[For Information Purpose Only]
February 19, 2014
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Naoki Fukuda, Executive Director
Roppongi Hills Mori Tower, 6-10-1 Roppongi,
Minato-ku, Tokyo, Japan(Securities code: 8963)
URL: http: //www.invincible-inv.co.jp/eng/
Asset manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, President and CEO
Contact: Akiko Watanabe, Manager(Tel. +81-3-5411-2731)

Notice concerning Revision of Forecast of Financial Results and Distribution
for the 21st Fiscal Period Ended December 2013
Invincible Investment Corporation (INV) announces that it decided to revise its forecast of financial
results and distribution per unit for the fiscal period ended December 2013 (21st fiscal period: fromJuly 1, 2013 to December 31, 2013) announced in the press release titled “Notice concerning
Revision of Forecasted Financial Results for the 21st Fiscal Period Ending December 2013 andconcerning Forecasted Financial Results and Distribution per Unit for the 22nd Fiscal PeriodEnding June 2014” dated December 6, 2013, as described below. Further, there is no revision tothe forecast of financial results and distribution per unit for the fiscal period ending June 2014
(22nd fiscal period: from January 1, 2014 to June 30, 2014).
Details

1.

Revision of forecast of financial results for the 21st fiscal period (from July 1, 2013 to December31, 2013)
Operatingrevenues

Previous forecast (A)(December 6, 2013)
Revised forecast (B)Amount of Variance(B) – (A)Rate of variance[(B) − (A)] ÷ (A)(Reference)
Actual results(20th fiscal period)

OperatingincomeDistribution perunit

Ordinary
incomeNet income(excluding excess
profit distribution perunit) (Note 1)

Million JPY

Million JPY

Million JPY

Million JPY

JPY

2,740

1,213278

277

200

Million JPY

Million JPY

Million JPY

Million JPY

JPY

2,740

1,265

353352

237

Million JPY

Million JPY

Million JPY

Million JPY

JPY

05275

75

37%%%%%

0.0

4.3

27.0

27.1

18.5

Million JPY

Million JPY

Million JPY

Million JPY

JPY

2,760

1,231335

335

264This English language notice is a translation of the Japanese-language notice released on February 19, 2014 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

1Million JPY

Total
distribution
amountMillion JPY

037314JPY

Million JPY

Million JPY

020372Amount of Variance(B) – (A)JPY

Million JPY

Million JPY－-1658

Rate of variance[(B) − (A)] ÷ (A)%%%－-45.8

18.5

JPY

Million JPY

Million JPY

020355Previous forecast (A)(December 6, 2013)
Revised forecast (B)(Reference.)
Actual results(20th fiscal period)(Note 1)
(Note 2)

(Note 3)(Note 4)

2.

Excess profit
distribution perunit
JPY

Reversal ofsurplus

The number of investment units issued and outstanding at the end of the fiscal period: 1,573,179 units
Reversal of surplus (the gain on negative goodwill resulting from the merger on February, 2010 (the “Surplus”))(revised forecast) for the 21st fiscal period is calculated using the following formula:
The Surplus (JPY 20 million) = Total distribution amount (JPY 372 million) – Net income (JPY 352 million)
For the total distribution amount (JPY 372 million), please refer to “2. Reason for revision of forecast of financial
results and distribution for the 21st fiscal period ended December 2013” below.
Figures are rounded down to the indicated amount and percentages are rounded to first decimal place.

Reason for revision of forecast of financial results and distribution for the 21st fiscal period ended
December 2013
The financial results for the fiscal period ended December 2013 have generally been fixed
through the process of settlement of accounts for the relevant fiscal period, and no less than
5% change is expected in the forecast of the distribution per unit compared to the previous
forecast for the fiscal period ended December 2013 announced on December 6, 2013.
Accordingly INV hereby announces the revised forecast.
The main factors causing the changes to the forecast of the financial results and distribution perunit are as follows:(1) Decrease of Operating Expenses
Operating Expenses are expected to decrease by JPY 52 million (3.4%) from the previous
forecast because commission paid for new contracts and advertising expenses decreasedby JPY 24 million (24.4%), repair expenses and restitution costs decreased by JPY 19
million (17.2%), taxes and public dues decreased by JPY 6 million (46.9%) from theprevious forecast.
(2) Decrease of Non-operating Expenses
Non-operating Expenses are expected to decrease by JPY 22 million (1.7%) from theprevious forecast because the finance related costs and costs related to the issuance ofinvestment units, which were related to the Third-Party Allotment and the Refinancing
consummated on December 20, 2013 (Note 1), decreased by JPY 15 million (2.6%) andJPY 4 million (21.2%) respectively from the previous forecast.

This English language notice is a translation of the Japanese-language notice released on February 19, 2014 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

2(3) Satisfaction of dividend payment requirement
INV plans to distribute the total amount of net income of JPY 352 million plus the reversal ofSurplus of JPY 20 million for the 21st fiscal period ended December 2013 in order to satisfy thedividend payment requirement (Note 2).
As a result of (1) to (3) above, the total distribution amount will be JPY 372 million, and thedistribution per unit will be JPY 237, an increase of JPY 37 (18.5%) from the previous forecast.
(Note 1)For details of the Third-Party Allotment consummated on December 20, 2013, please refer to“Notice concerning Issuance of New Investment Units by way of Third-Party Allotment” as ofDecember 6, 2013, and for the details of the Refinancing, please refer to “Notice concerning Debt
Financing and Payment before Maturity of Existing Borrowings” as of December 6. 2013.
(Note 2) One of the conduit requirements is the dividend payment requirement, in which investment corporations
are required to distribute at least 90% of their distributable income (Note 3).
(Note 3) Amount of distributable income for the fiscal period ended December 2013 (JPY 412 million (*)) × 90% =JPY 371.3 million
Total distribution amount for the fiscal period ended December 2013 is JPY 372.8 million, which exceeds
the amount of JPY 371.3 million, calculated as above.
(*) Distributable income (JPY 412 million) = Net income before income tax (JPY 353 million) + Amortization ofnegative goodwill for each fiscal period (JPY 59 million) (**)(**) Amortization of negative goodwill for each fiscal period (JPY 59 million) = Gain on negative goodwill
accrued upon the merger (JPY 11,843 million) × (Number of months of fiscal period ÷ 1,200 months (***))(***) 1,200 months = 100 years × 12 months (1 year)

For the detail of the pre-conditions and assumptions underlying the changes and the forecasts,
please see the Appendix.
3.

Other: about Surplus
Following such revision of forecasted results, the balance of Surplus is expected to become
JPY 73 million (Previous forecast: JPY 56 million) after the distribution for the 21st fiscal period
ended December 2013.
Furthermore, the balance of Surplus after the distribution for the 22nd fiscal period ending June30, 2014 is not expected to change from the balance (JPY 73 million) after the distribution forthe 21st fiscal period ended December 2013.

4.

Future outlook
The financial summary announcement (Kessan-Tanshin) for the 21st fiscal period ended
December 2013 (from July 1, 2013 to December 31, 2013) is scheduled to be made on
February 26, 2014.

This English language notice is a translation of the Japanese-language notice released on February 19, 2014 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

3

(Appendix)<Pre-Conditions and Assumptions Underlying Distribution Forecasts, etc.
for the 21st Fiscal Period (From July 1, 2013 to December 31, 2013)>
ItemAssumptions

Fiscal period

The 21st fiscal period : from July 1, 2013 to December 31, 2013

Assets under management

As of the end of the 21st fiscal period: 78 properties

Units outstanding

As of the end of the 21st fiscal period: 1,573,179 units

Interest-bearing liabilities

Balance as of the end of the 21st fiscal period: JPY 41,310 million

Operating revenues

JPY 2,740 million of operating revenues are expected.
The breakdown is as follows:・Rental revenues JPY 2,740 million
JPY 1,261 million of property related expenses are expected.
The breakdown is as follows:・Facility management fees

Operating expenses

JPY 435 million(of these, JPY 28 million
are repair costs)
・Taxes and other public charges JPY 175 million
JPY 5 million
・Insurance expenses
JPY 116 million
・Other expenses
JPY 527 million
・Depreciation expenses

In addition, other than the property related expenses, INV expects it will incuroperating expenses of JPY 213 million.

Non-operating income

With respect to the exit fee that was recorded as unpaid expenses (finance relatedcosts) for the fiscal period ended December 2011, part of such exit fee (JPY 354million) is scheduled to be recorded as the profit of finance related cost adjustment.
JPY 1,267 million of non-operating expenses are expected.
The breakdown is as follows:

Non-operating expenses

JPY 672 million
・Interest expense
JPY 579 million
・Finance related costs
・Other non-operating expenses JPY 16 million(of these, JPY 15 million
are expenses for issuing newinvestment units for theThird Party Allotment)
The distribution per unit is calculated in accordance with the cash distribution policy
set forth in INV’s Articles of Incorporation.

Distribution per unit

Excess profit distribution
per unit

With respect to the distribution for the fiscal period ended December 2013, as asource of repayment, INV assumes it will pay the net income for the fiscal period
ended December 2013 and JPY 20 million, a part of the surplus based on the gain
on negative goodwill resulting from the merger, and plans to distribute JPY 372
million (JPY 237 per unit).
INV currently does not expect to make excess profit distributions (excess profit
distribution per unit).

This English language notice is a translation of the Japanese-language notice released on February 19, 2014 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

4

Item

OtherAssumptions
INV assumes there will be no amendments to laws and ordinances, the taxation
system, accounting standards and other regulations that will affect the foregoing
forecasts.
In addition, INV assumes there will be no unforeseen material changes in the market
environment, including general economic trends and real estate market conditions.

This English language notice is a translation of the Japanese-language notice released on February 19, 2014 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

5