[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
June 24, 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 May 2022
Invincible Investment Corporation (“INV”) hereby announces its monthly performance.
1. Overall Performance of the Entire Portfolio
Both the domestic and overseas hotel portfolios for May 2022 are gradually recovering fromthe coronavirus (COVID-19) shock. The occupancy rate of the domestic hotels for May
2022 was 69.3%, which increased by 34.8pt year-over-year. The residential occupancy
rate for the end of May 2022 was 95.9%, which decreased by 0.6pt compared to the end of
the previous month.
As for the 73 hotels that are operated by INV's main tenant, MyStays Hotel Management
Co., Ltd. and its affiliates (the “MHM Group”), the amount of the employment adjustment
subsidies for May 2022 has not been determined as of today. As a result, GOP1 and NOI2,3for May 2022 have not been determined yet.
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 May 2022, the occupancy
rate increased by 34.8pt, ADR increased by 9.7%, and RevPAR increased by 120.6%
compared to May 2021 while the occupancy rate decreased by 17.6pt, ADR decreased by
22.4%, and RevPAR decreased by 38.2% compared to May 2019 prior to the COVID-19pandemic.

This English language notice is a translation of the Japanese-language notice released on June 24, 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 owninvestigation 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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In May 2022, an increase in travel and leisure demand was observed due to the fact that nobehavioral restrictions were imposed during Golden Week for the first time in three years,
and that the number of newly infected people continued to decrease after that. Similar tothe previous month, about half of INV’s hotels recorded occupancy rates of 70% or higher.
We are forecasting that June 2022 RevPAR will be approximately 115% higher than the June
2021 figure, or approximately 40% lower than the June 2019 figure as of today. From June
1, the daily cap on arrivals has been doubled to 20,000 and quarantine measures have beenrelaxed. Immigrants from 98 countries / regions are exempt from immigration inspections
and self-quarantine at home, regardless of their vaccination status. Therefore, inbounddemand is expected to start its recovery. In addition, domestic demand is also expected toincrease due to the expanded use of travel subsidy campaigns implemented by prefectures
including Tokyo.
Table below shows the KPIs for each area of the 75 domestic hotels portfolio4.
Area

Occupancy Rate5

ADR (JPY)6

RevPAR (JPY)7Tokyo 23 Wards

69.2%

5,319

3,680

Greater Tokyo (ex. Tokyo 23 Wards)

76.6%

10,602

8,125

Chubu

69.3%

8,020

5,558

Kansai

63.3%

5,082

3,216

Kyushu

74.7%

8,641

6,452

Hokkaido

56.2%

7,956

4,471

Other domestic

77.1%

16,23912,523

Total

69.3%

8,303

5,751

(2) Cayman Hotels
The occupancy rate for the Cayman Hotels (Westin Grand Cayman Seven Mile Beach &Spa (“Westin”) and Sunshine Suites Resort ("Sunshine")) in May 2022 was 47.4%, anincrease of 41.5pt compared to the same month of the previous year when only Sunshine
was open. The NOI for May 2022 was JPY 177 million, a significant increase from JPY 99 million for May 2021.
In May 2022, a pickup in group reservations was observed, although the peak season haspassed. The occupancy rate for the Cayman Hotels was 47.4%, or 38.0pt lower than theMay 2019 figure, and RevPAR was USD 171, or 35.2% lower than the May 2019 figure.
ADR was USD 360, surpassing USD 308 in May 2019 due to a sales strategy that strives
not offer discounts as much as possible because as it will take more time for the occupancy
rate improves significantly.
We are forecasting that the occupancy rate for the Cayman Hotels in June 2022 will bearound 50.7%, or 34.8pt lower than the June 2019 figure and that RevPAR will be around
This English language notice is a translation of the Japanese-language notice released on June 24, 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 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USD 174, or 32.7% lower than the June 2019 figure as of today. From June 12, the predeparture testing requirement for travelers flying to the United States from foreign countries
has been lifted and US-based travelers are much less worried about getting stuck during
their trip for quarantine measures. Therefore, further recovery in travel demand to theCayman Islands is expected, particularly from the next peak season starting in lateNovember.
3. Residential Assets Overview
The residential portfolio8 in-place occupancy rate as of the end of May 2022 was 95.9%,
which decreased by 0.6pt compared to the end of the previous month and was flat yearover-year.
The average in-place rent per tsubo increased by 0.3% year-over-year. The NOI9 for theresidential portfolio in May 2022 increased by 1.9% 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 3.5%
for new leases, increased by 1.2% for renewal leases, and decreased by 0.6% for new andrenewal leases combined for the June 2022 fiscal period. INV achieved a rent increase on
34.5% of lease contract renewals and the retention rate for the existing tenants was 79.3%
for the June 2022 fiscal period.
4. Performance* The “Difference” in the table below indicates the increase / decrease in value for the monthof May 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
RevPAR(JPY)7Gross Revenue(JPY million)10

MayMay2022May2021

Difference

69.3%

34.5%

+34.8pt

86.9%-17.6pt

60.2%

35.1%

+25.0pt

86.5%-26.4pt

8,303

7,567

+9.7%

10,704-22.4%

7,479

7,073

+5.7%

10,239-27.0%

5,751

2,607 +120.6%

9,301-38.2%

4,499

2,485 +81.1%

8,861-49.2%

4,097

2,321 +76.5%

6,060-32.4%

15,386

10,387 +48.1%

28,316-45.7%

May
2022

May
2021

Difference

May

47.4%

5.9%

+41.5pt

2019

Difference

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

(2) Cayman Hotels

Occupancy
Rate5

2019
85.4%

Difference-38.0pt

Jan.-Jun. Jan.-Jun.
Jan.-Jun.
Difference
Difference
2022
2021
2019
37.8%

7.7%

+30.1pt

90.0%-52.3pt

This English language notice is a translation of the Japanese-language notice released on June 24, 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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ADR(USD)6
RevPAR(USD)7Gross Revenue(USD thousand)308 +16.7%

378

156 +142.6%

437-13.6%

263-35.2%

143

12 +1,092.7%

394-63.8%

409 +1,144.6%

7,991-36.2%

20,373

2,834 +618.9%

48,802-58.3%

End ofMay 2022

End ofMay 2021

Difference

Jan.-Jun.
2022Jan.-Jun.
2021

Difference

95.9%

95.9%

+0.0pt

96.0%

95.9%

+0.1pt

9,198

9,172

+0.3%

9,123

9,131

-0.1%

360

136 +163.8%

171

8 +2,006.0%

5,096(3) 41 Residential Properties8

Occupancy Rate
Rent per Tsubo(JPY)

5. Portfolio NOI2,3,9(JPY million)
Tokyo 23 Wards
Greater TokyoMay
2022

May
2021

Difference

May
2019

Difference

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

-

26-

495-

-

129-

2,595-

-

31-

265-

-

185-

1,690--

58-

761--

314-4,286-

-

11-

267-

-

30-

1,078-

Kansai-

9-

164-

-

40-

855-

Kyushu

-

10-

226-

-

51-

990

-

Hokkaido

-

17-

294-

-

57-

1,119-

Other domestic

-

7-

241-

-

-11-

779

-

Domestic Hotel- Subtotal

-

114

-

1,955-

-

483

-

9,110

-

Residential

191

187

+1.9%

188

+1.5%

925

926

-0.2%

916

+1.0%

Commercial

12

12+0.1%12-0.1%64

64+0.1%64-0.1%

Domestic Asset-Subtotal

-

314-

2,157--

1,475-

10,091-

Overseas177-99-345-48.6%

649-389-

2,481-73.8%

Total

-

215-

2,502--

1,085-

12,572-(ex. Tokyo 23 Wards)

Greater Tokyo Subtotal
Chubu(Note 1) GOP means the gross operating profit, and is the amount remaining after deducting costs of hotel operations (thepersonnel, 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 May 2022, excluding 9 hotels with fixed-rent lease agreements. 9 hotelswith 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
This English language notice is a translation of the Japanese-language notice released on June 24, 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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 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 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 May 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 May 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 bythe 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 May 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 and
Gross 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 June 24, 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 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.

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