[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
July 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 June 2022
Invincible Investment Corporation (“INV”) hereby announces its monthly performance.
1. Overall Performance of the Entire Portfolio
The overall portfolio NOI1,2 for June 2022 increased by 254.7% year-over-year and increased
by 235.2% year-over-year on a cumulative basis for the June 2022 fiscal period (fromJanuary to June). The overall portfolio NOI1,2 for June 2022 decreased by 60.7% comparedto June 2019 prior to the COVID-19 pandemic, and decreased by 69.8% on a cumulativebasis for the June 2022 fiscal period compared to the same period in 2019.
As announced in “Notice concerning Conclusion of Memorandum of Understanding toAmend the Fixed-term Building Lease and Property Management Agreement pertaining tothe rent conditions for the period from January to June, 2022 with Major Tenant” dated March11, 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 73 hotels owned by INV with INV’s
main tenant, MyStays Hotel Management Co., Ltd. and its affiliates (“MHM Group”). Underthe MOU, we have changed the rent payment conditions for the six months in terms of theamount of fixed rent payment and the variable rent calculation method. The rent to be paid
from MHM Group for the six months (January through June) will be fixed rent of JPY 0.90billion and variable rent of JPY 1.99 billion, totaling JPY 2.89 billion. This is equivalent toabout 58% of fixed rent under the original leasing agreements for the same period. As aresult, NOI of 73 hotels operated by MHM Group for the six months was JPY 2.33 billion.
For details on the MOU, please refer to the abovementioned press release.

This English language notice is a translation of the Japanese-language notice released on July 25, 2022 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.

1

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 2022, the occupancy
rate increased by 30.1pt, ADR increased by 20.5%, and RevPAR increased by 115.8%
compared to June 2021 while the occupancy rate decreased by 19.8pt, ADR decreased by
19.5%, and RevPAR decreased by 37.6% compared to June 2019 prior to the COVID-19pandemic.
In June 2022, the overall accommodation demand recovered due to tourism support
measures such as prefectural travel subsidy campaigns and an increase in domestic
business demand at some hotels. Similar to April and May, about half of INV’s hotels haverecorded occupancy rates of 70% or higher.
We are forecasting that July 2022 RevPAR will be approximately 70% higher than the July
2021 figure, or approximately 30% lower than the July 2019 figure as of today. Currently,
the number of new COVID-19 infections are on a sharp rise, but the overall occupancy rateis expected to reach the 70% level for the first time since February 2020 due to strong leisuredemand during the summer vacation.
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

63.5%

5,351

3,396

Greater Tokyo (ex. Tokyo 23 Wards)

71.2%

10,135

7,216

Chubu

67.2%

6,161

4,143

Kansai

63.9%

4,945

3,158

Kyushu

70.5%

7,481

5,277

Hokkaido

68.2%

8,515

5,808

Other domestic

81.5%

11,757

9,581

Total

68.2%

7,617

5,192(2) Cayman Hotels
The occupancy rate for the Cayman Hotels (Westin Grand Cayman Seven Mile Beach &Spa (“Westin”) and Sunshine Suites Resort ("Sunshine")) in June 2022 was 49.6%, anincrease of 40.7pt compared to the same month of the previous year due to a pickup ingroup reservations. ADR was USD 341, or 12.8% higher than June 2019 due to a sales
strategy that strives to reduce the amount of discounts. RevPAR was USD 169, or 34.6%
lower than the June 2019 figure. The NOI2 for June 2022 was JPY 136 million, an increase
from JPY -74 million for June 2021. The cumulative NOI2 for the June 2022 fiscal period
was JPY 785 million, a significant increase from JPY -463 million in the same period lastThis English language notice is a translation of the Japanese-language notice released on July 25, 2022 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.

2year.
We are forecasting that the occupancy rate for the Cayman Hotels in July 2022 will be around
49.6%, or 37.3pt lower than the July 2019 figure and that RevPAR will be around USD 169,
or 35.9% lower than the July 2019 figure as of today. From June 30, the pre-arrival testing
requirement for travelers to the Cayman Islands and a mandated requirement to wear masks
in indoor public areas have been lifted. Efforts are steadily underway for the next peakseason starting in late November.
3. Residential Assets Overview
The residential portfolio7 in-place occupancy rate as of the end of June 2022 was 96.0%,
which increased by 0.1pt compared to the end of the previous month and decreased by 0.2pt
year-over-year.
The average in-place rent per tsubo increased by 0.4% year-over-year. The NOI8 for theresidential portfolio in June 2022 decreased by 0.3% year-over-year and decreased by 0.2%
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 3.1%
for new leases, increased by 1.3% for renewal leases, and decreased by 0.4% for new andrenewal leases combined for the June 2022 fiscal period. INV achieved a rent increase on
36.6% of lease contract renewals and the retention rate for the existing tenants was 79.6%
for the June 2022 fiscal period.
4. Performance* The “Difference” in the table below indicates the increase / decrease in value for the monthof June 2022 or cumulative figures from January to June 2022 compared to thecorresponding value in 2021 or 2019. Hereinafter the same.
(1) 75 Domestic Hotel Properties3

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

Jun.

Jun.
2022

Jun.
2021

Difference

68.2%

38.1%

+30.1pt

87.9%-19.8pt

61.5%

35.6%

+25.9pt

86.8%-25.3pt

7,617

6,320 +20.5%

9,468-19.5%

7,504

6,940+8.1%

10,109-25.8%

5,192

2,406 +115.8%

8,323-37.6%

4,614

2,472 +86.7%

8,772-47.4%

3,653

1,859 +96.5%

5,492-33.5%

19,057

12,247 +55.6%

33,809-43.6%

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 July 25, 2022 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.

3(2) Cayman Hotels
Jun.
2022

Jun.
2021

Difference

49.6%

8.9%

+40.7ptOccupancy
Rate4
ADR(USD)5
RevPAR(USD)6
Gross Revenue(USD thousand)Jun.

Difference

2019
85.5%

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

-35.9pt

39.7%

7.9%

+31.9pt

89.3%-49.6pt

341

187 +82.2%

303 +12.8%

370

162 +129.1%

416-11.0%

169

17 +918.8%

259-34.6%

147

13 +1,055.0%

371-60.4%

5,115

768 +565.6%

7,248-29.4%

25,4883,602 +607.5%

56,050-54.5%End ofJun. 2022

End ofJun. 2021

Difference

Jan.-Jun.
2022

Jan.-Jun.
2021

Difference

96.0%

96.2%

-0.2pt

96.0%

96.0%

+0.0pt

9,145

9,111

+0.4%

9,127

9,128

-0.0%

Difference

Jun.
2019

(3) 41 Residential Properties7

Occupancy Rate
Rent per Tsubo(JPY)

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

Jun.
2022

Jun.
2021

Difference

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

100

25 +299.5%

429-76.5%

434

154 +180.7%

3,025-85.7%

121

33 +264.2%

312-61.2%

601

218 +175.2%

2,003-70.0%

222

58 +279.4%

742-70.1%

1,035

373 +177.4%

5,029-79.4%

70

9 +655.4%

168-58.3%

307

40 +667.1%

1,247-75.4%

Kansai21

6 +217.4%

129-83.5%

88

47 +87.7%984-91.0%

Kyushu84

10 +694.8%

118-28.5%

384

62 +517.2%

1,109-65.3%

Hokkaido45

36 +23.5%

418-89.2%

193

94 +106.3%

1,537-87.4%

Other domestic

112-2-158-29.0%

497-13-937-46.9%

Domestic Hotel- Subtotal

556

119 +365.9%

1,736-68.0%

2,506

602 +315.7%

10,846-76.9%

Residential

188188-0.3%

184+2.1%

1,113

1,115

-0.2%

1,100+1.2%

Commercial10-612-12-58

77-24.2%

77-24.6%

Domestic Asset-Subtotal

738

320 +130.1%

1,933-61.8%

3,678

1,795 +104.8%

12,024-69.4%

Overseas

136

-74-

291

-53.1%

785

-463

-

2,772

-71.7%

Total

875

246 +254.7%

2,224-60.7%

4,464

1,332 +235.2%

14,797-69.8%(ex. Tokyo 23 Wards)

Greater Tokyo Subtotal
Chubu(Note 1) Based on all properties held as of the end of June 2022, excluding 9 hotels with fixed-rent lease agreements. 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. 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 to
September 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 theThis English language notice is a translation of the Japanese-language notice released on July 25, 2022 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.

4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 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 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 end of June 2022, 9 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 2022; 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 2022; hereinafter the same.
(Note 8) NOI excludes one-off insurance-related revenues and expenses; hereinafter the same.
(Note 9) 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 10) The NOI of the commercial facility (AEON TOWN Sukagawa) was significantly lower than the previous year because therepair cost for the restoration work for the damage caused by the earthquake that occurred off the coast of Fukushima
Prefecture on February 13, 2021 was recorded in June 2022.
(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 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 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 July 25, 2022 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.

5