[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
July 26, 2023
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, President & CEO
Contact: Jun Komo
General Manager of Planning Department(Tel. +81-3-5411-2731)

Performance Update for June 2023
Invincible Investment Corporation (“INV”) hereby announces its monthly performance.
1. Overall Performance of the Entire Portfolio
The domestic hotel portfolio performance continues to show a recovery trend. Theoverseas hotel portfolio performance has exceeded the level prior to the COVID-19
pandemic in ADR, RevPAR, GOP, and NOI on a US dollar basis since November 2022.
The residential portfolio has remained stable. The overall portfolio NOI1,2 for June 2023
increased by 126.9% year-over-year to JPY 1.9 billion, or 11.2% below the same portfolio’s
NOI in June 2019 prior to the COVID-19 pandemic, and decreased by 8.5% on a cumulativebasis for the June 2023 fiscal period (January to June 2023) compared to the same period
in 2019.
The following are the details by segment.
2. Hotel Assets Overview(1) Domestic Hotels
As for the domestic hotel portfolio3 performance for the month of June 2023, the occupancy
rate increased by 13.6pt, ADR increased by 39.6%, and RevPAR increased by 67.4%
compared to June 2022, while the occupancy rate decreased by 6.2pt, ADR increased by
12.3%, and RevPAR increased by 4.4% compared to June 2019. The NOI in June 2023
increased by 171.5% compared to June 2022, or decreased by 13.6% compared to June
2019. The NOI on a cumulative basis for the June 2023 fiscal period (January to June 2023)
increased by 271.7%, or 14.2% below the figure in the same period in 2019.

This English language notice is a translation of the Japanese-language notice released on July 26, 2023 and was prepared solely for the convenience 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 or completeness 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During the month of June 2023, domestic demand and inbound demand continued to recover,and the occupancy rate reached 81.7%. The total number of visitor arrivals to Japan(estimated) announced by the Japan National Tourism Organization (JNTO) for June 2023
was 2.07 million (28.0% below the June 2019 level), showing a steady recovery. On theother hand, the number of visitors from China remains low at 76.3% below the June 2019
level.
We are forecasting that the July 2023 RevPAR will be approximately 60.9% higher than theJuly 2022 figure, or approximately 8.3% higher than the July 2019 figure as of today.
RevPAR is expected to continue to exceed the 2019 level through ADR growth, while theoccupancy rate will be below the 2019 level.
Table below shows the KPIs for each area of the 75 domestic hotels portfolio3.
Area

Occupancy Rate4

ADR (JPY)5

RevPAR (JPY)6Tokyo 23 Wards

86.5%

9,267

8,014

Greater Tokyo (ex. Tokyo 23 Wards)

79.9%

13,07910,452

Chubu

76.4%

8,144

6,225

Kansai

73.6%

8,274

6,089

Kyushu81.5%

10,6998,721

Hokkaido

85.0%

12,166

10,336

Other domestic

82.2%

13,04010,725

Total

81.7%

10,636

8,694(2) Cayman Hotels
The occupancy rate for the Cayman Hotels (Westin Grand Cayman Seven Mile Beach &Spa and Sunshine Suites Resort) in June 2023 was 68.3%, an increase of 18.7pt comparedto the same month of the previous year, or 17.2pt lower than the June 2019 figure. ADR
was USD 430, or 41.9% higher than the June 2019 figure. RevPAR was USD 293, or
13.4% higher than the June 2019 figure. The NOI1 for June 2023 was JPY 274 million,
100.6% above the NOI in June 2022, or 5.9% below the NOI in June 2019. The NOI on acumulative basis from January to June 2023 increased by 287.0%, 9.7% above the NOI inthe same period in 2019.
We are forecasting that the occupancy rate for the Cayman Hotels in July 2023 will be 70.3%,
or 16.6pt lower than the July 2019 figure, ADR will be USD 395, or 29.8% higher than theJuly 2019 figure, and RevPAR will be USD 277, or 4.9% higher than the July 2019 figure asof today.
3. Residential Assets Overview
The residential portfolio7 in-place occupancy rate as of the end of June 2023 was 95.9%,
which decreased by 0.4pt compared to the end of the previous month, and decreased byThis English language notice is a translation of the Japanese-language notice released on July 26, 2023 and was prepared solely for the convenience 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 aregiven regarding the accuracy or completeness 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

0.1pt year-over-year.
The average in-place rent per tsubo increased by 0.8% year-over-year. The NOI8 for theresidential portfolio in June 2023 decreased by 0.4% year-over-year and increased by 0.8%
year-over-year on a cumulative basis for the June 2023 fiscal period (January to June 2023).
Rents, compared with those based on the immediately preceding leases, decreased by 0.4%
for new leases, increased by 1.8% for renewal leases, and increased by 1.0% for new andrenewal leases combined for the June 2023 fiscal period. INV achieved a rent increase on
43.7% of lease contract renewals, and the retention rate for the existing tenants was 74.3%
for the June 2023 fiscal period.
4. Performance* The “Difference” in the table below indicates the increase / decrease in value for the monthof June 2023 or cumulative figures from January to June 2023 compared to thecorresponding value in 2022 or 2019. Hereinafter the same.
(1) 75 Domestic Hotel Properties3

Occupancy
Rate4
ADR(JPY)5
RevPAR(JPY)6Gross Revenue(JPY million)9June
2023

June
2022

Difference

81.7%

68.2%

+13.6pt

10,636June
2019

Difference

Jan.-Jun. Jan.-Jun.
Jan.-Jun.
Difference
Difference
2023
2022
2019

-6.2pt

80.7%

61.5%

+19.2pt

86.8%-6.1pt

7,617 +39.6%

9,468 +12.3%

10,8687,504 +44.8%

10,109

+7.5%

8,694

5,192 +67.4%

8,323

+4.4%

8,772

4,614 +90.1%

8,772

+0.0%

5,532

3,582 +54.5%

5,492

+0.7%

32,806

19,031 +72.4%

33,809

-3.0%

June
2023

June
2022

Difference

June

68.3%

49.6%

+18.7pt

87.9%(2) Cayman Hotels

Occupancy
Rate4
ADR(USD)5
RevPAR(USD)6Gross Revenue(USD thousand)

2019
85.5%

Difference

Jan.-Jun. Jan.-Jun.
Jan.-Jun.
Difference
Difference
2023
2022
2019

-17.2pt

77.3%

39.7%

+37.6pt

89.3%-12.0pt

430

341 +25.8%

303 +41.9%

537

370 +45.1%

416 +29.2%

293

169 +73.3%

259 +13.4%

415

147 +182.2%

371+11.8%

7,694

5,115 +50.4%+6.2%

62,40325,488 +144.8%

56,050+11.3%

7,248

This English language notice is a translation of the Japanese-language notice released on July 26, 2023 and was prepared solely for the convenience 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 aregiven regarding the accuracy or completeness 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(3) 41 Residential Properties7
End ofJun. 2023

End ofJun. 2022

Difference

Jan.- Jun.
2023

Jan.- Jun.
2022

Difference

Occupancy Rate

95.9%

96.0%

-0.1pt

96.5%

96.0%

+0.5ptRent per Tsubo
(JPY)

9,220

9,147

+0.8%

9,189

9,128

+0.7%

June
2019

Difference

5. Portfolio NOI1,2,8(JPY Million)
Tokyo 23 Wards
Greater Tokyo

June
2023

June
2022

Difference

Jan.Jun.
2023

Jan.Jun.
2022

Difference

Jan.Jun.
2019Difference454

100 +351.2%

429

+5.8%

2,835

434 +553.3%

3,025

-6.3%

175

121

+44.9%

312-43.9%

1,234

600 +105.5%

2,003-38.4%

Greater Tokyo Subtotal

630

222 +184.0%

742-15.1%

4,070

1,034 +293.3%

5,029-19.1%

Chubu

123

70

+75.6%

168-26.8%

1,036

307 +237.6%

1,247-16.9%

Kansai84

17 +376.0%

129-34.2%

784

85 +823.3%

984-20.3%

Kyushu163

84+93.1%

118+38.0%

1,239

384 +222.5%

1,109+11.7%

Hokkaido375

45 +732.2%

418-10.2%

1,249

193 +544.3%

1,537-18.8%

Other domestic

122

112+8.5%

158-23.0%

922+85.4%

937-1.6%

Domestic Hotel- Subtotal

1,500

552 +171.5%

1,736-13.6%

9,303

2,502 +271.7%

10,846-14.2%

Residential

187

187-0.4%

184

+1.5%

1,121

1,113

+0.8%

1,100

+1.9%

Commercial

12-6-12-0.7%

77

57+34.4%

77-0.3%

Domestic Asset-Subtotal

1,700

733 +131.8%

1,933-12.0%

10,502

3,673 +185.9%

12,024-12.7%

Overseas274

136 +100.6%

291-5.9%

3,041

785 +287.0%

2,772+9.7%

Total

1,974

870 +126.9%

2,224-11.2%

13,5434,459 +203.7%

14,797-8.5%(ex. Tokyo 23 Wards)

497(Note 1) Based on all properties held as of the end of June 2023, excluding nine hotels with fixed-rent lease agreements. Ninehotels 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. Of nine hotels that are excluded, “D48 Takamatsu Tokyu REI Hotel” has changed its lease agreement withits major tenant, TOKYU HOTELS CO., LTD., to “fixed rent plus variable rent” effective April 25, 2023, but in considerationof the continuity of disclosed data and other factors, the hotel will continue to be treated as a hotel with fixed-rent leaseagreement for the time being, and will remain excluded. NOI includes a simulated amount of dividend income fromKingdom TMK (the “TMK”) that owns Sheraton Grande Tokyo Bay Hotel as an underlying asset. The fiscal periods ofthe 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 notreceive a dividend from the TMK on a monthly basis, the amount of dividend INV receives from the TMK for each monthis a simulated figure, which is calculated by deducting (i) simulated expenses such as operating expense of the TMK andthe interest of debt (calculated dividing the budget of the TMK for the fiscal period that includes the relevant month by thenumber of months in such fiscal period) from (ii) NOI based on the performance of Sheraton Grande Tokyo Bay Hotel inthe 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%). However, the TMK has a cumulative loss due to the decline inprofits and has been in a situation where it cannot pay dividends. The TMK has temporarily been extending its six-monthaccounting period to a 12-month accounting period in order to curb the costs of settlement of accounts and did not carryout the six-month settlement in INV’s fiscal period ended December 2022. The TMK plans to restore to the original sixmonth settlement once the cumulative loss is resolved and the TMK is expected to be able to resume payment of dividends.
Since dividend income from the TMK is not recorded unless the cumulative loss is eliminated, a discrepancy may arise
between the simulated amount of dividend income and the dividend income from the TMK in the process of eliminating
the abovementioned cumulative loss. The revenue from the Cayman Hotels is calculated at the exchange rate of US$1
to ¥110. 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, and areThis English language notice is a translation of the Japanese-language notice released on July 26, 2023 and was prepared solely for the convenience 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 aregiven regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancybetween this translation and the Japanese original, the latter shall prevail in all respects.

4subject to change caused by the adjustments based on differences in accounting treatments, since it is difficult to adjust
them due to the timing even if the figures are based on actual performance; hereinafter the same.
(Note 3) Based on 75 hotel properties; of the 84 domestic hotel properties (including Sheraton Grande Tokyo Bay Hotel, theunderlying asset of preferred equity interest held by INV) held as of the end of June 2023, nine hotels with fixed-rent leaseagreements are excluded. As for Sheraton Grande Tokyo Bay hotel, NOI is based on the figure for the month which isthree 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, figuresother than NOI in the table above are based on the figures for June 2023; hereinafter the same.
(Note 4) “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 5) “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 6) “RevPAR,” or Revenues Per Available Room, is calculated by dividing the total room sales for a certain period by theaggregate number of rooms for the same period (rooms x number of days), and is the same as product of room occupancy
rate and ADR.
(Note 7) Based on 41 properties held by INV as of the end of June 2023; hereinafter the same.
(Note 8) NOI excludes one-off insurance-related revenues and expenses; hereinafter the same.
(Note 9) 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 10) Percentages are rounded to one decimal place. ADR, RevPAR and Rent per Tsubo are rounded to the nearest yen and
Gross Revenue is rounded down to the nearest million yen.
(Note 11) 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 sum of the total rental revenue including common area charges for each month by thesum of total leased area (tsubo) at the end of each month.
(Note 12) For the details of performance for each hotel asset, please visit INV’s website:
https://www.invincible-inv.co.jp/en/portfolio/hotel.html

Website of INV: https://www.invincible-inv.co.jp/en/

This English language notice is a translation of the Japanese-language notice released on July 26, 2023 and was prepared solely for the convenience 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 or completeness 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