[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
September 26, 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 August 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 August 2022 are gradually recoveringfrom the coronavirus (COVID-19) shock. The occupancy rate of the domestic hotels forAugust 2022 was 75.7%, which increased by 29.7pt year-over-year. The residential
occupancy rate for the end of August 2022 was 96.2%, which decreased by 0.1pt comparedto 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 August 2022 has not been determined as of today. As a result, GOP 1 andNOI2,3 for August 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 August 2022, theoccupancy rate increased by 29.7pt, ADR increased by 23.6%, and RevPAR increased by
103.2% compared to August 2021, while the occupancy rate decreased by 15.5pt, ADR
decreased by 14.3%, and RevPAR decreased by 28.9% compared to August 2019 prior tothe COVID-19 pandemic.

This English language notice is a translation of the Japanese-language notice released on September 26, 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While the number of new COVID-19 cases from the seventh wave seems to have peaked inAugust 2022, the overall occupancy rate reached the 75% level, the highest since February
2020, mainly due to demand for summer vacation leisure travel.
We are forecasting that September 2022 RevPAR will be approximately 125% higher thanthe September 2021 figure, or approximately 25% lower than the September 2019 figure asof today. The number of new COVID-19 cases has turned to a downward trend, and theoverall occupancy rate for September 2022 is expected to be in the lower half of 70% due
to stable business demand, leisure demand on weekends, and consecutive holidays using
municipalities’ local travel subsidy programs. From September 7, the number of entries toJapan per day has been raised from 20,000 to 50,000. Although free individual travel isstill not permitted and visas are required for all immigrants from overseas, foreign tourists
can participate in package tours without a tour conductor. Therefore, inbound demand is
expected to gradually recover in the future.
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

71.9%

5,541

3,982

Greater Tokyo (ex. Tokyo 23 Wards)

78.4%

11,830

9,281

Chubu

78.6%

9,088

7,141

Kansai

66.9%

5,434

3,636

Kyushu79.6%

11,795

9,392

Hokkaido

75.6%

13,673

10,335

Other domestic

84.0%

28,06823,571

Total

75.7%

10,8868,244(2) Cayman HotelsThe occupancy rate for the Cayman Hotels (Westin Grand Cayman Seven Mile Beach &Spa (“Westin”) and Sunshine Suites Resort ("Sunshine")) in August 2022 was 44.6%, anincrease of 30.5pt compared to the same month of the previous year, or 28.9pt lower thanthe August 2019 figure. ADR was USD 293, or 16.1% higher than August 2019 due to asales strategy that strives to reduce the amount of discounts. RevPAR was USD 130, or
29.6% lower than the August 2019 figure. The NOI2 for August 2022 was JPY 110 million,
an increase from JPY -61 million for August 2021.
We are forecasting that the occupancy rate for the Cayman Hotels in September 2022 will
be around 34.3%, or 7.8pt lower than the September 2019 figure and that RevPAR will bearound USD 90, or 8.8% higher than the September 2019 figure as of today. RevPAR is
expected to surpass the 2019 level for the first time since February 2020. All the travelrelated restrictions have been lifted effective August 24, and commercial flights to and fromthe United States by major airlines have been resumed. The situation is getting better andThis English language notice is a translation of the Japanese-language notice released on September 26, 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.

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we are anticipating the RevPAR to recover toward the 2019 level in the next peak travel
season starting in November 2022 and onward.
3. Residential Assets Overview
The residential portfolio8 in-place occupancy rate as of the end of August 2022 was 96.2%,
which decreased by 0.1pt compared to the end of the previous month and increased by 0.4pt
year-over-year.
The average in-place rent per tsubo increased by 0.1% year-over-year. The NOI9 for theresidential portfolio in August 2022 increased by 0.5% 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 1.7%
for new leases, increased by 1.4% for renewal leases, and increased by 0.1% 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 77.6% for the December 2022 fiscal period.
4. Performance* The “Difference” in the table below indicates the increase / decrease in value for the monthof August 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)7
Gross Revenue(JPY million)10

Aug.

Aug.

Aug.

2022

2021

75.7%

46.1%

+29.7pt

91.3%

10,886

8,808 +23.6%

8,244

Difference

Difference

Jul.-Dec. Jul.-Dec.

Difference

Jul.-Dec.
2019

Difference

2022

2021

-15.5pt

73.3%

47.5%

+25.8pt

90.7%-17.4pt

12,708-14.3%

10.107

8,413 +20.1%

11,773-14.1%

4,057 +103.2%

11,597-28.9%

7,410

3,998 +85.3%

10,682-30.6%

5,096

2,867 +77.7%

7,142-28.7%

9,320

5,701 +63.5%

13,340-30.1%

Aug.

Aug.

Aug.

2022

2021

44.6%

14.1%

2019

(2) Cayman Hotels

Occupancy
Rate5
ADR(USD)6
RevPAR(USD)7

Difference+30.5pt

2019

73.5%

Difference

Jul.-Dec. Jul.-Dec.
2022

2021

-28.9pt

48.3%

13.7%

Difference+34.6pt

Jul.-Dec.
2019

80.2%

Difference-31.9pt

293

181 +61.6%

252 +16.1%

316

183 +72.4%

280 +12.6%

130

25 +412.4%

185-29.6%

153

25 +507.3%

225-32.1%

This English language notice is a translation of the Japanese-language notice released on September 26, 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Gross Revenue(USD thousand)

4,262

1,004 +324.2%-17.7%

5,176

9,657

2,004 +381.9%

12,366-21.9%(3) 41 Residential Properties8
End ofAug. 2022

End ofAug. 2021

Difference

96.2%

95.8%

9,175

9,166

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

Jul.-Dec.

2022

2021

+0.4pt

96.2%

96.0%

+0.2pt

+0.1%

9,176

9,161

+0.2%

Difference

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

Aug.
2022

Aug.
2021

Difference

Aug.
2019

Difference

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

-

72-

452

-

-

166

-

912

-

-

95-

396

-

-

206

-

737

-

-

168

-

849

-

-

373

-

1,649

-

-

49-

353

-

-

111

-

571

-

Kansai

-

2-

160

-

-7-289-Kyushu

-

14-

296-

-

32-

506

-

Hokkaido-

11-

581-

-

31-

1,150-

Other domestic

-

126-

571

-

-

282

-

813

-

Domestic Hotel- Subtotal

-

371

-

2,813

-

-

838

-

4,981

-

Residential

189

188

+0.5%

184

+2.7%

373

372

+0.2%

367

+1.4%

Commercial

12

12

-0.0%

12-0.3%

25

25

-0.1%

25

-0.3%

Domestic Asset- Subtotal

-

573

-

3,011

-

-

1,237

-

5,375

-

Overseas110-61-145-24.1%

292

-115

-

446

-34.5%

Total

-

511

-

3,157--

1,121-

5,821-(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 August 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 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, 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
This English language notice is a translation of the Japanese-language notice released on September 26, 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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 August 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 August 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 August 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 September 26, 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.

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