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 ReportFiscal Period ended December 31, 2024 (July 1, 2024 to December 31, 2024) Content
Greetings from Naoki Fukuda, Executive Director of Invincible Investment Corporation and
President & CEO of Consonant Investment Management Co., Ltd. Summary of Financial Results
Improvement of Asset Value through Renovation ESG Initiatives
Unitholder Benefit Program
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 February 28, 2025) Financial Conditions
Overview of Unitholders/Investment Units
Information for Unitholders
Greetings from Naoki Fukuda, Executive Director of Invincible Investment Corporation and President & CEO of Consonant Investment Management Co., Ltd.
We would like to take this opportunity to express our sincere gratitude to all unitholders of Invincible Investment Corporation ("INV") for your continued support. We hereby provide you with a report on INV's asset management and financial results for the 43rd fiscal period (from July 1, 2024 to December 31, 2024) (the "Reporting Period").
In the Reporting Period, the domestic hotels achieved steady growth compared to the previous year due to stable domestic demand coupled with the recovery and growth in inbound demand. As for the Cayman hotels, there was a temporary downturn in performance due to the partial sales stoppage resulting from the large-scale renovation work at Sunshine Suites Resort, but demand remained strong.
Under such circumstances, INV implemented a global public offering for the second consecutive year to acquire 12 domestic hotels, including the full-service hotel "Art Hotel Osaka Bay Tower & Solaniwa Onsen", further expanding and enriching its hotel portfolio, which is the largest among J-REITs. Furthermore, in October 2024, Fusaki Beach Resort Hotel & Villas, one of INV's flagship hotels, won a total of six awards for "World Luxury Hotel Awards 2024", an internationally recognized award which is considered as the "Academy Awards of the hotel industry", including three "World Luxury Hotel Awards" in the hotel category, and three awards for "World Luxury Spa Awards 2024" for its SPA "Fusaki Spa". We believe that the hotel's high quality of service and diverse facilities were highly evaluated, leading to the award, and we look forward to welcoming our unitholders to this hotel.
On the financing side, we worked to manage our finances by keeping a close eye on interest rate trends, and we extended the terms of the loans and diversified repayment dates. At the same time, we raised the ratio of fixed interest rates by implementing interest rate swap transactions and borrowing at fixed interest rates as a precaution against the risk of rising interest rates.
As a result, INV announced a distribution per unit of JPY 1,982 by recording operating revenues of JPY 25,555 million, operating income of JPY 17,751 million, and net income of JPY 15,138 million in the Reporting Period. The distribution per unit ("DPU") exceeded the result for the June 2024 fiscal period and is the highest DPU since February 2010 when the corporate name changed to Invincible Investment Corporation.
The current environment will continue to require us to deal with rising costs, including interest rates, but we aim to further increase DPU by working diligently to capture demand for banquets and meetings which have recovered significantly after the COVID-19 pandemic, and inbound demand in regional areas, as well as by making asset acquisitions and strategic investments such as renovations of domestic and overseas hotels.
Your continued support is highly appreciated.
Naoki Fukuda
Executive Director, Invincible Investment Corporation
President & CEO, Consonant Investment Management Co., Ltd.
Summary of Financial Results
Period from July 1, 2022 to December 31, 2022 | Period from January 1, 2023 to June 30, 2023 | Period from July 1, 2023 to December 31, 2023 | Period from January 1, 2024 to June 30, 2024 | Period from July 1, 2024 to December 31, 2024 | |
Operating Revenues (JPY million) | 11,929 | 15,914 | 18,819 | 21,136 | 25,555 |
Ordinary Income (JPY million) | 5,075 | 8,914 | 11,033 | 12,901 | 15,138 |
Net Income (JPY million) | 5,075 | 8,913 | 11,032 | 12,900 | 15,138 |
Net Assets (JPY million) | 250,321 | 254,024 | 290,305 | 292,766 | 351,388 |
Total Assets (JPY million) | 494,237 | 496,819 | 563,393 | 569,016 | 680,004 |
Net Assets per Unit (JPY) | 41,058 | 41,665 | 43,090 | 43,455 | 45,954 |
Net Assets/Total Assets (%) | 50.6 | 51.1 | 51.5 | 51.5 | 51.7 |
Distribution per Unit (JPY) | 832 | 1,464 | 1,640 | 1,917 | 1,982 |
Number of Units Issued (Unit) | 6,096,840 | 6,096,840 | 6,737,121 | 6,737,121 | 7,646,453 |
Distribution per unit for the 43rd fiscal period
(the fiscal period ended December 2024)
JPY 1,982
(Note) The forward-looking statements, forecasts and goals described in this report are based on available information, assumptions and estimates as of February 28, 2025. 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, and actual results may vary significantly.
Improvement of Asset Value through Renovation
INV implements renovation of guest rooms, banquet rooms and restaurants, etc. to maintain and strengthen competitiveness of hotels in order to further increase profitability of portfolio.
-
Hotel MyStays Nippori
Background
A limited service hotel within a 4-minite walk from JR Nippori Station
Though renovated in 2011, its competitiveness has declined due to deterioration from aging and new hotels opened in the neighborhood
The renovations are being carried out to improve customer satisfaction by updating the facilities and to meet the increased demand for multiple guests due to the increase in inbound demand
Main Work
Renew interior and furnishings of guest rooms and common areas
- Replace semi-double beds with bunk beds or double beds
Renew exterior and signage
Make all rooms smoke-free
Renovation Period
September 2024 - February 2025
Return
Expected ROI: 24.9%
CAPEX: JPY 419 million
GOP Increase: JPY 104 million per year (+79.1% compared to pre-renovation)
After Renovation
Guest Room (bunk bed) Guest Room (double bed)
-
Art Hotel Niigata Station
Background
A full service hotel directly connected to JR Niigata Station with large banquet halls which are rare in the area
The guest rooms, banquet halls, and restaurant were last renovated in 2007. Due to aging, some aspects, such as the bathrooms, have received lower evaluations from guests compared to nearby competitors
Main Work
Renovations will be done to maintain and strengthen competitiveness
Renovation Period
Return
After Renovation
(Note 1) Rendering
Renew interior and furnishings of guest rooms, banquet halls, and restaurant
Change the layout of the restaurant (increase the seat capacity from 119 to 132)
Make two of the existing three smoking floors smoke-free
January 2025 - July 2025 (scheduled)
Expected ROI: 17.0%
CAPEX: JPY 651 million
GOP increase: JPY 110 million per year (+20.2% compared to pre-renovation)
Guest Room1Banquet Hall1
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 and contributing to global environmental conservation, and regard improvement of sustainability as an important management issue and implement initiatives to contribute to make our society sustainable.
2024 GRESB Real Estate Assessment1In the 2024 GRESB Real Estate Assessment, INV received a "3-Star" GRESB Rating, which is based on overall GRESB scores and its quintile position among participants, for the second consecutive year. INV was also awarded a "Green Star" designation by achieving high performance in both the "Management Component" that evaluates policies and organizational structure for ESG (Environmental, Social, and Governance) promotion, and the "Performance Component" that assesses environmental performance and tenant engagement of properties owned. Further,
INV was highly evaluated for its ESG information
disclosure efforts and received an "A Level" the highest level for GRESB Public Disclosure, which assesses the breadth of ESG disclosure for the fourth consecutive year. We will consider preparations for acquiring evaluation by other external organizations, such as green building certification, to strengthen our ESG initiatives.
(Note 1) GRESB is an annual benchmarking assessment to measure ESG (Environmental, Social, and Governance) integration of real estate companies and funds. The GRESB Real Estate Assessment is characterized by evaluating sustainability initiatives of real estate companies, REITs, and real estate funds, rather than targeting individual real estate. The GRESB rating is a relative evaluation based on the overall score, with the highest rating being 5-star
(JPY million) | ||
Green finance | 25,956 | |
Green bonds | 3,500 | |
Green loans | 22,456 | |
BELS2 Certification (total 19 properties) ＊Funds procured by green finance are used for the properties in bold font in below tables
CASBEE Certification for Buildings and Certification for CASBEE for Real Estate (
3
total 8 properties)
(Note 2) BELS is a third-party certification system that evaluates and certifies the energy-saving performance of a building that the operators are required to make efforts to display under the Act on Improving Energy Consumption Performance for Architectural Structures. Houses and buildings are evaluated based on the value of BEI (Building
The evaluation result is rated on a five-star scale based on energy conservation performance (from one star "★" to five stars "★★★★★"), with five stars meaning the highest energy conservation performance. Also, two stars or more represent that the building meets the existing energy conservation standard
(Note 3) CASBEE is a method that comprehensively assesses the quality of a building, and evaluates features such as interior comfort and scenic aesthetics, in consideration of environment practices including use of materials and equipment that save energy or achieve smaller environmental loads. CASBEE Certification for Buildings (Existing
Energy Index) derived from the primary energy consumption based on the government-designated energy consumption performance standard of architectural structures.
Buildings) scores buildings based on the environmental quality and the environmental load reduction of buildings that are at least one year old after completion.
Assessment results by CASBEE are indicated on a scale with the following five ranks: Rank S "★★★★★", Rank A "★★★★", Rank B+ "★★★", Rank B- "★★", and Rank C "★". Certification for CASBEE for Real Estate was developed with the aim of making use of the results of the environmental assessment of buildings by CASBEE in real estate evaluation. The assessment results are given one of four ranks: Rank S "★★★★★", Rank A "★★★★", Rank B+ "★★★", and Rank B- "★★"
Executed refinance with green loan in October 2024 and January 2025 (total: JPY 12,457 million), bringing the total amount of outstanding green finance to JPY 25,956 million.
＜Total amount of green finance＞
As of Feb. 26, 2025
★★★★★ | Hotel MyStays Premier Akasaka, Hotel MyStays Fukuoka Tenjin, Hotel MyStays Yokohama Kannai, Hotel MyStays Oita, Hotel MyStays Haneda, Hotel MyStays Matsuyama |
★★★★ | Hotel MyStays Premier Kanazawa, Hotel MyStays Sapporo Station, Hotel MyStays Fuji Onsen Resort, Hotel MyStays Kanda, Hotel MyStays Aomori Station |
★★★ | MyStays Shin-Urayasu Conference Center, Hotel MyStays Sakaisuji-Honmachi, Hotel Epinard Nasu |
★★ | Hotel MyStays Kyoto-Shijo, Hotel MyStays Fukuoka-Tenjin-Minami, Hotel MyStays Hakodate-Goryokaku, Hotel MyStays Hamamatsucho, Hotel MyStays Midosuji Honmachi |
CASBEE Certification for Buildings | |
Rank A | Hotel MyStays Premier Akasaka |
Rank B+ | Hotel MyStays Premier Kanazawa, Hotel Epinard Nasu, Hotel MyStays Yokohama Kannai |
Rank Ｂ- | Hotel MyStays Sapporo Station |
Certification for CASBEE for Real Estate | |
Rank A | Royal Parks Momozaka, Royal Parks Shinden, Royal Parks Seasir Minami-Senju |
INV has introduced the unitholder benefit program to improve the satisfaction of its unitholders and expand the unitholder base. Eligible unitholders can stay at Sheraton Grande Tokyo Bay Hotel and all MyStays group hotels at special discount rates. INV decided to expand the available period by two months (from six months to eight months) for stay from the December 2022 Fiscal Period and onwards.
Overview of the Unitholder Benefit Program(Note 1)
Applicable Hotels | Sheraton Grande Tokyo Bay Hotel All hotels managed by MyStays (Note 2) | ||
Eligible Unitholders | All Unitholders whose names are recorded on Invincible's Unitholders' Registry as of the relevant record dates: *INV decided to remove the eligibility requirement of "holding 10 or more units" 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 | Sheraton Grande Tokyo Bay Hotel Reservation via phone or Email All MyStays hotels and Kamenoi Hotels Reservation via official website | ||
Available Period (Note 3) | From April 1 to November 30 (eligible unitholders as of December 31) From October 1 to May 31 (eligible unitholders as of June 30) |
Sheraton Grande Tokyo Bay Hotel
Fusaki Beach Resort Hotel & Villas
Art Hotel Osaka Bay Tower & Solaniwa Onsen
Hotel MyStays Gotanda Station
Hotel MyStays Premier Akasaka
(Note 1) The details of the unitholder benefit program described above are as planned by Invincible as of February 28, 2025, and the program may be changed or abolished even after it is has been introduced.
(Note 2) 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/en-us/) will be applicable.
(Note 3) Available Period represents a period during which you can lodge by using the unitholder benefit program. To enjoy the unitholder benefit program, you actually need to lodge during the availability period.
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Asset Management Report
Overview of Asset Management
Trends in Investment Corporation's Operating Results
By Period
39th fiscal period
40th fiscal period
41st fiscal period
42nd fiscal period
43rd fiscal period
Reporting period
Jul. 1, 2022 to
Dec. 31, 2022
Jan. 1, 2023 to
Jun. 30, 2023
Jul. 1, 2023 to
Dec. 31, 2023
Jan. 1, 2024 to
Jun. 30, 2024
Jul. 1, 2024 to
Dec. 31, 2024
Operating Results
Operating revenue
(JPY thousand)
11,929,599
15,914,981
18,819,119
21,136,007
25,555,158
(Rental revenue - real estate)
(JPY thousand)
(10,182,751)
(12,000,955)
(16,696,076)
(14,933,032)
(23,205,026)
Operating expenses
(JPY thousand)
5,672,588
5,558,241
6,230,207
6,500,276
7,803,491
(Property-related expenses)
(JPY thousand)
(4,606,538)
(4,488,341)
(5,096,717)
(5,107,042)
(6,325,294)
Operating income (loss)
(JPY thousand)
6,257,011
10,356,739
12,588,912
14,635,731
17,751,667
Ordinary income (loss)
(JPY thousand)
5,075,941
8,914,347
11,033,176
12,901,166
15,138,810
Net income (loss)
(JPY thousand)
5,075,336
8,913,742
11,032,571
12,900,561
15,138,205
Assets
Total assets
(change from last period)
(a) (JPY thousand)
(%)
494,237,781
(0.8)
496,819,930
(0.5)
563,393,061
(13.4)
569,016,514
(1.0)
680,004,964
(19.5)
Interest-bearing debt
(JPY thousand)
240,797,000
239,190,000
269,100,000
271,154,000
323,197,000
Net assets
(change from last period)
(b) (JPY thousand)
(%)
250,321,091
(1.7)
254,024,091
(1.5)
290,305,021
(14.3)
292,766,734
(0.8)
351,388,558
(20.0)
Unitholders' capital
(JPY thousand)
235,701,512
235,701,512
270,101,249
270,101,249
326,079,727
Dividend
Status
Total distributions
(c) (JPY thousand)
5,072,570
8,925,773
11,048,878
12,915,060
15,155,269
Dividend payout ratio
(Note 1) (%)
99.9
100.1
100.1
100.1
100.1
Information per Unit
Number of investment units issued and outstanding
(d) (Units)
6,096,840
6,096,840
6,737,121
6,737,121
7,646,453
Net assets per unit
(b) / (d) (JPY)
41,058
41,665
43,090
43,455
45,954
Distributions per unit (Distributions of earnings per unit) (Distributions in excess of retained earnings per unit)
(c) / (d) (JPY)
(JPY)
(JPY)
832
(832) (-)
1,464
(1,464)
(-)
1,640
(1,640)
(-)
1,917
(1,917)
(-)
1,982
(1,982)
(-)
Financial Measures
Return on assets (annualized)
(Note 2) (%)
1.0
(2.0)
1.8
(3.6)
2.1
(4.1)
2.3
(4.6)
2.4
(4.8)
Return on equity (annualized)
(Note 2) (%)
2.0
(4.1)
3.5
(7.1)
4.1
(8.0)
4.4
(8.9)
4.7
(9.3)
Capital ratio
(change from last period)
(b) / (a) (Note 2) (%)
(%)
50.6
(0.4)
51.1
(0.5)
51.5
(0.4)
51.5
(-0.1)
51.7
(0.2)
NOI
(Net Operating Income)
(Note 2) (JPY thousand)
10,509,695
14,523,824
17,205,671
19,634,102
23,451,825
(Note 1) Dividend payout ratio is calculated in accordance with the following formula and rounded to one decimal place:
Dividend payout ratio = Distribution amount (Excluding distributions in excess of retained earnings) / Net income × 100.
(Note 2) 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 end of 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 + Dividends of preferred equity interest + Depreciation expense for relevant period.
The dividends of preferred equity interest has been included in the formula calculating NOI from the 41st fiscal period. Since no dividends of preferred equity interest was recorded from the 39th to the 41st fiscal period, this change makes no difference. However, since dividends of preferred equity interest was recorded from the 42nd to the 43rd fiscal period, dividends of preferred equity interest was included in NOI due to this change.
Overview of Asset Management for the Fiscal Period Ended December 2024
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). 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 and Trust 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 other affiliates of FIG, collectively the "Fortress Group") was the main allottee, and the sponsor changed to the Fortress Group.
Ever since the commencement of sponsorship from the Fortress Group (Note 1), INV has been focusing its efforts on improving the profitability of its portfolio and establishing a revenue base in order to secure stable distributions, and has strengthened the lender formation through new borrowings and the refinancing of existing bank borrowings, thereby creating a financial base for external growth. With this platform as a base, in June 2014, Consonant Investment Management Co., Ltd., the asset manager to which INV entrusts the management of its assets ("CIM") revised 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.
In the Fiscal Period ended December 31, 2024 ("Reporting Period"), INV implemented a global offering of new investment units for the second consecutive year and acquired 12 domestic hotels. As a result, INV's portfolio at the end of the Reporting Period comprised of 146 properties (104 hotels (Note 2) (Note 3), 41 residential properties and one retail facility) with a total acquisition price of JPY 653,066 million (Note 4). Furthermore, INV's hotel portfolio has the largest asset size (Note 5) of JPY 612,281 million (104 properties, 18,871 rooms) among all J-REITs (real estate investment corporations which are listed on the Tokyo Stock Exchange Real Estate Investment Trust Securities Market, hereinafter the same shall apply) hotel portfolios including Hotel J-REITs (Note 6).
(Note 1) Calliope transferred 80.0% of issued shares to Fortress CIM Holdings L.P., a subsidiary of SoftBank Group and 20.0% to SoftBank Group Corp. ("SoftBank Group") on March 29, 2018, but the SoftBank Group transferred its issued shares of CIM to Fortress CIM Holdings L.P on May 23, 2023. Further, on May 15, 2024, the SoftBank Group transferred its interest in the indirect parent company of Fortress CIM Holdings L.P. to Mubadala Capital, a wholly-owned subsidiary of Mubadala Investment Company, an Abu Dhabi sovereign wealth fund. As a result, the SoftBank Group no longer falls under the parent company and specified related corporation of CIM.
(Note 2) The preferred equity interest held by INV is counted as one property. Such preferred equity interest issued by a special purpose company (tokutei mokuteki kaisha, "TMK") refers to 178,458 units of the preferred equity interest issued by Kingdom Special Purpose Company (equivalent to 49.0% of the outstanding preferred equity interest), which owns the trust beneficiary interest of the Sheraton
Grande Tokyo Bay Hotel as an underlying asset. The property is classified as a hotel, based on the use of Sheraton Grande Tokyo Bay Hotel, the underlying asset of the preferred equity interest, and INV's investment amount of the preferred 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 operator of an anonymous association (tokumei kumiai, "TK") interest or a TMK relating to the preferred equity interest which INV owns, thus the real estate or the real estate related assets which will be the revenue source of INV. Hereinafter the same shall apply.
(Note 3) 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 Westin Grand Cayman Seven Mile Beach Resort & Spa and Sunshine Suites Resort (collectively, the "Cayman Hotels") and ancillary assets as underlying assets. However, INV implemented the investment structure change (the "Structure Change" in some cases hereinafter) regarding the Cayman Hotels on May 9, 2019 (Cayman Island local time; May 10, 2019 in Japan local time) and has directly held the Leasehold Interests, etc. of the Cayman Hotels thereafter. Both of the TK interest and the Cayman Hotels are counted as two properties before and after the Structure Change. In addition, the "Leasehold Interests, etc." means leasehold interests (rights equivalent to long-term real estate leases on 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 4) Due to the Structure Change, the book value of the leasehold interests of the Cayman Hotels recorded by the Cayman SPC as of May 9, 2019 (Cayman Island local time; May 10, 2019 in Japan local time), when INV succeeded the leasehold interests of the Cayman Hotels from the Cayman SPC via distribution in kind in connection 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 foreign exchange forward contracts executed on July 26, 2018 and implemented on September 26, 2018 in connection with the investment in the TK interest by INV. Hereinafter the same shall apply.
(Note 5) Hotel J-REIT is defined as the J-REIT whose majority part of portfolio consists of hotel assets.
(Note 6) "The largest asset size … among all J-REIT hotel portfolios" refers to the total acquisition price of 104 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 December 31, 2024.
Operational Performance
The portfolio NOI (Note 1) increased by 36.3% or JPY 6,246 million compared to the same period in the previous year (the December 2023 fiscal period) to JPY 23,451 million. Of which, the hotel portfolio NOI increased by JPY 6,226 million and the residential and retail portfolio NOI increased by JPY 19 million. Compared to the December 2019 fiscal period prior to the COVID-19 pandemic, the portfolio NOI increased by 54.7% or JPY 8,287 million, of which the hotel portfolio NOI increased by JPY 9,057 million and the residential and retail portfolio NOI decreased by JPY 769 million due to asset sales.
Commentary on hotel and residential performance is as described below.
As for the domestic hotel portfolio, all hotel indices for the period under review exceeded those for the same period of the previous year due to solid domestic demand coupled with strong growth in inbound demand. The GOP (Note 2) for the Reporting Period increased by 14.3% compared to the same period in the previous year (figures exclude nine domestic hotels with fixed-rent lease agreements among the 90 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 81 domestic hotels (Note 3) recorded an occupancy rate (Note 4) of 85.6%, ADR (Note 5) of JPY 15,030, and RevPAR (Note 6) of JPY 12,863. The Cayman Hotels recorded an average occupancy rate of 52.6%, ADR of USD 438, and RevPAR of USD 231 for the Reporting Period. Although demand was robust throughout the Period, the impact of hurricanes and storms including "Hurricane Beryl", a Category 5 hurricane, as well as the impact of the partial sales stoppage
resulting from the large-scale renovation work at Sunshine Suites Resort, caused ADR to increase but occupancy rate and RevPAR to decrease compared to the same period last year.
Regarding the residential portfolio (Note 7), the occupancy rate (Note 8) of 41 residential properties remained at 96.9% at the end of the Reporting Period, with slight changes during the Reporting Period. The average occupancy rate (Note 8) increased by 0.9 points YoY to 96.9%. The NOI (Note 9) for the Reporting Period increased by 1.9% YoY.
In the Reporting Period, INV realized a rent increase for 68.8% (based on the number of contracts) of the new residential lease contracts, and the new rent increased by 2.6% compared to the previous rent across all new leases (Note 10). INV achieved a rent increase for 61.6% (based on the number of contracts) of contract renewals with an average rent increase of 1.9% compared to the previous rent across all renewal leases, while maintaining a high contract renewal rate (Note 11) of 76.5%. Combined, new lease and renewal lease rents were signed at 2.1% higher than the previous leases. The average rent per tsubo per month (Note 12) for the Reporting Period increased by 0.8% YoY to JPY 9,291.
The total appraisal value of 145 properties was JPY 767,492 million (one out of the 146 properties owned by INV at the end 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 171,708 million (Note 13) and an unrealized gain ratio of 28.8% (Note 13). The total appraisal value of the 133 properties which were owned throughout the Reporting Period increased by 0.5% from JPY 657,902 million at the end of the June 2024 fiscal period to JPY 661,382 million at the end of the Reporting Period.
Key Performance Indicators of 81 Domestic Hotel Properties (Note 3)
December 2024
fiscal period
Year-on-year change
vs 2H 2019
Occupancy Rate (Note 4)
85.6%
+3.1pt
-1.9pt
ADR (JPY) (Note 5)
15,030
+10.0%
+34.7%
RevPAR (JPY) (Note 6)
12,863
+14.0%
+31.9%
GOP (JPY million) (Note 2)
18,562
+14.3%
+33.3%
Key Performance Indicators of Cayman Hotels
December 2024
fiscal period
Year-on-year change
vs 2H 2019
Occupancy Rate (Note 4)
52.6%
-12.2pt
-19.7pt
ADR (USD) (Note 5)
438
+4.0%
+33.8%
RevPAR (USD) (Note 6)
231
-15.6%
-2.6%
GOP (USD) (Note 2)
10,678,157
-26.9%
-19.6%
Key Performance Indicators of 41 Residential Properties (Note 7)
December 2024
fiscal period
Year-on-year change
Average Occupancy Rate (Note 8)
96.9%
+0.9pt
Average Rent per Tsubo per Month
(JPY) (Note 12)
9,291
+0.8%
NOI (JPY million) (Note 9)
1,140
+1.9%
(Note 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)
(Note 2) "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 to operators (if any) from the hotel's revenues. 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 3) Of the 90 hotels held as of the end of December 2024 (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 etc. 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 such properties for the period before the acquisition. "D48 Takamatsu Tokyu REI Hotel" changed its contract with its major tenant, TOKYU HOTELS & RESORTS CO., LTD., to fixed-rent with variable rent lease from April 25, 2023. However, in view of the continuity of disclosed data and other factors, this hotel will continue to be excluded. Hereinafter the same shall apply.
(Note 4) "Occupancy rate" for the hotel properties is calculated in accordance with the following formula:
Occupancy rate = total number of occupied rooms during a certain period ÷ total number of rooms available during the same period (number of rooms x number of days)
Hereinafter the same shall apply.
(Note 5) "ADR" means average daily rate, and is calculated by dividing total room sales (excluding service fees) for a certain period by the total number of days per room for which each room was occupied during the same period. Hereinafter the same shall apply.
(Note 6) "RevPAR" means revenues per available room per day, and is calculated by dividing total room sales for a certain period by total number of rooms available (number of rooms x number of days) during the same period, and is the same as the figure obtained by multiplying ADR by occupancy rates. Hereinafter the same shall apply.
(Note 7) Based on the 41 residential properties owned as of the end of December 2024. Hereinafter the same shall apply.
(Note 8) "Occupancy Rate" and "Average Occupancy Rate" for the portfolio or the residential properties are calculated by dividing the sum of total leased area by the sum of total leasable area at the end of each month during the relevant period. Hereinafter the same shall apply.
(Note 9) For the comparison of NOI for the residential properties, one-off insurance-related revenues and expenses are excluded. Hereinafter the same shall apply.
(Note 10) Increase or decrease in the sum of monthly rents on new or renewal contracts, or the total of both, compared with the sum of previous rents. Hereinafter the same shall apply.
(Note 11) Renewal rate is calculated by the number of renewed contracts during the relevant period divided by the number of contracts due up for renewal during the relevant period.
(Note 12) "Average Rent per Tsubo per Month" is calculated by dividing the total rental revenue (including common area charges) for each month by the sum of total leased area (tsubo) at the end of each month during the relevant period.
(Note 13) The unrealized gain is calculated using the following formula: the appraisal value as of the end of the Reporting Period - book value as of the end of the Reporting Period.
The unrealized gain ratio is calculated using the following formula: the unrealized gain ÷ book value as of the end of the Reporting Period.
Overview of Fund Raising
As a result of the measures described below, INV's interest-bearing debt outstanding balance was JPY 323,197 million and the Interest-Bearing Debt ratio (Note 1) and LTV (appraisal value basis) (Note 2) were 47.0% and 42.1%, respectively, as of the end of the Reporting Period, with an average interest rate (Note 3) of 1.07%.
(Note 1) 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.
(Note 2) 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, the acquisition 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.
(Note 3) The average interest rate (annual rate) is the weighted average based on the outstanding balance of borrowings and rounded to two decimal places.
Equity Financing
INV implemented a global public offering which closed on July 30, 2024 (the number of new investment units issued: 895,000; total issue value: JPY 55,096 million), and a third party allotment which closed on August 27, 2024 (the number of new investment units issued: 14,332; total issue value: JPY 882 million) in order to procure part of the funds for the acquisition of 12 domestic hotels described in "(d) Overview of Acquisition of Assets".
Debt Finance
Borrowing of Funds
INV borrowed New Syndicate Loan (014) (total amount borrowed: JPY 15,862 million; interest rate: floating interest rate of 3-month JPY TIBOR plus 0.70000% for a duration of seven years, floating interest rate of 3-month JPY TIBOR plus 0.60000% for a duration of six years, floating interest rate of 3-month JPY TIBOR plus 0.50000% (by the interest swap agreement on October 21, 2024, it is fixed, in effect, at 1.37500%) for a duration of five years, floating interest rate of 3-month JPY TIBOR plus 0.40000% (by the interest swap agreement on October 21, 2024, it is fixed, in effect, at 1.23000%) for a duration of four years, which was arranged by Mizuho Bank, Ltd. on July 16, 2024 in order to repay a tranche of New Syndicate Loan (L) in the amount of JPY 4,943 million, a tranche of New Syndicate Loan (M) in the amount of JPY 5,796 million, two tranches of New Syndicate Loan (009) in the amount of JPY 7,958 million, a tranche of New Syndicate Loan (011) in the amount of JPY 1,965 million due on July 16, 2024 and Term Loan (W) in the amount of JPY 1,582 million due on July 20, 2024.
Moreover, INV borrowed New Syndicate Loan (015) on July 31, 2024 (total amount borrowed: JPY 56,725 million; interest rate: floating interest rate of 3-month JPY TIBOR plus 0.70000% for a duration of seven years, floating interest rate of 3-month JPY TIBOR plus 0.60000% for a duration of six years, 1.59750% for a duration of six years, floating interest rate of 3-month JPY TIBOR plus 0.50000% (by the interest swap agreement on October 21, 2024, it is fixed, in effect, at 1.37500%) for a duration of five years, floating interest rate of 1-month JPY TIBOR plus 0.20000% for a duration of one year, and floating interest rate of 1-month JPY TIBOR plus 0.20000% for a duration of one year), which was arranged by Mizuho Bank, Ltd. in order to pay a portion of the acquisition price and related expenses for the acquisition of the 12 domestic hotels described in "(d) Overview of Acquisition of Assets" with the equity financing described in the said (i).
Furthermore, INV borrowed Term Loan (022) on October 11, 2024 (total amount borrowed: JPY 1,250 million; interest rate: floating interest rate of 1-month JPY TIBOR plus 0.65000% for a duration of 6.5 years) from Mizuho Bank, Ltd., Term Loan (023) (total amount borrowed: JPY 1,250 million; interest rate: floating interest rate of 1-month JPY TIBOR plus 0.65000% for a duration of 6.5 years) from Sumitomo Mitsui Banking Corporation, and Term Loan (024) (total amount borrowed: JPY 1,060 million; interest rate: floating interest rate of 1-month JPY TIBOR plus 0.65000% for a duration of 6.5 years) from Sumitomo Mitsui Trust Bank,
Limited in order to repay New Syndicate Loan (H) in the amount of JPY 3,560 million due on October 11, 2024.
Prepayment of Loan
INV prepaid its bridge loan of New Syndicate Loan (015) (in the amount of JPY 1,500 million; for a duration of one year) on September 30, 2024, with a portion of funds procured from the issuance of Twelfth Series Unsecured Investment Corporation Bonds as described in "(iii) Issuance of Investment Corporation Bonds" below on September 12, 2024.
Issuance of Investment Corporation Bonds
INV issued investment corporation bonds as follows for the purpose of raising a portion of funds for repayment of existing borrowings while at the same time lengthening the average maturity period of its debt and further diversifying repayment dates for interest-bearing debt.
Bond Series
Issue Date
Issue Amount
(JPY million)
Interest Rate (annual rate)
Redemption Date
Abstract
Twelfth Series Unsecured Investment Corporation Bonds
(with pari passu conditions among specified corporate bonds)
September 12, 2024
4,200
1.300%
September 12, 2029
Unsecured / Unguaranteed Rating: A+
(JCR)
Overview of Acquisition of Assets
CIM decided on the acquisition of trust beneficiary interests in 12 domestic hotels as follows on July 18, 2024, and the acquisition of the assets was closed on July 31, 2024.
Property Number
Property Name
Acquisition Price (JPY million yen) (Note 1)
Appraisal Value (JPY million yen) (Note2)
Seller
D90
Art Hotel Osaka Bay Tower & Solaniwa Onsen
31,185
31,500
Ganges Tokutei Mokuteki Kaisha
D91
Hakodate Kokusai Hotel
16,830
17,000
Hakodate Tokutei Mokuteki Kaisha
D92
Art Hotel Nippori Lungwood
16,335
16,500
Nippori Tokutei Mokuteki Kaisha
D93
Hotel MyStays Kumamoto Riverside
6,831
6,900
Rishiri Tokutei Mokuteki Kaisha
D94
Art Hotel Aomori
5,672
5,730
Shiretoko Tokutei Mokuteki Kaisha
D95
Kamenoi Hotel Izukogen
5,563
5,620
Yakushima Tokutei Mokuteki Kaisha
D96
Art Hotel Oita
5,484
5,540
Shiretoko Tokutei Mokuteki Kaisha
D97
Art Hotel Kokura New Tagawa
4,672
4,720
Kawaguchiko Tokutei Mokuteki Kaisha
D98
Art Hotel Miyazaki Sky Tower
3,821
3,860
Rishiri Tokutei Mokuteki Kaisha
Property Number
Property Name
Acquisition Price (JPY million yen) (Note 1)
Appraisal Value (JPY million yen) (Note2)
Seller
D99
Art Hotel Kagoshima
3,395
3,430
Shiretoko Tokutei Mokuteki Kaisha
D100
Kamenoi Hotel Hikone
2,603
2,630
Yakushima Tokutei Mokuteki Kaisha
D101
Kamenoi Hotel Nara
2,029
2,050
Yakushima Tokutei Mokuteki Kaisha
Total
104,420
105,480
(Note 1) Acquisition Price does not include adjustments for property taxes, city planning taxes, or national or local consumption taxes. Hereinafter the same shall apply.
(Note 2) Appraisal Value is based on appraisal value stated in the appraisal report by the Japan Real Estate Institute., JLL Morii Valuation & Advisory K.K., The Tanizawa Sōgō Appraisal Co., Ltd. or Daiwa Real Estate Appraisal Co., Ltd. on the valuation date of June 1, 2024.
Overview of Results of Operations and Distributions
As a result of the operations mentioned above, operating revenues for the Reporting Period increased by JPY 4,419 million from the previous period (+20.9 %) to JPY 25,555 million, resulting in a net income of JPY 15,138 million, an increase of JPY 2,237 million from the previous period (+17.3%). Unappropriated retained earnings including the retained earnings carried forward from the preceding fiscal period (JPY 8,627 million) is JPY 23,765 million. INV has decided to set the distribution per unit (excluding excess profit distribution) of JPY 1,982, which is the net income per unit (JPY 1,980) plus the reversal of retained earnings (JPY 3 per unit).
Changes in Total Number of Investment Units Issued and Outstanding
Changes in the number of investment units issued and outstanding and unitholders' capital for the past five years up to the end of the Reporting Period are as follows.
Date
Type of issue
Total number of
investment units issued
Unitholders' capital (JPY)
Reference
Increase
Total
Increase
Total
July 31, 2023
Public offering
609,792
6,706,632
32,761,684,992
268,463,197,161
(Note 1)
August 28, 2023
Third-party
allotment
30,489
6,737,121
1,638,052,014
270,101,249,175
(Note 2)
July 30, 2024
Public offering
895,000
7,632,121
55,096,200,000
325,197,449,175
(Note 3)
August 27, 2024
Third-party allotment
14,332
7,646,453
882,277,920
326,079,727,095
(Note 4)
(Note 1) New investment units were issued in a public offering at a price of JPY 55,566 per unit (JPY 53,726 after deducting the underwriters' discount) to raise a part of the funds for the acquisition of new properties.
(Note 2) New investment units were issued in a third-party allotment at a price of JPY 53,726 per unit for the purpose of raising a part of the funds for the acquisition of specified assets.
(Note 3) New investment units were issued in a public offering at a price of JPY 63,602 per unit (JPY 61,560 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 61,560 per unit for the purpose of raising a part of the funds for the acquisition of specified assets or repairs and capital expenditures to maintain and enhance the asset value of properties in the portfolio.
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)
Period
39th fiscal period
40th fiscal period
41st fiscal period
42nd fiscal period
43rd fiscal period
Closing month
December 2022
June 2023
December 2023
June 2024
December 2024
Highest
52,500
59,600
65,200
73,100
69,800
Lowest
36,250
48,250
53,800
58,700
57,600
Distribution Performance
With respect to distribution of earnings for the Reporting Period, INV decided that distribution per unit (excluding excess profit distribution) is JPY 1,982 and does not make distributions in excess of profits.
Period
39th fiscal period
40th fiscal period
41st fiscal period
42nd fiscal period
43rd fiscal period
Calculated Period
Jul. 1, 2022 to
Dec. 31, 2022
Jan. 1, 2023 to
Jun. 30, 2023
Jul. 1, 2023 to
Dec. 31, 2023
Jan. 1, 2024 to
Jun. 30, 2024
Jul. 1, 2024 to
Dec. 31, 2024
Unappropriated retained earnings
(JPY thousand)
13,742,562
17,583,734
19,690,532
21,542,214
23,765,358
Reserved profit (JPY thousand)
8,669,991
8,657,960
8,641,653
8,627,153
8,610,089
Total cash distribution
(JPY thousand)
5,072,570
8,925,773
11,048,878
12,915,060
15,155,269
(Distribution per
unit) (JPY)
(832)
(1,464)
(1,640)
(1,917)
(1,982)
Total profit distribution
(JPY thousand)
5,072,570
8,925,773
11,048,878
12,915,060
15,155,269
(Profit distribution per unit)
(JPY)
(832)
(1,464)
(1,640)
(1,917)
(1,982)
Total refund of investment
(JPY thousand)
-
-
-
-
-
(Refund of investment per unit)
(JPY)
(-)
(-)
(-)
(-)
(-)
Total distribution from the allowance for temporary differences
adjustment out of total refund of investment
(JPY thousand)
-
-
-
-
-
(Distribution from the allowance for temporary differences
adjustment per unit out of refund of investment per unit)
(JPY)
(-)
(-)
(-)
(-)
(-)
Total distribution from unitholders' equity under the tax laws out of the total refund of
investment
(JPY thousand)
-
-
-
-
-
Distribution from unitholders' equity under the tax laws out of refund of investment per unit
(JPY)
-
-
-
-
-
Future operational policy and issues to be addressed
Outlook for the Fiscal Period Ending June 30, 2025
The Japanese economy has been gradually recovering and is expected to continue to grow steadily, mainly driven by domestic demand. Against the backdrop of strong corporate earnings, consideration of high prices, and a serious labor shortage, personal consumption is expected to recover moderately due to a recovery in real wages and an easing of household saving habits as a high rate of wage increases is expected in the labor negotiations (Shunto). Furthermore, the increase in the inflation rate in Japan is expected to slow down as upward pressure on import prices has been settling down. Corporate capital investment is also expected to continue to expand with digitalization, decarbonization, and enhancement of supply chain resilience, as well as actions to address labor shortages. In addition to the recovery in domestic demand, the economy is expected to benefit from the continued growth in inbound demand. On the other hand, there are various uncertainties such as the direction of U.S. trade policy under the second Trump administration, concerns about the rekindling of trade friction between the United States and China, and the increase in geopolitical risks. Concerns about an economic slowdown may grow if negative factors such as a decline in exports along with a slowdown in overseas economies emerge.
In the hotel market, demand in both the domestic/inbound and leisure/business segments is expected to remain robust.
In the rental housing market, the trend of population outflow from urban areas caused by the impact of the COVID-19 pandemic has turned to a trend of population inflow again, and demand in rental apartments has been increasing with the tightening of supply in condominiums due to high land prices and the increase in construction costs. These factors are expected to lead to higher occupancy rates and higher unit rents in the future.
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 in order to enhance unitholder value with the Fortress Group as its sponsor. In addition to access to Fortress' global real estate expertise, INV will actively promote efforts to acquire new demand under the environment of "Post-Corona" and flexibly respond to changes in the external environment while emphasizing customer safety and security. Going forward, INV will continue to implement various strategies for further growth and financial stability, including the following measures.
Further external growth utilizing sponsor support
Asset recycling: property acquisitions using the proceeds from sales
Internal growth at hotels through reducing costs, stimulating existing demand and creating new demand by collaborating with hotel operators
Further internal growth at residential properties
Response to the risk of rising interest rates
Details of the future growth strategy are as follows.
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 be achieved, to build a portfolio with a good balance between growth and stability.
In regard to hotels, INV will take into consideration demands of business and leisure customers in nearby areas, and leasing contract types when making investment decisions, with the aim of acquiring properties where growth and stability of 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 can achieve increases in rent.
Properties Acquired from affiliates of the Fortress Group (as of the date of this document)
Year
Properties acquired
Total acquisition price
2012
24 residential properties (Note 1)
JPY 14,043 million (Note 1)
2014
20 hotels
JPY 45,373 million
2015
14 hotels and
three residential properties (Note 2)
JPY 45,238 million (Note 2)
2016
11 hotels and
two residential properties
JPY 92,804 million
2017
six hotels and
two residential properties (Note 3)
JPY 90,006 million (Note 3)
2018
12 hotels (Note 4)
JPY 104,280 million (Note 4)
2019
18 hotels
JPY 82,646 million
2020
Two hotels
JPY 16,236 million
2023
Six hotels
JPY 57,230 million
2024
12 hotels
JPY 104,420 million
Total
132 properties
(of which 101 are hotels and 31 are residential properties)
JPY 652,278 million
(of which hotels: JPY 600,640 million; residential: JPY 51,638 million)
(Note 1) Of the properties acquired from affiliates of the Fortress Group, 15 residential properties have been sold.
(Note 2) Of the properties acquired from affiliates of the Fortress Group, one residential property has been sold.
(Note 3) Of the properties acquired from affiliates of the Fortress Group, one residential property has been sold. Sheraton Grande Tokyo Bay Hotel was acquired through a special purpose company, of which INV owns the preferred equity interest, and is counted as one property and INV's investment amount of the preferred equity interest is counted as the acquisition price of the preferred equity interest.
(Note 4) The Cayman Hotels acquired by the Cayman SPC, of which INV owned the TK interest, are counted as two properties and INV's investment amount of the TK interest is used as the acquisition price of the TK interest. After the Structure Change, INV currently has direct ownership of the Leasehold of the Cayman Hotels.
Property Sales
INV considers the possibility of portfolio optimization upon consideration of the portfolio sector composition, geographic distribution, and competitiveness of each property as appropriate.
Strategy for internal growth (Hotels)
Of the 102 domestic hotels (Note 1) owned by INV as of the end of the Reporting Period, 94 hotels use a variable rent scheme. In the variable rent scheme, in principle, INV receives all of the gross operating profit (GOP) after deducting payment of management fees for the hotel operator as rents. For 91 hotels of the 94 hotels, MHM and subsidiaries of MHM have implemented sophisticated revenue management initiatives seeking to maximize revenue through effectively capturing accommodation demand. As a result, INV can directly enjoy the hotel revenue upside through this variable rent scheme.
During the COVID-19 pandemic and post COVID-19 periods, the MHM Group has taken steps to reduce hotel operating expenses and recover revenues by reviewing its operational strategy. INV will continue to strive to minimize the impact of rising costs such as labor costs, utility costs and foodstuffs by means of a thorough review of staffing and work shifts, continuous efforts to reduce fixed costs, and strategies to maximize GOPPAR (GOP per the number of rooms available for sale).
For hotels, renovation of rooms and replacement of fixtures and fittings are indispensable to maintain and
increase revenues and operate stably in a planned manner.
(Note 1) Including Sheraton Grande Tokyo Bay Hotel (the preferred equity interest).
(Residential properties and others)
INV will continue to strengthen its collaborative ties with property managers and brokers to further boost occupancy rates and earning capabilities of its properties. With respect to INV's residential properties, INV will focus on increasing the occupancy rates and rents for both new lease contracts and lease renewals for all its properties as well as formulating net leasing cost reduction policies in order to continue maximizing profits. Further, the implementation of appropriate maintenance and repair plans is of the utmost importance in maintaining and enhancing 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.
Financial strategy
INV will continue to extend the average interest-bearing debt repayment periods, diversify the loan maturity dates and diversify financing measures while paying attention to fund procurement costs, as well as maintaining an appropriate fixed interest rate ratio to mitigate the risk of rising interest rates.
In addition, INV will seek to improve the credit rating (the long-term issuer rating "A+" (Outlook: Stable)) obtained from Japan Credit Rating Agency, Ltd. (JCR) by proceeding with these measures.
Compliance risk management
While the executive director of INV concurrently serves as the representative director at CIM, two supervisory directors (an external attorney and an external certified public account) oversee the execution of the executive director's duties via the Board of Directors of INV.
CIM has a compliance officer who is responsible for compliance with laws, regulations and other relevant matters as well as overall management of transactions with sponsor related parties. Moreover, it has in place a compliance committee which, chaired by such compliance officer, is in charge of deliberating on compliance with laws, regulations and other relevant matters as well as transactions with sponsor related parties. Compliance committee meetings are attended by an 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. No resolution will be adopted unless the outside expert agrees.
When INV conducts certain transactions such as asset acquisition from sponsor related parties, prior approvals by the Board of Directors of INV are required to ensure an objectivity in deliberation regarding conflicts of interests. In such agenda, only two supervisory directors (a lawyer and a certified public accountant) will participate in the vote, and the executive director who concurrently serves as the representative director of CIM will not participate in the vote as he is a special interested party.
INV intends to continually take steps to strengthen its compliance structure.
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", the "Greenhouse Gas Emissions Reduction Policy", the "Water Saving Policy" and the "Waste Management Policy" which stipulate efforts to reduce environmental impact as initiatives for environment. In addition, CIM has established the
"Sustainable Procurement Policy" in order to promote initiatives for ESG throughout the value chain of INV's real estate portfolio and concluded the "Green Lease" contract with tenants to collaborate with tenants on measures related to the environmental consideration of real estate, such as proactive introductions of energy-saving equipment such as LED lighting.
Furthermore, as of the date of this document, INV acquired CASBEE Certification for Buildings (Existing Buildings) for two hotels, and Certification for CASBEE for Real Estate for two residential properties. CASBEE is a method that comprehensively assesses the quality of a building, and evaluates features such as interior comfort and scenic aesthetics, in consideration of environment practices including use of materials and equipment that save energy or achieve smaller environmental loads. Also, as of the date of this document, 19 hotels owned by INV acquired the certification of Building-Housing Energy-efficiency Labeling System ("BELS"). In particular, Hotel MyStays Premier Akasaka, Hotel MyStays Fukuoka Tenjin, Hotel MyStays Yokohama Kannai Hotel MyStays Oita, Hotel MyStays Haneda and Hotel MyStays Matsuyama have been rated five stars "★★★★★" due to high energy conservation performance.
In addition to the acquisition of environmental certifications for its properties, INV issued green bonds in total amount of JPY 3,500 million and executed refinancing with green loans in total amount of JPY 22,456 million as of the date of this document to further promote its sustainability initiatives and to strengthen its fund-raising base by expanding the investor base interested in ESG investment.
As initiatives for society, CIM is working on various measures for tenants, CIM's officers, and employees. CIM conducts the "Tenant Satisfaction Survey" for residents of INV's residential properties to collect opinions and requests of residents and utilize them for asset management, and provides sustainability-focused training for all officers and employees at least once a year to help officers and employees acquire knowledge and raise awareness of sustainability considerations in line with business practices. Moreover, as initiatives for CIM's employees, CIM executes various initiatives such as the establishment of a DEI (Diversity, Equity and Inclusion) policy to nourish an inclusive organizational culture and to establish an inclusive value chain, as well as the introduction of a "Qualification Acquisition Support Program" to cover a certain amount of expenses required to acquire and maintain qualifications for employees to develop and maintain competitive human resources and support employees skill and productivity improvement. Furthermore, INV conducts an employee satisfaction survey once every three years with the aim of improving its working environment, and provides a full subsidy for a comprehensive medical checkup without age restrictions.
As a result of other sustainability promotion activities, INV received a "3-Star" rating for the second consecutive year in the 2024 GRESB Real Estate Assessment, an international benchmark assessment that measures ESG integration of real estate companies and funds on a five-level rating scale, and an "A level" in the GRESB Public Disclosure assessment, the highest rating for the fourth consecutive year.
INV will continue to recognize its social responsibility to the environment and local communities as a J-REIT with hotels and residences as our core assets, and will proactively implement ESG-friendly investment management and sustainability initiatives that take advantage of asset characteristics and carry out social contribution activities.
Significant Subsequent Events
Not applicable. Reference information is stated below. (Reference Information)
Debt Financing
INV decided to execute new borrowings (New Syndicate Loan (016)) on December 25, 2024 and borrowed on January 16, 2025 in order to repay New Syndicate Loan (P) in the amount of JPY 4,491 million, a tranche of New Syndicate Loan (L) in the amount of JPY 4,943 million and a tranche of New Syndicate Loan (M) in the amount of JPY 5,796 million due on January 6, 2025.
New Syndicate Loan (016)
Lender | Borrowing Date | Borrowing Amount (JPY million) | Interest Rate (annual rate) | Maturity Date | Borrowing Method |
The Nomura Trust and Banking Co., Ltd. | January 16, 2025 | 100 | Floating interest rate (Note 1) | March 14, 2030 | Unsecured/ non guarantee |
Development Bank of Japan, Inc. | January 16, 2025 | 300 | Floating interest rate (Note 2) | March 14, 2031 | Unsecured/ non guarantee |
MUFG Bank, Ltd. | January 16, 2025 | 2,590.8 | Fixed interest rate 1.65398％ | March 14, 2031 | Unsecured/ non guarantee |
Mizuho Bank, Ltd. Sumitomo Mitsui Trust Bank, Limited Sumitomo Mitsui Banking Corporation The Kiyo Bank, Ltd. The Yamaguchi Bank, Ltd. Aozora Bank, Ltd. SBI Shinsei Bank, Limited | January 16, 2025 | 3,342.2 | Floating interest rate (Note 3) | March 14, 2031 | Unsecured/ non guarantee |
【Green loan】 Mizuho Bank, Ltd. Sumitomo Mitsui Trust Bank, Limited Sumitomo Mitsui Banking Corporation The Yamaguchi Bank Ltd. Aozora Bank, Ltd. SBI Shinsei Bank, Limited | January 16, 2025 | 8,897 | Floating interest rate (Note 3) | March 14, 2031 | Unsecured/ non guarantee |
Total | 15,230 | ||||
(Note 1) 1-month JPY TIBOR (Base Rate) + spread (0.50000%). (Note 2) 3-month JPY TIBOR (Base Rate) + spread (0.60000%). (Note 3) 1-month JPY TIBOR (Base Rate) + spread (0.60000%).
Overview of the Investment Corporation
Overview of Investment
By Period
39th fiscal period
40th fiscal period
41st fiscal period
42nd fiscal period
43rd fiscal period
Results Dates
As of Dec. 31, 2022
As of Jun. 30, 2023
As of Dec. 31, 2023
As of Jun. 30, 2024
As of Dec. 31, 2024
Number of issuable investment units
(Unit)
10,000,000
10,000,000
10,000,000
10,000,000
20,000,000
Number of investment units
issued and
outstanding (Unit)
6,096,840
6,096,840
6,737,121
6,737,121
7,646,453
Unitholders' capital (JPY million)
235,701
235,701
270,101
270,101
326,079
Number of total unitholders
27,005
25,829
26,611
31,658
34,999
Notes regarding Unitholders
Major unitholders at the end of the Reporting Period are as below.
Name
Number of units held
% of total number of investment units issued and outstanding
The Master Trust Bank of Japan, Ltd. (trust account)
1,417,170
18.53
Custody Bank of Japan, Ltd. (trust account)
1,395,081
18.24
The Nomura Trust and Banking Co., Ltd. (investment trust account)
401,578
5.25
STATE STREET BANK AND TRUST COMPANY 505001
182,246
2.38
THE NOMURA TRUST AND BANKING CO., LTD. AS THE TRUSTEE OF
REPURCHASE AG FUND 2024-09 (LIMITED
OT FINANC IN RESALE RSTRCT)
149,852
1.95
GOLDMAN SACHS INTERNATIONAL
143,933
1.88
FJODF GP INV HOLDINGS LLC
115,931
1.51
STATE STREET BANKWEST CLIENT -TREATY 505234
112,772
1.47
STATE STREET BANK AND TRUST COMPANY 505103
109,958
1.43
STATE STREET BANK AND TRUST
COMPANY 505325
108,983
1.42
Total
4,137,504
54.11
(Note 1) Percentages are rounded down to two decimal places.
Notes regarding Directors
Directors at the end of the Reporting Period are listed below.
Position
Name
Concurrent responsibilities
Directors' remuneration for operating period
(JPY thousand)
Executive Director
Naoki Fukuda
President and CEO, Consonant Investment Management Co., Ltd.
(current position)
-
Supervisory Director
Yoshihiro Tamura
Attorney,
Shiba-Daimon Law Office Statutory Auditor,
BEQONE PARTNERS, Inc.
(current position)
2,400
Marika Nagasawa
Certified Public Accountant, Avantia GP
Marika Nagasawa Accounting
Firm
2,400
Auditor
Ernst & Young ShinNihon LLC (Note 1)
-
40,200
(Note 1) The auditor's remuneration includes JPY 1,200 thousand for auditing English financial statements and JPY 2,130 thousand for the preparation of a comfort letter. In addition, non-audit remuneration to a person belonging to the same network as the accounting auditor is JPY 7,854 thousand.
(Note 2) Executive 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 as well 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 the Investment 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.
Notes regarding Directors Liability Insurance
Directors Liability Insurance concluded by INV is as below.
Insured Person
Overview of the Insurance Contract
All Executive Directors and Supervisory Directors
(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.
(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 from compensation, measures are taken so that duties of directors are executed properly.
Asset Management Company, Asset Custody Companies, and General Administrative Agents
The asset management company, asset custody companies, and general administrative agents at the end of the Reporting Period are as below.
Delegation category | Name |
Asset management company | Consonant Investment Management Co., Ltd. |
Asset custody company | Sumitomo Mitsui Trust Bank, Limited |
General administrative agent (administration of unitholders' registry, etc.) | Sumitomo Mitsui Trust Bank, Limited |
General administrative agent (institutional operations (Note 1)) | Consonant Investment Management Co., Ltd. |
General administrative agent (accounting operations, etc.) | Sumitomo Mitsui Trust Bank, Limited |
Special account management company | Mitsubishi UFJ Trust and Banking Corporation Limited (Note 2) / Sumitomo Mitsui Trust Bank, Limited (Note 3) |
General administrative agent (Fiscal agent and administrative duties pertaining to investment corporation bonds, etc.) | Mizuho Bank, Ltd. |
(Note 1) (i) Tasks related to the running of general unitholders' meetings for INV (excluding tasks related to the mailing of general unitholders' meetings and the receipt and counting of voting forms), (ii) tasks related to the running of the meetings of the Board of Directors of INV, and (iii) or tasks incidental or related to that mentioned in (i) or (ii) are delegated.
(Note 2) Conducts administrative tasks related to the creation, maintenance, and disposition of transfer savings account registers for special accounts of unitholders of the INV before the merger (former Tokyo Growth REIT Investment Inc.) as well as tasks related to other transfer savings account registers.
(Note 3) Conducts administrative tasks related to the creation, maintenance, and disposition of transfer savings account registers for special accounts of unitholders of the former LCP as well as tasks related to other transfer savings account registers.
Status of Investment Corporation's Assets under ManagementComposition of INV's Assets
Type of asset
Purpose
Geographic area (Note 1)
Fiscal period ended June 30, 2024
(as of June 30, 2024)
Fiscal period ended December 31, 2024
(as of December 31, 2024)
Amount held
(JPY million) (Note 2)
Percentage of
total assets (%)
Amount held
(JPY million) (Note 2)
Percentage of
total assets (%)
Real estate
Hotels
Greater Tokyo
Area (Note 3)
1
0.0
1
0.0
Major regional
cities
-
-
-
-
Overseas (Note 4)
32,496
5.7
32,248
4.7
Subtotal
32,498
5.7
32,249
4.7
Total real estate
32,498
5.7
32,249
4.7
Real estate in trust
Residences
Greater Tokyo area
28,164
4.9
28,007
4.1
Major regional
cities
5,733
1.0
5,670
0.8
Subtotal
33,897
6.0
33,677
5.0
Offices
/Commercial Facilities
Greater Tokyo area
-
-
-
-
Major regional
cities
1,575
0.3
1,558
0.2
Subtotal
1,575
0.3
1,558
0.2
Hotels
Greater Tokyo area
167,379
29.4
183,595
27.0
Major regional
cities
257,890
45.3
344,702
50.7
Subtotal
425,269
74.7
528,297
77.7
Total real estate in trust
460,742
81.0
563,533
82.9
Preferred equity interest (Note 5)
17,856
3.1
17,856
2.6
Deposits and other assets
57,919
10.2
66,364
9.8
Total assets (Note 6)
569,016
(493,241)
100.0
(86.7)
680,004
(595,783)
100.0
(87.6)
(Note 1) "Greater Tokyo area" refers to Tokyo, Kanagawa, Chiba and Saitama.
(Note 2) "Amount held" is from the balance sheet as of the end of the Reporting Period (book value after depreciation for real estate, leasehold and real estate in trust). The amounts held for hotels are calculated by including book value of accompanying FF&E, in principle.
(Note 3) While Hotel MyStays Haneda is held as trust beneficiary interests, part of accompanying FF&E is held in kind, which falls under this category.
(Note 4) The Leasehold of the Cayman Hotels falls under the category of "Real estate" for "Overseas." The leasehold interests 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 to directly owning the Leasehold of the Cayman Hotels, which are the underlying assets of the TK interest.
(Note 5) Preferred equity interest issued by Kingdom Special Purpose Company, with the Sheraton Grande Tokyo Bay Hotel as 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).
(Note 6) The figures indicated in parenthesis under "Total assets" show the amounts related to owned real estate (excluding the amount of preferred equity securities owned).
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 (m2) (Note 2)
Leased area (m2)
Occupancy rate (%) (Note 3)
Ratio of
rental revenue (%) (Note 4)
Main use
D84
Fusaki Beach Resort Hotel & Villas
39,544
23,573.57
23,573.57
100.0
6.6
Hotel
D90
Art Hotel Osaka Bay Tower &
Solaniwa Onsen
30,545
44,759.49
44,759.49
100.0
5.4
Hotel
D200
Westin Grand Cayman Seven Mile
Beach Resort & Spa
27,221
21,528.23
21,528.23
100.0
-
Hotel
D43
Hotel MyStays Gotanda Station
26,078
10,137.88
10,137.88
100.0
2.7
Hotel
D60
Hotel MyStays Premier Akasaka
19,922
8,620.69
8,620.69
100.0
3.4
Hotel
D44
Hotel Epinard Nasu
17,700
37,702.33
37,702.33
100.0
5.2
Hotel
D91
Hakodate Kokusai Hotel
16,874
34,511.60
34,511.60
100.0
3.4
Hotel
D92
Art Hotel Nippori Lungwood
16,399
10,984.28
10,984.28
100.0
1.5
Hotel
D61
Hotel MyStays Premier Sapporo Park
15,644
21,670.64
21,670.64
100.0
2.3
Hotel
D64
Hotel MyStays Sapporo Aspen
15,089
15,313.17
15,313.17
100.0
2.1
Hotel
Total
225,021
228,801.88
228,801.88
100.0
34.0
(Note 1) Securities described in "6 Asset Portfolio of Securities" later in this document are excluded. (Note 2) Leasable area of Westin Grand Cayman Seven Mile Beach Resort & Spa indicates the area subject
to management contract.
(Note 3) "Occupancy rate" is calculated by dividing the leased area by leasable area, and rounded to one decimal place.
(Note 4) "Ratio of rental revenue" are rounded to one decimal place.
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 the Reporting Period is as below.
Name of property | Location (Note 1) | Type of asset | Leasable area (m2) (Note 2) | Appraisal value as of the end of the Reporting Period (JPY million) (Note 3) | Book value (JPY million) | |
A26 | Nisshin Palacestage Daitabashi | 1-31-2 Izumi, Suginami-ku, Tokyo | Trust beneficiary interest (Note 4) | 1,771.13 | 1,400 | 1,070 |
A28 | Growth Maison Gotanda | 2-26-6 Nishi-Gotanda, Shinagawa-ku, Tokyo | Trust beneficiary interest | 1,051.50 | 1,210 | 809 |
A29 | Growth Maison Kameido | 6-58-16 Kameido, Koto-ku, Tokyo | Trust beneficiary interest | 1,367.96 | 1,400 | 917 |
A30 | Emerald House | 3-27-18 Itabashi, Itabashi-ku, Tokyo | Trust beneficiary interest | 2,152.31 | 1,590 | 1,306 |
A32 | Suncrest Shakujii-Koen | 3-15-35 Takanodai, Nerima-ku, Tokyo | Trust beneficiary interest (Note 4) | 3,029.16 | 1,370 | 1,038 |
A33 | Growth Maison Shin-Yokohama | 3-16-2 Shin-Yokohama, Kohoku-ku, Yokohama-shi, Kanagawa | Trust beneficiary interest (Note 4) | 1,858.44 | 1,390 | 912 |
A34 | Belle Face Ueno-Okachimachi | 1-27-10 Higashi-Ueno, Taito-ku, Tokyo | Trust beneficiary interest (Note 4) | 1,351.11 | 1,250 | 883 |
A35 | Grand Rire Kameido | 3-39-12 Kameido, Koto-ku, Tokyo | Trust beneficiary interest (Note 4) | 1,562.26 | 1,170 | 746 |
A37 | Growth Maison Yoga | 1-15-15 Okamoto, Setagaya-ku, Tokyo | Trust beneficiary interest (Note 4) | 1,015.34 | 918 | 705 |
A38 | Route Tachikawa | 3-7-6 Nishikicho, Tachikawa-shi, Tokyo | Trust beneficiary interest | 1,368.57 | 772 | 688 |
A39 | Shibuya-Honmachi Mansion | 2-35-2 Honmachi, Shibuya-ku, Tokyo | Trust beneficiary interest (Note 4) | 1,167.50 | 788 | 718 |
A40 | City Heights Kinuta | 4-13-15 Kinuta, Setagaya-ku, Tokyo | Trust beneficiary interest | 1,235.93 | 674 | 657 |
A41 | Acseeds Tower Kawaguchi- Namiki | 2-5-13 Namiki, Kawaguchi-shi, Saitama | Trust beneficiary interest (Note 4) | 1,210.74 | 877 | 475 |
A43 | College Square Machida | 3-4-4 Nakamachi, Machida-shi, Tokyo | Trust beneficiary interest (Note 4) | 1,047.75 | 551 | 545 |
A44 | Belair Meguro | 1-2-15 Meguro, Meguro-ku, Tokyo | Trust beneficiary interest (Note 4) | 557.05 | 710 | 539 |
A45 | Wacore Tsunashima I | 2-7-47 Tarumachi, Kohoku-ku, Yokohama-shi, Kanagawa | Trust beneficiary interest (Note 4) | 907.46 | 603 | 555 |
Name of property | Location (Note 1) | Type of asset | Leasable area (m2) (Note 2) | Appraisal value as of the end of the Reporting Period (JPY million) (Note 3) | Book value (JPY million) | |
A46 | Foros Nakamurabashi | 1-6-6 Kouyama, Nerima-ku, Tokyo | Trust beneficiary interest (Note 4) | 815.77 | 696 | 488 |
A47 | Growth Maison Kaijin | 5-29-51 Kaijin, Funabashi-shi, Chiba | Trust beneficiary interest (Note 4) | 2,040.27 | 612 | 511 |
A48 | College Square Machiya | 7-3-1 Arakawa, Arakawa-ku, Tokyo | Trust beneficiary interest (Note 4) | 871.35 | 660 | 435 |
A59 | Towa City Coop Shinotsuka II | 5-49-7 Higashi-Ikebukuro, Toshima-ku, Tokyo | Trust beneficiary interest | 1,627.13 | 1,400 | 787 |
A61 | Bichsel Musashiseki | 1-22-7 Sekimachi-Kita, Nerima-ku, Tokyo | Trust beneficiary interest | 1,220.24 | 866 | 576 |
A63 | Towa City Coop Sengencho | 4-338-2 Sengencho, Nishi-ku, Yokohama-shi, Kanagawa | Trust beneficiary interest | 3,426.36 | 1,560 | 988 |
A64 | Royal Park Omachi | 2-11-10 Omachi, Aoba-ku, Sendai-shi, Miyagi | Trust beneficiary interest | 1,929.59 | 716 | 366 |
A65 | Lexington Square Haginomachi | 1-15-18 Haginomachi, Miyagino-ku, Sendai-shi, Miyagi | Trust beneficiary interest | 1,528.58 | 464 | 248 |
A66 | Visconti Kakuozan | 2-44 Otanacho, Chikusa-ku, Nagoya-shi, Aichi | Trust beneficiary interest | 705.75 | 298 | 224 |
A72 | Lexington Square Honjo Azumabashi | 4-20-6 Higashi-Komagata, Sumida-ku, Tokyo | Trust beneficiary interest | 784.74 | 812 | 406 |
A73 | AMS TOWER Minami 6-Jo | 2-5-15 Minami 6-Jo Nishi, Chuo-ku, Sapporo-shi, Hokkaido | Trust beneficiary interest | 4,460.56 | 1,360 | 848 |
A84 | Revest Heian | 2-13-17 Heian, Kita-ku, Nagoya-shi, Aichi | Trust beneficiary interest | 1,554.03 | 877 | 464 |
A87 | Excellente Kagurazaka | 128-1 Yamabukicho, Shinjuku-ku, Tokyo, and other one parcel | Trust beneficiary interest | 701.92 | 878 | 476 |
A90 | Queen's Court Fukuzumi | 1-3-10 Fukuzumi, Koto-ku, Tokyo | Trust beneficiary interest | 765.18 | 838 | 394 |
A92 | Belair Oimachi | 5-14-17 Higashi-Oi, Shinagawa-ku, Tokyo | Trust beneficiary interest | 530.60 | 679 | 371 |
A93 | Siete Minami-Tsukaguchi | 3-18-29 Minami-Tsukaguchimachi, Amagasaki-shi, Hyogo | Trust beneficiary interest | 1,020.86 | 585 | 327 |
A94 | Prime Life Sannomiya Isogami Koen | 4-3-23 Isogamidori, Chuo-ku, Kobe-shi, Hyogo | Trust beneficiary interest | 789.12 | 581 | 320 |
A96 | Century Park Shinkawa 1-bankan | 4-1-2 Shinkawacho, Minato-ku, Nagoya-shi, Aichi | Trust beneficiary interest | 1,477.62 | 551 | 278 |
A97 | West Avenue | 1-5-17 Nishi, Kunitachi-shi, Tokyo | Trust beneficiary interest | 794.80 | 433 | 299 |
A99 | Prime Life Mikage | 2-25-11 Mikage Tsukamachi, Higashinada-ku, Kobe-shi, Hyogo | Trust beneficiary interest | 761.18 | 440 | 252 |
A101 | Lieto Court Mukojima | 5-45-10 Mukojima, Sumida-ku, Tokyo | Trust beneficiary interest | 2,940.20 | 2,340 | 1,549 |
Name of property | Location (Note 1) | Type of asset | Leasable area (m2) (Note 2) | Appraisal value as of the end of the Reporting Period (JPY million) (Note 3) | Book value (JPY million) | |
A102 | Lieto Court Nishi-Ojima | 2-41-14 Ojima, Koto-ku, Tokyo | Trust beneficiary interest | 2,048.28 | 2,240 | 1,492 |
A103 | Royal Parks Momozaka | 5-38 Fudegasakicho, Tennouji-ku, Osaka-shi, Osaka | Trust beneficiary interest | 8,776.26 | 3,160 | 2,337 |
A104 | Royal Parks Shinden | 3-35-20 Shinden, Adachi-ku, Tokyo | Trust beneficiary interest | 15,797.29 | 6,080 | 4,331 |
A106 | Royal Parks Seasir Minami-Senju | 3-41-7 Minami-Senju, Arakawa-ku, Tokyo | Trust beneficiary interest | 6,496.86 | 3,290 | 2,325 |
Subtotal | 86,518.75 | 49,089 | 33,677 | |||
B18 | AEON TOWN Sukagawa | 105 Furukawa, Sukagawa-shi, Fukushima | Trust beneficiary interest | 18,440.58 | 2,380 | 1,558 |
Subtotal | 18,440.58 | 2,380 | 1,558 | |||
D01 | Hotel MyStays Kanda | 1-2-2 Iwamotocho, Chiyoda-ku, Tokyo | Trust beneficiary interest | 2,585.72 | 5,200 | 2,714 |
D02 | Hotel MyStays Asakusa | 1-21-11 Honjo, Sumida-ku, Tokyo | Trust beneficiary interest | 3,327.38 | 4,730 | 2,417 |
D03 | Hotel MyStays Kyoto-Shijo | 52 Kasabokocho, Higashiiru, Aburanokoji, Shijyodori, Shimogyo-ku, Kyoto-shi, Kyoto | Trust beneficiary interest | 7,145.53 | 8,630 | 5,286 |
D04 | MyStays Shin-Urayasu Conference Center | 2-1-4 Akemi, Urayasu-shi, Chiba | Trust beneficiary interest | 6,232.30 | 8,850 | 4,306 |
D05 | Hotel MyStays Maihama | 3-5-1 Tekkodori, Urayasu-shi, Chiba | Trust beneficiary interest | 2,456.36 | 8,580 | 4,363 |
D06 | Hotel MyStays Premier Dojima | 2-4-1 Sonezakishinchi, Kita-ku, Osaka-shi, Osaka | Trust beneficiary interest | 9,445.32 | 6,990 | 3,650 |
D07 | Hotel MyStays Nagoya-Sakae | 2-23-22 Higashi-Sakura, Naka-ku, Nagoya-shi, Aichi | Trust beneficiary interest | 9,064.71 | 5,650 | 2,503 |
D08 | Hotel MyStays Sakaisuji-Honmachi | 1-4-8 Awaji-machi, Chuo-ku, Osaka-shi, Osaka | Trust beneficiary interest | 4,188.83 | 3,420 | 2,166 |
D09 | Hotel MyStays Yokohama | 4-81 Sueyoshicho, Naka-ku, Yokohama-shi, Kanagawa | Trust beneficiary interest | 7,379.43 | 4,510 | 2,029 |
D10 | Hotel MyStays Nippori | 5-43-7 Higashi-Nippori, Arakawa-ku, Tokyo | Trust beneficiary interest | 1,719.29 | 2,690 | 1,700 |
D11 | Hotel MyStays Fukuoka-Tenjin-Minami | 3-14-20 Haruyoshi, Chuo-ku, Fukuoka-shi, Fukuoka | Trust beneficiary interest | 3,412.71 | 6,370 | 1,346 |
D12 | Flexstay Inn Iidabashi | 3-26 Shin-Ogawamachi, Shinjuku-ku, Tokyo | Trust beneficiary interest | 2,953.38 | 3,760 | 1,619 |
D13 | Hotel MyStays Ueno Inaricho | 1-5-7 Matsugaya, Taito-ku, Tokyo | Trust beneficiary interest | 1,150.76 | 2,260 | 1,140 |
D14 | Flexstay Inn Shinagawa | 1-22-19 Kita-Shinagawa, Shinagawa-ku, Tokyo | Trust beneficiary interest | 1,134.52 | 2,060 | 1,154 |
D15 | Flexstay Inn Tokiwadai | 1-52-5 Tokiwadai, Itabashi-ku, Tokyo | Trust beneficiary interest | 2,539.75 | 2,200 | 1,172 |
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Invincible Investment Corporation published this content on May 12, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 12, 2025 at 00:55 UTC.
