[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
December 25, 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 November 2023
Invincible Investment Corporation (“INV”) hereby announces its monthly performance.
1. Overall Performance of the Entire Portfolio
The hotel portfolio performance continues to show a recovery trend. ADR for both domestic
and overseas hotels continue to exceed the same month in 2019, absorbing the costincreases. The overall portfolio NOI1,2 for November 2023 increased by 28.1% year-overyear to JPY 2.5 billion, or 5.2% above the same portfolio’s NOI in November 2019 prior tothe COVID-19 pandemic, and decreased by 0.9% on a cumulative basis from July toNovember 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 November 2023, theoccupancy rate increased by 2.7pt, ADR increased by 19.9%, and RevPAR increased by
24.0% compared to November 2022, while the occupancy rate decreased by 5.8pt, ADR
increased by 23.6%, and RevPAR increased by 15.4% compared to November 2019. The
NOI in November 2023 increased by 35.6% compared to November 2022, or increased by0.4% compared to November 2019.
During the month of November 2023, ADR and RevPAR both exceeded the same month in2022 in all areas due to the increase in demand from domestic tourism during the autumn
tourist season combined with the increase in demand from inbound tourism. RevPAR for
the hotels especially in the Tokyo 23 Wards exceeded the same month in 2022 by more thanThis English language notice is a translation of the Japanese-language notice released on December 25, 2023 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60%, driven by the current strong inbound demand.
The total number of visitor arrivals to Japan (estimated) announced by the Japan National
Tourism Organization (JNTO) for November 2023 reached 2.44 million, which was the sameas the previous month and the same level as November 2019.
We are forecasting that the December 2023 RevPAR will be approximately 9.1% higher thanthe December 2022 figure, or approximately 23.8% higher than the December 2019 figure
as of today.
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

88.7%

11,47010,172

Greater Tokyo (ex. Tokyo 23 Wards)

87.3%

15,745

13,750

Chubu

82.5%

12,226

10,082Kansai76.5%

12,0349,204

Kyushu84.5%

12,634

10,676

Hokkaido

64.2%

9,277

5,956

Other domestic

82.9%

16,281

13,504

Total

82.0%

12,696

10,412(2) Cayman Hotels
The occupancy rate for the Cayman Hotels (Westin Grand Cayman Seven Mile Beach &Spa and Sunshine Suites Resort) in November 2023 was 81.8%, an increase of 3.5pt
compared to the same month of the previous year, or 0.8pt lower than the November 2019
figure. ADR was USD 440, or 46.0% higher than the November 2019 figure and RevPAR
was USD 359, or 44.6% higher than the November 2019 figure, both ADR and RevPAR
continued to exceed the 2019 level. The NOI1 for November 2023 increased by 12.5% toJPY 375 million, or 48.6% higher than the November 2019 figure.
We are forecasting that the occupancy rate for the Cayman Hotels in December 2023 will
be 74.2%, or 11.0pt lower than the December 2019 figure, ADR will be USD 677, or 19.0%
higher than the December 2019 figure, and RevPAR will be USD 502, or 3.7% higher thanthe December 2019 figure as of today.
3. Residential Assets Overview
The residential portfolio7 in-place occupancy rate as of the end of November 2023 remained
flat at 96.0% compared to the end of the previous month, and decreased by 0.4pt year-overyear.
The average in-place rent per tsubo slightly increased by 0.8% year-over-year. The NOI8
This English language notice is a translation of the Japanese-language notice released on December 25, 2023 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

for the residential portfolio in November 2023 increased by 0.7% year-over-year.
Rents, compared with those based on the immediately preceding leases, increased by 1.2%
for new leases, increased by 1.3% for renewal leases, and increased by 1.3% for new andrenewal leases combined for November 2023. INV achieved a rent increase on 48.6% oflease contract renewals, and the retention rate for the existing tenants was 75.1% for theNovember 2023.
4. Performance* The “Difference” in the table below indicates the increase / decrease in value for the monthof November 2023 or cumulative figures from July to November 2023 compared to thecorresponding value in 2022 or 2019. Hereinafter the same.
(1) 75 Domestic Hotel Properties3
Nov.
2022

Difference

82.0%

79.3%

+2.7pt87.8%-5.8pt

83.4%

75.0%

12,696

10,585+19.9%

10,268 +23.6%

12,6109,916 +27.2%

10,794 +16.8%

10,4128,399+24.0%

9,020 +15.4%

10,5207,436 +41.5%

9,627

+9.3%

6,708

5,500

+22.0%

6,163

33,25624,228 +37.3%

31,208

+6.6%

Nov.
2023

Nov.
2022

Difference

81.8%

78.3%

+3.5pt

440

404

359
9,204

Occupancy
Rate4
ADR(JPY)5
RevPAR(JPY)6Nov.

Nov.
2023

Gross Revenue(JPY million)92019

Difference+8.8%

Jul.- Nov. Jul.- Nov.
Jul.- Nov.
Difference
Difference
2023
2022
2019+8.4pt

89.2%-5.8pt(2) Cayman Hotels

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

Nov.
2019

Difference

82.6%

Jul.- Nov. Jul.- Nov.
Jul.- Nov.
Difference
Difference
2023
2022
2019

-0.8pt

62.2%

51.5%

+10.7pt

69.7%-7.5pt+8.9%

301 +46.0%

357

332+7.7%

268 +33.5%

316+13.7%

249 +44.6%

222

171 +30.1%

187 +19.1%

7,914+16.3%

6,466 +42.3%

31,211

24,903 +25.3%

25,588 +22.0%(3) 41 Residential Properties7

Occupancy Rate
Rent per Tsubo(JPY)

End ofNov. 2023

End ofNov. 2022

Difference

Jul.- Nov.
2023

Jul.- Nov.
2022

Difference

96.0%

96.4%

-0.4pt

96.0%

96.3%

-0.3pt

9,227

9,153

+0.8%

9,213

9,166

+0.5%

This English language notice is a translation of the Japanese-language notice released on December 25, 2023 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5. Portfolio NOI1,2,8* For 73 hotels operated by main tenant among INV’s 75 domestic hotels, variable rent wascalculated considering these 73 hotels as one unit during the Covid-19 pandemic period,
which is different from the method used in 2023. As such, comparison of NOI with previous
year (2022 vs. 2023) may not accurately reflect the recovery from the Covid-19 pandemic atproperty/area level is some cases.
(JPY Million)

Nov.
2023

Nov.
2022

Difference

Nov.
2019

Difference

Jul.- Nov. Jul.- Nov.
Jul.- Nov.
Difference
Difference
2023
2022
2019

Tokyo 23 WardsGreater Tokyo

633

367

+72.6%

526+20.3%

2,667

276

232

+18.8%

389-29.1%

1,145

Greater Tokyo Subtotal
Chubu

909

599

+51.7%

916

-0.7%

3,812

296

183

+61.5%

276

+7.3%

1,264

Kansai202

136+48.4%

172+17.8%

719

Kyushu

232

226

+2.9%

187

+24.5%

1,138

871

Hokkaido

51101-49.6%

117-56.2%

1,794

Other domestic

239

177

+35.1%

257-6.7%

Domestic Hotel- Subtotal

1,933

1,425

+35.6%

1,926

Residential

186

184

+0.7%

Commercial

1212

Domestic Asset-Subtotal

2,132

OverseasTotal(ex. Tokyo 23 Wards)

1,035 +157.6%

2,381+12.0%+35.6%

1,743-34.3%

1,880 +102.8%

4,124

-7.6%

+75.6%

1,265

-0.1%

333 +115.8%

708

+1.5%

+30.6%

1,027+10.9%

942+90.4%

1,701

+5.4%

1,445

1,227

+17.8%

1,532

-5.7%

+0.4%

10,175

5,975+70.3%

10,360

-1.8%

191

-2.8%

932

932

-0.1%

929

+0.3%

-0.0%

12-0.3%

64

64

-0.1%

64

-0.5%

1,623

+31.3%

2,130

+0.1%

11,172

6,973+60.2%

11,355

-1.6%

375

333

+12.5%

252+48.6%

829

676+22.6%

756

+9.6%

2,507

1,957

+28.1%

2,383

+5.2%

12,0027,650+56.9%

12,112

-0.9%

844

720

(Note 1) Based on all properties held as of the beginning of the December 2023 fiscal period, excluding nine hotels with fixed-rentlease agreements. Nine 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. Of nine hotels that are excluded, “D48 Takamatsu Tokyu REI Hotel” has changed
its lease agreement with its major tenant, TOKYU HOTELS CO., LTD., to “fixed rent plus variable rent” effective April 25,
2023, but in consideration of the continuity of disclosed data and other factors, the hotel will continue to be treated as ahotel with fixed-rent lease agreement for the time being, and will remain excluded. NOI includes a simulated amount ofdividend income from Kingdom TMK (the “TMK”) that owns Sheraton Grande Tokyo Bay Hotel as an underlying 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 theTMK 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 is three months before the target month for this performance disclosure andmultiplied by INV’s ownership ratio of the preferred equity interest in the TMK (49.0%). However, the TMK has acumulative loss due to the decline in profits and has been in a situation where it cannot pay dividends. The TMK has
temporarily been extending its six-month accounting period to a 12-month accounting period in order to curb the costs ofsettlement of accounts and did not carry out the six-month settlement in INV’s fiscal period ended December 2022. The
TMK plans to restore to the original six-month 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 cumulativeloss 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 aresubject 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 beginning of the December 2023 fiscal period,nine hotels with fixed-rent lease agreements are excluded. As for Sheraton Grande Tokyo Bay hotel, NOI is based onThis English language notice is a translation of the Japanese-language notice released on December 25, 2023 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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, inconsideration of seasonality, figures other 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 beginning of the December 2023 fiscal period; 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) 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 December 25, 2023 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