Financial Results (AssetManagementReport 202506)

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.

Fiscal Period ended June 30, 2025 (January 1, 2025 to June 30, 2025) Content

Greetings from Naoki Fukuda, Executive Director of Invincible Investment Corporation and

President & CEO of Consonant Investment Management Co., Ltd. Summary of Financial Results

Overview of the Asset Acquired

Initiatives for the Fiscal Period ended June 30, 2025 ESG Initiatives

Unitholder Benefit Program

1. Asset Management Report

2. Balance Sheet

3. Statement of Income and Retained Earnings

4. Statement of Changes in Net Assets

5. Notes to Financial Statements

6. Statement of Cash Distribution

7. Statement of Cash Flows (Reference Information) Domestic Portfolio Map (As of August 31, 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 44th fiscal period (from January 1, 2025 to June 30, 2025) (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 growth in inbound demand, which expanded despite the appreciation of the Japanese Yen. There was an unexpected decrease in demand from some East Asian countries due to unfounded rumors suggesting a major disaster would occur in Japan on July 5, 2025, which had no scientific basis. However, the total number of foreign visitors to Japan in July 2025 reached 3.43 million (estimated) according to the Japan National Tourism Organization, achieving the highest July figure on record. We believe that inbound demand, one of the key factors for the growth of INV’s hotels, remains strong overall. Against this backdrop, we are actively implementing value-enhancement projects at our hotels in order to improve profitability. During the Reporting Period, we renovated 10 villas (cottage) at “Fusaki Beach Resort Hotel & Villas”, our flagship hotel.

As for the Cayman hotels, revenues decreased slightly from the same period last year due to the partial sales stoppage caused by the large-scale renovation work at Sunshine Suites Resort which is taking longer than expected. However, the renovation work is currently in the final stages ahead of the full re-opening this autumn. The guest rooms that have already been completed feature brighter color schemes compared to before the renovation. We expect that the hotel will be bustling with guests during the peak winter season.

On the financing side, we worked to manage our finances by keeping a close eye on interest rate trends and maintained the fixed interest rate ratio at approximately 60%. Furthermore, the credit rating outlook was upgraded from A+ (stable) to A+ (positive) by Japan Credit Rating Agency in June 2025, which we believe reflects the positive evaluation of our initiatives that we have implemented to date, including extending loan terms, diversifying repayment dates, and increasing the fixed interest rate ratio.

As a result, INV announced a distribution per unit of JPY 1,895 by recording operating revenues of JPY 25,107 million, operating income of JPY 16,935 million, and net income of JPY 14,366 million in the Reporting Period.

On August 27, after the end of the Reporting Period, we acquired 10 domestic hotels with new borrowings and cash on hand. Of these 10 hotels, nine hotels are resort hotels located in the regional areas of Japan where future growth can be expected, along with one limited service hotel. These resort hotels have unique features, appealing to guests in their respective areas, and are equipped with attractive hot spring facilities, surrounded by tourist attractions such as the sea, mountains, clear streams, large historic shrines, and provide delicious cuisine made with locally sourced ingredients. We look forward to welcoming our unitholders to these hotels.

The current environment will continue to require us to address rising costs, including interest rates. However, we intend to further increase DPU through strategic investments such as acquiring new hotels to enhance earnings, and renovating existing 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

Distribution per unit for the 44th fiscal period

(the fiscal period ended June 2025)

JPY 1,895

(Note) The forward-looking statements, forecasts and goals described in this report are based on available information, assumptions and estimates as of August 31, 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.

INV acquired 10 domestic hotels for a total acquisition price of JPY 342 billion on August 27, 2025.

INV was awarded “J-REIT Deal of the Year” at the “DEALWATCH AWARDS 2024” hosted by “DealWatch” of London Stock Exchange Group PLC (LSEG) for its ninth Public Offering conducted in 2024 (acquired 12 domestic hotel assets, total acquisition price of JPY 104.4 billion). This marks the first time INV has received this award in ten years, since winning in 2014 when INV started to invest in hotel assets. This time, INV was recognized for its timely execution of the largest public offering among J-REITs in fiscal year 2024, despite a sluggish J-REIT market.

INV continues to strive to maximize unitholder value through both internal and external growth.

Naoki Fukuda

Executive Director, Invincible Investment Corporation

President & CEO, Consonant

Investment Management Co., Ltd. (second from left)

Naoto Ichiki

Chairman and Director, Consonant Investment management Co., Ltd. (middle)

The “Former Hozankaku Garden”, a strolling pond-style garden and symbol of Art Hotel Kokura New Tagawa, has been highly evaluated as an example contributing to the development of Japanese landscape architecture. It has been designated as a registered monument of Japan (Places of Scenic Beauty). Alongside the three Sukiya-zukuri style buildings already registered as a Registered Tangible Cultural Property (buildings), efforts will continue to preserve and utilize the garden while maintaining public access and utilization.

Overview of the garden

For more detail, please refer: https://art-kokura.com/garden/

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.

External Certification (Total 32 Properties)

*Certifications acquired in the Fiscal Period ended 2025 are circled in blue.

(as of June 30, 2025)

(Note 1) "Green Key certificate" is a prestigious international eco-label given to environmentally friendly accommodation and leisure facilities, and is a certification system established by the Foundation for International Environmental

(Note 2) The property is the underlying asset of the preferred equity interests as defined in Article 2, Paragraph 9 of the Act on Securitization of Assets (Note 3) The duplicates are excluded if the same properties have multiple certifications

MyStays Hotel Management Co., Ltd. changed its company name to Iconia Hospitality K.K. (“ICN”) on July 1, 2025. Furthermore, ICN launched a new loyalty program “GoTo Pass”, common across the group’s facilities, in the aim to improve its member’s usability by allowing them to accumulate and redeem points at over 170 facilities including hotels, hot spring resorts, restaurants, banquet halls, day-trip hot springs, and leisure facilities.

For more detail, please refer to:

Change of the company name: https://iconia.co.jp/en-us/news/iconia-hospitality “GoTo Pass”: https://gotopass.jp/en

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 hotels managed by ICN 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)

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 August 31, 2025, and the program may be changed or abolished even after it is has been introduced.

(Note 2) All hotels operated by ICN, which are listed on the Official Site of ICN (https://iconia.co.jp/en-us/hotels/). However, hotels that ICN just started to operate might not be eligible for the Unitholder Benefit Program.

(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.

1. Asset Management Report

   Overview of Asset Management

   1. Trends in Investment Corporation’s Operating Results

      By Period			40th fiscal period	41st fiscal period	42nd fiscal period	43rd fiscal period	44th fiscal period
      Reporting period			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	Jan. 1, 2025 to Jun. 30, 2025
      Operating Results	Operating revenue	(JPY thousand)	15,914,981	18,819,119	21,136,007	25,555,158	25,107,832
      	(Rental revenue – real estate)	(JPY thousand)	(12,000,955)	(16,696,076)	(14,933,032)	(23,205,026)	(19,841,850)
      	Operating expenses	(JPY thousand)	5,558,241	6,230,207	6,500,276	7,803,491	8,172,382
      	(Property-related expenses)	(JPY thousand)	(4,488,341)	(5,096,717)	(5,107,042)	(6,325,294)	(6,575,459)
      	Operating income (loss)	(JPY thousand)	10,356,739	12,588,912	14,635,731	17,751,667	16,935,449
      	Ordinary income (loss)	(JPY thousand)	8,914,347	11,033,176	12,901,166	15,138,810	14,366,975
      	Net income (loss)	(JPY thousand)	8,913,742	11,032,571	12,900,561	15,138,205	14,366,370
      Assets	Total assets (change from last period)	(a) (JPY thousand) (%)	496,819,930 (0.5)	563,393,061 (13.4)	569,016,514 (1.0)	680,004,964 (19.5)	675,146,027 (-0.7)
      	Interest-bearing debt	(JPY thousand)	239,190,000	269,100,000	271,154,000	323,197,000	318,454,000
      	Net assets (change from last period)	(b) (JPY thousand) (%)	254,024,091 (1.5)	290,305,021 (14.3)	292,766,734 (0.8)	351,388,558 (20.0)	351,363,602 (-0.0)
      	Unitholders’ capital	(JPY thousand)	235,701,512	270,101,249	270,101,249	326,079,727	326,079,727
      Dividend Status	Total distributions	(c) (JPY thousand)	8,925,773	11,048,878	12,915,060	15,155,269	14,490,028
      	Dividend payout ratio	(Note 1) (%)	100.1	100.1	100.1	100.1	100.9
      Information per Unit	Number of investment units issued and outstanding	(d) (Units)	6,096,840	6,737,121	6,737,121	7,646,453	7,646,453
      	Net assets per unit	(b) / (d) (JPY)	41,665	43,090	43,455	45,954	45,951
      	Distributions per unit (Distributions of earnings per unit) (Distributions in excess of retained earnings per unit)	(c) / (d) (JPY) (JPY) (JPY)	1,464 (1,464) (-)	1,640 (1,640) (-)	1,917 (1,917) (-)	1,982 (1,982) (-)	1,895 (1,895) (-)
      Financial Measures	Return on assets (annualized)	(Note 2) (%)	1.8 (3.6)	2.1 (4.1)	2.3 (4.6)	2.4 (4.8)	2.1 (4.3)
      	Return on equity (annualized)	(Note 2) (%)	3.5 (7.1)	4.1 (8.0)	4.4 (8.9)	4.7 (9.3)	4.1 (8.2)
      	Capital ratio (change from last period)	(b) / (a) (Note 2) (%) (%)	51.1 (0.5)	51.5 (0.4)	51.5 (-0.1)	51.7 (0.2)	52.0 (0.4)
      	NOI (Net Operating Income)	(Note 2) (JPY thousand)	14,523,824	17,205,671	19,634,102	23,451,825	22,916,757

      (Note 1) Dividend payout ratio is calculated in accordance with the following formula and rounded to one decimal place:

      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 40th to the 41st fiscal period, this change makes no difference. However, since dividends of preferred equity interest was recorded from the 42nd to the 44th fiscal period, dividends of preferred equity interest was included in NOI due to this change.

   2. Overview of Asset Management for the Fiscal Period Ended December 2024

      1. 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 June 30, 2025 (“Reporting Period”), 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) as there was no acquisition nor disposition of assets during the Reporting Period. 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) with continuous acquisition of assets through sponsor support.

         (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 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 June 30, 2025.

      2. Operational Performance

         The portfolio NOI (Note 1) increased by 16.7% or JPY 3,282 million compared to the same period in the previous year (the June 2024 fiscal period) to JPY 22,916 million. Of which, the hotel portfolio NOI increased by JPY 3,275 million and the residential and retail portfolio NOI increased by JPY 6 million.

         Commentary on hotel and residential performance is as described below.

         As for the domestic hotel portfolio, all key performance indicators showed growth for the Reporting Period, supported by solid domestic demand, robust and continued growth in inbound demand, along with the increase in demand in the Osaka area driven by the opening of the Expo 2025 Osaka in April. Among the 102 domestic hotels owned by INV at the beginning of the Reporting Period (including Sheraton Grande Tokyo Bay Hotel, the underlying asset of the preferred equity interest of TMK owned by INV), the GOP (Note 2) of the 91 domestic hotels (Note 3) operated by the major tenant for the Reporting Period increased by 11.8% compared to the same period in the previous year and recorded an occupancy rate (Note 4) of 83.8%, ADR (Note 5) of JPY 13,616, and RevPAR (Note 6) of JPY 11,406. Although inbound demand showed some signed of weakening toward the end of the period due to unfounded rumors suggesting a major disaster would occur in Japan on July 5, 2025, which had no scientific basis, the overall performance remained strong.

         The Cayman Hotels recorded an average occupancy rate of 61.7%, ADR of USD 675, and RevPAR of USD 417 for the Reporting Period. Although demand was robust throughout the Period, the large-scale renovation work at Sunshine Suites Resort took longer than expected, extending the partial sales stoppage. As a result, ADR exceeded the level of the same period last year, occupancy rate and RevPAR fell compared to the same period last year.

         Regarding the residential portfolio (Note 7), the occupancy rate (Note 8) of 41 residential properties increased to 97.6% at the end of the Reporting Period from 96.9% at the end of the previous period. The average occupancy rate (Note 8) increased by 0.5 points YoY to 97.2%. The NOI (Note 9) for the Reporting Period increased by 0.5% YoY.

         In the Reporting Period, INV realized a rent increase for 67.0% (based on the number of contracts) of the new residential lease contracts, and the new rent increased by 2.5% compared to the previous rent across all new leases (Note 10). INV achieved a rent increase for 46.4% (based on the number of contracts) of contract renewals with an average rent increase of 1.3% compared to the previous rent across all renewal leases, while maintaining a high contract renewal rate (Note 11) of 76.7%. Combined, new lease and renewal lease rents were signed at 1.8% higher than the previous leases. The average rent per tsubo per month (Note 12) for the Reporting Period increased by 0.7% YoY to JPY 9,302.

         The total appraisal value of 145 properties was JPY 775,647 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 180,916 million (Note 13) and an unrealized gain ratio of 30.4% (Note 13). The total appraisal value of the 145 properties which were owned throughout the Reporting Period increased by 1.1% from JPY 767,492 million at the end of the December 2024 fiscal period to JPY 775,647 million at the end of the Reporting Period.

         Key Performance Indicators of 91 Domestic Hotel Properties (Note 3)

         	June 2025 fiscal period	Year-on-year change
         Occupancy Rate (Note 3)	83.8％	+3.8pt
         ADR (JPY) (Note 4)	13,616	+10.0%
         RevPAR (JPY) (Note 5)	11,406	+15.2%
         Gross Revenue (JPY million)	47,019	+11.8%
         Room Revenue (JPY million)	32,599	+14.7%
         Non-Room Revenue (JPY million)	14,420	+5.8%
         GOP (JPY million) (Note 6)	16,941	+15.3%

         Key Performance Indicators of Cayman Hotels

         	June 2025 fiscal period	Year-on-year change
         Occupancy Rate (Note 3)	61.7%	-17.3pt
         ADR (USD) (Note 4)	675	+19.7%
         RevPAR (USD) (Note 5)	417	-6.5%
         Gross Revenue (USD thousand)	61,296	-10.6%
         Room Revenue (USD thousand)	35,772	-7.0%
         Non-Room Revenue (USD thousand)	25,523	-15.2%
         GOP (USD thousand) (Note 6)	27,516	-12.9%

         Key Performance Indicators of 41 Residential Properties (Note 7)

         	June 2025 fiscal period	Year-on-year change
         Average Occupancy Rate (Note 8)	97.2％	+0.5pt
         Average Rent per Tsubo per Month (JPY) (Note 12)	9,302	+0.7%
         NOI (JPY million) (Note 9)	1,145	+0.5%

         (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 102 domestic hotel properties (including Sheraton Grande Tokyo Bay Hotel, the underlying asset of preferred equity interest held by INV) held as of the beginning of the June 2025 fiscal period, this refers to 91 hotels operated by Iconia Hospitality K.K. (MyStays Hotel Management changed its company name to Iconia Hospitality K.K. on July 1, 2025. Hereinafter “ICN”) and its subsidiary. In addition, the figures for the properties acquired after January 2024 are calculated on the assumption INV had acquired those properties on January 1, 2024, using the actual figures provided by the sellers of such properties for the period before the acquisition. 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 June 2025. 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.

      3. Overview of Fund Raising

         As a result of the measures described below, INV’s interest-bearing debt outstanding balance was JPY 318,454 million and the Interest-Bearing Debt ratio (Note 1) and LTV (appraisal value basis) (Note 2) were 47.2% and 41.1%, respectively, as of the end of the Reporting Period, with an average interest rate (Note 3) of 1.17%.

         (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.

         1. Borrowing of Funds

            INV borrowed New Syndicate Loan (016) (total amount borrowed: JPY 15,230 million; interest rate: floating interest rate of 1-month JPY TIBOR plus 0.60000% for a duration of six years, floating interest rate of 1-month JPY TIBOR plus 0.60000% for a duration of six years, 1.65398% for a duration of six years, floating interest rate of 3-month JPY TIBOR plus 0.60000% for a duration of six years, floating interest rate of 1-month JPY TIBOR plus 0.50000% for a duration of five years), which was arranged by Mizuho Bank, Ltd. on January 16, 2025 in order to repay New Syndicate Loan (P) in the amount of JPY 4,491 million due on January 6, 2025, and a tranche of New Syndicate Loan (L) in the amount of JPY 4,943 million as well as a tranche of New Syndicate Loan (M) in the amount of JPY 5,796 million due on January 16, 2025.

            Moreover, INV borrowed New Syndicate Loan (017) on March 17, 2025 (total amount borrowed: JPY 10,014 million; interest rate: floating interest rate of 1-month JPY TIBOR plus 0.60000% for a duration of six years, floating interest rate of 1-month JPY TIBOR plus 0.50000% for a duration of five years), which was arranged by Mizuho Bank, Ltd. in order to repay New Syndicate Loan (Q) in the amount of JPY 10,132 million, and a tranche of New Syndicate Loan (012) in the amount of JPY 1,200 due on March 16, 2025.

            Furthermore, INV borrowed Term Loan (025) on April 15, 2025 (total amount borrowed: JPY 1,000 million; interest rate: floating interest rate of 1-month JPY TIBOR plus 0.60000% for a duration of 6 years) from San ju San Bank, Ltd. in order to repay a tranche of New Syndicate Loan (O) in the amount of JPY 1,000 million due on April 15, 2025.

         2. Prepayment of Loan

            INV's Short-term consumption tax loan of New Syndicate Loan (015) (in the amount of JPY 3,425 million) was prepaid on May 30, 2025 with the refund of consumption taxes and regional consumption taxes on properties acquired on July 31, 2024 and cash on hand.

      4. Overview of Results of Operations and Distributions

         As a result of the operations mentioned above, operating revenues for the Reporting Period decreased by JPY 447 million from the previous period (-1.8 %) to JPY 25,107 million, resulting in a net income of JPY 14,366 million, a decrease of JPY 771 million from the previous period (-5.1%). Unappropriated retained earnings including the retained earnings carried forward from the preceding fiscal period (JPY 8,610 million) is JPY 22,976 million. INV has decided to set the distribution per unit (excluding excess profit distribution) of JPY 1,895, which is the net income per unit (JPY 1,878) plus the reversal of retained earnings (JPY 17 per unit).

   3. Changes in Total Number of Investment Units Issued and Outstanding

      Changes in the number of investment units issued and outstanding and unitholders’ capital for the past 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	40th fiscal period	41st fiscal period	42nd fiscal period	43rd fiscal period	44th fiscal period
      Closing month	June 2023	December 2023	June 2024	December 2024	June 2025
      Highest	59,600	65,200	73,100	69,800	69,000
      Lowest	48,250	53,800	58,700	57,600	55,700

   4. Distribution Performance

      With respect to distribution of earnings for the Reporting Period, INV decided that distribution per unit (excluding excess profit distribution) is JPY 1,895 and does not make distributions in excess of profits.

      Period	40th fiscal period	41st fiscal period	42nd fiscal period	43rd fiscal period	44th fiscal period
      Calculated Period	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	Jan. 1, 2025 to Jun. 30, 2025
      Unappropriated retained earnings (JPY thousand)	17,583,734	19,690,532	21,542,214	23,765,358	22,976,459
      Reserved profit (JPY thousand)	8,657,960	8,641,653	8,627,153	8,610,089	8,486,431
      Total cash distribution (JPY thousand)	8,925,773	11,048,878	12,915,060	15,155,269	14,490,028
      (Distribution per unit) (JPY)	(1,464)	(1,640)	(1,917)	(1,982)	(1,895)
      Total profit distribution (JPY thousand)	8,925,773	11,048,878	12,915,060	15,155,269	14,490,028
      (Profit distribution per unit) (JPY)	(1,464)	(1,640)	(1,917)	(1,982)	(1,895)
      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)	-	-	-	-	-

   5. Future operational policy and issues to be addressed

      Outlook for the Fiscal Period Ending December 31, 2025

      The Japanese economy has been gradually recovering despite some effects from U.S. trade policies. The recovery is expected to be supported by improvements in the employment and income environment, as well as the effects of various government policies. However, uncertainties remain, including the direction of U.S. trade policy, concerns about heightened trade friction, and the increase in geopolitical risks which may lead companies to restrain capital investment, potentially creating downward pressure on the overall economy. In the hotel market, demand remains solid across all segments – domestic and inbound, leisure and business – and is expected to continue trending positively.

      In the rental housing market, the supply of new properties has been significantly restricted due to the steep rise of construction costs and labor shortages. At the same time, urban migration trends are driving demand recovery, and the supply-demand balance is expected to continue titling strongly in favor of demand. Additionally, increased demand for rentals is anticipated due to more people abandoning home purchases, further fueling the rental market. In the Tokyo metropolitan area, the market remains solid with continued lease signings despite rising rents. However, some regional areas are experiencing sluggish rental demand and rising vacancies, so close monitoring of the supply-demand conditions remains necessary.

      In Japan, there has been a significant rise in insurance premiums, and an increase in insurance premiums is also expected for INV’s domestic portfolio regardless of asset type.

      1. 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.

         1. 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.

         2. 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, ICN and subsidiaries of ICN (hereinafter collectively “ICN Group”) 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.

            ICN is one of Japan’s leading hotel operators, managing a wide range of properties across the country -including limited-service, full-service, and resort-type hotels—under numerous brands such as “Hotel MyStays”, “Flexstay Inn”, “Art Hotel”, and “Kamenoi Hotel”, among others. With a large membership base, ICN has established itself as a major player in the domestic hospitality sector. In May 2025, leveraging its scale and aiming to enhance member convenience, ICN launched a loyalty program called “GoTo Pass”, which allows members to earn and redeem points at all facilities operated by the group. This loyalty

            program is also expected to contribute to increased sales at hotels owned by INV and operated by ICN, thereby potentially boosting rental income for INV.

            In the post Covid-19 environment, the ICN Group has reviewed its operational strategy and made efforts to reduce hotel operating expenses and restore profitability. ICN will continue to strive to minimize the impact of rising costs such as labor costs, utility costs and food supplies 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). As a part of such initiatives, ICN is gradually introducing systems tailored to the operational status of each hotel, such as automated check-in kiosks, mobile check-in systems, and a system for streamlining luggage storage at the reception desk.

            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.

         3. 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.

            By implementing these measures, INV will seek to improve the credit rating (the long-term issuer rating “A+” (Outlook: Positive)) obtained from Japan Credit Rating Agency, Ltd. (JCR).

         4. 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 an asset acquisition from sponsor related parties, prior approvals by the Board of Directors of INV are required to ensure 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.

            CIM established on July 1, 2025, the Internal Audit Department in order to strengthen the internal audit system and further enhance governance. INV and CIM intend to continually take steps to strengthen its compliance structure.

         5. 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 E missions 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 five hotels, and Certification for CASBEE for Real Estate for three hotels and three 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. Moreover, INV obtained a DBJ Green Building Certification for six hotels, which was launched by the Development Bank of Japan Inc., for the purpose of supporting the properties which give proper care to the environment and society.

            In addition to the acquisition of environmental certifications for its properties, INV issued JPY 3,500 million in green bonds refinanced a total of JPY 40,947 million through green loans 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.

   6. Significant Subsequent Events

      1. Debt Financing

         In order to fund a portion of the acquisition price for 10 hotel properties (domestic real estate trust beneficiary interests) later described in “(b) Acquisition of Assets (Properties)”, INV resolved the following debt financing at a meeting of the Board of Directors held on August 25, 2025.

         1. New Syndicate Loan (019)

            Lenders	Anticipated Borrowing Date	Outstanding Balance (JPY million)	Interest Rate (annual rate)	Maturity Date	Borrowing Method
            MUFG Bank, Ltd.	August 27, 2025	2,000	1.65400%	July 16, 2029	Unsecured/ non guarantee
            Mizuho Bank, Ltd. Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Trust Bank, Limited Development Bank of Japan Inc. The Shizuoka Bank, Ltd. The Yamagata Bank, Ltd. San ju San Bank, Ltd. The Bank of Fukuoka, Ltd.	August 27, 2025	8,000	Floating interest rate (Note 1)	July 16, 2029	Unsecured/ non guarantee
            Mizuho Bank, Ltd.	August 27, 2025	2,000	Floating interest rate (Note 2)	March 14, 2030	Unsecured/ non guarantee
            MUFG Bank, Ltd.	August 27, 2025	2,000	1.74900%	March 14, 2030	Unsecured/ non guarantee
            Mizuho Bank, Ltd. Sumitomo Mitsui Trust Bank, Limited Sumitomo Mitsui Banking Corporation The Bank of Fukuoka, Ltd.	August 27, 2025	6,000	Floating interest rate (Note 3)	March 14, 2030	Unsecured/ non guarantee
            Mizuho Bank, Ltd. Suruga Bank Ltd. MUFG Bank, Ltd. Sumitomo Mitsui Banking Corporation The Yamaguchi Bank Ltd. Aichi Bank, Ltd. The Tochigi Bank Ltd. The Kagawa Bank Ltd. Development Bank of Japan Inc.	August 27, 2025	10,200	Floating interest rate (Note 4)	July 16, 2030	Unsecured/ non guarantee
            Total Debt		30,200

            (Note 1) 1-month JPY TIBOR (Base Rate) + spread (0.40000%). By the interest swap agreement, it is fixed, in effect, at 1.66400%

            (Note 2) 1-month JPY TIBOR (Base Rate) + spread (0.45000%).

            (Note 3) 1-month JPY TIBOR (Base Rate) + spread (0.45000%). By the interest swap agreement, it is fixed, in effect, at 1.75900%

            (Note 4) 1-month JPY TIBOR (Base Rate) + spread (0.50000%).

      2. Acquisition of Assets (Properties)

INV decided to acquire 10 hotels (domestic real estate trust beneficiary interests) as follows on August 25, 2025.

(Note 1) Anticipated Acquisition Prices show purchase prices of the Assets to be Acquired set forth in the purchase and sale agreements for the trust beneficiary interests of each property. They do 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, 2025.

(Reference Information)

1. Debt Financing

   INV decided to borrow New Syndicate Loan (018) on July 14, 2025 and borrowed on July 16, 2025 and July 22, 2025 in order to repay New Syndicate Loan (L) in the amount of JPY 4,942 million, New Syndicate Loan (M) in the amount of JPY 5,795 million as well as Term Loan (L) in the amount of JPY 700 million due on July 16, 2025, and Term Loan (005) in the amount of JPY 600 million due on July 20, 2025.

   1. New Syndicate Loan (018)

(Note 1) 1-month JPY TIBOR (Base Rate) + spread (0.40000%). (Note 2) 1-month JPY TIBOR (Base Rate) + spread (0.50000%). (Note 3) 1-month JPY TIBOR (Base Rate) + spread (0.60000%).

Overview of the Investment Corporation

1. Overview of Investment

   By Period	40th fiscal period	41st fiscal period	42nd fiscal period	43rd fiscal period	44th fiscal period
   Results Dates	As of Jun. 30, 2023	As of Dec. 31, 2023	As of Jun. 30, 2024	As of Dec. 31, 2024	As of Jun. 30, 2025
   Number of issuable investment units (Unit)	10,000,000	10,000,000	10,000,000	20,000,000	20,000,000
   Number of investment units issued and outstanding (Unit)	6,096,840	6,737,121	6,737,121	7,646,453	7,646,453
   Unitholders’ capital (JPY million)	235,701	270,101	270,101	326,079	326,079
   Number of total unitholders	25,829	26,611	31,658	34,999	41,884

2. 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)	1,430,934	18.71
   Custody BANK of Japan, Ltd. (trust account)	1,377,018	18.00
   The Nomura Trust and Banking Co., Ltd. (investment trust account)	407,336	5.32
   STATE STREET BANK AND TRUST COMPANY 505001	171,286	2.24
   Ueda Yagi Tanshi Co., Ltd.	127,475	1.66
   STATE STREET BANKWEST CLIENT - TREATY 505234	117,243	1.53
   FJODF GP INV HOLDINGS LLC	115,931	1.51
   GOLDMAN SACHS INTERNATIONAL	111,846	1.46
   JP MORGAN CHASE BANK 385864	110,040	1.43
   STATE STREET BANK AND TRUST COMPANY 505103	109,643	1.43
   Total	4,078,752	53.34

   (Note 1) Percentages are rounded down to two decimal places.

3. 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)	-	19,800

   (Note 1) The auditor's remuneration includes JPY 1,200 thousand for auditing English financial statements. In addition, non-audit remuneration to a person belonging to the same network as the accounting auditor is JPY 4,896 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.

4. 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.

5. 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.

(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.

1. Composition of INV’s Assets

   Type of asset	Purpose	Geographic area (Note 1)	Fiscal period ended December 31, 2024 (as of December 31, 2024)		Fiscal period ended June 30, 2025 (as of June 30, 2025)
   			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	-	-	-	-
   		Major regional cities	-	-	-	-
   		Overseas (Note 3)	32,248	4.7	33,279	4.9
   		Subtotal	32,248	4.7	33,279	4.9
   Total real estate			32,248	4.7	33,279	4.9
   Real estate in trust	Residences	Greater Tokyo area	28,007	4.1	28,024	4.2
   		Major regional cities	5,670	0.8	5,670	0.8
   		Subtotal	33,677	5.0	33,695	5.0
   	Offices /Commercial Facilities	Greater Tokyo area	-	-	-	-
   		Major regional cities	1,558	0.2	1,541	0.2
   		Subtotal	1,558	0.2	1,541	0.2
   	Hotels	Greater Tokyo area	183,595	27.0	183,152	27.1
   		Major regional cities	344,702	50.7	343,062	50.8
   		Subtotal	528,297	77.7	526,214	77.9
   Total real estate in trust			563,533	82.9	561,452	83.2
   Preferred equity interest (Note 4)			17,856	2.6	17,856	2.6
   Deposits and other assets			66,364	9.8	62,558	9.3
   Total assets (Note 5)			680,004 (595,783)	100.0 (87.6)	675,146 (594,731)	100.0 (88.1)

   (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. In addition, if the accompanying FF&E is held in kind for hotels held in the form of trust beneficiary interests, the book value of the FF&E is included in the amount of trust beneficiary interests in accordance with the ownership form of the hotel, regardless of the ownership form of the FF&E.

   (Note 3) 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 4) 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 5) The figures indicated in parenthesis under “Total assets” show the amounts related to owned real estate (excluding the amount of preferred equity securities owned).

2. Major Properties

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

   Name of property		Book value (JPY million)	Leasable area (m2) (Note 2)	Leased area (m2)	Occupancy rate (%) (Note 3)	Ratio of rental revenue (%) (Note 4)	Main use
   D84	Fusaki Beach Resort Hotel & Villas	39,278	23,573.57	23,573.57	100.0	3.8	Hotel
   D90	Art Hotel Osaka Bay Tower & Solaniwa Onsen	30,680	44,759.49	44,759.49	100.0	7.4	Hotel
   D200	Westin Grand Cayman Seven Mile Beach Resort & Spa	26,962	21,528.23	21,528.23	100.0	-	Hotel
   D43	Hotel MyStays Gotanda Station	26,029	10,137.88	10,137.88	100.0	3.3	Hotel
   D60	Hotel MyStays Premier Akasaka	19,859	8,620.69	8,620.69	100.0	4.2	Hotel
   D44	Hotel Epinard Nasu	17,934	37,702.33	37,702.33	100.0	2.6	Hotel
   D91	Hakodate Kokusai Hotel	16,753	34,511.60	34,511.60	100.0	2.0	Hotel
   D92	Art Hotel Nippori Lungwood	16,345	10,984.28	10,984.28	100.0	1.8	Hotel
   D61	Hotel MyStays Premier Sapporo Park	15,563	21,670.64	21,670.64	100.0	2.0	Hotel
   D64	Hotel MyStays Sapporo Aspen	15,031	15,313.17	15,313.17	100.0	2.2	Hotel
   Total		224,440	228,801.88	228,801.88	100.0	29.4

   (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.

3. Asset Portfolio of Real Estate, etc.

The portfolio of the properties (real estate and trust beneficiary interest in real estate) held by INV at the end of the Reporting Period is as below.