Financial Results (Financial Summary 202406 combined final)

Financial Summary for the June 2024 Fiscal Period

(from January 1, 2024 to June 30, 2024)

(Figures are rounded down to the nearest JPY million)

1. Financial Results for the Fiscal Period ended June 30, 2024 (from January 1, 2024 to June 30, 2024)

1. Operating Results

(Percentages indicate percentage change from the preceding period)

(Note 1) Dividend Payout Ratio is calculated in accordance with the following formula and is rounded to the nearest one decimal place: Dividend Payout Ratio = Distribution Amount (Excluding excess profit distribution) ÷ Net Income × 100

(Note 2) Distribution / Net Assets is calculated based on the figures excluding excess profit distribution.

1. Financial Position

(Note) Net Assets per Unit is calculated based on the number of investment units issued and outstanding at the end of each fiscal period.

(4) Cash Flows

2

Financial Summary for the June 2024 Fiscal Period

(from January 1, 2024 to June 30, 2024)

2. Forecasts for the Fiscal Period ending December 31, 2024 (from July 1, 2024 to December 31, 2024) and the Fiscal Period ending June 30, 2025 (from January 1, 2025 to June 30, 2025)

(Note) Please refer to "Notes Related to Per Unit Information" regarding the number of investment units which is the basis for the

calculation of net income per unit.

• Financial Summary report is not subject to audit procedure by certified public accountants or audit corporations.
• Special Consideration
  The forward-looking statements contained in this financial summary report are based on the information currently available to us and certain assumptions which we believe are reasonable. Actual operating performance may differ significantly due to factors we cannot predict as of the date of this document, including gains or losses from the disposition of properties, repayment of borrowings, decreases in rents and changes in operating conditions. Unless otherwise specified herein, amounts less than JPY 1 are rounded down, and ratios are rounded to the nearest one decimal place.

3

Financial Summary for the June 2024 Fiscal Period

(from January 1, 2024 to June 30, 2024)

1. Operating Conditions

(1) Operating Conditions

a Overview of the Fiscal Period Ended June 30, 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.

INV's portfolio at the end of the Reporting Period comprised of 134 properties (92 hotels (Note 2) (Note 3), 41 residential properties and one retail facility) with a total acquisition price of JPY 548,646 million (Note 4). Furthermore, INV's hotel portfolio has the largest asset size (Note 5) of JPY 507,861 million (92 properties, 16,624 rooms) among all J-REITs (real estate investment corporations which are listed on the Tokyo Stock Exchange Real Estate Investment Trust Securities Market, hereinafter the same shall apply) hotel portfolios including Hotel J- REITs (Note 6) .

(Note 1) Calliope transferred 80.0% of issued shares to Fortress CIM Holdings L.P., a subsidiary of SoftBank Group and 20.0% to SoftBank Group Corp. ("SoftBank Group") on March 29, 2018, but the SoftBank Group transferred its issued shares of CIM to Fortress CIM Holdings L.P on May 23, 2023. Further, on May 15, 2024, the SoftBank Group transferred its interest in the indirect parent company of Fortress CIM Holdings L.P. to Mubadala Capital, a wholly-owned subsidiary of Mubadala Investment Company, an Abu Dhabi sovereign wealth fund. As a result, the SoftBank Group no longer falls under the parent company and specified related corporation of CIM.

(Note 2) The preferred equity interest held by INV is counted as one property. Such preferred equity interest issued by a special purpose company (tokutei mokuteki kaisha) 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 TK operator of 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

4

Financial Summary for the June 2024 Fiscal Period

(from January 1, 2024 to June 30, 2024)

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 92 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, 2024.

1. Operational Performance

The portfolio NOI (Note 1) increased by 35.2% or JPY 5,110 million compared to the same period in the previous year (the June 2023 fiscal period) to JPY 19,634 million. Of which, the hotel portfolio NOI increased by JPY 5,096 million and the residential and retail portfolio NOI increased by JPY 14 million. Compared to the June 2019 fiscal period prior to the COVID-19pandemic, the portfolio NOI increased by 33.2% or JPY 4,899 million, of which the hotel portfolio NOI increased by JPY 6,352 million and the residential and retail portfolio NOI decreased by JPY 1,453 million due to asset sales.

Commentary on hotel and residential performance is as described below.

Domestic hotel portfolio recovered to a level exceeding that of 2019, prior to the COVID-19 pandemic. Even with the end of the "National Travel Discount Campaign" program, the government's travel subsidy program, there has been no significant decline in demand due to the reaction from the elimination of the program. Coupled with the recovery of inbound demand with the help of the weak yen, each performance metric of the domestic hotel portfolio significantly exceeded the results of the same period last year. While occupancy rates (Note 2) were slightly below the 2019 levels, ADR (Note 3) and RevPAR (Note4) were above the 2019 levels. The GOP (Note 5) for the Reporting Period of the 81 domestic hotels (Note 6) owned by INV increased by 17.2% compared to the same period in the previous year (figures exclude nine domestic hotels with fixed-rent lease agreements among the 90 domestic hotels owned by INV as of the end of the Reporting Period, including Sheraton Grande Tokyo Bay Hotel, the underlying asset of the preferred equity interest of TMK owned by INV). The 81 domestic hotels recorded an occupancy rate of 80.7%, ADR of JPY 12,787, and RevPAR of JPY 10,314. Compared to the June 2019 fiscal period prior to the COVID-19 pandemic, the GOP increased by 15.6%, the occupancy rate decreased by 5.7pt, ADR increased by 24.7%, and RevPAR increased by 16.5%.

The Cayman Hotels recorded an average occupancy rate of 79.0%, ADR of USD 564, and RevPAR of USD 446 for the Reporting Period and the figures significantly exceeded the same period in the previous year. Compared to the June 2019 fiscal period prior to the COVID-19 pandemic, the occupancy rate decreased by 10.3pt, ADR increased by 35.8%, and RevPAR increased by 20.1%. Occupancy has not returned to 2019 levels as the number of commercial flights between the Cayman Islands and the U.S. have not recovered to 2019 levels, but ADR has grown significantly due to high demand, and RevPAR has remained above 2019 levels.

Regarding the residential portfolio (Note 7), the occupancy rate (Note 8) of 41 residential properties slightly increased from 95.9% at the end of the previous fiscal period to 96.9% at the end of the Reporting Period. The average occupancy rate (Note 8) increased by 0.2 points YoY to 96.7%. The NOI (Note 9) for the Reporting Period increased by 1.2% YoY.

In the Reporting Period, INV realized a rent increase for 41.8% (based on the number of contracts) of the new

5

Financial Summary for the June 2024 Fiscal Period

(from January 1, 2024 to June 30, 2024)

residential lease contracts, and the new rent increased by 0.1% compared to the previous rent across all new leases (Note 10). INV achieved a rent increase for 38.7% (based on the number of contracts) of contract renewals with an average rent increase of 1.1% compared to the previous rent across all renewal leases, while maintaining a high contract renewal rate (Note 11) of 76.8%. Combined, new lease and renewal lease rents were signed at 0.7% higher than the previous leases. The average rent per tsubo per month (Note 12) for the Reporting Period increased by 0.5% YoY to JPY 9,235.

The total appraisal value of 133 properties was JPY 657,902 million (one out of the 134 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 164,661 million (Note 13) and an unrealized gain ratio of 33.4% (Note 13). The total appraisal value of 133 properties which were owned throughout the Reporting Period increased by 4.6% from JPY 629,041 million at the end of the December 2023 fiscal period to JPY 657,902 million at the end of the Reporting Period.

Key Performance Indicators of 81 Domestic Hotel Properties (Note 6)

Key Performance Indicators of 41 Residential Properties (Note 7)

6

Financial Summary for the June 2024 Fiscal Period

(from January 1, 2024 to June 30, 2024)

1. Overview of Fund Raising

As a result of the measures described below, INV's interest-bearing debt outstanding balance was JPY 271,154 million and the Interest-Bearing Debt ratio (Note 1) and LTV (appraisal value basis) (Note 2) were 47.7% and 41.9% respectively, as of the end of the Reporting Period, with an average interest rate (Note 3) of 0.85%.

(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 loan) / total assets x 100

Short-term consumption tax loan is a loan which is to be repaid before maturity date with refund of consumption taxes and regional consumption taxes on an acquisition of a property.

(Note 2) LTV (appraisal value basis) uses the calculation formula below:

LTV = total outstanding interest-bearing debt (excluding short-term consumption tax loan) / total appraisal value (*) x 100

1. 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). For appraisal value of the Cayman Hotels, USD is converted into JPY amount via the forward

7

Financial Summary for the June 2024 Fiscal Period

(from January 1, 2024 to June 30, 2024)

exchange rate of USD 1=JPY 110.45 based on the foreign exchange forward contract entered into on July 26, 2018 and executed on September 26, 2018.

(Note 3) The average interest rate (annual rate) is calculated by 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 (012) (total amount borrowed: JPY 31,303 million; interest rate: floating interest rate of 3-month JPY TIBOR plus 0.60000% for a duration of six years, floating interest rate of 3-month JPY TIBOR plus 0.50000% for a duration of five years, floating interest rate of 3-month JPY TIBOR plus 0.50000% for a duration of five years, floating interest rate of 3-month JPY TIBOR plus 0.40000% (by the interest swap agreement on June 4, 2024, it is fixed, in effect, at 1.26500%) for a duration of four years, floating interest rate of 3-month JPY TIBOR plus 0.40000% (by the interest swap agreement on June 4, 2024, it is fixed, in effect, at 1.26500%) for a duration of four years, floating interest rate of 3-month JPY TIBOR plus 0.30000% for a duration of three years, floating interest rate of 1-month JPY TIBOR plus 0.20000% for a duration of one year), which was arranged by Mizuho Bank, Ltd. and Term Loan (019) (total amount borrowed: JPY 2,440 million; interest rate: floating interest rate of 3-month JPY TIBOR plus 0.50000% for a duration of five years) which was arranged by The Tokyo Star Bank, Limited, on January 16, 2024 and on January 24, 2024 in order to repay a tranche of New Syndicate Loan (M) in the amount of JPY 5,796 million, a tranche of New Syndicate Loan (L) in the amount of JPY 4,805 million, New Syndicate Loan (N) in the amount of JPY 3,544 million, New Syndicate Loan (006) in the amount of JPY 10,408 million due on July 16, 2024 and Term Loan (010) in the amount of JPY 1,550 million, Term Loan (011) in the amount of JPY 1,700 million and Term Loan (012) in the amount of JPY 6,800 million due on January 24, 2024.

INV borrowed New Syndicate Loan (013) on March 14, 2024 and March 29, 2024 (total amount borrowed: JPY

7,114 million; interest rate: floating interest rate of 3-month JPY TIBOR plus 0.60000% for a duration of six years, floating interest rate of 3-month JPY TIBOR plus 0.50000% for a duration of five years and floating interest rate of 3-month JPY TIBOR plus 0.50000% for a duration of five years, floating interest rate of 3-month JPY TIBOR plus 0.40000% for a duration of four years, floating interest rate of 3-month JPY TIBOR plus 0.30000% for a duration of three years, floating interest rate of 3-month JPY TIBOR plus 0.30000% for a duration of three years and floating interest rate of 3-month JPY TIBOR plus 0.20000% for a duration of two years), which was arranged by Mizuho Bank, Ltd. in order to repay a part of New Syndicate Loan (007) in the amount of JPY 4,713 million due on March 14, 2024 and a tranche of New Syndicate Loan (K) in the amount of JPY 2,401 million due on March 29, 2024.

Moreover, INV borrowed Term Loan (020) on April 15, 2024 (total amount borrowed: JPY 1,700 million; interest

rate: floating interest rate of 3-month JPY TIBOR plus 0.60000% for a duration of six years), which was arranged by San ju San Bank,Ltd. in order to repay a tranche of New Syndicate Loan (O) in the amount of JPY 1,700 million due on April 15, 2024.

Furthermore, INV borrowed Term Loan (021) on June 27, 2024 (total amount borrowed: JPY 1,000 million;

interest rate: floating interest rate of 3-month JPY TIBOR plus 0.50000% for a duration of five years), which was arranged by SBI Shinsei Bank, Limited in order to repay Term Loan (015) in the amount of JPY 1,000 million due on June 27, 2024.

1. Prepayment of Loan

INV's Short-term consumption tax loan of New Syndicate Loan (010) (in the amount of JPY 3,086 million) was prepaid on April 30, 2024 with the refund of consumption taxes and regional consumption taxes on properties acquired on August 1, 2023 and cash on hand.

1. Issuance of Investment Corporation Bonds

INV issued investment corporation bonds as follows for the purpose of raising a portion of funds for repayment of existing borrowings while at the same time lengthening the average maturity period of its debt and further diversifying repayment dates for interest-bearing debt.

8

Financial Summary for the June 2024 Fiscal Period

(from January 1, 2024 to June 30, 2024)

1. Overview of Results of Operations and Distributions

As a result of the operations mentioned above, operating revenues for the Reporting Period increased by JPY 2,316 million from the previous period (+12.3 %) to JPY 21,136 million, resulting in a net income of JPY 12,900 million, an increase of JPY 1,867 million from the previous period (+16.9%). Unappropriated retained earnings including the retained earnings carried forward from the preceding fiscal period (JPY 8,641 million) is JPY 21,542 million. INV has decided to set the distribution per unit (excluding excess profit distribution) of JPY 1,917, which is the net income per unit (JPY 1,914) plus the reversal of retained earnings (JPY 3 per unit).

b Outlook for the Fiscal Period Ending December 31, 2024

The Japanese economy is considered to be levelling off with negative growth due to the suspension of production and shipments by some automakers. However, it is expected to return to a growth trajectory driven by domestic demand as those production and shipments have resumed. Furthermore, household income is expected to improve, and personal consumption is expected to pick up, reflecting the wage hikes of more than 5% logged in the spring labor negotiations (Shunto). Moreover, companies are estimated to maintain a strong investment appetite in line with improved business performance, and capital investment is expected to remain solid. In addition to this recovery in domestic demand, the decline in the risk of a slowdown in the overseas economy, particularly in the United States, and the continuous increase in inbound demand are expected to be tailwinds for the economy. On the other hand, if concerns about a recession in the U.S. economy emerge and the yen rises and stock prices fall rapidly, it could affect the Bank of Japan's monetary policy and become a strong headwind for the Japanese economy as a whole, including personal consumption.

In the hotel market, demand in both the domestic/inbound and leisure/business segments is expected to remain stable.

In the rental housing market, the population outflow trend from urban areas caused by the impact of the COVID-19 pandemic has recently turned to a trend of population inflow again, which is expected to lead to higher occupancy rates and higher unit rents in the future.

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

9

Financial Summary for the June 2024 Fiscal Period

(from January 1, 2024 to June 30, 2024)

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)

(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 owns 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.

10