[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
March 25, 2022
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 February 2022
Invincible Investment Corporation (“INV”) hereby announces its monthly performance.
1. Overall Performance of the Entire Portfolio
Similar to the previous month, both the domestic and overseas hotel portfolios for February
2022 were heavily affected by the coronavirus (COVID-19). The occupancy rate of thedomestic hotels for February 2022 was 51.1%, which increased by 20.9pt year-over-year.
The residential occupancy rate for the end of February 2022 was 95.7%, which increased
by 0.4pt compared to the end of the previous month.
As announced in “Notice concerning Conclusion of Memorandum of Understanding toAmend the Fixed-term Building Lease and Property Management Agreement pertaining to
the rent conditions for the period from January to June, 2022 with Major Tenant” dated March
11, 2022, INV entered into a Memorandum of Understanding (“MOU”) to amend each fixedterm building lease and property management agreement pertaining to the rent conditions
for the period from January 1, 2022 to June 30, 2022 for the 73 hotels operated by INV's
main tenant, MyStays Hotel Management Co., Ltd. and its affiliates (the “MHM Group”).
Under the MOU, we have changed the rent calculation period to six months from January tothe end of June 2022, and determined the fixed rent amount for the six months and defined
the variable rent calculation method. For details of the MOU, please refer to the above
press release.
As for the 73 hotels that are operated by INV's main tenant, the MHM Group, the amount of
the employment adjustment subsidies for February 2022 has not been determined as oftoday. As a result, GOP1 and NOI2,3 for February 2022 have not been determined yet.
This English language notice is a translation of the Japanese-language notice released on March 25, 2022 and was prepared solely for the convenience of, and referenceby, 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.

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The following are the details by segment.
2. Hotel Assets Overview(1) Domestic Hotels
As for the domestic hotel portfolio4 performance for the month of February 2022, theoccupancy rate increased by 20.9pt, ADR decreased by 2.0%, and RevPAR increased by
65.7% compared to February 2021 while the occupancy rate decreased by 36.8pt, ADR
decreased by 34.3%, and RevPAR decreased by 61.8% compared to February 2019 prior
to the COVID-19 pandemic.
In February 2022, hotel demand was sluggish due to the continued spread of infections (thesixth wave) from a new COVID-19 variant (Omicron variant) and the impact of quasi-Stateof Emergency declarations declared in more than 70% of all prefectures. However, highoccupancy rates of 80-90% were recorded for the hotels that were able to capture groupaccommodation and business demand.
In March 2022, the sixth wave has peaked out and as of today, we are forecasting that March2022 RevPAR will be approximately 55% higher than March 2021, or approximately 50%
lower than the March 2019 figure. With the lifting of quasi-State of Emergency declarations
on March 21, hotel demand for spring break and onwards is expected to improve.
Table below shows the KPIs for each area of the 75 domestic hotels portfolio4.
AreaOccupancy Rate5

ADR (JPY)6

RevPAR (JPY)7Tokyo 23 Wards

53.0%

5,067

2,685

Greater Tokyo (ex. Tokyo 23 Wards)

64.4%

8,899

5,729

Chubu

48.6%

5,585

2,715

Kansai

49.5%

4,030

1,995

Kyushu

50.9%

5,793

2,947

Hokkaido

36.6%

7,007

2,563

Other domestic

45.9%

10,446

4,795

Total

51.1%

6,588

3,369

(2) Cayman Hotels
The occupancy rate for the Cayman Hotels (Westin Grand Cayman Seven Mile Beach &Spa (“Westin”) and Sunshine Suites Resort ("Sunshine")) in February 2022 was 27.3%, anincrease of 16.4pt compared to the same month of the previous year when only Sunshine
was open. The NOI for February 2022 was JPY 69 million, an increase from JPY -54 million
for February 2021.
In the Cayman Islands, the number of tourists from the United States increased from midThis English language notice is a translation of the Japanese-language notice released on March 25, 2022 and was prepared solely for the convenience of, and referenceby, 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February 2022, due to the relaxation of epidemic prevention measures for tourists and theresumption of flight service to the Cayman Islands by major US airlines. The occupancy
rate for the Cayman Hotels has increased from 22.3% in January to 27.3% in February andRevPAR significantly increased from USD 51 to USD 107. Individually, Westin's occupancy
rate increased from 8.3% to 22.0% and RevPAR increased from USD 27 to USD 113.
Sunshine's occupancy rate decreased from 59.0% to 41.1% and RevPAR decreased fromUSD 115 to USD 94 due to a decrease in self-quarantine demand. Since February 2022,
only 15 of the 131 rooms in Sunshine have been used as self-quarantine facilities under acontract with the Cayman Islands government, which will terminate at the end of April.
Thereafter, the entire property will be used as a hotel.
In March 2022, the number of airline destinations and flight frequency has increased, andsome fights were full. The number of tourists is increasing, and we are forecasting that theoccupancy rate for the Cayman Hotels in March 2022 will be 39%, an increase of 31pt
compared to the same month of the previous year, and that RevPAR will be USD 168.
3. Residential Assets Overview
The residential portfolio8 in-place occupancy rate as of the end of February 2022 was 95.7%,
which increased by 0.4pt compared to the end of the previous month and was flat year-overyear.
The average in-place rent per tsubo decreased by 0.6% year-over-year. The NOI9 for theresidential portfolio in February 2022 decreased by 3.6% year-over-year and decreased by
1.5%year-over-year on a cumulative basis for the June 2022 fiscal period.
Rents, compared with those based on the immediately preceding leases, decreased by 2.4%
for new leases, increased by 1.4% for renewal leases, and decreased by 0.6% for new andrenewal leases combined for February 2022. INV achieved a rent increase on 53.6% oflease contract renewals for February 2022. The retention rate for the existing tenants was
78.4% for February 2022.
4. Performance* The “Difference” in the table below indicates the increase / decrease in value for the monthof February 2022 or cumulative figures from January to June 2022 compared to thecorresponding value in 2021 or 2019. Hereinafter the same.
(1) 75 Domestic Hotel Properties4

Occupancy
Rate5
ADR(JPY)6

Feb.

Feb.
2022

Feb.
2021

Difference

51.1%

30.2%

+20.9t87.9%-36.8pt

49.8%

31.1%

+18.6pt

84.8%-35.0pt

6,588

6,722

-2.0%

10,021-34.3%

6,885

6,590

+4.5%

9,414

-26.9%

2019

Difference

Jan.-Jun. Jan.-Jun.
Jan.-Jun.
Difference
Difference
2022
2021
2019

This English language notice is a translation of the Japanese-language notice released on March 25, 2022 and was prepared solely for the convenience of, and referenceby, 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.

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RevPAR

3,369

2,033 +65.7%

8,811-61.8%

3,426

2,051 +67.0%

7,982-57.1%

2,041

1,402 +45.5%

5,125-60.2%

4,502

2,966 +51.8%

9,962-54.8%

Feb.
2022

Feb.
2021

Difference

2019

27.3%

10.9%

+16.4pt

92.9%-65.6pt

24.7%

394

171 +130.7%

519-24.1%

107

19 +477.7%

482

2,860

749 +281.5%

10,592(JPY)7
Gross Revenue(JPY million)10(2) Cayman Hotels

Occupancy
Rate5ADR(USD)6
RevPAR(USD)7Gross Revenue(USD thousand)

Feb.

Difference

Jan.-Jun. Jan.-Jun.
Jan.-Jun.
Difference
Difference
2022
2021
2019
8.6%

+16.0pt

90.6%-65.9pt316

173 +83.1%

482-34.4%-77.7%

78

15 +423.7%

437-82.1%-73.0%

4,559

1,258 +262.2%

20,081-77.3%(3) 41 Residential Properties8

Occupancy Rate
Rent per Tsubo(JPY)

End of Feb.
2022

End ofFeb. 2021

Difference

Jan.-Jun.
2022

Jan.-Jun.
2021

Difference

95.7%

95.7%

-95.5%

95.4%+0.1pt

9,085

9,143

-0.6%

9,119

9,147

-0.3%

Difference

Feb.
2019

5. Portfolio NOI2,3,9(JPY Million)
Tokyo 23 Wards
Greater TokyoFeb.
2022

Feb.
2021

Difference

Jan.-Jun. Jan.-Jun.
Jan.-Jun.
Difference
Difference
2022
2021
2019

-

24-

400-

-

45-

778

-

-

42-

311

-

-

79-

632

-

Greater Tokyo Subtotal

-

66-

712-

-

125-

1,411

-

Chubu

-

-1-

130-

-

-4-

224

-

Kansai

-

7-

116-

-

14-

216

-

Kyushu

-

8-

156

-

-

17-

292

-

Hokkaido-

27-

385-

-

36-

544

-

Other domestic--8-

70---19-

47-

Domestic Hotel- Subtotal-

99-

1,572-

-

169

-

2,736

-

Residential

179

186

-3.6%

179

∔0.4%

364

370

-1.5%

359

∔1.4%

Commercial

1212+0.1%

12-0.1%2525+0.1%

25-0.1%-299-

1,765-

-

565-

3,122

-

Overseas69-54-

565-87.7%

55-135-

1,046-94.7%

Total

-

244-

2,331-

-

430

-

4,168

-

(ex. Tokyo 23 Wards)

Domestic AssetSubtotal(Note 1) GOP means the gross operating profit, and is the amount remaining after deducting costs of hotel operations (theThis English language notice is a translation of the Japanese-language notice released on March 25, 2022 and was prepared solely for the convenience of, and referenceby, 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.

4personnel, utility and advertising expenses and other expenses) and the management services fee to operators (if any)
from the hotel’s revenues.
(Note 2) Based on all properties held as of the end of February 2022, excluding 9 hotels with fixed-rent lease agreements. 9hotels 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. 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 semi-annual periods from April 1 toSeptember 30 and from October 1 to March 31 every year, and INV will receive the dividend within three months from theend 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 bydeducting (i) simulated expenses such as operating expense of the TMK and the interest of debt (calculated dividing thebudget 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 and multiplied by INV’s ownership ratio of the preferred equity interest in
the TMK (49.0%). However, as announced in “Notice concerning Revision of Forecast of Financial Results andDistribution for the 37th Fiscal Period Ending December 2021” dated December 8, 2021, the TMK has a cumulative loss
due to the decline in profits and has been in a situation where it cannot pay dividends. The TMK does not carry out its
settlement of accounts in INV’s fiscal period ending December 2021 in order to curb the costs of such settlement and has
temporarily extended its six-month accounting period to a 12-month accounting period. The TMK plans to restore to theoriginal six-month settlement once the cumulative loss is resolved and TMK is expected to be able to resume payment ofdividends. 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 3) NOI figures before acquisition by INV is based on the data obtained from third-parties including previous owners, and are
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 4) 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 February 2022, 9 hotels with fixed-rentlease agreements are excluded. As for Sheraton Grande Tokyo Bay hotel, NOI is based on the figure for the monthwhich is three months prior to the target month for this performance disclosure as INV will receive the dividend from theTMK within three months of each fiscal period end for the TMK as described above. However, in consideration ofseasonality, figures other than NOI in the table above are based on the figures for February 2022; hereinafter the same.
(Note 5) “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 6) “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 7) “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 8) Based on 41 properties held by INV as of the end of February 2022; hereinafter the same.
(Note 9) NOI excludes one-off insurance-related revenues and expenses; hereinafter the same.
(Note 10) Gross Revenue includes the amount of employment adjustment subsidies to be received by the hotel operators, which
require a certain period of time to confirm. Therefore, the amount of Gross Revenue is subject to change retroactively inthe future when the amount of employment adjustment subsidies is confirmed. Gross Revenue of Sheraton GrandeTokyo Bay Hotel used in the table is the whole gross revenue of such hotel, regardless of INV’s ownership ratio of thepreferred equity interest in the TMK (49.0%).
(Note 11) Percentages are rounded to one decimal place. ADR, RevPAR and Rent per Tsubo are rounded to the nearest yen andGross Revenue is rounded down to the nearest million yen.
(Note 12) Cumulative occupancy rate for residential portfolio is calculated by dividing the sum of total leased area by the sum of totalleasable area at the end of each month and the percentages are rounded to one decimal place. Cumulative rent pertsubo 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 13) 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 March 25, 2022 and was prepared solely for the convenience of, and referenceby, 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.

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