[For Informational Purpose Only]
February 4, 2015
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Naoki Fukuda, Executive Director
Roppongi Hills Mori Tower
6-10-1 Roppongi, Minato-ku, Tokyo, Japan(Securities code: 8963)
Asset manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, CEOContact: Akiko Watanabe,Manager of Planning Department(Tel. +81-3-5411-2731)

Notice concerning Revision of Forecast of Financial Results and Distribution for the 23rd
Fiscal Period Ended December 2014, the 24th Fiscal Period Ending June 2015 and the25th Fiscal Period Ending December 2015
Invincible Investment Corporation (“INV”) today announces the revision of its forecast of financial
results and distribution per unit (“DPU”) for the fiscal period ending December 2014 (23rd fiscal
period: from July 1, 2014 to December 31, 2014), together with the revision of its forecasts offinancial results and DPU for the fiscal periods ending June 2015 (24th fiscal period: from January 1,
2015 to June 30, 2015) and December 2015 (25th fiscal period: from July 1, 2015 to December 31,2015), as previously announced in the press release titled “Notice concerning Revision of Forecastof Financial Results and Distribution for the 23rd Fiscal Period Ending December 2014 andForecast of Financial Results and Dsitribution for the 24th Fiscal Period Ending June 2015 and the25th Fiscal Period Ending December 2015” dated October 31, 2014.
Based on the continued strong revenue growth in its existing hospitality portfolio, INV expects a
DPU for the 23rd fiscal period ended December 2014 of JPY 733 which is 11.7% higher than theprevious forecast of JPY 656 on October 31, 2014 and 22.2% higher than the original forecast of
JPY 600 announced in the financial summary on August 27, 2014. The robust earnings are due to asignificant increase in GOP growth for the exiting 20 hotels resulting from a considerable increase in
inbound international visitors, enhanced utilization of international web-agents to improve brandrecognition, strategic initiatives to attract inbound demand and intensive revenue management by
the hotel operator.
INV is also expecting strong growth for 2015 with a projected annual DPU for 2015 of JPY 1,571
which is 10.5% above the previous forecast of JPY 1,422 on October 31, 2014 and 20.3% above
the updated expected calendar year 2014 DPU of JPY 1,306. The projection of calendar year 2015
This English language notice is a translation of the Japanese-language notice released on February 4, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution
readers to undertake investment decisions based on their own investigation and responsibility.
This translation of the original
Japanese-language notice is provided for informational purposes only, and no warranties or assurances are given regarding the accuracy orcompleteness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

1

DPU of JPY 1,571 is also 36.6% above the original projection of calendar year 2014 DPU of JPY
1,150 that was announced on June 23, 2014. The increase in earnings forecast is attributed to thecontinued growing income streams from the hospitality assets as well as the acquisition of three
new hotel properties by utilizing excess cash at INV and new borrowings without issuing new equity,
as announced in the press release today titled “Notice concerning Acquisition of Assets andEntering into Leasing Contract”.
Importantly, this new acquisition will be funded with a lower LTV of 44.0% (calculated by dividing thetotal appraisal values of the three new hotel properties as of December 1, 2014 with the loan
amount procured for the acquisition of those properties after the deduction of the expected amountof repayment upon refund of consumption tax), which along with an increase in the appraisal valuesof the existing portfolio, will result in a lower REIT level LTV of 51.4% after the transaction. (Note:
LTV based on appraisal values as of the end of December 2014 for currently owned properties andappraisal values as of December 1, 2014 for the new three hotel properties, and the amount ofinterest bearing debt after the deduction of the expected amount of repayment upon refund of theconsumption tax.)

This English language notice is a translation of the Japanese-language notice released on February 4, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution
readers to undertake investment decisions based on their own investigation and responsibility.
This translation of the original
Japanese-language notice is provided for informational purposes only, and no warranties or assurances are given regarding the accuracy orcompleteness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

2

Details

1.

Revision of forecast of financial results for the fiscal period ended December 2014
(from July 1, 2014 to December 31, 2014)
Total
distribution
amountOperatingrevenues

OperatingincomeOrdinary
incomeMillion JPY

Million JPY

Million JPY

Million JPY

Million JPY

4,474

2,580

1,752

1,752

1,750

Revised forecast (B)Million JPY
4,610

Million JPY
2,769

Million JPY
1,958

Million JPY
1,958

Million JPY
1,956

Amount of Variance(B) – (A)Million JPY
136

Million JPY
189Million JPY
205

Million JPY
205

Million JPY
205

Rate of variance[(B) − (A)] ÷ (A)

%
3.1

%

%

%

%

7.3

11.7

11.7

11.7

(Reference)
Actual results(22nd fiscal period)

Million JPY

Million JPY

Million JPY

Million JPY

Million JPY

3,775

2,234

902

901

901

Earnings per
unit

Reversal of
Surplus per
unit

Previous forecast (A)(announced on
October 31, 2014)

Net income

DPU

Excess profit
distribution
per unit

DPU(Note 1) (Note 2)(excluding excess
profit distribution
per unit) (Note 1)

JPY

JPY

JPY

JPY

JPY

656

0

656

0

656

JPY

JPY

JPY

JPY

JPY

733

0

733

0

733

Amount of Variance(B) – (A)

JPY

JPY

JPY

JPY

JPY

77

－

77

－

77

Rate of variance[(B) − (A)] ÷ (A)

%

%

%

%

%

11.7

－

11.7

－

11.7

JPY

JPY

JPY

JPY

JPY

573

0

573

0

573

(Note 1)

Previous forecast (A)(announced on
October 31, 2014)
Revised forecast (B)(Reference)
Actual results(22nd fiscal period)(Note 1)
(Note 2)
(Note 3)(Note 1)(including excess
profit distribution
per unit) (Note 1)

The number of investment units issued and outstanding at the end of the fiscal period: 2,668,686 units.
Reversal of surplus resulting from the gain on negative goodwill recognized in connection with the merger in
February 2010 (the “Surplus”). The same shall apply hereinafter.
Figures (including earnings per unit, reversal of Surplus per unit and excess profit distribution per unit) arerounded down to the indicated amount and percentages are rounded to the first decimal place.
The same shall apply hereinafter.

This English language notice is a translation of the Japanese-language notice released on February 4, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution
readers to undertake investment decisions based on their own investigation and responsibility.
This translation of the original
Japanese-language notice is provided for informational purposes only, and no warranties or assurances are given regarding the accuracy orcompleteness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

3

2.

Revision of forecasts of financial results and DPU for the fiscal periods ending June 2015 (fromJanuary 1, 2015 to June 30, 2015) and December 2015 (from July 1, 2015 to December 31,
2015)<Fiscal Period Ending June 2015>
Total
distribution
amountOperatingrevenues

OperatingincomeOrdinary
incomeMillion JPY

Million JPY

Million JPY

Million JPY

Million JPY

4,343

2,241

1,761

1,760

1,758

Revised forecast (B)Million JPY
4,631

Million JPY
2,439

Million JPY
1,903

Million JPY
1,902

Million JPY
1,900

Amount of Variance(B) – (A)Million JPY
287

Million JPY
198Million JPY
142Million JPY
142Million JPY
141

%
6.6

%

%

%

%

8.9

8.1

8.1

8.0

Previous forecast (A)(announced on
October 31, 2014)

Rate of variance[(B) − (A)] ÷ (A)Earnings per
unit(Note)

Previous forecast (A)(announced on
October 31, 2014)

Net income

Distribution
per unit

Reversal of
Surplus perunit (Note)(excluding excess
profit distribution
per unit) (Note)

Excess profit
distribution
per unit(Note)

Distribution
per unit(including excess
profit distribution
per unit) (Note)

JPY

JPY

JPY

JPY

JPY

659

0

659

0

659

JPY

JPY

JPY

JPY

JPY

712

0

712

0

712

Amount of Variance(B) – (A)

JPY

JPY

JPY

JPY

JPY

53

－

53

－

53

Rate of variance[(B) − (A)] ÷ (A)

%

%

%

%

%

8.0

－

8.0

－

8.0

Revised forecast (B)(Note) The number of investment units issued and outstanding at the end of the fiscal period: 2,668,686 units.

<Fiscal Period Ending December 2015>
Total
distribution
amountOperatingrevenues

OperatingincomeOrdinary
incomeMillion JPY

Million JPY

Million JPY

Million JPY

Million JPY

4,631

2,514

2,037

2,036

2,036

Revised forecast (B)Million JPY
5,034

Million JPY
2,812

Million JPY
2,294

Million JPY
2,293

Million JPY
2,292

Amount of Variance(B) – (A)Million JPY
403

Million JPY
297

Million JPY
257

Million JPY
257

Million JPY
256

%
8.7

%

%

%

%

11.8

12.6

12.6

12.6

Previous forecast (A)(announced on
October 31, 2014)

Rate of variance[(B) − (A)] ÷ (A)Net income

This English language notice is a translation of the Japanese-language notice released on February 4, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution
readers to undertake investment decisions based on their own investigation and responsibility.
This translation of the original
Japanese-language notice is provided for informational purposes only, and no warranties or assurances are given regarding the accuracy orcompleteness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

4Distribution
per unit

Earnings perunit (Note)
JPY

JPY

JPY

JPY

JPY

763

0

763

0

763

JPY

JPY

JPY

JPY

JPY

859

0

859

0

859

Amount of Variance(B) – (A)

JPY

JPY

JPY

JPY

JPY

96

－

96

－

96

Rate of variance[(B) − (A)] ÷ (A)

%

%

%

%

%

12.6

－

12.6

－

12.6

Previous forecast (A)(announced on
October 31, 2014)
Revised forecast (B)(excluding excess
profit distribution
per unit) (Note)

Excess profit
distribution
per unit (Note)

Distribution
per unit

Reversal of
Surplus perunit (Note)(including excess
profit distribution
per unit) (Note)(Note) The number of investment units issued and outstanding at the end of the fiscal period: 2,668,686 units.

(Reference) <2015 Annual> (Based on the aggregation of fiscal periods ending in June and December 2015)
Operatingrevenues

OperatingincomeOrdinary
incomeNet income

Total
distribution
amountMillion JPY

Million JPY

Million JPY

Million JPY

Million JPY

8,974

4,755

3,798

3,797

3,794

Million JPY

Million JPY

Million JPY

Million JPY

9,665

5,251

4,197

Million JPY
4,196

Million JPY

Million JPY

Million JPY

Million JPY

Million JPY

690

496

399

399

397

%

%

%

%

%

7.7

10.4

10.5

10.5

10.5

Earnings per
unit

Reversal of
Surplus per
unit

JPY

JPY

JPY

JPY

JPY

1,422

0

1,422

0

1,422

JPY

JPY

JPY

JPY

JPY

1,571

0

1,571

0

1,571

Amount of Variance(B) – (A)

JPY

JPY

JPY

JPY

JPY

149

－

149

－

149

Rate of variance[(B) − (A)] ÷ (A)

JPY

JPY

JPY

JPY

JPY

10.5

－

10.5

－

10.5

Previous forecast (A)(announced on
October 31, 2014)
Revised forecast (B)Amount of Variance(B) – (A)Rate of variance[(B) − (A)] ÷ (A)Previous forecast (A)(announced on
October 31, 2014)
Revised forecast (B)Distribution
per unit(excluding excess
profit distribution
per unit)

Excess profit
distribution per
unit

4,192

Distribution
per unit(including excess
profit distribution
per unit)

This English language notice is a translation of the Japanese-language notice released on February 4, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution
readers to undertake investment decisions based on their own investigation and responsibility.
This translation of the original
Japanese-language notice is provided for informational purposes only, and no warranties or assurances are given regarding the accuracy orcompleteness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

5

3.

Reasons for the Revision of Forecast of Financial Results and Distribution
The decision to revise the forecast was made at this time as a greater than 5% change is expectedin the respective forecasted distribution per unit compared to the previous forecasts from the 23rd
fiscal period to the 25th fiscal period announced in the press release titled “Notice concerning
Revision of Forecast of Financial Results and Distribution for the 23rd Fiscal Period Ending
December 2014 and Forecasts of Financial Results and Distribution for the 24th Fiscal PeriodEnding June 2015 and the 25th Fiscal Period Ending December 2015” dated October 31, 2014, asa result of a review of the forecasts.
The main factors resulting in the revision of the forecast are as follows:(1) Fiscal Period Ended December 2014
Through a significant increase in inbound international visitors, an increase in the overall
number of travelers, effective revenue management by the hotel operators, and otherinitiatives as described in “4. Overview of Performance for the Fiscal Period ended December
2014”, operating revenues are expected to increase by JPY 136 million compared to theprevious forecast, primarily due to the strong performance of the existing 20 hotels from July to
December 2014.
As a result of the above factors, the total distribution amount for the fiscal period ended
December 2014 is expected to be JPY 1,956 million and the DPU is expected to be JPY 733(11.7% increase).
(2) Fiscal Periods Ending June 2015 and December 2015
Operating revenues for the fiscal period ending June 2015 are expected to increase by JPY
287 million compared to the previous forecast, and operating revenues for the fiscal period
ending December 2015 are expected to increase by JPY 403 million compared to the previous
forecast. As a result, the total distribution amount for the fiscal period ending June 2015 is
expected to be JPY 1,900 million and the total distribution amount for the fiscal period ending
December 2015 is expected to be JPY 2,292 million. The DPU for the fiscal period ending
June 2015 is expected to be JPY 712 (8.0% increase from the October 2014 forecast) and the
DPU for the fiscal period ending December 2015 is expected to be JPY 859 (12.6% increase
from the October 2014 forecast). The upward revision to the 2015 forecasts is due to theacquisition of new properties (3 hotel properties) by utilizing excess cash-on-hand and new
borrowings without issuing new equity, as announced today “Notice concerning Acquisition ofAssets and Entering into Leasing Contract”.
The annual DPU is expected to increase to JPY 1,571 (10.5%) from JPY 1,422, the previous
forecast as of October 31, 2014. INV presents full year figures for financial results anddistribution for information purpose only because rental revenues of hotel properties tend tofluctuate by season.

This English language notice is a translation of the Japanese-language notice released on February 4, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution
readers to undertake investment decisions based on their own investigation and responsibility.
This translation of the original
Japanese-language notice is provided for informational purposes only, and no warranties or assurances are given regarding the accuracy orcompleteness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

6Regarding the details of the assumptions underlying forecasts for each fiscal period, please
see the “Appendix <Assumptions Underlying Forecast of Financial Results and Distribution forthe 23rd Fiscal Period, for the 24th Fiscal Period and for the 25th Fiscal Period>” below.
4.

Overview of Performance for the Fiscal Period ended December 2014
Through increased demand for travel and effective revenue management by the hotel
operators, total revenue from international guests from July to December 2014 was JPY 752
million, 482.9% higher than the same period in the previous year. The percentage of revenue
from international guests from July to December 2014 was 22.7%, 18.2 points higher than thesame period in the previous year. The average occupancy rate of the 20 hotels for the same
period was 91.1%, 2.3 points higher than the same period in the previous year and 3.0 points
higher than the budget. The average ADR for the same period was JPY 8,105 which was
14.9% higher than the same period in the previous year and 12.9% higher than the budget.
The stronger performance of both occupancy and ADR produced RevPAR of JPY 7,382 which
was 17.9% higher than the same period last year or 16.8% higher than the budget.
(Note) The performance of the same period in the previous year (from July 2013 to December 2013) is based ondata provided by the seller of the 20 hotels before INV acquired the 20 hotels. Likewise, the performance ofthe period from July 1, 2014 to July 16, 2014 of the 18 hotels INV acquired on July 17, 2014 is based ondata provided by the seller of those hotels. The same applies to following graphs.
Actual Overseas Sales and Share of Total
Actual Overseas Sales and Share of Total(Comparisonof ActualofJul.
– Dec.
figures
eacheach
year)(Comparison
ActualJul. -Nov.
figuresyear)

Overseas Sales+482.9%Overseas Sales Share +18.2 points

Unit: mn JPY
800

28.0%

22.7%

21.0%

600

752

400

y

4.5%

200
0

p

14.0%
7.0%

129

0.0%

ActualJul. ‐ Dec. 2013
Overseas Sales

ActualJul. ‐ Dec. 2014
Overseas Sales Share

ActualRate/ ADR / RevPAR of
ActualOccupancy
Occupancy
Rate/ADR/RevPARof 20
20 Hotels
Hotels(Comparison
ActualJul.-Dec.
Jul. -Nov. figures
year)(Comparison
ofofActual
figureseacheachother)

Occupancy
ADR
RevPAR+2.3 points+14.9%+17.9%

Unit: JPY
94.0%

8,500

91.1%
88.8%

7,000

7,054
5,500

90.0%

8,105
7,382

6,263

0
4,000

86.0%

82.0%

ActualJul. ‐ Dec. 2013
ADR

ActualJul. ‐ Dec. 2014
RevPAR

Occupancy Rate

This English language notice is a translation of the Japanese-language notice released on February 4, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution
readers to undertake investment decisions based on their own investigation and responsibility.
This translation of the original
Japanese-language notice is provided for informational purposes only, and no warranties or assurances are given regarding the accuracy orcompleteness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

7Budget & Budget
Actual &Occupancy
Rate / ADR/ RevPAR of 20
HotelsActual Occupancy
Rate/ADR/RevPAR
of 20
Hotels Occupancy
ADR
Budget for& Actualfor Jul. figures-Nov. figures
2014)(Comparison of(Comparison
Budget & ofActual
Jul.-Dec.
eachother)
RevPAR+3.0 points+12.9%+16.8%

Unit: JPY
8,500

94.0%

91.1%
7,000

7,181

88.2%

8,105

90.0%

7,382

6,322

5,500

86.0%

0
4,000

82.0%

Forecast
Jul. ‐ Dec. 2014
ADR

ActualJul. ‐ Dec. 2014
RevPAR

Occupancy Rate

(Note 1) “Occupancy rates” are calculated in accordance with the following formula:(Occupancy rates) = (total number of occupied rooms during a certain period) / (the total number of rooms
available during the same period × total operating days during the same period)(Note 2) “ADR” means average daily rate, and is calculated by dividing total room sales (except for service fee) fora certain period by the aggregate number of days per room for which each room was occupied during thesame period.
(Note 3) “RevPAR” means revenue per available room per day, and is calculated by dividing total room sales for acertain period by total number of rooms available (number of rooms × number of days) during the same
period, and is the same as the figure obtained by multiplying occupancy rates by ADR.

The number of international visitors for the period from January to December 2014 increasedby 29.4% to 13.41 million compared to the previous year. The growth rate of international
visitors to Japan from China and South-East Asian countries such as Indonesia, Philippines
and Vietnam increased significantly since Japan relaxed the visa requirements for thosecountries.
(Source) The figures of January to October 2014 are provisional. The figures of November to December 2014 areestimates provided by Japan National Tourism Organization (JNTO).

International Visitors in Japan by Region Actual in 2014
(from January to December)
Non‐Asia
19.6%

Top 5 Countries
by Growth Rate
#1 China+83.3%#2 Philippines +70.0%#3 Vietnam+47.1%#4 Thailand+45.0%#5 Malaysia+41.4%

OthersTaiwanU.S.A.13.0% 21.1%
6.6%
総計
Others 12,177千人
Korea
20.8%
20.5%
China
18.0%

Asia 80.4%

Total: 13.41 million Visitors(YoY +29.4%)
Based on the current processing of the performance from July to December 2014, INV revisedThis English language notice is a translation of the Japanese-language notice released on February 4, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution
readers to undertake investment decisions based on their own investigation and responsibility.
This translation of the original
Japanese-language notice is provided for informational purposes only, and no warranties or assurances are given regarding the accuracy orcompleteness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

8its forecast for the fiscal period ended December 2014, and the revised forecast of earnings
per unit is JPY 733, 11.7% increase from the previous forecast of JPY 656.

5.

Other: Surplus
Following the distribution for the fiscal period ended December 2015, the balance of the
Surplus is expected to be JPY 75 million.

This English language notice is a translation of the Japanese-language notice released on February 4, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution
readers to undertake investment decisions based on their own investigation and responsibility.
This translation of the original
Japanese-language notice is provided for informational purposes only, and no warranties or assurances are given regarding the accuracy orcompleteness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

9

(Appendix)<Assumptions Underlying the Forecast of Financial Results and Distributionrdthth
for the 23 Fiscal Period, the 24 Fiscal Period and the 25 Fiscal Period>
Item

Fiscal period

Assumptionsrd
The 23 fiscal period: from July 1, 2014 to December 31, 2014 (184 days)
The 24th fiscal period: from January 1, 2015 to June 30, 2015 (181 days)
The 25th fiscal period: from July 1, 2015 to December 31, 2015 (184 days)rd
Properties held as of the end of the 23 fiscal period: 91 properties
Properties held as of the end of the 24th fiscal period: 94 properties
Properties held as of the end of the 25th fiscal period: 94 properties

Assets undermanagement

INV assumes that INV will newly acquire 3 hotel properties (Note) as of February 6,2015 in addition to existing 91 properties, and there will be no change through the end of
the fiscal period ending December 2015.
(Note) Regarding the acquisition of properties as of February 6, 2015, please refer to “Noticeconcerning Acquisition and Leasing of Assets” dated as of today.

Units outstandingrd
As of the end of the 23 fiscal period: 2,668,686 units
As of the end of the 24th fiscal period: 2,668,686 units
As of the end of the 25th fiscal period: 2,668,686 units

INV assumes that there will be no additional issuance of units through the end of the
fiscal period ending December 2015.
Balance as of the end of the 23rd fiscal period: JPY 67,260 mn
Balance as of the end of the 24th fiscal period: JPY 72,301 mn
Balance as of the end of the 25th fiscal period: JPY 71,961 mn
Interest-bearing liabilities

INV assumes that JPY 1,200 million of the existing borrowing, New Syndicate Loan (C),will be repaid as the borrowing corresponding to the return of consumption tax in thefiscal period ending June 2015. JPY 321 million of the new loan, New Syndicate Loan
(D), will be repaid as the borrowing corresponds to the return of consumption tax in thefiscal period ending December 2015. JPY 18 million of the Prudential LPS Loan B will be
repaid in accordance with the contract.

This English language notice is a translation of the Japanese-language notice released on February 4, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution
readers to undertake investment decisions based on their own investigation and responsibility.
This translation of the original
Japanese-language notice is provided for informational purposes only, and no warranties or assurances are given regarding the accuracy orcompleteness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

10

Item

Assumptions
INV expects to record rental revenues for each fiscal period as follows:

Operating revenues

・Rental revenues(of these, hotel
rents)(fixed hotel rents)(variable hotel rents)

The 23rd fiscal
periodJPY 4,610 mn(JPY 2,069 mn)

The 24th fiscal
periodJPY 4,631 mn(JPY 1,993 mn)

The 25th fiscal
periodJPY 5,034 mn(JPY 2,410 mn)(JPY 705mn)(JPY 1,364mn)(JPY 942mn)(JPY 1,050mn)(JPY1,067mn)(JPY1,342mn)

Rental revenues in the fiscal period ended December 2014 are calculated based on
actual data from July 2014 to December 2014 as currently available in the accounting
process, and the fiscal period ending December 2015 are calculated based on estimatesas of today from January 2015 to December 2015. In addition, INV assumes there will
be no delinquencies or non-payment of rent by tenants.
INV expects to incur property related expenses for each fiscal period as follows:rd

Operating expenses

・Facility managementfees(of these, repair costs)
・Taxes and other publiccharges・Insurance expenses
・Other expenses
・Depreciation expenses
Total property related
expenses

The 23 fiscal
periodThe 24th fiscal
periodThe 25th fiscal
periodJPY 460 mn(JPY 29 mn)

JPY 492 mn(JPY 40 mn)

JPY 479 mn(JPY 40 mn)

JPY 163 mn

JPY 204 mn

JPY 255 mn

JPY 6 mn
JPY 119 mn
JPY 837 mn

JPY 7 mn
JPY 164 mn
JPY 1,005 mn

JPY 7 mn
JPY 141 mn
JPY 1,025 mn

JPY 1,586 mn

JPY 1,874 mn

JPY 1,909 mn

INV expects to incur other operating expenses than the property related expenses foreach fiscal period as follows:rd・Other operating
expenses(of these, asset
management fees)

The 23 fiscal
periodThe 24th fiscal
periodThe 25th fiscal
periodJPY 257 mn

JPY 317 mn

JPY 312 mn(JPY 125 mn)(JPY 180 mn)(JPY 180 mn)

INV expects to record net operating income for each fiscal period as follows:
Net Operating Income
・NOI(of these, hotel NOI)The 23rd fiscal
periodJPY 3,861 mn(JPY 2,034 mn)

The 24th fiscal
periodJPY 3,762 mn(JPY 1,907 mn)

The 25th fiscal
periodJPY 4,150 mn(JPY 2,277 mn)

This English language notice is a translation of the Japanese-language notice released on February 4, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution
readers to undertake investment decisions based on their own investigation and responsibility.
This translation of the original
Japanese-language notice is provided for informational purposes only, and no warranties or assurances are given regarding the accuracy orcompleteness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

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Item

Assumptions
INV expects to incur non-operating expenses for each fiscal period as follows:

Non-operating expenses

・Interest expense
・Finance related costs
・Other non-operating
expenses
Total Non-operating
expenses

The 23rd fiscal
periodJPY 365 mn
JPY 294 mn

The 24th fiscal
periodJPY 392 mn
JPY 144 mn

The 25th fiscal
periodJPY 398 mn
JPY 118 mn

JPY 152 mn

JPY － mn

JPY － mn

JPY 812 mn

JPY 536 mn

JPY 517 mn

Distribution per unit

The distribution per unit is calculated in accordance with the cash distribution policy as
set forth in INV’s Articles of Incorporation.

Excess profit distribution
per unit

INV does not expect to make distributions in excess of profits (Excess profit distribution
per unit) as of today.

Other

INV assumes there will be no amendments to applicable laws and regulations, thetaxation system, accounting standards and other regulations that would affect theforegoing forecasts.
In addition, INV assumes there will be no unforeseen material changes in general
economic trends, real estate market conditions and other trends and conditions.

This English language notice is a translation of the Japanese-language notice released on February 4, 2015 and was prepared solely for theconvenience of, and reference by, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution
readers to undertake investment decisions based on their own investigation and responsibility.
This translation of the original
Japanese-language notice is provided for informational purposes only, and no warranties or assurances are given regarding the accuracy orcompleteness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

12