[For Information Purpose Only]
November 25, 2016
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Name of representative:
Naoki Fukuda, Executive Director
Roppongi Hills Mori Tower
6-10-1 Roppongi, Minato-ku, Tokyo, Japan(Securities code: 8963)
Asset manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, CEOContact: Jun Komo
General Manager of Planning Department(Tel. +81-3-5411-2731)

Performance Update for October 2016
Invincible Investment Corporation (“INV”) hereby announces its monthly and fiscal period todate performance for the hotel and residential assets.
1. Hotel Assets Overview
While the hotel portfolio performance for the month of October 2016 (year-on-year) remained
flat overall, it was impacted by new supply in some areas. As a result, occupancy increased by
0.5% and ADR and RevPAR decreased by 2.0% and 1.4% respectively. The performance has
shown flat growth for the December 2016 fiscal period to date (from July to October 2016), with
ADR growth of 0.4% and declines in occupancy and RevPAR of 0.7% and 0.2% respectively
compared to the same period last year.
(Note)

Based on properties stated in “4. Performance (Note 1)” below.

2. Residential Assets Overview
The residential portfolio recorded a high occupancy rate of 94.5% as of the end of October
2016 and 94.7% for the July to October 2016 period. The rent increase program continues tomaintain progress as rents, compared with immediately preceding leases, increased by 1.6%
for new leases and 0.9% for renewal leases while the retention rate for existing tenants was
84.7% from July to October 2016. NOI increased by 3.5% for the month of October 2016
(year-on-year), and increased by 4.7% for the December 2016 fiscal period to date comparedto the same period last year.
(Note )

Based on properties stated in “4. Performance (Note 9)” below; provided, however, that the rent increase and retention
rate are based on 68 residential properties held by INV at the end of October 2016.

This English language notice is a translation of the Japanese-language notice released on November 25, 2016 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 basedon 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 theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

1

3. Hotel and Residential Assets Overview
The combined NOI for the hotel and residential portfolio increased by 1.0% for the December
2016 fiscal period to date compared to the same period last year.
(Note)

Based on properties stated in “4. Performance (Note 1)” and “(Note 9)” below.

4. Performance(1) Hotel Portfolio1

Occupancy Rate4
ADR (JPY)5
RevPAR (JPY)6
Gross Revenue(JPY million)# of Properties

Occupancy Rate4
ADR (JPY)5
RevPAR (JPY)6
Gross Revenue(JPY million)# of Properties

Fiscal period
ending December
2016 Cumulative2(A)
92.0%
9,919
9,122

Fiscal period
ended December
2015 Cumulative3(B)
92.6%9,876
9,144

7,851

Difference(A－B)

YoY Change

-0.6%
+43
-22

-0.7%
+0.4%
-0.2%

7,836

+15+0.2%

3636

―

―

October 2016
(C)
92.1%
9,831
9,057

October 2015
(D)
91.6%
10,0309,189

Difference
(C－D)
+0.5%
-199
-132

2,016

2,035

-18

-0.9%

3636

―

―

Fiscal period
ending December
2016 Cumulative2(A)94.7%

Fiscal period
ended December
2015 Cumulative3(B)95.1%

10,120YoY Change
+0.5%
-2.0%
-1.4%

(2) Residential Portfolio9Occupancy Rate
Rent per Tsubo(JPY)# of Properties

Occupancy Rate
Rent per Tsubo(JPY)# of Properties

Difference(A－B)

YoY Change

-0.4%

-0.4%

9,932

+188

+1.9%

6363

―

―October 2016
(C)
94.5%

October 2015
(D)
96.1%

Difference
(C－D)
-1.6%

10,142

9,939

+203

+2.0%

6363

―

―

YoY Change-1.6%This English language notice is a translation of the Japanese-language notice released on November 25, 2016 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 basedon 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 theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

2

(Note 1) Based on 36 hotel properties; of the 48 hotel properties in our portfolio as of October 2016, 9hotels with fixed-rent lease agreements as well as 3 hotels, which were renovated during theperiod from January 2015 to October 2016, are excluded. 9 hotels with fixed-rent leaseagreements are D29 Super Hotel Shinbashi/ Karasumoriguchi, D33 Comfort Hotel Toyama,
D36 Super Hotel Tokyo-JR Tachikawa Kitaguchi, D37 Super Hotel JR Ueno-iriyaguchi, D39Comfort Hotel Kurosaki, D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubamesanjo,
D42 Comfort Hotel Kitami, and D48 Takamatsu Tokyu REI Hotel. In addition, 3 renovatedhotels include D 43 Hotel MyStays Gotanda Station (closed due to renovation from March 1,
2015 to November 24, 2015), D38 Hotel MyStays Shinsaibashi (renovated from January 25,2015 to March 31, 2015), and D01 Hotel MyStays Kanda (renovated from May 20, 2016 toAugust 22, 2016). Furthermore, the 2015 performance includes the pre-acquisition data for theproperties acquired in 2015 and 2016, which was obtained from third-parties including previousowners.
(Note 2) Cumulative figures from July 2016 to October 2016 are stated.
(Note 3) Cumulative figures from July 2015 to October 2015 are stated.
(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 sales for acertain period by the aggregate number of rooms for the same period (rooms x number of days),and is the same figure as that of a product of ADR and occupancy rate.
(Note 7) Percentages are rounded to one decimal place. ADR and RevPAR are rounded to the nearest
yen and Gross Revenue is rounded down to the nearest million yen.
(Note 8) For the details of performance for each asset, please visit INV’s website:
http://www.invincible-inv.co.jp/eng/cms/review.html(Note 9) Based on 63 residential properties owned as of the beginning of July 2015. Current portfolio
consists of 68 residential properties, and the occupancy rate for the entire residential portfolio
is 95.7% in October 2016.
(Note 10) Cumulative occupancy rate for residential portfolio is calculated by dividing the sum of totalleased 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 total
rental revenue including common area charges for each month by the sum of total leasablearea at the end of each month.

Website of INV: http://www.invincible-inv.co.jp/eng

This English language notice is a translation of the Japanese-language notice released on November 25, 2016 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 basedon 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 theevent of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.

3