Financial Results (AssetManagementReport 2512 F)

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 December 31, 2025 (July 1, 2025 to December 31, 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

Strategic CAPEX Sustainability Initiatives

Recommended Hotels Eligible for the Unitholder Benefit Program 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 February 28, 2026) 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 45th fiscal period (from July 1, 2025 to December 31, 2025) (the "Reporting Period").

   Regarding the domestic hotels during the Reporting Period, hotels in the Kansai area performed particularly strong, driven by the growing popularity of the Osaka-Kansai Expo, particularly during the latter half of the event. In addition, inbound demand also continued to perform well. Although tensions were observed in Japan-China relations stemming from the statement in the Diet in November, the impact was limited as hotels owned by INV exhibit relatively low exposure to the Chinese tourists in terms of room revenue, and inbound demand from countries and regions other than China had been strong.

   As for the Cayman hotels, the large-scale renovation work at Sunshine Suites Resort was completed during the Reporting Period and reopened under the new name “The Sunshine Hotel & Suites “. Bookings have been exhibiting a robust upward trajectory toward the winter season with the new design and value-added features, and we expect further revenue contribution going forward.

   On the financing side, amid increased uncertainty regarding the future interest rate environment, we are moving beyond the conventional playbook of “the lengthening of loan maturities” and “increased fixed interest rate ratio” and are carefully assessing market trends and optimizing the composition of borrowing periods and the fixed interest and floating interest ratio.

   Regarding our initiatives for sustainability, we obtained a "3-Star" rating in the 2025 GRESB Real Estate Assessment for the third consecutive year and a "B" rating in the 2025 CDP Climate Change Program Assessment for the first time.

   As a result, INV announced a distribution per unit of JPY 2,186 by recording operating revenues of JPY 28,591 million, operating income of JPY 19,309 million, and net income of JPY 16,688 million in the Reporting Period.

   While a continued inflationary environment is anticipated, the hotel sector is an asset class where price increases for accommodation are relatively easy to pass on. Most hotels owned by INV employ a variable rent scheme linked to revenue, and we believe that INV is well positioned to benefit from inflation in terms of revenues. We will continue to pursue improvement of asset profitability and maximizing the overall value of the portfolio.

   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, 2023 to December 31, 2023	Period from January 1, 2024 to June 30, 2024	Period from July 1, 2024 to December 31, 2024	Period from January 1, 2025 to June 30, 2025	Period from July 1, 2025 to December 31, 2025
   Operating Revenues (JPY million)	18,819	21,136	25,555	25,107	28,591
   Ordinary Income (JPY million)	11,033	12,901	15,138	14,366	16,689
   Net Income (JPY million)	11,032	12,900	15,138	14,366	16,688
   Net Assets (JPY million)	290,305	292,766	351,388	351,363	354,587
   Total Assets (JPY million)	563,393	569,016	680,004	675,146	709,095
   Net Assets per Unit (JPY)	43,090	43,455	45,954	45,951	46,372
   Net Assets/Total Assets (%)	51.5	51.5	51.7	52.0	50.0
   Distribution per Unit (JPY)	1,640	1,917	1,982	1,895	2,186
   Number of Units Issued (Unit)	6,737,121	6,737,121	7,646,453	7,646,453	7,646,453

   Distribution per unit for the 45th fiscal period

   (the fiscal period ended December 2025)

   JPY 2,186

   (Note) The forward-looking statements, forecasts and goals described in this report are based on available information, assumptions and estimates as of February 28, 2026. 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.

   Strategic CAPEX

   INV has been implementing strategic CAPEX to improve the profitability of assets managed by Iconia Hospitality K.K. (ICN) (which changed its company name from MyStays Hotel Management to Iconia Hospitality K.K. on July 1, 2025). INV intends to leverage strategic CAPEX to further improve unitholders’ value.

   Background

Hotel MyStays Premier Hamamatsucho

• The property has a competitive advantage in capturing inbound demand

• While revenues had grown alongside an increasing inbound ratio, the pre-renovation inbound share had already reached a high level, limiting further revenue upside

• In addition, more than 9 years had passed since the last full-scale renovation of all guest rooms, resulting in guest ratings that lagged those of nearby competitors

  Main Work

• Change in room mix (approximately 30% increase in the total capacity)

• Renewal of guest-room interiors and FF&E (selected rooms)

• Repair of unit baths (selected rooms)

• Installation of smart TVs (all guest rooms)

  Renovation Period

May 2025 – September 2025

Expected ROI: 29.0%

• CAPEX: JPY 270 million

• GOP Increase: JPY 78 million per year (+10.1%1)

  After Renovation

Deluxe Twin Deluxe Twin（with extra bed）

Hotel MyStays Fukuoka-Tenjin-Minami

• The property is a limited service hotel with a prime location in central Fukuoka, capable of accommodating a wide range of leisure and business demand from both domestic and inbound guests

• As 17 years have passed since its completion, combined with new nearby hotel openings, the property appeared relatively outdated, leading to guest ratings below those of nearby competitors

  • Renewal of interiors and FF&E (all guest rooms)

  • Installation of smart TVs (all guest rooms)

  • Refurbishment of public areas

  • Conversion of remaining smoking rooms to non-smoking and installation of designated smoking booth

  •

  Main

  Work

  a

  Renovation Period

March 2025 – August 2025

Expected ROI: 18.7%

• CAPEX: JPY 415 million

• GOP Increase: JPY 77 million per year (+20.4%1)

Comfort Triple Comfort Twin

(Note 1) Year of completion of the oldest building

(Note 2) Difference between actual GOP for the period from October 2024 to September 2025 after renovation and the estimated GOP for the same period assuming no renovation (Note 3) Difference between estimated annual GOP at stabilized post-renovation operations and the estimated annual GOP for 2024 assuming no renovation

(Note 4) Difference between estimated annual GOP for 2025 assuming renovation effects fully materialize throughout the year and the estimated annual GOP for 2025 assuming no renovation (Note 5) Difference between estimated annual GOP at stabilized post-renovation operations and actual annual GOP for 2024

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.

In the 2025 GRESB Real Estate Assessment, INV obtained a “3-Star” GRESB Rating for the 3rd consecutive year. INV was also awarded a “Green Star” designation for the 5th consecutive year by achieving high performance in both the “Management Component” and the “Performance Component”. Further, INV was highly evaluated for its ESG information disclosure efforts and received an “Level A”, the highest level for GRESB Public Disclosure for the 5th consecutive year.

“3-Star”

GRESB Rating “Level A”

the highest level for GRESB Public Disclosure

INV participated in the CDP1 Climate Change Program for the first time in 2025 and obtained a "B" rating in the climate change category. Scores are awarded on an eight-point scale from A to D-, based on their performance across four key areas: Disclosure, Awareness, Management, and Leadership, reflecting the degree of ambition, goal-setting and concrete action.

(Note 1) CDP is a global non-profit that runs the world's only independent environmental disclosure system for companies, capital markets, cities, states and regions to manage their environmental impact.

The total balance of green finance as of December 2025 increased by JPY8,477 million from June 2025 to JPY45,447 million. The ratio to total interest-bearing debt increased by 1.4 points from 11.6% to 13.0%.

Green Finance Balance （JPY million）

The green lease conclusion rate as of December 2025 improved by 2.2 points to 75.2%, increasing to 107 out of 156 properties (based on GFA).

Green Lease Track Record

ICN, INV’s major tenant, is one of Japan’s leading hotel management companies, operating a wide variety of hotels in Japan including limited service hotels, full service hotels, resort hotels, hotels rooted in the local community and traditional Japanese inns offering hot spring facilities. Under the unitholder benefit program, unitholders may enjoy a preferential rate with 10% discount at any time at hotels operated by ICN. The benefit is also applicable to accommodation packages that include meals and packages bundled with tickets to nearby sightseeing facilities. We encourage unitholders to make full use of this program.

On this page, we highlight and introduce a selection of recommended hotel from among those eligible for the unitholder benefit program.

Irago Ocean Resort

Address: 1460-36 and 13 other lots, Honeyama, Hiicho, Tahara-shi, Aichi

Access

Approx. 70-minute by free shuttle bus from Toyohashi Station on the JR Tokaido Shinkansen and the JR Iida Line, approx. 5-minute by free shuttle bus from Irago Port of Isewan Ferry, Meitetsu Kaijo Kanko Ferry, and Kamishima Kanko Ferry

Top Three Recommended Points

1. All Guest Rooms Are Designed to Offer Ocean Views

   Each guest room offers an ocean view, where guests can enjoy either the sunrise or sunset. Experience the shimmering sea bathed in the morning sun or the dramatic beauty of a glowing, fiery sunset.

   Irago Ocean Resort Official Website

2. A Large Public Bath Offering Multiple Bathing Facilities in a Relaxing Seaside Setting

   An open-air bath with panoramic views of the ocean and sky. The movement of ships and drifting clouds creates a serene atmosphere that allows guests to forget the passage of time. Guests can enjoy a selection of scenic baths overlooking Cape Irago, including open-air baths featuring natural hot spring waters.

3. Carefully Selected Local Ingredients

The property offers a buffet restaurant themed around a Mediterranean resort, serving approximately 80 dishes prepared with Greek influences, fresh seafood, and locally grown vegetables. In addition, a course-style restaurant is available, featuring an open ocean-view atmosphere where chefs specializing in Japanese, Western, and Chinese cuisine demonstrate their culinary expertise.

Three Suggested Ways to Enjoy Your Stay

1. Enjoy “Kids Park” with your

   Children

2. Enjoy “Dog Run” with your Dog 3. Enjoy “Fruits Picking” with

your Family and Friends

The indoor facility includes a

30-square-meter ball pool and a bouldering area, allowing children to enjoy a variety of activities throughout the year, regardless of weather conditions

Set on a spacious 473-square-meter natural grass area, the facility provides an ideal environment where dogs of all sizes—from small to large—can run and play freely

Fruit farms are located in the vicinity of the hotel, offering fruits grown in the fertile natural environment of the Atsumi Peninsula. Strawberries are in season from Jan. through Apr., while melons are available from

Unitholder Benefit Program

INV has introduced the unitholder benefit program to improve the satisfaction of its unitholders and expand the unitholder base. Eligible unitholders can stay at Sheraton Grande Tokyo Bay Hotel and all 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 Program1

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, 2026, 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			41st fiscal period	42nd fiscal period	43rd fiscal period	44th fiscal period	45th fiscal period
      Reporting period			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	Jul. 1, 2025 to Dec. 31, 2025
      Operating Results	Operating revenue	(JPY thousand)	18,819,119	21,136,007	25,555,158	25,107,832	28,591,573
      	(Rental revenue – real estate)	(JPY thousand)	(16,696,076)	(14,933,032)	(23,205,026)	(19,841,850)	(26,062,113)
      	Operating expenses	(JPY thousand)	6,230,207	6,500,276	7,803,491	8,172,382	9,281,665
      	(Property-related expenses)	(JPY thousand)	(5,096,717)	(5,107,042)	(6,325,294)	(6,575,459)	(7,549,601)
      	Operating income (loss)	(JPY thousand)	12,588,912	14,635,731	17,751,667	16,935,449	19,309,907
      	Ordinary income (loss)	(JPY thousand)	11,033,176	12,901,166	15,138,810	14,366,975	16,689,602
      	Net income (loss)	(JPY thousand)	11,032,571	12,900,561	15,138,205	14,366,370	16,688,997
      Assets	Total assets (change from last period)	(a) (JPY thousand) (%)	563,393,061 (13.4)	569,016,514 (1.0)	680,004,964 (19.5)	675,146,027 (-0.7)	709,095,754 (5.0)
      	Interest-bearing debt	(JPY thousand)	269,100,000	271,154,000	323,197,000	318,454,000	348,654,000
      	Net assets (change from last period)	(b) (JPY thousand) (%)	290,305,021 (14.3)	292,766,734 (0.8)	351,388,558 (20.0)	351,363,602 (-0.0)	354,587,220 (0.9)
      	Unitholders’ capital	(JPY thousand)	270,101,249	270,101,249	326,079,727	326,079,727	326,079,727
      Dividend Status	Total distributions	(c) (JPY thousand)	11,048,878	12,915,060	15,155,269	14,490,028	16,715,146
      	Dividend payout ratio	(Note 1) (%)	100.1	100.1	100.1	100.9	100.2
      Information per Unit	Number of investment units issued and outstanding	(d) (Units)	6,737,121	6,737,121	7,646,453	7,646,453	7,646,453
      	Net assets per unit	(b) / (d) (JPY)	43,090	43,455	45,954	45,951	46,372
      	Distributions per unit (Distributions of earnings per unit) (Distributions in excess of retained earnings per unit)	(c) / (d) (JPY) (JPY) (JPY)	1,640 (1,640) (-)	1,917 (1,917) (-)	1,982 (1,982) (-)	1,895 (1,895) (-)	2,186 (2,186) (-)
      Financial Measures	Return on assets (annualized)	(Note 2) (%)	2.1 (4.1)	2.3 (4.6)	2.4 (4.8)	2.1 (4.3)	2.4 (4.8)
      	Return on equity (annualized)	(Note 2) (%)	4.1 (8.0)	4.4 (8.9)	4.7 (9.3)	4.1 (8.2)	4.7 (9.4)
      	Capital ratio (change from last period)	(b) / (a) (Note 2) (%) (%)	51.5 (0.4)	51.5 (-0.1)	51.7 (0.2)	52.0 (0.4)	50.0 (-2.0)
      	NOI (Net Operating Income)	(Note 2) (JPY thousand)	17,205,671	19,634,102	23,451,825	22,916,757	25,800,522

      (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 41st fiscal period, this change makes no difference. However, since dividends of preferred equity interest was recorded from the 42nd to the 45th 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 2025

      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 December 31, 2025 (“Reporting Period”), INV acquired 10 domestic hotels with borrowings and cash on hand on August 27, 2025. As a result, INV's portfolio at the end of the Reporting Period is comprised of 156 properties (114 hotels (Note 2) (Note 3), 41 residential properties and one retail facility) with a total acquisition price of JPY 687,350 million (Note 4). INV’s hotel portfolio has the largest asset size (Note 5) of JPY 646,565 million (114 properties, 19,817 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 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 The Sunshine Hotel & Suites (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. Sunshine Suites Resort changed its name to “The Sunshine Hotel & Suites” on December 10, 2025. 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) “The largest asset size … among all J-REIT hotel portfolios” refers to the total acquisition price of 114 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, 2025.

         (Note 6) Hotel J-REIT is defined as the J-REIT whose majority part of portfolio consists of hotel assets.

      2. Operational Performance

         The portfolio NOI (Note 1) increased by 10.0% or JPY 2,348 million compared to the same period in the previous year (the December 2024 fiscal period) to JPY 25,800 million. Of which, the hotel portfolio NOI increased by JPY 2,329 million and the residential and retail portfolio NOI increased by JPY 19 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 toward the latter half of the Expo 2025 Osaka. Although inbound demand experienced a decline for some markets due to unfounded rumors suggesting a major disaster would occur in Japan on July 5, 2025, which had no scientific basis, and the deterioration of Japan-China relations stemming from the statement in the Diet in November, the overall performance remained strong. 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 gross revenue of the 91 domestic hotels (Note 2) operated by the major tenant for the Reporting Period increased by 7.8% compared to the same period in the previous year and recorded an occupancy rate (Note 3) of 85.9%, ADR (Note 4) of JPY 15,612, and RevPAR (Note 5) of JPY 13,406.

         The Cayman Hotels recorded an average occupancy rate of 46.3%, ADR of USD 530, and RevPAR of USD 245

         for the Reporting Period. Although demand for The Westin Grand Cayman Seven Mile Beach Resort & Spa remained steady throughout the Period, the large-scale renovation work at The Sunshine Hotel & Suites took longer than expected. As a result, occupancy rate and RevPAR fell compared to the same period last year. During the Reporting Period, although travel demand declined due to the passage of a Category 5 hurricane “Melissa” through the Caribbean in late October 2025, and personal financial uncertainty due to the U.S. federal government shutdown, it recovered strongly during the Christmas holiday season in December 2025, resulting in an increase in ADR and robust gross revenues compared to the same period last year.

         Regarding the residential portfolio (Note 7), the occupancy rate (Note 8) of 41 residential properties decreased by 1.1 points to 96.5% at the end of the Reporting Period from 97.6% at the end of the previous period. The average occupancy rate (Note 8) increased by 0.2 points YoY to 97.0%, driven by strong rental demand. The NOI (Note 9) for the Reporting Period increased by 1.7% YoY.

         In the Reporting Period, INV realized a rent increase for 76.9% (based on the number of contracts) of the new residential lease contracts, and the new rent increased by 3.8% compared to the previous rent across all new leases (Note 10). INV achieved a rent increase for 56.8% (based on the number of contracts) of contract renewals with an average rent increase of 1.8% compared to the previous rent across all renewal leases, while maintaining a high contract renewal rate (Note 11) of 79.5%. Combined, new lease and renewal lease rents were signed at 2.5% higher than the previous leases. The average rent per tsubo per month (Note 12) for the Reporting Period increased by 1.0% YoY to JPY 9,386.

         The total appraisal value of 155 properties was JPY 831,061 million (one out of the 156 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 201,382 million (Note 13) and an unrealized gain ratio of 32.0% (Note 13). The total appraisal value of the 145 properties which were owned throughout the Reporting Period increased by 2.7% from JPY 775,647 million at the end of the June 2025 fiscal period to JPY 796,350 million at the end of the Reporting Period.

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

         	December 2025 fiscal period	Year-on-year change
         Occupancy Rate (Note 3)	85.9％	+1.0pt
         ADR (JPY) (Note 4)	15,612	+7.0%
         RevPAR (JPY) (Note 5)	13,406	+8.2%
         Gross Revenue (JPY million)	55,147	+7.8%
         Room Revenue (JPY million)	38,949	+8.3%
         Non-Room Revenue (JPY million)	16,198	+6.5%
         GOP (JPY million) (Note 6)	21,707	+8.9%

         Key Performance Indicators of Cayman Hotels

         	December 2025 fiscal period	Year-on-year change
         Occupancy Rate (Note 3)	46.3%	-6.4pt
         ADR (USD) (Note 4)	530	+21.0%
         RevPAR (USD) (Note 5)	245	+6.3%
         Gross Revenue (USD thousand)	39,109	+7.5%
         Room Revenue (USD thousand)	21,388	+6.3%
         Non-Room Revenue (USD thousand)	17,720	+8.9%
         GOP (USD thousand) (Note 6)	11,560	+8.3%

         Key Performance Indicators of 41 Residential Properties (Note 7)

         	December 2025 fiscal period	Year-on-year change
         Average Occupancy Rate (Note 8)	97.0％	+0.2pt
         Average Rent per Tsubo per Month (JPY) (Note 12)	9,386	+1.0%
         NOI (JPY million) (Note 9)	1,160	+1.7%

         (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 December 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 December 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 348,654 million and the Interest-Bearing Debt ratio (Note 1) and LTV (appraisal value basis) (Note 2) were 49.2% and 42.4%, respectively, as of the end of the Reporting Period, with an average interest rate (Note 3) of 1.30%.

         (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.

         (i) Borrowing of Funds

         INV borrowed New Syndicate Loan (018) (total amount borrowed: JPY 12,037 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, floating interest rate of 1-month JPY TIBOR plus 0.50000% for a duration of five years, floating interest rate of 1-month JPY TIBOR plus 0.40000% for a duration of four years), which was arranged by Mizuho Bank, Ltd. 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 and Term Loan (L) in the amount of JPY 700 million due on July 16, 2025, as well as Term Loan

         (005) in the amount of JPY 600 million due on July 20, 2025.

         Moreover, INV borrowed New Syndicate Loan (019) on August 27, 2025 (total amount borrowed: JPY 30,200 million; interest rate: floating interest rate of 1-month JPY TIBOR plus 0.50000% for a duration of five years, floating interest rate of 1-month JPY TIBOR plus 0.45000% (by the interest swap agreement on August 25, 2025, it is fixed, in effect, at 1.75900%) for a duration of 4.5 years, floating interest rate of 1-month JPY TIBOR plus 0.45000% for a duration of 4.5 years, 1.74900% for a duration of 4.5 years, floating interest rate of 1-month JPY TIBOR plus 0.40000% (by the interest swap agreement on August 25, 2025, it is fixed, in effect, at 1.66400%) for a duration of four years, 1.65400% for a duration of four years), 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 10 domestic hotels described in “(d) Overview of Acquisition of Assets”

         Furthermore, INV borrowed Term Loan (026) (amount borrowed: JPY 500 million; interest rate: floating interest rate of 1-month JPY TIBOR plus 0.45000% for a duration of 4.5 years) from MUFG Bank, Ltd. and Term Loan (027) (amount borrowed: JPY 500 million; interest rate: floating interest rate of 1-month JPY TIBOR plus 0.45000% for a duration of 4.5 years) from Sumitomo Mitsui Banking Corporation on October 15, 2025 in order to repay New Syndicate Loan (O) in the amount of JPY 1,000 million due on October 15, 2025.

      4. Overview of Results of Operations and Distributions

         CIM decided on the acquisition of trust beneficiary interests in 10 domestic hotels as follows on August

         25, 2025, and the acquisition of the assets was closed on August 27, 2025.

         Property Number	Property Name	Acquisition Price (JPY million) (Note 1)	Appraisal Value (JPY million) (Note 2)	Seller
         D102	Irago Ocean Resort	6,900	6,970	Nippori Tokutei Mokuteki Kaisha
         D103	Kirishima Kokusai Hotel	6,534	6,600	Heijo Tokutei Mokuteki Kaisha
         D104	Kamenoi Hotel Toba	4,732	4,780	Yakushima Tokutei Mokuteki Kaisha
         D105	Kamenoi Hotel Kusatsu Yubatake	4,682	4,730	Baika Tokutei Mokuteki Kaisha
         D106	Atagawa Ocean Resort	4,187	4,230	BaikaTokutei Mokuteki Kaisha
         D107	Hotel MyStays Atsugi	3,177	3,210	Nippori Tokutei Mokuteki Kaisha
         D108	Kamenoi Hotel Tsukubasan	2,999	3,030	Albula Tokutei Mokuteki Kaisha
         D109	Kamenoi Hotel Kochi	446	451	Yakushima Tokutei Mokuteki Kaisha
         D110	Kamenoi Hotel Chitamihama	372	376	Yakushima Tokutei Mokuteki Kaisha
         D111	Kamenoi Hotel Yanagawa	255	258	Yakushima Tokutei Mokuteki Kaisha
         Total		34,284	34,635

         (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, 2025.

         (d) Overview of Results of Operations and Distributions

         As a result of the operations mentioned above, operating revenues for the Reporting Period increased by JPY 3,483 million from the previous period (+13.9 %) to JPY 28,591 million, resulting in a net income of JPY 16,688 million, an increase of JPY 2,322 million from the previous period (+16.2%). Unappropriated retained earnings including the retained earnings carried forward from the preceding fiscal period (JPY 8,486 million) is JPY 25,175 million. INV has decided to set the distribution per unit (excluding excess profit distribution) of JPY 2,186, which is the net income per unit (JPY 2,182) plus the reversal of retained earnings (JPY 4 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	41st fiscal period	42nd fiscal period	43rd fiscal period	44th fiscal period	45th fiscal period
      Closing month	December 2023	June 2024	December 2024	June 2025	December 2025
      Highest	65,200	73,100	69,800	69,000	70,400
      Lowest	53,800	58,700	57,600	55,700	60,500

   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 2,186 and does not make distributions in excess of profits.

      Period	41st fiscal period	42nd fiscal period	43rd fiscal period	44th fiscal period	45th fiscal period
      Calculated Period	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	Jul. 1, 2025 to Dec. 30, 2025
      Unappropriated retained earnings (JPY thousand)	19,690,532	21,542,214	23,765,358	22,976,459	25,175,428
      Reserved profit (JPY thousand)	8,641,653	8,627,153	8,610,089	8,486,431	8,460,281
      Total cash distribution (JPY thousand)	11,048,878	12,915,060	15,155,269	14,490,028	16,715,146
      (Distribution per unit) (JPY)	(1,640)	(1,917)	(1,982)	(1,895)	(2,186)
      Total profit distribution (JPY thousand)	11,048,878	12,915,060	15,155,269	14,490,028	16,715,146
      (Profit distribution per unit) (JPY)	(1,640)	(1,917)	(1,982)	(1,895)	(2,186)
      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 June 30, 2026

      The Japanese economy has been gradually recovering despite some effects from U.S. trade policies. The recovery is expected to be supported by steady growth in personal consumption and capital investment driven by improvements in the employment and income environment, as well as the effects of various government policies. On the other hand, there are various uncertainties such as the direction of U.S. trade and diplomatic policies, deterioration of Japan-China relations, concerns about heightened geopolitical risks including escalated tensions in the Middle East and Ukraine. If negative factors such as the slowdown in overseas economies becoming apparent and the deterioration of the export environment worsen, companies may restrain capital investment, potentially creating downward pressure on the overall economy.

      In the hotel market, although there are concerns about declining demand from China due to deteriorating Japan-China relations, demand from other countries and regions remains strong. Consequently, coupled with solid domestic demand, demand for both leisure and business remain solid across all segments and is expected to continue performing steadily.

      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 driven by soaring housing prices, 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
              2025	10 hotels	JPY 34,284 million
              Total	142 properties (of which 111 are hotels and 31 are residential properties)	JPY 686,562 million (of which hotels: JPY 634,924 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 112 domestic hotels (Note 1) owned by INV as of the end of the Reporting Period, 104 hotels use a variable rent scheme. In the variable rent scheme, in principle, INV receives all of the GOP after deducting payment of management fees for the hotel operator as rents. For 101 hotels of the 104 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.

              The ICN Group has reviewed its operational strategy and made efforts to reduce hotel operating expenses and improve 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 diversify the loan maturity dates and diversify financing measures while paying attention to fund procurement costs, as well as maintaining an appropriate average interest-bearing debt repayment periods and 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 Emissions Reduction Policy”, the “Water Saving Policy” and the “Waste Management Policy” which stipulate efforts to reduce environmental impact as initiatives for the 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 and refinanced a total of JPY 41,947 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 third consecutive year in the 2025 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 fifth consecutive year. Furthermore, INV participated in CDP (Note 1) Climate Change Program Assessment for the first time in 2025 and obtained a “B” rating for climate change.

           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.

           (Note 1) CDP is a global non-profit that runs the world's only independent environmental disclosure system for companies, capital markets, cities, states and regions to manage their environmental impact. Scores range from A to D- with eight levels, based on their performance across four key areas: Disclosure, Awareness, Management, and Leadership, reflecting the degree of ambition, goal-setting and concrete action.

   6. Significant Subsequent Events

      Not applicable. Reference information is stated below. (Reference Information)

      1. Partial Redemption of Preferred Equity Interest

The Kingdom TMK (“TMK”) decided on February 13, 2026, to make a partial redemption (“the “Redemption”) of the preferred equity interest in connection with the preferred equity investment securities backed by the Sheraton Grande Tokyo Bay Hotel, the underlying real estate. The Redemption is scheduled to be made on March 27, 2026, with JPY 6.5 billion as the source of funds, allocated from the additional borrowing of JPY 10.0 billion borrowed at the time of refinancing of its existing loan due on September 2025. As a result of the Redemption, INV will receive JPY 3.185 billion (Equivalent to 49.0% of the total JPY 6.5 billion redeemed by the TMK) and its preferred equity investment in the TMK will be reduced from the initial amount of JPY 17.845 billion to JPY 14.660 billion.

Overview of the Investment Corporation

1. Overview of Investment

   By Period	41st fiscal period	42nd fiscal period	43rd fiscal period	44th fiscal period	45th fiscal period
   Results Dates	As of Dec. 31, 2023	As of Jun. 30, 2024	As of Dec. 31, 2024	As of Jun. 30, 2025	As of Dec. 31, 2025
   Number of issuable investment units (Unit)	10,000,000	10,000,000	20,000,000	20,000,000	20,000,000
   Number of investment units issued and outstanding (Unit)	6,737,121	6,737,121	7,646,453	7,646,453	7,646,453
   Unitholders’ capital (JPY million)	270,101	270,101	326,079	326,079	326,079
   Number of total unitholders	26,611	31,658	34,999	41,884	47,635

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)	1,315,224	17.20
   Custody BANK of Japan, Ltd. (trust account)	1,278,210	16.71
   The Nomura Trust and Banking Co., Ltd. (investment trust account)	410,417	5.36
   STATE STREET BANK AND TRUST COMPANY 505001	195,688	2.55
   STATE STREET BANK AND TRUST COMPANY 505325	172,283	2.25
   JPMorgan Securities Japan Co., Ltd.	127,280	1.66
   FJODF GP INV HOLDINGS LLC	115,931	1.51
   GOLDMAN SACHS INTERNATIONAL	110,241	1.44
   JP MORGAN CHASE BANK 385781	107,944	1.41
   STATE STREET BANK AND TRUST COMPANY 505103	106,107	1.38
   Total	3,939,325	51.51

   (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 June 30, 2025 (as of June 30, 2025)		Fiscal period ended December 31, 2025 (as of December 31, 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)	33,279	4.9	34,863	4.9
   		Subtotal	33,279	4.9	34,863	4.9
   Total real estate			33,279	4.9	34,863	4.9
   Real estate in trust	Residences	Greater Tokyo area	28,024	4.2	27,858	3.9
   		Major regional cities	5,670	0.8	5,602	0.8
   		Subtotal	33,695	5.0	33,461	4.7
   	Offices /Commercial Facilities	Greater Tokyo area	-	-	-	-
   		Major regional cities	1,541	0.2	1,528	0.2
   		Subtotal	1,541	0.2	1,528	0.2
   	Hotels	Greater Tokyo area	183,152	27.1	186,325	26.3
   		Major regional cities	343,062	50.8	373,500	52.7
   		Subtotal	526,214	77.9	559,826	78.9
   Total real estate in trust			561,452	83.2	594,815	83.9
   Preferred equity interest (Note 4)			17,856	2.6	17,856	2.5
   Deposits and other assets			62,558	9.3	61,560	8.7
   Total assets (Note 5)			675,146 (594,731)	100.0 (88.1)	709,095 (629,679)	100.0 (88.8)

   (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 “The Sunshine Hotel & Suites” 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	39,275	23,595.09	23,595.09	100.0	6.5	Hotel
   D90	Art Hotel Osaka Bay Tower & Solaniwa Onsen	30,664	44,759.49	44,759.49	100.0	6.9	Hotel
   D200	Westin Grand Cayman Seven Mile Beach Resort & Spa	26,954	21,528.23	21,528.23	100.0	-	Hotel
   D43	Hotel MyStays Gotanda Station	26,001	10,137.88	10,137.88	100.0	2.5	Hotel
   D60	Hotel MyStays Premier Akasaka	19,798	8,620.69	8,620.69	100.0	3.1	Hotel
   D44	Hotel Epinard Nasu	17,714	37,702.33	37,702.33	100.0	4.7	Hotel
   D91	Hakodate Kokusai Hotel	16,658	34,511.60	34,511.60	100.0	2.7	Hotel
   D92	Art Hotel Nippori Lungwood	16,287	10,984.28	10,984.28	100.0	1.2	Hotel
   D61	Hotel MyStays Premier Sapporo Park	15,549	21,670.64	21,670.64	100.0	2.0	Hotel
   D64	Hotel MyStays Sapporo Aspen	14,997	15,313.17	15,313.17	100.0	2.3	Hotel
   Total		223,902	228,823.40	228,823.40	100.0	32.0

   (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.

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.

(Note 1) “Location” is, in principle, based on the indicated address (jyukyohyoji), except that if the jyukyohyoji system has not been implemented for such property, the location is based on the land number (chiban).

(Note 2) Leasable areas of Westin Grand Cayman Seven Mile Beach Resort & Spa and The Sunshine Hotel & Suites indicate the areas subject to management contract.

(Note 3) “Appraisal value as of the end of the Reporting Period” is the value appraised or researched by Asset Research and Development Inc., Japan Real Estate Institute, JLL Morii Valuation & Advisory K.K., The Tanizawa Sogo Appraisal Co., Ltd., Daiwa Real Estate Appraisal Co., Ltd. or CBRE, Inc., in accordance with the Articles of Incorporation of INV and the regulations of The Investment Trusts Association, Japan.

(Note 4) Individual trust beneficiary interests were integrated into three groups with other trust beneficiary interests when INV procured funds through debt financing backed by trust assets in July 2011. As a result of disposition of assets and detachment of trust beneficiary interest from an integrated trust account thereafter, the grouping of trust beneficiary interests at the end of the Reporting Period is as follows:

Group 1

Nisshin Palacestage Daitabashi, Growth Maison Shin-Yokohama, Belle Face Ueno-Okachimachi, Growth Maison Yoga, Shibuya-Honmachi Mansion, and Foros Nakamurabashi.

Group 2

College Square Machida, Belair Meguro, and Wacore Tsunashima I. Group 3

Suncrest Shakujii-Koen, Grand Rire Kameido, Acseeds Tower Kawaguchi-Namiki, Growth Maison Kaijin, and College Square Machiya.

(Note 5) The property name was changed from "Flexstay Inn Higashi-Jujo" to "Hotel MyStays Higashi-Jujo" on November 10, 2025 along with the change of the hotel name. Herein after the same.

(Note 6) “Appraisal value as of the end of the Reporting Period” indicates appraisal value calculated deeming the owned portion and the floor expansion portion as one.

(Note 7) “Appraisal value as of the end of the Reporting Period” indicates appraisal value calculated deeming the owned portion and the adjacent land portion as one.

(Note 8) “Appraisal value as of the end of the Reporting Period” is converted into JPY using the exchange rate of USD 1 = JPY 156.56, which is the exchange rate on the closing date of the fiscal period (December 31, 2025).

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