[For Information Purpose Only]

November 26, 2018

To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Naoki Fukuda, Executive Director(Securities Code: 8963)
Asset Manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, CEOContact: Jun Komo
General Manager of Planning Department(Tel. +81-3-5411-2731)

Performance Update for October 2018
Invincible Investment Corporation (“INV”) hereby announces its monthly performance for hotel
and residential assets.
1. Hotel and Residential Assets Overview
The combined NOI for the hotel and residential portfolio1 for the December 2018 fiscal period(July to October) increased by 1.4% year-on-year.
2. Hotel Assets Overview
The hotel portfolio2 performance for the month of October 2018 has shown an increase in ADRof 0.6%, a decrease in occupancy of 0.3pt., and an increase in RevPAR of 0.3% year-on-year.
Kansai and Hokkaido, the two regions that were negatively impacted by separate natural
disasters in September 2018, have both shown a continual recovery. Notably, the November
bookings in Hokkaido have returned to previous levels, in part due to a subsidy programintroduced by the government in October 2018 to facilitate the recovery in tourism in thequake-hit region.
Aside from these two regions, the rest of the hotel portfolio3 recorded a RevPAR increase of
3.8% year on year, representing a 0.9pt increase in occupancy and a 2.9% increase in ADR.
Out of the 37 hotels that INV owns in the Greater Tokyo (Tokyo, Kanagawa, Chiba andSaitama) area, the 34 hotels with variable rent continue to perform very well with an increase in
RevPAR of 5.9%, occupancy growth of 1.5pt and ADR growth of 4.2%. The Greater Tokyo
area continues to perform well due to the enforcement of Minpaku regulations since June 2018.
Out of INV's total assets, these 37 hotels in Greater Tokyo area represent 36.5% of total
property NOI4 for the 2018 based upon forecasted normalized NOI.
The above mentioned hotel performance does not include the performance of the Cayman
hotels (the Westin Grand Cayman Seven Mile Beach Resort and Spa and Sunshine Suites
This English language notice is a translation of the Japanese-language notice released on November 26, 2018 and was prepared solely for the convenience of, andreference 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 orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

1Resort), although the performance has so far exceed expectations. During October 2018, theCayman hotels have achieved an occupancy rate, ADR and RevPAR that are 14.7%, 5.3% and20.8% above last year’s results in the same period, respectively.
The October 2018 NOI for the hotel portfolio1 decreased by 0.4% (year on year) and thecumulative NOI for the December 2018 fiscal period (July to October) increased by 0.3%
compared to the same period last year. Excluding disaster affected areas of Kansai andHokkaido, the October 2018 NOI for the rest of the hotel portfolio increased by 2.5%year-on-year.

3. Residential Assets Overview
The residential portfolio5 occupancy rate as of the end of October 2018 was 95.8% (+0.9ptyear-on-year). The rent increase program continues to show strong results as average rent
per tsubo as of the end of October 2018 increased by 2.3% year-on-year.
Rents, compared with immediately preceding leases, increased by 3.3% across all new leases,
5.4% across all renewal leases, and 4.4% across all combined new and renewal leases for theDecember 2018 fiscal period. INV achieved a rent increase for 55.0% of contract renewals(December 2018 fiscal period), in comparison to 54.2% for the full year 2017 (+0.8pt.
year-on-year). The retention rate for the existing tenants continues to be high at 79.2% for theDecember 2018 fiscal period.
NOI6 for the residential portfolio increased by 7.2% in October 2018 (year-on-year), andincreased by 5.7% for the December 2018 fiscal period (July to October) compared to the same
period in 2017. INV’s residential portfolio comprises 64 assets and these residential assets
represent 18.9% of total property NOI for the 2018 based upon forecasted normalized NOI.
4. Performance(1) 54 Hotel Properties2

91.0%

Same month of theprevious year
(B)
91.3%

10,870

October 2018
(A)
Occupancy Rate7
ADR (JPY)

89

RevPAR (JPY)
Gross Revenue(JPY million)10# of Properties

Occupancy Rate7
ADR (JPY)

89

RevPAR (JPY)
Gross Revenue(JPY million)10

Difference(A－B)

YoY Change-0.3pt-0.3%

10,806+64+0.6%

9,889

9,862+27+0.3%

4,913

4,897+16+0.3%

5454

――

Fiscal period
ending December
2018 Cumulative11(C)91.1%

Same period of theprevious year12(D)Difference(C－D)

YoY Change

91.3%-0.3pt-0.3%

11,242

11,060

+182

+1.6%

10,236

10,099

+137

+1.4%

19,282

18,762

+519

+2.8%

This English language notice is a translation of the Japanese-language notice released on November 26, 2018 and was prepared solely for the convenience of, andreference 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 orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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# of Properties

5454

――

(2) 64 Residential Properties5
Same month of theprevious year
(B)

October 2018
(A)

Difference(A－B)

YoY Change

Occupancy Rate

95.8%

94.9%

+0.9pt+1.0%

Rent per Tsubo
(JPY)

9,812

9,596

+216

+2.3%

# of Properties

64

64

―

―

Fiscal period
ending December
2018 Cumulative11(C)

Same period of theprevious year12
(D)

95.4%

94.5%

+0.9pt

+1.0%

9,799

9,600

+199

+2.1%

64

64

―

―

91.3%

Same month of theprevious year
(B)
91.4%

11,018

Occupancy Rate15
Rent per Tsubo(JPY)

Difference(C－D)

YoY Change15# of Properties(3) 45 Hotel Properties12October 2018
(A)
Occupancy Rate7
ADR (JPY)

89

RevPAR (JPY)
Gross Revenue(JPY million)10# of Properties

Occupancy Rate7
ADR (JPY)

89

RevPAR (JPY)
Gross Revenue(JPY million)10# of Properties

Difference(A－B)

YoY Change-0.1pt-0.1%

10,996+22+0.2%

10,05910,045+14+0.1%

4,222

4,226

-3-0.1%

4545――

Fiscal period
ending December
2018 Cumulative11(C)91.3%

Same period of theprevious year12(D)Difference(C－D)

YoY Change

91.2%+0.2pt+0.2%

11,35611,185+170+1.5%

10,372

10,198+174+1.7%

16,43015,951+478

+3.0%

4545

――

This English language notice is a translation of the Japanese-language notice released on November 26, 2018 and was prepared solely for the convenience of, andreference 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 orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

3(4) Cayman Hotels

67.7%

Same month of theprevious year
(B)
59.0%

210

October 2018
(A)
Occupancy Rate7
ADR (USD)

89

RevPAR (USD)
Gross Revenue(USD)# of Properties

Occupancy Rate7
ADR (USD)

89

RevPAR (USD)
Gross Revenue(USD)# of Properties

Difference(A－B)

YoY Change+8.7pt+14.7%

200+11+5.3%

142

118

+24+20.8%

4,136,293

3,272,709+863,584+26.4%

22――

Fiscal period
ending December
2018 Cumulative12(C)72.0%Same period of theprevious year13(D)Difference(C－D)

YoY Change

70.0%+1.9pt

+2.8%

231

161

+70

+43.5%

166

113

+53

+47.5%

19,253,955

11,707,811+7,546,144+64.5%

22――(Note 1) Based on 54 hotel properties and 64 residential properties stated in (Note 2) and (Note 5) below. NOI includes asimulated amount of dividend income from Kingdom TMK (the “TMK”) that owns Sheraton Grande Tokyo Bay Hotel as anunderlying asset. The fiscal periods of the TMK are semi-annual periods from April 1 to September 30 and from October
1 to March 31 every year, and INV will receive the dividend within three months from the end of each semi-annual fiscal
period of the TMK. Since INV does not receive a dividend from the TMK on a monthly basis, the amount of dividend INV
receives from the TMK for each month is a simulated figure, which is calculated by deducting (i) simulated expenses suchas operating expense of the TMK and the interest of debt (calculated dividing the budget of the TMK for the fiscal periodthat includes the relevant month by the number of months in such fiscal period) from (ii) NOI based on the performance ofSheraton Grande Tokyo Bay Hotel in the month which is three months before the target month for this performance
disclosure and multiplied by INV’s ownership ratio of the preferred equity interest in the TMK (49.0%). Moreover, NOI
does not include the simulated amount of dividend income from the overseas TK interest that owns the Westin Grand
Cayman Seven Mile Beach Resort and Spa and Sunshine Suites Resort as underline assets acquired by INV in
September 2018. Furthermore, NOI is provisional figure and subject to change when it is determined at financial
closing; hereinafter the same.
(Note 2) Based on 54 hotel properties; of the 64 domestic hotel properties (including Sheraton Grande Tokyo Bay Hotel, theunderlying asset of preferred equity interest held by INV) held as of the end of October 2018, 9 hotels with fixed-rent leaseagreements and D63 Hotel MyStays Midosuji Honmachi which does not have performance figure for the previous year
since it newly opened in December 2017, are excluded. 9 hotels with fixed-rent lease agreements are D29 Super Hotel
Shinbashi/ Karasumoriguchi, D33 Comfort Hotel Toyama, D36 Super Hotel Tokyo-JR Tachikawa Kitaguchi, D37 Super
Hotel JR Ueno-iriyaguchi, D39 Comfort Hotel Kurosaki, D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubame-Sanjo,
D42 Comfort Hotel Kitami, and D48 Takamatsu Tokyu REI Hotel. As for Sheraton Grande Tokyo Bay hotel, NOI isbased on the figure for the month which is three months prior to the target month for this performance disclosure as INV
will receive the dividend from the TMK within three months of each fiscal period end for the TMK as described above.
However, in consideration of seasonality, figures in the table above are based on the figures for October 2018.
Moreover, the Westin Grand Cayman Resort and Spa and Sunshine Suites Resorts which are the underlying assets of
the overseas TK interest acquired by INV in September 2018 are not included.
(Note 3) Based on 45 hotel properties; of the 54 hotel properties stated in (Note 2) above, 9 hotels located in Kansai region andHokkaido prefecture are excluded.
(Note 4) NOI for Sheraton Grande Tokyo Bay Hotel includes a simulated amount of dividend income from the TMK. Please refer
to (Note 1) above. Moreover, NOI figures before acquisition by INV is based on the data obtained from third-parties
including previous owners.
(Note 5) Based on 64 properties held as of the beginning of July 2018.
(Note 6) NOI excludes one-off insurance-related revenues and expenses.
This English language notice is a translation of the Japanese-language notice released on November 26, 2018 and was prepared solely for the convenience of, andreference 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 orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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(Note 7) “Occupancy Rate” for hotel portfolio is calculated using the following formula:room occupancy rate = total number of rooms occupied during the relevant period ÷ (aggregate number of rooms during
the relevant period x number of business days during target period)(Note 8) “ADR,” or Average Daily Rate, is the value of the total room sales for a certain period (excluding service fees) divided by
the total number of sold rooms for the same period.
(Note 9) “RevPAR,” or Revenues Per Available Room, is calculated by dividing the total sales for a certain period by the aggregate
number of rooms for the same period (rooms x number of days), and is the same as product of room occupancy rate andADR.
(Note 10) Gross Revenue of Sheraton Grande Tokyo Bay Hotel used in the table is the whole gross revenue of such hotel,
regardless of INV’s ownership ratio of the preferred equity interest in the TMK (49.0%)(Note 11) Figures from July 2018 to October 2018 are stated.
(Note 12) Figures from July 2017 to October 2017 are stated. Figures are based on the assumption that the properties acquired
from July 1, 2017 to December 31, 2017 were held as of July 1, 2017, and figures before acquisition by INV is based on
the data obtained from third-parties including previous owners.
(Note 13) Percentages are rounded to one decimal place. ADR and RevPAR are rounded to the nearest yen and Gross Revenue isrounded down to the nearest million yen.
(Note 14) For the details of performance for each asset, please visit INV’s website:
http://www.invincible-inv.co.jp/eng/cms/review.html(Note 15) Cumulative occupancy rate for residential portfolio is calculated by dividing the sum of total leased area by the sum of
total leasable area at the end of each month and the percentages are rounded to one decimal place. Cumulative rent per
tsubo is calculated by dividing the total rental revenue including common area charges for each month by the sum of total
leasable area at the end of each month.
(Note 16) 9 hotels properties acquired during January 2018 and August 2018 are excluded from the 54 hotel properties described in(Note 2) above. The 9 hotels are D54 Hotel MyStays Yokohama Kannai, D55 Art Hotel Joetsu, D56 Art Hotel Hirosaki
City, D57 Hotel MyStays Oita, D58 Hotel MyStays Gotanda, D59 Hotel MyStays Tachikawa, D60 Hotel MyStays Premier
Akasaka, D61 Hotel MyStays Premier Sapporo Park, and D62 Hotel MyStays Ueno East.

Website of INV: http://www.invincible-inv.co.jp/eng

This English language notice is a translation of the Japanese-language notice released on November 26, 2018 and was prepared solely for the convenience of, andreference 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 orassurances are given regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the eventof any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

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