[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
August 23, 2019
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, CEOContact: Jun Komo
General Manager of Planning Department(Tel. +81-3-5411-2731)

Performance Update for July 2019
Invincible Investment Corporation (“INV”) hereby announces its monthly performance.
1. Overall Performance of the Entire Portfolio
The overall Portfolio NOI1,2 for July 2019 (including the assets acquired in July 2019, hereafterthe same) decreased by 5.5% compared to the same month in 2018. The decline in NOI
stems from several issues affecting the Japan hotel and tourism market in July. First, there
was a prolonged rainy season that adversely impacted leisure demand. Second, the Japan Korea trade frictions increased resulting in fewer inbound travelers from Korea. Third, a strikefrom EVA Air employees reduced inbound from Taiwan. And fourth, large scale protest
demonstrations in Hong Kong reduced air traffic from Hong Kong. Separately, in terms ofdomestic demand, the 10-day Golden Week period may have reduced some demand for travel
during the long weekend in July.
The following are the details by segment.
2. Hotel Assets Overview(1) Domestic Hotels
The domestic hotel portfolio3 performance for the month of July 2019 has shown declines inADR, Occupancy and RevPAR of -3.0%, -0.6pt and -3.6% year-on-year, respectively, due
to the reasons mentioned above. The July 2019 NOI declined by -7.8% year-on-year.

This English language notice is a translation of the Japanese-language notice released on August 23, 2019 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.

1

Table below shows the KPIs for each area of the domestic hotel portfolio3.
Pre-offering (55 properties4)
Area

Occupancy Rate7

ADR (JPY)8

RevPAR (JPY)9Tokyo 23 Wards

92.8%

8,541

7,928

Greater Tokyo (ex. Tokyo 23 Wards)

91.1%

12,591

11,473

Chubu

85.3%

7,835

6,687

Kansai

86.2%

8,261

7,121

Kyushu

92.5%

8,491

7,857

Hokkaido

91.6%

14,54813,322Other domestic

91.3%

20,155

18,407

Total

90.8%

10,437

9,473

Post-offering (71 properties3)
Area

Occupancy Rate7

ADR (JPY)8

RevPAR (JPY)9Tokyo 23 Wards

92.9%

8,303

7,711

Greater Tokyo (ex. Tokyo 23 Wards)

91.2%

12,344

11,256

Chubu

85.7%

9,107

7,803

Kansai

86.2%

8,261

7,121

Kyushu91.9%

10,5809,728

Hokkaido

91.7%

15,822

14,512Other domestic

88.9%

17,80915,836

Total

90.5%

11,0259,981(2) Cayman Hotels
The Cayman Hotels (the Westin Grand Cayman Seven Mile Beach & Spa and Sunshine
Suites Resort) continue to perform well. ADR increased by 12.9%, Occupancy declinedby -2.9% and RevPAR increased by 9.7%.
The NOI (direct ownership basis, hereafter the same) for the month of July 2019 increased
by 5.3% year-on-year (which is included in the calculation of the overall Portfolio NOI for
July 2019 as stated in “1. Overall Performance of the Entire Portfolio” on page 1).
3. Residential Assets Overview
The residential portfolio5 in-place occupancy rate as of the end of July 2019 was 96.4%, ayear-on-year increase of +0.5 pt. The rent increase program continues to show positive
results as the average in-place rent per tsubo as of the end of July 2019 increased by 0.2%
year-over-year. NOI6 for the residential portfolio in July 2019 increased by 0.5%
year-on-year.
This English language notice is a translation of the Japanese-language notice released on August 23, 2019 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

Rents, compared with those based on the immediately preceding leases, increased by
0.8% across all new leases, 1.1% across all renewal leases, and 1.0% across all combined
new and renewal leases for the December 2019 fiscal period.
INV achieved a rent increase on 32.4% of lease contract renewals (December 2019 fiscalperiod). The retention rate for the existing tenants continues to be high at 79.8% for theDecember 2019 fiscal period.
4. Performance(1) 55 Domestic Hotel Properties4

90.8%

Same month of theprevious year
(B)
91.4%

10,437

July 2019(A)
Occupancy Rate7
ADR (JPY)

8

Difference(A－B)

YoY Change-0.6pt-0.7%

10,890

-453

-4.2%

9,473

9,953

-480

-4.8%

4,425

4,689

-263

-5.6%

5555――

90.5%

Same month of theprevious year
(B)
91.1%

11,025

9

RevPAR (JPY)
Gross Revenue(JPY million)10# of Properties(2) 71 Domestic Hotel Properties3

July 2019(A)
Occupancy Rate7
ADR (JPY)

89

RevPAR (JPY)
Gross Revenue(JPY million)10# of Properties

Difference(A－B)

YoY Change-0.6pt-0.6%

11,365-340

-3.0%

9,981

10,352-371

-3.6%

5,757

5,984-226-3.8%7171――

86.9%

Same month of theprevious year
(B)
89.4%

304

(3) Cayman Hotels
July 2019(A)
Occupancy Rate7
ADR (USD)

89

RevPAR (USD)
Gross Revenue(USD)# of Properties

Difference(A－B)

YoY Change-2.6pt-2.9%

269

35+12.9%

264

241

23

+9.7%

7,190,138

6,707,909

482,229

+7.2%

22――

This English language notice is a translation of the Japanese-language notice released on August 23, 2019 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.

3(4) 62 Residential Properties5
Same month of theprevious year
(B)

July 2019(A)

Difference(A－B)

YoY Change

Occupancy Rate

96.4%

95.8%

+0.5pt+0.5%

Rent per Tsubo(JPY)

9,381

9,367+14+0.2%# of Properties

6262――

5. Portfolio NOI
Pre-offering (130 properties)
2018 Simulated NOI13Ratio(JPY million)

Tokyo 23 Wards
Greater Tokyo(ex. Tokyo 23 Wards)

Greater Tokyo -NOI14,2 (JPY million)
July

July

YoY

2019

2018

Change

6,388

23.5%

454

524

-13.3%

3,568

13.1%

262

270

-3.1%

9,957

36.6%

717

795

-9.8%

Domestic

Subtotal

Hotel

Chubu

1,456

5.4%

90104

-13.1%

Kansai

2,227

8.2%

129173-25.5%

Kyushu

1,649

6.1%

95108

-11.8%

Hokkaido

1,479

5.4%

220228-3.5%

Other domestic

2,181

8.0%

199

199-0.2%

Domestic Hotel – Subtotal

18,951

69.7%

1,451

1,608

-9.8%

Residential

5,098

18.7%

298

296

0.5%

Commercial

368

1.4%

3030

0.2%

Domestic Asset- Subtotal

24,417

89.8%

1,781

1,936

-8.0%

Overseas

2,782

10.2%

302

287

5.3%

Total

27,200100.0%

2,083

2,223-6.3%

This English language notice is a translation of the Japanese-language notice released on August 23, 2019 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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Post-offering (148 properties)
2018 Simulated NOI13Ratio(JPY million)

NOI1,2 (JPY million)
JulyJuly

YoY20192018

ChangeTokyo 23 Wards

6,450

21.6%

458

528

-13.2%

Greater Tokyo

3,635

12.2%

268

275

-2.7%

10,086

33.8%

727

804

-9.6%

(ex. Tokyo 23 Wards)

Greater Tokyo Domestic

Subtotal

HotelChubu

2,857

9.6%

192

208

-7.7%

Kansai

2,227

7.5%

129

173

-25.5%

Kyushu

2,406

8.1%

202

225

-10.4%

Hokkaido

3,179

10.7%

532

539

-1.2%

Other domestic

2,363

7.9%

213

214

-0.4%

Domestic Hotel – Subtotal

23,119

77.5%

1,997

2,166-7.8%

Residential

3,555

11.9%

298

296

0.5%

Commercial

368

1.2%

30300.2%

Domestic Asset- Subtotal

27,043

90.7%

2,326

2,493

-6.7%

Overseas

2,782

9.3%

302

287

5.3%

Total

29,826100.0%

2,628

2,780

-5.5%

(Note 1) Based on all properties held as of the end of July 2019, excluding (i) 9 hotels with fixed-rent lease agreements and (ii)
D70 Hotel MyStays Nagoya Nishiki and D75 Hotel MyStays Sapporo Susukino which do not have comparable
performance figure for the previous year. 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, D42Comfort Hotel Kitami, and D48 Takamatsu Tokyu REI Hotel. NOI includes a simulated amount of dividend income fromKingdom TMK (the “TMK”) that owns Sheraton Grande Tokyo Bay Hotel as an underlying asset. The fiscal periods ofthe TMK are semi-annual periods from April 1 to September 30 and from October 1 to March 31 every year, and INV will
receive the dividend within three months from the end of each semi-annual fiscal period of the TMK. Since INV does notreceive a dividend from the TMK on a monthly basis, the amount of dividend INV receives from the TMK for each month isa simulated figure, which is calculated by deducting (i) simulated expenses such as operating expense of the TMK and
the interest of debt (calculated dividing the budget of the TMK for the fiscal period that includes the relevant month by thenumber of months in such fiscal period) from (ii) NOI based on the performance of Sheraton Grande Tokyo Bay Hotel inthe month which is three months before the target month for this performance disclosure and multiplied by INV’sownership 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, which is the exchange rate fixed by the acquisition of puts and selling calls,
covering approximately 85% of expected cash flow through December 31, 2020. Furthermore, NOI is provisional figureand subject to change when it is determined at financial closing; hereinafter the same.
(Note 2) NOI figures before acquisition by INV is based on the data obtained from third-parties including previous owners;
hereinafter the same.
(Note 3) Based on 71 hotel properties; of the 82 domestic hotel properties (including Sheraton Grande Tokyo Bay Hotel, theunderlying asset of preferred equity interest held by INV) held as of the end of July 2019, (i) 9 hotels with fixed-rent leaseagreements and (ii) (D70 Hotel MyStays Nagoya Nishiki and D75 Hotel MyStays Sapporo Susukino which do not havecomparable performance figure for the previous year are excluded.
As for Sheraton Grande Tokyo Bay hotel, NOI isbased on the figure for the month which is three months prior to the target month for this performance disclosure as INV
will receive the dividend from the TMK within three months of each fiscal period end for the TMK as described above.
However, in consideration of seasonality, figures other than NOI in the table above are based on the figures for July 2019;
hereinafter the same.
(Note 4) Based on 55 hotel properties; of the 64 domestic hotel properties (including Sheraton Grande Tokyo Bay Hotel, theunderlying asset of preferred equity interest held by INV) held as of the end of July 2019, 9 hotels with fixed-rent leaseagreements are excluded.
This English language notice is a translation of the Japanese-language notice released on August 23, 2019 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.

5(Note 5) Based on 62 properties held as of the beginning of July 2019.
(Note 6) NOI excludes one-off insurance-related revenues and expenses, as well as expenses required to detach trust beneficiaryinterest from an integrated trust account.
(Note 7) “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 8) “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 9) “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 10) Gross Revenue of Sheraton Grande Tokyo Bay Hotel used in the table is the whole gross revenue of such hotel,
regardless of INV’s ownership ratio of the preferred equity interest in the TMK (49.0%)(Note 11) Figures for July 2019 are stated.
(Note 12) Cumulative occupancy rate for residential portfolio is calculated by dividing the sum of total leased area by the sum oftotal 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.
(Note 13) Based on either (i) 130 properties owned by INV as of the beginning of July 2019, or (ii) 148 properties owned by INV asof the end of July 2019, assuming all properties were owned since the beginning of 2018. Includes the dividends frompreferred equity interest of TMK that owns Sheraton Grande Tokyo Bay Hotel and estimated TK dividend backed by twoCayman hotels, assuming these dividends contributed throughout the June 2018 fiscal period and the December 2018
fiscal period of INV. Actual results for the pre-acquisition period of the properties acquired in 2018 are based on actual
results provided by sellers. The revenue from the Cayman Hotels is calculated at the exchange rate of US$1 to ¥110,
which is the exchange rate fixed by the acquisition of puts and selling calls, covering approximately 85% of expected cash
flow through December 31, 2020.
(Note 14) Based on properties held as of the beginning of July 2019, excluding 9 hotels with fixed-rent lease agreements.
(Note 15) 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 16) For the details of performance for each asset, please visit INV’s website:
http://www.invincible-inv.co.jp/eng/cms/review.html

Website of INV: http://www.invincible-inv.co.jp/eng/

This English language notice is a translation of the Japanese-language notice released on August 23, 2019 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.

6