Invincible Investment Corporation (hereinafter "INV") conforms to the policies set out below with regards to cash distributions to unitholders or registered pledgees of investment units listed or recorded in the registry of unitholders at the end of each fiscal period.
- (1) Distribution of Profits
Distributable amounts generated from management of INV's assets (hereinafter "distributable amounts") refers to the amount of profits calculated in conformity with the provisions of the Law Concerning Investment Trusts and Investment Corporations (hereinafter "the Law") or generally accepted accounting principles in Japan (net assets in the balance sheet as of the closing date of each fiscal period less unitholders' capital, retained earnings, and evaluation, currency translation, etc.) (Article 17, Item 1 of the Articles of Incorporation of INV).
INV determines the amount of distribution, which must be an amount that exceeds 90% of the amount of INV's distributable income as stipulated in Article 67, Item 15 (the Special Provisions of Taxation for Investment Corporations) of the Act on Special Measures Concerning Taxation (hereinafter "distributable income") (or the relevant amount after modification if there is any modification to the calculation of the said amount due to revisions to the law, etc.) (However, the amount may not exceed the distributable amount.). In addition, INV can accumulate reserves and allowances from the distributable income amount that are deemed to be necessary for maintaining its investment assets and improving or increasing the value of assets such as long-term reserve for maintenance, payment reserve, reserve for distribution, and other similar reserves, etc. (Article 17, Item 2 of the Articles of Incorporation of INV).
Any retained earnings not allocated for dividends will be managed based on INV's investment asset targets and policies (Article 17, Item 3 of the Articles of Incorporation of INV). - (2) Cash Distribution Exceeding Profits
In cases when the distributable amount is less than 90% of distributable income, or when INV considers it appropriate depending on the economic circumstances and the trends in the real estate market, the leasing market, etc., INV may, in accordance with the provisions under the Law, determine an additional amount to be distributed to the unitholders as cash over and above the distributable amount, with the upper limit of the additional amount being calculated by adding the distribution amount prescribed in (1) above to an amount corresponding to depreciation recorded at the end of the fiscal period, based on the approved cash distribution statement in accordance with the Law . In this case, if such cash distributions do not satisfy the requirements for Special Provisions of Taxation for Investment Corporations, INV may distribute monies in an amount determined by INV for the purpose of satisfying those conditions (Article 17, Item 4 of the Articles of Incorporation of INV).
| (3) | Methods of Distribution Distributions shall be paid in cash and based on the number of investment units held to unitholders who are listed or recorded in the registry of unitholders on the closing date of each fiscal period, or to registered pledgees of investment units (Article 17, Item 5 of the Articles of Incorporation of INV). |
| (4) | Statutory Limitation for Dividends INV will be exempted from its obligation to pay distributions to unitholders or registered pledgees of investment units after a lapse of three years from the commencement date of payment. No interest will accrue with respect to unpaid distributions (Article 17, Item 6 of the Articles of Incorporation of INV). In addition to (1) through (4) above, INV shall comply with the rules of The Investment Trusts Association, Japan, etc. in cash distributions. |