[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
October 23, 2020
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Naoki Fukuda, Executive Director(Securities Code: 8963)
Asset Manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, President & CEO
Contact: Jun Komo
General Manager of Planning Department(Tel. +81-3-5411-2731)

Performance Update for September 2020
Invincible Investment Corporation (“INV”) hereby announces its monthly performance.
1. Overall Performance of the Entire Portfolio
Similar to the previous month, both the domestic and overseas hotel portfolios for September
2020 continue to be heavily affected by the decline in tourism and the economy from thecoronavirus (COVID-19), but we see signs of a gradual recovery as described below, while
the residential portfolio continues to generate increases in rent compared to the same periodof the previous year.
As for the 73 hotels that are operated by INV’s main tenant, MyStays Hotel Management
Co., Ltd. and its affiliates, the amount of the employment adjustment subsidy for September
2020 has not been determined as of today. As a result, GOP1 and NOI2,3 for September
2020 have not been determined yet.
The following are the details by segment.
2. Hotel Assets Overview(1) Domestic Hotels
The domestic hotel portfolio4 performance for the month of September 2020 has shown yearover-year declines in Occupancy of 40.7pt, ADR of 18.5%, and RevPAR of 56.1%. The
NOI3 for September 2020 is TBD as explained above.
The weak domestic hotel demand for September 2020 stems primarily from the pronounced
impact of the COVID-19 pandemic that has caused a significant reduction in demand forThis English language notice is a translation of the Japanese-language notice released on October 23, 2020 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 their owninvestigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances aregiven regarding the accuracy or completeness 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hotels due to the sharp decline in domestic and global travel. JNTO reported that inboundvisitors declined by 99.4% in September (year-over-year). Hotels located in regional areas
have shown relatively strong occupancy rates mainly over the weekends and Silver Week
holidays, which we believe is partially due to the effect of the Go To Travel campaign. Incontrast, hotels located in urban areas such as Tokyo and Osaka have shown relatively low
occupancy rates, as the domestic demand related to tourism and leisure has not recovered
enough to compensate for the absence of inbound demand. Demand for domestic
business trips has also been sluggish.
As for the temporary closure status of domestic hotels owned by INV, all hotels except one
have reopened as described in Appendix 1. APA Hotel Yokohama-Kannai has been used
as an accommodation and medical facility for people with mild COVID-19 cases sinceAugust 4, and is scheduled to be used as such until March 2021.
Although there is no certainty around the timing of the eradication of COVID-19 at this stage
and it will take time for hotel occupancy rate to recover in full swing, further recovery indomestic accommodation demand is expected as trips to and from Tokyo have been added
to the Go To Travel campaign on October 1. Therefore, we are forecasting RevPAR inOctober 2020 to decrease by approximately 50% year-over-year.
Table below shows the KPIs for each area of the 75 domestic hotels portfolio4.
AreaOccupancy Rate5ADR (JPY)6

RevPAR (JPY)7Tokyo 23 Wards

29.8%

5,152

1,537

Greater Tokyo (ex. Tokyo 23 Wards)

62.6%

9,109

5,700

Chubu

50.8%

7,039

3,573

Kansai

33.8%

4,293

1,451

Kyushu

48.3%

7,037

3,397

Hokkaido

51.6%

7,632

3,936

Other domestic

77.1%

15,154

11,689

Total

47.6%

8,082

3,848

(2) Cayman Hotels
The Cayman Hotels (the Westin Grand Cayman Seven Mile Beach & Spa ("Westin") andSunshine Suites Resort ("Sunshine")) were closed for the month of September 2020, withthe exception of the restaurants. On October 1, Owen Roberts International Airport inGrand Cayman reopened and resumed acceptance of foreign nationals limited to long-termstayers and second home owners. In response, Sunshine resumed operations fromOctober after being selected as one of the hotels for the Cayman Island government’s newhire isolation facilities, which will utilize approx. 25% of the rooms at Sunshine in Oct.
However, Westin is expected to remain closed, except for one restaurant, as it is likely totake some more time to resume acceptance of tourists in Grand Cayman.
This English language notice is a translation of the Japanese-language notice released on October 23, 2020 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 their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances aregiven regarding the accuracy or completeness 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The NOI3 for September 2020 and the NOI3 on a cumulative basis for the December 2020
fiscal period (July to December) decreased significantly year-over-year.
3. Residential Assets Overview
The residential portfolio8 in-place occupancy rate as of the end of September 2020 was
94.7%, a year-over-year decrease of 1.9pt. The rent increase program continues to show
positive results as the average in-place rent per tsubo as of the end of September 2020
increased by 0.3% year-over-year. NOI9 for the residential portfolio in September 2020
increased by 0.8% year-over-year and increased by 0.5% year-over-year on a cumulativebasis for the December 2020 fiscal period (July to December).
Rents, compared with those based on the immediately preceding leases, increased by 0.4%
for new leases, 1.1% for renewal leases, and 0.8% for new and renewal leases combinedfor the December 2020 fiscal period. INV achieved a rent increase on 36.3% of lease
contract renewals for the December 2020 fiscal period. The retention rate for the existing
tenants continues to be high at 84.4% for the December 2020 fiscal period.
4. Performance(1) 75 Domestic Hotel Properties4
Cumulative (Jul.-Dec.)
2019
(C－D)
(D)

Sep.
2020
(A)

Sep.
2019
(B)

(A－B)

YoY
ChangeOccupancy Rate5

47.6%

88.4%

-40.7pt-46.1%

43.7%

90.0%

-46.3pt-51.5%ADR (JPY)6

8,082

9,917

-1,835-18.5%

8,108

11,178-3,070-27.5%

RevPAR (JPY)7
Gross Revenue(JPY million)10

3,848

8,762-4,915-56.1%

3,541

10,056-6,515-64.8%

2,729

5,696-2,967-52.1%

7,382

19,036-11,654-61.2%

Sep.
2019
(B)

(A－B)

YoY
Change

2020
(C)

YoY
Change(2) Cayman Hotels
Sep.
2020
(A)

Cumulative (Jul.-Dec.)
2020
(C)

2019
(D)

(C－D)

YoY
Change

0.0%

42.1%

-42.1pt-100.0%

0.0%

67.8%

-67.8pt-100.0%ADR (USD)60

196

-196

-100.0%

0263

-263

-100.0%

RevPAR (USD)7-083---0178--Gross Revenue(USD thousand)

177

2,527-2,350-93.0%

547

14,894-14,346-96.3%

(A－B)

YoY
ChangeOccupancy Rate5(3) 60 Residential Properties8

Occupancy Rate
Rent per Tsubo(JPY)

Sep.
2020
(A)

Sep.
2019
(B)

94.7%

96.6%

-1.9pt9,097

9,074+23

Cumulative (Jul.-Dec.)
2020
(C)

2019
(D)

(C－D)

YoY
Change

-1.9%

94.7%

96.5%

-1.7pt

-1.8%

+0.3%

9,132

9,073

+59+0.7%

This English language notice is a translation of the Japanese-language notice released on October 23, 2020 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 their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances aregiven regarding the accuracy or completeness 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5. Portfolio NOI
2019 Simulated

NOI2,3 (JPY million)

NOI11
September(JPYmillion)

Ratio

2020

Cumulative (Jul.-Dec.)
YoY2019

Change2020

YoY2019

ChangeTokyo 23 Wards

5,980

19.4%

------

Greater Tokyo (ex. Tokyo 23 Wards)

4,094

13.3%

------

Greater Tokyo – Subtotal

10,07532.7%------

Chubu

2,791

9.1%

------

Kansai

1,775

5.8%

------

Kyushu

2,315

7.5%

------

Hokkaido

3,442

11.2%

------

Other domestic

2,700

8.8%

------

Domestic Hotel – Subtotal

23,10075.0%------

Residential

3,281

10.6%

275

273

+0.8%

824

819

+0.5%

Commercial

368

1.2%

30

30+0.1%

9292

-0.7%

Domestic Asset – Subtotal

26,75086.8%------

Overseas

4,070

13.2%

-116

-17-

-402

428

-

Total

30,820100.0%------(Note 1) GOP means the gross operating profit, and is the amount remaining after deducting costs of hotel operations (thepersonnel, utility and advertising expenses and other expenses) and the management services fee to operators (if any)
from the hotel’s revenues.
(Note 2) Based on all properties held as of the end of September 2020, excluding 9 hotels with fixed-rent lease agreements. 9hotels 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. NOI includes a simulated amount of dividend income from Kingdom TMK (the “TMK”) that owns Sheraton
Grande Tokyo Bay Hotel as an underlying asset. The fiscal periods of the TMK are semi-annual periods from April 1 toSeptember 30 and from October 1 to March 31 every year, and INV will receive the dividend within three months from theend of each semi-annual fiscal period of the TMK. Since INV does not receive a dividend from the TMK on a monthly
basis, the amount of dividend INV receives from the TMK for each month is a simulated figure, which is calculated bydeducting (i) simulated expenses such as operating expense of the TMK and the interest of debt (calculated dividing thebudget of the TMK for the fiscal period that includes the relevant month by the number of months in such fiscal period)
from (ii) NOI based on the performance of Sheraton Grande Tokyo Bay Hotel in the month which is three months before
the target month for this performance disclosure and multiplied by INV’s ownership ratio of the preferred equity interest in
the TMK (49.0%). The revenue from the Cayman Hotels is calculated at the exchange rate of US$1 to ¥110.
Furthermore, NOI is provisional figure and subject to change when it is determined at financial closing; hereinafter thesame.
(Note 3) NOI figures before acquisition by INV is based on the data obtained from third-parties including previous owners, and are
subject to change caused by the adjustments based on differences in accounting treatments, since it is difficult to adjust
them due to the timing even if the figures are based on actual performance; hereinafter the same.
(Note 4) Based on 75 hotel properties; of the 84 domestic hotel properties (including Sheraton Grande Tokyo Bay Hotel, theunderlying asset of preferred equity interest held by INV) held as of the end of September 2020, 9 hotels with fixed-rentlease agreements are excluded. As for Sheraton Grande Tokyo Bay hotel, NOI is based on the figure for the monthwhich is three months prior to the target month for this performance disclosure as INV will receive the dividend from theTMK within three months of each fiscal period end for the TMK as described above. However, in consideration ofThis English language notice is a translation of the Japanese-language notice released on October 23, 2020 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 their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances aregiven regarding the accuracy or completeness 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seasonality, figures other than NOI in the table above are based on the figures for September 2020; hereinafter the same.
(Note 5) “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 6) “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 7) “RevPAR,” or Revenues Per Available Room, is calculated by dividing the total room sales for a certain period by theaggregate number of rooms for the same period (rooms x number of days), and is the same as product of room occupancy
rate and ADR. However, RevPAR for Cayman Hotels in September was negative because of a reversal of account ofroom sales to refund payments to guests and other factors caused by the closure of the hotels.
(Note 8) Based on 60 properties held by INV as of the end of September 2020.
(Note 9) NOI excludes one-off insurance-related revenues and expenses.
(Note 10) Gross Revenue of Sheraton Grande Tokyo Bay Hotel used in the table is the whole gross revenue of such hotel, regardlessof INV’s ownership ratio of the preferred equity interest in the TMK (49.0%).
(Note 11) Based on 148 properties owned by INV as of the end of September 2020, assuming all properties were owned since thebeginning of 2019. Includes the dividend from preferred equity interest of TMK that owns Sheraton Grande Tokyo Bay
Hotel, assuming this dividend contributed throughout the June 2019 fiscal period and the December 2019 fiscal period ofINV. The revenue from the Cayman Hotels is calculated at the exchange rate of US$1 to ¥110.
(Note 12) Percentages are rounded to one decimal place. ADR, RevPAR and Rent per Tsubo are rounded to the nearest yen andGross Revenue is rounded down to the nearest million yen.
(Note 13) 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 sum of the total rental revenue including common area charges for each month by the sum of
total leased area (tsubo) at the end of each month.
(Note 14) For the details of performance for each hotel asset, please visit INV’s website:
https://www.invincible-inv.co.jp/en/portfolio/hotel.html

Website of INV: https://www.invincible-inv.co.jp/en/

This English language notice is a translation of the Japanese-language notice released on October 23, 2020 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 their owninvestigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances aregiven regarding the accuracy or completeness 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(Appendix 1)<Temporary Closure Status of Hotels Owned by INV>
Property
Number

Property Name

Location

Closed Date

End Date ofClosing Period

D79

MyCUBE by MYSTAYS
Asakusa Kuramae

Taito-ku,Tokyo

March 8TBD

D200Westin Grand Cayman Seven
Mile Beach Resort & Spa

Cayman Islands

March 22

TBD

D201

Sunshine Suites Resort

Cayman Islands

March 22

September 30

Hotel That Consolidates
Operations During Close

D3

Hotel MyStays Kyoto-Shijo

Kyoto-shi, Kyoto

May 1

June 30

D44

Hotel Epinard Nasu

Nasu-gun,Tochigi

April 28

May 31

D48

Takamatsu Tokyu REI Hotel

Takamatsu-shi,
KagawaApril 25

May 31

D53

Hotel MyStays
Sapporo Station

Sapporo-shi,
Hokkaido

March 18

July 17

D65

Art Hotel Ishigakijima

Ishigaki-shi,
Okinawa

April 20

May 31

D66

Hotel MyStays Fuji
Onsen Resort

Fujiyoshida-shi,
Yamanashi

May 1

June 11

D68

Hotel MyStays
Kanazawa Castle

Kanazawa-shi,Ishikawa

April 13

June 30

Hotel MyStays PremierKanazawa

D71

Hotel Nord Otaru

Otaru-shi,
HokkaidoMarch 18

June 30

Hotel Sonia Otaru

D75

Hotel MyStays
Sapporo Susukino

Sapporo-shi,
Hokkaido

March 18

July 17

D76

Hotel Mystays
Sapporo Nakajima Park

Sapporo-shi,
Hokkaido

March 18

July 17

D77

Hotel MyStays
Sapporo Nakajima Park Annex

Sapporo-shi,
Hokkaido

March 6

July 17-

Sheraton GrandeTokyo Bay Hotel

Urayasu-shi,
Chiba

April 28

June 29

Hotel MyStays
Sapporo Aspen-

Hotel MyStays Premier
Sapporo Park-

This English language notice is a translation of the Japanese-language notice released on October 23, 2020 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 their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances aregiven regarding the accuracy or completeness 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.

6