[For Information Purpose Only]
April 25, 2017
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 March 2017
Invincible Investment Corporation (“INV”) hereby announces its monthly and fiscal period todate performance for the hotel and residential assets.
1. Hotel Assets Overview
The hotel portfolio1 performance for the month of March 2017 (year-on-year) has shown
declines in occupancy, ADR and RevPAR by 0.4pt, 4.0% and 4.4% respectively, however
Gross Revenue only declined by 1.3% due to strong performance of the wedding business at
both Hotel Epinard Nasu and Hotel MyStays Utsunomiya. Tourism demand in late March
shifted to early April due to factors such as (i) unseasonal weather that pushed the cherry
blossom season back later than last year and (ii) the timing of Easter holidays shifted to April
this year compared to March 2016.
The performance for the June 2017 fiscal period (January to March 2017) is as follows:
occupancy, ADR and RevPAR decreased by 1.4pt, 0.4% and 1.9% respectively compared tothe same period of the previous year.
(Note 1)

Based on 38 hotel properties stated in “4. Performance (1) 38 Hotel Properties” below.

2. Residential Assets Overview
The residential portfolio1 occupancy rates as of the end of March 2017 and average occupancy
rate for the June 2017 fiscal period (January to March 2017) were 95.8% (-1.0pt year-on-year)
and 94.5% (-1.6pt year-on-year) respectively. However, the rent increase program continues tomaintain progress as average rent per tsubo as of the end of March 2017 and the June 2017
fiscal period increased by 0.8% and 0.9%, respectively, year-on-year.
Rents, compared with immediately preceding leases, increased by 2.7% across all new leases,
This English language notice is a translation of the Japanese-language notice released on April 25, 2017 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 theirown 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2.0% across all renewal leases and 2.3% across all combined new and renewal leases for theJune 2017 fiscal period (cumulative).
INV achieved a rent increase for 52.9% of contract renewals, which is an increase of 13.8pt
compared to 39.1% for the previous calendar year. The retention rate for existing tenantsremained high at 82.7% for June 2017 fiscal period. While the rent increase program continues
to maintain progress, expenses related to leasing activities have increased compared to thesame period last year; NOI2 increased slightly by 0.3% for the month of March 2017
year-on-year, but increased by a solid 1.4% for the June 2017 fiscal period compared to thesame period of the previous year.
(Note 1) Based on 66 residential properties stated in “4. Performance (2) 66 Residential Properties” below; provided, however,that the rent increase and retention rate are based on 70 residential properties held by INV at the end of March 2017.
(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.

3. Hotel and Residential Assets Overview
The combined NOI for the hotel and residential portfolio1 decreased by 0.9% for the June 2017
fiscal period to date
(Note 1) Based on 38 hotel properties and 66 residential properties stated in “4. Performance (1) 38 Hotel Properties” and “(2)66 Residential Properties” below.

4. Performance(1) 38 Hotel Properties

1

90.9%
9,774
8,880

Same month ofthe previous year
(B)
91.3%
10,1779,287

2,059
38March 2017
(A)
2Occupancy Rate
3ADR (JPY)4
RevPAR (JPY)
Gross Revenue(JPY million)# of Properties

2

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

Fiscal period
ending June 2017
5
Cumulative(C)
87.7%
8,880
7,789

Difference(A－B)

YoY Change-0.4pt
-403
-407

-0.4%
-4.0%
-4.4%

2,085

-26

-1.3%

38

―

―

Same period of6
the previous year(D)Difference(C－D)

YoY Change

89.1%
8,913
7,940

-1.4pt
-33
-151

-1.5%
-0.4%
-1.9%

5,177

5,211

-33

-0.6%

38

38

―

―

This English language notice is a translation of the Japanese-language notice released on April 25, 2017 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 theirown 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(2) 66 Residential Properties

795.8%

Same month ofthe previous year
(B)
96.8%

9,906
66

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

Occupancy Rate
Rent per Tsubo(JPY)# of Properties

Fiscal period
ending June 2017
5
Cumulative
(C)
94.5%

Difference(A－B)

YoY Change-1.0pt

-1.1%

9,824

+82+0.8%

66――

Same period of6
the previous year
(D)

Difference(C－D)

YoY Change96.1%-1.6pt

-1.7%

9,969

9,876

+93

+0.9%

6666

――(Note 1) Based on 38 hotel properties; of the 48 hotel properties in our portfolio as of the end of February 2017, 9 hotels withfixed-rent lease agreements as well as one hotel, D01 Hotel MyStays Kanda, which was renovated from May 20, 2016 toAugust 22, 2016 is 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, D39
Comfort Hotel Kurosaki, D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubame-Sanjo, D42 Comfort Hotel Kitami,
and D48 Takamatsu Tokyu REI Hotel. Furthermore, the 2016 performance includes the pre-acquisition data for theproperties acquired in 2016, which was obtained from third-parties including previous owners.
(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 figure as that of a product of ADR andoccupancy rate.
(Note 5) Cumulative figures from January 2017 to March 2017 are stated.
(Note 6) Cumulative figures from January 2016 to March 2016 are stated.
(Note 7) Based on 66 residential properties owned as of the beginning of January 2016. Portfolio consists of 70 residential
properties, and the occupancy rate for the entire residential portfolio is 96.3%, as of the end of March 2017.
(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 pertsubo 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 April 25, 2017 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 theirown 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.

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