August 25, 2011
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Naoki Shibatsuji, Executive Director
Nihon-bashi Nishikawa Bldg.
1-5-3 Nihon-bashi, Chuo-ku, Tokyo, Japan(Securities code: 8963)
URL: http://www.invincible-inv.co.jp/eng/
Asset manager:
Consonant Investment Management Co., Ltd.
Naoki Shibatsuji, CEOContact: Michiko Ishibachi,Manager in charge of Investor Relations(Tel. +81-3-3272-7311)

Notice concerning Revision of Forecasted Results for
16th Fiscal Period Ended June 2011 and 17th Fiscal Period Ending December 2011
Invincible Investment Corporation (INV) announces the revision of its forecasted results for the 16thfiscal period ended June 2011 (January 1, 2011 to June 30, 2011) and 17th fiscal period endingDecember 2011 (July 1, 2011 to December 31, 2011) announced in the “Notice concerning
Revision of Forecasted Results for 16th Fiscal Period Ended June 2011, and Forecasted Resultsand Distribution for 17th Fiscal Period Ending December 2011” dated July 15, 2011. Details are asfollows.
1.

Revision of forecasted results for 16th fiscal period (January 1, 2011 to June 30, 2011)
OperatingOperating
OrdinaryNet
revenues
incomeincome
incomePrevious forecast
Million JPY
Million JPY
Million JPY
Million JPY
(A)
2,272
765
−102−102(July 15, 2011)
Million JPY
Million JPY
Million JPY
Million JPY
Revised forecast
(B)
2,277
800
−52
−1,308Million JPY
Million JPY
Million JPY
Million JPY
Amount of variance(B) – (A)43449
−1,205%%%%Rate of variance[(B) − (A)] ÷ (A)
0.2
4.5––(Reference)
Million JPY
Million JPY
Million JPY
Million JPY
Actual results (Note 3)
5,348−5,241−7,0784,757(15th fiscal period)

1Previous forecast(A)(July 15, 2011)

JPY

Exceeding
profitdistributionper unit
JPY200

Revised forecast(B)

Distribution
per unit(excluding exceeding
profit distribution per unit)

Amount of variance(B) – (A)Rate of variance[(B) − (A)] ÷ (A)(Reference)
Actual results (Note 3)(15th fiscal period)

Reversal ofearned surplus

Total
distribution
amountMillion JPY

Million JPY–230127

JPY
200
JPY
0%–JPY–JPY–%–

Million JPY
1,435
Million JPY
1,205%
524.6

Million JPY
127Million JPY–%–JPYJPYMillion JPY

Million JPY

435––276(Note 1)

The number of investment units issued and outstanding at the end of the fiscal period: 636,695 units(Note 2)

Total distribution amount (revised forecast) for the 16th fiscal period is calculated using the following
formula:Total distribution amount (JPY 127 million) =Net income (JPY −1,308 million) + Reversal of earned surplus (JPY 1,435 million)(Note 3)The period of operation of the 15th fiscal period is 365 days from January 1, 2010 to December 31,
2010.

(Note 4)

Figures are rounded down to the indicated unit and percentages are rounded to one decimal place.
The same shall apply hereinafter.

2.

Revision of forecasted results for 17th fiscal period (July 1, 2011 to December 31, 2011)
OperatingOperating
OrdinaryNet
revenues
incomeincomeincomePrevious forecast
Million JPY
Million JPY
Million JPY
Million JPY
(A)
2,274
−1,283−4,483−3,509(July 15, 2011)
Million JPY
Million JPY
Million JPY
Million JPY
Revised forecast
(B)
2,274
−516
−3,716−2,756
Million JPY
Million JPY
Million JPY
Million JPY
Amount of variance(B) – (A)–767
767752%%%%
Rate of variance[(B) − (A)] ÷ (A)––––2

Previous forecast(A)(July 15, 2011)

JPY

Exceeding
profitdistributionper unit
JPY200

Revised forecast(B)

JPY200
JPY–%–Distributionper unit
(excluding exceeding
profit distribution per unit)

Amount of variance(B) – (A)Rate of variance[(B) − (A)] ÷ (A)(Note 1)

Reversal ofearned surplus

Total
distribution
amountMillion JPY

Million JPY

–

3,779

269

JPY–JPY–%–

Million JPY
3,026
Million JPY
752%
19.9

Million JPY
269
Million JPY–%–INV assumes number of investment units issued and outstanding of 1,348,292 units, which is thenumber of investment units issued and outstanding as of today, and assumes there will be noadditional issuance of investment units thereafter through to the end of the 17th fiscal period.
(Note 2)

Total distribution amount (forecast) for the 17th fiscal period is calculated using the following
formula:Total distribution amount (JPY 269 million) =Net income (JPY −2,756 million) + Reversal of earned surplus (JPY 3,026 million)

3.

Reason for revision of forecasted results for 16th fiscal period and 17th fiscal period
As most of the performance results for the 16th fiscal period have become clear during thecourse of closing procedures, the revision to the forecasted results has been decided to bemade at this time due to the fact that a review of the forecast revealed that a 30% or morechange is expected from the forecasted net income for the 16th fiscal period and 17th fiscal
period that was announced on July 15, 2011.
The main factors for fluctuations are as follows:<16th fiscal period>(1) Occupancy rates and rents, etc. hovered at a level above the previously-assumed leveland so rental revenues are expected to increase JPY 4 million.
(2) Facility management fees (repair costs) and other expenses fell to a level below thepreviously-assumed level and so property related expenses are expected to decrease
JPY 36 million. However, this amount includes JPY 6 million associated with the repair
costs arising from the Great East Japan Earthquake.
(Note) The recognizing of repair costs arising from the Great East Japan Earthquake is changed from operating
expenses to extraordinary loss in this revised forcast.

(3) Finance related costs fell to a level below the previously-assumed level and so
non-operating expenses are expected to decrease JPY 13 million.
(4) Concerning New Edobashi Building (the “Property”), which is planned to be sold during
the 17th fiscal period, impairment loss of JPY 1,249 million is expected to be posted
following the assumed sale price being set at a level below the previously-assumed
level and due to accounting for impairment in the 16th fiscal period.

3<17th fiscal period>
As described in (4) above, accounting for impairment of the Property in the 16th fiscal
period is expected to result in a decrease in book value and decrease in thepreviously-assumed loss from sale.
For details of the revision as well as the pre-conditions and assumptions underlying theforecast, please refer to the Attachment.
4.

Future outlook
Announcement of the interim financial report (Kessan-Tanshin) for the 16th fiscal period ended
June 2011 (January 1, 2011 to June 30, 2011) is scheduled to be made on August 26, 2011.

(Disclaimer)
The amounts for the 17th fiscal period above are the expected amounts based on current
assumptions. Please take due note that the statements on the expected amounts assumed above
are not provided as a guarantee of these by INV and the expected amounts assumed above are no
more than amounts calculated based on certain presumptions assumed by INV.

Note: This English language notice is a translation of the Japanese language notice released on August25, 2011 and was prepared solely for the convenience of, and reference by, non-Japanese investors. No
warranties or assurances are given for the accuracy or completeness of this English translation.

4

(Attachment)<Pre-Conditions and Assumptions Underlying Distribution and Other Expected Amounts Assumedfor 16th Fiscal Period (January 1, 2011 to June 30, 2011) and17th Fiscal Period (July 1, 2011 to December 31, 2011)>
Item
Fiscal period

Assumptions
16th fiscal period: January 1, 2011 to June 30, 2011
17th fiscal period: July 1, 2011 to December 31, 2011
16th fiscal period: 55 properties

Assets under management

17th fiscal period:
INV assumes, of the 55 properties held as of today, New Edobashi Building will be soldduring the 17th fiscal period.
16th fiscal period: 636,695 units

Units outstanding

17th fiscal period: 1,348,292 units
As announced in the “Notice concerning Invitation of New Sponsor and Issuance of New
Investment Units by way of Third-Party Allotment” dated July 15, 2011 and “Noticeconcerning Completion of Payment for Issuance of New Investment Units by way ofThird-Party Allotment” dated July 29, 2011, INV issued new investment units by way ofthird-party allotment, bringing INV’s total number of investment units issued andoutstanding to 1,348,292 units as of today. INV assumes there will be no additional
issuance of investment units thereafter through to the end of the 17th fiscal period.
16th fiscal period: JPY 42,596 million in debts outstanding

Interest-bearing liabilities

17th fiscal period:
On July 29, 2011 during the 17th fiscal period, existing debts, with the exception of part of
the Securitized Loan, were fully repaid and refinanced into long-term debts. As a result,debts totaled JPY 36,915 million as of today. (For details, please refer to the “Noticeconcerning Invitation of New Sponsor and Issuance of New Investment Units by way ofThird-Party Allotment,” “Notice concerning Debt Financing and Repayment of Borrowings,etc. (1),” “Notice concerning Debt Financing and Repayment of Borrowings, etc. (2)” and“Notice concerning Fund Procurement through Borrowings in Trust and Repayment ofBorrowings, and Change of Trustee of Assets” dated July 15, 2011, and “Noticeconcerning Execution of Loan Agreements on the New Borrowings and Amendment Loan
Agreement regarding Changes of the Borrowing Terms on the Existing Borrowing andDetermination of Interest Rates” and “(Correction) Notice concerning Execution of Loan
Agreements on the New Borrowings and Amendment Loan Agreement regarding
Changes of the Borrowing Terms on the Existing Borrowing and Determination of Interest
Rates” dated July 28, 2011.) In addition, INV assumes it will not conduct new financing
other than the above.
INV assumes it will incur operating revenues of JPY 2,277 million in the 16th fiscal period
and JPY 2,274 million in the 17th fiscal period. The breakdown is as follows:

Operating revenues

16th fiscal period
JPY 2,277 million• Rental revenues//

17th fiscal period
JPY 2,274 million

Rental revenues are calculated based on historical data and taking into account tenant
trends, property competitiveness, market environment and other factors. In addition, INV
assumes there are no delinquencies or non-payment of rent by tenants.

5

Item

Assumptions
INV assumes it will incur property related expenses of JPY 1,151 million in the 16th fiscal
period and JPY 1,237 million in the 17th fiscal period. The breakdown is as follows:• Facility management fees(of which, repair costs)• Taxes and other public charges• Insurance expenses• Other expenses• Depreciation expenses

Operating expenses

16th fiscal period
JPY 388 million(JPY 21 million)
JPY 161 million
JPY 5 million
JPY 167 million
JPY 428 million///////

17th fiscal period
JPY 446 million(JPY 70 million)
JPY 167 million
JPY 4 million
JPY 193 million
JPY 425 million

Other than depreciation expenses, the property related expenses are calculated based on
historical data and reflect elements that may cause fluctuations. Of the assessed anddecided amount of real property tax, city planning tax, depreciable property tax, etc.
applicable to assets under management, INV records as expenses the tax amount that it
expects to pay during the fiscal period. Furthermore, concerning assets newly acquired
during the year in which the fiscal period falls, the tax amount is calculated on a pro-ratabasis with the prior titleholder, and this adjusted amount is reimbursed at the time ofacquisition. INV, however, capitalizes an amount equivalent to the concerned adjusted
amount reimbursed as part of the acquisition cost, and thus does not record the amountas expenses.
*Repair costs arising from the Great East Japan Earthquake, which were presented underoperating expenses in the “Notice concerning Revision of Forecasted Results for 16thFiscal Period Ended June 2011, and Forecasted Results and Distribution for 17th Fiscal
Period Ending December 2011” dated July 15, 2011, are recorded as extraordinary loss
because these are expenses that are not usually incurred.
Repair costs are recorded for the amount estimated based on the repair plans of INV’s
asset manager. However, the actual amount may vary substantially from the amountestimated due to changes in conditions and other factors.
In addition, other than the property related expenses, INV assumes it will incur operating
expenses (excluding loss from sales of properties) of JPY 325 million in the 16th fiscal
period and JPY 353 million in the 17th fiscal period.
Moreover, in the 17th fiscal period, INV assumes a reasonably expected amount as loss
from sales of properties associated with the sale of New Edobashi Building.
INV assumes it will incur non-operating expenses of JPY 858 million in the 16th fiscal
period and JPY 3,200 million in the 17th fiscal period. The breakdown is as follows:

Non-operating expenses• Interest revenues• Finance related costs(of which, fees to Calliope)(of which, exit fees)• Other non-operating expenses

16th fiscal period
JPY 598 million
JPY 258 million––
JPY 1 million
JPY 858 million

/////
/
/

17th fiscal period
JPY 800 million
JPY 2,262 million(JPY 336.5 million)(JPY 1,530 million)
JPY 138 million
JPY 3,200 million

The 17th fiscal period reflects INV achieving extension of the borrowing period and otherchange of borrowing terms on July 29, 2011.
Finance related costs are scheduled to include expenses payable as exit fees in theamount of JPY 1,530 million that are to be recorded on an accrual basis.

Extraordinary profits

INV assumes it will record extraordinary profits in the 17th fiscal period of JPY 975 million
in gain on forgiveness of debts for the Securitized Loan that was implemented on July 29,2011.

6

ItemAssumptions
INV assumes it will incur extraordinary loss of JPY 1,255 million in the 16th fiscal period
and JPY 14 million in the 17th fiscal period. The breakdown is as follows:
16th fiscal period
JPY 1,249 million
JPY 5 million
JPY 1,255 million• Impairment loss
• Loss on disaster
Extraordinary loss////

17th fiscal period–JPY 14 million
JPY 14 million

The impairment loss in the 16th fiscal period is for accounting for impairment of New
Edobashi Building.
In addition, loss on disaster posts the estimated amount of repair costs arising from theGreat East Japan Earthquake.
INV expects capital expenditures of JPY 106 million in the 16th fiscal period and JPY 270
million in the 17th fiscal period. Of these, INV expects the primary capital expenditures
arising from restoration work for the Earthquake will be JPY 26 million in the 16th fiscal
period and JPY 12 million in the 17th fiscal period.

Distribution per unit

The distribution per unit is calculated in accordance with the cash distribution policy set
forth in INV’s Articles of Incorporation.
Of the earned surplus of JPY 4,480 million based on gain on negative goodwill recorded in
the 15th fiscal period, INV assumes JPY 127 million in the 16th fiscal period and JPY 269million in the 17th fiscal period will be distributed respectively within the scope of surplus
funds. The distribution per unit may vary due to various factors, such as fluctuations inrental revenues in accordance with changes in the portfolio composition, changes in thetenant composition, etc. and incurrence of unexpected repairs.

Exceeding profit distribution
per unit

INV currently does not expect to make distributions exceeding profits (exceeding profit
distribution per unit).

OtherINV assumes there will be no amendments to laws and ordinances, the taxation system,
accounting standards and other regulations that will affect the foregoing forecasts.
In addition, INV assumes there will be no unforeseen material changes in theenvironment, including general economic trends and real estate market conditions.

7