Invincible Investment Corporation
Supplemental Information Regarding Press Releases
announced as of February 22, 2017

Investment
Invincible Corporation
TSE Code: 8963

http://www.invincible-inv.co.eng/

Disclaimer

Investment
Invincible Corporation◆ This material is for informational purposes only and not for solicitation to invest in, or recommendation to buy, certain products of Invincible Investment
Corporation (“INV”). You should consult with securities firms if you intend to purchase investment units of INV.
◆ This material does not constitute or form a part of any disclosure document or an asset management report required by the Financial Instruments andExchange Act of Japan, the Investment Trust and Investment Corporation Act of Japan or regulations thereunder, or the listing rules of the Financial
Instruments Exchanges or other related rules and regulations.
◆ This material contains forward‐looking statements and these statements are based on certain assumptions and premises in consideration of the available
information as of the date of this material; therefore there may be currently unknown risks and uncertainties in such statements. The contents offorward‐looking statements are subject to such risks, uncertainties, assumptions and other factors. Accordingly, there is no assurance as to actual businessperformance, results of operations or financial conditions.
◆ INV has given its attention that the information provided herein does not contain mistakes or omissions. However, there is no assurance given as to theaccuracy, certainty or completeness, validity or fairness of any such information and such information is subject to revision or retraction without priornotice.
◆ This material is supplement information regarding “Notice concerning Issuance of New Investment Units and Secondary Distribution of Investment Units”,“Notice concerning Acquisition of Assets and Entering into Leasing Contract”, “Notice concerning Debt Financing” and “ Notice concerning Revision ofForecast of Financial Results and Distribution for the 28th Fiscal Period Ending June 2017 and the 29th Fiscal Period Ending December 2017” announced asof February 22, 2017
For the further information (including the forecast information), please refer to the notes in this material and the original press releases described above.
The forecast DPU is a forecast as of the date of this material, and actual DPU may differ significantly due to factors, such as change in circumstances andaudit by the independent auditor. There is no guarantee of the payment of the forecast distribution amount.

INQUIRIES:
Consonant Investment Management Co., Ltd. (Asset Manager of INV)
Tel. +81‐3‐5411‐2731

Investment
Invincible Corporation

Summary
New Acquisition of High Quality Residential Assets
to Provide Further Stability and Growth Potential

 Two residential assets to be acquired for JPY 24.5 billion, with 5.4% on average appraisal NOI yield1
 High quality assets in the Minami-Senju area2,Tokyo Portfolio to grow to 126 properties with 65.4%3 located in Greater Tokyo4
 After anticipated acquisitions, rental revenue from the portfolio5 will consist of 70.0% from fixed hotel rent, residential rent andrent from other assets (offices, commercial facilities and parking lots), providing further stability
 Royal Parks Tower Minami-Senju has achieved 17.3% average rent increase on the new leases6 in 2016 and the appraisal rents6 are
7.7% above in-place rents6, providing INV room to increase rents
 Royal Parks Seasir Minami-Senju is on a fixed term master lease with a fixed rent to Daiwa Living. Master lease will expire on
November 21, 2019 and master lease fixed rents7 are at JPY 7,252 per tsubo per month versus end-tenant rent7 of JPY 8,332 pertsubo per month, which shows potential for growth after the expiry of master lease8

Continued Organic Growth from Portfolio
 Pro-active asset management over the last three years has driven residential and hotel rent increases
 In 2016 residential rents in our portfolio increased at 51.0% of new leases with an average increase of 1.2% and 39.1% of renewal
leases with an average increase of 1.2%

Financial Strength and Stability
 LTV expected to be 44.4%9 post transaction
 Three lenders are newly added, further reinforcing the lender formation(Note 1) “Appraisal NOI “is the NOI derived from the direct capitalization method in appraisal reports, and the NOI yield is calculated by dividing the total of appraisal NOI by anticipated acquisition price and rounded to one decimal place.
(Note 2) Minami-Senju 1chome – 8chome. Hereinafter the same
(Note 3) Based on (anticipated) acquisition price(Note 4) “Greater Tokyo” is Tokyo, Kanagawa, Chiba and Saitama(Note 5) Annual revenue, assuming all of INV's assets post acquisition were owned as of January 1, 2016, calculated based on actual 2016 full year results. Performance of the properties acquired in 2016 for the pre‐acquisition period and for theproperties anticipated to be acquired is based on actual results provided by sellers.
(Note 6) “New leases” means the lease agreements with the end-tenants newly signed in 2016 and rent for new leases is calculated based on average of per-month rents as of December 31, 2016 of new leases , weighted by leased area.
“Appraisal rent” means the rent per month which is estimated as reasonable by Japan Real Estate Institute based on quality of the property and market value for all type as of January 1, 2017, and indicates the weighted average pertsubo for the units leased as of December 31, 2016. Appraisal rent does not indicate that the in‐place rents with the existing tenants can be increased up to such appraisal rent and also does not guarantee that INV can enter into leaseagreements with new tenants at such appraisal rent.
“In-place rent” means the average of per-month rents for the lease agreements with the end-tenants effective as of December 31, 2016 weighted by leased area.
(Note 7) Calculated by dividing rent or the total of rent as of December 31, 2016 by leased area as of the same date.
(Note 8) The difference between (i) the actual rent paid by the master lessee under the rent-guarantee type master lease agreement and (ii) the actual rent paid by the end tenants indicates the potential increase in the rental income which INV
might be able to enjoy if the in place rent-guarantee type master lease agreement expires in November 2019 (expected) and should not be construed as a guarantee of such increase in rental income. Moreover, since such difference does
not take into consideration for changes in expenses after changing to a pass-through type master lease agreement, such difference in amount will not necessarily equal to an increase in NOI of INV.
(Note 9) LTV is calculated by the following formula: (Interest-bearing debts at the end of December 2016 + Total loan amount of new borrowings)/(Total appraisal value as of the end of December 2016 + Total appraisal value for theanticipated properties) x 100

3Investment
Invincible Corporation

DPU Impact from Transaction
 Internal and external growth have provided continuous growth of DPU since 2013

DPU Growth

Analysis on DPU simulation of 2017 (vs RevPAR growth)

(JPY)

3,000

1H

(JPY)
3,500

2H
2,663

2,500

Normalized DPU(Based on the forecastin 2017)+2.2% 2,721
3,000+30.1%
2,500

2,047

2,000

1,477

1,481

2,315

2,394

2,473

2,552

2,631

2,710

2,790

2,869

2,948

3,027

3,1062,000+56.7%
1,500

1,000

500

0

1,306

1,500

1,187

1,000+160.7%

733
1,186

501
237

1,240

860

0573

RevPAR
growth1264
2013

2014

500201520162017(Forecast)-10%-8%-6%-4%-2%0%+2%+4%+6%+8% +10%

Hotel
7,874 8,048 8,223 8,398 8,573 8,748 8,923 9,098 9,273 9,448 9,623
RevPAR（JPY）2
Simulated
DPU growth3-14.6% -11.7% -8.8% -5.9% -3.0%-+3.0% +5.9% +8.8% +11.7%+14.6%(Note 1)RevPAR growth is shown as a % change from the RevPAR assumption for the 2017 forecast; the sensitivity analysis is based on potential changes to RevPAR for the 39 hotels with a variable rent scheme(Note 2)The average RevPAR for the 39 hotels with a variable rent scheme(Note 3)Simulated DPU Growth is calculated by using the normalized DPU, which is annualized by assuming all of INV’s assets as of today and properties anticipated to be acquired, and all assumptions for the 2017 DPU simulation except for
the RevPAR remain the same. See the announcement as of February 22, 2017 of “Notice concerning Revision of Forecast of Financial Results and Distribution for the 28th Fiscal Period Ending June 2017 and the 29th Fiscal Period EndingDecember 2017 for the assumption for the 2017 DPU simulation.

4

New Acquisition of High Quality Residential Assets
to Provide Further Stability and Growth Potential

Investment
Invincible Corporation

 Robust pipeline provides opportunity for acquisitions of properties contributing to portfolio growth and stability
 After anticipated acquisition, rent revenue from hotels with fixed rent, residential assets and other assets1 will account for 70.0%3 ofrevenue which is enhancing the stability of portfolio

Portfolio by asset type2

Rent revenue structure post-transaction3
Other(1)
6.0%

Other(1)
6.5%
Residential
26.7%

Other(1)
5.4%

Residential
32.9%

Afteranticipatedacquisition Hotel

Existing
assetsHotel
67.9%

Residential
28.5%

Hotel(Variablerent)
32.6%

Residential
34.2%

62.2%

Other(1)
5.0%

Hotel
(Variablerent)
30.0%

Hotel(Fixed rent)
29.8%

Hotel(Fixed rent)
32.4%

67.4%

70.0%

(Note 1) Includes offices, commercial facilities and parking lots
(Note 2) Based on (anticipated) acquisition price(Note 3) Annual revenue, assuming all of INV's assets as of relevant point of time (pre-acquisition/post-acquisition) were owned as of January 1, 2016, calculated based on actual 2016 full year results. Performance for the pre-acquisition period and for theproperties anticipated to be acquired is based on actual results provided by sellers.

Growth of AUM（mn JPY）
300,000
250,000
200,000+53.4%New Acquisition1+47.4%

150,000
100,000

266,619

AUM1

77,161+52.8%

117,927

173,815

291,181
24,56292,80455,88845,37450,0000December 2013

December 2014

December 2015

December 2016

AfterAcquisition(Note 1) “AUM” is total acquisition amount of the properties owned as of the end of the relevant year, or the sum of AUM as of the end of December 2016 and total anticipated acquisition amount for “After Anticipated Acquisition”, and “NewAcquisition”shows total (anticipated) acquisition amount for the properties acquired in the relevant year or for the properties to be acquired5Investment
Invincible Corporation

Residential Rent Increase Initiative In 2014, INV initiated a Rent Increase Program to increase rents on new and renewal contracts

Change in Rent for New Contracts1
Increase

(%)

100

35.8

8060

Flat

Change in Rent for Renewal Contracts1

Decrease

20.5

23.4

23.6

22.3

19.7

25.4

200.6

60

57.2

56.8

51.0

2002013

2014

827649

2015
943

2016
783

Occupancy (%)

95.5

94.0

94.7

95.9

Net Leasing Cost
(No. of months)3

1.15

1.01

1.23

1.15

2(%)

80
60
40
200

Increase
18.3

Flat
8.8

Decrease
10.3
42.8

60.9

60.8

38.1

39.1

39.1

2014

2015

2016

818872

1,209

1,1264

81.2

84.7

85.4

83.7

Renewal Rate (%)

Average Rent Increase / Decrease5
(%)

9.7
46.3

New Lease

2.5

Renewal

Total

1.9
1.3

1.5

1.6
1.1

1.3

1.2

1.2 1.2

1.2

1.0

63.3

0.5
46.2

46.9

43.9

18.4
2013

61.8

2013

2.0
45.0

0.1

No. ofRenewals

Change in Rent for All Contracts1
100

Decrease

0.1

0No. of
New Contracts

0.0

99.3

40

36.4

Flat

0.1

80

27.8

40

Increase(%)

100

0.0-0.5

2014

2015

2016

0.0-0.3

-0.1
2013

2014

2015

2016

(Note 1) Based on the residential properties owned in relevant year excluding the performance for the properties during the pre‐acquisition period. The number of properties at the end of each year is as follows; 63 properties for 2013, 63properties for 2014, 66 properties for 2015, and 68 properties for 2016
(Note 2) Occupancy is calculated by dividing the sum of leased area by the sum of leasable area at the end of each month, based on the properties owned in relevant year excluding the performance for the properties during the pre‐acquisitionperiod(Note 3) Net Leasing Cost (Multiple of Monthly Rent) = Advertising Expenses (Multiple of Monthly Rent) + Free Rent (Multiple of Monthly Rent) – Key Money (Multiple of Monthly Rent). Multiple of Monthly rent is converted by the monthlyrent for new lease agreement during the relevant period and rounded to two decimal places(Note 4) Renewal rate is calculated by the number of renewal rents during the relevant period divided by the number of contracts due up for renewal during the relevant period(Note 5) Increase or decrease (%) in the sum of monthly rents on new or renewal contracts, or the total of both, compared with the sum of previous rents for properties owned at the end of each month during relevant year

6

Two new residential properties

Investment
Invincible Corporation

Royal Parks Tower Minami‐Senju
 A high quality asset in the Minami‐Senju area 39 floors, 5571 units residential tower built in 2008
 Five minute walk to Minami‐Senju Station with service from three train lines

and is adjacent to a shopping mall

 Attractive common facilities for the residents including party room , anOnsen(Hot spring)/Sauna, a gym and library The Tower was developed by Daiwa House as part of the Minami‐Senju masterredevelopment project

Anticipated Acquisition PriceAppraisal Value
Appraisal NOI yield2
Address

Completion Date
Rentable Units
Rentable Area

JPY 21,879mn
JPY 22,100mn
5.4%
Minami‐Senju 4‐chome, Arakawa‐ku, Tokyo
5 minute walk from Minami‐Senju Station(Tokyo Metro Hibiya Line, JR Joban Line,Tsukuba Express Line)May 2008
557 (Apartments 555, Nursing home1, Shop1)1
39,113.46m2

Land Area

8,738.44m2

AccessRoyal Parks Seasir Minami‐Senju

10 minute walk to Minami‐Senju Station with service from three train lines
Master‐leased on a fixed rent basis to Daiwa Living, a subsidiary of Daiwa House
113 units, high quality residential asset with concierge available at the front desk
Unit size ranging from approximately 40m2 to approximately 120m2, targeting
singles, DINKS3 and families
Anticipated Acquisition PriceAppraisal Value
Appraisal NOI yield2

JPY 2,683mn
JPY 2,710mn
5.3%

Address

Minami‐Senju 3‐chome, Arakawa‐ku, Tokyo

Access10 minute walk from Minami‐Senju Station(Tokyo Metro Hibiya Line, JR Joban Line,Tsukuba Express Line)

Completion Date

August 2006

Rentable Units

113

Rentable Area6,496.86m2

Land Area

3,570.00m2(Note 1) The nursing home and the shop are counted as 1 unit, respectively, for the counting of the number of units(Note 2) Appraisal NOI yield is calculated by dividing the NOI derived from the direct capitalization method in appraisal reports by anticipated acquisition price and the percentage is rounded to one decimal place(Note 3) Stands for “Double Income No Kids”

7