[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
September 25, 2019
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 August 2019
Invincible Investment Corporation (“INV”) hereby announces its monthly performance.
1. Overall Performance of the Entire Portfolio
The overall Portfolio NOI1,2 for December 2019 fiscal period (from July to August) decreased by
4.7% compared to the same period in 2018. The decline in NOI for August 2019 (-4.1%) stems
from several issues affecting the Japan hotel and tourism market, including (i) the prolonged
trade and diplomatic dispute between Japan and South Korea resulting in fewer inboundtravelers from South Korea and (ii) 5 typhoons in August which impacted travel demand
especially to/from Western Japan. Guests from South Korea only represent 3.3% of INV’s total
hotel room revenue3 for January-June 2019, but declined to 1.4% in August 2019. The decline
in guests from South Korea is in line with the August 2019 figures announced by Japan National
Tourism Organization (JNTO), showing a 48% decline in visitor arrivals from South Korea toJapan year-on-year. This could have had an adverse effect on the entire hotel industry inJapan whereby hotel operators that are heavily dependent on South Korean guests cut rates.
The following are the details by segment.
2. Hotel Assets Overview(1) Domestic Hotels
The domestic hotel portfolio4 performance for the month of August 2019 has shown declines
in ADR, Occupancy and RevPAR of -1.2%, -2.1pt and -3.3% year-on-year, respectively, due
to the reasons mentioned above. The August 2019 NOI declined by -4.7% year-on-year,
and the cumulative NOI for the December 2019 fiscal period (July to August) declined by 6.1% compared to the same period last year.
This English language notice is a translation of the Japanese-language notice released on September 25, 2019 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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Table below shows the KPIs for each area of the domestic hotel portfolio.
Pre-offering (55 properties5)
Area

Post-offering (71 properties4)

Occupancy

ADR

RevPAR Occupancy

ADR

RevPAR

Rate8(JPY)9(JPY)10(JPY)9(JPY)10

Rate8

Tokyo 23 Wards

90.0%

8,533

7,682

90.2%

8,291

7,477

Greater Tokyo (ex. Tokyo 23 Wards)

93.9%

15,364

14,42994.0%

15,02814,129

Chubu

89.4%

9,870

8,828

90.9%

12,01910,921

Kansai

90.3%

8,718

7,876

90.3%

8,718

7,876

Kyushu91.5%

10,281

9,410

90.3%

13,314

12,026

Hokkaido

91.8%

15,125

13,892

91.9%

16,461

15,127

Other domestic

96.2%

34,79033,46694.0%

29,752

27,971

Total

91.4%

12,36011,29891.4%

13,00911,889(2) Cayman Hotels
The Cayman Hotels (the Westin Grand Cayman Seven Mile Beach & Spa and Sunshine
Suites Resort) continue to perform well. ADR increased by 9.5%, Occupancy declined by-4.0pt and RevPAR increased by 3.8%.
The NOI (direct ownership basis, hereafter the same) for the month of August 2019
decreased by 2.4% year-on-year (which is included in the calculation of the overall Portfolio
NOI for July 2019 as stated in “1. Overall Performance of the Entire Portfolio” on page 1)
mainly due to decreases in non-room revenues. The cumulative NOI for the December
2019 fiscal period (July to August) increased by 2.7% compared to the same period last year.
3. Residential Assets Overview
The residential portfolio6 in-place occupancy rate as of the end of August 2019 was 96.5%, ayear-on-year increase of 0.4 pt. The rent increase program continues to show positive results
as the average in-place rent per tsubo as of the end of August 2019 increased by 0.2% yearover-year. NOI7 for the residential portfolio in August 2019 increased by 0.5% year-on-year,
and increased by 0.5% on a cumulative basis for the December 2019 fiscal period (July toAugust).
Rents, compared with those based on the immediately preceding leases, increased by 0.8%
across all new leases, 1.2% across all renewal leases, and 1.0% across all combined new andrenewal leases for the December 2019 fiscal period.
INV achieved a rent increase on 33.6% of lease contract renewals (December 2019 fiscalperiod). The retention rate for the existing tenants continues to be high at 82.7% for theDecember 2019 fiscal period.

This English language notice is a translation of the Japanese-language notice released on September 25, 2019 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.

24. Performance(1) 55 Domestic Hotel Properties5
(A－B)

YoY
Change-2.1pt-2.3%

Cumulative (July-August)
2019
2018
YoY(C－D)(C)(D)
Change91.1%
92.5%-1.4pt-1.5%

12,596

-236

-1.9%

11,402

11,753

-351

-3.0%

11,298

11,783

-485

-4.1%

10,386

10,868

-482

-4.4%

5,184

5,387

-202

-3.8%

9,610

10,076

466

-4.6%

(A－B)

YoY
Change-2.1pt-2.2%

Cumulative (July-August)
2019
2018
YoY
(C－D)
(C)
(D)
Change91.0%
92.3%-1.3pt-1.4%

Occupancy Rate8

August
2019
(A)
91.4%

August
2018
(B)
93.5%

ADR (JPY)912,360

RevPAR (JPY)10Gross Revenue(JPY million)11(2) 71 Domestic Hotel Properties4

Occupancy Rate8

August
2019
(A)
91.4%

August
2018
(B)
93.5%

ADR (JPY)913,009

13,161

-152

-1.2%

12,022

12,275

-253

-2.1%

RevPAR (JPY)10Gross Revenue(JPY million)11

11,88912,300

-410

-3.3%

10,935

11,326

-391

-3.4%

6,685

6,844

-159

-2.3%

12,422

12,828

-386

-3.0%

August
2019
(A)
73.5%

August
2018
(B)
77.5%

(A－B)

YoY
Change-4.0pt-5.2%

ADR (USD)9252

230+22+9.5%

280

251+29+11.6%

RevPAR (USD)10185

178+7+3.8%225

210+15+7.2%

Gross Revenue(USD thousand)

5,176

5,401

-225

-4.2%

12,366

12,108+257

+2.1%

(A－B)

YoY
Change+0.4pt+0.4%

Cumulative (July-August)
2019
2018
YoY
(C－D)
(C)
(D)
Change96.5%
96.0%+0.5pt+0.5%+22+0.2%

9,374(3) Cayman Hotels

Occupancy Rate8

Cumulative (July-August)
2019
2018
YoY(C－D)(C)(D)
Change80.2%
83.5%-3.3pt-3.9%(4) 62 Residential Properties6

Occupancy Rate
Rent per Tsubo(JPY)

August
2019
(A)
96.5%

August
2018
(B)
96.1%

9,367

9,345

9,356

+18+0.2%

5. Portfolio NOI
Pre-offering (130 properties)
2018 Simulated

NOI14,2 (JPY million)

NOI13(JPYmillion)

AugustRatio

2019

2018

Cumulative (July-August)
YoY2019

2018

YoYThis English language notice is a translation of the Japanese-language notice released on September 25, 2019 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ChangeChangeTokyo 23 Wards

6,388

23.5%

449

517

-13.1%

904

1,041-13.2%

Greater Tokyo (ex. Tokyo 23 Wards)

3,568

13.1%

310

327-5.4%

572

598

-4.4%

Greater Tokyo - Subtotal

9,957

36.6%

759

844

-10.1%

1,476

1,639

-10.0%

Chubu

1,456

5.4%

150

153

-1.7%

241

257-6.3%

Kansai2,2278.2%

161

194-16.8%

290

367

-20.9%

Kyushu

1,649

6.1%

157174

-9.8%

252

282

-10.5%

Hokkaido

1,479

5.4%

243

257

-5.5%

463

485

-4.6%

Other domestic

2,181

8.0%

518

456 +13.7%

718

656

+9.4%

Domestic Hotel – Subtotal

18,951

69.7%

1,990

2,079

-4.3%

3,442

3,688

-6.7%

Residential

5,098

18.7%

300

299

+0.5%

598

595

+0.5%

Commercial

368

1.4%

3130

+1.5%

62

61

+0.8%

Domestic Asset- Subtotal

24,417

89.8%

2,322

2,410

-3.6%

4,103

4,346

-5.6%

Overseas

2,782

10.2%

148

151

-2.4%

450

438

+2.7%

Total27,200 100.0%

2,470

2,561-3.6%

4,553

4,785-4.8%

Post-offering (148 properties)
2018 Simulated

NOI1,2 (JPY million)

NOI13August(JPYmillion)

Ratio

2019

2018

Cumulative (July-August)
YoY
Change2019

2018

YoY
ChangeTokyo 23 Wards

6,450

21.6%

452

522

-13.4%

911

1,051-13.3%

Greater Tokyo (ex. Tokyo 23 Wards)

3,635

12.2%

318

335

-5.1%

586

611

-4.0%

Greater Tokyo - Subtotal

10,086

33.8%

770

857

-10.1%

1,498

1,662-9.9%

Chubu

2,857

9.6%

333

338

-1.6%

525

546-3.9%

Kansai

2,227

7.5%

161

194-16.8%

290367-20.9%

Kyushu

2,406

8.1%

299

360

-16.9%

501

586-14.4%

Hokkaido

3,179

10.7%

565

577

-2.1%

1,098

1,116

-1.7%

Other domestic

2,363

7.9%

544

479 +13.6%

758

693

+9.3%

Domestic Hotel – Subtotal

23,119

77.5%

2,675

2,808

-4.7%

4,672

4,974

-6.1%

Residential

3,555

11.9%

300

299

+0.5%

598

595

+0.5%

Commercial

368

1.2%

3130

+1.5%

6261

+0.8%

Domestic Asset- Subtotal

27,043

90.7%

3,007

3,138-4.2%

5,334

5,632-5.3%

Overseas

2,782

9.3%

148151-2.4%450438

+2.7%

Total

29,826 100.0%

3,155

3,290-4.1%

5,784

6,071

-4.7%

(Note 1) Based on all properties held as of the end of August 2019, excluding (i) 9 hotels with fixed-rent lease agreements and (ii)
D70 Hotel MyStays Nagoya Nishiki and D75 Hotel MyStays Sapporo Susukino which do not have comparable performance
figure for the previous year. 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, D39Comfort Hotel Kurosaki, D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubame-Sanjo, D42 Comfort Hotel Kitami,
and D48 Takamatsu Tokyu REI Hotel. NOI includes a simulated amount of dividend income from Kingdom TMK (the“TMK”) that owns Sheraton Grande Tokyo Bay Hotel as an underlying asset. The fiscal periods of the TMK are semiThis English language notice is a translation of the Japanese-language notice released on September 25, 2019 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.

4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 such as operating expense of the TMK and the interest of debt
(calculated dividing the budget of the TMK for the fiscal period that includes the relevant month by the number of months
in such fiscal period) from (ii) NOI based on the performance of Sheraton Grande Tokyo Bay Hotel in the month which isthree months before the target month for this performance disclosure and multiplied by INV’s ownership ratio of thepreferred equity interest in the TMK (49.0%). The revenue from the Cayman Hotels is calculated at the exchange rateof US$1 to ¥110, which is the exchange rate fixed by the acquisition of puts and selling calls, covering approximately 85%
of expected cash flow through December 31, 2020. Furthermore, NOI is provisional figure and subject to change when
it is determined at financial closing; hereinafter the same.
(Note 2) NOI figures before acquisition by INV is based on the data obtained from third-parties including previous owners;
hereinafter the same.
(Note 3) Based on 71 domestic hotel properties managed by MyStays Hotel Management Co., Ltd. or its subsidiary、out of the 82
domestic hotel properties held by INV as of the end of August 2019.
(Note 4) Based on 71 hotel properties; of the 82 domestic hotel properties (including Sheraton Grande Tokyo Bay Hotel, theunderlying asset of preferred equity interest held by INV) held as of the end of July 2019, (i) 9 hotels with fixed-rent leaseagreements and (ii) (D70 Hotel MyStays Nagoya Nishiki and D75 Hotel MyStays Sapporo Susukino which do not havecomparable performance figure for the previous year are excluded.
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 other than NOI in the table above are based on the figures for August
2019; hereinafter the same.
(Note 5) Based on 55 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 August 2019, 9 hotels with fixed-rent leaseagreements are excluded.
(Note 6) Based on 62 properties held as of the beginning of July 2019.
(Note 7) NOI excludes one-off insurance-related revenues and expenses, as well as expenses required to detach trust beneficiaryinterest from an integrated trust account.
(Note 8) “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 9) “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 10) “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 11) Gross Revenue of Sheraton Grande Tokyo Bay Hotel used in the table is the whole gross revenue of such hotel, regardlessof INV’s ownership ratio of the preferred equity interest in the TMK (49.0%)(Note 12) 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 13) Based on either (i) 130 properties owned by INV as of the beginning of July 2019, or (ii) 148 properties owned by INV asof the end of July 2019, assuming all properties were owned since the beginning of 2018. Includes the dividends frompreferred equity interest of TMK that owns Sheraton Grande Tokyo Bay Hotel and estimated TK dividend backed by twoCayman hotels, assuming these dividends contributed throughout the June 2018 fiscal period and the December 2018
fiscal period of INV. Actual results for the pre-acquisition period of the properties acquired in 2018 are based on actual
results provided by sellers. The revenue from the Cayman Hotels is calculated at the exchange rate of US$1 to ¥110,which is the exchange rate fixed by the acquisition of puts and selling calls, covering approximately 85% of expected cash
flow through December 31, 2020.
(Note 14) Based on properties held as of the beginning of July 2019, excluding 9 hotels with fixed-rent lease agreements.
(Note 15) 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 16) For the details of performance for each asset, please visit INV’s website:
http://www.invincible-inv.co.jp/eng/cms/review.html

This English language notice is a translation of the Japanese-language notice released on September 25, 2019 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.

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

This English language notice is a translation of the Japanese-language notice released on September 25, 2019 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.

6