[For Information Purpose Only]

January 25, 2018

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 December 2017
Invincible Investment Corporation (“INV”) hereby announces its monthly and fiscal period todate performance for the hotel and residential assets.
1. Hotel and Residential Assets Overview
The combined NOI for the hotel and residential portfolio1 increased by 2.8% for the December
2017 fiscal period (July to December 2017, year-on-year).
(Note 1) Based on 40 hotel properties and 70 residential properties stated in “4. Performance (1) 40 Hotel Properties” and “(2)70 Residential Properties” below.

2. Hotel Assets Overview
The hotel portfolio1 performance for the month of December 2017 (year-on-year) has shown a
0.2pt growth in Occupancy and declines in ADR and RevPAR of 1.7% and 1.5% respectively.
Despite strong leisure demand especially at regional hotels in Nagoya, Fukuoka and Kanazawa,the absence of a three-day holiday compared to December 2016 led to a decline in ADR andRevPAR year-on-year. The December 2017 NOI declined by 4.7% (year on year) as some of
the November expenses were allocated to December.
The cumulative performance for the December 2017 fiscal period (July to December 2017) is
as follows: occupancy, ADR,and RevPAR increased by 0.1pt, 0.8% and 0.9% respectively
compared to the same period in the previous year. Importantly, NOI for the period was up 3.6%
compared to the same period last year.
(Note 1) Based on 40 hotel properties stated in “4. Performance (1) 40 Hotel Properties” below.

This English language notice is a translation of the Japanese-language notice released on January 25, 2018 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3. Residential Assets Overview
The residential portfolio1 occupancy rate as of the end of December 2017 was 95.3% (+0.9pt
year-on-year). The rent increase program continues to maintain progress as average rent pertsubo as of the end of December 2017 increased by 1.7% year-on-year.
Rents, compared with immediately preceding leases, increased by 2.4% across all new leases,
2.0% across all renewal leases, and 2.2% across all combined new and renewal leases for theDecember 2017 fiscal period (cumulative).
INV achieved a rent increase for 59.2% of contract renewals (December 2017 fiscal period
cumulative), which is a significant increase of 20.1pt compared to 39.1% for the full year 2016.
The retention rate for existing tenants remained high at 85.3% for the December 2017 fiscalperiod (cumulative).
NOI2 increased by 3.9% in December 2017 year-on-year, and also increased by a solid 1.0%
for the December 2017 fiscal period (cumulative) compared to the same period in the previousyear.
(Note 1) Based on 70 residential properties stated in “4. Performance (2) 70 Residential Properties” below.
(Note 2) NOI excludes one-off insurance-related revenues and expenses. NOI is provisional figure and subject to change when
it is determined at financial closing; hereinafter the same.

4. Performance(1) 40 Hotel Properties1

88.0%
9,728
8,563

Same month ofthe previous year(B)
87.9%
9,893
8,692

2,021
40December 2017(A)Occupancy Rate2
ADR (JPY)3
RevPAR (JPY)4
Gross Revenue(JPY million)# of Properties

Occupancy Rate2
ADR (JPY)3
RevPAR (JPY)4
Gross Revenue(JPY million)# of Properties

Fiscal period
ending December
2017 Cumulative5(C)90.6%
10,0839,131

Difference(A－B)

YoY Change+0.2pt
-165
-129

+0.2%
-1.7%
-1.5%

2,028

-6-0.3%40――

Same period ofthe previous year6(D)Difference(C－D)

YoY Change

90.5%
10,002
9,048+0.1pt+82+83

+0.1%
+0.8%
+0.9%

13,022

12,767

+255

+2.0%

4040―

―

This English language notice is a translation of the Japanese-language notice released on January 25, 2018 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(2) 70 Residential Properties7

95.3%

Same month ofthe previous year
(B)
94.5%

9,753
70

December 2017(A)Occupancy Rate
Rent per Tsubo(JPY)# of Properties

Occupancy Rate
Rent per Tsubo(JPY)# of PropertiesFiscal period
ending December
2017 Cumulative5(C)94.8%

Difference(A－B)

YoY Change+0.9pt

+0.9%

9,590

+163

+1.7%

70

―

―

Same period ofthe previous year6(D)Difference(C－D)

YoY Change

95.3%-0.5pt

-0.5%

9,709

9,535

+174

+1.8%

70

70

―

―

(Note 1) Based on 40 hotel properties; of the 49 hotel properties held as of the end of June 2017, 9 hotels with fixed-rent leaseagreements are excluded. 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, D39Comfort Hotel Kurosaki, D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubame-Sanjo, D42 Comfort Hotel Kitami,
and D48 Takamatsu Tokyu REI Hotel. Moreover, during the period between July 1, 2017 and December 31, 2017, INV
acquired D50 Hotel MyStays Shin Osaka Conference Center, D51 Hotel MyStays Premier Omori, D52 Beppu Kamenoi
Hotel and D53 Hotel MyStays Sapporo Station on October 13, 2017, and D43 Hotel MyStays Gotanda Station (additionalacquisition) on October 31, 2017. Our hotel portfolio as of the end of December 2017comprises 53 properties (excluding
Sheraton Grande Tokyo Bay Hotel, the underlying asset of preferred equity interest held by INV)
(Note 2) “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 3) “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 4) “RevPAR,” or Revenues Per Available Room, is calculated by dividing the total sales for a certain period by the aggregate
number of rooms for the same period (rooms x number of days), and is the same as product of room occupancy rate andADR.
(Note 5) Figures from July 2017 to December 2017 are stated.
(Note 6) Figures from July 2016 to December 2016 are stated. Figures are based on the assumption that the properties acquiredfrom July 1, 2016 to June 2017 were held as of July 1, 2016, and figures before acquisition by INV is based on the dataobtained from third-parties including previous owners.
(Note 7) Based on 70 residential properties owned as of the end of June 2017. Of the 70 properties, three properties (Casa
Eremitaggio, Lexel Mansion Ueno-Matsugaya and Sun Terrace Minami-Ikebukuro) were sold on December 28, 2017.
Therefore, for the three properties, December 1, 2017 through December 28, 2017, or the disposition date, is deemed theoperating period for the month of December 2017, and the leased area and the leasable area as of December 28, 2017 isdeemed as the leased area and the leasable area as of the end of December 2017 to calculate each number.
(Note 8) Percentages are rounded to one decimal place. ADR and RevPAR are rounded to the nearest yen and Gross Revenue isrounded down to the nearest million yen.
(Note 9) For the details of performance for each asset, please visit INV’s website:
http://www.invincible-inv.co.jp/eng/cms/review.html(Note 10) 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 total rental revenue including common area charges for each month by the sum of total
leasable area 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 January 25, 2018 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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