[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
October 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 September 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 September 2022 are gradually
recovering from the coronavirus (COVID-19) shock. The occupancy rate of the domestic
hotels for September 2022 was 73.6%, which increased by 30.1pt year-over-year. The
residential occupancy rate for the end of September 2022 was 96.4%, which increased by
0.2pt compared to the end of the previous month.
As for some of the 73 hotels that are operated by INV's main tenant, MyStays HotelManagement Co., Ltd. and its affiliates (the “MHM Group”), the amount of the employment
adjustment subsidies for September 2022 has not been determined as of today. As a result,GOP1 and NOI2,3 for September 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 September 2022, theoccupancy rate increased by 30.1pt, ADR increased by 36.1%, and RevPAR increased by
130.1% compared to September 2021, while the occupancy rate decreased by 14.7pt, ADR
decreased by 9.2%, and RevPAR decreased by 24.4% compared to September 2019 prior
to the COVID-19 pandemic.

This English language notice is a translation of the Japanese-language notice released on October 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 number of new COVID-19 cases turned to a downward trend in September 2022, andthe overall occupancy rate for September 2022 exceeded 70% due to stable businessdemand, leisure demand on weekends, a pair of consecutive holidays, and the use ofmunicipalities’ local travel subsidy programs.
We are forecasting that October 2022 RevPAR will be approximately 95% higher than theOctober 2021 figure, or approximately 20% lower than the October 2019 figure as of today.
The government's travel subsidy program “National Travel Discount Campaign” started on
October 11 (October 20 for Tokyo Prefecture) and is expected to boost domestic
accommodation demand. On October 11, border measures have been relaxed, and (i) visa
exemption for short-term visitors, (ii) the lifting of the ban on free individual travel fromoverseas, and (iii) the removal of the upper limit on the number of entries to Japan per day
are expected to contribute to a recovery in inbound demand.
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

69.0%

5,662

3,909

Greater Tokyo (ex. Tokyo 23 Wards)

76.9%

11,157

8,585

Chubu

74.5%

7,990

5,956

Kansai

64.6%

5,420

3,500

Kyushu

73.9%

9,302

6,877

Hokkaido

77.8%

10,230

7,962

Other domestic

82.8%

16,542

13,695

Total

73.6%

9,000

6,628

(2) Cayman Hotels
The occupancy rate for the Cayman Hotels (Westin Grand Cayman Seven Mile Beach &Spa and Sunshine Suites Resort) in September 2022 was 30.7%, an increase of 17.0pt
compared to the same month of the previous year, or 11.4pt lower than the September 2019figure. ADR was USD 261, or 32.7% higher than September 2019 due to a sales strategy
that strives to reduce the amount of discounts. Despite the impact of Hurricane Ian,
RevPAR was USD 80, or 3.2% lower than the September 2019 figure, which was almost thesame level as the September 2019 figure. The NOI3 for September 2022 was JPY -25
million, an increase from JPY -77 million for September 2021.
We are forecasting that the occupancy rate for the Cayman Hotels in October 2022 will bearound 50.8%, or 12.3pt lower than the October 2019 figure and that RevPAR will be around
USD 153, or 1.1% higher than the October 2019 figure as of today. Similar to September
2022, RevPAR is expected to reach 2019 levels.

This English language notice is a translation of the Japanese-language notice released on October 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 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

3. Residential Assets Overview
The residential portfolio7 in-place occupancy rate as of the end of September 2022 was96.4%, which increased by 0.2pt 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 0.3% year-over-year. The NOI8 for theresidential portfolio in September 2022 increased by 0.1% year-over-year and increased by
0.2% 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 1.8%
for new leases, increased by 1.5% for renewal leases, and increased by 0.2% for new andrenewal leases combined for the December 2022 fiscal period. INV achieved a rent
increase on 52.2% of lease contract renewals and the retention rate for the existing tenants
was 78.8% for the December 2022 fiscal period.
4. Performance* The “Difference” in the table below indicates the increase / decrease in value for the monthof September 2022 or cumulative figures from July to December 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

Sep.

Sep.

Sep.

2022

2021

73.6%

43.6%

+30.1pt

88.4%

9,000

6,613 +36.1%

6,628
5,092

Difference

Difference

Jul.-Dec. Jul.-Dec.

Difference

Jul.-Dec.
2019

Difference

2022

2021

-14.7pt

73.4%

46.2%

+27.2pt

90.0%-16.5pt

9,917

-9.2%

9,745

7,860 +24.0%

11,178-12.8%

2,881 +130.1%

8,762-24.4%

7,155

3,634 +96.9%

10,056-28.9%

2,177 +133.8%

5,696-10.6%

14,4137,879 +82.9%

19,036-24.3%

2019(2) Cayman Hotels

Occupancy
Rate5
ADR(USD)6
RevPAR(USD)7Gross Revenue(USD thousand)

Sep.

Sep.

2022

2021

30.7%

13.8%

Difference+17.0pt

Sep.
2019

42.1%

Difference

Jul.-Dec. Jul.-Dec.
2022

2021

-11.4pt

42.6%

13.7%

Difference+28.9pt

Jul.-Dec.
2019

67.8%

Difference-25.2pt

261

154 +68.8%

196 +32.7%

303

174 +74.2%

263 +14.9%

80

21 +276.9%

83-3.2%129

24 +440.4%

178-27.8%

2,746852 +222.0%

2,527+8.6%12,403

2,857 +334.1%

14,894-16.7%

This English language notice is a translation of the Japanese-language notice released on October 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 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.

3(3) 41 Residential Properties8
End ofSep. 2022

End ofSep. 2021

Difference

96.4%

95.8%

9,165

9,141

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

Jul.-Dec.

2022

2021

+0.6pt

96.3%

95.9%

+0.4pt

+0.3%

9,172

9,154

+0.2%

Difference

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

Sep.
2021-

-23

Difference

Sep.
2019

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

385-

-

143-

1297

--

294-

-

227-

1,032-

-2-

680

-

-

370-

2,329

-

--10-

202-

-

100-

773

-

Kansai

-

-7-

95-

-

0-

385

-

Kyushu

-

-7-

99-

-

25-

606

-

Hokkaido

-

-26-

272-

-

5-

1,423

-

Other domestic

-

-11-

244-

-

271

-

1,057

-

Domestic Hotel- Subtotal

-

-65-

1,594--

773-

6,576-

Residential

188

188

+0.1%183

+2.6%

561

560

+0.2%

551

+1.8%

Commercial

1212-0.0%

12-0.3%38

38-0.1%38-0.3%

Domestic Asset- Subtotal

-

135-

1,791--

1,373-

7,166-

Overseas

-25

-77-

-17-

266

-193-

428

-37.8%

Total

-

58-

1,773

-

-

1,180-

7,595--

21

Greater Tokyo Subtotal

-

Chubu

(ex. Tokyo 23 Wards)-

Difference(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 September 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 TokyuREI 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 inthe 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; hereinafter
the same.
(Note 3) NOI figures before acquisition by INV is based on the data obtained from third-parties including previous owners, and areThis English language notice is a translation of the Japanese-language notice released on October 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 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.

4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 September 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 September 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 September 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 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 October 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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