investment yields, the risks of the property as a subject ofinvestment, general forecasts for economic growth, the trends ofproperty prices and rents.

2. Estimated Price using Cost Method

9,730,000

Land Ratio

50.9%

Building Ratio

48.3%

FF&E Ratio

0.8%This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

26

Determined the price of the property based on the value of profits using the profit
capitalization method, upon determination that the current use would be the best effective
Other Points to be Noted for Appraisal by Appraisal Firm

option in consideration of competitiveness of the property within the market area, byreference to the estimated price using the cost method since investors tend to put focus on
profitability of the property and investment returns.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

27

D92: Art Hotel Nippori Lungwood
Type and Location of Specified Assets, etc.
Type of Specified Assets

Trust Beneficiary Right

Date of Planned Acquisition

July 31, 2024

Planned Purchase Price

JPY 16,335 million

Appraisal Value

JPY 16,500 million

Appraisal Firm

JLL Morii Valuation & Advisory K.K.
(Lot Number)

5-50-5 Higashinippori, Arakawa-ku, Tokyo, and three other lots

(Address)

5-50-5 Higashinippori, Arakawa-ku, Tokyo

LocationTransport

2 minutes on foot from Nippori Station (JR Yamanote Line and other lines)
Land Lease
Form of Possession

ZoningCommercial Area

73.77%)Land

Building

Coverage

Lot Area (Note 1)

3,095.60m2

Form of Possession

Unit ownership

Purpose of Use

Hotel

10,984.28m2

Construction Date

November 25, 1988

Total Floor Area
(Note 1)
Building(Right of site:

Ratio/Floor Area Ratio

80% / 700%

Structure/No. of

Steel-framed reinforced concrete, reinforced concrete, steel framed flat roof, 3 basements,

Stories

14 stories (Note 2)

Renovation Date

September 2021-November 2021, March 2024-July 2024 (scheduled)

Trustee

Mitsubishi UFJ Trust and Banking Corporation

Trust Period

From: November 30, 2004; Until: July 30, 2034

Creation of Security Interest

None

Lease Overview (as of May 31, 2024)
Total No. of Tenant (s)1Number of Guest Rooms

Leasable Area

10,984.28m2

Lease Area

10,984.28m2

Occupancy Rate

134 rooms (Note 3)(T:45, D:74, O:15)

Security Deposit/Guarantee

-

Money

100.0%GOP (per month)

JPY 52,008 thousand

Overview of Lease Agreement
TenantNippori Hotel Management GK

Type of Contract

Fixed rent plus variable rent type

Term

From: July 31, 2024; Until: July 30, 2034
Sum of variable rent corresponding to GOP from the operation of the hotel by the tenant, and the fixed rent (JPY

Determination of rent of lease
contract

186.4 million per year (Jan.: JPY 15.8 million per month / Feb.: JPY 11.5 million per month / Mar.: JPY 16.3 million
per month / Apr.: JPY 15.2 million per month / May: JPY 14.2 million per month / Jun.: JPY 14.7 million per month /Jul.: JPY 11.2 million per month / Aug.: JPY 12.8 million per month / Sep.: JPY 16.0 million per month / Oct.: JPY
19.8 million per month / Nov.: JPY 20.6 million per month / Dec.: JPY 18.3 million per month)) (Note 4)

Management Services Fee

Not disclosed, as tenant's consent has not been obtained for disclosure.

Security Deposit/Guarantee-

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

28MoneyRenewal Upon Expiration

The contract is a Fixed Term Building Lease, therefore the contract will terminate at the expiration of thelease term unless the contract is renewed.

Rent Revision

Rent cannot be revised during the lease term.

Early Termination

Termination prior to the expiration of the lease term is not permitted.

Other Special Matters-

Overview of Building Conditions Survey ReportCompany Conducting Survey

Tokio Marine dR Co., Ltd.

Short term Repair Costs (within-

1 year)Long term Repair Costs (in 12
years)

Date of Report
Replacement Price

June 2024
JPY 8,675,900 thousand

JPY 1,063,765 thousand

Overview of PML reportCompany Conducting Survey
Probable Maximum Loss (PML)

Tokio Marine dR Co., Ltd.

Date of Report

June 2024

4.1%

Area Characteristic
This property is located approximately 2-minute away from Nippori Station (JR Yamanote Line, Keisei Line, and Toei Line), and within an hour away fromboth Narita International Airport and Haneda International Airport. It also has a good access to major tourist attractions such as Ueno, Asakusa, andAkihabara.
Stable revenue is expected with guest rooms for three guests or more, in addition to twin and double rooms, which is suitable for business, leisure, andgroup travels including school trips.
It is a full service hotel with multiple meeting rooms and banquets, including the main banquet that can accommodate up to 800 people for meetings andparties.
Special Notes
Some part of its boundary of the property has not yet been demarcated in writing.
This property is a property on the land on which the leasehold right (or the land sublease right) is established, and the lessee shall obtain approval fromthe lessor (or sublessor in case of subleased land), Arakawa Ward, in the event of a transfer of ownership interest in the leasehold right (or land subleaseright) associated with a transfer of this building, a sublease of the relevant leased land (or subleased land) to any third party, an establishment of a right oflease or any other right over this building to any third party, or construction of a building other than this building or extension of this building.
(Note 1) The property is under sectional ownership, and “Lot Area” of “Land” is represented by the land area of the entire building, and “Total Floor Area”
of “Building” by the floor area of exclusively owned portions that will be acquired by INV (excluding parking area). The ratio of land with registeredright in the land (or subleased land) included in this property is 7,377/10,000. The total floor area of the entire building is 21,601.47m2, the portionof area that INV will acquire out of the total exclusively owned area is approximately 72.9%.
(Note 2) Although the property is written as 14-story building in the certificate of registry, it is written as 13-story building in the building inspection certificate.
For the purpose of the hotel operation, there is no 13th floor, and the upper floor of the 12th floor is the top floor which is displayed as the 14th floor.
(Note 3) It is the number of guest rooms after a renovation ending August 1, 2024. The number of guest rooms as of July 8, 2024 is 128.
(Note 4) Variable rent is calculated by subtracting the fixed rent from the GOP during 6 months of the calculation period of variable rent. Yet in the case itis smaller than zero, the variable rent is zero.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

29D92: Art Hotel Nippori Lungwood
Income and Expenditures, Etc.
Operating Period

Jan. 1, 2022-Dec. 31, 2022

Jan. 1, 2023-Dec. 31, 2023

GOP (= (1) - (2))

JPY 46,667 thousand

JPY 427,479 thousanda. Land Lease Fees

JPY 38,556 thousand

JPY 38,556 thousandb. Taxes and Public DuesJPY 24,053 thousand

JPY 25,038 thousandc. Non-life Insurance Premiums

JPY 1,726 thousand

JPY 1,726 thousandd. Trust Fees

JPY 1,000 thousand

JPY 1,000 thousand

JPY -18,668 thousand

JPY 361,157 thousand

JPY 809,527 thousand

JPY 1,404,528 thousand

Room Income

JPY 310,912 thousand

JPY 638,010 thousand

Other Income

JPY 498,614 thousand

JPY 766,518 thousand

JPY 762,859 thousand

JPY 977,049 thousand

ADR

JPY 7,851

JPY 14,723

RevPARJPY 6,654

JPY 13,656

Room Occupancy Rate

84.8%

92.8%

GOP Ratio

5.8%

30.4%

Daily/ Weekly/ Monthly

100.0% / 0.0% / 0.0%

100.0% / 0.0% / 0.0%

Overseas Sales Share

19.3%

41.1%

NOI (= GOP - [a. + b. + c. + d.])(1) Sales(2) Operating Costs (not including a.
through d. above)(Reference)＜Hotel KPI＞
ActualAppraisal (Note 3)

Room Occupancy Rate (Note 1)

93.3%

Room Occupancy Rate

93.6%

ADR (Note 1)

JPY 16,815

ADR

JPY 23,700

RevPAR (Note 1)

JPY 15,683

RevPARJPY 22,182

NOI (Note 2)

JPY 489 million

NOI

JPY 924 million(Note 1) Average of recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 2) NOI is the net operating income (actual) for recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 3) Numbers are from appraisal report as of June 1, 2024. They are assumed numbers for the normal year assessed by each appraisal firm undercertain preconditions, and it is not guaranteed to be achieved in the future, and it may actually change significantly.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

30

D92: Art Hotel Nippori Lungwood
Summary of Real Estate Appraisal Report
Appraisal Value

JPY 16,500 million

Appraisal Firm

JLL Morii Valuation & Advisory K.K.

Time of Valuation

June 1, 2024
Item

1. Value of Profits using the Profit Capitalization Method(1) Direct Capitalization Method

Contents

Overview(JPY thousand)
16,500,000
17,100,000(I) Operating Revenue [(a)-(b)]1,014,900(a) Total Potential Revenue

1,014,900(b) Vacant Room Losses, etc.
(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)]Rent that is stable in the medium- to long-term is estimated basedon the market report and etc.

90,285(c) Maintenance and Management Costs-(d) Utility Costs-(e) Repair Costs

26,594(f) Property Management Fee-(g) Tenant Solicitation Expenses-

Determined that the estimation on the engineering report isappropriate, and 30% of the standardized price is posted.

As for buildings, standardized amount of taxes is posted from(h) Taxes and Public Dues

19,928(i) Non-life Insurance Premiums

5,206

0.06% of the Replacement Price is posted.

(j) Other Costs

38,557

Land price is posted.

(III) Net Operating Income [(I)-(II)]924,615(k) One-time Investment Gains-(l) Capital Improvements and Expenses

62,053(m) FF&E Reserve

22,710(IV) Net Income [(III)+(k)-(l)-(m)]Determined that the estimation on the engineering report isappropriate, and 70% of the standardized price is posted.
Based on the historical data of comparable assets.

839,852

Capitalization Yield(2) DCF Method

medium- to long-term perspectives.

4.9%

Based on the Discount Rate, taking into account the volatility risk ofrevenue and principal.

16,200,000
Based on the local standard yields in the areas with the lowest risk

Discount Rate

4.7%

considering the trends of long-term national bonds, taking accountinto the characteristics of the area where the property is located, andthe risks regarding the individuality of the property.
Assessed by considering uncertainties in the forecast for future

Final Capitalization Yield

5.1%

changes in net revenue and future degradation and sales risks of thebuilding, in addition to the cap rate

2. Estimated Price using Cost Method

8,820,000

Land Ratio

74.7%

Building Ratio

23.6%

FF&E Ratio

1.7%
Adopted the value of profits in consideration of the analyses of regional and other individual

Other Points to be Noted for Appraisal by Appraisal Firm

factors, the characteristics of the estimated price and its compatibility with the value of profits,
and based on the relative liability of the materials used in each method, by reference to thecost approach.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

31D93: Hotel MyStays Kumamoto Riverside
Type and Location of Specified Assets, etc.
Type of Specified Assets

Trust Beneficiary Right

Date of Planned Acquisition

July 31, 2024

Planned Purchase Price

JPY 6,831 million

Appraisal ValueJPY 6,900 million

Appraisal Firm

JLL Morii Valuation & Advisory K.K.
(Lot Number)

4-14 Koyaima-machi Chuo-ku, Kumamoto-shi, Kumamoto, and four other lots

(Address)

4-12 Koyaima-machi Chuo-ku, Kumamoto-shi, Kumamoto

LocationTransport

Approximately 4 minutes on foot from Karashimacho Stop on the Kumamoto City Tram
Form of Possession

Ownership

ZoningLot Area

1,621.85m2

Form of Possession

Ownership

Purpose of Use

Hotel

Total Floor Area

6,347.65m2

Construction Date

November 26, 1984
February 28, 1995 (Extension)

Structure/No. of

Steel framed reinforced concrete structure with flat roof, 13 stories, Steel framed

Stories

reinforced concrete structure with flat roof, 1 basement, 10 stories

Renovation Date

March 2023-August 2023, January 2024-April 2024

Land

Building

Building

Commercial Area
Coverage

Ratio/Floor Area Ratio

Trustee

SMBC Trust Bank Ltd.

Trust Period

From: August 31, 2022; Until: July 30, 2034

Creation of Security Interest

None

80% / 600%

Lease Overview (as of May 31,2024)
Total No. of Tenant (s)1Number of Guest Rooms

Leasable Area

6,347.65m2

Lease Area

6,347.65m2

Occupancy Rate

194 rooms(T:33, D:129, O:32)

Security Deposit/Guarantee

-

Money

100.0%GOP (per month)

JPY 23,681 thousand

Overview of Lease Agreement
TenantMYSTAYS HOTEL MANAGEMENT Co., Ltd.

Type of Contract

Fixed rent plus variable rent type

Term

From: July 31, 2024; Until: July 30, 2034
Sum of variable rent corresponding to GOP from the operation of the hotel by the tenant, and the fixed rent (JPY

Determination of rent of lease
contract

85.6 million per year (Jan.: JPY 3.9 million per month / Feb.: JPY 5.3 million per month / Mar.: JPY 6.6 million permonth / Apr.: JPY 5.9 million per month / May: JPY 9.5 million per month / Jun.: JPY 5.5 million per month / Jul.:JPY 7.0 million per month / Aug.: JPY 10.7 million per month / Sep.: JPY 7.5 million per month / Oct.: JPY 8.2
million per month / Nov.: JPY 9.4 million per month / Dec.: JPY 6.1 million per month)) (Note 1)

Management Services Fee
Security Deposit/Guarantee
Money
Renewal Upon Expiration

Not disclosed, as tenant's consent has not been obtained for disclosure.
The contract is a Fixed Term Building Lease, therefore the contract will terminate at the expiration of thelease term unless the contract is renewed.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

32

Rent Revision

Rent cannot be revised during the lease term.

Early Termination

Termination prior to the expiration of the lease term is not permitted.

Other Special Matters-

Overview of Building Conditions Survey ReportCompany Conducting Survey

Tokio Marine dR Co., Ltd.

Short term Repair Costs (within

Date of Report-

1 year)Long term Repair Costs (in 12

Replacement Price

June 2024
JPY 2,800,100 thousand

JPY 368,908 thousand

years)
Overview of PML reportCompany Conducting Survey

Tokio Marine dR Co., Ltd.

Probable Maximum Loss (PML)

Date of Report

June 2024

7.4%

Area Characteristic
This property is located in the city centre, approximately 4 minutes on foot from Karashimacho Stop on the Kumamoto City Tram, approximately 30-minuteaway by car from Aso Kumamoto Airport, and approximately 3 minutes on foot from Shimotoori Arcade, the center of fashion or amusement and the largest
shopping arcade in Kumamoto prefecture.
There are various types of guest rooms including, single, twin, and Japanese and Western style, which is capable to fulfill the needs of tourists as well as
business travelers.
It is a limited service hotel with a restaurant “Grand Cafe” with good reputation for its menu using local ingredients, and a banquet with maximum capacityof 84 people.
Special Notes
None(Note 1) Variable rent is calculated by subtracting the fixed rent from the GOP during 6 months of the calculation period of variable rent. Yet in the case itis smaller than zero, the variable rent is zero.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

33

D93: Hotel MyStays Kumamoto Riverside
Income and Expenditures, Etc.
Operating Period

Aug. 31, 2022-Dec. 31, 2022 (Note 1)

Jan. 1, 2023-Dec. 31, 2023

GOP (= (1) - (2))

JPY 30,237 thousand

JPY 196,083 thousand--

JPY 3,711 thousand

JPY 10,192 thousandc. Non-life Insurance Premiums

JPY 195 thousand

JPY 579 thousandd. Trust Fees

JPY 235 thousand

JPY 700 thousand

JPY 26,095 thousand

JPY 184,611 thousand

JPY 134,453 thousand

JPY 512,158 thousand

Room Income

JPY 118,348 thousand

JPY 457,063 thousand

Other Income

JPY 16,104 thousand

JPY 55,095 thousand

JPY 104,215 thousand

JPY 316,075 thousand

ADR

JPY 7,559

JPY 9,473

RevPAR

JPY 4,959

JPY 6,656

Room Occupancy Rate

65.6%

70.3%

GOP Ratio

22.5%

38.3%

Daily/ Weekly/ Monthly

100.0% / 0.0% / 0.0%

100.0% / 0.0% / 0.0%

Overseas Sales Share

8.1%

12.0%

a. Land Lease Fees
b. Taxes and Public DuesNOI (= GOP - [a. + b. + c. + d.])(1) Sales(2) Operating Costs (not including a.
through d. above)(Reference)(Note 1) Numbers above are based on data after August 31, 2022, when Hotel MyStays Kumamoto Riverside re-opened after rebranding.

＜Hotel KPI＞
ActualAppraisal (Note 3)

Room Occupancy Rate (Note 1)

75.5%

Room Occupancy Rate

86.9%

ADR (Note 1)

JPY 9,957

ADR

JPY 12,685

RevPAR (Note 1)

JPY 7,514

RevPARJPY 11,024

NOI (Note 2)

JPY 221 million

NOI

JPY 437 million(Note 1) Average of recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 2) NOI is the net operating income (actual) for recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 3) Numbers are from appraisal report as of June 1, 2024. They are assumed numbers for the normal year assessed by each appraisal firm undercertain preconditions, and it is not guaranteed to be achieved in the future, and it may actually change significantly.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

34D93: Hotel MyStays Kumamoto Riverside
Summary of Real Estate Appraisal Report
Appraisal ValueJPY 6,900 million

Appraisal Firm

JLL Morii Valuation & Advisory K.K.

Time of Valuation

June 1, 2024
Item

1. Value of Profits using the Profit Capitalization Method(1) Direct Capitalization Method

Contents

Overview(JPY thousand)
6,900,000
7,060,000(I) Operating Revenue [(a)-(b)]457,068(a) Total Potential Revenue

457,068(b) Vacant Room Losses, etc.
(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)]Rent that is stable in the medium- to long-term is estimated basedon the market report and etc.

19,839(c) Maintenance and Management Costs-(d) Utility Costs-(e) Repair Costs

9,223(f) Property Management Fee-(g) Tenant Solicitation Expenses-

Determined that the estimation on the engineering report isappropriate, and 30% of the standardized price is posted.

As for land, it is based on historical data, taking into account the(h) Taxes and Public Dues

8,936(i) Non-life Insurance Premiums

1,680

trends of land prices.
As for buildings, standardized amount of taxes is posted frommedium- to long-term perspectives.

(j) Other Costs(III) Net Operating Income [(I)-(II)]437,229(k) One-time Investment Gains-(l) Capital Improvements and Expenses

21,520(m) FF&E Reserve

17,937(IV) Net Income [(III)+(k)-(l)-(m)]Determined that the estimation on the engineering report isappropriate, and 70% of the standardized price is posted.
Based on the historical data of comparable assets.

397,772

Capitalization Yield(2) DCF Method

0.06% of the Replacement Price is posted.

5.6%

Based on the Discount Rate, taking into account the volatility risk ofrevenue and principal.

6,730,000
Based on the local standard yields in the areas with the lowest risk

Discount Rate

5.4%

considering the trends of long-term national bonds, taking accountinto the characteristics of the area where the property is located, andthe risks regarding the individuality of the property.
Assessed by considering uncertainties in the forecast for future

Final Capitalization Yield

5.8%

changes in net revenue and future degradation and sales risks of thebuilding, in addition to the cap rate

2. Estimated Price using Cost Method

2,050,000

Land Ratio

53.7%

Building Ratio

32.9%

FF&E Ratio

13.4%
Adopted the value of profits in consideration of the analyses of regional and other individual

Other Points to be Noted for Appraisal by Appraisal Firm

factors, the characteristics of the estimated price and its compatibility with the value of profits,
and based on the relative liability of the materials used in each method, by reference to thecost approach.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

35D94: Art Hotel Aomori
Type and Location of Specified Assets, etc.
Type of Specified Assets

Trust Beneficiary Right

Date of Planned Acquisition

July 31, 2024

Planned Purchase Price

JPY 5,672 million

Appraisal Value

JPY 5,730 million

Appraisal Firm

Daiwa Real Estate Appraisal Co., Ltd.
(Lot Number)

2-1-46 Hon-cho, Aomori-shi, Aomori, and nine other lots

(Address)

2-1-26 Hon-cho, Aomori-shi, Aomori

LocationTransport

Approximately 13 minutes on foot from Aomori Station (JR Ouu-Honsen, and other line)
Form of Possession

Ownership

ZoningLot Area

3,904.30 m2

Form of Possession

Ownership

Purpose of Use

Hotel

Total Floor Area

9,176.79 m2

Construction Date

June 20, 1996

Land

Building

Structure/No. of
StoriesRenovation Date

Building

Commercial Area
Coverage

Ratio/Floor Area Ratio

80% / 400%

Steel framed reinforced concrete, reinforced concrete structure with flat roof, 12 stories

August 2019-March 2020

Trustee

SMBC Trust Bank Ltd.

Trust Period

From: March 18, 2019; Until: July 30, 2034

Creation of Security Interest

None

Lease Overview (as of May 31, 2024)
Total No. of Tenant (s)1

211 rooms

Number of Guest Rooms
Leasable Area

9,176.79m2

Lease Area

9,176.79m2

Occupancy Rate

(T:78, D:131, O:2)

Security Deposit/Guarantee

-

Money

100.0%GOP (per month)

JPY 24,648 thousand

Overview of Lease Agreement
TenantMYSTAYS HOTEL MANAGEMENT Co., Ltd.

Type of Contract

Fixed rent plus variable rent type

Term

From: July 31, 2024; Until: July 30, 2034
Sum of variable rent corresponding to GOP from the operation of the hotel by the tenant, and the fixed rent (JPY

Determination of rent of lease
contract

89.0 million per year (Jan.: JPY 1.8 million per month / Feb.: JPY 3.5 million per month / Mar.: JPY 4.8 million permonth / Apr.: JPY 11.8 million per month / May: JPY 7.3 million per month / Jun.: JPY 8.6 million per month / Jul.:JPY 7.2 million per month / Aug.: JPY 21.2 million per month / Sep.: JPY 6.1 million per month / Oct.: JPY 10.6
million per month / Nov.: JPY 4.9 million per month / Dec.: JPY 1.2 million per month)) (Note 1)

Management Services Fee
Security Deposit/Guarantee
Money
Renewal Upon Expiration

Not disclosed, as tenant's consent has not been obtained for disclosure.
The contract is a Fixed Term Building Lease, therefore the contract will terminate at the expiration of thelease term unless the contract is renewed.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

36

Rent Revision

Rent cannot be revised during the lease term.

Early Termination

Termination prior to the expiration of the lease term is not permitted.

Other Special Matters-

Overview of Building Conditions Survey ReportCompany Conducting Survey
Short term Repair Costs (within
1 year)Long term Repair Costs (in 12
years)

Tokio Marine dR Co., Ltd.

Date of Report-

Replacement Price

June 2024
JPY 3,590,400 thousand

JPY 299,600 thousand

Overview of PML reportCompany Conducting Survey
Probable Maximum Loss (PML)

Tokio Marine dR Co., Ltd.

Date of Report

June 2024

2.8%

Area Characteristic
This property has a good access, located approximately 13-minute away on foot from JR Aomori Station, approximately 15-minute away by car from Aomori
Chuo IC and approximately 30-minute away by bus from Aomori Airport. Also, it has a convenient access to downtown Aomori City and provides a gorgeous
view of Mutsu Bay and Hakkoda Mountains.
It is within a walking distance to the Shinmachi Street known as the course of Nebuta float of Aomori Nebuta Festival held in August every year, which is thebiggest Nebuta festivals in Japan. It is a full service hotel with popular Nebuta-themed guest rooms.
Special Notes
None(Note 1) Variable rent is calculated by subtracting the fixed rent from the GOP during 6 months of the calculation period of variable rent. Yet in the case itis smaller than zero, the variable rent is zero.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

37D94: Art Hotel Aomori
Income and Expenditures, Etc.
Operating Period

Jan. 1, 2022-Dec. 31, 2022

Jan. 1, 2023-Dec. 31, 2023

GOP (= (1) - (2))

JPY 223,460 thousand

JPY 290,429 thousand--

JPY 20,452 thousand

JPY 20,160 thousandc. Non-life Insurance Premiums

JPY 715 thousand

JPY 715 thousandd. Trust Fees

JPY 700 thousand

JPY 700 thousand

JPY 201,592 thousand

JPY 268,853 thousand

JPY 675,860 thousand

JPY 847,273 thousand

Room Income

JPY 487,235 thousand

JPY 600,194 thousand

Other Income

JPY 188,624 thousand

JPY 247,078 thousand

JPY 452,400 thousand

JPY 556,844 thousand

ADR

JPY 8,853

JPY 10,412

RevPARJPY 6,326

JPY 7,793

Room Occupancy Rate

71.5%

74.8%

GOP Ratio

33.1%

34.3%

Daily/ Weekly/ Monthly

100.0% / 0.0% / 0.0%

100.0% / 0.0% / 0.0%

Overseas Sales Share

4.8%

15.1%

a. Land Lease Fees
b. Taxes and Public DuesNOI (= GOP - [a. + b. + c. + d.])(1) Sales(2) Operating Costs (not including a.
through d. above)(Reference)＜Hotel KPI＞
ActualAppraisal (Note 3)

Room Occupancy Rate (Note 1)

74.9%

Room Occupancy Rate

82.0%

ADR (Note 1)

JPY 10,737

ADR

JPY 11,500

RevPAR (Note 1)

JPY 8,040

RevPAR

JPY 9,430

NOI (Note 2)

JPY 294 million

NOI

JPY 372 million(Note 1) Average of recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024).
(Note 2) NOI is the net operating income (actual) for recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 3) Numbers are from appraisal report as of June 1, 2024. They are assumed numbers for the normal year assessed by each appraisal firm undercertain preconditions, and it is not guaranteed to be achieved in the future, and it may actually change significantly.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

38D94: Art Hotel Aomori
Summary of Real Estate Appraisal Report
Appraisal Value

JPY 5,730 million

Appraisal Firm

Daiwa Real Estate Appraisal Co., Ltd.

Time of Valuation

June 1, 2024
Item

1. Value of Profits using the Profit Capitalization Method(1) Direct Capitalization Method

Contents

Overview(JPY thousand)
5,730,000
5,830,000(I) Operating Revenue [(a)-(b)]402,487(a) Total Potential Revenue

402,487(b) Vacant Room Losses, etc.
(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)]Standardized estimated rent income is posted taking into accountthe medium- to long-term competitiveness of the property.

29,828(c) Maintenance and Management Costs-(d) Utility Costs-(e) Repair Costs

6,521

Annual average of Repair Costs on the engineering report isposted.
Property Management Fee as a general monitoring fee for the
management of the tenant is posted based on the level of Property(f) Property Management Fee

360

Management Fee of comparable assets, though property
management fee is not included in the planned securitization
scheme.

(g) Tenant Solicitation Expenses-(h) Taxes and Public Dues

19,386(i) Non-life Insurance Premiums

1,795(j) Other Costs(III) Net Operating Income [(I)-(II)](k) One-time Investment Gains

1,766(m) FF&E Reserve

16,027(2) DCF Methodof comparable assets.

18,446

Capitalization Yield

0.05% of Replacement Price is posted.
Reserve expense is posted based on the level of reserve expense

372,658(l) Capital Improvements and Expenses(IV) Net Income [(III)+(k)-(l)-(m)]Based on the historical data of 2024, taking into account the trendsof the land prices and level of the burden.

Based on average annual 12-year renewal fee in the engineering
report, using that of comparable assets as a reference.
Based on the level of FF&E Reserve of comparable assets.

338,184
5.8%

Mainly based on the comparison with the transactions of comparable
assets, interviewing investors as a reference.

5,680,000
Based on both the comparison with the transactions of comparable

Discount Rate

5.6%

assets and the method adding the individuality of the property to theyield of financial asset. Interviewed investors as a reference.
Based on the transaction yields, taking into account the forecast for

Final Capitalization Yield

6.0%

investment yields, the risks of the property as a subject ofinvestment, general forecasts for economic growth, the trends ofproperty prices and rents.

2. Estimated Price using Cost Method

1,640,000

Land Ratio

20.3%

Building Ratio

77.4%

FF&E Ratio

2.4%

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

39

Determined the price of the property based on the value of profits using the profit
capitalization method, upon determination that the current use would be the best effective
Other Points to be Noted for Appraisal by Appraisal Firm

option in consideration of competitiveness of the property within the market area, byreference to the estimated price using the cost method since investors tend to put focus on
profitability of the property and investment returns.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

40D95: Kamenoi Hotel Izukogen
Type and Location of Specified Assets, etc.
Type of Specified Assets

Trust Beneficiary Right

Date of Planned Acquisition

July 31, 2024

Planned Purchase Price

JPY 5,563 million

Appraisal Value

JPY 5,620 million

Appraisal Firm

The Tanizawa Sōgō Appraisal Co., Ltd.
(Lot Number)

1104-5 Futazuka, Yawatano, Ito-shi, Shizuoka, and two other lots

(Address)-

LocationTransport

Approximately 6 minutes by car from Izukogen Station (Izukyu-Line)
Form of Possession

Ownership

ZoningLot Area

26,778.40 m2

Form of Possession

Ownership

Purpose of Use

RyokanTotal Floor Area

8,891.36 m2

Construction Date

June 6, 1988

Structure/No. ofReinforced concrete with flat roof, 3 stories, Reinforced concrete with flat roof, 2

Storiesbasements, 3 stories

Renovation Date

June 2020-March 2021

Land

Building

Building

Not Specified
Coverage

Ratio/Floor Area Ratio

Trustee

Mitsubishi UFJ Trust and Banking Corporation

Trust Period

From: April 5, 2022; Until: July 30, 2034

Creation of Security Interest

None

60% / 200%

Lease Overview (as of May 31, 2024)
Total No. of Tenant (s)155 rooms

Number of Guest Rooms
Leasable Area

8,891.36 m2

Lease Area

8,891.36 m2

Occupancy Rate

(T:50, O:5)

Security Deposit/Guarantee

-

Money

100.0%GOP (per month)

JPY 18,195 thousand

Overview of Lease Agreement
TenantMYSTAYS HOTEL MANAGEMENT Co., Ltd.

Type of Contract

Fixed rent plus variable rent type

Term

From: July 31, 2024; Until: July 30, 2034
Sum of variable rent corresponding to GOP from the operation of the hotel by the tenant, and the fixed rent (JPY

Determination of rent of lease
contract

60.0 million per year (Jan.: JPY 4.6 million per month / Feb.: JPY 4.7 million per month / Mar.: JPY 6.1 million permonth / Apr.: JPY 2.6 million per month / May: JPY 4.8 million per month / Jun.: JPY 3.3 million per month / Jul.:
JPY 3.3 million per month / Aug.: JPY 10.9 million per month / Sep.: JPY 4.9 million per month / Oct.: JPY 5.5
million per month / Nov.: JPY 5.1 million per month / Dec.: JPY 4.2 million per month)) (Note 1)

Management Services Fee
Security Deposit/Guarantee
Money
Renewal Upon Expiration

Not disclosed, as tenant's consent has not been obtained for disclosure.
The contract is a Fixed Term Building Lease, therefore the contract will terminate at the expiration of thelease term unless the contract is renewed.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

41

Rent Revision

Rent cannot be revised during the lease term.

Early Termination

Termination prior to the expiration of the lease term is not permitted.

Other Special Matters-

Overview of Building Conditions Survey ReportCompany Conducting Survey

Tokio Marine dR Co., Ltd.

Short term Repair Costs (within-

1 year)Long term Repair Costs (in 12
years)

Date of Report
Replacement Price

June 2024
JPY 3,815,800 thousand

JPY 338,939 thousand

Overview of PML reportCompany Conducting Survey

Tokio Marine dR Co., Ltd

Probable Maximum Loss (PML)

Date of Report

June 2024

16.9%

Area Characteristic
This property is located approximately 6-minute away by car from Izukogen Station (Izukyu-Line). Izukogen area is a popular tourist site with museums, etc.
and with a good access from Tokyo metropolitan area by car and train. All rooms have ocean views overlooking Sagami Bay.
It is a resort hotel with elegant and calm rooms that incorporates European-inspired design with a Japanese tone. 22 of the 55 rooms have a private openair bath of 52 m2-116 m2.
The resort hotel is expected to have a stable demand, with facilities such as “infinity pool-like terrace”, top-floor restaurants, a large bath, and a sauna.
Special Notes
The boundary of the property has not yet been demarcated in writing.
The land of the real estate includes a setback (a part which is deemed as a road pursuant to the provisions of Article 42, Paragraph 2 of the BuildingStandards Act) of approximately 6.5m2.
(Note 1) Variable rent is calculated by subtracting the fixed rent from the GOP during 6 months of the calculation period of variable rent. Yet in the case itis smaller than zero, the variable rent is zero.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

42D95: Kamenoi Hotel Izukogen
Income and Expenditures, Etc.
Operating Period

Jul. 1, 2022-Dec. 31, 2022 (Note 1)

Jan. 1, 2023-Dec. 31, 2023

GOP (= (1) - (2))

JPY 3,127 thousand

JPY 86,680 thousand－－

JPY 9,574 thousand

JPY 10,723 thousandc. Non-life Insurance Premiums

JPY 370 thousand

JPY 734 thousandd. Trust Fees

JPY 504 thousand

JPY 1,000 thousand

JPY -7,321 thousand

JPY 74,223 thousand

JPY 345,651 thousand

JPY 966,819 thousand

Room Income

JPY 198,209 thousand

JPY 515,572 thousand

Other Income

JPY 147,441 thousand

JPY 451,246 thousand

JPY 342,524 thousand

JPY 880,138 thousand

ADR

JPY 28,889

JPY 30,073

RevPARJPY 19,585

JPY 25,682

Room Occupancy Rate

67.8%

85.4%

GOP Ratio

0.9%

9.0%

Daily/ Weekly/ Monthly

100.0% / 0.0% / 0.0%

100.0% / 0.0% / 0.0%

Overseas Sales Share

2.1%

5.4%

a. Land Lease Fees
b. Taxes and Public DuesNOI (= GOP - [a. + b. + c. + d.])(1) Sales(2) Operating Costs (not including a.
through d. above)(Reference)(Note 1) Numbers above are based on data after Jul. 1, 2022, when Kamenoi Hotel Izukogen re-opened after rebranding.

＜Hotel KPI＞
ActualAppraisal (Note 3)

Room Occupancy Rate (Note 1)

86.8%

Room Occupancy Rate

89.0%

ADR (Note 1)

JPY 32,059

ADR

JPY 41,200

RevPAR (Note 1)

JPY 27,832

RevPAR

JPY 36,669

NOI (Note 2)

JPY 127 million

NOI

JPY 344 million(Note 1) Average of recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 2) NOI is the net operating income (actual) for recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 3) Numbers are from appraisal report as of June 1, 2024. They are assumed numbers for the normal year assessed by each appraisal firm undercertain preconditions, and it is not guaranteed to be achieved in the future, and it may actually change significantly.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

43D95: Kamenoi Hotel Izukogen
Summary of Real Estate Appraisal Report
Appraisal Value

JPY 5,620 million

Appraisal Firm

The Tanizawa Sōgō Appraisal Co., Ltd.

Time of Valuation

June 1, 2024
Item

1. Value of Profits using the Profit Capitalization Method(1) Direct Capitalization Method

Contents

Overview(JPY thousand)
5,620,000
5,680,000(I) Operating Revenue [(a)-(b)]367,575(a) Total Potential Revenue

367,575(b) Vacant Room Losses, etc.
(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)]Rent income is posted with GOP and variable rent calculated basedon the historical data, projection, market report, and etc.

23,293(c) Maintenance and Management Costs-(d) Utility Costs

Expense based on engineering report, similar transactions, using(e) Repair Costs

9,525

Basic Directive on the Corporation Tax Act as a reference, isposted with the following assignment: Repair Costs : Capital
Improvements and Expenses=3:7(f) Property Management Fee-(g) Tenant Solicitation Expenses-(h) Taxes and Public Dues(i) Non-life Insurance Premiums(j) Other Costs(III) Net Operating Income [(I)-(II)](k) One-time Investment Gains

11,903762
1,102

Historical databased on the taxation document in FY2024.
Based on the Non-life Insurance Premiums of comparable assets.
0.3% of the operating revenue is posted.

344,281
Expense based on engineering report, similar transactions, using(l) Capital Improvements and Expenses

19,050

Basic Directive on the Corporation Tax Act as a reference, is posted
with the following assignment: Repair Costs : Capital Improvements
and Expenses=3:7(m) FF&E Reserve(IV) Net Income [(III)+(k)-(l)-(m)]12,786

1.0% of the total revenue (3rd year of DCF method) is posted, using
similar transactions as a reference.

312,445
Calculated based on the comparison among the multiple similar

Capitalization Yield

5.5%

transactions in the similar areas in close or the same demand areas,taking into account the forecast of net income trends.

(2) DCF Method

5,600,000

Discount Rate

5.4%

Final Capitalization Yield

5.5%

2. Estimated Price using Cost Method

account the individuality of the property.
Based on the Capitalization yield taking into account the uncertainty.

5,550,000

Land Ratio

69.9%

Building Ratio

26.8%

FF&E Ratio

Based on the investment yield of comparable assets, taking into

3.3%
Adopted the appraisal value determined using the income capitalization method, after

Other Points to be Noted for Appraisal by Appraisal Firm

considering recent economic environment, especially real estate market trend andappropriateness of using data, pricing rule, relationship between unit price and gross price,with the cost approach value as a referenceThis English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

44D96: Art Hotel Oita
Type and Location of Specified Assets, etc.
Type of Specified Assets

Trust Beneficiary Right

Date of Planned Acquisition

July 31, 2024

Planned Purchase Price

JPY 5,484 million

Appraisal Value

JPY 5,540 million

Appraisal Firm

JLL Morii Valuation & Advisory K.K.
(Lot Number)

2-7-1 Myako-machi, Oita-shi, Oita, and two other lots

(Address)-

LocationTransport

11 minutes on foot from Oita Station (JR Nippo Main Line and other lines)
Form of Possession

Ownership

ZoningLot Area

1,495.08 m2

Form of Possession

Ownership

Purpose of Use

Hotel

Total Floor Area

8,782.34 m2

Construction Date

November 10, 1987

Land

Building

Structure/No. of
StoriesRenovation Date

Building

Commercial Area
Coverage

Ratio/Floor Area Ratio

80% / 600%

Steel framed reinforced concrete structure with flat roof, 13 stories

August 2019-March 2020

Trustee

SMBC Trust Bank Ltd.

Trust Period

From: April 1, 2019; Until: July 30, 2034

Creation of Security Interest

None

Lease Overview (as of May 31, 2024)
Total No. of Tenant (s)1Number of Guest Rooms

Leasable Area

8,782.34 m2

Lease Area

8,782.34 m2

Occupancy Rate

228 rooms(T:37, D:187, O:4)

Security Deposit/Guarantee

-

Money

100.0%GOP (per month)

JPY 28,239 thousand

Overview of Lease Agreement
TenantMYSTAYS HOTEL MANAGEMENT Co., Ltd.

Type of Contract

Fixed rent plus variable rent type

Term

From: July 31, 2024; Until: July 30, 2034
Sum of variable rent corresponding to GOP from the operation of the hotel by the tenant, and the fixed rent (JPY

Determination of rent of lease
contract

87.8 million per year (Jan.: JPY 3.9 million per month / Feb.: JPY 7.5 million per month / Mar.: JPY 10.1 million permonth / Apr.: JPY 6.2 million per month / May: JPY 10.0 million per month / Jun.: JPY 6.2 million per month / Jul.:JPY 6.2 million per month / Aug.: JPY 7.8 million per month / Sep.: JPY 5.8 million per month / Oct.: JPY 6.4 million
per month / Nov.: JPY 11.9 million per month / Dec.: JPY 5.8 million per month)) (Note 1)

Management Services Fee
Security Deposit/Guarantee
Money
Renewal Upon Expiration

Not disclosed, as tenant's consent has not been obtained for disclosure.
The contract is a Fixed Term Building Lease, therefore the contract will terminate at the expiration of thelease term unless the contract is renewed.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

45

Rent Revision

Rent cannot be revised during the lease term.

Early Termination

Termination prior to the expiration of the lease term is not permitted.

Other Special Matters-

Overview of Building Conditions Survey ReportCompany Conducting Survey
Short term Repair Costs (within
1 year)Long term Repair Costs (in 12
years)

Tokio Marine dR Co., Ltd.

Date of Report-

Replacement Price

June 2024
JPY 3,179,200 thousand

JPY 367,276 thousand

Overview of PML reportCompany Conducting Survey
Probable Maximum Loss (PML)

Tokio Marine dR Co., Ltd.

Date of Report

June 2024

10.4%

Area Characteristic
This property is located in downtown Oita and has good access for business travelers and tourists. The hotel is close to Funai Castle (the symbol of Oitacity), the prefectural government of Oita, and Oita city hall. It takes approximately 11 minutes on foot from JR Oita Station and other two lines,
approximately 15 minutes by car from Oita IC, and approximately 60 minutes by car from Oita Airport.
With diverse types of guest rooms including Japanese-modern single, double, queen, twin, deluxe, and family style rooms that incorporates traditional
crafts and culture, which can fulfill a variety of accommodation demand. It is a full service hotel with a modern Chinese-inspired restaurant “OPERA” withlarge and small banquet halls and meeting rooms.
Special Notes
None(Note 1) Variable rent is calculated by subtracting the fixed rent from the GOP during 6 months of the calculation period of variable rent. Yet in the case itis smaller than zero, the variable rent is zero.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

46

D96: Art Hotel Oita
Income and Expenditures, Etc.
Operating Period

Jan. 1, 2022-Dec. 31, 2022

Jan. 1, 2023-Dec. 31, 2023

GOP (= (1) - (2))

JPY 293,398 thousand

JPY 287,844 thousanda. Land Lease Fees-

b. Taxes and Public Dues

JPY 15,573 thousand

JPY 15,372 thousand

JPY 644 thousand

JPY 644 thousand

JPY 1,000 thousand

JPY 1,000 thousand

JPY 276,180 thousand

JPY 270,827 thousand

JPY 849,663 thousand

JPY 919,693 thousand

Room Income

JPY 602,696 thousand

JPY 614,656 thousand

Other Income

JPY 246,967 thousand

JPY 305,037 thousand

JPY 556,265 thousand

JPY 631,849 thousand

ADR

JPY 8,455

JPY 8,677

RevPAR

JPY 7,242

JPY 7,385

Room Occupancy Rate

85.7%

85.1%

GOP Ratio

34.5%

31.3%

Daily/ Weekly/ Monthly

100.0% / 0.0% / 0.0%

100.0% / 0.0% / 0.0%

Overseas Sales Share

6.7%

9.0%

c. Non-life Insurance Premiumsd. Trust FeesNOI (= GOP - [a. + b. + c. + d.])(1) Sales(2) Operating Costs (not including a.
through d. above)(Reference)-＜Hotel KPI＞
ActualAppraisal (Note 3)

Room Occupancy Rate (Note 1)

84.7%

Room Occupancy Rate

86.1%

ADR (Note 1)

JPY 8,237

ADR

JPY 9,990

RevPAR (Note 1)

JPY 6,977

RevPAR

JPY 8,592

NOI (Note 2)

JPY 257 million

NOI

JPY 360 million(Note 1) Average of recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 2) NOI is the net operating income (actual) for recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 3) Numbers are from appraisal report as of June 1, 2024. They are assumed numbers for the normal year assessed by each appraisal firm undercertain preconditions, and it is not guaranteed to be achieved in the future, and it may actually change significantly.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

47D96: Art Hotel Oita
Summary of Real Estate Appraisal Report
Appraisal Value

JPY 5,540 million

Appraisal Firm

JLL Morii Valuation & Advisory K.K.

Time of Valuation

June 1, 2024
Item

1. Value of Profits using the Profit Capitalization Method(1) Direct Capitalization Method

Contents

Overview(JPY thousand)
5,540,000
5,650,000(I) Operating Revenue [(a)-(b)]385,124(a) Total Potential Revenue

385,124(b) Vacant Room Losses, etc.
(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)]Rent that is stable in the medium- to long-term is estimated basedon the market report and etc.

24,149(c) Maintenance and Management Costs-(d) Utility Costs-(e) Repair Costs

9,182(f) Property Management Fee-(g) Tenant Solicitation Expenses-

Determined that the estimation on the engineering report isappropriate, and 30% of the standardized price is posted.

As for land, it is based on historical data, taking into account the(h) Taxes and Public Dues

13,059(i) Non-life Insurance Premiums

1,908

trends of land prices.
As for buildings, standardized amount of taxes is posted frommedium- to long-term perspectives.

(j) Other Costs(III) Net Operating Income [(I)-(II)]360,975(k) One-time Investment Gains-(l) Capital Improvements and Expenses

11,433(m) FF&E Reserve

21,424(IV) Net Income [(III)+(k)-(l)-(m)]Determined that the estimation on the engineering report isappropriate, and 70% of the standardized price is posted.
Based on the historical data of comparable assets.

328,118

Capitalization Yield(2) DCF Method

0.06% of the Replacement Price is posted.

5.8%

Based on the Discount Rate, taking into account the volatility risk ofrevenue and principal.

5,430,000
Based on the local standard yields in the areas with the lowest risk

Discount Rate

5.6%

considering the trends of long-term national bonds, taking accountinto the characteristics of the area where the property is located, andthe risks regarding the individuality of the property.
Assessed by considering uncertainties in the forecast for future

Final Capitalization Yield

6.0%

changes in net revenue and future degradation and sales risks of thebuilding, in addition to the cap rate.

2. Estimated Price using Cost Method

2,460,000

Land Ratio

61.5%

Building Ratio

31.1%

FF&E Ratio

7.4%
Adopted the value of profits in consideration of the analyses of regional and other individual

Other Points to be Noted for Appraisal by Appraisal Firm

factors, the characteristics of the estimated price and its compatibility with the value of profits,
and based on the relative liability of the materials used in each method, by reference to thecost approach.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

48

D97: Art Hotel Kokura New Tagawa
Type and Location of Specified Assets, etc.
Type of Specified Assets

Trust Beneficiary Right

Date of Planned Acquisition

July 31, 2024

Planned Purchase Price

JPY 4,672 million

Appraisal Value

JPY 4,720 million

Appraisal Firm

Daiwa Real Estate Appraisal Co., Ltd.
(Lot Number)

9-1 Furusemba-machi, Kokurakita-ku, Kitakyushu-shi, Fukuoka, and five other lots

(Address)

3-46 Furusemba-machi, Kokurakita-ku, Kitakyushu-shi, Fukuoka

LocationTransport

Approximately 11 minutes on foot from JR Kokura Station, approximately 3 minutes on foot from Kitakyushu Monorail
Tanga Station
Form of Possession

Ownership

ZoningLot Area

7,973.67 m2

Form of Possession

Ownership

Purpose of Use

Hotel

Total Floor Area

14,055.23m2

Construction Date

April 10, 1973 (Main Wing)
November 20, 1997 (Annex)

Structure/No. ofReinforced concrete, Steel flame structure with flat roof, Copper plate, Glass plate roof, 1

Storiesbasement, 9 stories

Renovation Date

February 2019-October 2019Land

Building

Building

Commercial Area
Coverage

Ratio/Floor Area Ratio

Trustee

SMBC Trust Bank Ltd.

Trust Period

From: December 20, 2018; Until: July 30, 2034

Creation of Security Interest

None

80% / 400%

Lease Overview (as of May 31, 2024)
Total No. of Tenant (s)1Number of Guest Rooms

Leasable Area

14,055.23 m2

Lease Area

14,055.23 m2

Occupancy Rate

100.0%

90 rooms (Note 1)(T:31, D:46, O:13)

Security Deposit/Guarantee

-

Money
GOP (per month)

JPY 19,237 thousand

Overview of Lease Agreement
TenantMYSTAYS HOTEL MANAGEMENT Co., Ltd.

Type of Contract

Fixed rent plus variable rent type

Term

From: July 31, 2024; Until: July 30, 2034
Sum of variable rent corresponding to GOP from the operation of the hotel by the tenant and the fixed rent (JPY

Determination of rent of lease
contract

90.6 million per year (Jan.: JPY 1.3 million per month / Feb.: JPY 3.7 million per month / Mar.: JPY 6.8 million permonth / Apr.: JPY 3.1 million per month / May: JPY 6.9 million per month / Jun.: JPY 5.9 million per month / Jul.:JPY 1.3 million per month / Aug.: JPY 7.0 million per month / Sep.: JPY 7.4 million per month / Oct.: JPY 13.8
million per month / Nov.: JPY 20.2 million per month / Dec.: JPY 13.2 million per month)) (Note 2)

Management Services Fee
Security Deposit/Guarantee
Money
Renewal Upon Expiration

Not disclosed, as tenant’s consent has not been obtained for disclosure.
The contract is a Fixed Term Building Lease, therefore the contract will terminate at the expiration of theThis English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

49lease term unless the contract is renewed.
Rent Revision

Rent cannot be revised during the lease term.

Early Termination

Termination prior to the expiration of the lease term is not permitted.

Other Special Matters-

Overview of Building Conditions Survey ReportCompany Conducting Survey

Tokio Marine dR Co., Ltd.

Short term Repair Costs (within-

1 year)Long term Repair Costs (in 12
years)

Date of Report
Replacement Price

June 2024
JPY 5,335,700 thousand

JPY 669,206 thousand

Overview of PML reportCompany Conducting Survey

Tokio Marine dR Co., Ltd.

Probable Maximum Loss (PML)

Date of Report

June 2024

3.3%

Area Characteristic
This property is located approximately 11-minute away on foot from JR Kokura Station, approximately 3-minute away on foot from Kitakyushu Monorail
Tanga Station. It is located approximately 40-minute away by car from Kitakyushu Airport. In addition, guests can easily visit both Fukuoka and Yamaguchi,
accessible to Karato market within 30 minutes by car, which means that it is located in a good hub for business and tourism.
The 130-year-old Chisen Kaiyu style garden (which has approximately 700-tsubo of land) in this property is a symbol of the hotel, making garden weddings
popular here. The rooms are all different in style with European furnishings. All rooms are fully equipped with a cypress bath, and it is a well-known traditionaland full service hotel in Kitakyusyu City, with a variety of Japanese and Western-style guest rooms, that is fully constructed with consideration for beauty ofTokonoma (alcoves) and lightings, including a blend of European elegance and the appearance of a 100-year-old Japanese garden.
Special Notes
Some part of its boundary of the property has not yet been demarcated in writing.
Part of the land of the real estate (approximately 672m2) is used for the guestroom building designated as a registered tangible cultural property (Suisui
Garden Ryokan). This guestroom building is not included in the scope of INV’s acquisition, and will be acquired by MHM, along with the INV’s acquisitionof this property. The land of the real estate includes a setback (a part which is deemed as a road pursuant to the provisions of Article 42, Paragraph 2 of
the Building Standards Act) of approximately 36.0m2.
(Note 1) 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. MHM is planning to acquire the building, however, it is agreed
with MHM that INV will collect the profits generated from the operation of the "Suisui Garden Ryokan”, as a part of rent assuming that INV willbear the costs of repairing the building.
(Note 2) Variable rent is calculated by subtracting the fixed rent from the GOP during 6 months of the calculation period of variable rent. Yet in the case itis smaller than zero, the variable rent is zero.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

50

D97: Art Hotel Kokura New Tagawa
Income and Expenditures, Etc.
Operating Period

Jan. 1, 2022-Dec. 31, 2022

Jan. 1, 2023-Dec. 31, 2023

GOP (= (1) – (2))

JPY -33,830 thousand

JPY 103,301 thousand--

JPY 20,300 thousand

JPY 19,975 thousand

JPY 1,030 thousand

JPY 1,030 thousand

JPY 700 thousand

JPY 700 thousand

JPY -55,861 thousand

JPY 81,595 thousand

JPY 856,300 thousand

JPY 1,188,591 thousand

Room Income

JPY 220,918 thousand

JPY 325,475 thousand

Other Income

JPY 635,382 thousand

JPY 863,116 thousand

JPY 890,130 thousand

JPY 1,085,290 thousand

ADR

JPY 8,257

JPY 10,990

RevPARJPY 6,508

JPY 9,588

78.8%

87.2%

-

8.7%

Daily/ Weekly/ Monthly

100.0% / 0.0% / 0.0%

100.0% / 0.0% / 0.0%

Overseas Sales Share

11.2%

21.8%

a. Land Lease Fees
b. Taxes and Public Duesc. Non-life Insurance Premiumsd. Trust FeesNOI (= GOP – [a. + b. + c. + d.])(1) Sales(2) Operating Costs (not including a.
through d. above)(Reference)

Room Occupancy Rate
GOP Ratio＜Hotel KPI＞
ActualAppraisal (Note 3)

Room Occupancy Rate (Note 1)

87.4%

Room Occupancy Rate

90.0%

ADR (Note 1)

JPY 11,151

ADR

JPY 13,000

RevPAR (Note 1)

JPY 9,743

RevPARJPY 11,700

NOI (Note 2)

JPY 116 million

NOI

JPY 326 million(Note 1) Average of recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 2) NOI is the net operating income (actual) for recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 3) Numbers are from appraisal report as of June 1, 2024. They are assumed numbers for the normal year assessed by each appraisal firm undercertain preconditions, and it is not guaranteed to be achieved in the future, and it may actually change significantly.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

51D97: Art Hotel Kokura New Tagawa
Summary of Real Estate Appraisal Report
Appraisal Value

JPY 4,720 million

Appraisal Firm

Daiwa Real Estate Appraisal Co., Ltd.

Time of Valuation

June 1, 2024
Item

1. Value of Profits using the Profit Capitalization Method(1) Direct Capitalization Method

Contents

Overview(JPY thousand)
4,720,000
4,860,000(I) Operating Revenue [(a)-(b)]373,559(a) Total Potential Revenue

373,559(b) Vacant Room Losses, etc.
(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)]Standardized estimated rent income is posted taking into accountthe medium- to long-term competitiveness of the property.

47,419(c) Maintenance and Management Costs-(d) Utility Costs-(e) Repair Costs

22,387

Annual average of Repair Costs on the engineering report isposted.
Property Management Fee as a general monitoring fee for the
management of the tenant is posted based on the level of Property(f) Property Management Fee

360

Management Fee of comparable assets, though property
management fee is not included in the planned securitization
scheme.

(g) Tenant Solicitation Expenses-(h) Taxes and Public Dues

19,366(i) Non-life Insurance Premiums

2,667(j) Other Costs(III) Net Operating Income [(I)-(II)](k) One-time Investment Gains

2,638(m) FF&E Reserve

28,823(2) DCF Methodof comparable assets.

34,620Capitalization Yield

0.05% of Replacement Price is posted.
Reserve expense is posted based on the level of reserve expense

326,139(l) Capital Improvements and Expenses(IV) Net Income [(III)+(k)-(l)-(m)]Based on the historical data of 2024, taking into account the trendsof the land prices and level of the burden.

Based on average annual 12-year renewal fee in the engineering
report, using that of comparable assets as a reference.
Based on the level of FF&E Reserve of comparable assets.

262,695
5.4%

Mainly based on the comparison with the transactions of comparable
assets, interviewing investors as a reference.

4,660,000
Based on both the comparison with the transactions of comparable

Discount Rate

5.2%

assets and the method adding the individuality of the property to theyield of financial asset. Interviewed investors as a reference.
Based on the transaction yields, taking into account the forecast for

Final Capitalization Yield

5.6%

investment yields, the risks of the property as a subject ofinvestment, general forecasts for economic growth, the trends ofproperty prices and rents.

2. Estimated Price using Cost Method

3,120,000

Land Ratio

76.0%

Building Ratio

23.5%

FF&E Ratio

0.5%This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

52

Determined the price of the property based on the value of profits using the profit
capitalization method, upon determination that the current use would be the best effective
Other Points to be Noted for Appraisal by Appraisal Firm

option in consideration of competitiveness of the property within the market area, byreference to the estimated price using the cost method since investors tend to put focus on
profitability of the property and investment returns.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

53D98: Art Hotel Miyazaki Sky Tower
Type and Location of Specified Assets, etc.
Type of Specified Assets

Trust Beneficiary Right

Date of Planned Acquisition

July 31, 2024

Planned Purchase Price

JPY 3,821 million

Appraisal Value

JPY 3,860 million

Appraisal Firm

Japan Real Estate Institute(Lot Number)

2-13 Takachiho-dori, Miyazaki-shi, Miyazaki, and three other lots

(Address)

2-1-26 Takachiho-dori, Miyazaki-shi, Miyazaki

LocationTransport

Approximately 5 minutes on foot from Miyazaki Station (JR Nippo Main Line and other lines)
Form of Possession

Ownership

ZoningLot Area

1,266.85 m2

Form of Possession

Ownership

Purpose of Use

Hotel

Total Floor Area

8,766.25 m2

Construction Date

September 7, 1991

Structure/No. of

Steel frame and steel framed reinforced concrete, Reinforced concrete structure with flat

Storiesroof, 3 basements, 18 stories

Renovation Date

March 2021-July 2021, November 2023-December 2023

Land

Building

Building

Commercial area
Coverage

Ratio/Floor Area Ratio

Trustee

SMBC Trust Bank Ltd.

Trust Period

From: March 2, 2020; Until: July 30, 2034

Creation of Security Interest

None

80% / 600%

Lease Overview (as of May 31, 2024)
Total No. of Tenant (s)1Number of Guest Rooms

Leasable Area

8,766.25 m2

Lease Area

8,766.25 m2

Occupancy Rate

135 rooms(S:1, T:54, D:56, O:24)

Security Deposit/Guarantee

-

Money

100.0%GOP (per month)

JPY 17,679 thousand

Overview of Lease Agreement
TenantMYSTAYS HOTEL MANAGEMENT Co., Ltd.

Type of Contract

Fixed rent plus variable rent type

Term

From: July 31, 2024; Until: July 30, 2034
Sum of variable rent corresponding to GOP from the operation of the hotel by the tenant, and the fixed rent (JPY

Determination of rent of lease
contract

71.7 million per year (Jan.: JPY 5.2 million per month / Feb.: JPY 10.2 million per month / Mar.: JPY 6.6 million permonth / Apr.: JPY 4.6 million per month / May: JPY 6.4 million per month / Jun.: JPY 4.8 million per month / Jul.:JPY 4.4 million per month / Aug.: JPY 6.6 million per month / Sep.: JPY 5.0 million per month / Oct.: JPY 6.0 million
per month / Nov.: JPY 8.0 million per month / Dec.: JPY 3.9 million per month)) (Note 1)

Management Services Fee
Security Deposit/Guarantee
Money
Renewal Upon Expiration

Not disclosed, as tenant's consent has not been obtained for disclosure.
The contract is a Fixed Term Building Lease, therefore the contract will terminate at the expiration of thelease term unless the contract is renewed.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

54Rent Revision

Rent cannot be revised during the lease term.

Early Termination

Termination prior to the expiration of the lease term is not permitted.

Other Special Matters-

Overview of Building Conditions Survey ReportCompany Conducting Survey
Short term Repair Costs (within
1 year)Long term Repair Costs (in 12
years)

Tokio Marine dR Co., Ltd.

Date of Report-

Replacement Price

June 2024
JPY 3,456,400 thousand

JPY 411,619 thousand

Overview of PML reportCompany Conducting Survey
Probable Maximum Loss (PML)

Tokio Marine dR Co., Ltd.

Date of Report

June 2024

4.8%

Area Characteristic
This property is located in Miyazaki prefecture, and has a good access to business sites such as Miyazaki’s prefectural government office and city hall, as
well as to tourist sites. It is located approximately 5-minute away on foot from JR Miyazaki Station, approximately 20-minute away by car from Miyazaki
Airport. This property is the tallest building in downtown Miyazaki, and is a full service hotel with a banquet which accommodates up to 260 people and triple
and fourth (quad) rooms in addition to twin rooms, which serves various demand such as domestic leisure and inbound. As the climate in Miyazaki is warmand stable throughout year, it is chosen as a camp site of professional baseball teams and J-league soccer teams.
Special Notes
None(Note 1) Variable rent is calculated by subtracting the fixed rent from the GOP during 6 months of the calculation period of variable rent. Yet in the case itis smaller than zero, the variable rent is zero.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

55

D98: Art Hotel Miyazaki Sky Tower
Income and Expenditures, Etc.
Operating Period

Jan. 1, 2022-Dec. 31, 2022

Jan. 1, 2023-Dec. 31, 2023

GOP (= (1) – (2))

JPY 93,966 thousand

JPY 186,635 thousand--

JPY 11,346 thousand

JPY 11,823 thousandc. Non-life Insurance Premiums

JPY 676 thousand

JPY 676 thousandd. Trust Fees

JPY 700 thousand

JPY 700 thousand

JPY 81,244 thousand

JPY 173,435 thousand

JPY 519,015 thousand

JPY 676,671 thousand

Room Income

JPY 311,031 thousand

JPY 419,360 thousand

Other Income

JPY 207,984 thousand

JPY 257,310 thousand

JPY 425,049 thousand

JPY 490,035 thousand

ADR

JPY 9,434

JPY 10,649

RevPARJPY 6,504

JPY 8,763

Room Occupancy Rate

68.9%

82.3%

GOP Ratio

18.1%

27.6%

Daily/ Weekly/ Monthly

100.0% / 0.0% / 0.0%

100.0% / 0.0% / 0.0%

Overseas Sales Share

13.0%

15.2%

a. Land Lease Fees
b. Taxes and Public DuesNOI (– GOP – [a. + b. + c. + d.])(1) Sales(2) Operating Costs (not including a.
through d. above)(Reference)＜Hotel KPI＞
ActualAppraisal (Note 3)

Room Occupancy Rate (Note 1)

80.4%

Room Occupancy Rate

85.0%

ADR (Note 1)

JPY 11,073

ADR

JPY 12,500

RevPAR (Note 1)

JPY 8,901

RevPARJPY 10,625

NOI (Note 2)

JPY 198 million

NOI

JPY 271 million(Note 1) Average of recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 2) NOI is the net operating income (actual) for recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 3) Numbers are from appraisal report as of June 1, 2024. They are assumed numbers for the normal year assessed by each appraisal firm undercertain preconditions, and it is not guaranteed to be achieved in the future, and it may actually change significantly.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

56D98: Art Hotel Miyazaki Sky Tower
Summary of Real Estate Appraisal Report
Appraisal Value

JPY 3,860 million

Appraisal Firm

Japan Real Estate InstituteTime of Valuation

June 1, 2024
Item

1. Value of Profits using the Profit Capitalization Method(1) Direct Capitalization Method(I) Operating Revenue [(a)-(b)]Contents

Overview(JPY thousand)
3,860,000
3,900,000
293,828

Room Rental Income is estimated based on the planned fixed-term(a) Total Potential Revenue

293,828lease agreement and management outsourcing agreement,
historical data of the hotel, comparable assets and project mediumto long-term rents.

(b) Vacant Room Losses, etc.
(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)]22,233(c) Maintenance and Management Costs-(d) Utility Costs

Repair Costs are posted based on the management operation(e) Repair Costs

10,291plans, the level of repair costs of comparable assets, and annual
average of repair costs in the engineering report of comparable
assets.

(f) Property Management Fee-(g) Tenant Solicitation Expenses-(h) Taxes and Public Dues(i) Non-life Insurance Premiums(j) Other Costs(III) Net Operating Income [(I)-(II)](k) One-time Investment Gains

11,332610

Based on standard taxable value as stated in the documents
relating to tax rate adjustments.
Based on insurance premiums of comparable assets.

271,595
Based on capital expenditure levels of similar properties, the building(l) Capital Improvements and Expenses

24,011(m) FF&E Reserve

17,304age, the yearly average amount of repair and renewal expenses inengineering reports, etc.

(IV) Net Income [(III)+(k)-(l)-(m)]Based on the level of FF&E Reserve of comparable assets.

230,280
Based on the benchmark yields for each district, taking into accountthe purpose of use of the property and the conditions on the business

Capitalization Yield

5.9%

characteristics, and based on the conditions on the location taking
into account the uncertainty in the future and transaction yields
related to similar properties.

(2) DCF Method
Discount Rate

3,820,000
5.6%

Based on the transaction yields of similar properties, taking into
account the forecast and the individuality of the property.
Based on the transaction yields, taking into account the forecast for

Final Capitalization Yield

6.0%

investment yields, the risks of the property as a subject ofinvestment, general forecasts for economic growth, the trends ofproperty prices and rents.

2. Estimated Price using Cost Method

1,570,000

Land Ratio

27.6%

Building Ratio

65.2%

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

57

FF&E Ratio

7.2%
Judged that income approach value truly replicates the price formation process from an

Other Points to be Noted for Appraisal by Appraisal Firm

income perspective, is more persuasive and adopted the Income Price, with the cost
approach value as a reference.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

58D99: Art Hotel Kagoshima
Type and Location of Specified Assets, etc.
Type of Specified Assets

Trust Beneficiary Right

Date of Planned Acquisition

July 31, 2024

Planned Purchase Price

JPY 3,395 million

Appraisal Value

JPY 3,430 million

Appraisal Firm

The Tanizawa Sōgō Appraisal Co., Ltd.
(Lot Number)

22 Kamoike Shin-machi, Kagoshima-shi, Kagoshima(Address)

22-1 Kamoike Shin-machi, Kagoshima-shi, Kagoshima

LocationTransport

Approximately 12 minutes by car from Kagoshima-Chuo Station (JR Kagoshima Main Line and other lines)
Form of Possession

Ownership

ZoningLot Area

6,561.28 m2

Form of Possession

Ownership

Purpose of Use

Hotel

Total Floor Area

14,854.67 m2

Construction Date

September 5, 1981

Land

Building

Structure/No. of
StoriesRenovation Date

Building

Neighborhood Commercial Area
Coverage

Ratio/Floor Area Ratio

60% / 300%

Steel framed reinforced concrete structure with flat roof, 13 stories

January 2020-October 2020, June 2023-July 2023

TrusteeMizuho Trust & Banking Co., Ltd.

Trust Period

From: October 1, 2004; Until: July 30, 2034

Creation of Security Interest

None

Lease Overview (as of May 31, 2024)
Total No. of Tenant (s)1Number of Guest Rooms

Leasable Area

14,854.67 m2

Lease Area

14,854.67 m2

Occupancy Rate

208 rooms(S:32, T:72, D:40, O:64)

Security Deposit/Guarantee

-

Money

100.0%GOP (per month)

JPY 19,109 thousand

Overview of Lease Agreement
TenantMYSTAYS HOTEL MANAGEMENT Co., Ltd.

Type of Contract

Fixed rent plus variable rent type

Term

From: July 31, 2024; Until: July 30, 2034
Sum of variable rent corresponding to GOP from the operation of the hotel by the tenant, and the fixed rent (JPY

Determination of rent of lease
contract

57.3 million per year (Jan.: JPY 1.5 million per month / Feb.: JPY 4.3 million per month / Mar.: JPY 5.8 million permonth / Apr.: JPY 3.0 million per month / May: JPY 5.9 million per month / Jun.: JPY 3.3 million per month / Jul.:JPY 2.0 million per month / Aug.: JPY 10.5 million per month / Sep.: JPY 3.7 million per month / Oct.: JPY 6.0
million per month / Nov.: JPY 8.4 million per month / Dec.: JPY 2.9 million per month)) (Note 1)

Management Services Fee
Security Deposit/Guarantee
Money
Renewal Upon Expiration

Not disclosed, as tenant’s consent has not been obtained for disclosure.
The contract is a Fixed Term Building Lease, therefore the contract will terminate at the expiration of thelease term unless the contract is renewed.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

59Rent Revision

Rent cannot be revised during the lease term.

Early Termination

Termination prior to the expiration of the lease term is not permitted.

Other Special Matters-

Overview of Building Conditions Survey ReportCompany Conducting Survey

Tokio Marine dR Co., Ltd.

Short term Repair Costs (within-

1 year)Long term Repair Costs (in 12
years)

Date of Report
Replacement Price

June 2024
JPY 4,620,600 thousand

JPY 682,622 thousand

Overview of PML reportCompany Conducting Survey

Tokio Marine dR Co., Ltd.

Probable Maximum Loss (PML)

Date of Report

June 2024

13.0%

Area Characteristic
This property is located approximately 12-minute away by car from JR Kagoshima-Chuo Station. Its location next to Kagoshima Bay provides a close viewof Sakurajima.
More than 70% of guest rooms (out of 208 rooms) can appreciate the majestic view of Sakurajima, a world-renowned active volcano and a symbol ofKagoshima, and 30% of guest room can accommodate groups of three or more people. It has an outdoor pool open during summer that is a rare in
Kagoshima, which makes the hotel attractive for family guests.
It is a full service hotel with banquet space overlooking Sakurajima, that can accommodate a variety of events and fulfill a variety of travel demand such as
for business, leisure, and group tours.
Special Notes
None(Note 1) Variable rent is calculated by subtracting the fixed rent from the GOP during 6 months of the calculation period of variable rent. Yet in the case itis smaller than zero, the variable rent is zero.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

60D99: Art Hotel Kagoshima
Income and Expenditures, Etc.
Operating Period

Jan. 1, 2022-Dec. 31, 2022

Jan. 1, 2023-Dec–. 31, 2023

GOP (= (1) – (2))

JPY 100,279 thousand

JPY 180,182 thousand－－

JPY 25,567 thousand

JPY 25,585 thousand

JPY 888 thousand

JPY 888 thousandd. Trust Fees

JPY 1,000 thousand

JPY 1,000 thousand

NOI (= GOP – [a. + b. + c. + d.])JPY 72,823 thousand

JPY 152,708 thousand

JPY 720,520 thousand

JPY 886,837 thousand

Room Income

JPY 468,530 thousand

JPY 600,487 thousand

Other Income

JPY 251,989 thousand

JPY 286,349 thousand

JPY 620,241 thousand

JPY 706,654 thousand

ADR

JPY 9,501

JPY 11,337

RevPARJPY 6,171

JPY 7,909

Room Occupancy Rate

65.0%

69.8%

GOP Ratio

13.9%

20.3%

Daily/ Weekly/ Monthly

100.0% / 0.0% / 0.0%

100.0% / 0.0% / 0.0%

Overseas Sales Share

10.2%

12.1%

a. Land Lease Fees
b. Taxes and Public Duesc. Non-life Insurance Premiums(1) Sales(2) Operating Costs (not including a.
through d. above)(Reference)＜Hotel KPI＞
ActualAppraisal (Note 3)

Room Occupancy Rate (Note 1)

70.8%

Room Occupancy Rate

82.4%

ADR (Note 1)

JPY 10,641

ADR

JPY 12,200

RevPAR (Note 1)

JPY 7,533

RevPARJPY 10,053

NOI (Note 2)

JPY 140 million

NOI

JPY 257 million(Note 1) Average of recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 2) NOI is the net operating income (actual) for recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 3) Numbers are from appraisal report as of June 1, 2024. They are assumed numbers for the normal year assessed by each appraisal firm undercertain preconditions, and it is not guaranteed to be achieved in the future, and it may actually change significantly.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

61D99: Art Hotel Kagoshima
Summary of Real Estate Appraisal Report
Appraisal Value

JPY 3,430 million

Appraisal Firm

The Tanizawa Sōgō Appraisal Co., Ltd.

Time of Valuation

June 1, 2024
Item

1. Value of Profits using the Profit Capitalization Method(1) Direct Capitalization Method

Contents

Overview(JPY thousand)
3,430,000
3,460,000(I) Operating Revenue [(a)-(b)]303,994(a) Total Potential Revenue

303,994(b) Vacant Room Losses, etc.
(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)]Rent income is reported with GOP and variable rent calculated
based on the historical data, projection, market report, and etc.

46,248(c) Maintenance and Management Costs-(d) Utility Costs

Expense based on engineering report, similar transactions, using(e) Repair Costs

20,790

Basic Directive on the Corporation Tax Act as a reference, isreported with the following assignment: Repair Costs : Capital
Improvements and Expenses=3:7.

(f) Property Management Fee-(g) Tenant Solicitation Expenses-(h) Taxes and Public Dues

24,230

Historical databased on the taxation document in FY2024.

(i) Non-life Insurance Premiums

924

Based on the Non-life Insurance Premiums of comparable assets.

(j) Other Costs

303

0.1% of the operating revenue is reported.

(III) Net Operating Income [(I)-(II)](k) One-time Investment Gains

257,745
13
Expense based on engineering report, similar transactions, using(l) Capital Improvements and Expenses

51,282

Basic Directive on the Corporation Tax Act as a reference, isreported with the following assignment: Repair Costs : Capital
Improvements and Expenses=3:7(m) FF&E Reserve(IV) Net Income [(III)+(k)-(l)-(m)]19,553

1.5% of the total revenue (3rd year of DCF method) is reported,using similar transactions as a reference.

186,923
Calculated based on the comparison among the multiple similar

Capitalization Yield

5.4%

transactions in the similar areas in close or the same demand areas,taking into account the forecast of net income trends.

(2) DCF Method

3,410,000

Discount Rate

5.3%

Final Capitalization Yield

5.4%

2. Estimated Price using Cost Method

account the individuality of the property.
Based on the Capitalization yield taking into account the uncertainty.

3,670,000

Land Ratio

76.5%

Building Ratio

22.9%

FF&E Ratio

Based on the investment yield of comparable assets, taking into

0.6%
Adopted the appraisal value determined using the income capitalization method, after

Other Points to be Noted for Appraisal by Appraisal Firm

considering recent economic environment, especially real estate market trend andappropriateness of using data, pricing rule, relationship between unit price and gross price,with the cost approach value as a reference.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

62D100: Kamenoi Hotel Hikone
Type and Location of Specified Assets, etc.
Type of Specified Assets

Trust Beneficiary Right

Date of Planned Acquisition

July 31, 2024

Planned Purchase Price

JPY 2,603 million

Appraisal Value

JPY 2,630 million

Appraisal Firm

The Tanizawa Sōgō Appraisal Co., Ltd.
(Lot Number)

3759 Oguro, Matsubara-cho, Hikone-shi, Shiga(Address)-

LocationTransport

Approximately 7 minutes by car from Hikone Station (JR Tokaido Main Line and other line)
Form of Possession

Ownership

ZoningLot Area

10,649.92 m2

Form of Possession

Ownership

Purpose of Use

Resort facility (Note 1)

Total Floor Area

6,060.87 m2

Construction Date

December 20, 1969

Land

Building

Structure/No. of
StoriesRenovation Date

Building

Commercial Area
Coverage

Ratio/Floor Area Ratio

80% / 400%

Reinforced concrete structure with flat roof, 7 stories (Note 2)

November 2022-March 2023

Trustee

Mitsubishi UFJ Trust and Banking Corporation

Trust Period

From: April 5, 2022; Until: July 30, 2034

Creation of Security Interest

None

Lease Overview (as of May 31, 2024)
Total No. of Tenant (s)1Number of Guest Rooms

Leasable Area

6,060.87 m2

Lease Area

6,060.87 m2

Occupancy Rate

48 rooms(T:3, D:2, O:43)

Security Deposit/Guarantee

-

Money

100.0%GOP (per month)

JPY 20,506 thousand

Overview of Lease Agreement
TenantMYSTAYS HOTEL MANAGEMENT Co., Ltd.

Type of Contract

Fixed rent plus variable rent type

Term

From: July 31, 2024; Until: July 30, 2034
Sum of variable rent corresponding to GOP from the operation of the hotel by the tenant, and the fixed rent (JPY

Determination of rent of lease
contract

45.3 million per year (Jan.: JPY 0.4 million per month / Feb.: JPY 1.6 million per month / Mar.: JPY 4.8 million permonth / Apr.: JPY 4.7 million per month / May: JPY 5.9 million per month / Jun.: JPY 3.1 million per month / Jul.:JPY 2.2 million per month / Aug.: JPY 7.4 million per month / Sep.: JPY 1.9 million per month / Oct.: JPY 4.4 million
per month / Nov.: JPY 6.3 million per month / Dec.: JPY 2.6 million per month)) (Note3)

Management Services Fee
Security Deposit/Guarantee
Money
Renewal Upon Expiration

Not disclosed, as tenant's consent has not been obtained for disclosure.
The contract is a Fixed Term Building Lease, therefore the contract will terminate at the expiration of thelease term unless the contract is renewed.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

63Rent Revision

Rent cannot be revised during the lease term.

Early Termination

Termination prior to the expiration of the lease term is not permitted.

Other Special Matters-

Overview of Building Conditions Survey ReportCompany Conducting Survey

Tokio Marine dR Co., Ltd.

Short term Repair Costs (within-

1 year)Long term Repair Costs (in 12
years)

Date of Report
Replacement Price

June 2024
JPY 2,314,500 thousand

JPY 339,812 thousand

Overview of PML reportCompany Conducting Survey

Tokio Marine dR Co., Ltd.

Probable Maximum Loss (PML)

Date of Report

June 2024

17.7%

Area Characteristic
This property is located approximately 7-minute away from JR Hikone Station on JR Tokaido Main Line, with a free shuttle bus from Hikone Station. Locatedright next to Lake Biwa, the biggest lake in Japan, every room in the hotel has a panoramic view of Lake Biwa. It is located approximately 15 minutes by car
to Hikone Castle, one of 12 surviving castles currently being worked on to being inscribed on the World Heritage List.
It is a resort hotel that caters to a variety of travel demand, with a hot spring bath overlooking Lake Biwa on the sixth floor, banquets for parties of group
guests, meetings, and training functions. Further, surrounded by great nature, such as Lake Biwa and Suzuka Mountains, guests can enjoy the cityscape of
Hikone Castle and historic buildings and activities at Lake Biwa.
Special Notes
The boundary of the property has not yet been demarcated in writing.
The land of the real estate includes a portion provided for use as a road (a part which is deemed as a road pursuant to the provisions of Article 42,
Paragraph 1, Item 5 of the Building Standards Act) of approximately 194m2.
(Note 1) To be changed to “Ryokan”, at the time of acquisition.
(Note 2) There are attached buildings including a boarding house, 2 propane vaults, a storage area and a pumping room (total of 473.81 m2), of which the
propane vaults (3.44 m2), storage area (7.52 m2) and pumping room (7.20 m2) are unregistered, and it has been agreed with the seller to register
the unregistered ancillary buildings at the responsibility and expense of the Seller.
(Note 3) Variable rent is calculated by subtracting the fixed rent from the GOP during 6 months of the calculation period of variable rent. Yet in the case itis smaller than zero, the variable rent is zero.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

64D100: Kamenoi Hotel Hikone
Income and Expenditures, Etc.
Operating Period

Jul. 1, 2022-Dec. 31, 2022 (Note 1)

Jan. 1, 2023–-Dec 31, 2023

GOP (= (1) - (2))

JPY -5,009 thousand

JPY 79,806 thousand--

JPY 4,452 thousand

JPY 8,452 thousandc. Non-life Insurance Premiums

JPY 229 thousand

JPY 454 thousandd. Trust Fees

JPY 504 thousand

JPY 1,000 thousand

JPY -10,194 thousand

JPY 69,899 thousand

JPY 243,752 thousand

JPY 634,124 thousand

Room Income

JPY 101,402 thousand

JPY 251,096 thousand

Other Income

JPY 142,350 thousand

JPY 383,028 thousand

JPY 248,762 thousand

JPY 554,318 thousand

ADR

JPY 17,468

JPY 18,950

RevPARJPY 13,441

JPY 14,866

76.9%

78.4%

-

12.6%

Daily/ Weekly/ Monthly

100.0% / 0.0% / 0.0%

100.0% / 0.0% / 0.0%

Overseas Sales Share

1.4%

2.2%

a. Land Lease Fees
b. Taxes and Public DuesNOI (= GOP - [a. + b. + c. + d.])(1) Sales(2) Operating Costs (not including a.
through d. above)(Reference)

Room Occupancy Rate
GOP Ratio(Note 1) Numbers are based on data after Jul. 1, 2022, when re-opened after rebranding.

＜Hotel KPI＞
ActualAppraisal (Note 3)

Room Occupancy Rate (Note 1)

82.5%

Room Occupancy Rate

88.0%

ADR (Note 1)

JPY 19,044

ADR

JPY 21,350

RevPAR (Note 1)

JPY 15,717

RevPARJPY 18,788

NOI (Note 2)

JPY 116 million

NOI

JPY 179 million(Note 1) Average of recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 2) NOI is the net operating income (actual) for recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 3) Numbers are from appraisal report as of June 1, 2024. They are assumed numbers for the normal year assessed by each appraisal firm undercertain preconditions, and it is not guaranteed to be achieved in the future, and it may actually change significantly.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

65D100: Kamenoi Hotel Hikone
Summary of Real Estate Appraisal Report
Appraisal Value

JPY 2,630 million

Appraisal Firm

The Tanizawa Sōgō Appraisal Co., Ltd.

Time of Valuation

June 1, 2024
Item

1. Value of Profits using the Profit Capitalization Method(1) Direct Capitalization Method

Contents

Overview(JPY thousand)
2,630,000
2,660,000(I) Operating Revenue [(a)-(b)]197,343(a) Total Potential Revenue

197,343(b) Vacant Room Losses, etc.
(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)]Rent income is reported with GOP and variable rent calculated
based on the historical data, projection, market report, and etc.

18,105(c) Maintenance and Management Costs-(d) Utility Costs

Expense based on engineering report, similar transactions, using(e) Repair Costs

9,256

Basic Directive on the Corporation Tax Act as a reference, isreported with the following assignment: Repair Costs : Capital
Improvements and Expenses=3:7.

(f) Property Management Fee-(g) Tenant Solicitation Expenses-(h) Taxes and Public Dues

8,189

Historical databased on the taxation document in FY2024.

(i) Non-life Insurance Premiums

462

Based on the Non-life Insurance Premiums of comparable assets.

(j) Other Costs

197

0.1% of the operating revenue is reported.

(III) Net Operating Income [(I)-(II)](k) One-time Investment Gains

179,237
Expense based on engineering report, similar transactions, using(l) Capital Improvements and Expenses

19,669Basic Directive on the Corporation Tax Act as a reference, isreported with the following assignment: Repair Costs : Capital
Improvements and Expenses=3:7.

(m) FF&E Reserve(IV) Net Income [(III)+(k)-(l)-(m)]8,0751.0% of the total revenue (3rd year of DCF method) is reported,using similar transactions as a reference.

151,493Calculated based on the comparison among the multiple similar

Capitalization Yield

5.7%

transactions in the similar areas in close or the same demand areas,taking into account the forecast of net income trends.

(2) DCF Method

2,620,000

Discount Rate

5.7%

Final Capitalization Yield

5.8%

2. Estimated Price using Cost Method

account the individuality of the property.
Based on the Capitalization yield taking into account the uncertainty.

2,580,000

Land Ratio

70.4%

Building Ratio

26.7%

FF&E Ratio

Based on the investment yield of comparable assets, taking into

2.9%
Adopted the appraisal value determined using the income capitalization method, after

Other Points to be Noted for Appraisal by Appraisal Firm

considering recent economic environment, especially real estate market trend andappropriateness of using data, pricing rule, relationship between unit price and gross price,with the cost approach value as a reference.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

66D101: Kamenoi Hotel Nara
Type and Location of Specified Assets, etc.
Type of Specified Assets

Trust Beneficiary Right

Date of Planned Acquisition

July 31, 2024

Planned Purchase Price

JPY 2,029 million

Appraisal Value

JPY 2,050 million

Appraisal Firm

Japan Real Estate Institute(Lot Number)

3-135-2 Nijo-cho, Nara-shi, Nara, and one other lot(Address)

3-9-1 Nijo-cho, Nara-shi, Nara

LocationTransport

Approximately 11 minutes on foot from Yamato-Saidaiji Station (Kintetsu Nara Line and other line)
Form of Possession

Ownership

ZoningLot Area

12,004.12 m2

Form of Possession

Ownership

Purpose of Use

Ryokan5,041.02 m2

Construction Date

September 10, 1966

Land

Total Floor Area
(Note 1)
Building

Structure/No. of
Stories (Note 1)
Renovation Date

Building

Not specified
Coverage

Ratio/Floor Area Ratio

60% / 200%

Reinforced concrete structure with flat roof, 5 stories

October 2015-March 2016

Trustee

Mitsubishi UFJ Trust and Banking Corporation

Trust Period

From: April 5, 2022; Until: July 30, 2034

Creation of Security Interest

None

Lease Overview (as of May 31, 2024)
Total No. of Tenant (s)1Number of Guest Rooms

Leasable Area

5,041.02 m2

Lease Area

5,041.02 m2

Occupancy Rate

42 rooms(T:15, D:2, O:25)

Security Deposit/Guarantee

-

Money

100.0%GOP (per month)

JPY 9,635 thousand

Overview of Lease Agreement
TenantMYSTAYS HOTEL MANAGEMENT Co., Ltd.

Type of Contract

Fixed rent plus variable rent type

Term

From: July 31, 2024; Until: July 30, 2034
Sum of variable rent corresponding to GOP from the operation of the hotel by the tenant, and the fixed rent (JPY

Determination of rent of lease
contract

33.3 million per year (Jan.: JPY 2.4 million per month / Feb.: JPY 1.5 million per month / Mar.: JPY 3.8 million permonth / Apr.: JPY 4.1 million per month / May: JPY 5.0 million per month / Jun.: JPY 2.6 million per month / Jul.: per month / Aug.: JPY 2.0 million per month / Sep.: JPY 1.4 million per month / Oct.: JPY 4.0 million per month /Nov.: JPY 5.4 million per month / Dec.: JPY 1.1 million per month)) (Note 2)

Management Services Fee
Security Deposit/Guarantee
Money
Renewal Upon Expiration

Not disclosed, as tenant’s consent has not been obtained for disclosure.
The contract is a Fixed Term Building Lease, therefore the contract will terminate at the expiration of theThis English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

67lease term unless the contract is renewed.
Rent Revision

Rent cannot be revised during the lease term.

Early Termination

Termination prior to the expiration of the lease term is not permitted.

Other Special Matters-

Overview of Building Conditions Survey ReportCompany Conducting Survey
Short term Repair Costs (within
1 year)Long term Repair Costs (in 12
years)

Tokio Marine dR Co., Ltd.

Date of Report-

Replacement Price

June 2024
JPY 1,971,900 thousand

JPY 175,321 thousand

Overview of PML reportCompany Conducting Survey
Probable Maximum Loss (PML)

Tokio Marine dR Co., Ltd.

Date of Report

June 2024

17.5%

Area Characteristic
This property is in Nara. Nara, known as the oldest capital in Japan, has over 1,000 national treasures and important cultural assets, and many come fromabroad. It is located approximately 11-minute away on foot from Yamato-Saidaiji Station, a terminal station, approximately 5 minutes by car from YamatoSaidaiji Station and approximately 20 minutes by car from JR Nara Station. It is next to Heijo Palace grounds, which is a World Heritage Site and guests canenjoy a view of Heijo Palace and Mt. Wakakusa from the room, accessible to a lot of national treasures and important cultural properties.
There are twin and double rooms, and rooms that have a private bath (of which hot spring water flows from the source) with a view, can meet various
demand including leisure and inbound. It is a resort hotel with a variety of banquet and meeting rooms.
Special Notes
Some part of its boundary of the property has not yet been demarcated in writing.
A part of the land of the property (approximately 1,950m2) is subject to a city planning road (3.3.51 Nishi-Ichibou Oji Line).
(Note 1) There are 6 unregistered ancillary buildings (storehouse garbage collection area and etc, 34.42m2 in total), and it has been agreed with the seller
to register the unregistered ancillary buildings at the responsibility and expense of the Seller.
(Note 2) Variable rent is calculated by subtracting the fixed rent from the GOP during 6 months of the calculation period of variable rent. Yet in the case itis smaller than zero, the variable rent is zero.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

68D101: Kamenoi Hotel Nara
Income and Expenditures, Etc.
Operating Period

Jul. 1, 2022-Dec. 31, 2022 (Note 1)

Jan. 1, 2023-Dec. 31, 2023

GOP (= (1) - (2))

JPY 43,430 thousand

JPY 81,054 thousanda. Land Lease Fees-

b. Taxes and Public Dues-JPY 5,351 thousand

JPY 9,202 thousandc. Non-life Insurance Premiums

JPY 192 thousand

JPY 382 thousandd. Trust Fees

JPY 504 thousand

JPY 1,000 thousand

JPY 37,381 thousand

JPY 70,469 thousand

JPY 277,453 thousand

JPY 540,242 thousand

Room Income

JPY 122,328 thousand

JPY 223,059 thousand

Other Income

JPY 155,125 thousand

JPY 317,182 thousand

JPY 234,023 thousand

JPY 459,187 thousand

ADR

JPY 20,163

JPY 18,500

RevPARJPY 15,829

JPY 14,550

Room Occupancy Rate

78.5%

78.6%

GOP Ratio

15.7%

15.0%

Daily/ Weekly/ Monthly

100.0%/ 0.0%/ 0.0%

100.0%/ 0.0%/ 0.0%

Overseas Sales Share

0.7%

2.8%

NOI (= GOP - [a. + b. + c. + d.])(1) Sales(2) Operating Costs (not including a.
through d. above)(Reference)(Note 1) Numbers are based on data after Jul. 1, 2022, when Kamenoi Hotel Nara re-opened after rebranding.

＜Hotel KPI＞
ActualAppraisal (Note 3)

Room Occupancy Rate (Note 1)

76.8%

Room Occupancy Rate

85.0%

ADR (Note 1)

JPY 17,464

ADR

JPY 20,400

RevPAR (Note 1)

JPY 13,418

RevPARJPY 17,340

NOI (Note 2)

JPY 59 million

NOI

JPY 122 million(Note 1) Average of recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 2) NOI is the net operating income (actual) for recent 12 months as of May 31, 2024 (from June 1, 2023 to May 31, 2024)(Note 3) Numbers are from appraisal report as of June 1, 2024. They are assumed numbers for the normal year assessed by each appraisal firm undercertain preconditions, and it is not guaranteed to be achieved in the future, and it may actually change significantly.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

69D101: Kamenoi Hotel Nara
Summary of Real Estate Appraisal Report
Appraisal Value

JPY 2,050 million

Appraisal Firm

Japan Real Estate InstituteTime of Valuation

June 1, 2024
Item

1. Value of Profits using the Profit Capitalization Method(1) Direct Capitalization Method(I) Operating Revenue [(a)-(b)]Contents

Overview(JPY thousand)
2,050,000
2,050,000
138,102

Room Rental Income is estimated based on the planned fixed-term(a) Total Potential Revenue

138,102lease agreement and management outsourcing agreement,
historical data of the hotel, comparable assets and project mediumto long-term rents.

(b) Vacant Room Losses, etc.
(II) Operating Costs (Expense Rate)[(c)+(d)+(e)+(f)+(g)+(h)+(i)+(j)]15,859(c) Maintenance and Management Costs-(d) Utility Costs

Repair Costs are posted based on the management operation(e) Repair Costs

4,383

plans, the level of repair costs of comparable assets, and annual
average of repair costs in the engineering report of comparable
assets.

(f) Property Management Fee-(g) Tenant Solicitation Expenses-(h) Taxes and Public Dues(i) Non-life Insurance Premiums(j) Other Costs(III) Net Operating Income [(I)-(II)](k) One-time Investment Gains

10,546930

Based on standard taxable value as stated in the documents
relating to tax rate adjustments.
Based on insurance premiums of comparable assets.

122,243
Based on capital expenditure levels of similar properties, the building(l) Capital Improvements and Expenses

10,227(m) FF&E Reserve

3,137

age, the yearly average amount of repair and renewal expenses inengineering reports, etc.

(IV) Net Income [(III)+(k)-(l)-(m)]Based on the level of FF&E Reserve of comparable assets.

108,879
Based on the benchmark yields for each district, taking into accountthe purpose of use of the property and the conditions on the business

Capitalization Yield

5.3%

characteristics, and based on the conditions on the location taking
into account the uncertainty in the future and transaction yields
related to similar properties.

(2) DCF Method
Discount Rate

2,040,000
4.9%

Based on the transaction yields of similar properties, taking into
account the forecast and the individuality of the property.
Based on the transaction yields, taking into account the forecast for

Final Capitalization Yield

5.3%

investment yields, the risks of the property as a subject ofinvestment, general forecasts for economic growth, the trends ofproperty prices and rents.

2. Estimated Price using Cost Method

1,990,000

Land Ratio

83.2%

Building Ratio

16.0%

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

70

FF&E Ratio

0.8%
Judged that income approach value truly replicates the price formation process from an

Other Points to be Noted for Appraisal by Appraisal Firm

income perspective, is more persuasive and adopted the Income Price, with the cost
approach value as a reference.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

71

(2)

Matters relating to Seismic Resistance etc. for the 12 Hotel Properties
Out of the 12 Hotel Properties, Art Hotel Kagoshima, Kamenoi Hotel Hikone, and Kamenoi Hotel Nara
were designed under the old seismic code (Note 1). Seismic strengthening work on building(s) at Art
Hotel Kagoshima, designed under the old seismic code, was completed in September 2020. It was
confirmed that Kamenoi Hotel Hikone and Kamenoi Hotel Nara have the required seismic capacity basedon evaluation reports on pre-diagnosis of seismic performance and evaluation reports on diagnosis ofseismic performance issued by a third-party expert, Tokio Marine dR Co., Ltd., and Zenshinken Co., Ltd.,
respectively.
Part of the buildings of Hakodate Kokusai Hotel and Art Hotel Kokura New Tagawa were designed under
the old seismic code (Note 1). Seismic strengthening work on buildings at Hakodate Kokusai Hotel and
Art Hotel Kokura New Tagawa, designed under the old seismic code, were completed in November,
2018 and December, 2019, respectively.
All buildings at the other seven properties were designed under the new seismic code (Note 1). Withinthese properties, INV has confirmed that all buildings at Art Hotel Osaka Bay Tower and Solaniwa Onsen,
satisfy structural requirements specified in the Building Standards Act and its enforcement orders, basedon the brief evaluation reports on structural planning, evaluation reports on seismic performance-related
items in the structural engineering reports issued by Tokio Marine dR Co., Ltd. INV has also confirmedthat Hotel MyStays Kumamoto Riverside, Art Hotel Aomori, Art Hotel Oita and Kamenoi Hotel Izukogen
satisfy structural requirements specified in the Building Standards Act and its enforcement orders, basedon the evaluation reports on seismic performance-related items in the structural engineering reports
issued by Tokio Marine dR Co., Ltd. In addition, Art Hotel Nippori Lungwood and Art Hotel Miyazaki Sky
Tower have been confirmed by a third-party expert, the Building Center of Japan and General Building
Research Corporation of Japan, respectively, that the results of the seismic diagnosis were appropriate
fulfilling the requirements specified in the Building Standards Act.
In addition, INV conducts investigations into seismic risks for all new acquisitions as a part of its due
diligence (Note 2) routine.
(Note 1) New seismic code refers to the seismic resistance standards in regard to building design, which is applied to construction
certificates on and after June 1, 1981, while old seismic code refers to those applied to construction certificates on andbefore May 31, 1981.
(Note 2) The due diligence conducted in connection with acquisition of properties includes examination of appraisal values,
building inspection, seismic risk inspection and legal due diligence.

5.

Overview of Sellers
Overview of sellers of the 12 Hotel Properties is as follows;

D90 Art Hotel Osaka Bay Tower & Solaniwa Onsen
(i)
(ii)
(iii)
(iv)

Name
Location
Title and name ofrepresentative officer
Business

Ganges Tokutei Mokuteki Kaisha (“Ganges TMK”)
C/O EP Consulting Service Corporation, 1-1-1, Nishi-shimbashi,
Minato-ku, Tokyo
Director, Masayuki Meguro1.
2.

Asset liquidation business of specified assets
All other business ancillary to the above-mentioned asset
liquidation of specified assets

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

72

(v)
(vi)
(vii)
(viii)(ix)(x)

Capital (as of today)

Specified Capital: JPY 100 thousand
Preferred Capital: JPY 8,930,630 thousand
Date of establishment
May 10, 2012
Net assets
JPY 8,571,580 thousand (As of March 31, 2024)
Total assets
JPY 32,889,500 thousand (As of March 31, 2024)
General Incorporated Association Ganges, General Incorporated
Investor
Association Ganges1 and General Incorporated Association Ganges2
Relationship between INV/Asset Manager and the Seller
While there are no capital relationships that should be noted between
INV/CIM and Ganges TMK, Ganges TMK has indirectly received
Capital relationships
investments through funds operated by affiliates of FIG, a subsidiary of
CIM’s parent company which indirectly holds 100% of CIM’s outstanding
shares.
While there are no personal relationships that should be noted
between INV/CIM and Ganges TMK, as of today, among the directorsof INV and the officers and employees of CIM, Executive Director of
Personal relationships
INV and President & CEO of CIM, Naoki Fukuda, the Executive
Director of CIM, Naoto Ichiki, a part-time director of CIM, Christopher
Reed, and one other employee of CIM are seconded from Fortress
Investment Group Japan Godo Kaisha, a subsidiary of FIG.
There are no transactional relationships that should be noted between
INV/CIM and Ganges TMK. Further, there are no transactional
Transactional
relationships that should be noted between the related persons or
relationships
affiliates of INV/CIM and Ganges TMK or its related persons oraffiliates.
Ganges TMK is not a related party of INV or CIM. Further, related
Whether the TMK is apersons and affiliates of Ganges TMK are not related parties of INV or
related party
CIM. Furthermore, Ganges TMK is not an interested party, etc. of CIM
as provided in the Investment Trust Act.

D91 Hakodate Kokusai Hotel
(i)
(ii)
(iii)
(iv)

(v)
(vi)
(vii)
(viii)
(ix)
(x)

Name
Location
Title and name ofrepresentative officer
Business

Hakodate Tokutei Mokuteki Kaisha (“Hakodate TMK”)
C/O EP Consulting Services Corporation, 1-1-1 Nishi-Shimbashi,
Minato-ku, Tokyo
Director, Masayuki Meguro1.
2.

Asset liquidation business of specified assets
All other business ancillary to the above-mentioned asset
liquidation of specified assets
Capital (as of today)
Specified Capital: JPY 100 thousand
Preferred Capital: JPY 4,786,000 thousand
Date of establishment
August 30, 2016
Net assets
JPY 2,242,100 thousand (As of March 31, 2024)
Total assets
JPY 8,872,030 thousand (As of March 31, 2024)
Investor
General Incorporated Association Hakodate Holdings
Relationship between INV/Asset Manager and the Seller
While there are no capital relationships that should be noted between
INV/CIM and Hakodate TMK, Hakodate TMK has indirectly received
Capital relationships
investments through funds operated by affiliates of FIG, a subsidiary of
CIM’s parent company which indirectly holds 100% of CIM’sThis English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

73

outstanding shares.

Personal relationships

Transactional
relationships

Whether the TMK is arelated party

D92 Art Hotel Nippori Lungwood
(i)
Name
(ii)
Location
(iii)
(iv)

(v)
(vi)
(vii)
(viii)(ix)(x)

Title and name ofrepresentative officer
Business

While there are no personal relationships that should be noted
between INV/CIM and Hakodate TMK, as of today, among the directorsof INV and the officers and employees of CIM, Executive Director of
INV and President & CEO of CIM, Naoki Fukuda, the Executive
Director of CIM, Naoto Ichiki, a part-time director of CIM, Christopher
Reed, and one other employee of CIM are seconded from Fortress
Investment Group Japan Godo Kaisha, a subsidiary of FIG.
There are no transactional relationships that should be noted between
INV/CIM and Hakodate TMK. Further, there are no transactional
relationships that should be noted between the related persons oraffiliates of INV/CIM and Hakodate TMK or its related persons oraffiliates.
Hakodate TMK is not a related party of INV or CIM. Further, related
persons and affiliates of Hakodate TMK are not related parties of INV or
CIM. Furthermore, Hakodate TMK is not an interested party, etc. of CIM
as provided in the Investment Trust Act.

Nippori Tokutei Mokuteki Kaisha (“Nippori TMK”)
C/O EP Consulting Services Corporation, 1-1-1 Nishi-Shimbashi,
Minato-ku, Tokyo
Director, Masayuki Meguro1.

Business related to transfer, management and disposal of
specified assets in accordance with asset securitization plans
based on the Act on the Securitization of Assets
2. All other business ancillary to the above-mentioned asset
liquidation of specified assets
Capital (as of today)
Specified Capital: JPY 100 thousand
Preferred Capital: JPY 3,959,000 thousand
Date of establishment
February 5, 2021
Net assets
8,581,680 thousand (As of September 30, 2023)
Total assets
15,484,730 thousand (As of September 30, 2023)
Investor
General Incorporated Association Nippori
Relationship between INV/Asset Manager and the Seller
While there are no capital relationships that should be noted between
INV/CIM and Nippori TMK, Nippori TMK has indirectly received
Capital relationships
investments through funds operated by affiliates of FIG, a subsidiary of
CIM’s parent company which indirectly holds 100% of CIM’s
outstanding shares.
While there are no personal relationships that should be noted
between INV/CIM and Nippori TMK, as of today, among the directors of
INV and the officers and employees of CIM, Executive Director of INV
Personal relationships
and President & CEO of CIM, Naoki Fukuda, the Executive Director of
CIM, Naoto Ichiki, a part-time director of CIM, Christopher Reed, andone other employee of CIM are seconded from Fortress Investment
Group Japan Godo Kaisha, a subsidiary of FIG.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

74Transactional
relationships
Whether the TMK is arelated party

INV acquired “Hotel MyStays Okayama” and “Hotel MyStays Soga” inAugust 2023 from Nippori TMK.
Nippori TMK is not a related party of INV or CIM. Further, related persons
and affiliates of Nippori TMK are not related parties of INV or CIM.
Furthermore, Nippori TMK is not an interested party, etc. of CIM as
provided in the Investment Trust Act.

D93 Hotel MyStays Kumamoto Riverside and D98 Art Hotel Miyazaki Sky Tower(i)
Name
Rishiri Tokutei Mokuteki Kaisha (“Rishiri TMK”)(ii)
C/O EP Consulting Services Corporation, 1-1-1 Nishi-Shimbashi,
Location
Minato-ku, Tokyo(iii)
Title and name of
Director, Masayuki Meguro
representative officer(iv)
Business
1. Asset liquidation business of specified assets
2. All other business ancillary to the above-mentioned asset
liquidation of specified assets(v)
Capital (as of today)
Specified Capital: JPY 100 thousand
Preferred Capital: JPY 2,666,100 thousand(vi)
Date of establishment
July 25, 2018(vii)
Net assets
JPY 2,036,990 thousand(viii)
Total assets
JPY 3,715,400 thousand(ix)
Investor
General Incorporated Association Rishiri(x)
Relationship between INV/Asset Manager and the Seller
While there are no capital relationships that should be noted between
INV/CIM and Rishiri TMK, Rishiri TMK has indirectly received
Capital relationships
investments through funds operated by affiliates of FIG, a subsidiary of
CIM’s parent company which indirectly holds 100% of CIM’s
outstanding shares.
While there are no personal relationships that should be noted
between INV/CIM and Rishiri TMK, as of today, among the directors of
INV and the officers and employees of CIM, Executive Director of INV
Personal relationships
and President & CEO of CIM, Naoki Fukuda, the Executive Director of
CIM, Naoto Ichiki, a part-time director of CIM, Christopher Reed, andone other employee of CIM are seconded from Fortress Investment
Group Japan Godo Kaisha, a subsidiary of FIG.
There are no transactional relationships that should be noted between
Transactional
INV/CIM and Rishiri TMK. Further, there are no transactional
relationships
relationships that should be noted between the related persons oraffiliates of INV/CIM and Rishiri TMK or its related persons or affiliates.
Rishiri TMK is not a related party of INV or CIM. Further, related persons
Whether the TMK is a
and affiliates of Rishiri TMK are not related parties of INV or CIM.
related party
Furthermore, Rishiri TMK is not an interested party, etc. of CIM as
provided in the Investment Trust Act.

D94 Art Hotel Aomori, D96 Art Hotel Oita, and D99 Art Hotel Kagoshima(i)
Name
Shiretoko Tokutei Mokuteki Kaisha (“Shiretoko TMK”)(ii)
C/O EP Consulting Services Corporation, 1-1-1 Nishi-Shimbashi,
Location
Minato-ku, Tokyo(iii)
Title and name of
Director, Masayuki MeguroThis English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

75

(iv)

(v)
(vi)
(vii)
(viii)(ix)(x)

representative officer
Business

1.
2.

Asset liquidation business of specified assets.
All other business ancillary to the above-mentioned asset
liquidation of specified assets.
Capital (as of today)
Specified Capital: JPY 100 thousand
Preferred Capital: JPY 3,040,000 thousand
Date of establishment
July 25, 2018
Net assets
JPY 4,338,620 thousand
Total assets
JPY 8,252,410 thousand
Investor
General Incorporated Association Shiretoko
Relationship between INV/Asset Manager and the Seller
While there are no capital relationships that should be noted between
INV/CIM and Shiretoko TMK, Shiretoko TMK has indirectly received
Capital relationships
investments through funds operated by affiliates of FIG, a subsidiary of
CIM’s parent company which indirectly holds 100% of CIM’s
outstanding shares.
While there are no personal relationships that should be noted
between INV/CIM and Shiretoko TMK, as of today, among the directorsof INV and the officers and employees of CIM, Executive Director of
Personal relationships
INV and President & CEO of CIM, Naoki Fukuda, the Executive
Director of CIM, Naoto Ichiki, a part-time director of CIM, Christopher
Reed, and one other employee of CIM are seconded from Fortress
Investment Group Japan Godo Kaisha, a subsidiary of FIG.
Transactional
INV acquired “Hotel MyStays Aomori Station” in August 2023, from
relationships
Shiretoko TMK.
Shiretoko TMK is not a related party of INV or CIM. Further, related
Whether the TMK is apersons and affiliates of Shiretoko TMK are not related parties of INV or
related party
CIM. Furthermore, Shiretoko TMK is not an interested party, etc. of CIM
as provided in the Investment Trust Act.

D95 Kamenoi Hotel Izukogen, D100 Kamenoi Hotel Hikone, and D101 Kamenoi Hotel Nara(i)
Name
Yakushima Tokutei Mokuteki Kaisha ("Yakushima TMK”)(ii)
C/O EP Consulting Services Corporation, 1-1-1 Nishi-Shimbashi,
Location
Minato-ku, Tokyo(iii)
Title and name of
Director, Masayuki Meguro
representative officer(iv)
Business
1. Business related to transfer, management and disposal of
specified assets in accordance with asset securitization plans
based on the Act on the Securitization of Assets
2. All other business ancillary to the above-mentioned asset
liquidation of specified assets(v)
Capital (as of today)
Specified Capital: JPY 100 thousand
Preferred Capital: JPY 14,554,000 thousand(vi)
Date of establishment
February 5, 2021
(vii)
Net assets
JPY 12,252,180 thousand(viii)
Total assets
JPY 14,905,670 thousand(ix)
Investor
General Incorporated Association Yakushima(x)
Relationship between INV/Asset Manager and the Seller
This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

76Capital relationships

Personal relationships

Transactional
relationships

Whether the TMK is arelated party

D97 Art Hotel Kokura New Tagawa
(i)
Name
(ii)
Location
(iii)
(iv)

(v)
(vi)
(vii)
(viii)(ix)(x)

Title and name ofrepresentative officer
Business

While there are no capital relationships that should be noted between
INV/CIM and Yakushima TMK, Yakushima TMK has indirectly received
investments through funds operated by affiliates of FIG, a subsidiary of
CIM’s parent company which indirectly holds 100% of CIM’s
outstanding shares.
While there are no personal relationships that should be noted
between INV/CIM and Yakushima TMK, as of today, among thedirectors of INV and the officers and employees of CIM, Executive
Director of INV and President & CEO of CIM, Naoki Fukuda, theExecutive Director of CIM, Naoto Ichiki, a part-time director of CIM,
Christopher Reed, and one other employee of CIM are seconded from
Fortress Investment Group Japan Godo Kaisha, a subsidiary of FIG.
There are no transactional relationships that should be noted between
INV/CIM and Yakushima TMK. Further, there are no transactional
relationships that should be noted between the related persons oraffiliates of INV/CIM and Yakushima TMK or its related persons oraffiliates.
Yakushima TMK is not a related party of INV or CIM. Further, related
persons and affiliates of Yakushima TMK are not related parties of INV
or CIM. Furthermore, Yakushima TMK is not an interested party, etc. of
CIM as provided in the Investment Trust Act.

Kawaguchiko Tokutei Mokuteki Kaisha ("Kawaguchiko TMK”)
C/O Akasaka International Tax & Co, 2-10-5, Akasaka, Minato-ku,
TokyoDirector, Akio Yamazaki
1.
2.

Asset liquidation business of specified assets
All other business ancillary to the above-mentioned asset
liquidation of specified assets
Capital (as of today)
Specified Capital: JPY 100 thousand
Preferred Capital: JPY 4,008,000 thousand
Date of establishment
July 15, 2015
Net assets
JPY 2,638,000 thousand
Total assets
JPY 3,819,270 thousand
Investor
General Incorporated Association Kawaguchiko
Relationship between INV/Asset Manager and the Seller
While there are no capital relationships that should be noted between
INV/CIM and Kawaguchiko TMK, Kawaguchiko TMK has indirectly
Capital relationships
received investments through funds operated by affiliates of FIG, asubsidiary of CIM’s parent company which indirectly holds 100% of
CIM’s outstanding shares.
While there are no personal relationships that should be noted
between INV/CIM and Kawaguchiko TMK, as of today, among thedirectors of INV and the officers and employees of CIM, Executive
Personal relationships
Director of INV and President & CEO of CIM, Naoki Fukuda, theExecutive Director of CIM, Naoto Ichiki, a part-time director of CIM,
Christopher Reed, and one other employee of CIM are seconded from

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

77Fortress Investment Group Japan Godo Kaisha, a subsidiary of FIG.
Transactional
relationships
Whether the TMK is arelated party

6.

INV acquired “Hotel MyStays Kagoshima Tenmonkan”, “Hotel MyStays
Sapporo Susukino”, “Hotel MyStays Kagoshima Tenmonkan Annex”,
and “Hotel MyStays Nayoro” in July, 2019, from Kawaguchiko TMK.
Kawaguchiko TMK is not a related party of INV or CIM. Further, related
persons and affiliates of Kawaguchiko TMK are not related parties of INV
or CIM. Furthermore, Kawaguchiko TMK is not an interested party, etc.
of CIM as provided in the Investment Trust Act.

Transactions with Interested Persons etc.
The sellers of the 12 Hotel Properties, namely Ganges TMK, Hakodate TMK, Nippori TMK, and Rishiri
TMK, Shiretoko TMK, Yakushima TMK, and Kawaguchiko TMK are not Sponsor-related Persons (Note1) under the voluntary rules established by CIM as countermeasures against conflicts of interests in the
management of INV’s investments. However, such sellers have indirectly received investments throughfunds etc. managed by affiliates of FIG (FIG falls under a Sponsor-rerated Person as it is a subsidiary of
CIM’s parent company which indirectly holds 100% of CIM’s outstanding shares). Therefore, CIM hastreated the sellers as equivalent to Sponsor-related Persons.
The acquisitions are to be acquired at prices not exceeding their appraisal value in accordance withSponsor-Related Person Transaction Rules and Sponsor-Related Person Transaction Management
Manual, which are internal rules of CIM, and after deliberation and resolution of the compliance committee
meeting of CIM and the investment committee meeting of CIM held on July 17, 2024, the board of directorsof CIM approved the acquisitions at the meeting held on July 18, 2024 and the board of directors of INV
approved the acquisitions at the meeting held on the same day.
In addition, MHM, the tenant/operator of the nine hotel properties out of the 12 Hotel Properties and theoperator of the 12 properties is not a Sponsor-related Person under the voluntary rules established by
CIM as countermeasures against conflicts of interests in the management of INV’s investments. However,
the tenant/operator or the operator has indirectly received investments through funds operated byaffiliates of FIG. Therefore, CIM has treated MHM as equivalent to a Sponsor-related Person. In addition,
the tenants of Art Hotel Osaka Bay Tower & Solaniwa Onsen, Hakodate Kokusai Hotel, and Art Hotel
Nippori Lungwood also have indirectly received investments through funds operated by affiliates of FIG.
Therefore, CIM has treated these tenants as equivalent to a Sponsor-related Person as well.
In accordance with Sponsor-Related Person Transaction Rules and Sponsor-Related Person Transaction
Management Manual, which are internal rules of CIM, and following the deliberation and resolution of thecompliance committee meeting and the investment committee meeting both held on July 17, 2024, theboards of directors of CIM and INV each approved the relevant lease agreements and managementagreements expected to be entered into with MHM and the tenants of Art Hotel Osaka Bay Tower &Solaniwa Onsen, Hakodate Kokusai Hotel, and Art Hotel Nippori Lungwood at meetings both held on July18, 2024, subject to the hotel operating capability of MHM being confirmed as sufficient through a thirdThis English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

78party report and other relevant information, the rent level of each properties being reasonable considering
the market level, and management services fee amount and structure being fair compared with similar
properties.
(Note 1) A Sponsor-related Person is (i) any person who falls under the “Interested Persons, etc.” set forth in the Investment
Trust Act and the Orders for Enforcement of the Act on Investment Trust and Investment Corporations, (ii) all
shareholders of CIM and (iii) special purpose companies (tokubetsu mokuteki kaisha) (a) which delegate their
management to persons who fall under (ii) above, or (b) which are invested by or invested through anonymous
partnership (tokumei kumiai) by persons who fall under (ii) above. Hereinafter the same.

7. Summary of Current and Previous Owners
1. Name; 2. Relationship with Persons Having Special Conflict of Interests Relationships;
3. Detail/reason for Acquisition; 4. Acquisition Price and 5. Acquisition Timing
Property Name

D90 Art Hotel Osaka Bay Tower
Current owner/trust 1. Ganges Tokutei Mokuteki Kaisha
2. The company has received investments through funds operated bybeneficiary
affiliates of FIG, a subsidiary of the indirect parent company of CIM.
3. Acquisition for investment purposes
4. Omitted because held for longer than one year
5. December 2015
Persons
having no special conflict of interests relationshipPrecedingowner/trust
beneficiary
Property Name

D91 Hakodate Kokusai Hotel
Current owner/trust 1. Hakodate Tokutei Mokuteki Kaisha
2. The company has received investments through funds operated bybeneficiary
affiliates of FIG, a subsidiary of the indirect parent company of CIM.
3. Acquisition for investment purposes
4. Omitted because held for longer than one year
5. April 2017
1. Hotel Hakodate Kokusai Hotel Co., Ltd.
Preceding
2. The company has received investments through funds operated byowner/trust
affiliates of FIG, a subsidiary of the indirect parent company of CIM.
beneficiary
3. Acquisition for ownership and operation of hotel
4. Omitted because the current owner has held for longer than one year
5. August 1971 - March 2009
Persons
having no special conflict of interests relationship
BeforePrecedingowner/trust
beneficiary
Property Name

D92 Art Hotel Nippori Lungwood
Current owner/trust 1. Nippori Tokutei Mokuteki Kaisha
2. The company has received investments through funds operated bybeneficiary
affiliates of FIG, a subsidiary of the indirect parent company of CIM.
3. Acquisition for investment purposes
4. Omitted because held for longer than one year
5. March 2021
Persons
having no special conflict of interests relationshipPrecedingThis English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

79

owner/trust
beneficiary
Property Name

D93 Hotel MyStays Kumamoto Riverside
1. Rishiri Tokutei Mokuteki Kaisha
Current owner/trust
2. The company has received investments through funds operated bybeneficiary
affiliates of FIG, a subsidiary of the indirect parent company of CIM.
3. Acquisition for investment purposes
4. Omitted because held for longer than one year
5. August 2022
Preceding
Persons having no special conflict of interests relationshipowner/trust
beneficiary
Property Name

D94 Art Hotel Aomori
1. Shiretoko Tokutei Mokuteki Kaisha
Current owner/trust
2. The company has received investments through funds operated bybeneficiary
affiliates of FIG, a subsidiary of the indirect parent company of CIM.
3. Acquisition for investment purposes
4. Omitted because held for longer than one year
5. March 2019
Persons having no special conflict of interests relationshipPrecedingowner/trust
beneficiary
Property Name

D95 Kamenoi Hotel Izukogen
1. Yakushima Tokutei Mokuteki Kaisha
Current owner/trust
2. The company has received investments through funds operated bybeneficiary
affiliates of FIG, a subsidiary of the indirect parent company of CIM.
3. Acquisition for investment purposes
4. Omitted because held for longer than one year
5. April 2022
Persons having no special conflict of interests relationshipPrecedingowner/trust
beneficiary
Property Name

D96 Art Hotel Oita
1. Shiretoko Tokutei Mokuteki Kaisha
Current owner/trust
2. The company has received investments through funds operated bybeneficiary
affiliates of FIG, a subsidiary of the indirect parent company of CIM.
3. Acquisition for investment purposes
4. Omitted because held for longer than one year
5. April 2019
Persons having no special conflict of interests relationshipPrecedingowner/trust
beneficiaryThis English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

80Property Name

D97 Art Hotel Kokura New Tagawa
1. Kawaguchiko Tokutei Mokuteki Kaisha
Current owner/trust
2. The company has received investments through funds operated bybeneficiary
affiliates of FIG, a subsidiary of the indirect parent company of CIM.
3. Acquisition for investment purposes
4. Omitted because held for longer than one year
5. December 2018
1. Arima Tokutei Mokuteki Kaisha
Preceding
2. The company has received investments through funds operated byowner/trust
affiliates of FIG, a subsidiary of the indirect parent company of CIM.
beneficiary
3. Acquisition for investment purposes
4. Omitted because the current owner has held for longer than one year
5. July 2018
BeforePreceding Persons having no special conflict of interests relationshipowner/trust
beneficiary
Property Name

D98 Art Hotel Miyazaki Sky Tower
1. Rishiri Tokutei Mokuteki Kaisha
Current owner/trust
2. The company has received investments through funds operated bybeneficiary
affiliates of FIG, a subsidiary of the indirect parent company of CIM.
3. Acquisition for investment purposes
4. Omitted because held for longer than one year
5. March 2020
Persons having no special conflict of interests relationshipPrecedingowner/trust
beneficiary
Property Name

D99 Art Hotel Kagoshima
1. Shiretoko Tokutei Mokuteki Kaisha
Current owner/trust
2. The company has received investments through funds operated bybeneficiary
affiliates of FIG, a subsidiary of the indirect parent company of CIM.
3. Acquisition for investment purposes
4. Omitted because held for longer than one year
5. September 2019
Persons having no special conflict of interests relationshipPrecedingowner/trust
beneficiary
Property Name

D100 Kamenoi Hotel Hikone
1. Yakushima Tokutei Mokuteki Kaisha
Current owner/trust
2. The company has received investments through funds operated bybeneficiary
affiliates of FIG, a subsidiary of the indirect parent company of CIM.
3. Acquisition for investment purposes
4. Omitted because held for longer than one year
5. April 2022
Persons having no special conflict of interests relationshipPrecedingowner/trust
beneficiaryThis English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

81Property Name

D101 Kamenoi Hotel Nara
1. Yakushima Tokutei Mokuteki Kaisha
Current owner/trust
2. The company has received investments through funds operated bybeneficiary
affiliates of FIG, a subsidiary of the indirect parent company of CIM.
3. Acquisition for investment purposes
4. Omitted because held for longer than one year
5. April 2022
Persons having no special conflict of interests relationshipPrecedingowner/trust
beneficiary
8. Schedules
Acquisition decision date:
Agreement execution date:
Anticipated acquisition date:
Anticipated source of acquisition funds:

July 18, 2024
July 31, 2024 (Note 1)
Funds from issuance of new investment units
in Japan and overseas (Note 2) and new
borrowings (Note 3)
Lump-sum payment at the time of delivery(Note 1)

Anticipated acquisition proceeds payment method:(Note 1) (A) The purchase and sale agreements for all of 12 Hotel Properties provide that, in case where the offer price for theissuance of new investment units has not been determined on or prior to July 24, 2024, INV may postpone the closing
date to any business day from August 1, 2024 to August 14, 2024 designated by INV. In such case, INV will exercise
the postponement right pursuant to the purchase and sale agreements. (B) In addition, the purchase and saleagreements for all of 12 Hotel Properties also provide that, in the event that the proceeds from the issuance of new
investment units and the new borrowings are not sufficient to make payment of the Anticipated Acquisition Price on theclosing date (or on the postponed closing date in case of (A) above), INV may defer, on an interest-free basis, thepayment of the shortfall as stipulated in the purchase and sale agreements to a date separately agreed with the seller.
If there is any shortage in the proceeds, INV will exercise the payment deferral right.
(Note 2) For details of the issuance of new investment units, please refer to “Notice concerning Issuance of New Investment
Units and Secondary Offering of Investment Units” dated July 18, 2024.
(Note 3) For details of the new borrowings, please refer to “Notice concerning Debt Financing” dated July 18, 2024.

9. Future Outlook
For information on the revision of INV’s forecasts for financial results and distribution for the fiscal period
ended June 2024 (from January 1, 2024 to June 30, 2024) as well as the fiscal period ending December
2024 (from July 1, 2024 to December 31, 2024 ) and for financial results and distribution for the fiscal
period ending June 2025 (from January 1, 2025 to June 30, 2025) in connection with the acquisition of
the 12 Hotel properties, please refer to “Notice concerning Revision of Forecast of Financial Results andDistribution for the 42nd Fiscal Period Ended June 2024 and the 43rd Fiscal Period Ending December
2024 as well as Forecast of Financial Results and Distribution for the 44th Fiscal Period Ending June2025” dated July 18, 2024.
10. Other Matters that are Necessary for Investors to Properly Understand and Make Judgment on Relevant
Information
With respect to the risks associated with investments in the 12 Hotel Properties, please refer to “Investment
Risks” in the securities report for the fiscal period ended December 2023 (from July 1, 2023 to December
This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

8231, 2023) (available in Japanese only), filed on March 27, 2024, as well as “Part II Reference Information,
II. Supplemental Information to the Reference Documents, 5. Investment Risks” in the securities
registration statement (available in Japanese only) filed on July 18, 2024.

Website of INV: https://www.invincible-inv.co.jp/en/

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

83

Photos and Maps of the 12 Hotel Properties(Appendix)

D90 Art Hotel Osaka Bay Tower & Solaniwa Onsen

D91 Hakodate Kokusai HotelThis English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

84D92 Art Hotel Nippori Lungwood

D93 Hotel MyStays Kumamoto Riverside

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

85

D94 Art Hotel Aomori

D95 Kamenoi Hotel Izukogen

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

86D96 Art Hotel Oita

D97 Art Hotel Kokura New Tagawa

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

87D98 Art Hotel Miyazaki Sky Tower

D99 Art Hotel Kagoshima

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

88D100 Kamenoi Hotel Hikone

D101 Kamenoi Hotel Nara

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by,
non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances are
given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

89