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

Invincible Investment Corporation
Asset Management Report
Fiscal Period ended June 30, 2021 (January 1, 2021 to June 30, 2021)
Content
Greetings from Naoki Fukuda, Executive Director of Invincible Investment Corporation and President &CEO of Consonant Investment Management Co., Ltd.
Top Interview
ESG Initiatives
Unitholder Benefit Program
I.
II.
III.
IV.
V.
VI.
VII.

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

Domestic Portfolio Map (As of August 31, 2021)
Financial Conditions

Overview of Unitholders/Investment Units
Information for Unitholders

Greetings from Naoki Fukuda, Executive Director of Invincible Investment Corporation and President& CEO of Consonant Investment Management Co., Ltd.
We would like to take this opportunity to express our sincere gratitude to all unitholders of Invincible
Investment Corporation ("INV") for your continued support. Our thoughts and prayers go out to all those
who have contracted the COVID-19 virus or have been affected by the torrential rain in various areas, as wellas their families and friends.
We hereby provide you with a report on INV's asset management and financial results for the 36th fiscal
period (from January 1, 2021 to June 30, 2021) (the "Reporting Period").
In the Reporting Period, the government has repeatedly issued and extended the state of emergency and quasi
state of emergency ordinances for various areas in Japan due to the spread of COVID-19 since the end of lastyear. As a result, the occupancy rate of hotels was sluggish due to self-restraint for business trips and leisuretravel. Amid this environment, INV was again forced to accept substantial rent reductions from MyStays
Hotel Management Co., Ltd., the major tenant and hotel operator.
The occupancy rates of the two hotels located in the Cayman Islands remained low as the government
continued to stop accepting tourists from abroad.
As a result, the financial results for the Reporting Period were severe, with operating revenues of JPY 3,806
million, operating loss of JPY 2,341 million, and net loss of JPY 3,599 million. However, to avoid nonpayment of dividends and to reward investors who have invested despite the harsh environment, we decided
to use retained earnings to pay a dividend of JPY 15 per unit.
After the Reporting Period, the Tokyo Olympics were held without spectators at most venues. As a result, thehotels owned by INV around the venues in the Tokyo metropolitan area and Sapporo were not able to secure
the demand for accommodations as expected when the decision to hold the Olympics was made. In addition,
the outbreak of COVID-19 in Japan began to spread again in the second half of July, and the number of new
infections hit a record high almost every day. As a result, there are no signs of the containment of COVID19 as of late August. However, vaccinations in Japan are making good progress, despite the extremely slow
start compared to other developed countries. The rate of fully vaccinated people aged 65 and older, who areat higher risk of becoming severely ill, exceeded 80%, and workplace vaccinations are also being carried out.
Although the operating environment for hotels remains extremely challenging, INV's residential portfolio,
the other core asset class, has performed relatively stable, supporting INV's earnings, with reduced leasing
costs. In addition, we sold one retail property in July, a non-core asset, and appropriately controlled LTV byusing the sale proceeds to repay existing borrowings, keeping the relationship with our lenders favorable.
Our business outlook remains uncertain due to the COVID-19 pandemic. However, we will continue totake initiatives to maximize hotel revenues under the new environment classified as "With Corona", while
placing a high priority on the improvement of "sustainability" as a focal point for management to create longterm value in a new business environment. We, INV and its asset management company, will make every-1-effort to manage assets with the aim of achieving a recovery in business performance while contributing to
the best interests of unitholders.

Your continued support is highly appreciated.
Naoki Fukuda
Executive Director, Invincible Investment Corporation
President & CEO, Consonant Investment Management Co., Ltd.

-2-

Summary of Financial Results
Period fromJanuary 1, 2019 toJune 30, 2019

Period from
July 1, 2019 to
December 31, 2019

Period fromJanuary 1, 2020 toJune 30, 2020

Period from
July 1, 2020 to
December 31, 2020

Period fromJanuary 1, 2021 toJune 30, 2021

Operating Revenues(JPY million)

27,33918,587

9,410

8,340

3,806

Ordinary Income(JPY million)

21,240

11,639424

624-3,599Net Income(JPY million)

21,239

11,638423

623-3,599Net Assets(JPY million)

233,046

259,730

249,538

249,641

245,113

Total Assets(JPY million)

467,931522,431516,663

516,490

497,899

Net Assets per Unit
(JPY)

41,12542,60140,92940,94640,203

Net Assets/Total
Assets (%)

49.8

49.7

48.3

48.3

49.2

Distribution per Unit
(JPY)

1,656

1,725

69

167

15

5,666,840

6,096,840

6,096,840

6,096,840

6,096,840

Number of Units
Issued (Unit)

Distribution per unit for the 36th fiscal period(the fiscal period ended June 2021)

JPY 15(Note) The forward-looking statements, forecasts and goals described in this report are based on available information, assumptions andestimates as of August 31, 2021. These assumptions and estimates are unavoidably uncertain, and could be affected by various risks
and factors beyond INV’s control. Thus, no guarantee can be made regarding the realization of such future forecasts and targets, andactual results may vary significantly.

-3-Top Interview
Q: When will the performance of the hotel return to the level before the COVID-19 pandemic?
A: Although various forecasts have been announced by various institutes, it is difficult at this time toaccurately anticipate when hotel performance will recover. In the early period of the COVID-19 pandemic,
we thought that COVID-19 would naturally subside once vaccines and therapeutics were developed.
However, things weren’t that easy. In Japan, while vaccination progressed from spring to summer thisyear, the number of new infections rapidly increased. Still, an increase in the vaccination rate would be
an important factor in overcoming COVID-19. Therefore, we expect that the situation for infections will
gradually stabilize and that both domestic business demand and leisure demand will begin to improve inthe future due to the progress of vaccination, which had been temporarily stagnant due to supply problems.
While it would take some time to resume accepting overseas tourism, we will try to manage the property
by capturing domestic demand to a maximum extent.
Q: If the performance of the hotel returns to the level prior to the COVID-19 pandemic, can we expectthat DPU would also return to the level prior to the COVID-19 pandemic?
A: Since we do not expect the COVID-19 to be contained in the short term, it will take a certain amount oftime to for DPU to return the previous level. However, we believe that the future performance of thehotels will recover to levels it achieved prior to the COVID-19 pandemic, and we are striving to ensurethat this scenario will come to fruition as early as possible. On the other hand, considering the number ofproperties in INV's current portfolio has decreased due to the sale of properties compared to the end of
2019, the normalized portfolio revenue has declined compared to levels achieved prior to COVID-19, and
it is imperative to expand our asset size again. Recently, there have been many cases of property
acquisitions via J-REIT public offerings. We believe there will be external growth opportunities for INV
once COVID-19 is over. When the time comes, we will aim to increase the DPU to pre COVID-19 levels
through the acquisition of new properties and the improvement of profitability of existing properties.
Q: In a year and a half since the COVID-19 pandemic began, web conferences are becoming popular.
Therefore, people would no longer need business trips, which might result that business demand of
hotels decrease. Please tell us about the outlook for business demand.
A: In the midst of the COVID-19 pandemic, we, the asset management company, have also introduced thesystem for teleworking, and we are actively utilizing telephone conferences and web conferences formeetings with external parties as well as internal meetings. It is true that businesses can reduce travel
expenses and some of the work that people had done on business trip can be replaced by web conferences
now. However, there are many tasks that require visiting the site and checking the spot with your own eye,such as real estate investment and plant maintenance work. Also, it might be difficult to develop strong
relationships through online communication at the start of a business relationship. Established-4-relationships are easier to maintain even if it is required to do so online. We believe that business trip
demand will also return when people have no concerns regarding infections, as the importance of directcommunication will likely be reviewed,.
Q: What is the status of hotels in the Cayman Islands?
A: The Cayman Islands government closed its international airport in March 2020 and stopped accepting
tourists from overseas. This action has continued as of the end of August 2021, and both Cayman hotels
operate on a limited basis to capture staycation demand from domestic customers and demand for selfquarantine of persons entering for long stay in the islands.
In the Cayman Islands, vaccinations are progressing faster than in Japan with the aim of resuming theacceptance of tourists from overseas, because tourism is a major pillar of economic growth. In mid-Julythis year the Cayman Islands Government announced a restricted border reopening plan to resume
accepting tourists from overseas in phases from September 9 once the vaccination rate reaches 80%. Since
the period between Thanksgiving Day of late November and the Christmas holidays is one of the peakseasons in Cayman Islands, it is expected that tourist acceptance will be fully resumed by this time, andthat hotels will also be able to thoroughly resume operations.
Since more than 80 percent of visitors to the Cayman Islands are from the U.S., Cayman tourism demandis significantly affected by the situation in the U.S. Some articles report that people have the mindset of
so-called "Revenge Travel", where travel consumers appear ready to splurge on more travel experiences
to help release their pandemic stress. As vaccinations have progressed to a certain extent, we expect thisdemand to spread to the Cayman hotels.
Q: It seems that many of the recent new borrowings have shorter periods. Is it getting hard to borrowfrom your lender?
A: In general, given that longer borrowing periods increase the cost of borrowing, we place our priority on
ensuring refinancing for shorter borrowing periods at the lowest possible cost. This has resulted in an
increase in short-term borrowings. However, we borrowed a 3-year loans (¥1,582 million) in July 2021.
Q: Recently, more REITs are focusing on responding to sustainability. What kind of sustainability
initiatives is INV implementing?
A: From the asset management report of the previous fiscal period (the 35th fiscal period), we haveincorporated a section that introduces a part of our ESG initiatives. Please refer to the next section for thisfiscal period. In addition, please refer to INV's website (Policy & Strategy - Sustainability).

-5-

ESG Initiatives
INV recognizes the importance of environmental, social, and governance (ESG) considerations in real estate
investment management from the viewpoint of sustainability such as economic and social development andcontributing to global environmental conservation, and regard improvement of sustainability as an importantmanagement issue and implement initiatives to contribute to make our society sustainable.
Initiatives for Environment
Implementation of other measures for energy saving and CO2 reduction
INV promotes the following environmentally friendly renovations in our portfolio.
◼
✓
✓
✓
✓
✓
✓
✓

Energy efficiency
Automatic meter readings (AMR)
Introduction of BEMS
Introduction of LED lighting (all or part of property)
Installation of high-efficiency equipment and appliances
Installation of gas generation
Installation of inverters
Introduction of on-site renewable energy◼ Water saving✓ Introduction of whole or part of the water-saving type toilet✓ Installation of water-saving showers✓ Implementation of wastewater treatment on the premises

Initiatives for Society
Contribution to Disaster Prevention
Three properties in INV portfolio are designated as "Tsunami Evacuation Building1"
zzzzzzzzzzzzzzzzzzzzzzHotel MyStays Shimizu

Takamatsu Tokyu REI Hotel

Hotel MyStays Kagoshima Tenmonkan(Note 1) Buildings designated by municipalities in advance as an emergency evacuation site for local residents to evacuate temporarily whena Tsunami inundates an area, in areas where it is considered difficult to evacuate due to time delay from the occurrence of theearthquake to arrival of the Tsunami considering geographical conditions

Asset Management Company Initiatives for Employees◼ Regular performance appraisals and feedback processes
All employees set an annual goal following an interview with their reporting supervisor. We conduct personnel evaluations at
the end of the fiscal period after an interview with all employees to look back on their performance and provide feedback on
the evaluation results. The result of those performance reviews are reflected in employees' compensation. We have establisheda transparent personnel evaluation system through regular measurement and feedback processes.
◼ Respect for human rights and promotion of diversity
We accept differences in diverse professional abilities and values as well as paying respect to positive heterogeneity in order tomaximize the abilities of each individual employee. We aspire to achieve sustainable corporate growth while creating additional-6-value.
※Breakdown of directors and employees as of the end of 2020

◼ Initiatives for health and well-being of each employee
Established various benefit programs for all employees, including rental PCs for remote work as a countermeasure against
the COVID-19 virus.
*Newly introduced program: Telework / staggered work system, provision of telework allowance, introduction of vaccine leave

GRESB Real Estate Assessment2
INV is promoting initiatives aiming to acquire “Green Star” in the GRESBReal Estate Assessment since 2021
(Note 2) GRESB is an annual benchmarking program to evaluate ESG considerations ofproperty companies and real estate funds. The GRESB Real Estate Assessment is distinguishedby its comprehensive evaluation of initiatives for sustainability of property companies, REITs
and real estate funds, not of individual properties. GRESB rating is a relative evaluation basedon comprehensive scores and the highest being "5-stars".

-7-

Unitholder Benefit Program
INV has introduced the unitholder benefit program to improve the satisfaction of its unitholders and expand
the unitholder base. Eligible unitholders can stay at Sheraton Grande Tokyo Bay Hotel and all MyStays
hotels at special discount rates.
*Detailed information is sent to eligible unitholders along with this report.

Overview of the Unitholder Benefit Program(Note 1)◼ Sheraton Grande Tokyo Bay Hotel
Applicable Hotels◼ All MyStays hotels(Note 2)
All Unitholders whose names are recorded on Invincible’s Unitholders’ Registry
as of the relevant record dates:
Eligible Unitholders *INV decided to remove the eligibility requirement of "holding 10 or moreunits" to enable all INV unitholders to utilize the Unitholder Benefit
Program from the June 2020 Fiscal Period and onwards.
Record Date

The last day of every fiscal period (June 30 and December 31 of each year)

Program Details

Stay with unitholder special discount rates at the above applicable hotels

Hotel Reservation

Available Period(Note 3)

◼Sheraton Grande Tokyo Bay Hotel
Reservation via phone or Email◼ All MyStays hotels
Reservation via designated website posting accommodation plans for theunitholder benefit program
From April 1 to September 30 (eligible unitholders as of December 31)
From October 1 to March 31 (eligible unitholders as of June 30)

Sheraton Grande Tokyo Bay Hotel

Hotel Epinard Nasu

Fusaki Beach Resort Hotel & Villas(Note 1)

Hotel MyStays Premier Akasaka

The details of the unitholder benefit program described above are as planned by Invincible as of August 25, 2021, and the program may be changed orabolished even after it is has been introduced.

-8-

(Note 2)(Note 3)

Refers to all hotels under MyStays brand managed by MHM, and hotels shown on the MyStays Hotel Group’s official website (https://www.mystays.com/enus/) will be applicable.
Available Period represents a period during which you can lodge by using the unitholder benefit program. To enjoy the unitholder benefit program, youactually need to lodge during the availability period.

-9-

- 10 -

I.

Asset Management Report

Overview of Asset Management
1

Trends in Investment Corporation’s Operating Results
32nd

33rd

34th

35th

36th

fiscal period

fiscal period

fiscal period

fiscal period

fiscal period

Jan. 1, 2019 toJul. 1, 2019 toJan. 1, 2020 toJul. 1, 2020 toJan. 1, 2021 toJun. 30, 2019

Dec. 31, 2019

Jun. 30, 2020

Dec. 31, 2020

Jun. 30, 2021

(Note 1) (JPY thousand)

27,339,670

18,587,253

9,410,225

8,340,593

3,806,176(Rental revenue – real estate)(JPY thousand)

12,153,399

14,545,826

5,838,836

5,738,249

3,806,176

Operating expenses(JPY thousand)

5,154,599

5,728,269

7,913,247

6,649,749

6,147,595(Property-related expenses)(JPY thousand)

4,490,658

4,673,007

6,801,584

5,044,533

4,720,815

Operating income (loss)(JPY thousand)

22,185,070

12,858,984

1,496,977

1,690,843(2,341,419)

Ordinary income (loss)(JPY thousand)

21,240,482

11,639,553

424,522624,333(3,599,083)

Net income (loss)(JPY thousand)

21,239,877

11,638,948

423,917623,728(3,599,688)(a) (JPY thousand)

467,931,975

522,431,999

516,663,418

516,490,350

497,899,915

(%)

2.8

11.6

(1.1)

(0.0)

(3.6)

(JPY thousand)

228,774,000

259,174,000

263,468,000

262,588,000

249,198,000(b) (JPY thousand)

233,046,414

259,730,758

249,538,194

249,641,218

245,113,891

(%)

5.3

11.5

(3.9)

0.0

(1.8)

Unitholders’ capital(JPY thousand)

211,092,540

235,701,512

235,701,512

235,701,512

235,701,512

Total distributions(c) (JPY thousand)

9,384,287

10,517,049

420,6811,018,172

91,452(Note 2) (%)

44.2

90.4

99.2

163.2

―

(d) (Units)5,666,840

6,096,840

6,096,840

6,096,840

6,096,840(b) / (d) (Note 3) (JPY)41,12542,60140,92940,94640,203

By Period

Reporting period

Operating revenue

Operating Results

Total assets(change from last period)

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

Dividend
StatusDividend payout ratio
Number of investment units

Information per Unit

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

1,656

167

15

(JPY)

1,656

1,725
1,725

69

(Distributions of earnings per unit)

69

167

15

(Distributions in excess of retained

(JPY)

―

―

―

―

―

4.6

2.4

0.1

0.1

(0.7)

9.3

4.7

0.2

0.2

(1.4)

Distributions per unit

earnings per unit)
Return on assets(annualized)

Financial Measures

Return on equity(annualized)
Capital ratio(change from last period)(Note 4) (%)

9.3

4.7

0.2

0.2

(1.5)

18.9

9.4

0.3

0.5

(2.9)

49.8
1.2

49.7
(0.1)

48.3
(1.4)

48.3
0.0

49.2

(%)
(Note 4) (JPY thousand)

11,247,273

14,490,677

3,392,004

3,703,215

2,090,413(Note 4) (%)(b) / (a) (Note 4) (%)

NOI(Net Operating Income)

0.9(Note 1) Consumption taxes etc. are not included in the items including operating revenues.
(Note 2) Dividend payout ratio is calculated in accordance with the following formula and rounded to one decimal place:
Dividend payout ratio = Distribution amount (Excluding distributions in excess of retained earnings) ÷ Net income × 100(Note 3) Net assets per unit are rounded to the nearest unit.

- 11 -

(Note 4) Figures above are calculated as below, and ratios are rounded to one decimal place. Figures annualized according
to the number of days are also shown.
Return on assets = Ordinary income for relevant period / ((Total assets at start of relevant period + Total assets at endof relevant period) / 2) x 100.
Return on equity = Net income for relevant period / ((Net assets at start of relevant period + Net assets at end of
relevant period) / 2) x 100.
Capital ratio = Net assets at end of relevant period / Total assets at end of relevant period x 100.
NOI = Rental revenue – Property-related expenses + Management contract revenue - Management contract expenses+ Depreciation expense for relevant period- 12 -

2

Overview of Asset Management for the Fiscal Period Ended June 2021(a)

Main Trends of INV

INV was established in January 2002 in accordance with the Investment Trust and Investment Corporation Act (Act No.
198 of 1951, as amended; the “Investment Trust Act”). In May 2004, INV was listed on the Osaka Securities Exchange(application for delisting was made in August 2007), and in August 2006 was listed on the Real Estate Investment andTrust Securities Section of the Tokyo Stock Exchange (Ticker Code: 8963).
After the absorption-type merger with LCP Investment Corporation (“LCP”) was implemented on February 1, 2010, INV
issued new investment units through a third-party allotment on July 29, 2011 and refinanced its debt. Calliope Godo
Kaisha (“Calliope”), an affiliate of the Fortress Investment Group LLC (“FIG” and together with Calliope and otheraffiliates of FIG, collectively the “Fortress Group”) was the main allottee, and the sponsor changed to the Fortress Group.
FIG became a subsidiary of SoftBank Group Corp. (“SoftBank Group”), after SoftBank Group acquired FIG effective on
December 27, 2017 (Note 1). Calliope, an affiliate of FIG, who owned 100% of the issued shares of Consonant
Investment Management Co., Ltd., the asset manager to which INV entrusts the management of its assets (“CIM”),
transferred 80.0% of issued shares of CIM to Fortress CIM Holdings L.P., a subsidiary of SoftBank Group, and 20.0% to
SoftBank Group on March 29, 2018, pursuant to the basic agreement which was entered into as of September 7, 2017.
Although FIG is no longer an indirect parent company of CIM, FIG continues to support INV as the sponsor.
Ever since the commencement of sponsorship from the Fortress Group (Note 2), INV has been focusing its efforts on
improving the profitability of its portfolio and establishing a revenue base in order to secure stable distributions, and has
strengthened the lender formation through new borrowings and the refinancing of existing bank borrowings, thereby
creating a financial base for external growth. With this platform as a base, in June 2014, CIM revised the Investment
Guidelines for INV, positioned hotels as a core asset class alongside residential properties with a view towards expanding
investments in the hotel sector in which demand is forecasted to rise going forward, and has expanded its portfolio.
Moreover, CIM revised the Investment Guidelines as of July 17, 2018. Such revision was intended to establish an
investment policy and asset management structure regarding investments in overseas assets, and also to change theinvestment policy regarding domestic hotels to focus on (i) Limited service hotels, which feature relatively higher profit
margins and potential for revenue growth backed by increasing demand for accommodations, and (ii) Full-service andResort hotels, which have a variety of revenue sources, including lodging, dining and sales of goods, that are expected toachieve stable growth in overall hotel revenues. Based on such change in investment policy, in July 2018, INV decided
on the acquisition of TK (Japanese anonymous association (tokumei kumiai)) interest in two overseas hotels, “Westin
Grand Cayman Seven Mile Beach Resort & SPA” and “Sunshine Suites Resort” (collectively, the “Cayman Hotels”) as
underlying assets for the first time ever in J-REIT history. In September 2018, INV implemented the investment in the
Cayman Hotels via a global offering of new investment units and borrowing of funds. INV intends to improve both theprofitability and stability of the portfolio through such investments, including investment in the Cayman Hotels, whichis expected to even out the effects of seasonality in INV’s portfolio.
In the Fiscal Period ended June 30, 2021 (“Reporting Period”), INV didn’t acquire or sell any properties. As a result,
INV's portfolio at the end of the Reporting Period comprised of 142 properties (86 hotels (Note 3) (Note 4), 54 residential
properties and two retail properties) with a total acquisition price of JPY 502,717 million (Note 5). Furthermore, INV’shotel portfolio has the largest asset size (Note 6) of JPY 450,609 million (86 properties, 15,597 rooms) among all J-REIT
hotel portfolios including hotel-and-inn-specific type investment corporations.
(Note 1)
(Note 2)

(Note 3)

US Eastern Standard Time
As of July 2011, Calliope owned 97.35% of issued shares of CIM and the investment ratio reached 100% in
October 2013. Calliope transferred 80.0% of issued shares to Fortress CIM Holdings L.P., a subsidiary of
SoftBank Group and 20.0% to SoftBank Group on March 29, 2018. As of the date of this document,
SoftBank Group owns 100% of issued shares of CIM directly and indirectly.
The preferred equity interest held by INV is counted as one property. Such preferred equity interest issued- 13 -

by a special purpose company (tokutei mokuteki kaisha) refers to 178,458 units of the preferred equity interest
issued by Kingdom Special Purpose Company (the “TMK”) (equivalent to 49.0% of the total issued andoutstanding preferred equity interest), which owns the trust beneficiary interest of the Sheraton Grande Tokyo
Bay Hotel as an underlying asset. The property is classified as a hotel, based on the use of Sheraton GrandeTokyo Bay Hotel, the underlying asset of the preferred equity interest, and INV’s investment amount of thepreferred equity interest is used as the acquisition price of the preferred equity interest, unless otherwise stated.
The “underlying asset” refers to the real estate or the real estate related assets owned by a TK operator of TK
interest or a TMK relating to the preferred equity interest which INV owns, thus the real estate or the realestate related assets which will be the revenue source of INV. Hereinafter the same shall apply.
(Note 4) From September 28, 2018 (Cayman Island local time; September 29, 2018 in Japan local time), INV owned
100% of the TK interest in Seven Mile Resort Holdings Ltd. (the “Cayman SPC”), a Cayman Islands special
purpose company that holds leasehold interests in the Cayman Hotels and ancillary assets as underlying assets.
However, INV implemented the investment structure change (the “Structure Change” in some cases
hereinafter) regarding the Cayman Hotels on May 9, 2019 (Cayman Island local time; May 10, 2019 in Japan
local time) and has directly held the Leasehold Interests, etc. of the Cayman Hotels thereafter. Both of the
TK interest and the Cayman Hotels are counted as two properties before and after the Structure Change. In
addition, the “Leasehold Interests, etc.” means leasehold interests (rights equivalent to long-term real estateleases on land and buildings under the British Cayman laws) and furniture, fixtures, equipment, ornaments,
kitchen instrument, and other assets required for hotel operations. Hereinafter the same shall apply.
(Note 5) Due to the Structure Change, the book value of the leasehold interests of the Cayman Hotels recorded by the
Cayman SPC as of May 9, 2019 (Cayman Island local time; May 10, 2019 in Japan local time), when INV
succeeded the leasehold interests of the Cayman Hotels from the Cayman SPC via distribution in kind inconnection with the termination of TK agreement, is deemed as the acquisition price of the Cayman Hotels.
The book value is converted into JPY amount via exchange rate of USD 1=JPY 110.45 based on the foreignexchange forward contracts concluded on July 26, 2018 and executed on September 26, 2018 in connection
with the investment in the TK interest by INV. Hereinafter the same shall apply.
(Note 6) “The largest asset size … among all J-REIT hotel portfolios” refers to the total acquisition price of 86 hotels
owned by INV as compared with the total acquisition price of hotels (including inns and other accommodation
facilities) owned by listed investment corporations other than INV as of June 30, 2021.
(b)

Operational Environment and Performance

Given the enormous impact of COVID-19 on the economy as a whole, especially in the hotel sector, on March 11, 2021,
INV entered into a Memorandum of Understanding (“MOU”) to amend each fixed-term building lease and property
management agreement ("MLPM Agreements") pertaining to the rent conditions for the periods from January 1, 2021 toJune 30, 2021 for domestic hotels owned by INV and operated by INV's main tenant, MyStays Hotel Management Co.,
Ltd. (“MHM”) and its affiliates (collectively the “MHM Group” along with MHM). Pursuant to the MOU, we havechanged the rent payment conditions of MLPM Agreements in terms of the amount of fixed rent payment, the variable
rent calculation method, payment method of rent and payment date. The rent paid by the MHM Group for the six
months of January through June was JPY 1 billion, which is an amount equivalent to the fixed rent, and no variable rent
was accrued. Moreover, JPY 1 billion is equivalent to about 20% of fixed rent under the original MLPM Agreements.
As a result, NOI for the 73 hotels operated by the MHM Group for the Reporting Period was JPY 430 million.
For the June 2021 fiscal period, the portfolio NOI (Note 1) decreased by 48.1% or JPY 1,936 million compared to thesame period in the previous year (the June 2020 fiscal period) to JPY 2,090 million. The hotel portfolio NOI decreasedby JPY 1,654 million. The residential portfolio NOI (Note 2) also decreased by JPY 281 million due to asset sales.
Compared to the June 2019 fiscal period prior to the COVID-19 pandemic, the portfolio NOI decreased by 85.8% or JPY
12,644 million, of which the hotel portfolio NOI decreased by JPY 11,532 million and the residential portfolio NOI
decreased by JPY 1,108 million due to asset sales.
Commentary on hotel and residential performance in the Reporting Period is as described below.

- 14 -

The NOI for the Reporting Period of the 75 domestic hotels (Note 3) owned by INV decreased by 27.1% compared tothe same period in the previous year (figures exclude nine domestic hotels with fixed-rent lease agreements among the84 domestic hotels owned by INV as of the end of the Reporting Period, including Sheraton Grande Tokyo Bay Hotel,
the underlying asset of the preferred equity interest of TMK owned by INV). The 75 domestic hotels recorded an
occupancy rate (Note 4) of 35.6% (-12.5 points YoY), ADR (Note 5) of JPY 6,940 (-4.0% YoY), and RevPAR (Note 6)
of JPY 2,472 (-28.9% YoY). Compared to the June 2019 fiscal period prior to the COVID-19 pandemic, the NOI
decreased by 94.4%, the occupancy rate decreased by 51.2pt, ADR decreased by 31.4%, and RevPAR decreased by 71.8%.
Westin Grand Cayman Seven Mile Beach Resort & Spa and Sunshine Suites Resort recorded an average occupancy rateof 7.9% (-29.7 points YoY), ADR of USD 162 (-66.8% YoY), and RevPAR of USD 13 (-93.0% YoY) for the Reporting
Period. Compared to June 2019 fiscal period prior to the COVID-19 pandemic, the occupancy rate decreased by 81.4pt,
ADR decreased by 61.1%, and RevPAR decreased by 96.6%.
Regarding the hotel sector in Japan, domestic hotel demand has significantly declined compared to pre-COVID-19
pandemic levels due to a sharp reduction in inbound visitors and self-restraint in business trips and leisure travel under
the State of Emergency and other measures. While demand from individual customers remained weak, several hotels
maintained relatively high occupancy rates by procuring group accommodation demand from sports organizations,various educational institutions and other groups as well as business demand from diverse industries thanks to an
extensive corporate customer base and sales efforts of the MHM Group.
The Cayman Hotels were closed due to the temporary closure of the Owen Roberts International Airport in March 2020
caused by the COVID-19 pandemic. The Airport has resumed acceptance of foreign nationals on a limited basis, andSunshine Suites Resort has resumed operations from October 2020 after being selected as one of the hotels for isolation
facilities. Westin Grand Cayman Seven Mile Beach Resort & Spa has reopened on a limited basis from June 2021
primarily to capture staycation demand from domestic customers during summer vacation. COVID-19 vaccinations
have been making steady progress in the Cayman Islands, and the Cayman Islands Government has announced a restrictedborder reopening plan from September 9 once the fully vaccinated rate reaches 80%. The Cayman Hotels are preparing
to resume accepting tourists from overseas in phases starting in June 2021 with restrictions.
Regarding the residential portfolio, CIM prioritized the recovery of the occupancy rate (Note 7). As a result, theoccupancy rate of 54 residential properties (Note 8) increased by 1.2 points from 94.2% at the end of the previous fiscal
period to 95.4% at the end of the Reporting Period. The average occupancy rate (Note 7) decreased by 0.7 points YoY
to 95.3%. The NOI for the Reporting Period was almost flat YoY, mainly due to the decrease in restoration work costs
and repair costs.
Regarding the rent market conditions for small-type properties, the rents in the 23 wards of Tokyo for the first quarter of2021 (January to March) decreased YoY due to the impact of tenant relocation to the suburbs with the spread of remotework. The rents in other regions are generally on a gradual uptrend or flat.
In the Reporting Period, INV realized a rent increase for 27.6% (based on the number of contracts) of the new residential
lease contracts, however the new rent decreased by 1.5% compared to the previous rent across all new leases (Note 9).
INV achieved a rent increase for 23.1% (based on the number of contracts) of contract renewals with an average rent
increase of 0.7% compared to the previous rent across all renewal leases, while maintaining a high contract renewal rate
(Note 10) of 79.7, 10.4 points decrease YoY. Combined, new lease and renewal lease rents were signed at 0.2% lower
than the previous leases. The average rent per tsubo per month (Note 11) for the Reporting Period decreased by 0.2%
YoY to JPY 9,037.
The total appraisal value of 141 properties was JPY 532,550 million (1 out of the 142 properties owned by INV at theend of the Reporting Period is excluded from the appraisal calculation: Sheraton Grande Tokyo Bay Hotel (preferred
equity interest) for which the appraisal value of such interest is not available). The portfolio has an unrealized gain of
JPY 70,385 million (Note 12) and an unrealized gain ratio of 15.2% (Note 12). The total appraisal value of 141
properties which were owned throughout the Reporting Period increased by 0.3% from JPY 530,860 million at the endof the December 2020 fiscal period to JPY 532,550 million at the end of the Reporting Period.

- 15 -

Key Performance Indicators of 75 Domestic Hotel Properties (Note 3)
June 2021 fiscal periodvs 1H 2020

vs 1H 2019

Occupancy Rate (Note 4)

35.6%-12.5pt-51.2pt

ADR (JPY) (Note 5)

6,940

-4.0%

-31.4%

RevPAR (JPY) (Note 6)

2,472-28.9%-71.8%GOP (JPY million) (Note 13)655+58.1%-94.3%Key Performance Indicators of Cayman Hotels
June 2021 fiscal periodvs 1H 2019vs 1H 2020

Occupancy Rate (Note 4)

7.9%-29.7pt-81.4pt

ADR (USD) (Note 5)

162-66.8%-61.1%

RevPAR (USD) (Note 6)13-93.0%-96.6%GOP (USD) (Note 13)-2,850,157- (Note 14)- (Note 14)

Key Performance Indicators of 54 Residential Properties (Note 8)
June 2021 fiscal period
Occupancy Rate (Note 7)
Average Rent per Tsubo per Month(JPY) (Note 11)
NOI (JPY million) (Note 2)(Note 1)

(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)Year-on-year change

95.3%-0.7pt

9,037

-0.2%

1,376

-0.1%

“NOI” for the hotel properties is calculated in accordance with the following formula:
NOI＝ Rental Revenues ‐ Property Related Expenses + Depreciation Expenses + Dividend on the preferred
equity interest (TMK dividend) + (Management Contract Revenue of the Cayman Hotels ‐Management
Contract Expense)
For the comparison of NOI for the residential properties, one-off insurance-related revenues and expenses.
Hereinafter the same shall apply.
Of the 84 hotels held as of the end of the June 2021 Fiscal Period (including the Sheraton Grande Tokyo Bay
Hotel, the underlying asset of the preferred equity interest of TMK owned by INV), the following nine hotels
with fixed-rent lease agreements are excluded: Super Hotel Shinbashi/Karasumoriguchi, Comfort Hotel Toyama,
Super Hotel Tokyo-JR Tachikawa Kitaguchi, Super Hotel JR Ueno-iriyaguchi, Comfort Hotel Kurosaki,
Comfort Hotel Maebashi, Comfort Hotel Tsubame-Sanjo, Comfort Hotel Kitami and Takamatsu Tokyu REI
Hotel. In addition, the figures for the properties acquired after January 2019 are calculated on the assumption
INV had acquired those properties on January 1, 2019, using the actual figures provided by the sellers of suchproperties for the period before the acquisition. Hereinafter the same shall apply.
“Occupancy rate” for the hotel properties is calculated in accordance with the following formula:
Occupancy rate = total number of occupied rooms during a certain period ÷ total number of rooms available
during the same period (number of rooms x number of days)
Hereinafter the same shall apply.
“ADR” means average daily rate, and is calculated by dividing total room sales (excluding service fees) for acertain period by the total number of days per room for which each room was occupied during the same period.
Hereinafter the same shall apply.
“RevPAR” means revenues per available room per day, and is calculated by dividing total room sales for acertain period by total number of rooms available (number of rooms x number of days) during the same period,and is the same as the figure obtained by multiplying ADR by occupancy rates. Hereinafter the same shall apply.

- 16 -

(Note 7)“Occupancy Rate” and “Average Occupancy Rate” for the portfolio or the residential properties are calculatedby dividing the sum of total leased area by the sum of total leasable area at the end of each month during therelevant period. Hereinafter the same shall apply.
(Note 8) Based on the 54 residential properties owned as of the end of June 2021. Hereinafter the same shall apply.
(Note 9) Increase or decrease in the sum of monthly rents on new or renewal contracts, or the total of both, comparedwith the sum of previous rents. Hereinafter the same shall apply.
(Note 10) Renewal rate is calculated by the number of renewed contracts during the relevant period divided by the numberof contracts due up for renewal during the relevant period(Note 11) “Average Rent per Tsubo per Month” is calculated by dividing the total rental revenue (including common area
charges) for each month by the sum of total leased area (tsubo) at the end of each month during the relevant
period.
(Note 12) The unrealized gain is calculated using the following formula: the appraisal value as of the end of the Reporting
Period - book value as of the end of the Reporting Period.
The unrealized gain ratio is calculated using the following formula: the unrealized gain ÷ book value as of theend of the Reporting Period.
(Note 13) “GOP” means the gross operating profit, and is the amount remaining after deducting costs of hotel operations(the personnel, utility and advertising expenses and other expenses) and the management services fee tooperators (if any) from the hotel’s revenues. GOP for each fiscal period ended June 2020 and onwards includes
the amount of employment adjustment subsidies to be received by the hotel operators for the respective fiscal
period, which requires a certain period of time to confirm. Therefore, the amount of GOP is subject to change
retroactively upon confirmation of the amount of employment adjustment subsidies. Moreover, if variable rentis accrued due to changes in GOP arising from revision of the employment adjustment subsidies, we will discusswith the tenant separately regarding the handling of such variable rent. In addition, GOP for the Sheraton
Grande Tokyo Bay Hotel has been multiplied by 49%, or INV’s ownership ratio of the preferred equity interest.
Hereinafter the same shall apply.
(Note 14) The GOP of the Cayman Hotels was USD 8,502,469 in the same period of 2020 and USD 26,681,479 in thesame period of 2019.
(c)

Overview of Fund Raising

As a result of the measures described below, INV’s interest-bearing debt outstanding balance was JPY 249,198 million andthe Interest-Bearing Debt ratio (Note 1) and LTV (appraisal value basis) (Note 2) were 50.0% and 45.3% respectively, asof the end of the Reporting Period, with an average interest rate (Note 3) of 0.51%.

(Note 1)

(Note 2)(*)

(Note 3)

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

(i) Borrowing of Funds
INV borrowed Term Loan (R) on January 22, 2021 (total amount borrowed: JPY 3,400 million; interest rate: variableinterest rate of 1-month JPY TIBOR plus 0.25000% for duration of one year), which was arranged by Sumitomo Mitsui- 17 -

Trust Bank, Limited and Term Loan (S) (total amount borrowed: JPY 850 million; interest rate: variable interest rate of
1-month JPY TIBOR plus 0.25000% for duration of one year), which was arranged by MUFG Bank, Ltd. in order torepay Term Loan (B) in the amount of JPY 4,250 million due on January 22, 2021.
On March 30, 2021, INV borrowed New Syndicate Loan (T) (total amount borrowed: JPY 3,057 million; interest rate:variable interest rate of 1-month JPY TIBOR plus 0.25000% for duration of one year), which was arranged by Mizuho
Bank, Ltd., New Syndicate Loan (U) (total amount borrowed: JPY 3,039 million; interest rate: variable interest rate of 1month JPY TIBOR plus 0.25000% for duration of one year), which was arranged by Mizuho Bank, Ltd. and Term Loan
(T) (total amount borrowed: JPY 570 million; interest rate: variable interest rate of 1-month JPY TIBOR plus 0.25000%
for duration of three months), which was arranged by Resona Bank, Limited in order to repay one of the tranches of New
Syndicate Loan (G) in the amount of JPY 927 million due on March 14, 2021 and New Syndicate Loan (F) in the amountof JPY 6,396 million due on March 30, 2021.
Furthermore, INV borrowed Term Loan (U) on June 15, 2021 (total amount borrowed: JPY 349 million; interest rate:variable interest rate of 1-month JPY TIBOR plus 0.25000% for duration of one year), which was arranged by Citibank,N.A., Tokyo Branch in order to repay Term Loan (C) in the amount of JPY 349 million due on June 15, 2021.
In addition, INV borrowed Term Loan (V) on June 30, 2021 (total amount borrowed: JPY 570 million; interest rate:variable interest rate of 1-month JPY TIBOR plus 0.25000% for duration of six months) , which was arranged by Resona
Bank, Limited in order to repay Term Loan (T) in the amount of JPY 570 million due on June 30, 2021.
(ii) Prepayment of Loan
INV’s following Loans Subject to Prepayment were prepaid on January 29, 2021 to each lender on a pro-rata basis byusing JPY 10,000 million, a majority of the sales proceeds of the six residential properties sold on December 18, 2020.

- 18 -

Status of Loans Subject to Prepayment after the Prepayment (Note 1)(As of January 29, 2021)
Borrowing

Loan

Date

BalancebeforeRepayment(JPY million)

Repayment
Amount(JPY million)

Balanceafter
Repayment(JPY million)

InterestRate(annual)Maturity

Borrowing

Date

MethodMar. 30,2021(Note 3)Mar. 14,2021(Note 3)

New Syndicate Loan (F)<5-Year Loan>

March 31,2016

10,433

4,037

6,396

0.68818%(Note 2)

New Syndicate Loan (G)<4-Year Loan>

March 14,
2017

3,250

2,323

927

0.58818%(Note 2)

New Syndicate Loan (K)<3-Year Loan>

March 29,
2019

7,934

12

7,922

0.36100%(Note 4)Mar. 29,2022

New Syndicate Loan (K)<5-Year Loan>

March 29,
2019

2,500

99

2,401

0.59400%(Note 4)Mar. 29,2024

New Syndicate Loan (K)<10-Year Loan>

March 29,
2019

1,000

39

961

0.88818%(Note 2)Mar. 29,2029

New Syndicate Loan (L)<4.5-Year Loan>

July 19,
2019

4,943

138

4,805

0.52473%(Note 4)Jan. 16,2024

New Syndicate Loan (N)<4.4-Year Loan>

August 28,
2019

3,682

138

3,544

0.46219%(Note 4)Jan. 16,2024

New Syndicate Loan (P)<5-Year Loan>

January 6,
2020

4,550

59

4,491

0.64291%(Note 4)Jan. 6,2025

New Syndicate Loan (Q)<5-Year Loan>

March 16,
2020

3,250

39

0.48700%
3,211(Note 4)Mar. 16,2025

New Syndicate Loan (Q)<5-Year Loan>

March 30,
2020

6,960

39

6,921

0.58818%(Note 2)Mar. 16,2025

New Syndicate Loan (R)<1-Year Loan>

July 16,2020

28,9791,550

27,4290.33818%(Note 2)

Term Loan (C)<5-Year Loan>

June 15,
2016

1,000

651

349

0.68818%(Note 2)

Term Loan (D)<5-Year Loan>

June 30,
2016

3,000

267

2,733

0.68818%(Note 2)

Term Loan (E)<5-Year Loan>

July 20,
2016

1,700

118

1,582

0.68818%(Note 2)

Term Loan (G)<4.5-Year Loan>

May 29,
2017

7,321

157

7,164

0.63818%(Note 2)

Nov. 29,
2021

Term Loan (O)<1-Year Loan>

July 20,
2020

1,000

334

666

0.33818%(Note 2)

Jul. 20,2021(Note 3)91,502

10,00081,502

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

Unsecured/nonguaranteed

Jul. 16,2021(Note 3)
Jun. 15,2021(Note 3)
Jun. 30,2021(Note 3)
Jul. 20,2021(Note 3)Of the loans that are subject to prepayment, only the tranches that are eligible for prepayment are listed.
The interest rate applicable as of January 20, 2021 is shown.
All repayments are completed as of the date of this document.
Figures are shown as virtually fixed interest rate because interest rate is fixed by interest rate swap agreement
while it is a borrowing with floating interest rate.

- 19 -

(d)Overview of Results of Operations and Distributions

As a result of the operations mentioned above, operating revenues for the Reporting Period decreased by JPY 4,534
million from the previous period (-54.4%) to JPY 3,806 million, resulting in a net loss of JPY 3,599 million (netincome of JPY 623 million for the previous period). Unappropriated retained earnings including the retained
earnings carried forward from the preceding fiscal period (JPY 12,353 million) is JPY 8,753 million. INV has
decided to set distribution per unit (excluding excess profit distribution) of JPY 15 by reversing retained earnings inorder to avoid non-dividend.

- 20 -

3

Changes in Total Number of Investment Units Issued and Outstanding

Changes in the number of investment units issued and outstanding and unitholders’ capital for the past 5 years up to the end of
the Reporting Period are as follows.

Date

Type of issue

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

Unitholders’ capital (JPY)
Increase

Reference

Total

February 22, 2017

Reversal of
allowance fortemporarydifferences
adjustment-

3,675,824

224,225,264

120,591,496,700(Note 1)March 13, 2017

Public offering

185,000

3,860,824

8,393,450,000

128,984,946,700(Note 2)October 12, 2017

Public offering

887,959

4,748,783

37,917,625,218

166,902,571,918(Note 3)

November 1, 2017

Third-party
allotment

44,3984,793,181

1,895,883,396

168,798,455,314(Note 4)

August 1, 2018

Public offering

909,524

5,702,705

40,280,089,388

209,078,544,702(Note 5)

August 21, 2018

Third-party
allotment

45,476

5,748,181

2,013,995,612

211,092,540,314(Note 6)

December 28, 2018

Retirement(81,341)

5,666,840-

211,092,540,314(Note 7)

July 18, 2019

Public offering

409,524

6,076,364

23,317,887,036

234,410,427,350(Note 8)

Third-party
20,476
6,096,840
1,165,882,964
235,576,310,314 (Note 9)
allotment
Reversal of
allowance for
6,096,840
125,201,855
235,701,512,169 (Note 10)
August 22, 2019
temporarydifferences
adjustment(Note 1) INV decided at the Board of Directors' Meeting held on February 22, 2017, the reversal of allowance fortemporary difference adjustments for incorporation into unitholders' capital.
(Note 2) New investment units were issued in a public offering at a price of JPY 46,897 per unit (JPY 45,370 after
deducting the underwriters’ discount) to raise a part of the funds for the acquisition of new properties.
(Note 3) New investment units were issued in a public offering at a price of JPY 44,118 per unit (JPY 42,702 after
deducting the underwriters’ discount) to raise a part of the funds for the acquisition of new properties.
(Note 4) New investment units were issued in a third-party allotment at a price of JPY 42,702 per unit for the purposeof allocation to cash reserves to be used as part of the funds for future acquisition of specified assets.
(Note 5) New investment units were issued in a public offering at a price of JPY 45,776 per unit (JPY 44,287 after
deducting the underwriters’ discount) to raise a part of the funds for the acquisition of new properties.
(Note 6) New investment units were issued in a third-party allotment at a price of JPY 44,287 per unit for the purposeof raising a part of the funds for the acquisition of new properties.
(Note 7) INV acquired own investment units from December 13, 2018 to December 18, 2018 (on a trade date basis)through the market purchase at Tokyo Stock Exchange based on a discretionary transaction contract with asecurities company.
INV resolved the retirement of all the acquired own investment units at the Board of Directors' Meeting held
on December 25, 2018 and the acquired own investment units were retired on December 28, 2018.
The acquisition of own investment units was conducted using capital surplus, and thus there is no change tounitholders’ capital.
(Note 8) New investment units were issued in a public offering at a price of JPY 58,898 per unit (JPY 56,939 after
August 15, 2019- 21 -

deducting the underwriters’ discount) to raise a part of the funds for the acquisition of new properties.
New investment units were issued in a third-party allotment at a price of JPY 56,939 per unit for the purposeof raising a part of the funds for the acquisition of specified properties.
(Note 10) INV decided at the Board of Directors' Meeting held on August 22, 2019, the reversal of allowance fortemporary difference adjustments for incorporation into unitholders' capital.
(Note 9)Trends in Trading Prices of Investment Securities
The highest and lowest prices (trading prices) in the Real Estate Investment and Trust Securities Section of the Tokyo Securities
Exchange on which the investment securities of INV are listed are as follows.
Real Estate Investment and Trust Securities Section, Tokyo Securities Exchange(Unit: JPY)
PeriodClosing month
HighestLowest32nd fiscal
periodJune
201960,70044,30033rd fiscal
periodDecember
2019
70,60055,70034th fiscal
periodJune
2020
62,30018,870- 22 -

35th fiscal
periodDecember2020
39,80023,50036th fiscal
periodJune
2021
47,65031,4004Distribution PerformanceWith respect to distributions of earnings for the Reporting Period, INV decided that distribution per unit (excluding excess
profit distribution) is JPY 15 by reversing retained earnings.

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

32nd fiscal
periodJan. 1, 2019 toJun. 30, 2019

33rd fiscal
periodJul. 1, 2019 toDec. 31, 201934th fiscal
periodJan. 1, 2020 toJun. 30, 2020

35th fiscal
periodJul. 1, 2020 toDec. 31, 2020

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

21,131,966

23,261,426

13,168,294

13,371,340

8,753,480

11,622,477

12,744,377

12,747,612

12,353,168

8,662,027

9,384,287

10,517,049

420,6811,018,172

91,452

1,656

1,725

69

167

15

9,384,287

10,517,049

420,6811,018,172

91,452

1,656

1,725

69

167

15

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

- 23 -

5

Future operational policy and issues to be addressed
Outlook for the Fiscal Periods Ending December 31, 2021
The Japanese economy is expected to remain in a severe situation caused by COVID-19 infections, and it is necessary toclosely monitor impacts of the pandemic in Japan and overseas, variables in the financial and capital markets, and otherfactors. However, the increase in nationwide vaccinations will hopefully reduce the number of patients with severe
symptoms and death toll, and lead to an improvement in the Japanese economy toward the end of the year.
In the hotel market, accommodation demand related to the Tokyo Olympic Games were limited, as most of thecompetitions were held without spectators. It is expected that inbound demand will not recover for the time being.
However, domestic tourism and business demand are expected to gradually recover as vaccinations progress and the levelof socio-economic activity rises.
In the rental housing market, lifestyle changes due to the impact of COVID-19 infections are expected to affect tenant
trends, and lessors are required to pay close attention to such trends.
(a)Future operational policy and issues to be addressed

Since July 2011, INV has focused on improving the profitability of its portfolio and strengthening its financial base inorder to enhance unitholder value with the Fortress Group as its sponsor. Fortress Group became a member of SoftBank
Group in December 2017 and SoftBank Group owns 100% of issued shares of CIM directly and indirectly as of March
29, 2018. In addition to continued access to Fortress’ global real estate expertise, INV will seek to leverage the resourcesthat are expected to become available through SoftBank Group. SoftBank Group has market-leading expertise intechnology fields such as digital marketing for both mobile and desktop, online payment systems, search engine
optimization, AI and robotics. INV believes that deployment of technology into INV’s real estate assets, especially its
hotels, will enhance the ongoing initiatives to improve its digital marketing, minimize labor costs and increase customer
engagement. For example, INV plans to pursue opportunities to better manage online research, bookings and payments,
improve the process in setting hotel rates and manage overbooking through the use of sophisticated AI algorithms, andreduce labor costs.
In addition to pursuing synergies with SoftBank Group, INV will pay attention to an asset management with an emphasis
on customer safety and security in situations where accommodation demand has declined drastically due to the impact of
COVID-19, and focus on reviewing the operational strategy to restore revenues from hotels. Going forward, INV willcontinue to implement various strategies for further growth and financial stability, including the following measures.
Asset recycling: property acquisitions using the proceeds from salesInternal growth at hotels through reducing costs, stimulating existing demand and creating new demand bycollaborating with hotel operators

Further internal growth at residential properties

Details of the future growth strategy are as follows.
(i)

External growth strategy
New Property Acquisitions

As its basic strategy, INV had moved forward with the acquisition of new properties focusing on hotels, where continued
growth in portfolio revenues would be anticipated and residential properties, especially where rental growth could beachieved, to build a portfolio with a good balance between growth and stability. However, for the time being, it isnecessary to carefully consider the acquisition of hotel properties, which have been greatly affected by the sluggish
demand for accommodation due to COVID-19, while looking for the possibility of acquiring property at an attractive
price.

- 24 -

In regard to hotels, INV will take into consideration demands of business and leisure customers in nearby areas, andleasing contract types when making investment decisions, with the aim of acquiring properties where growth and stabilityof GOP and rental revenue are forecasted to increase.
In regard to residential properties, INV will analyze occupancy rates, rental market trends, the presence of competing
properties among other factors, and consider acquiring properties with strong competitiveness, in which it believes it canachieve increases in rent.
Property Sales
INV considers the possibility of portfolio optimization upon consideration of the portfolio sector composition, geographic
distribution and competitiveness of each property as appropriate in the sluggish accommodation demand due to the impact
of COVID-19.
(ii)

Strategy for internal growth(Hotels)

Of the 84 domestic hotels (Note 1) owned by INV as of the end of the Reporting Period, 75 hotels use a variable rent
scheme. In the variable rent scheme, in principle, INV receives all of gross operating profit (GOP) after deducting
payment of management fees for the hotel operator as rents. For 73 hotels of the 75 hotels, MHM and subsidiaries of
MHM have implemented sophisticated revenue management initiatives seeking to maximize revenue through effectively
taking in the accommodation demand. As a result, INV can directly enjoy the hotel revenue upside through this variable
rent scheme.
In response to the significant reduction in hotel demand, the MHM Group is taking steps to reduce hotel operating
expenses by reviewing its operational strategy. Specific measures include reduction of labor costs as well as taking
government subsidies, cutting payments to service providers such as cleaning vendors, significantly reducing marketing
expenses, utilities and other items under the COVID-19 environment. The MHM Group is vigorously working tostimulate demand from existing domestic customers by providing corporate customers with diverse options including a
new lineup of meeting options highlighting strict measures to reduce the spread of COVID-19 while grasping changes incustomer demand under the “With Corona” environment. In addition, the MHM Group is focusing on creating new
demand, including the provision of day-use telework environments to provide individuals and corporates with a
comfortable telework space and expansion of delivery and take-out services through directly managed restaurants in the
hotel as well as accommodation demand associated with the 14-day voluntary quarantine period after returning to Japan.
For hotels, renovation of rooms and replacement of fixtures and fittings are indispensable to maintain and increase
revenues and operate stably in a planned manner while considering the hotel profit situation, where demand has dropped
significantly as described above.
(Residential properties and others)
INV will continue to strengthen its collaborative ties with property managers and brokers to further boost occupancy rates
and earning capabilities of its properties. With respect to INV’s residential properties, INV will focus on increasing theoccupancy rates and rents for both new lease contracts and lease renewals for all of its properties as well as formulating
net leasing cost reduction policies in order to continue maximizing profits.
Further, the implementation of appropriate maintenance and repair plans is of the utmost importance in maintaining andenhancing the competitiveness and market value of the properties as well as ensuring high tenant satisfaction. Therefore,
INV will continue to monitor current strategic plans with flexible implementation as it sees fit.
(Note 1)

Including Sheraton Grande Tokyo Bay Hotel (the preferred equity interest).

(iii) Financial strategy
INV has been granted a long-term issuer rating of “A+” (Outlook: Negative) from Japan Credit Rating Agency, Ltd. (JCR)- 25 -

as of the date of this document.
As it is difficult to predict when the COVID-19 pandemic will come to an end, for the time being INV will implement
initiatives that restrict an increase in interest payments upon refinancing of existing borrowings and ensure refinancing.
Over the medium to long term, INV will implement financial strategies such as reduction of borrowing costs, extensionof average interest-bearing debt repayment periods, diversification of loan maturity dates and financing measures.

(iv) Compliance risk management
While the executive officer of INV concurrently serves as the representative director at CIM, two supervisory directors(an attorney and a certified public account) oversee the execution of the executive officer’s duties via the Board of
Directors of INV. In addition, the compliance officer of CIM attends each meeting of the Board of Directors in thecapacity of an observer.
CIM has a compliance officer who is responsible for compliance with laws, regulations and other relevant matters as well
as overall management of transactions with sponsor related parties. Moreover, it has in place a compliance committee
which, chaired by such compliance officer, is in charge of deliberating on compliance with laws, regulations and otherrelevant matters as well as transactions with sponsor related parties. Compliance committee meetings are attended byan outside expert (an attorney) who, sitting in as a compliance committee member, conducts rigorous deliberations on
the existence of conflicts of interest in transactions with sponsor related parties as well as strict examinations with respect
to INV’s compliance with laws and regulations.
INV intends to continually take steps to strengthen its compliance structure.
(v)

Initiatives for Sustainability

INV and CIM recognize the importance of environmental, social, and governance (ESG) considerations in real estate
investment management from the viewpoint of sustainability such as economic and social development and contributing
to global environmental conservation, and regard improvement of sustainability as an important management issue.
INV and CIM believe that the incorporation of ESG considerations into the real estate investment management business,
which is our primary business, is essential to maximizing unitholder value over the medium to long term and contributes
to maximizing INV's investment returns.
Thus, INV and CIM have established a “Sustainability Policy” to set basic policies for sustainability and put them into
practice in our daily operations. Under this policy, CIM has formulated the “Energy Conservation Policy”, which
stipulates efforts to improve energy consumption management and energy efficiency in the real estate investment
management business, and the “Greenhouse Gas Emissions Reduction Policy”, which stipulates an operation policy to
reduce carbon emissions. In addition, in order to promote initiatives for ESG throughout the value chain of INV's realestate portfolio, CIM has established the Sustainable Procurement Policy to set guidelines in the real estate investment
management business, pertaining to the content of construction ordered, the criteria for selecting goods to be procured inconnection with construction, and the criteria for selecting and evaluating business partners (suppliers). Furthermore,
CIM conducts sustainability-focused training for all officers and employees, including temporary staff, at least once a
year, to help officers and employees acquire knowledge and raise awareness of sustainability considerations in line withbusiness practices. In addition, as an initiative for its employees, CIM conducts an employee satisfaction survey once
every three years with the aim of improving its working environment. CIM also introduced a paid vaccine leave so that
officers and employees can receive COVID-19 vaccines and deal with any potential side-effects.
As the COVID-19 pandemic continues, APA Hotel Yokohama-Kannai has been used as an accommodation and medical
facility for patients with mild symptoms since August 2020 in terms of social contributions.
INV will continue to recognize its social responsibility to the environment and local communities as a J-REIT withhotels and residences as our core assets, and will proactively implement ESG-friendly investment management andsustainability initiatives that take advantage of asset characteristics and carry out social contribution activities.

- 26 -

6

Significant Subsequent Events(a)

Overview of Sale of Assets

CIM decided to sell trust beneficiary interests in one retail facility, Lexington Plaza Hachiman as below on June 28, 2021
and INV completed the sale on July 2, 2021.
Property
Number

B17(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)

Property Name

Lexington Plaza
HachimanAcquisition
Price(JPY million)

Book Value
Sale Price(JPY million) (JPY million)(Note 1)

3,280

2,982

(Note 2)

3,660

ExpectedGain on Sale
(JPY million)

Transferee(Note 4)(Note 3)590

KubotaHoldings

Book value shows figures as of June 30, 2021.
Sale price does not include transfer related cost, adjustments for fixed asset taxes or city planning taxes, or
national or local consumption taxes.
Expected gain on sale is calculated by deducting the Book Value and estimated transfer related costs from theSale Price.
INV does not have any capital, personnel or transactional relationship of note with the Transferee. In
addition, the Transferee is not a related party of INV/CIM. Furthermore, related persons and affiliates of theTransferee are not related parties of INV/CIM. Moreover, the Transferee is not an interested party, etc. of
INV/CIM as provided in Investment Trust Act.
Amounts are rounded down to the nearest million yen.

(Reference Information)(a)Debt Financing

INV decided to borrow New Syndicate Loan (V) and Term Loan (W) on July 14, 2021 in order to repay (i) the New
Syndicate Loan (R) in the amount of JPY 27,429 million due on July 16, 2021, (ii) the borrowing in the amount of JPY
9,660 million due on July 17, 2021, which is one of the tranches of the New Syndicate Loan (I) with a total outstanding
amount of JPY 28,979 million, (iii) the Term Loan (E) in the amount of JPY 1,582 million due on July 20, 2021, (iv) the
Term Loan (O) in the amount of JPY 666 million due on July 20, 2021 and (v) the borrowing in the amount of JPY 2,359
million due on August 2, 2021, which is one of the tranches of the New Syndicate Loan (J) with a total outstanding
amount of JPY 39,359 million.

- 27 -

(i)New Syndicate Loan (V)LenderBorrowing
Date

Outstanding
Balance(JPY million)

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

July 16,2021

27,429Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Shinsei Bank, Limited
Citibank, N.A., Tokyo Branch

July 19,
2021

9,660

Development Bank of Japan, Inc.

July 20,
2021

666

August 2,
2021

2,269

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Shinsei Bank, Limited
Citibank, N.A., Tokyo Branch(ii)

Floating
interest rates(Note 1)

Floating
interest rates(Note 1)

Floating
interest rates(Note 1)

Floating
interest rates(Note 1)Maturity
Date

Borrowing
MethodJuly 16,
2022

July 16,
2022

Unsecured/ nonguarantee

July 16,
2022

July 16,2022

40,024

Total(Note 1)

Interest Rate(annual rate)

1-month JPY TIBOR (Base Rate) + spread (0.25000%)

Term Loan (W)LenderBorrowing
Date

Outstanding
Balance(JPY million)

The Tokyo Star Bank, Limited

July 20, 2021

1,582Interest Rate(annual rate)

Maturity
Date

Borrowing
MethodFloating
interest rates

July 20, 2024

Unsecured/ nonguarantee(Note 1)

(Note 1)

1-month JPY TIBOR (Base Rate) + spread (0.35000%)- 28 -

Overview of the Investment Corporation
1

Overview of Investment
By Period
Results Dates
Number of issuable
investment units(Unit)
Number ofinvestment units
issued andoutstanding(Unit)
Unitholders’ capital(JPY million)
Number of total
unitholders

2

32nd fiscal
periodAs of Jun. 30,
201933rd fiscal
periodAs of Dec. 31,
201934th fiscal
periodAs of Jun. 30,
202035th fiscal
periodAs of Dec. 31,
2020

36th fiscal
periodAs of Jun. 30,
2021

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

5,666,840

6,096,840

6,096,840

6,096,840

6,096,840

211,092

235,701

235,701

235,701

235,701

32,64534,62642,43938,07433,747

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

Name

Number of units held

The Master Trust Bank of Japan, Ltd.
(trust account)
Custody BANK of Japan, Ltd.
(trust account)
The Nomura Trust and Banking Co., Ltd.
(investment trust account)
Custody BANK of Japan, Ltd.
(security investment trust account)
DEUTSCHE BANK AG, SINGAPORE
A/C CLIENTS (TREATY)
THE BANK OF NEW YORK MELLON
140044SSBTC CLIENT OMNIBUS ACCOUNTSTICHTING PGGM DEPOSITARY
PGGM LISTED REAL ESTATE PFFUNDFJODF GP INV HOLDINGS LLC% of total number of investment
units issued and outstanding

958,447

15.72

609,079

9.99

258,258

4.23

215,818

3.53

194,900

3.19

190,617

3.12

169,549

2.78

145,4622.38

115,931

1.90

GOLDMAN SACHS INTERNATIONAL

100,668

1.65

Total

2,958,729

48.52(Note)

Percentages are rounded down to two decimal places.

- 29 -

3

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

Position

Executive Director

Name

Naoki Fukuda

Yoshihiro Tamura

Supervisory Director
Hiroyuki Fujimoto

Auditor(Note)

Concurrent responsibilities
President and CEO,
Consonant Investment
Management Co., Ltd.
(current position)
Attorney,
Shiba-Daimon Law Office
Statutory Auditor,
BEQONE PARTNERS, Inc.
(current position)
Certified Public Accountant,
CPA Fujimoto OfficeOutside Auditor,
BRYCEN Co., Ltd.
(current position)
Outside Director, the Audit &Supervisory Committee
Member,NEO MARKETING INC.
(current position)

Ernst & Young
ShinNihon LLC-

Directors’ remunerationfor operating period(JPY thousand)
-

2,400

2,400

17,700Executive and supervisory directors do not hold INV’s units either in their names or in the names of third
parties. In addition, while they may be directors of organizations not listed above, those organizations aswell as those listed above have no conflicts of interest with INV.

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

Notes regarding indemnification agreement between Directors and INV
Not applicable.

- 30 -

4

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

Insured Person

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

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

- 31 -

5

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

Delegation category
Asset management company
Asset custody company
General administrative agent administration ofunitholders’ registry, etc.)
General administrative agent(institutional operations (Note 1))
General administrative agent(accounting operations, etc.)

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

Special account management company
General administrative agent(Fiscal agent pertaining to investment corporation
bonds, etc.)(Note 1)

(Note 2)

(Note 3)

Mitsubishi UFJ Trust and Banking Corporation
Limited (Note 2) / Sumitomo Mitsui Trust
Bank, Limited (Note 3)
Mizuho Bank, Ltd. / Sumitomo Mitsui
Banking Corporation(i) Tasks related to the running of general unitholders’ meetings for INV (excluding tasks related to the mailingof general unitholders’ meetings and the receipt and counting of voting forms), (ii) tasks related to the runningof the meetings of the Board of Directors of INV, and (iii) or tasks incidental or related to that mentioned in(i) or (ii) are delegated.
Conducts administrative tasks related to the creation, maintenance, and disposition of transfer savings accountregisters for special accounts of unitholders of the INV before the merger (former Tokyo Growth REIT
Investment Inc.) as well as tasks related to other transfer savings account registers.
Conducts administrative tasks related to the creation, maintenance, and disposition of transfer savings accountregisters for special accounts of unitholders of the former LCP as well as tasks related to other transfer savings
account registers.

- 32 -

Status of Investment Corporation’s Assets under Management
1

Composition of INV’s Assets

Type ofasset

Geographic area

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

Fiscal period ended December 31, 2020(as of December 31, 2020)
Amount held
(JPY million)(Note 2)

Percentage of
total assets(%)

Fiscal period ended June 30, 2021
(as of June 30, 2021)
Amount held
(JPY million)(Note 2)

Percentage of
total assets
(%)

2

0.0

2

0.0

-

-

-

-

35,136

6.8

34,7127.0

35,1396.8

34,7147.0

35,1396.8

34,714

7.0

Greater Tokyo area
Major regional
citiesSubtotal

29,098

5.6

28,937

5.8

13,194

2.6

13,0602.6

42,293

8.2

41,9988.4

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

-

-

-

-

4,689

0.9

4,661

0.9

Total real estate

Residences

4,689

0.9

4,661

0.9

170,270

33.0

169,41734.0

213,16141.3

211,37342.5

383,43174.2

380,790

76.5

Total real estate in trust

430,41483.3

427,450

85.9

Preferred equity interest (Note 5)

17,856

3.5

17,856

3.6

Deposits and other assets

33,0806.4

17,8783.6

516,490100.0

497,899100.0(465,553)(90.1)(462,164)(92.8)

HotelsGreater Tokyo area
Major regional
citiesSubtotal

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

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

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

- 33 -

2

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

Name of property

Book value(JPY million)

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

D200

Westin Grand Cayman Seven Mile
Beach Resort & Spa

29,144

21,528.23

21,528.23

100.0

-

Hotel

D43

Hotel MyStays Gotanda Station

26,26910,137.88

10,137.88

100.0

1.5

Hotel

D60

Hotel MyStays Premier Akasaka

20,3488,620.69

8,620.69

100.0

1.1

Hotel

D44

Hotel Epinard Nasu

19,11437,702.33

37,702.33

100.0

1.0

Hotel

D61

Hotel MyStays Premier Sapporo Park

16,156

21,670.64

21,670.64

100.0

0.9

Hotel

D64

Hotel MyStays Sapporo Aspen

15,342

15,313.17

15,313.17

100.0

1.1

Hotel

D50

Hotel MyStays Shin Osaka ConferenceCenter

12,85513,026.99

13,026.99

100.0

1.0

Hotel

D47

Hotel MyStays Premier Kanazawa

12,68813,250.03

13,250.03

100.0

0.8

Hotel

D82

Hotel MyStays Premier Narita

10,27936,519.70

36,519.70

100.0

0.8

Hotel

D51

Hotel MyStays Premier Omori

9,723

11,849.61

11,849.61

100.0

0.7

Hotel

Total

171,923

189,619.27

189,619.27

100.0

8.9

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

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

- 34 -

3

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

Name of property

Location(Note 1)

Type of asset

A26

Nisshin Palacestage
Daitabashi

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

A28

Growth Maison Gotanda

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

A29

Growth Maison Kameido

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

A30

Emerald House

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

A32

Suncrest Shakujii-Koen

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

A33

Growth Maison ShinYokohama

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

A34

Belle Face UenoOkachimachi

1-27-5 Higashi-Ueno, Taito-ku, Tokyo

A35

Grand Rire Kameido

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

A37

Growth Maison Yoga

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

A38

Route Tachikawa

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

A39

Shibuya-Honmachi Mansion

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

A40

City Heights Kinuta

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

A41

Acseeds Tower
Kawaguchi- Namiki

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

A43

College Square Machida

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

A44

Belair Meguro

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

A45

Wacore Tsunashima I

2-7-47 Tarumachi, Kohoku-ku,
Yokohama-shi, Kanagawa- 35 -

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

Leasable area(m2) (Note 2)

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

1,771.13

1,230

1,080

1,051.50

1,050

826

1,367.96

1,190

939

2,152.31

1,400

1,311

3,029.16

1,150

1,050

1,858.44

1,180

923

1,351.11

1,080

913

1,562.26

1,020

782

1,015.34

794

717

1,368.57

660

635

1,167.50678

704

1,235.93571

653

1,210.74766

507

1,047.75

507

558

557.05633

546

907.46532

510

Name of property

Location(Note 1)

Type of asset

A46

Foros Nakamurabashi

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

A47

Growth Maison Kaijin

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

A48

College Square Machiya

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

A59

Towa City Coop
Shinotsuka II

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

A61

Bichsel Musashiseki

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

A63

Towa City Coop Sengencho

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

A64Royal Park Omachi

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

A65

Lexington Square
Haginomachi

1-15-16 Haginomachi, Miyagino-ku,
Sendai-shi, Miyagi

A66

Visconti Kakuozan

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

A72

Lexington Square
Honjo Azumabashi

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

A73

AMS TOWER Minami 6-Jo

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

A77

Invoice Shin-Kobe
Residence

3-3-8 Ikutacho, Chuo-ku, Kobe-shi,
Hyogo

A78

Cosmo Court Motomachi

3-12-20 Motomachidori, Chuo-ku,
Kobe-shi, Hyogo

A79

Revest Honjin

2-13 Toriidori, Nakamura-ku, Nagoyashi, Aichi

A80

Revest Matsubara

3-13-12 Matsubara, Naka-ku, Nagoyashi, Aichi

A82

Alba Noritake Shinmachi

3-6-8 Noritake Shinmachi, Nishi-ku,
Nagoya-shi, Aichi

A83

Revest Meieki Minami

2-13-33 Meieki-Minami, Nakamuraku, Nagoya-shi, Aichi

A84

Revest Heian

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

A85

Vendir Hamaotsu Ekimae

1-2-15 Hamaotsu, Otsu-shi, Shiga

A86

Salvo Sala

2-6-21 Shimanouchi, Chuo-ku, Osakashi, Osaka

A87

Excellente Kagurazaka

128-1 Yamabukicho, Shinjuku-ku,
Tokyo, and other one parcel- 36 -

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

Leasable area(m2) (Note 2)

Appraisal value
as of the end ofBook value
the Reporting(JPY
Periodmillion)(JPY million)(Note 3)815.77596

497

2,040.27

525

525

871.35574

436

1,627.13

1,310

795

1,220.24

865

565

3,426.36

1,460

1,005

1,929.59

683

385

1,528.58

433

263

705.75298

230

784.74684

412

4,460.56

1,240

878

2,773.71

1,550

1,106

2,310.49

1,200

840

1,933.80

875

575

1,955.40

867

565

1,731.68

792

516

1,634.60

832

506

1,554.03782

509

2,670.66841

484

1,428.12

697

471

701.92735

494

Name of property

Location(Note 1)

A88

Luna Court Edobori

3-4-11 Edobori, Nishi-ku, Osaka-shi,
Osaka

A89

Winntage Kobe Motomachi

7-2-2 Motomachidori, Chuo-ku, Kobeshi, Hyogo

A90

Queen's Court Fukuzumi

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

A91

Corp Higashinotoin

380-1 Kawaranomachi,
Higashinotoindori Nijo Kudaru,
Nakagyo-ku, Kyoto-shi, Kyoto, andother two parcels

A92

Belair Oimachi

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

A93

Siete Minami-Tsukaguchi

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

A94

Prime Life Sannomiya
Isogami Koen

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

A95

HERMITAGE NANBA
WEST

4-10-3 Sakuragawa, Naniwa-ku,
Osaka-shi, Osaka

A96

Century Park Shinkawa 1bankan

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

A97

West Avenue

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

A98

Little River Honmachibashi

1-34 Honmachibashi, Chuo-ku, Osakashi, Osaka

A99

Prime Life Mikage

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

A101

Lieto Court Mukojima

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

A102

Lieto Court Nishi-Ojima

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

A103

Royal Parks Momozaka

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

A104

Royal Parks Shinden

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

A106

Royal Parks Seasir MinamiSenju

3-41-7 Minami-Senju, Arakawa-ku,
TokyoType of asset

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

Subtotal
B17

Lexington Plaza Hachiman

3-1-50 Hachiman, Aoba-ku, Sendaishi, Miyagi

B18

AEON TOWN Sukagawa

105 Furukawa, Sukagawa-shi,
Fukushima

Trust
beneficiaryinterest
Trust
beneficiaryinterest

Subtotal
D01

Hotel MyStays Kanda

1-2-2 Iwamotocho, Chiyoda-ku,Tokyo- 37 -

Trust
beneficiaryinterest

Leasable area(m2) (Note 2)

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

1,185.50632

461

1,433.35

666

438

765.18717

415

1,029.05

559

393

530.60599

379

1,020.86

470

336

789.12495

331

992.76489

312

1,477.62

477

301

794.80358

309

974.81432

274

761.18360

263

2,940.20

2,100

1,620

2,048.28

2,060

1,569

8,776.26

3,280

2,614

15,797.29

5,980

4,688

6,496.86

3,070

2,559

108,572.68

55,024

41,9988,419.15

3,660

2,982

18,440.58

2,380

1,679

26,859.73

6,040

4,661

2,585.72

4,920

2,873

Name of property

Location(Note 1)

Type of asset

D02

Hotel MyStays Asakusa

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

D03

Hotel MyStays Kyoto-Shijo

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

D04

MyStays Shin-Urayasu
Conference Center

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

D05

Hotel MyStays Maihama

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

D06

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

D07

Hotel MyStays NagoyaSakae

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

D08

Hotel MyStays SakaisujiHonmachi

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

D09

Hotel MyStays Yokohama

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

D10

Hotel MyStays Nippori

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

D11

Hotel MyStays FukuokaTenjin-Minami

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

D12

Flexstay Inn Iidabashi

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

D13

Hotel MyStays
Ueno Inaricho

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

D14

Flexstay Inn Shinagawa

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

D15

Flexstay Inn Tokiwadai

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

D16

Flexstay Inn Sugamo

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

D17

Hotel MyStays Otemae

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

D18

Hotel MyStays
Kiyosumi Shirakawa

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

D19

Flexstay Inn Nakanobu P1

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

D20

Flexstay Inn Nakanobu P2

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

APA Hotel
Yokohama-Kannai

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

D22

Hotel MyStays
Hakodate-Goryokaku

26-17 Honcho, Hakodate-shi,
Hokkaido

D23

Flexstay Inn Shirogane

5-10-15 Shirokane, Minato-ku, Tokyo- 38 -

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

Leasable area(m2) (Note 2)

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

3,327.38

4,410

2,485

7,241.51

9,460

5,655

6,232.30

7,200

4,498

2,456.36

6,810

4,617

9,445.32

6,680

3,632

9,064.71

5,530

2,550

4,188.83

3,780

2,299

7,379.43

3,890

2,223

1,719.29

2,510

1,763

3,412.71

5,560

1,428

2,953.38

2,100

1,329

1,150.76

2,010

1,209

1,134.52

1,980

1,181

2,539.75

2,140

1,184

2,089.86

2,260

1,091

4,956.66

2,410

1,136

2,673.64

1,490

868

770.56810

554

391.49390

280

6,568.51

9,930

7,454

7,961.26

3,910

2,699

1,754.06

2,360

2,068

Name of property

Location(Note 1)

Type of asset

D24

Hotel MyStays Haneda

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

D25

Hotel MyStays Kameido P1

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

D26

Hotel MyStays Ueno
Iriyaguchi

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

D27

Hotel MyStays Kameido P2

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

D28

Hotel MyStays Shimizu

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

D29

Super Hotel Shinbashi/
Karasumoriguchi

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

D30

Flexstay Inn Higashi-Jujo

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

D31

Hotel MyStays Utsunomiya

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

D32

Flexstay Inn KawasakiKaizuka

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

D33

Comfort Hotel Toyama

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

Flexstay Inn KawasakiOgawacho

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

D35

Flexstay Inn Ekoda

8-6 Sakaecho, Nerima-ku, Tokyo

D36

Super Hotel Tokyo-JR
Tachikawa Kitaguchi

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

D37

Super Hotel JR Uenoiriyaguchi

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

D38

Hotel MyStays Shinsaibashi

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

D39

Comfort Hotel Kurosaki

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

D40

Comfort Hotel Maebashi

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

D41

Comfort Hotel TsubameSanjo

2-115 Sugoro, Sanjo-shi, Niigata

D42

Comfort Hotel Kitami

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

D43

Hotel MyStays Gotanda
Station (Note 5)

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

D44

Hotel Epinard Nasu

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

D45

Hotel MyStays Fukuoka
Tenjin3-5-7 Tenjin, Chuo-ku, Fukuoka-shi,
Fukuoka- 39 -

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

Leasable area(m2) (Note 2)

Appraisal value
as of the end ofBook value
the Reporting(JPY
Periodmillion)(JPY million)(Note 3)5,400.16

8,390

7,128

4,349.67

7,210

5,282

2,247.92

3,760

3,623

2,793.99

4,820

3,509

3,559.81

2,390

2,067

1,403.89

1,940

1,575

1,714.53

1,300

1,265

11,733.23

2,010

1,192

1,190.57

1,110

882

3,305.64

1,160

897

725.60891

866

3,932.93

4,580

4,780

1,832.97

1,240

1,080

1,279.16

1,180

1,064

1,942.01

2,460

2,987

3,207.60

1,240

1,026

3,660.96

1,120

986

3,099.90

1,100

916

3,009.50

912

767

10,137.88

23,70026,26937,702.33

22,70019,114

5,083.06

7,990

7,784

Location(Note 1)Name of property

Type of asset

D46

Hotel MyStays
Hamamatsucho

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

D47

Hotel MyStays PremierKanazawa

2-13-1 Hirooka, Kanazawa-shi,Ishikawa

D48

Takamatsu Tokyu REI Hotel

9-9 Hyogomachi, Takamatsu-shi,
KagawaD49

Hotel MyStays Premier
Hamamatsucho

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

D50

Hotel MyStays Shin Osaka
Conference Center

6-2-4 Nishinakashima, Yodogawa-ku,
Osaka-shi, Osaka and two other lots

D51

Hotel MyStays PremierOmori

6-11-2 Minami Oi, Shinagawa-ku,
Tokyo and 13 other lots

D52

Beppu Kamenoi Hotel

2160-1 Chuocho, Beppu-shi, Oita and12 other lots

D53

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

D54

Hotel MyStays Yokohama
Kannai

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

D55

Art Hotel Joetsu

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

D56

Art Hotel Hirosaki City

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

D57

Hotel MyStays Oita

1-32, Niagemachi Oita-shi, Oita

D58

Hotel MyStays Gotanda

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

D59

Hotel MyStays Tachikawa

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

D60

Hotel MyStays Premier
Akasaka

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

D61

Hotel MyStays Premier
Sapporo Park

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

D62

Hotel MyStays Ueno East

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

D63

Hotel MyStays Midosuji
Honmachi

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

D64

Hotel MyStays
Aspen

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

D65

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

D66

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

D67

Hotel Sonia Otaru

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

Sapporo- 40 -

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

Leasable area(m2) (Note 2)

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

1,951.90

6,120

7,847

13,250.03

12,80012,688

7,148.17

2,240

2,094

6,151.93

10,4007,967

13,026.99

12,80012,855

11,849.61

9,640

9,723

19,422.08

8,670

7,899

7,267.88

8,180

7,624

4,501.18

5,250

5,144

7,563.60

2,690

2,631

14,826.30

2,740

2,530

3,254.69

1,560

1,488

1,839.77

3,920

4,049

3,844.64

3,320

3,193

8,620.69

23,20020,34821,670.64

16,10016,156

4,396.02

5,110

5,171

3,429.43

3,710

4,871

15,313.17

14,90015,342

17,247.54

9,310

9,560

5,498.49

9,760

8,994

6,509.41

5,700

5,700

Location(Note 1)Name of property

Type of asset

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

Leasable area(m2) (Note 2)

D68

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

D69

Art Hotel Niigata Station

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

D70

Hotel MyStays
Nishiki

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

D71

Hotel Nord Otaru

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

D72

Hotel MyStays Kagoshima
Tenmonkan

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

D73

Art Hotel Asahikawa

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

D74

Hotel MyStays Matsuyama

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

D75

Hotel MyStays
Susukino

Sapporo

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

D76

Hotel MyStays
Nakajima Park

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

D77

Hotel MyStays Sapporo
Nakajima Park Annex

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

D78

Flexstay Inn Sakuragicho

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

D79

MyCUBE by MYSTAYS
Asakusa Kuramae

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

D80

Hotel MyStays Kagoshima
Tenmonkan Annex

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

D81

Hotel MyStays Nayoro

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

D82

Hotel
Narita40 Yokomine Oyama, Narita-shi,
Chiba, and 14 other lots

D83

Art Hotel Morioka

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

D200

Westin Grand Cayman
Seven Mile Beach Resort &Spa

30620 Seven Mile Beach Road, Grand
Cayman, Cayman Islands

The
Leasehold21,528.23

D201

Sunshine Suites Resort

1465 Esterley Tibbetts Highway,
Grand Cayman, Cayman Islands

The
Leasehold6,723.11

MyStays

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

5,931.84

5,410

5,627

10,403.01

5,340

5,410

6,077.99

5,000

5,114

6,047.43

4,050

4,200

7,659.55

3,400

3,376

25,131.84

3,080

2,995

8,274.37

3,160

2,928

2,853.26

2,930

3,010

5,473.41

1,970

2,053

1,775.21

1,520

1,539

1,308.61

1,450

1,406

2,156.70

1,270

1,273

2,047.70

1,190

1,158

1,985.27930

907

36,519.70

10,10010,27916,727.08

5,400

5,469

35,031(USD 316,800
thousand)(Note 6)
6,391
(USD 57,800
thousand)(Note 6)29,144

5,567

Subtotal

572,519.79

471,486

415,505

Total

707,952.20

532,550

462,164(Note 1) “Location” is, in principle, based on the indicated address (jyukyohyoji), except that if the jyukyohyoji system has notbeen implemented for such property, the location is based on the land number (chiban).
(Note 2) Leasable areas of Westin Grand Cayman Seven Mile Beach Resort & Spa and Sunshine Suites Resort indicate the areas
subject to management contract.
(Note 3) “Appraisal value as of the end of the Reporting Period” is the value appraised or researched by Asset Research and- 41 -

Development Inc., Japan Real Estate Institute, JLL Morii Valuation & Advisory K.K., The Tanizawa Sogo Appraisal Co.,
Ltd., Daiwa Real Estate Appraisal Co., Ltd. or CBRE, Inc., in accordance with the Articles of Incorporation of INV andthe regulations of The Investment Trusts Association, Japan.
(Note 4) Individual trust beneficiary interests were integrated into three groups with other trust beneficiary interests when INV
procured funds through debt financing backed by trust assets in July 2011. As a result of disposition of assets anddetachment of trust beneficiary interest from an integrated trust account thereafter, the grouping of trust beneficiaryinterests at the end of the Reporting Period is as follows:
Group 1
Nisshin Palacestage Daitabashi, Growth Maison Shin-Yokohama, Belle Face Ueno-Okachimachi, Growth Maison
Yoga, Shibuya-Honmachi Mansion, and Foros Nakamurabashi.
Group 2
College Square Machida, Belair Meguro, and Wacore Tsunashima I.
Group 3
Suncrest Shakujii-Koen, Grand Rire Kameido, Acseeds Tower Kawaguchi-Namiki, Growth Maison Kaijin, andCollege Square Machiya.
(Note 5) “Appraisal value as of the end of the Reporting Period” indicates appraisal value calculated deeming the owned
portion and the floor expansion portion as one.
(Note 6) “Appraisal value as of the end of the Reporting Period” is converted into JPY using the exchange rate of USD 1 =JPY 110.58, which is the exchange rate on the closing date of the fiscal period (June 30, 2021).

- 42 -

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

Name of property

35th fiscal period(July 1, 2020 to December 31, 2020)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)36th fiscal period(January 1, 2021 to June 30, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)

A26

Nisshin Palacestage
Daitabashi

1

88.2

38,050

0.7

1

90.8

38,886

1.0

A27

Nisshin Palacestage
Higashi-Nagasaki (Note 4)--

44,051

0.8

-

-

-

-

A28

Growth Maison Gotanda

1

100.0

27,708

0.5

1

100.0

27,6960.7

A29

Growth Maison Kameido

1

97.0

35,295

0.6

1

92.5

35,191

0.9

A30

Emerald House

1

93.8

41,900

0.7

1

100.0

47,212

1.2

A32

Suncrest Shakujii-Koen

1

94.1

38,160

0.7

1

100.0

39,4721.0

A33

Growth Maison ShinYokohama

1

94.0

37,260

0.6

1

94.0

38,1301.0

A34

Belle Face UenoOkachimachi

1

90.5

30,727

0.5

1

100.0

33,266

0.9

A35Grand Rire Kameido

1

100.0

26,619

0.5

1

100.0

26,6190.7

A37Growth Maison Yoga

1

94.9

23,025

0.4

1

92.4

22,403

0.6

A38

Route Tachikawa

1

100.0

21,956

0.4

1

100.0

22,167

0.6

A39

Shibuya-Honmachi Mansion

1

100.0

21,467

0.4

1

92.4

20,4950.5

A40City Heights Kinuta

1

83.8

16,726

0.3

1

100.0

18,9180.5

A41

Acseeds Tower KawaguchiNamiki

1

98.2

25,071

0.4

1

94.7

26,363

0.7

A43

College Square Machida

1

100.0

16,609

0.3

1

100.0

16,6090.4

A44

Belair Meguro

1

91.9

16,609

0.3

1

96.0

16,116

0.4

A45

Wacore Tsunashima I

1

95.9

18,629

0.3

1

89.9

18,3150.5

A46

Foros Nakamurabashi

1

95.1

18,537

0.3

1

100.0

19,3660.5

A47

Growth Maison Kaijin

1

91.2

22,400

0.4

1

100.0

23,284

0.6

A48

College Square Machiya

1

100.0

14,924

0.3

1

100.0

14,9240.4

A53

Nishiwaseda Cresent
Mansion (Note 4)--

71,152

1.2

-

-

-

-

A54

Lexington Square
Akebonobashi (Note 4)--

46,241

0.8

-

-

-

-

A59

Towa City Coop Shinotsuka
II

1

96.4

36,213

0.6

1

98.8

35,9620.9

A61

Bichsel Musashiseki

1

94.3

22,996

0.4

1

88.7

23,1990.6- 43 -Name of property

35th fiscal period(July 1, 2020 to December 31, 2020)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)36th fiscal period(January 1, 2021 to June 30, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)

A63

Towa City Coop Sengencho

1

88.4

57,066

1.0

1

95.6

58,174

1.5

A64Royal Park Omachi

1

81.1

22,914

0.4

1

96.7

26,517

0.7

A65

Lexington Square
Haginomachi

1

92.4

16,408

0.3

1

100.0

17,2340.5

A66

Visconti Kakuozan

1

100.0

11,659

0.2

1

76.0

10,8680.3

A71

Lexington Square Daitabashi(Note 4)--30,425

0.5

-

-

-

-

A72

Lexington Square Honjo
Azumabashi

1

97.0

18,697

0.3

1

93.9

18,515

0.5

A73

AMS TOWER Minami 6-Jo

1

86.1

42,972

0.7

1

90.0

43,675

1.1

A76

Neo Prominence (Note 4)--

61,466

1.1

-

-

-

-

A77

Invoice Shin-Kobe Residence

1

94.5

49,193

0.9

1

97.2

50,571

1.3

A78

Cosmo Court Motomachi

1

98.8

39,291

0.7

1

93.8

38,310

1.0

A79

Revest Honjin

1

96.2

31,326

0.5

1

93.8

31,746

0.8

A80

Revest Matsubara

1

80.6

26,307

0.5

1

71.8

24,719

0.6

A82

Alba Noritake Shinmachi

1

90.3

25,634

0.4

1

93.7

26,586

0.7

A83

Revest Meieki Minami

1

75.9

23,754

0.4

1

83.8

23,695

0.6

A84

Revest Heian

1

93.6

23,546

0.4

1

98.4

23,9700.6

A85

Vendir Hamaotsu Ekimae

1

97.8

35,107

0.6

1

94.7

35,0750.9

A86

Salvo Sala

1

91.1

22,828

0.4

1

88.7

23,732

0.6

A87

Excellente Kagurazaka

1

82.4

17,887

0.3

1

85.1

18,3850.5

A88

Luna Court Edobori

1

90.1

19,984

0.3

1

96.0

20,4060.5

A89

Winntage Kobe Motomachi

1

90.8

21,642

0.4

1

94.6

22,7780.6

A90

Queen's Court Fukuzumi

1

93.1

17,341

0.3

1

93.1

17,407

0.5

A91

Corp Higashinotoin

1

93.3

18,174

0.3

1

95.5

18,5250.5

A92

Belair Oimachi

1

84.8

15,270

0.3

1

92.9

14,9750.4

A93

Siete Minami-Tsukaguchi

1

97.5

17,502

0.3

1

95.0

17,3740.5

A94

Prime Life Sannomiya
Isogami Koen

1

93.8

15,067

0.3

1

100.0

15,333

0.4

A95

HERMITAGE NANBA
WEST

1

87.2

14,460

0.3

1

100.0

16,451

0.4- 44 -Name of property

35th fiscal period(July 1, 2020 to December 31, 2020)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)36th fiscal period(January 1, 2021 to June 30, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)

A96

Century Park Shinkawa 1bankan

1

97.7

18,343

0.3

1

93.2

18,334

0.5

A97West Avenue

1

97.5

12,995

0.2

1

95.0

13,2620.3

A98

Little River Honmachibashi

1

84.6

12,658

0.2

1

100.0

13,1180.3

A99

Prime Life Mikage

1

100.0

12,525

0.2

1

100.0

12,5790.3

A100 City Court Kitaichijo (Note 4)--

60,105

1.0

-

-

-

-

A101 Lieto Court Mukojima

1

96.4

56,786

1.0

1

98.0

56,927

1.5

A102 Lieto Court Nishi-Ojima

1

98.8

51,126

0.9

1

94.5

49,957

1.3

A103 Royal Parks Momozaka

1

96.0

161,328

2.8

1

94.6

158,764

4.2

A104 Royal Parks Shinden

1

100.0

217,186

3.8

1

100.0

219,479

5.8

1

94.9

118,702

2.1

1

93.3

118,454

3.1

54

94.2

2,130,029

37.1

54

95.4

1,840,513

48.4

A106

Royal Parks Seasir MinamiSenju
Subtotal

B17

Lexington Plaza Hachiman

1

98.5

159,025

2.8

1

95.8

158,023

4.2

B18

AEON TOWN Sukagawa

1

100.0

141,487

2.5

1

100.0

141,243

3.7

Subtotal

2

99.5

300,512

5.2

2

98.7

299,267

7.9

D01

Hotel MyStays Kanda

1

100.0

0

0.0

1

100.0

7,242

0.2

D02

Hotel MyStays Asakusa

1

100.0

2,942

0.1

1

100.0

7,544

0.2

D03

Hotel MyStays Kyoto-Shijo

1

100.0

5,394

0.1

1

100.0

17,9730.5

D04

MyStays Shin-Urayasu
Conference Center

1

100.0

9,145

0.2

1

100.0

13,471

0.4

D05

Hotel MyStays Maihama

1

100.0

41,855

0.7

1

100.0

13,3020.3

D06

Hotel MyStays Premier
Dojima1

100.0

28,925

0.5

1

100.0

33,3100.9

D07

Hotel MyStays NagoyaSakae

1

100.0

9,840

0.2

1

100.0

13,2170.3

D08

Hotel MyStays SakaisujiHonmachi

1

100.0

0

0.0

1

100.0

8,860

0.2

D09

Hotel MyStays Yokohama

1

100.0

37,166

0.6

1

100.0

8,292

0.2

D10

Hotel MyStays Nippori

1

100.0

726

0.0

1

100.0

6,095

0.2

D11

Hotel MyStays FukuokaTenjin-Minami

1

100.0

3,223

0.1

1

100.0

5,745

0.2

D12

Flexstay Inn Iidabashi

1

100.0

3,648

0.1

1

100.0

5,371

0.1

- 45 -Name of property

35th fiscal period(July 1, 2020 to December 31, 2020)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)36th fiscal period(January 1, 2021 to June 30, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)

D13

Hotel MyStays
Ueno Inaricho

1

100.0

0

0.0

1

100.0

4,345

0.1

D14

Flexstay Inn Shinagawa

1

100.0

2,548

0.0

1

100.0

3,995

0.1

D15

Flexstay Inn Tokiwadai

1

100.0

3,664

0.1

1

100.0

4,937

0.1

D16

Flexstay Inn Sugamo

1

100.0

1,341

0.0

1

100.0

4,623

0.1

D17

Hotel MyStays Otemae

1

100.0

0

0.0

1

100.0

3,995

0.1

D18

Hotel MyStays Kiyosumi
Shirakawa

1

100.0

380

0.0

1

100.0

3,283

0.1

D19

Flexstay Inn Nakanobu P1

1

100.0

2,639

0.0

1

100.0

1,774

0.0

D20

Flexstay Inn Nakanobu P2

1

100.0

1,150

0.0

1

100.0

989

0.0

D21

APA Hotel
Yokohama-Kannai

1

100.0

247,437

4.3

1

100.0

249,996

6.6

D22

Hotel MyStays HakodateGoryokaku

1

100.0

53,619

0.9

1

100.0

7,242

0.2

D23

Flexstay Inn Shirogane

1

100.0

0

0.0

1

100.0

5,431

0.1

D24

Hotel MyStays Haneda

1

100.0

74,035

1.3

1

100.0

18,4680.5

D25

Hotel MyStays Kameido P1

1

100.0

31,597

0.6

1

100.0

17,9850.5

D26

Hotel MyStays Ueno
Iriyaguchi

1

100.0

3,634

0.1

1

100.0

11,4670.3

D27

Hotel MyStays Kameido P2

1

100.0

20,317

0.4

1

100.0

11,4670.3

D28

Hotel MyStays Shimizu

1

100.0

27,732

0.5

1

100.0

7,363

0.2

D29

Super Hotel
Shinbashi/Karasumoriguchi

1

100.0

39,426

0.7

1

100.0

39,426

1.0

D30

Flexstay Inn Higashi-Jujo

1

100.0

0

0.0

1

100.0

4,466

0.1

D31

Hotel MyStays Utsunomiya

1

100.0

31,138

0.5

1

100.0

7,604

0.2

D32

Flexstay Inn KawasakiKaizuka

1

100.0

3,832

0.1

1

100.0

3,742

0.1

D33

Comfort Hotel Toyama

1

100.0

35,928

0.6

1

100.0

35,9280.9

D34

Flexstay Inn KawasakiOgawacho

1

100.0

2,622

0.0

1

100.0

3,017

0.1

D35

Flexstay Inn Ekoda

1

100.0

14,346

0.3

1

100.0

12,2270.3

D36Super Hotel Tokyo-JR
Tachikawa Kitaguchi

1

100.0

31,787

0.6

1

100.0

31,7870.8

D37Super Hotel JR Uenoiriyaguchi

1

100.0

27,275

0.5

1

100.0

27,2750.7- 46 -Name of property

35th fiscal period(July 1, 2020 to December 31, 2020)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)36th fiscal period(January 1, 2021 to June 30, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)

D38

Hotel MyStays Shinsaibashi

1

100.0

0

0.0

1

100.0

7,484

0.2

D39

Comfort Hotel Kurosaki

1

100.0

37,894

0.7

1

100.0

37,894

1.0

D40

Comfort Hotel Maebashi

2

100.0

43,811

0.8

2

100.0

43,811

1.2

D41

Comfort Hotel TsubameSanjo

2

100.0

34,949

0.6

2

100.0

34,9490.9

D42

Comfort Hotel Kitami

1

100.0

30,300

0.5

1

100.0

30,3000.8

D43Hotel MyStays Gotanda
Station1

100.0

54,711

1.0

1

100.0

55,8401.5

D44Hotel Epinard Nasu

1

100.0

851,447

14.8

1

100.0

38,6271.0

D45

Hotel MyStays Fukuoka
Tenjin

1

100.0

8,050

0.1

1

100.0

17,7440.5

D46

Hotel MyStays
Hamamatsucho

1

100.0

2,259

0.0

1

100.0

16,5370.4

D47

Hotel MyStays PremierKanazawa

1

100.0

147,658

2.6

1

100.0

29,2720.8

D48

Takamatsu Tokyu REI Hotel

2

95.8

94,804

1.7

2

95.8

92,6992.4

D49

Hotel MyStays Premier
Hamamatsucho

1

100.0

17,545

0.3

1

100.0

21,6070.6

D50

Hotel MyStays Shin Osaka
Conference Center

1

100.0

17,293

0.3

1

100.0

38,8681.0

D51

Hotel MyStays Premier
Omori

1

100.0

30,000

0.5

1

100.0

27,7630.7

D52

Beppu Kamenoi Hotel

1

100.0

124,660

2.2

1

100.0

36,0310.9

D53

Hotel MyStays Sapporo
Station

1

100.0

8,436

0.1

1

100.0

26,7600.7

D54

Hotel MyStays Yokohama
Kannai1

100.0

36,557

0.6

1

100.0

14,1830.4

D55

Art Hotel Joetsu

1

100.0

46,021

0.8

1

100.0

9,737

0.3

D56

Art Hotel Hirosaki City

1

100.0

34,928

0.6

1

100.0

10,5620.3

D57

Hotel MyStays Oita

1

100.0

18,667

0.3

1

100.0

5,552

0.1

D58

Hotel MyStays Gotanda

1

100.0

5,621

0.1

1

100.0

11,3160.3

D59

Hotel MyStays Tachikawa

1

100.0

31,656

0.6

1

100.0

9,445

0.2

D60

Hotel MyStays Premier
Akasaka
Hotel MyStays Premier
Sapporo Park

1

100.0

11,363

0.2

1

100.0

43,696

1.1

1

100.0

26,762

0.5

1

100.0

34,6230.9

Hotel MyStays Ueno East

1

100.0

3,020

0.1

1

100.0

14,022

0.4

D61
D62

- 47 -Name of property

35th fiscal period(July 1, 2020 to December 31, 2020)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)36th fiscal period(January 1, 2021 to June 30, 2021)
Occupancy
RentalNumber ofrate
revenue
Ratio oftenants(at end of(during
rental(at end of
period)period)revenueperiod)
(%)
(JPY
(%)
(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 3)

Hotel MyStays Midosuji
HonmachiHotel MyStays Sapporo
Aspen

1

100.0

0

0.0

1

100.0

10,541

0.3

1

100.0

10,012

0.2

1

100.0

41,061

1.1

D65

Art Hotel Ishigakijima

1

100.0

67,294

1.2

1

100.0

22,1100.6

D66

Hotel MyStays Fuji Onsen
Resort1

100.0

98,948

1.7

1

100.0

25,9320.7

D67

Hotel Sonia Otaru

1

100.0

62,190

1.1

1

100.0

11,5470.3

D68

Hotel MyStays Kanazawa
Castle1

100.0

33,779

0.6

1

100.0

15,3900.4

D69

Art Hotel Niigata Station

1

100.0

75,623

1.3

1

100.0

24,3500.6

D70

Hotel MyStays Nagoya
Nishiki

1

100.0

1,949

0.0

1

100.0

13,0560.3

D71

Hotel Nord Otaru

1

100.0

33,813

0.6

1

100.0

10,2200.3

D72

Hotel MyStays Kagoshima
Tenmonkan

2

100.0

15,945

0.3

2

100.0

16,2990.4

D73

Art Hotel Asahikawa

1

100.0

33,629

0.6

1

100.0

9,860

0.3

D74

Hotel MyStays Matsuyama

1

100.0

18,200

0.3

1

100.0

11,3860.3

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

1

100.0

1,609

0.0

1

100.0

6,464

0.2

1

100.0

0

0.0

1

100.0

5,524

0.1

1

100.0

0

0.0

1

100.0

3,868

0.1

Flexstay Inn Sakuragicho

1

100.0

12,477

0.2

1

100.0

4,124

0.1

MyCUBE by MYSTAYS
Asakusa Kuramae
Hotel MyStays Kagoshima
Tenmonkan Annex

1

100.0

0

0.0

1

100.0

3,822

0.1

1

100.0

3,088

0.1

1

100.0

3,742

0.1

D81

Hotel MyStays Nayoro

1

100.0

29,039

0.5

1

100.0

3,259

0.1

D82

Hotel MyStays Premier
Narita1

100.0

214,718

3.7

1

100.0

30,4590.8

D83

Art Hotel Morioka

1

100.0

77,635

1.4

1

100.0

20,7670.5

Subtotal

87

99.9

3,307,707

57.6

87

99.9

1,666,395

43.8

Total

143

99.0

5,738,249

100.0

143

99.2

3,806,176

100.0

D63
D64

D75
D76
D77
D78
D79
D80

(Note 1) “Occupancy rate” is calculated by dividing the leased area by leasable area.
(Note 2) “Occupancy rate” and “Ratio of rental revenue” are rounded to one decimal place.
(Note 3) “Rental revenue (during period)” indicates leasing operation revenues during the fiscal period for each property andhas been rounded down to the nearest thousand yen.
(Note 4) The trust beneficiary interests of Nisshin Palacestage Higashi-Nagasaki, Nishiwaseda Cresent Mansion, Neo
Prominence, City Court Kitaichijo, Lexington Square Akebonobashi, and Lexington Square Daitabashi were sold on
December 18, 2020.

- 48 -Name of property

35th fiscal period
36th fiscal period(July 1, 2020 to December 31, 2020)(January 1, 2021 to June 30, 2021)
Management
Management
Occupancy
contract
Occupancy
contract
Ratio ofRatio of
Number ofrate
revenue
Number ofrate
revenuemanagement
management
tenants(at end of(duringtenants(at end of(during
contract
contract(at end of
period)period)(at end of
period)period)revenuerevenueperiod)(%)(JPY
period)
(%)
(JPY
(%)
(%)
(unit)(Note 1)
thousand)(unit)(Note 1)
thousand)(Note 2)
(Note 2)
(Note 2)
(Note 3)(Note 2)
(Note 3)(Note 4)(Note 4)

D200

Westin Grand Cayman Seven
Mile Beach Resort & Spa

1

100.0

-

-

1

100.0

―

―

D201

Sunshine Suites Resort

1

100.0

-

-

1

100.0

5,558

―

Total

2

100.0

-

-

2

100.0

-

-

(Note 1) “Occupancy rate” is calculated using the area subject to management contract.
(Note 2) “Occupancy rate” and “Ratio of management contract revenue” are rounded to one decimal place.
(Note 3) “Management contract revenue” is converted to JPY using the exchange rate at the time of the transaction.
(Note 4) If hotel operating expenses exceed hotel operating revenues, the management contract revenue is set to JPY 0 andthe excess amount is recorded as the management contract loss.

- 49 -

4

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

5

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

6

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

Name

Type

Preferred equity
securities in
Kingdom Special
Purpose Company
Total

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

Notes

Preferred equity 178,458
securities-

17,856-

17,8561)- (Note(Note 2)--

17,856-

17,856-(Note 1) Fair value of the preferred equity securities indicates the acquisition cost.
(Note 2) INV owns 178,458 units of preferred equity securities issued by Kingdom Special Purpose Company (equivalent to49.0% of preferred equity securities issued and outstanding after the issuance of the said preferred equity securities),with the Sheraton Grande Tokyo Bay Hotel as an underlying asset.

- 50 -

7

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

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

Fair value(Note 2)

Interest rate swap
64,648,000
50,476,000(75,395)
Receive floating rate/pay fixed rate
Currency option transaction, short
952,820
USD/CallNon-market(Option fees)(23,788)(15,962)transaction
Currency option transaction, long
952,820
USD/Put(Option fees)
39,407
13,181(Note 1) The contract amount, etc. for interest rate swap are stated based on a notional principal.
(Note 2) Estimation method for fair value
Interest rate swap
Estimated based on the price, etc. presented by the correspondent financial institutions.
Currency option
Indicates fair values of option fees, etc. presented by the correspondent financial
institutions.

8

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

9

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

Country nameAmount held
(JPY million)(Note 1)

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

No. ofproperties(properties)

Japan445,308

508,972

92.5

140

The Cayman Islands

34,712

41,4237.5

2480,020550,396

100.0

142

Total
(Note 1)

(Note 2)

“Amount held” is from the balance sheet (book value after depreciation for real estate and trust beneficiaryinterest in real estate; and book value for preferred equity securities with real estate as underlying assets) as ofJune 30, 2021.
“Appraisal value as of the end of the Reporting Period” indicates the real estate appraisal value as of June 30,
2021, or the research value stated in the real estate research report and the appraisal value of investment securities.
“Appraisal value as of the end of the Reporting Period” for preferred equity securities which INV holds in Japan
indicates acquisition cost since their fair value is deemed extremely difficult to value. “Appraisal value as ofthe end of the Reporting Period” for assets which INV holds in the Cayman Islands indicates the amountconverted to JPY using the exchange rate of USD 1 = JPY 110.58, which is the exchange rate on the closing dateof the fiscal period (June 30, 2021).

- 51 -

Capital Expenditures for Properties Held by INV

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

Total

Payment for
Advancethe Reporting
payments
PeriodFrom July 2021
To December 2021

70,000--

D73 Art Hotel Asahikawa

Asahikawa-shi, Water purifier facility From July 2021
renovation work
To December 2021
Hokkaido

28,000--Sunshine Suites
D201
ResortGrand
Cayman,CaymanIslands

Roof waterproofing
work

From July 2021
To December 2021

24,146--

Name of property

D48

2

Takamatsu Tokyu
REI Hotel

Location

PurposeTakamatsu-shi, Water tankrenovation work
KagawaD42

Comfort Hotel
Kitami

Kitami-shi,
Hokkaido

Air-conditioner's
outdoor units work

From July 2021
To December 2021

22,000--

D06

Hotel MyStays
Premier Dojima

Osaka-shi,
Osaka

Tenant space work

From July 2021
To December 2021

20,000--Capital Expenditures for the Fiscal Period Ended June 30, 2021
The principal construction work constituting capital expenditures for the real estate assets for the fiscal period ended June30, 2021 is as follows. Capital expenditures for the fiscal period totaled JPY 500,498 thousand, and together with JPY
20,011 thousand in repair costs included in this fiscal period’s expenses, construction work totaling JPY 520,509 thousand
was implemented.
Name of property

PurposeTime of implementation

Payment(JPY thousand)Shinagawa-ku, Firefighting facilityTokyorenovation work

From January 2021
To June 2021

25,600D17 Hotel MyStays Otemae

Osaka-shi,
Osaka

Renovation work

From January 2021
To June 2021

21,933

D71 Hotel Nord Otaru

Otaru-shi,
Hokkaido

Water boilers renovation
work

From January 2021
To June 2021

11,000

D71 Hotel Nord Otaru

Otaru-shi,
Hokkaido

Firefighting facility
renovation work

From January 2021
To June 2021

10,500

Lexington Plaza
HachimanSendai-shi,
Miyagi

Air conditioning facility
renovation work

From January 2021
To June 2021

9,970

D51

B17

Hotel MyStays
Premier Omori

Location

421,494

Other construction

500,498

Total- 52 -

3

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

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

Fiscal period

Reserved funds at beginningof period
Amount reserved(Note)
Amount reversed(Note)
Amount carried over for
next fiscal period(Unit: JPY thousand)
32nd
33rd
34th
35th
36th
fiscal period
fiscal period
fiscal period
fiscal period
fiscal period
From January 1, From July 1, 2019 From January 1, From July 1, 2020 From January 1,
2019 to June 30, to December 31, 2020 to June 30, to December 31, 2021 to June 30,
2019
2019
2020
2020
2021
1,814,515

2,039,622

2,543,226

5,485,363

2,610,671

1,215,476

1,621,422

3,908,773

565,299546,287

990,368

1,117,818

966,6363,439,991

407,235

2,039,622

2,543,226

5,485,363

2,610,671

2,749,724(Note) The amount reserved for the relevant fiscal period includes the reserves for acquired properties, and the amountreversed includes the reserves for sold properties.

- 53 -

Overview of Expenses and Liabilities
1

Statement of Operating Expenses
35th fiscal period
July 1, 2020 to December 31, 2020
300,000
25,68467,7494,800
223,692
621,927

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

2(JPY thousand)36th fiscal period
January 1, 2021 to June 30, 2021
300,000
25,20349,0874,800
162,956
542,048

Borrowing Conditions

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

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

Mizuho Bank, Ltd.

5,992,000

5,992,000

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

6,660,000

6,660,000

5,992,000

4,442,000

2,670,000

2,670,000

3,000,000

3,000,000

3,330,000

3,330,000

1,335,000

1,335,000

Jul. 16,
2020

Resona Bank, Limited.

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

0.335

Jul. 16,2021(Note 3)(Note 2)

(Note 2)

Jul. 20,2020

1,000,000

666,000

0.335

Jul. 20,2021(Note 3)

Sumitomo Mitsui Banking
Corporation

Sep. 14,2020

3,000,000

3,000,000

0.335

Sep. 14,2021(Note 3)

328,500

328,500

355,000

355,000

355,000

355,000

334,000

334,000

0.335

Oct. 13,2021(Note 3)(Note 2)167,000

167,000

328,500

328,500(Note 2)

Oct. 13,2020

Sumitomo Mitsui Trust
Bank, Limited

Jan. 22,2021-

3,400,000

0.335

Jan. 22,2022(Note 3)

MUFG Bank, Ltd.

Jan. 22,2021-

850,000

0.335

Jan. 22,2022(Note 3)

Mizuho Bank, Ltd.

-

1,215,500

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

199,000-

447,500-

25,0000.335

Mar. 30,2022(Note 3)-525,000-

270,000-

375,000

The Bank of Fukuoka, Ltd.
The Nomura Trust andBanking Co., Limited
The Shizuoka Bank, Ltd.

Mar. 30,2021- 54 -

Unsecured /with noguarantee

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

Development Bank ofJapan, Inc.

Mizuho Bank, Ltd.
Citibank, N.A., Tokyo
BranchShort-term Shinsei Bank, Limitedloans
Resona Bank, Limited.
The Nomura Trust andBanking Co., Limited
Sumitomo Mitsui Trust
Bank, Limited

Notes

Unsecured /with noguarantee

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

Unsecured /with noguarantee

Type

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

Mizuho Bank, Ltd.

-902,000-

692,000-

681,000-

617,000-

147,000

Mar. 30,
2021-

Citibank, N.A., Tokyo
BranchJun. 15,
2021

Resona Bank, Limited

Jun. 30,2021

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank of
Short-term Japan, Inc.
loans
Resona Bank, Limited

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

Mar. 30,2021

Jan. 22,2016

Averageinterest
Repayment Repayment
rate
Purposedate
method(%)(Note 1)Mar. 30,2022(Note 3)(Note 2)-

0.335

Jun. 30,2021(Note 3)(Note 2)-

349,000

0.335

Jun. 15,2022(Note 3)-570,000

0.335

Dec. 30,2021(Note 3)

34,847,000

44,228,000

3,400,000

-

0.600

Jan. 22,2021(Note 3)(Note 2)

Unsecured /with noguarantee

0.678

Mar. 30,2021(Note 3)(Note 2)

Unsecured /with noguarantee(Note 2)850,000-

1,965,000-

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

1,125,000-

2,180,000-

570,000-

Resona Bank, Limited

570,000-

650,000-

The Bank of Fukuoka, Ltd.

1,333,000-

The Shizuoka Bank, Ltd.

270,000-

The Kagawa Bank, Ltd.

500,000-

1,000,000-

270,000-

Jun. 15,2016

1,000,000

-

0.685

Jun. 15,2021(Note 3)

AEON Bank, Ltd.

Jun. 30,2016

3,000,000

-

0.685

Jun. 30,2021(Note 3)

Tokyo Star Bank, Limited

Jul. 20,2016

1,700,000

1,582,000

0.685

Jul. 20,2021(Note 3)

Mizuho Bank, Ltd.

1,633,000-

Resona Bank, Limited

333,000-

333,000-

333,000-

0.578

Mar. 14,2021(Note 3)

MUFG Bank, Ltd.

The Hiroshima Bank, Ltd.
Long-term The Nomura Trust andloans
Banking Co., Limited（Note 4）
Citibank, N.A., Tokyo
BranchThe Bank of Fukuoka, Ltd.
The Nomura Trust andBanking Co., Limited
The Towa Bank, Ltd.

Mar. 14,2017

Unsecured /with noguarantee

0.335

Mizuho Bank, Ltd.

Mar. 31,
2016

Notes

253,000-

The Shizuoka Bank, Ltd.

200,000-

The Gunma Bank, Ltd.

165,000-- 55 -

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

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

Unsecured /with noguarantee

Type

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

Mizuho Bank, Ltd.

1,733,000

1,733,000

Resona Bank, Limited

333,000

333,000

The Bank of Fukuoka, Ltd.
The Nomura Trust andBanking Co., Limited
AEON Bank, Ltd.

333,000

333,000

333,000

333,000

900,000

900,000

The Towa Bank, Ltd.

253,000

253,000

The Shizuoka Bank, Ltd.
The Daiichi Life InsuranceCo., Ltd.
The Gunma Bank, Ltd.

200,000

200,000

500,000

500,000

165,000

165,000

4,321,000

4,321,000

3,000,000

2,843,000

355,000

355,000

355,000

355,000

333,000

333,000

300,000

300,000

AEON Bank, Ltd.
The Nomura Trust andBanking Co., Limited
The Hiroshima Bank, Ltd.

190,000

190,000

167,000

167,000

167,000

167,000

Mizuho Bank, Ltd.
Long-term
Sumitomo Mitsui Trust
loans（Note 4） Bank, Limited
Sumitomo Mitsui Banking
Corporation
Shinsei Bank, Limited
Citibank, N.A., Tokyo
BranchResona Bank, Limited
Development Bank ofJapan, Inc.
The Bank of Fukuoka, Ltd.

500,000

500,000

500,000

500,000

500,000

500,000

355,000

355,000

355,000

355,000

333,000

333,000

Mizuho Bank, Ltd.
The Daiichi Life InsuranceCo., Ltd.
Shinsei Bank, Limited
Citibank, N.A., Tokyo
BranchResona Bank, Limited
The Bank of Fukuoka, Ltd.

AEON Bank, Ltd.
The Nomura Trust andBanking Co., Limited
The Hiroshima Bank, Ltd.
The Daiichi Life InsuranceCo., Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Sumitomo Mitsui Banking
Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Sumitomo Mitsui Banking
Corporation
Shinsei Bank, Limited
MUFG Bank, Ltd.

Mar. 14,2017

May 29,2017

Oct. 13,2017

Oct. 13,2017

Oct. 13,2017

Oct. 13,2017

Jun. 27,2018

1,500,000

1,500,000

300,000

300,000

190,000

190,000

166,000

166,000

166,000

166,000

500,000

500,000

1,250,000

1,250,000

1,065,000

1,065,000

1,250,000

1,250,000

1,250,000

1,250,000

1,060,000

1,060,000

1,250,000

1,250,000

1,000,000

1,000,000

500,000- 56 -

500,000

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

Notes

0.685

Mar. 14,2022(Note 3)(Note 2)

Unsecured /with noguarantee

0.635

Nov. 29,2021(Note 3)(Note 2)

Unsecured /with noguarantee

0.485

Oct. 13,2021(Note 3)(Note 2)

Unsecured /with noguarantee

0.685

Oct. 13,2022(Note 3)(Note 2)

Unsecured /with noguarantee

0.785

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

Unsecured /with noguarantee

0.885

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

Unsecured /with noguarantee

0.750

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

Unsecured /with noguarantee

Type

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

Mizuho Bank, Ltd.

2,442,000

2,442,000

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

2,220,000

2,220,000

1,998,000

1,998,000

1,110,000

1,110,000

1,000,000

1,000,000

890,000

890,000

2,443,000

2,443,000

2,220,000

2,220,000

1,997,000

1,997,000

1,110,000

1,110,000

1,000,000

1,000,000

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Shinsei Bank, Limited
Citibank, N.A., Tokyo
BranchSumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Shinsei Bank, Limited
Citibank, N.A., Tokyo
Long-term Branch
Sumitomo Mitsui Trust
loans（Note 4） Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.
Shinsei Bank, Limited
Citibank, N.A., Tokyo
BranchThe Nomura Trust andBanking Co., Limited
AEON Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Shinsei Bank, Limited
Citibank, N.A., Tokyo
BranchDevelopment Bank ofJapan, Inc.
Resona Bank, Limited
The Nomura Trust andBanking Co., Limited
AEON Bank, Ltd.

Jul. 17,
2018

Jul. 17,
2018

Jul. 17,
2018

Aug. 2,
2018

Sep. 26,2018

890,000

890,000

2,442,000

2,442,000

2,220,000

2,220,000

1,997,000

1,997,000

1,110,000

1,110,000

1,000,000

1,000,000

890,000

890,000

766,000

766,000

766,000

766,000

467,000

467,000

150,000

150,000

120,000

120,000

30,00030,00060,00060,0002,521,500

2,521,500

2,521,500

2,521,500

2,133,000

2,133,000

1,000,000

1,000,000

684,000

684,000

546,000

546,000

500,000

500,000

445,000

445,000

137,000

137,000

273,000

273,000- 57 -

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

Notes

0.385

Jul. 17,2021(Note 3)(Note 2)

Unsecured /with noguarantee

0.485

Jul. 17,2022(Note 3)(Note 2)

Unsecured /with noguarantee

0.585Jul. 14,2023(Note 3)(Note 2)

Unsecured /with noguarantee

0.385

Aug. 2,2021(Note 3)(Note 2)

Unsecured /with noguarantee

0.385

Sep. 26,
2021(Note 3)(Note 2)

Unsecured /with noguarantee

Type

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

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Shinsei Bank, Limited
Citibank, N.A., Tokyo
BranchDevelopment Bank ofJapan, Inc.
Resona Bank, Limited
The Nomura Trust andLong-term Banking Co., Limited
loans（Note 4） AEON Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.

Balance atBalance at
Borrowing beginning of end of Reportingdate
Reporting Period
Period(JPY thousand) (JPY thousand)Sep. 26,
2018

Sep. 26,
2018

Jan. 22,2019

MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Shinsei Bank, Limited
Resona Bank, Limited
Development Bank ofJapan, Inc.
The Bank of Fukuoka, Ltd.

Mar. 29,2019

The Shizuoka Bank, Ltd.
The Nomura Trust andBanking Co., Limited
The Senshu Ikeda Bank, Ltd.
Aozora Bank, Ltd
The Nishi-Nippon City
Bank, Ltd.
The Tochigi Bank, Ltd.
Kiraboshi Bank, Ltd.
Citibank, N.A., Tokyo
BranchDevelopment Bank ofJapan, Inc.

Mar. 29,2019
Mar. 29,2019
Jun. 17,2019
Jun. 28,2019

3,287,000

3,287,000

3,287,000

3,287,000

2,600,000

2,600,000

1,000,000

1,000,000

833,000

833,000

667,000

667,000

500,000

500,000

445,000

445,000

167,000

167,000

334,000

334,000

3,287,500

3,287,500

3,287,500

3,287,500

2,600,000

2,600,000

1,000,000

1,000,000

833,000

833,000

667,000

667,000

500,000

500,000

445,000

445,000

166,000

166,000

333,000

333,000

850,000

850,000

3,400,000

3,400,000

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

Purpose

Notes

0.485

Sep. 26,
2022(Note 3)(Note 2)

Unsecured /with noguarantee

0.585

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

0.373

Jan. 22,2022(Note 3)(Note 2)

Unsecured /with noguarantee

0.361

Mar. 29,2022(Note 3)(Note 2)

Unsecured /with noguarantee

0.594

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

Unsecured /with noguarantee(Note 3)(Note 2)

386,000

386,000

1,275,000

1,275,000

2,100,000

2,100,000

500,000

500,000

500,000

500,000

1,000,000

1,000,000

333,000

333,000

1,270,000

1,270,000

270,000

270,000

300,000

288,000

1,000,000

1,000,000

1,000,000

921,000

500,000

480,000

1,000,000

961,000

0.885

1,000,000

1,000,000

0.340

1,000,000

1,000,000

0.334- 58 -

Mar. 29,2029
Jun. 17,2022
Jun. 17,2022(Note 3)(Note 3)

Unsecured /with noguarantee

Unsecured /with noguarantee
Unsecured /with no(Note 2)
guarantee
Unsecured /with no(Note 2)
guarantee

Type

LenderMizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
BranchShinsei Bank, Limited

Average
Balance atBalance at
Borrowing beginning of end of Reporting interest
Repayment Repayment Purpose
rate
date
Reporting Period
Perioddatemethod(%)(JPY thousand) (JPY thousand) (Note 1)
571,400
571,400

Jul. 16,
2019

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

Jul. 16,2019

1,464,800

1,464,800

1,331,200

1,331,200

628,600

628,600

1,000,000

1,000,000

200,000

200,000

600,000

600,000

571,400

571,400

1,464,800

1,464,800

1,331,200

1,331,200

628,600

628,600

1,000,000

1,000,000

200,000

200,000

Resona Bank, Limited

600,000

600,000

Mizuho Bank, Ltd.

1,171,400

1,171,400

1,464,800

1,464,800

1,331,200

1,331,200

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Citibank, N.A., Tokyo
Long-term Branchloans(Note 4) Shinsei Bank, Limited

Jul. 16,2019

628,600

628,600

1,000,000

1,000,000

200,000

200,000

2,171,400

2,171,400

1,464,800

1,464,800

1,331,200

1,331,200

628,600

628,600

200,000

200,000

Mizuho Bank, Ltd.

2,170,400

2,170,400

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

1,464,800

1,464,800

1,331,200

1,331,200

628,600

628,600

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

Jul. 16,
2019

Jul. 16,2019

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

Jul. 19,2019

200,000

200,000

1,085,000

1,085,000

987,000

987,000

987,000

987,000

684,000

684,000

500,000

500,000

300,000

300,000

300,000

300,000

100,000

100,000- 59 -

Notes

0.400

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

Unsecured /with noguarantee

0.499

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

Unsecured /with noguarantee

0.563

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

Unsecured /with noguarantee

0.635

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

Unsecured /with noguarantee

0.785Jul. 16,2025(Note 3)(Note 2)

Unsecured /with noguarantee

0.413

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

Unsecured /with noguarantee

Type

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

Average
Balance atBalance at
Borrowing beginning of end of Reporting interest
Repayment Repayment Purpose
rate
date
Reporting Period
Perioddatemethod(%)(JPY thousand) (JPY thousand) (Note 1)
712,000
712,000

Jul. 19,2019

986,000

986,000

986,000

986,000

684,000

684,000

500,000

500,000

300,000

300,000

300,000

300,000

100,000

100,000

0.525

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

Unsecured /with noguarantee

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

Unsecured /with noguarantee

0.635

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

Unsecured /with noguarantee

0.785Jul. 16,2025(Note 3)(Note 2)

Unsecured /with noguarantee

0.785Jul. 16,2025(Note 3)(Note 2)

0.462

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

237,000

Mizuho Bank, Ltd.

712,000

712,000

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

986,000

986,000

986,000

986,000

684,000

684,000

500,000

500,000

300,000

300,000

300,000

300,000

100,000

100,000

375,000

375,000

1,212,000

1,212,000

986,000

986,000

986,000

986,000

684,000

684,000

300,000

300,000

300,000

300,000

100,000

100,000

375,000

375,000

1,211,000

1,211,000

986,000

986,000

986,000

986,000

684,000

684,000

300,000

300,000

300,000

300,000

100,000

100,000

375,000

375,000

700,000

700,000

2,882,000

2,882,000

800,000

662,000

Oct. 15,2019

1,700,000

1,700,000

0.486

Apr. 15,2024(Note 3)

San ju San Bank,Ltd.
(Note 5)Oct. 15,2019

1,000,000

1,000,000

0.635

Apr. 15,2025(Note 3)

The Nishi-Nippon City
Bank, Ltd.

Oct. 15,2019

1,000,000

1,000,000

0.785

Oct. 15,2025(Note 3)

Sumitomo Mitsui Trust
Bank, Limited

Jan. 6,2020

1,550,000

1,550,000

0.417

Jan. 6,2023(Note 3)

Jul. 19,2019

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Long-term Sumitomo Mitsui Trust
Bank, Limited
loans(Note 4) Development Bank ofJapan, Inc.
AEON Bank, Ltd.
The Nomura Trust andBanking Co., LimitedAozora Bank, Ltd.

Jul. 19,2019

Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank ofJapan, Inc.
AEON Bank, Ltd.
The Nomura Trust andBanking Co., LimitedAozora Bank, Ltd.
Tokyo Star Bank, Limited
Mizuho Bank, Ltd.
San ju San Bank,Ltd.
(Note 5)
San ju San Bank,Ltd.
(Note 5)

Jul. 19,2019

Jul. 22,2019
Aug. 28,2019- 60 -

Notes

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

Type

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

Average
Balance atBalance at
Borrowing beginning of end of Reporting interest
Repayment Repayment Purpose
rate
Notes
date
Reporting Period
Perioddatemethod(%)(JPY thousand) (JPY thousand)(Note 1)3,050,000
3,050,000
Unsecured /Jan. 6,
Jan. 6,0.643(Note 3) (Note 2) with no1,000,000
961,000
2020
2025
guarantee
500,000
480,000

Mizuho Bank, Ltd.

634,000

634,000

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

300,000

300,000

1,000,000

1,000,000

333,000

333,000

333,000

333,000

200,000

200,000

Mar. 16,
2020

The Yamaguchi Bank, Ltd.

450,000

411,000

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

850,000

850,000

1,090,000

1,090,000

333,000

333,000

582,000

582,000

Mar. 30,
2020

Long-term
Mizuho Bank, Ltd.
loans
(Note 4)
MUFG Bank, Ltd.
Sumitomo Mitsui Trust
Bank, Limited
Shinsei Bank, Limited
Resona Bank, Limited
The Nomura Trust andBanking Co., LimitedAozora Bank, Ltd.

Mar. 30,2020

628,000

628,000

1,090,000

1,090,000

570,000

570,000

500,000

500,000

270,000

270,000

1,000,000

1,000,000

The Shizuoka Bank, Ltd.

270,000

270,000

The Kagawa Bank, Ltd.

500,000

500,000

The Yamaguchi Bank, Ltd.

550,000

550,000

The Chukyo Bank, Ltd.

0.487

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

Unsecured /with noguarantee

0.385

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

Unsecured /with noguarantee

0.585

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

Unsecured /with noguarantee(Note 2)

1,000,000

961,000

Citibank, N.A., Tokyo
BranchJun. 15,2020

1,000,000

1,000,000

0.335

Jun. 17,2022(Note 3)

Tokyo Star Bank, Limited

Jul. 20,2020

600,000

600,000

0.335

Jul. 20,2022(Note 3)

Subtotal

219,541,000

196,770,000

Total

254,388,000

240,998,000

Unsecured /with noguarantee
Unsecured /(Note 2) with noguarantee(Note 1) Average interest rate shows the interest rate for each loan agreement as of the end of the fiscal period, rounded to three decimal places. In
regards to borrowings which interest rate swap transactions are entered into for the purpose of avoiding risk from interest rate fluctuation,interest rates reflecting the interest rate swap are shown. In regards to borrowings repaid during the Reporting Period, the interest rate foreach loan agreement as of the repayment date rounded to three decimal places is shown.
(Note 2) The funds raised through borrowings are mainly used to acquire trust beneficiary interests in real estate and to repay the borrowings.
(Note 3) The balance at the end of the period will be repaid in full on the repayment date.
(Note 4) Long-term loans includes current portion of long-term loans payable.
(Note 5) The Daisan Bank, Ltd. merged with The Mie Bank, Ltd. and changed its trade name to San ju San Bank,Ltd. on May 1, 2021.

- 61 -

3

Investment Corporation Bonds
Status of investment corporation bonds as of the end of the Reporting Period is as follows.
Bond SeriesFirst Series
Unsecured Investment
Corporation Bonds(Note 1)
Second Series
Unsecured Investment
Corporation Bonds(Note 1)
Third Series
Unsecured Investment
Corporation Bonds(Note 1)Forth Series
Unsecured Investment
Corporation Bonds(Note 1)Fifth Series
Unsecured Investment
Corporation Bonds(Note 1)
Sixth Series
Unsecured Investment
Corporation Bonds(Note 1)

Issue Date

Balance at theBalance at the Interest Rate
beginning of the
Redemption Use of
end of the period
Redemption Date(%)
periodmethodfunds(JPY thousand)(JPY thousand)May 25, 2018

1,000,000

1,000,000

0.400

May 25, 2023

(Note 2)

(Note 3)

May 25, 2018

1,000,000

1,000,000

0.800

May 25, 2028

(Note 2)

(Note 3)October 12, 2018

2,000,000

2,000,000

0.550 October 12, 2023

(Note 2)

(Note 4)

Security/
Guaranty

Unsecured /Unguaranteed
October 28, 2019

1,000,000

1,000,000

0.480 October 28, 2024

(Note 2)

(Note 5)October 28, 2019

2,000,000

2,000,000

0.900 October 26, 2029

(Note 2)

(Note 5)

March 13, 2020

1,200,000

1,200,000

0.850 March 13, 2030

(Note 2)

(Note 4)

Total
8,200,000
8,200,000－－－－－(Note 1) This is with pari passu conditions among specified corporate bonds.
(Note 2) The Investment Corporation Bonds may be purchased and cancelled at any time after the payment date, except for the case where the laws
and regulations or the depository otherwise stipulates.
(Note 3) The funds will be used to acquire trust beneficiary interest in real estate.
(Note 4) The funds will be used to repay borrowings.
(Note 5) The funds will be used in strategic capital expenditure.

4

Short-Term Investment Corporation Bonds

Not applicable
5

Investment Unit Options

Not applicable- 62 -

Acquisitions and Sales for the Fiscal Period Ended June 30, 2021

1

Acquisitions and Sales of Real Estate, Asset-Backed Securities, Infrastructure Assets andInfrastructure Related-Assets

Not applicable2

Acquisitions and Sales of Other Assets

Assets other than those described above were mostly bank deposits or bank deposits in trust.
3

Transaction Price Verification of Specified Assets

Not applicable

4

Transactions with Interested Parties(1) Transactions
Not applicable(2) Commissions Paid
Not applicable
5

Transactions between CIM and Its Other Businesses

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

- 63 -

Financial Condition
1

Assets, Liabilities, Principal, and Profit and Loss

Please refer to “II. Balance Sheet,” “III. Statement of Income and Retained Earnings,” “IV. Statement of
Changes in Net Assets,” “V. Notes to Financial Statements” and “VI. Statement of Cash Distribution.”
2

Changes in the Calculation Method of Depreciation

Not applicable
3

Changes in the Evaluation Method of Real Estate and Infrastructure Assets, etc.

Not applicable4

Beneficiary Certificates of Investment Trusts, etc. Set Up by the Company

Not applicable- 64 -

Other1
NoticeBoard of Directors of Investment Corporation
Of the execution and amendment of the agreement approved by INV’s Board of Directors in the Reporting
Period, principal summary is as follows.

2

Approval date

Item

Summary

March 11, 2021

Conclusion of MOU toamend the MLPM
Agreements with Major
Tenant, MHM GroupOn March 11, 2021, INV entered into a MOU to amend respective
MLPM Agreements for domestic hotels owned by INV and operated by
INV's main tenant, MHM Group. Pursuant to the MOU, we havepartially changed the rent payment conditions and changed the fixed
rent payment amount, the variable rent calculation method, rent
payment method and payment date.

Disclosure of Companies Owning Real Estate Overseas

Not applicable
3

Disclosure of Real Estate Owned by Companies Owning Real Estate Overseas

Not applicable
4

Other

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

- 65 -

II.

Balance Sheet(Unit: JPY thousand)(Reference)
Fiscal period ended
December 31, 2020(as of December 31, 2020)

AssetsCurrent assets:
Cash and bank deposits
Cash and bank deposits in trust
Rental receivables
Deposits paid
Prepaid expenses
Income taxes receivable
Consumption taxes receivable
Other
Total current assets
Non-current assets:
Property and equipment
Buildings
Accumulated depreciation
Buildings, net
Buildings and accompanying facilities
Accumulated depreciation
Buildings and accompanying facilities, net
Structures, at cost
Accumulated depreciation
Structures, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Construction in progress
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Buildings and accompanying facilities in trust
Accumulated depreciation
Buildings and accompanying facilities in trust, net
Structures in trust, at cost
Accumulated depreciation
Structures in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property and equipment, net
Intangible assets
Leasehold rights
Leasehold rights in trust
Total intangible assets
Investment and other assets
Investment securities
Guarantee deposits
Long-term prepaid expenses
Derivatives assets
OthersTotal investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets- 66 -

Fiscal period ended
June 30, 2021
(as of June 30, 2021)

21,210,252
6,295,192
1,717,908
356,534
708,338
16
6,536
30,294,779

6,311,545
6,528,498
1,239,770
441,992
498,14414
268,549
15,288,515

19, 406,379(713,241)
18,693,138
5,293,194(494,825)
4,798,368
1,458
(52)
1,406
1,183,738(175,331)
1,008,406
588,930
164,029,805(18,754,443)
145,275,361
33,102,139(9,866,713)
23,235,425
233,505(98,339)
135,165
2,727,329(1,094,873)
1,632,456
245,560,970
440,929,629

19,406,379(931,763)
18,474,616
5,294,556(647,543)
4,647,013
1,458
(85)
1,373
1,187,082(233,535)
953,547
637,580
164,167,367(21,027,435)
143,139,931
33,384,159(10,817,809)
22,566,350
235,988(104,094)
131,8932,800,865(1,286,332)
1,514,532
245,560,970
437,627,809

10,637,811
14,575,091
25,212,903

10,637,811
14,536,494
25,174,306

17,856,387
1,362,721
681,990
66,417
22,667
19,990,184
486,132,717

17,856,387
1,362,721
494,637
16,216
22,667
19,752,630
482,554,746

62,85362,853
516,490,350

56,65256,652497,899,915

(Unit: JPY thousand)(Reference)
Fiscal period ended
December 31, 2020(as of December 31, 2020)

Fiscal period ended
June 30, 2021
(as of June 30, 2021)

Liabilities
Current liabilities:
Accounts payable

846,058

917,331

Short-term loans payable

34,847,000

44,228,000

Current portion of long-term loans payable

55,601,000

53,315,000

Accounts payable-other

24,701

26,843

Accrued expenses

344,243

249,410605

605

Income taxes payable
Consumption taxes payable

578,858―

Advances received

580,016

597,790

Deposits received
Total current liabilities

11,143

11,083

92,833,627

99,346,064

8,200,000

8,200,000

163,940,000

143,455,000

1,672,037

1,657,369

170,488

94,392

Non-current liabilities:
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits in trust
Derivatives liabilities
Asset retirement obligations

32,97733,197

Total non-current liabilities

174,015,504

153,439,959

266,849,131

252,786,023

235,701,512

235,701,512

6,264,432

6,264,432

Total liabilities
Net assets
Unitholders’ equity:
Unitholders’ capital
Surplus:Capital surplus
Deduction of unitholders' capital surplus
Allowance for temporary differences adjustment(6,130)(6,130)

Other deduction of capital surplus*2(5,524,006)(5,524,006)

Total deduction of unitholders' capital surplus(5,530,137)(5,530,137)

734,294734,294

Retained earnings

13,371,340

8,753,480

Total surplus

14,105,635

9,487,774

249,807,147

245,189,287

Deferred gains or losses on hedges(165,929)(75,395)

Total valuation and translation adjustments(165,929)(75,395)

Capital surplus, net

Total unitholders’ equity
Valuation and translation adjustments:

Total net assets*1

Total liabilities and net assets- 67 -

249,641,218

245,113,891

516,490,350

497,899,915

III.

Statement of Income and Retained Earnings(Unit: JPY thousand)(Reference)
Fiscal period ended
December 31, 2020
(from July 1, 2020 to
December 31, 2020)

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

Fiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)*1*35,738,249
2,602,343
8,340,593

3,806,176
3,806,176*1*2

5,044,533
983,288
300,000
4,800
25,68467,749223,692
6,649,749
1,690,843

4,720,815
884,731300,000
4,800
25,20349,087
162,956
6,147,595(2,341,419)

107
12,878
1,498
81,626
3,272
99,382

96
8,327
8,423

654,685
28,2306,303
472,665
4,007
1,165,892
624,333
624,333
605
605
623,728
12,747,612
13,371,340

624,616
34,513
27,7696,200
508,348
64,6381,266,088(3,599,083)(3,599,083)
605
605(3,599,688)
12,353,168
8,753,480- 68 -

IV.

Statement of Changes in Net Assets(Reference) Fiscal period ended December 31, 2020 (from July 1, 2020 to December 31, 2020)(Unit: JPY thousand)Unitholders’ equity
SurplusCapital surplus
Unitholders’capitalDeduction of capital surplus
Capital surplus

Balance at the beginningof the period
Changes during theperiodDistributions fromsurplus
Net income (loss)
Changes other thanunitholders’ equity(net)
Total changes during theperiodBalance at the end of theperiodAllowance fortemporarydifferences
adjustment

Other
deduction ofcapital surplus

Total
deduction ofcapital surplus

Capital surplus(net)

235,701,512

6,264,432(6,130)(5,524,006)(5,530,137)

734,294

－

－

－

－

－

－

235,701,512

6,264,432(6,130)(5,524,006)(5,530,137)

734,294

Unitholders’ equity
Surplus

Balance at the beginningof the period
Changes during theperiodDistributions fromsurplus
Net income (loss)
Changes other thanunitholders’ equity(net)
Total changes during theperiodBalance at the end of theperiodTotalunitholders’equityValuation and translation adjustments
Total
Deferredvaluation andgains or losses
translation
on hedges
adjustments

Total
net assets

Retained earnings

Total surplus

13,168,294

13,902,588

249,604,100(420,681)(420,681)(420,681)(420,681)

623,728

623,728

623,728

623,728(65,906)(65,906)

249,538,194(100,022)(100,022)(100,022)

203,046

203,046

203,046(100,022)(100,022)

103,024

13,371,340

14,105,635

249,807,147(165,929)(165,929)

249,641,218- 69 -

Fiscal period ended June 30, 2021 (from January 1, 2021 to June 30, 2021)(Unit: JPY thousand)Unitholders’ equity
SurplusCapital surplus
Deduction of capital surplus

Unitholders’capitalAllowance fortemporarydifferences
adjustment

Other
deduction ofcapital surplus

Total
deduction ofcapital surplus

Capital surplus(net)

6,264,432(6,130)(5,524,006)(5,530,137)

734,294

-

-

-

-

-

6,264,432(6,130)(5,524,006)(5,530,137)

734,294

Capital surplus

Balance at the beginningof the period
Changes during theperiodDistributions fromsurplus235,701,512

Net income (loss)
Changes other thanunitholders’ equity(net)
Total changes during theperiodBalance at the end of theperiod235,701,512

Unitholders’ equity
Surplus

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

Totalvaluation andtranslation
adjustments(165,929)(165,929)

Total
net assets

Retainedearnings

Total
surplus13,371,340

14,105,635

249,807,147

Distributions fromsurplus(1,018,172)(1,018,172)(1,018,172)(1,018,172)

Net income (loss)(3,599,688)(3,599,688)(3,599,688)(3,599,688)

Balance at the beginningof the period
Changes during theperiodChanges other thanunitholders’ equity(net)
Total changes during theperiodBalance at the end of theperiod249,641,218

90,53390,53390,533(4,617,860)(4,617,860)(4,617,860)

90,53390,533(4,527,327)

8,753,480

9,487,774

245,189,287(75,395)(75,395)

245,113,891- 70 -

V.

Notes to Financial Statements[Notes Concerning Significant Accounting Policies]
By Period(Reference)
Fiscal period ended December 31, 2020
(from July 1, 2020 to December 31, 2020)

Item
1. Evaluation standards and (a) Other securities
evaluation method ofThose with no fair value
assetsCost method through moving-average method
is used.
(b) Claims generated and debt incurred throughderivative transactions
Market value method is used.
2. Method of depreciationof non-current assets

Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)(a) Other securitiesThose with no fair value
Cost method through moving-average method
is used.
(b) Claims generated and debt incurred throughderivative transactions
Market value method is used.

(a) Property and equipment(a) Property and equipment
The straight-line method is used.
The straight-line method is used.
The useful lives of major property, plant
The useful lives of major property, plantand equipment are as follows.
and equipment are as follows.
Buildings
16-50 years
Buildings
16-50 years
Buildings and accompanying facilities
Buildings and accompanying facilities
5-29 years
5-29 years
Structures
20 years
Structures
20 years
Tools, furniture and fixtures
3-18 years
Tools, furniture and fixtures
3-18 years
Buildings in trust
7-67 years
Buildings in trust
7-67 years
Buildings and accompanying facilities in
Buildings and accompanying facilities intrust
2-33 years
trust
2-33 years
Structures in trust
10-55 years
Structures in trust
10-55 years
Tools, furniture and fixtures in trust
Tools, furniture and fixtures in trust
2-20 years
2-20 years(b) Intangible assets(b) Intangible assets
For fixed-term land lease for business
For fixed-term land lease for businesspurposes in Japan, the straight-line method
purposes in Japan, the straight-line method
based on the lease period is used.
based on the lease period is used.
(c) Long-term prepaid expenses(c) Long-term prepaid expenses
The straight-line method is used.
The straight-line method is used.
3. Accounting treatment of Investment corporation bond issuance costs
Investment corporation bond issuance costs
deferred assets
Investment corporation bond issuance costs
Investment corporation bond issuance costs
are amortized using the straight-line method
are amortized using the straight-line method
over a period up to redemption of theover a period up to redemption of theinvestment corporation bonds.
investment corporation bonds.
4. Method of calculating
Allowance for doubtful accounts
Allowance for doubtful accounts
allowances
To reserve for losses on doubtful accounts, To reserve for losses on doubtful accounts,
allowances are provided for normal receivables allowances are provided for normal receivables
using a rate determined based on past bad debt using a rate determined based on past bad debt
experiences, and specific allowances are experiences, and specific allowances areprovided for accounts with a possibility of provided for accounts with a possibility ofdefault based on the estimated amounts default based on the estimated amounts
considered to be uncollectible by considering considered to be uncollectible by considering
the collectability of accounts on an individual the collectability of accounts on an individual
basis.
basis.
5. Conversion of assets and Receivables and payables denominated in Receivables and payables denominated inliabilities in foreignforeign currencies are translated into yen at the foreign currencies are translated into yen at thecurrency into Japanesespot exchange rate at the end of the fiscal period spot exchange rate at the end of the fiscal periodyendate, and differences arising from the date, and differences arising from thetranslation are treated as a profit or loss.
translation are treated as a profit or loss.
6. Revenue and expense
Accounting treatment of property taxes and Accounting treatment of property taxes andrecognition
other taxes
other taxes
With respect to property taxes, city planning With respect to property taxes, city planningtaxes and depreciable asset taxes, of the tax taxes and depreciable asset taxes, of the tax
amount assessed and determined, the amount amount assessed and determined, the amount- 71 -

By Period
Item

7. Method of hedge
accounting

8. Other significant
matters whichconstitute the basis for
preparation of financial
statements(Reference)
Fiscal period ended December 31, 2020
(from July 1, 2020 to December 31, 2020)
corresponding to the relevant fiscal period is
accounted for as property related expenses.
Of the amounts paid to the seller for
acquisitions of real estate, the amountequivalent to property taxes is capitalized aspart of the acquisition cost of the real estate
instead of being charged as expense. The
amount equivalent to property taxes that was
included as part of the acquisition cost of realestate during the fiscal period ended December
31, 2020 is zero.
(a) Method of hedge accounting
Deferred hedge accounting is used.
(b) Hedging instrument and hedged item
Hedging instrument: interest rate swap
Hedged item: interest on borrowings(c) Hedge policy
INV enters into derivatives transactions forthe purpose of hedging against the risks set
forth in INV’s Articles of Incorporation inaccordance with its risk management
policy.
(d) Method of evaluating hedge effectivenessHedge effectiveness is evaluated bycomparing the cumulative amount ofchanges in cash flows of the hedging
instrument and the cumulative amount ofchanges in cash flows of the hedged item
and verifying the difference in the amountsof change of both the hedged item and thehedging instrument.
(1) Accounting treatment policy of trust
beneficiary interests in real estate
As to trust beneficiary interests in realestate, all accounts of assets and liabilities
within assets in trust, as well as all income
generated and expenses incurred fromassets in trust, are recorded in the relevantbalance sheets and income statement
accounts. Of such items, the following
significant trust assets and liabilities areshown separately on the balance sheet.
(a) Cash and bank deposits in trust(b) Buildings in trust
Buildings and accompanying facilities
in trust
Structures in trust
Tools, furniture and fixtures in trust
Land in trust(c) Leasehold rights in trust(d) Tenant leasehold and security deposits
in trust(2) Accounting treatment of consumption taxes
Transactions subject to consumption taxes
are recorded at amounts exclusive ofconsumption taxes.

- 72 -

Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)
corresponding to the relevant fiscal period is
accounted for as property related expenses.
Of the amounts paid to the seller for
acquisitions of real estate, the amountequivalent to property taxes is capitalized aspart of the acquisition cost of the real estate
instead of being charged as expense. The
amount equivalent to property taxes that was
included as part of the acquisition cost of realestate during the fiscal period ended June 30,
2021 is zero.
(a) Method of hedge accounting
Deferred hedge accounting is used.
(b) Hedging instrument and hedged item
Hedging instrument: interest rate swap
Hedged item: interest on borrowings(c) Hedge policy
INV enters into derivatives transactions forthe purpose of hedging against the risks set
forth in INV’s Articles of Incorporation inaccordance with its risk management
policy.
(d) Method of evaluating hedge effectivenessHedge effectiveness is evaluated bycomparing the cumulative amount ofchanges in cash flows of the hedging
instrument and the cumulative amount ofchanges in cash flows of the hedged item
and verifying the difference in the amountsof change of both the hedged item and thehedging instrument.
(1) Accounting treatment policy of trust
beneficiary interests in real estate
As to trust beneficiary interests in realestate, all accounts of assets and liabilities
within assets in trust, as well as all income
generated and expenses incurred fromassets in trust, are recorded in the relevantbalance sheets and income statement
accounts. Of such items, the following
significant trust assets and liabilities areshown separately on the balance sheet.
(a) Cash and bank deposits in trust(b) Buildings in trust
Buildings and accompanying facilities
in trust
Structures in trust
Tools, furniture and fixtures in trust
Land in trust(c) Leasehold rights in trust(d) Tenant leasehold and security deposits
in trust(2) Accounting treatment of consumption taxes
Transactions subject to consumption taxes
are recorded at amounts exclusive ofconsumption taxes.

[Notes on Changes in Presentation Methods](Reference) Fiscal period ended December 31, 2020
(from July 1, 2020 to December 31, 2020)
Not applicable

Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)
Changes due to the application of “Accounting Standard forDisclosure of Accounting Estimates”“Accounting Standard for Disclosure of Accounting
Estimates” (Corporate Accounting Standards No. 31, March
31, 2020) has been applied from the Reporting Period, and[Notes on Material Accounting Estimates] are described in
the Notes to Financial Statements.

[Notes on Material Accounting Estimates](Reference) Fiscal period ended December 31, 2020
(from July 1, 2020 to December 31, 2020)
Not applicable

Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)
1. Valuation of non-current assets(1) Amount recorded in the financial statements for theReporting Period(JPY million)
Impairment loss
Non-current assets
462,164(Rental properties)
Although no impairment loss was recorded in the Reporting
Period, we recognize it as a disclosure item in view of therisk of having a significant impact on the financial
statements for the next fiscal period.
(2) Information about the content of material accounting
estimates for the identified item
We determine whether or not there are any signs of possible
impairment pertaining to rental properties owned by INV.
If there are any signs, we determine whether or not INV
should recognize the impairment loss. No impairment loss
was recognized for INV’s rental properties, since future
cash flows before discounting exceed the book value ofrental properties.
In estimating future cash flows, it is assumed that theadverse effect by the spread of the COVID-19 infection willcontinue during the fiscal period ending December 2021,
but the pandemic will be gradually contained and thebusiness environment will recover in 2022 onwards.
However, it is difficult to accurately predict when the
spread of the COVID-19 infection will be contained andhow much the impacts will be. Changes in the infection
status may affect the above estimates and INV may incur
impairment loss.

- 73 -

[Notes to the Balance Sheet](Reference) Fiscal period ended December 31, 2020
Fiscal period ended June 30, 2021
(from July 1, 2020 to December 31, 2020)(from January 1, 2021 to June 30, 2021)*1. Minimum net assets as required by Article 67, Paragraph *1. Minimum net assets as required by Article 67, Paragraph
4 of the Act on Investment Trusts and Investment
4 of the Act on Investment Trusts and Investment
Corporations
Corporations
JPY 50,000 thousand
JPY 50,000 thousand*2. Allowance for temporary differences adjustment(Reference) Fiscal period ended December 31, 2020 (from July 1, 2020 to December 31, 2020)
1. Reasons, related assets and amounts(Unit: JPY thousand)Allowance
Balance at theReversal
Relatedset aside
Balance at theReasonInitial amount
beginning ofduringassets, etc.
duringend of period
periodperiodperiodLeaseholdAmortization of(131,332)(6,130)(6,130)rights inleasehold rights
trust(131,332)

Total(6,130)--(6,130)2. Method of reversal(1) Leasehold rights in trust
The corresponding amount is scheduled to be reversed upon sale of the relevant properties, etc.
Fiscal period ended June 30, 2021 (from January 1, 2021 to June 30, 2021)
1. Reasons, related assets and amounts(Unit: JPY thousand)Relatedassets, etc.

ReasonLeaseholdrights intrust

Amortization ofleasehold rights

Total

Initial amount

Balance at the
beginning of
periodAllowance
set aside
duringperiodReversalduringperiodBalance at theend of period(131,332)(6,130)--(6,130)(131,332)(6,130)--(6,130)2. Method of reversal(1) Leasehold rights in trust
The corresponding amount is scheduled to be reversed upon sale of the relevant properties, etc.

- 74 -

[Notes to Statement of Income and Retained Earnings](Reference) Fiscal period ended December 31, 2020
(from July 1, 2020 to December 31, 2020)

Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)*1. Real estate rental revenues and expenses(Unit: JPY thousand)
A. Real estate rental revenues*1. Real estate rental revenues and expenses(Unit: JPY thousand)
A. Real estate rental revenues

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

Rental revenue – real estate
5,530,201(Rent/common area charges) (Note)

208,047(Other revenues)

5,738,249

Total

B. Real estate rental expenses

B. Real estate rental expenses

Property-related expenses

Property-related expenses

206,564
3,806,176(Maintenance costs)

548,085(Maintenance costs)

497,596(Taxes and public dues)

779,062(Taxes and public dues)

603,133(Insurance expenses)

19,719(Insurance expenses)

19,012(Depreciation expenses)

3,564,224(Depreciation expenses)

3,460,619(Other expenses)
Total

133,441(A-B)(Note) Of which, revenue from variable
hotel rents

Total

140,454
4,720,815

C. Real estate rental income
693,715
1,105,021*2. Management contract revenue and expenses(Unit: JPY thousand)Hotel operating revenue
Hotel operating expenses
Management contract revenue (A-B)
Management contract expenses
Management contract losses (A-B)(Note)
Non-life insurance expenses
Depreciation expenses
Other expenses
Total(Other expenses)

5,044,533

C. Real estate rental income

A.
B.
C.
D.

3,599,611

323,764
774,406
450,641
101,221428,5632,862
983,288

E.

Management contract revenue and(983,288)
expenses (C-D)(Note) If hotel operating expenses exceed hotel operating
revenue, the excess amount is recorded as
management contract losses.

- 75 -(A-B)(Note) Of which, revenue from variable
hotel rents(914,639)
37,496*2. Management contract revenue and expenses(Unit: JPY thousand)
A.
B.
C.
D.

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

388,076
740,915352,838
101,793429,164934
884,731

Management contract revenue and(884,731)
expenses (C-D)(Note) If hotel operating expenses exceed hotel operating
revenue, the excess amount is recorded as
management contract losses.

*3. Gain on sales of properties*3. Gain on sales of properties(Unit: JPY thousand)Nisshin Palacestage Higashi-Nagasaki, Nishiwaseda Cresent
Mansion, Neo Prominence and City Court Kitaichijo

Not applicable

Proceeds from sales of properties

7,870,163

Cost of sales of properties

6,183,306

Other expenses on sales of properties
Gain on sales of properties

176,967
1,509,889

Lexington Square Akebonobashi and Lexington Square
Daitabashi
Proceeds from sales of properties

3,270,294

Cost of sales of properties

2,100,964

Other expenses on sales of properties
Gain on sales of properties

76,876
1,092,453(Note) The sale prices of individual properties are not disclosed
as the transferees’ consent has not been obtained fordisclosure.

[Notes to Statement of Changes in Net Assets](Reference) Fiscal period ended December 31, 2020
(from July 1, 2020 to December 31, 2020)

Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

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

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

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

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

Total number of investment units issued andoutstanding

Total number of investment units issued andoutstanding

6,096,840 units- 76 -

6,096,840 units

[Notes Related to Tax Accounting](Reference) Fiscal period ended December 31, 2020(as of December 31, 2020)

Fiscal period ended June 30, 2021
(as of June 30, 2021)

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

312,445

Buildings and other (merger)

307,217

Land (merger)

472,381Land (merger)

472,381

Loss carried forward (Note 1)

532,677

Loss carried forward (Note 1)

1,662,026

Asset retirement obligations

10,374

Asset retirement obligations

10,443

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

113,080

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

125,223

465,374
1,907,065(532,677)(1,374,387)(1,907,065)

461,428
3,039,336(1,662,026)(1,377,309)(3,039,336)

Total- Total(Note 1) The amounts of tax loss carried forward and the (Note 1) The amounts of tax loss carried forward and thedeferred tax assets by carry-forward period are asdeferred tax assets by carry-forward period are as
follows.
follows.
(Unit: JPY thousand)(Unit: JPY thousand)Duewithinone year

Due after
one to twoyears

Due after
two tothree years-

201,976

320,467--(201,976)(320,467)

-

-

-

-

-

Tax loss carriedforward (a)Valuation
allowance
Deferred tax
assetsDue after
three tofour years

Due after
two tothree years

Due after
three tofour years-

522,444---(522,444)

-

-

-

-

-

-

Due after
Due after
five years

Total

Due after
five years

Total

-

1,139,582

1,662,026-(1,139,582)(1,662,026)

-

-

-

four to fiveyears
Tax loss carriedforward (a)Valuation
allowance
Deferred tax
assetsDue after
one to twoyears

Tax loss carriedforward (a)Valuation
allowance
Deferred tax
assetsDue after
four to fiveDuewithinone year

years-

10,232532,677-(10,232)(532,677)---

Tax loss carriedforward (a)Valuation
allowance
Deferred tax
assets(a) Tax loss carried forward is multiplied by statutory tax rate.

2. Significant difference between statutory tax rate and theeffective tax rate
Statutory tax rate
31.46%
Changes in valuation allowance(31.46)%

Others0.10%

Effective tax rate

0.10%

- 77 -(a) Tax loss carried forward is multiplied by statutory tax rate.
(Note 2) Valuation allowance increased by JPY 1,132,271
thousand mainly due to an increase in tax loss
carried forward.
2. Significant difference between statutory tax rate and theeffective tax rate
Disclosure is omitted because INV recorded the loss
before income taxes for the Reporting Period.

[Notes Related to Financial Instruments](Reference) Fiscal period ended December 31, 2020
(from July 1, 2020 to December 31, 2020)

Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

1. Status of financial instruments

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

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

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

The funds raised through borrowings and issuinginvestment corporation bonds are mainly used to acquire
real estate properties or trust beneficiary interest in realestate (including related acquisition costs) and for therefinancing of existing loans. Liquidity risks relating toloan are managed by the finance department of CIM by
preparing and updating plans for funds, and monitoring
the covenants set forth in loan agreements.
(3) Supplemental information regarding market value, etc.
for financial instruments.
The fair value of financial instruments is based on quoted
market prices if available. When quoted market prices
are not available, fair value is determined through areasonable estimate. Since certain assumptions, etc. areused in estimating the fair value, different assumptions,etc. may result in the variance of such value.

- 78 -

The funds raised through borrowings and issuinginvestment corporation bonds are mainly used to acquire
real estate properties or trust beneficiary interest in realestate (including related acquisition costs) and for therefinancing of existing loans. Liquidity risks relating toloan are managed by the finance department of CIM by
preparing and updating plans for funds, and monitoring
the covenants set forth in loan agreements.
(3) Supplemental information regarding market value, etc.
for financial instruments.
The fair value of financial instruments is based on quoted
market prices if available. When quoted market prices
are not available, fair value is determined through areasonable estimate. Since certain assumptions, etc. areused in estimating the fair value, different assumptions,etc. may result in the variance of such value.

2. Estimated fair value of financial instruments.
Book value, fair value and the difference between value asof December 31, 2020 are as follows.
(Unit: JPY thousand)Book Value(1) Cash and bankdeposits(2) Cash and bankdeposits in trust
Total assets(3) Short-term loans(4) Current portion of
long-term loans
payable(5) Investment
corporation bonds(6) Long-term loans
Total liabilities(7) Derivatives

Fair Value

2. Estimated fair value of financial instruments.
Book value, fair value and the difference between value asof June 30, 2021 are as follows.
(Unit: JPY thousand)Difference

21,210,252

21,210,252-

6,295,192

6,295,192-

27,505,445

27,505,445-(34,847,000)(34,847,000)-(55,601,000)(55,601,000)-(8,200,000)(7,467,240)

732,760(163,940,000)(163,940,000)-(262,588,000)(261,855,240)

732,760(104,071)(104,071)-

Book Value(1) Cash and bankdeposits(2) Cash and bankdeposits in trust
Total assets(3) Short-term loans(4) Current portion of
long-term loans
payable(5) Investment
corporation bonds(6) Long-term loans
Total liabilities(7) Derivatives

Fair Value

Difference

6,311,545

6,311,545-

6,528,498

6,528,498-

12,840,044

12,840,044-(44,228,000)(44,228,000)-(53,315,000)(53,315,000)-(8,200,000)(7,556,240)

643,760(143,455,000)(143,455,000)-(249,198,000)(248,554,240)

643,760(78,176)(78,176)-(*1) Items recorded in the Liabilities Section are shown inparenthesis.

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

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

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

- 79 -

(Note 1) Methods to calculate fair value of financial(Note 1) Methods to calculate fair value of financial
instruments.
instruments.
(1) Cash and bank deposits (2) Cash and bank deposits in trust (1) Cash and bank deposits (2) Cash and bank deposits in trust(3) Short-term loans(3) Short-term loans
Due to the short maturities, the book value of these instruments Due to the short maturities, the book value of these instruments
is deemed a reasonable approximation of the fair value, and is deemed a reasonable approximation of the fair value, andtherefore, the book value is used as the fair value.
therefore, the book value is used as the fair value.
(4) Current portion of long-term loans payable (6) Long-termloansLong-term loans with floating interest rates reflecting changes
in market rates within a short-term period is stated at their bookvalue as their book value approximate their fair value.

(4) Current portion of long-term loans payable (6) Long-termloansLong-term loans with floating interest rates reflecting changes
in market rates within a short-term period is stated at their bookvalue as their book value approximate their fair value.

(5) Investment corporation bonds
Fair value is calculated using a method based on market price.

(5) Investment corporation bonds
Fair value is calculated using a method based on market price.

(7) Derivatives(a) Derivatives transactions to which hedge accounting is
not applied
As for derivative transactions for which hedge
accounting is not applied, the contract amount as of
the closing date and the amount equivalent to thenotional principal prescribed in the contract are as
follows.

(7) Derivatives(a) Derivatives transactions to which hedge accounting is
not applied
As for derivative transactions for which hedge
accounting is not applied, the contract amount as of
the closing date and the amount equivalent to thenotional principal prescribed in the contract are as
follows.

(Unit: JPY thousand)(Unit: JPY thousand)

Derivative

Contract amount, etc.
Amount due

Classification transaction

after

type, etc.

Fair value

Valuation(*1)

gains/losses

Derivative

Contract amount, etc.
Amount due

Classification transaction

after

type, etc.

one year
optiontransaction

transaction

short

OTC

fees)

transaction

Currency

short
952,820(23,788)

USD/Call596,860(14,921)(4,323)

19,464(OptionOTC

fees)transaction

Currency

optionoptiontransaction

transaction

long
USD/Put(Optionfees)

gains/losses

Currency

option(Option

Valuation(*1)

one year

Currency

USD/CallFair value

952,820-(23,788)-952,820-

39,407-(15,962)

7,825

13,181(26,226)

long
952,820
39,407

USD/Put

596,860
25,71966,18026,773(*1) Estimation method for fair value(Optionfees)(*1) Estimation method for fair value

Currency option:
Indicates fair values of option fees, etc. presented by
the correspondent financial institutions.

- 80 -

Currency option:
Indicates fair values of option fees, etc. presented by
the correspondent financial institutions.

(b) Derivatives transactions to which hedge accounting isappliedThe contract amount as of the closing date undereach hedge-accounting method and the amountequivalent to the notional principal prescribed in thecontracts are as shown below.

(b) Derivatives transactions to which hedge accounting isappliedThe contract amount as of the closing date undereach hedge-accounting method and the amountequivalent to the notional principal prescribed in thecontracts are as shown below.

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

transaction

accounting

type, etc.

Primary

Contract amount, etc.

(*1)
Amount due

hedged item

after

Fair value(*2)

Method of Derivativehedge

transaction

accounting

type, etc.

Primary(*1)
Amount due

hedged item

after

one yearaccounting
methodInterest rate

swap
Receivefloating(*2)

one yearInterest rate
Principle

Fair value

Principle
Borrowings

69,383,000

65,133,000(165,929)

accounting
methodrate/pay
fixed rate

swap
Receivefloating

Borrowings

64,648,000

50,476,000(75,395)

rate/pay
fixed rate(*1) The contract amount, etc. for interest rate swap are (*1) The contract amount, etc. for interest rate swap arestated based on a notional principal.
stated based on a notional principal.
(*2) Estimation method for fair value(*2) Estimation method for fair value
Interest rate swap:
Interest rate swap:
Estimated based on the price, etc. presented by the
Estimated based on the price, etc. presented by thecorrespondent financial institutions.
correspondent financial institutions.
(Note 2) Financial instruments for which fair value is(Note 2) Financial instruments for which fair value isextremely difficult to value.
extremely difficult to value.
Category
Tenant leasehold andsecurity deposits in trust
Investment securities(Unit: JPY thousand)Book value
1,672,037
17,856,387

Category
Tenant leasehold andsecurity deposits in trust
Investment securities(Unit: JPY thousand)Book value
1,657,369
17,856,387

Tenant leasehold and security deposits in trust have noobservable market price, and it is impracticable to estimate
reasonably their future cash flows because the repayment
dates of those deposits and the timing of the lessee’s exitfrom the property are not certain. Thus, their fair value is
not disclosed.

Tenant leasehold and security deposits in trust have noobservable market price, and it is impracticable to estimate
reasonably their future cash flows because the repayment
dates of those deposits and the timing of the lessee’s exitfrom the property are not certain. Thus, their fair value is
not disclosed.

Since quoted market prices are not available for investment
securities (preferred equity interest), fair value is deemed
extremely difficult to value. Thus, prices are not subject tothe disclosure of fair value.

Since quoted market prices are not available for investment
securities (preferred equity interest), fair value is deemed
extremely difficult to value. Thus, prices are not subject tothe disclosure of fair value.

- 81 -

(Note 3) Remaining schedule of monetary claims after theclosing date of the fiscal period(Note 3) Remaining schedule of monetary claims after theclosing date of the fiscal period

As of December 31, 2020

As of June 30, 2021
(Unit: JPY thousand)Due within
one year

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

Cash and bank deposits

21,210,252--

Cash and bank deposits intrust

6,295,192

-

Total

27,505,445-(Unit: JPY thousand)Due within
one year

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

Cash and bank deposits

6,311,545---

Cash and bank deposits intrust

6,528,498

-

-

-

Total

12,840,044--

Due after three Due after four Due after five
to four years to five years
years

Due after three Due after four Due after five
to four years to five years
years

Cash and bank deposits

-

-

-

Cash and bank deposits

-

-

-

Cash and bank deposits in
trust

-

-

-

Cash and bank deposits in
trust

-

-

-

Total

-

-

-

Total

-

-

-

(Note 4) Repayment schedule of long-term loans and otherinterest-bearing debts after the closing date of the
fiscal period(Note 4) Repayment schedule of long-term loans and otherinterest-bearing debts after the closing date of the
fiscal period

As of December 31, 2020

As of June 30, 2021
(Unit: JPY thousand)Due within Due after one to Due after two
one year
two years to three years
34,847,000--

55,601,000

-

-

-

-

3,000,000

Long-term loans-

48,679,000

42,405,000

Total

90,448,000

48,679,000

45,405,000

Short-term loans
Current portion of longterm loans payable
Investment corporationbonds

Due within
one year
44,228,000--

53,315,000

-

-

-

1,000,000

2,000,000

Long-term loans-

44,807,000

44,589,000

Total

97,543,000

45,807,000

46,589,000

Short-term loans
Current portion of longterm loans payable
Investment corporationbonds

Due after three Due after four Due after five
to four years to five years
years
Short-term loans
Current portion of longterm loans payable
Investment corporation
bonds

-

-

-

(Unit: JPY thousand)Due after one Due after two
to two years to three years

Due after three Due after four Due after five
to four years to five years
years
Short-term loans
Current portion of longterm loans payable
Investment corporation
bonds

-

-

-

-

-

-

1,000,000-

4,200,000---

1,000,000-

4,200,000

Long-term loans

32,920,000

38,936,000

1,000,000

Long-term loans

40,661,000

12,437,000

961,000

Total

33,920,000

38,936,000

5,200,000

Total

41,661,000

12,437,000

5,161,000- 82 -

[Notes Related to Asset Retirement Obligations](Reference) Fiscal period ended December 31, 2020
(from July 1, 2020 to December 31, 2020)

Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

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

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

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

32,756
221
32,977- 83 -

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

32,977219
33,197

[Notes Related to Rental Properties](Reference) Fiscal period ended December 31, 2020
(from July 1, 2020 to December 31, 2020)

Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

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

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

(Unit: JPY thousand)(Unit: JPY thousand)

Use

Residences

Book value
Fair value atBalance at theBalance at the the end of the
Change during
periodbeginning of
end of thethe period
the period
period50,904,075(8,610,346)

Book value
Fair value atBalance at theBalance at the the end of the
Change during
periodbeginning of
end of thethe period
the period
period54,237,000

Residences

42,293,729(295,696)

41,998,033

55,024,000

4,689,226

6,040,000

Commercial
facilities

4,689,226(27,797)

4,661,429

6,040,000(3,042,918)

418,570,646

470,583,650

Hotels418,570,646(3,065,573) 415,505,072

471,486,268(11,702,721)

465,553,602

530,860,650

Total

465,553,602(3,389,066) 462,164,535

532,550,268

Commercial
facilities

4,738,684(49,457)

Hotels421,613,565

Total

477,256,324

42,293,729

Use(Note 1) Book value is the figure calculated by subtracting
amount of accumulated depreciation fromacquisition price (including acquisition-related
costs).
(Note 2) The major factors for the increase for the fiscal
period ended December 31, 2020 were construction
work related to capital expenditures.
(Note 3) The major factors of the decrease were sale ofresidential properties and recording of depreciation.
(Note 4) The fair value as of December 31, 2020 is based on
the appraisal value or survey value provided by
Asset Research and Development Inc., Japan Real
Estate Institute, JLL Morii Valuation & Advisory
K.K., The Tanizawa Sogo Appraisal Co., Ltd.,
Daiwa Real Estate Appraisal Co., Ltd. and CBRE,Inc.

(Note 1) Book value is the figure calculated by subtracting
amount of accumulated depreciation fromacquisition price (including acquisition-related
costs).
(Note 2) The major factors for the increase for the Reporting
Period were construction work related to capital
expenditures.
(Note 3) The major factor of the decrease was recording ofdepreciation.
(Note 4) The fair value as of the end of the Reporting Period
is determined based on the appraisal value or survey
value provided by Asset Research and Development
Inc., Japan Real Estate Institute, JLL Morii
Valuation & Advisory K.K., Tanizawa Sogo
Appraisal Co., Ltd., Daiwa Real Estate Appraisal
Co., Ltd. and CBRE, Inc.

For information related to profits and losses from rental
properties in the fiscal period ended December 31, 2020,
please refer to “Notes to Statement of Income and Retained
Earnings.”

For information related to profits and losses from rental
properties in the fiscal period ended June 30, 2021, pleaserefer to “Notes to Statement of Income and Retained
Earnings.”[Notes Related to Restriction on Asset Management](Reference) Fiscal period ended December 31, 2020
(from July 1, 2020 to December 31, 2020)

Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

Not applicable.

Not applicable.

- 84 -

[Notes Related to Transactions with Related Parties](Reference) Fiscal period ended December 31, 2020 (from July 1, 2020 to December 31, 2020)
1

Interested parties of CIM
NameBusiness or occupation

Percentage ofvoting rights
owned
(%)

Type of transaction

Transaction
amount(JPY thousand)(Note 1)

Account

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

Rental revenues

851,447

Accounts
receivable

402,013

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

Rental revenues

1,389,730

Accounts
receivable

966,790Classification

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

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

Asset Custody Company
Classification

Asset CustodyCompany

Name

Sumitomo Mitsui
Trust Bank,
LimitedBusiness or
occupation

Banking andtrust business

Percentage ofinvestment
units owned(%)

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

Transaction
amount(JPY thousand)(Note 1)
2,998,500
880,000
2,670,000

Account

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

Short-termloans payable

2,998,500

Long-termloans payable

32,718,000

Prepaid expenses

69,946

Finance-related fees
(Note 2)

8,995

Long-term
prepaid expenses

108,663Interest expenses(Note 2)

92,604 Accrued expenses

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

- 85 -

Fiscal period ended June 30, 2021 (from January 1, 2021 to June 30, 2021)
1

Interested parties of CIM

Classification

Name

Business or occupation

Percentage ofvoting rights
owned
(%)

Type of transaction

Transaction
amount(JPY thousand)(Note 1)

Account

Balance at the end of
the period(JPY thousand)(Note 1)Naqua Hotel &Resorts
Hotel
RentalManagement
Rental revenues
38,62742,489business
receivables
Co., Ltd.
Interested(Note 2)
party of CIM
MyStays HotelManagement
Hotel
RentalRental revenues
867,619945,735
Co., Ltd.
business
receivables(Note 2)
(Note 1) Consumption taxes, etc., are not included in transaction amounts, but are included in the balance at the end of the period.
(Note 2) Naqua Hotel & Resorts Management Co., Ltd. and MyStays Hotel Management Co., Ltd. have no capital relationship to be disclosedwith CIM. However, these tenants and operators have received an anonymous partnership investment or investment through funds thatare managed by affiliates of FIG (a subsidiary of SoftBank Group Corp., which is a parent company of CIM directly/indirectly owning
100% of its issued shares). Accordingly, INV treats Naqua Hotel & Resorts Management Co., Ltd. and MyStays Hotel Management
Co., Ltd. as the equivalent to interested parties.

2 Asset Custody Company
Classification

Asset CustodyCompany

Name

Sumitomo Mitsui
Trust Bank,
LimitedBusiness or
occupation

Percentage ofinvestment
units owned(%)

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

Banking andtrust business-Transaction
amount(JPY thousand)(Note 1)
4,464,500
5,580,000

Account
Short-termloans payable
Long-termloans payable

7,463,000
27,138,000

Prepaid expenses

65,412Long-term
prepaid expenses

83,37684,908 Accrued expenses

461

Finance-related fees
(Note 2)

13,393

Interest expenses(Note 2)

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

- 86 -

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

[Notes Related to Per Unit Information](Reference) Fiscal period ended December 31, 2020
(from July 1, 2020 to December 31, 2020)

Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

Net assets per unit

JPY 40,946

Net income per unit

JPY 102

Net income per unit is calculated by dividing net income forthe period by the daily weighted average number of investment
units issued and outstanding. Diluted net income per unit is
not stated, as there are no diluted units.
(Note)Net assets
JPYper
40,929unit

JPY 41,125

JPY
JPY
39,06340,203Net loss perJPY
unit70

JPY 3,748

JPY JPY
1,504-590

Net loss per unit is calculated by dividing net loss for the periodby the daily weighted average number of investment units
issued and outstanding. Diluted net loss per unit is not stated,
as net loss per unit was reported for the period and there are no
diluted units.

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

(Reference) Fiscal period ended December 31, 2020
(from July 1, 2020 to December 31, 2020)
Net income for the period (JPY thousand)Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

623,728

Amounts not attributable to common unitholders(JPY thousand)Net income attributable to common units
623,728(JPY thousand)Average number of investment units during the
6,096,840
period (units)Net
423,917
loss for 4,363,420
the period (JPY
2,952,688
thousand)Amounts not attributable to common unitholders(JPY thousand)Net loss attributable to common units
423,917
4,363,420 2,952,688(JPY thousand)Average number of investment units during the
6,096,840
3,436,572 3,149,936
period (units)- 87 -(3,599,688)(3,599,688)
6,096,840

[Notes Related to Significant Subsequent Events](Reference) Fiscal period ended December 31, 2020
(from July 1, 2020 to December 31, 2020)

Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)

Not Applicable

INV completed the sale of the following property on July 2,
2021.
Property Number: B17
Sale Date

Lexington Plaza Hachiman: July 2, 2021

Location: Sendai-shi, Miyagi

Book Value (Note 1): JPY 2,982 million

Sales Price (Note 2): JPY 3,660 million

Expected Gain on Sale (Note 3): JPY 590 million

Transferee: Kubota Holdings

Legal Form of Asset: Trust beneficiary interest(Note 1)
As of June 30, 2021.
(Note 2)
Sales price does not include transfer related cost,adjustment for property taxes or city planning taxes,
or national or local consumption taxes.
(Note 3)
Expected gain on sale is calculated by deducting thebook value and estimated transfer related costs fromthe sale price.
(Note 4)For an overview of the sold asset, please refer to“Status of Investment Corporation’s Assets underManagement 3. Asset Portfolio of Real Estate, etc.”of “I. Asset Management Report” as describedabove.

[Notes Related to Provision and Reversal of Allowance for Temporary Differences Adjustment](Reference) Fiscal period ended December 31, 2020
(from July 1, 2020 to December 31, 2020)
Not Applicable

Fiscal period ended June 30, 2021
(from January 1, 2021 to June 30, 2021)
Not Applicable- 88 -

VI.

Statement of Cash Distribution(Reference) Fiscal period ended
December 31, 2020
(from July 1, 2020 to
December 31, 2020)
I.

Unappropriated retained
earnings
II . Distributions(Distribution per unit)
III. Retained earnings (deficit)
carried forward
Calculation method of
distribution amountFiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)

JPY 13,371,340,907

JPY 8,753,480,137

JPY 1,018,172,280
JPY 167

JPY 91,452,600
JPY 15

JPY 12,353,168,627

JPY 8,662,027,537

In accordance with the distribution
policy set forth in Article 17,
Paragraph 1 of the Articles ofIncorporation of INV, thedistribution amount shall be theamount which does not exceed theamount of profits but exceeds 90%of the distributable income as
defined in Article 67-15 of theSpecial Taxation Measures Act.
However, in the event that any tax
losses arise, or if no profits havebeen recorded for tax purposes due
to tax losses carried forward, thedistribution amount may be as
reasonably determined by INV.
Pursuant to this policy, INV
determined the distribution amountto be JPY 1,018,172,280, which isthe sum of net income of JPY
623,728,763 and a part of retained
earnings brought forward of JPY
394,443,517. Moreover, INV does
not make excess profit distribution
set forth in Article 17, Paragraph 4of the Articles of Incorporation.

In accordance with the distribution
policy set forth in Article 17,
Paragraph 1 of the Articles ofIncorporation of INV, thedistribution amount shall be theamount which does not exceed theamount of profits but exceeds 90%of the distributable income as
defined in Article 67-15 of theSpecial Taxation Measures Act.
However, in the event that any tax
losses arise, or if no profits havebeen recorded for tax purposes due
to tax losses carried forward, thedistribution amount may be as
reasonably determined by INV.
Although INV recorded a net loss
for the Reporting Period, INV
determined the distribution amountto be JPY 15 per unit by reversing
retained earnings.

- 89 -

Note
Accompanying English financial information, comprising Balance Sheet, Statement of Income and Retained
Earnings, Statement of Changes in Net Assets, Notes to financial statements and Statement of CashDistribution, have been translated from the Japanese financial statements of INV prepared in accordance with
the Act on Investment Trusts and Investment Corporations of Japan.
Under Article 130 of the Act on Investment Trusts and Investment Corporations of Japan, the Japanesefinancial statements for the six months ended June 30, 2021 have been audited by Ernst & Young ShinNihon
LLC, in accordance with auditing standards generally accepted in Japan. However, English translation of
the Japanese language report of independent auditors is not attached herein since the accompanying English
translation of Balance Sheet, Statement of Income and Retained Earnings, Statements of Changes in Net
Assets, Notes to financial statements and Statement of Cash Distribution is unaudited.
Regarding the English audited financial statements, please refer to the “Audited Financial Statements” on thewebsite of Invincible Investment Corporation: https://www.invincible-inv.co.jp/en/ir/library.html- 90 -

VII. Statement of Cash Flows (Reference Information)

Fiscal period ended
December 31, 2020
(from July 1, 2020 to
December 31, 2020)
Cash flows from operating activities
Net income (loss) before taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Loan-related costs
Interest income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) of derivatives
Decrease (increase) in rental receivables
Decrease (Increase) in deposits paid
Decrease (increase) in receivable income taxes
Decrease (increase) in consumption taxes receivable
Increase (decrease) in accounts payable
Increase (decrease) in consumption taxes payable
Increase (decrease) in accounts payable-other
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in deposits received
Decrease in property and equipment in trust due to sale
Others, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Payment into time deposits
Proceeds from time deposits
Purchases of property and equipment
Purchases of property and equipment in trust
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Other, net
Net cash used in investing activities
Cash flows from financing activities
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Borrowing related expenses
Payment of distributions of earnings
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period*1(Unit: JPY thousand)Fiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)

624,333
3,992,787
6,303
472,665(107)
682,915(30)(81,626)(1,413,044)(94,026)
129,597
831,675
640,046
578,858(256,749)
68,632(420,200)(20,746)
8,284,271(104,384)
13,921,171
107(680,307)(605)
13,240,366(3,599,083)
3,889,784
6,200
508,348(96)
652,386
51
64,638478,137(85,458)1(268,549)
17,621(578,858)
16,542(89,059)
17,773(59)0
129,029
1,159,352
96(655,468)(605)
503,374(1,328,500)(139,812)(358,986)(99,182)
26,461
109,484(1,790,534)(2,000,000)
1,328,500(53,356)(453,398)(53,590)
38,922(1,192,923)

34,847,000(880,000)
600,000(35,447,000)(287,367)(424,124)(1,591,491)
30
9,858,370
16,318,574
26,176,945

11,835,000(2,454,000)(22,771,000)(237,904)(1,019,396)(14,647,300)(51)(15,336,901)
26,176,945
10,840,044(Note) Statement of cash flows is prepared based on the Regulation on the Terminology, Forms, and Preparation Methods ofFinancial Statements (Ministry of Finance Order No. 59 of 1963, as amended) and attached as reference. This
statement of cash flows is not subject to audit by an auditor pursuant to the Article 130 of the Investment Trust Act, andthus has not been audited by an auditor.

- 91 -

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

Fiscal period ended
December 31, 2020
(from July 1, 2020 to
December 31, 2020)
Cash and cash equivalents as stated in
the Statement of Cash Flows consistof cash on hand and cash in trust,
floating deposits, deposits in trust andshort-term investments that are veryliquid and realizable with a maturityof three months or less whenpurchased and that are subject toinsignificant risks of changes invalue.

Fiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)
Cash and cash equivalents as stated in
the Statement of Cash Flows consistof cash on hand and cash in trust,
floating deposits, deposits in trust andshort-term investments that are veryliquid and realizable with a maturityof three months or less whenpurchased and that are subject toinsignificant risks of changes invalue.

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

Fiscal period ended
December 31, 2020
(from July 1, 2020 to
December 31, 2020)(As of December 31, 2020)(Unit: JPY thousand)Cash and bank
21,210,252
deposits
Cash and bank6,295,192
deposits in trust
Time deposits withover three months(1,328,500)
deposit period
Cash and cash
26,176,945
equivalents- 92 -

Fiscal period ended
June 30, 2021
(from January 1, 2021 toJune 30, 2021)(As of June 30, 2021)(Unit: JPY thousand)Cash and bank
6,311,545
deposits
Cash and bank6,528,498
deposits in trust
Time deposits withover three months(2,000,000)
deposit period
Cash and cash
10,840,044
equivalents

“My Number” is issued to all citizens and residents of Japan and is necessary for taxation purposes oninvestment units. Thus, it is necessary for unitholders to notify their brokerage with their “My
Number.”Usage of “My Number” in investment units-related affairs“My Number” is recorded on the payment record and the payment record is filed with the relevant tax
authority pursuant to laws and regulations.
Major payment record*Payment record regarding cash distribution

Usage of “My Number” also includes taxation-related procedures on investment units. It is necessary
for unitholders to notify your “My Number” to your brokerage, etc.
Inquiries regarding notifying “My Number”⚫
⚫

Unitholders whose investment units are managed in brokerage accounts
Each brokerage
Unitholders who have no brokerage accountTransfer Agent Department, Sumitomo Mitsui Trust Bank, Limited
Toll-free Telephone Number 0120-782-031- 93 -Domestic Portfolio Map (As of August 31, 2021)

No. of Properties(Note 1)139

Others(Note 1)

No. ofResidential
Properties

84

54

1

No. ofHotels(Note 1) Including Sheraton Grande Tokyo Bay Hotel, underlying assets of TMK investment(Note 2) For properties corresponding to the number and their overview,please refer to pages [28-30] .

- 94 -

- 95 -

Financial Conditions
INV has successfully refinanced a total of JPY 41.6 billion by August 2021. We have enough cash on handto pay interest expenses and endeavor to preserve cash and provide flexibility given the uncertainty in thecurrent economic and tourism environment.

◼ Investment Corporation Bonds
Bonds name

IssuedDate

Term(years)Balance(JPY mn)

AnnualInterest Rate

Rating

1st Series Investment
Corporation Bonds

May 25, 2018

5.0

1,000

0.40%

A+ (JCR)

2nd Series Investment
Corporation Bonds

May 25, 2018

10.0

1,000

0.80%

A+ (JCR)

3rd Series Investment
Corporation Bonds

Oct. 12, 2018

5.0

2,000

0.55%

A+ (JCR)

4th Series Investment
Corporation Bonds

Oct. 28, 2019

5.0

1,000

0.48%

A+ (JCR)

5th Series Investment
Corporation Bonds

Oct. 28, 2019

10.0

2,000

0.90%

A+ (JCR)

6th Series Investment
Corporation Bonds

Mar. 13, 2020

10.0

1,200

0.85%

A+ (JCR)

Total

8,200

◼ Lender Formation (as of August 31, 2021)- 96 -

◼ LTV (based on appraisal value)(Note 1) and Weighted Average Interest Rate(Note 2)◼ DSCR(Note 3)◼ Rating
Rating Agency

Rating Object

RatingOutlookJapan Credit Rating
Agency, Ltd.

Long-term
Issuer Rating

A+

Negative(Note 1)

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

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Overview of Unitholders/Investment Units

Historical Unit Price(Note)

Unit prices indicate the closing price on the TSE market. TSE REIT Index has been indexed, assuming the closing price of TSE REIT Index asof January 4, 2013, as the same as the closing price of INV’s unit on the same day.

.

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

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Annual Schedule- 99 -

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

Correspondence(Telephone Assistance)

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

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

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Notification(Notice of Dividend Payment)
The 2008 amendment of the Special Taxation Measures Law (Act No. 23 of April 30, 2008) mandated thesending to unitholders a “Notice of Dividend Payment” stating the dividend amount, amount of taxes
withheld, and the like for dividends payable in and after January 2009. If you collect dividends via a“Dividends Receipt,” please view the “Notice of Dividend Payment” sent alongside it. If you have specified
a wire transfer, the “Dividend Statement” delivered with the dividend payment is the “Notice of Dividend
Payment.”(Characters for Addresses and Names of Unitholders)With the digitization of investment securities, if there are Chinese characters in your address or names that
the Japan Securities Depository Center (JASDEC) has not included in the transfer system, JASDEC registers
them in the Investors’ Registry by converting part or all of the characters to those that JASDEC has includedin the transfer system or to katakana. Please be aware that correspondence may be addressed using
characters that JASDEC has included in the transfer system. Please inquire with your brokerage regarding
characters registered for your address and name.
Inquiries
For inquiries regarding INV: Consonant Investment Management Co., Ltd.
TEL: 03-5411-2731 (Main)
Weekdays 9:00-17:00- 101 -