[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
December 23, 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 November 2022
Invincible Investment Corporation (“INV”) hereby announces its monthly performance.
1. Overall Performance of the Entire Portfolio
The performance of both the domestic and overseas hotel portfolios is approaching the level
before the COVID-19 pandemic. The occupancy rate of the domestic hotels for November
2022 was 79.3%, which increased by 18.8pt year-over-year. The residential occupancy
rate for the end of November 2022 was 96.4%, which decreased by 0.1pt compared to theend 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 tothe rent conditions for the period from October to December 2022 with Major Tenant” dated
December 9, 2022, INV entered into a Memorandum of Understanding (“MOU”) to amend
each fixed-term building lease and property management agreement pertaining to the rent
conditions for the period from October 1, 2022 to December 31, 2022 for domestic hotels
owned by INV with INV's main tenant, MyStays Hotel Management Co., Ltd. and its affiliates(the “MHM Group”), who operate the hotels. Under the MOU, we have partially changed
the rent payment conditions for the three months and changed the variable rent calculation
method, whereby the total fixed rent stays the same as in the existing leases, except that itis grouped together as a portfolio instead of calculated by individual properties. Thevariable rent is then calculated by summing up the rent of all 73 properties for three months.
For details on the MOU, please refer to the above press release.
As mentioned above, since the variable rent is calculated for the total of three months, theThis English language notice is a translation of the Japanese-language notice released on December 23, 2022 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

rent payment of the 73 properties for November 2022 has not been determined yet.
Therefore, the overall portfolio NOI1,2 for November 2022 has not been determined yet.
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 2022, theoccupancy rate increased by 18.8pt, ADR increased by 42.3%, and RevPAR increased by
86.5% compared to November 2021, while the occupancy rate decreased by 8.5pt, ADR
increased by 3.1%, and RevPAR decreased by 6.9% compared to November 2019 prior tothe COVID-19 pandemic.
For the month of November 2022, the overall occupancy rate reached 79.3%, the highest
since February 2020, and ADR topped the November 2019 figure by 3.1% due to the effectof the government's travel subsidy program “National Travel Discount Campaign” combinedwith leisure demand during the autumn tourist season. In addition, inbound demand has
been gradually recovering after the relaxation of border measures in October 2022.
We are forecasting that the December 2022 RevPAR will be approximately 80% higher thanthe December 2021 figure, or approximately 10% higher than the December 2019 figure asof today. The overall occupancy rate is expected to be around 80% due to the effect of theNational Travel Discount Campaign extended until stays through December 27 and inbounddemand.
Table below shows the KPIs for each area of the 75 domestic hotels portfolio3.
AreaOccupancy Rate4

ADR (JPY)5

RevPAR (JPY)6Tokyo 23 Wards

80.2%

7,878

6,317

Greater Tokyo (ex. Tokyo 23 Wards)

85.6%

13,757

11,769

Chubu

77.3%

10,077

7,794

Kansai

80.6%

9,564

7,711

Kyushu84.8%

11,523

9,768

Hokkaido

62.9%

8,625

5,427

Other domestic

88.4%

15,224

13,456

Total

79.3%

10,5858,399(2) Cayman Hotels
The occupancy rate for the Cayman Hotels (Westin Grand Cayman Seven Mile Beach &Spa and Sunshine Suites Resort) in November 2022 was 78.1%, an increase of 65.6pt
compared to the same month of the previous year, or 4.4pt lower than the November 2019
figure. ADR was USD 404, or 34.1% higher than November 2019. RevPAR was USD
This English language notice is a translation of the Japanese-language notice released on December 23, 2022 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315, or 26.9% higher than the November 2019 figure. Both ADR and RevPAR forNovember 2022 significantly exceeded 2019 levels. The NOI1 for November 2022 was JPY
333 million, a significant increase from JPY -93 million for November 2021.
We are forecasting that the occupancy rate for the Cayman Hotels in December 2022 will
be around 79.8%, or 5.3pt lower than the December 2019 figure, ADR will be USD 632, or11.2% higher than the December 2019 figure and RevPAR will be USD 505, or 4.2% higher
than the December 2019 figure as of today. Similar to the previous month, RevPAR isexpected to increase.
3. Residential Assets Overview
The residential portfolio7 in-place occupancy rate as of the end of November 2022 was96.4%, which decreased by 0.1pt compared to the end of the previous month and increased
by 0.6pt year-over-year.
The average in-place rent per tsubo increased by 0.2% year-over-year. The NOI8 for theresidential portfolio in November 2022 increased by 0.3% year-over-year and increased by
0.3% year-over-year on a cumulative basis for the December 2022 fiscal period.
Rents, compared with those based on the immediately preceding leases, decreased by 1.2%
for new leases, increased by 1.6% for renewal leases, and increased by 0.5% for new andrenewal leases combined for the December 2022 fiscal period. INV achieved a rent
increase on 47.0% of lease contract renewals and the retention rate for the existing tenants
was 80.3% for the December 2022 fiscal period.
4. Performance* The “Difference” in the table below indicates the increase / decrease in value for the monthof November 2022 or cumulative figures from July to December 2022 compared to thecorresponding value in 2021 or 2019. Hereinafter the same.
(1) 75 Domestic Hotel Properties3

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

Nov.

Nov.

Nov.

2022

2021

79.3%

60.5%

+18.8pt

87.8%

10,585

7,438 +42.3%

8,399
5,500

Difference

Difference

Jul.-Dec. Jul.-Dec.

Difference

Jul.-Dec.

2021-8.5pt

75.0%

50.6%

+24.4pt

89.2%-14.2pt

10,268

+3.1%

9,916

7,533 +31.6%

10,794-8.1%

4,503 +86.5%

9,020

-6.9%

7,436

3,809 +95.2%

9,627-22.8%

3,452 +59.3%

6,163-10.8%

24,223

14,213 +70.4%

31,208-22.4%

2019

2019

Difference2022

This English language notice is a translation of the Japanese-language notice released on December 23, 2022 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(2) Cayman Hotels

Occupancy
Rate4

Nov.

Nov.

2022

2021

78.1%12.5%

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

Nov.

Difference

Difference

2019+65.6pt

82.6%

Jul.-Dec. Jul.-Dec.
2022

2021

-4.4pt

51.5%

14.2%

Difference

Jul.-Dec.
2019+37.4pt

Difference

69.7%-18.2pt404

166 +142.7%

301 +34.1%

332

168 +97.7%

268 +23.9%

315

21 +1,416.6%

249 +26.9%

171

24 +619.5%

187-8.5%

7,915

762 +938.0%

6,466 +22.4%

24,903

4,508 +452.4%

25,588-2.7%(3) 41 Residential Properties7
End ofNov. 2022

End ofNov. 2021

Difference

96.4%

95.8%

9,153

9,136

Occupancy Rate
Rent per Tsubo(JPY)Jul.-Dec.

Jul.-Dec.

2022

2021

+0.6pt

96.3%

95.8%

+0.5pt

+0.2%

9,168

9,146

+0.2%

Difference

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

Nov.
2022

Nov.
2021

Difference

Nov.
2019

Difference

Jul.-Dec. Jul.-Dec.
Jul.-Dec.
Difference
Difference
2022
2021
2019-

72-

526

-

-

279

-

2,381

--

135-

389

--493

-

1,743

-

Greater Tokyo Subtotal
Chubu-

208-

916

--

772

-

4,124

--

85-

276-

-

267

-

1,265-

Kansai-

17-

172-

-

34-

708

-

Kyushu

-

91-

187-

-

206-

1,027

-

Hokkaido

-

28-

117-

-

58

-

1,701

-

Other domestic

-

178-

257

-

-

619

-

1,532

-

Domestic Hotel- Subtotal

-

608

-

1,926

-

-

1,958

-

10,360-Residential

184

184

+0.3%

191

-3.3%

933

930

+0.3%

929

+0.4%

Commercial

1212-0.0%12-0.3%

64

64

-0.1%

64

-0.3%

Domestic Asset- Subtotal

-

806

-

2,130-

-

2,953

-

11,355-

Overseas333-93-252+32.1%

677-351-756-10.5%

Total-712-

2,383

--

2,602

-

12,112-(ex. Tokyo 23 Wards)(Note 1) Based on all properties held as of the end of November 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 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 monthlybasis, 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 December 23, 2022 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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, 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 has temporarily been extending its six-month accounting period to a 12-monthaccounting period in order to curb the costs of settlement of accounts and is not expected to carry out the six-monthsettlement in INV’s fiscal period ending 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 cumulative loss is eliminated, a discrepancy may arise between thesimulated amount of dividend income and the dividend income from the TMK in the process of eliminating theabovementioned 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; hereinafterthe same.
(Note 2) 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 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 November 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 November 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 November 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) 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 December 23, 2022 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