[For Information Purpose Only]
September 21, 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 August 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 3.3% for the December
2017 fiscal period (July to August 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 August 2017 (year-on-year) has shown
occupancy, ADR and RevPAR growth of 1.0pt, 2.9% and 4.2% respectively. Strong leisuredemand especially at regional hotels in Nagoya, Fukuoka, Kanazawa, Nasu and Utsunomiya
increased occupancy, ADR and RevPAR year-on-year.
The cumulative performance for the December 2017 fiscal period (July to August 2017) is asfollows: occupancy, ADR and RevPAR increased by 0.1pt, 1.2% and 1.4% respectively
compared to the same period in the previous year.
(Note 1) Based on 40 hotel properties stated in “4. Performance (1) 40 Hotel Properties” below.

3. Residential Assets Overview
The residential portfolio1 occupancy rate as of the end of August 2017 was 94.1% (-1.4ptyear-on-year), partly due to the change of lease contract from rent guarantee to pass-throughfor Royal Parks Momozaka effective on August 1, 2017. The rent increase program continues
This English language notice is a translation of the Japanese-language notice released on September 21, 2017 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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to maintain progress as average rent per tsubo as of the end of August 2017 increased by 1.9%
year-on-year.
Rents, compared with immediately preceding leases, increased by 3.7% across all new leases,
2.0% across all renewal leases and 2.8% across all combined new and renewal leases for theDecember 2017 fiscal period (cumulative).
INV achieved a rent increase for 61.7% of contract renewals (December 2017 fiscal period
cumulative), which is a significant increase of 22.6pt compared to 39.1% for the previous
calendar year. The retention rate for existing tenants remained high at 83.1% for the December
2017 fiscal period (cumulative).
While the rent increase program increased rental revenues by 0.3% in August 2017
year-on-year, NOI2 decreased by 0.3% as expenses related to leasing activities have increased
due to an increase in new lease contracts. However, NOI increased by a solid 0.4% for theDecember 2017 fiscal period (cumulative) compared to the same period in the previous year.
(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

92.7%
11,266
10,441Same month ofthe previous year(B)91.6%
10,946
10,0242,443
40

August 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)91.9%
10,5309,674

Difference(A－B)

YoY Change+1.0pt+319+417

+1.1%
+2.9%
+4.2%

2,332+111+4.8%

40――Same period of
the previous year6(D)Difference(C－D)

YoY Change

91.7%
10,4059,544+0.1pt
+125
+130

+0.2%
+1.2%
+1.4%

4,575

4,472+103+2.3%

4040―

―

This English language notice is a translation of the Japanese-language notice released on September 21, 2017 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

94.1%

Same month ofthe previous year
(B)
95.5%

9,716
70

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

Occupancy Rate
Rent per Tsubo(JPY)# of Properties

Fiscal period
ending December
2017 Cumulative5(C)94.3%

Difference(A－B)

YoY Change-1.4pt-1.5%

9,539+177+1.9%

70

―

―

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

YoY Change

95.6%-1.3pt

-1.3%

9,703

9,503

+199

+2.1%

70

70

―

―

(Note 1) Based on 40 hotel properties; of the 49 hotel properties in our portfolio as of the end of August 2017, 9 hotels with
fixed-rent lease agreements 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 JRUeno-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 performance includes the pre-acquisition
data for the properties acquired in 2016 and 2017, 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 as product of room occupancy rate andADR.
(Note 5) Figures from July 2017 to August 2017 are stated.
(Note 6) Figures from July 2016 to August 2016 are stated.
(Note 7) Based on 70 residential properties owned as of the end of August 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 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 September 21, 2017 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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