[For Information Purpose Only.
The Japanese language press release should be referred to as the original.]
July 18, 2024
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)

Notice concerning Revision of Forecast of Financial Results and Distribution for
the 42nd Fiscal Period Ended June 2024 and the 43rd Fiscal Period Ending December 2024
as well as Forecast of Financial Results and Distribution for
the 44th Fiscal Period Ending June 2025
Invincible Investment Corporation (“INV”) today announced the revision of its forecast of financial
results and distribution for the fiscal period ended June 2024 (42nd Fiscal Period: from January 1,
2024 to June 30, 2024) and the fiscal period ending December 2024 (43rd Fiscal Period: from July
1, 2024 to December 31, 2024) as announced in “Financial Summary for the December 2023 Fiscal
Period” dated February 26, 2024, together with the newly announced forecast of financial results
and distribution for the fiscal period ending June 2025 (44th Fiscal Period: from January 1, 2025 toJune 30, 2025).
1.

Revision of the forecast of financial results and distribution for the fiscal period ended June
2024 (from January 1, 2024 to June 30, 2024) and the fiscal period ending December 2024
(from July 1, 2024 to December 31, 2024) and the forecast of financial results and distribution
for the fiscal period ending June 2025 (from January 1, 2025 to June 30, 2025)<Fiscal Period Ended June 2024>

Previous forecast (A)(announced on
February 26, 2024)
Revised forecast (B)Amount of Variance(B) – (A)Operating
Revenues

Operating
IncomeOrdinary
Income

JPY million

JPY million

JPY million

JPY million

Total
Distribution
Amount
JPY million

20,19913,717

11,887

11,886

11,904

JPY million

JPY million

JPY million

JPY million

JPY million

20,87914,441

12,684

12,683

12,699

JPY million

JPY million

JPY million

JPY million

JPY million

679

724

796

796

794

Net Income

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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Rate of variance((B) – (A)) / (A)

%

%

%

%

%

3.4

5.3

6.7

6.7

6.7

Distribution
per Unit
Earnings per
Unit (Note 1,2,3)

Previous forecast (A)(announced on
February 26, 2024)
Revised forecast (B)Amount of Variance(B) – (A)Rate of variance((B) – (A)) / (A)(Excluding
Excess Profit
Distribution perUnit) (Note 1,2,3)

Excess Profit
Distribution
per Unit(Note 1)

Distribution
per Unit(Including Excess
Profit Distribution
per Unit) (Note
1,3)

JPY

JPY

JPY

JPY

1,764

1,767

-

1,767

JPY
1,882
JPY
118
%
6.7

JPY
1,885
JPY
118
%
6.7

JPY
JPY
%
-

JPY
1,885
JPY
118
%
6.7

(Note 1) The total number of investment units issued and outstanding at the end of the fiscal period: 6,737,121 units.
(Note 2) The difference between the Earnings per Unit and Distribution per Unit (Excluding Excess Profit Distribution per Unit) is due
to distribution from accumulated retained earnings. Please refer to Appendix 1 < Assumptions Underlying the Forecast of
Financial Results and Distributions for the Fiscal Periods ended June 2024 (42nd Fiscal Period), ending December 2024
(43rd Fiscal Period) and ending June 2025 (44th Fiscal Period) > “Distribution per unit” and “Excess profit distribution perunit” for details.
(Note 3) As for the Fiscal Period ended June 2024, the amount of dividend income received from the TMK (“TMK”) that owns Sheraton
Grande Tokyo Bay Hotel (“SGTB”) (in which INV owns a preferred equity interest) is expected to be equivalent to the amountof dividends for 12 months (calculation period: April 2023-March 2024), which is 6 months longer than the usual calculation
period. This is due to the temporary adjustment of the financial period of the TMK which was caused by the COVID 19related decrease of revenue from the underlying asset, SGTB, resulting in the TMK recording cumulative losses. Assumingthat we record theoretical estimated dividend income from the TMK for the six month-period ended March 2024 (i.e.,
assuming that the financial period was not temporarily adjusted), forecasted Earnings per Unit would be JPY 1,826,
forecasted Distribution per Unit (Excluding Excess Profit Distribution per Unit) would be JPY 1,829, and forecasted
Distribution per Unit (Including Excess Profit Distribution per Unit) would be JPY 1,829. Please note that these theoreticalestimated amounts are calculated assuming that the financial period was not temporarily adjusted as described above, andas such amounts differ from the actual forecast of the amount of distribution. Please refer to Appendix 3 <Simulated Earnings
per Unit, Distribution per Unit (Excluding Excess Profit Distribution per Unit), and Distribution per Unit (Including Excess Profit
Distribution per Unit) for Fiscal Period ended June 2024 (42nd Fiscal Period), assuming that the financial period was not
temporarily adjusted for the TMK> for details.

<Fiscal Period Ending December 2024>

Previous forecast (A)(announced on
February 26, 2024)
Revised forecast (B)Amount of Variance(B) – (A)Operating
Revenues

Operating
IncomeOrdinary
Income

JPY million

JPY million

JPY million

JPY million

Total
Distribution
Amount
JPY million

20,255

13,509

11,699

11,698

11,715

JPY million

JPY million

JPY million

JPY million

JPY million

23,720

16,235

13,71913,71813,733

JPY million

JPY million

JPY million

JPY million

JPY million

3,464

2,725

2,019

2,019

2,018

Net Income

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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

Rate of variance((B) – (A)) / (A)

%

%

%

%

%

17.1

20.2

17.3

17.3

17.2

Distribution
per Unit
Earnings per
Unit (Note 1,2,3)

Previous forecast (A)(announced on
February 26, 2024)(Excluding
Excess Profit
Distribution perUnit) (Note 1,2,3)

Excess Profit
Distribution
per Unit(Note 1)

Distribution
per Unit(Including Excess
Profit Distribution
per Unit) (Note
1,3)

JPY

JPY

JPY

JPY

1,736

1,739

-

1,739

JPY

JPY

JPY

JPY

1,786

1,789

-

1,789

JPY

JPY

JPY

JPY

50

50

-

50

%

%

%

%

2.9

2.9

-

2.9

Revised forecast (B)Amount of Variance(B) – (A)Rate of variance((B) – (A)) / (A)(Note 1) The total number of investment units issued and outstanding at the end of the fiscal period: 6,737,121 units (previous
forecast) and 7,676,871 units (revised forecast).
(Note 2) The difference between the Earnings per Unit and Distribution per Unit (Excluding Excess Profit Distribution per Unit) is due
to distribution from accumulated retained earnings. Please refer to Appendix 1 < Assumptions Underlying the Forecast of
Financial Results and Distributions for the Fiscal Periods ended June 2024 (42nd Fiscal Period), ending December 2024
(43rd Fiscal Period) and ending June 2025 (44th Fiscal Period)> “Distribution per unit” and “Excess profit distribution per unit”
for details.
(Note 3) Assuming that the amount of dividend income to be received from the TMK that owns SGTB (in which INV owns a preferred
equity interest) is expected to be for the usual calculation period of 6 months.

<Fiscal Period Ending June 2025>

Forecast

OperatingOperating

Ordinary

Revenues

IncomeIncome

JPY million

JPY million

JPY million

JPY million

JPY million

24,247

16,704

14,468

14,467

14,486

Distribution
per Unit
Earnings per
Unit (Note 1,2,3)

Forecast(Excluding
Excess Profit
Distribution perUnit) (Note 1,2,3)

Net Income

Excess Profit
Distribution
per Unit(Note 1)

Total
Distribution

Distribution
per Unit(Including Excess
Profit Distribution
per Unit) (Note
1,3)

JPY

JPY

JPY

JPY

1,884

1,887

-

1,887

(Note 1) The total number of investment units issued and outstanding at the end of the fiscal period: 7,676,871 units.
(Note 2) The difference between the Earnings per Unit and Distribution per Unit (Excluding Excess Profit Distribution per Unit) is due toThis English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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distribution from accumulated retained earnings. Please refer to Appendix 1 < Assumptions Underlying the Forecast of
Financial Results and Distributions for the Fiscal Periods ended June 2024 (42nd Fiscal Period), ending December 2024 (43rd
Fiscal Period) and ending June 2025 (44th Fiscal Period)> “Distribution per unit” and “Excess profit distribution per unit” fordetails.
(Note 3) Assuming that the amount of dividend income to be received from the TMK that owns SGTB (in which INV owns a preferred
equity interest) is expected to be for the usual calculation period of 6 months.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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

(Reference)
Assumptions underlying the revision of the forecast of financial results and distribution for the fiscal period
ended June 2024 (42nd Fiscal Period) and the fiscal period ending December 2024 (43rd Fiscal Period) as
well as the forecast of financial results and distribution for the fiscal period ending June 2025 (44th Fiscal
Period) are provided in Appendix 1.
Simulated Distribution per Unit (“DPU”) for the fiscal period ending December 2024 are shown for reference
purposes, which are calculated by applying adjustments, as the DPU for the fiscal period ending December
2024 will be affected due to acquisition of properties announced as of July 18, 2024 (the “AnticipatedAcquisitions”) (Note 1), the issuance of new investment units through the public offering (The “Public Offering”)
and the third party allotment (Note 2) announced as of July 18, 2024 and the new borrowings (the “Borrowings”)(Note 3) announced as of July 18, 2024 (collectively, the “Transactions”), assuming that all Transactions had
occurred prior to the commencement of the fiscal period ending December 2024 without one-time
gains/expenses, etc. incurred in the fiscal period. For details on the method for calculation and figures ofsimulated DPU, please refer to Appendix 2.
(Note 1)
(Note 2)

(Note 3)The Anticipated Acquisitions refers to the anticipated acquisition of the 12 domestic hotel properties announced in thepress release “Notice concerning Acquisition and Lease of Domestic Trust Beneficiary Interests” dated July 18, 2024.
The Public Offering refers to the issuance of new investment units through the public offering (the “Primary Offering”)
and the third party allotment (the “Third Party Allotment”, and the together with the Primary Offering, the “Public Offering”)
announced in the press release “Notice concerning Issuance of New Investment Units and Secondary Offering ofInvestment Units” dated July 18, 2024.
The Borrowings refer to the new borrowings announced in the press release “Notice concerning Debt Financing” dated
July 18, 2024.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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2. Reasons for the revision and announcement of forecast of financial results and distribution
As announced in the press releases “Notice concerning Acquisition and Lease of Domestic Trust BeneficiaryInterests”, “Notice concerning Debt Financing” and “Notice concerning Issuance of New Investment Unitsand Secondary Offering of Investment Units” dated July 18, 2024, INV expects to conduct the Public
Offering as well as Borrowings for the Anticipated Acquisitions on July 31, 2024. Due to the acquisitionof the properties and other transactions mentioned above, the operating revenue for the fiscal period
ending December 2024 is expected to change. Therefore, INV is revising the forecast of financial results
and distributions for the fiscal period ending December 2024.
INV decided to revise the forecast of financial results and distribution for the fiscal period ended June
2024 based on the performance of the existing portfolio as of today, and to announce the forecast offinancial results and distribution for the fiscal period ending June 2025 upon a series of deliberation
based on the information currently available to INV and certain assumptions that INV deems reasonable,with the current status of operation reflected.
3.

Policy for excess profit distribution, etc.

INV believes maintaining the stability of cash distributions over the medium term is one of the mostimportant factors in determining the amount of distribution for a given fiscal period, and therefore, INV
has adopted the policy to make excess profit distribution or reversal of retained earnings (“excess profit
distribution, etc.” together with excess profit distribution hereinafter) in order to stabilize distributions, incases where dilution of investment units or significant expenses are to be recorded in connection with,among other things, the acquisition of assets or the raising of capital, leading to a temporary decreasein distribution per unit, taking into consideration the level of distribution per unit assuming suchacquisition of assets or capital raising had contributed for a full fiscal period .
INV may also consider making excess profit distribution, etc. for the purpose of mitigating the impact ofcorporate tax increases arising from different rules and practices in tax and accounting, such astreatment on depreciation of fixed term land lease or asset retirement obligation.
Simulated DPU for the fiscal period ending December 2024 is JPY 1,754, which is calculated by applying
adjustments listed in Appendix 2. For the other assumptions, please refer to Appendix 1.
With respect to the fiscal period ending December 2024, though the one-time expenses for the Public Offeringand the Borrowings is recorded, the revenue increase due to the Anticipated Acquisitions exceeds theexpenses, and thus the impact on Earning per Unit is limited. Therefore, DPU is decided based on Earningper Unit (JPY 1,786), not Simulated DPU (JPY 1,754). Further, “Excess profit distribution for standardizationof the distribution” will not be offered.
On the other hand, with respect to the fiscal period ended June 2024, the fiscal period ending December
2024 and the fiscal period ending June 2025, INV plans to pay distributions through reversal of retained
earnings (internal reserve) as “Excess profit distribution, of the amount of difference arising fromdifferences in tax and accounting processing”.
This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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

4.

Reasons for Forecast Revision

The revised DPU forecast for the fiscal period ended June 2024 is JPY 1,885 (+28.8% year-on-year) andthe revised DPU forecast for the fiscal period ending December 2024 is JPY 1,789 (+9.1% year-on-year);the DPU for the full calendar year 2024 is forecasted to be JPY 3,674 (+18.4% year-on-year). As above,
solid recovery and growth of the DPU is expected in 2024, backed by record demand of inbound tourism.
Also, the DPU forecast for the fiscal period ending June 2025 is JPY 1,887 (+0.1% year-on-year).
NOI for INV’s entire portfolio for the fiscal period ending December 2024 and the fiscal period ending
June 2025 is expected to grow by 26.9% and 15.8% year-on-year respectively, due to revenue
contributions from the assets to be acquired and internal growth of the existing portfolio.
With regard to the domestic hotel portfolio, with the strong inbound demand, INV expects ADR,
occupancy rate and RevPAR (Note 1) for the fiscal period ending December 2024 and the fiscal period
ending June 2025 to increase, resulting in GOP (Note 1) growth of approx. 3% year on year, as describedin “4. Reasons for Forecast Revision (Reference) <Forecasts for Performance Indicators of Domestic
Hotel Properties (81 hotels)>” below. On the other hand, with regard to the Overseas Hotel portfolio(Note 2), INV expects occupancy rate for the fiscal period ending December 2024 and the fiscal period
ending June 2025 to decrease compared to the corresponding period in the previous year due to a largescale renovation work at Sunshine Suites Resort, and GOP is also expected to decrease. Sunshine
Suites Resort is comprised of two buildings, and the renovation is to be carried out from August 2024 toNovember 2024 for one building and from May 2025 to August 2025 for the other building, avoiding theperiods of peak demand from winter to spring. While some sales stoppage during the renovation isconsidered in the forecast we anticipate a large increase in ADR after the completion of the renovation inautumn 2025.
With regard to internal growth of the residential portfolio (Note 3), for both the fiscal period ending December
and the fiscal period ending June 2025, INV forecasts occupancy rate (Note 4), average rent per tsubo (Note4), and NOI to increase gently against those for the corresponding period in the previous year.
In addition, as announced in the press release “Notice concerning Acquisition and Lease of Domestic Trust
Beneficiary Interests” dated July 18, 2024, INV will acquire 12 high-quality hotel properties totaling JPY
104,420 million in the fiscal period ending December 2024, and these hotels are anticipated to increase thesimulated portfolio NOI by JPY 2,875 million, or JPY 377 per unit for the fiscal period ending December 2024,
based on forecasted number of investment units issued and outstanding after the Public Offering.
The DPU forecast for the fiscal period ending June 2025 is JPY 1,887, a slight increase of 0.1% from thecorresponding period in the previous year given the internal and external growth mentioned above. However,based on a theoretical estimated DPU forecast for the fiscal period ended June 2024 (estimated to be JPY
1,829) assuming that there was no temporary adjustment to the fiscal period of the TMK that owns SGTB due
to the COVID 19-related decrease of revenue , the DPU forecast for the fiscal period ending June 2025 would
show an increase of 3.2% from the corresponding period in the previous year, indicating solid growth, as
outlined in “1. Revision of the forecast of financial results and distribution for the fiscal period ended June
This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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.

72024 (from January 1, 2024 to June 30, 2024) and the fiscal period ending December 2024 (from July 1, 2024
to December 31, 2024) and the forecast of financial results and distribution for the fiscal period ending June
2025 (from January 1, 2025 to June 30, 2025) <Fiscal Period Ended June 2024>”.
INV seeks to maximize unitholders’ value while building its portfolio with hotels and residential properties as
its core assets via focusing on both growth and stability.
(Note 1)

(Note 2)
(Note 3)(Note 4)For definition of ADR, occupancy rate for hotel portfolio, RevPAR and GOP, please refer to “4. Reasons for
Forecast Revision (Reference) <Forecasts for Performance Indicators of Domestic Hotel Properties (81 hotels)>”
below.
“Overseas Hotel portfolio” and “Overseas Hotels” refer to “Westin Grand Cayman Seven Mile Beach Resort & Spa”
and “Sunshine Suites Resort”. Hereinafter the same.
“41 residential properties” refers to the 41 residential properties held by INV as of June 30, 2024. Hereinafter the same.
For definition of occupancy rate and average rent per tsubo, please refer to “4. Reasons for Forecast Revision(Reference) <Forecasts for Performance Indicators of Residential Properties (41 properties)> ” below.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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.

8

(Reference)<Forecasts for Performance Indicators of Domestic Hotel Properties (81 hotels)> (Note 1)
Y2024
June fiscal period(Forecast)

Y2025

December fiscal
period(Forecast)

Full-Year(Forecast)June fiscal period(Forecast)Occupancy Rate (Note 2)

80.7%

86.7%

83.7%

82.2%

ADR (JPY) (Note 3)

12,79013,95813,398

13,686

RevPAR (JPY) (Note 4)

10,31912,101

11,215

11,253

GOP (JPY million)(Note 5)

13,712

16,82430,536

14,177Year-on-Year Changes
Y2024
June fiscal period(Forecast)

Y2025

December fiscal
period(Forecast)

Full-Year(Forecast)June fiscal period(Forecast)Occupancy Rate

+0.2pt+4.2pt+2.2pt+1.5pt

ADR+10.8%

+2.1%

+6.1%

+7.0%

RevPAR+11.0%

+7.3%

+8.9%

+9.1%

GOP

+17.0%

+3.6%

+9.2%

+3.4%

(Note 1) From the perspective of comparison with the previously announced performance indicators, forecasts for performanceindicators are based on the actual results and forecasts for the 81 domestic hotel properties of the 90 domestic hotel
properties (including SGTB, the underlying asset of preferred equity interest held by INV) owned before the anticipatedacquisition, excluding nine hotels with fixed-rent lease agreements etc. The actual results prior to the anticipatedacquisition by INV are based on the data provided by the respective sellers, with adjustments to trust fees and insurance
premiums as if INV had held such properties since the beginning of 2023. The forecasts are based on the assumptions set out
in Appendix 1 <Assumptions Underlying the Forecast of Financial Results and Distributions for the Fiscal Periods ended June
2024 (42nd Fiscal Period), ending December 2024 (43rd Fiscal Period) and ending June 2025 (44th Fiscal Period)>“Operating Revenues”, which may be significantly deviate from the actual results. The nine hotels with fixed-rent leaseagreements etc. are Super Hotel Shinbashi/Karasumoriguchi, Comfort Hotel Toyama, Super Hotel Tokyo JR Tachikawa Kitaguchi, Super Hotel JR Ueno-iriyaguchi, Comfort Hotel Kurosaki, Comfort Hotel Maebashi, Comfort
Hotel Tsubamesanjo, Comfort Hotel Kitami, and Takamatsu Tokyu REI Hotel (Takamatsu Tokyu REI Hotel, for which avariable-rent arrangement has been introduced since April 25, 2023, is included in the nine hotels from theperspective of comparison with the 2024 figures.) Hereinafter the same.
(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 days during relevant
period). Hereinafter the same.
(Note 3) “ADR” or Average Daily Rate, is the value of the total room revenues for a certain period (excluding service fees) divided by
the total number of sold rooms for the same period. Hereinafter the same.
(Note 4) “RevPAR” or Revenues Per Available Room, is calculated by dividing the total revenues for a certain period by the aggregate
number of rooms for the same period (rooms x number of days), and is the same figure as that of a product of ADR andoccupancy rate. Hereinafter the same.
(Note 5) “GOP” or Gross Operating Profit, is rent revenue INV receives as a rent which is the amount remaining after deducting thepersonnel, material, water, electricity, and heating and advertising expenses as well as the management service fee for the
hotel operations (if any) from the hotel’s revenues. Hereinafter the same.
(Note 6) With respect to APA Hotel Yokohama-Kannai, the rent paid to INV for this hotel is shown as GOP of this hotel. Hereinafter thesame. Hereinafter the same.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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.

9<Forecasts for Performance Indicators of Domestic Hotel Properties (93 hotels)> (Note 1)
Y2024
June fiscal period(Forecast)

December fiscal
period(Forecast)

Y2025
Full-Year(Forecast)June fiscal period(Forecast)Occupancy Rate

80.5%

86.6%

83.6%

82.3%

ADR (JPY)

12,88814,127

13,534

13,877

RevPAR (JPY)

10,376

12,22811,308

11,427

GOP (JPY million)

16,341

20,09236,433

17,634Year-on-Year Changes
Y2024
June fiscal period(Forecast)

December fiscal
period(Forecast)

Y2025
Full-Year(Forecast)June fiscal period(Forecast)Occupancy Rate

+0.8pt+4.1pt+2.5pt+1.8pt

ADR+10.5%

+2.7%

+6.2%

+7.7%

RevPAR+11.6%

+7.8%

+9.5%

+10.1%

GOP+20.2%+7.9%+13.1%+7.9%(Note 1) Calculated based on the actual results and forecasts for 93 domestic hotel properties; of the 102 domestic hotel
properties (including SGTB, the underlying asset of preferred equity interest held by INV) to be owned after the
anticipated acquisition, excluding nine hotels with fixed-rent lease agreements etc. The actual results prior to theanticipated acquisition by INV are based on the data provided by the respective sellers, with adjustments to trust fees
and insurance premiums as if INV had held such properties since the beginning of 2023. The forecasts are based on
the assumptions set out in Appendix 1 <Assumptions Underlying the Forecast of Financial Results and Distributions for the
Fiscal Periods ended June 2024 (42nd Fiscal Period), ending December 2024 (43rd Fiscal Period) and ending June 2025
(44th Fiscal Period)> “Operating Revenues”, which may be significantly deviate from the actual results. “Occupancy
Rate,” “ADR,” “RevPAR,” and “GOP,” are calculated in the same manner as “4. Reasons for Forecast Revision (Reference)<Forecasts for Performance Indicators of Domestic Hotel Properties (81 hotels)>” (Note 2) through (Note 6) above.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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.

10

<Forecasts for Performance Indicators of Overseas Hotels (2 hotels)>
Y2024
June fiscal period(Forecast)

Y2025

December fiscal
period(Forecast)

Full-Year(Forecast)June fiscal period(Forecast)Occupancy Rate

79.0%

57.2%

68.0%

76.1%

ADR (USD)

565

452

517

614

RevPAR (USD)

446

259

352

468

31,511,686

12,943,464

44,455,151

31,042,655

GOP (USD)
Year-on-Year Changes

Y2024
June fiscal period(Forecast)

Y2025

December fiscal
period(Forecast)

Full-Year(Forecast)June fiscal period(Forecast)Occupancy Rate

+1.7pt-7.7pt-3.0pt-2.9pt

ADR

+5.2%

+7.4%

+6.9%

+8.8%

RevPAR

+7.5%

-5.3%

+2.4%

+4.8%

GOP

+8.0%

-11.3%

+1.5%

-1.5%

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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.

11

<Forecasts for Performance Indicators of Residential Properties ( 41 properties)>
Y2024

96.8%

December fiscal
period(Forecast)
97.2%

9,234
1,141

June fiscal period(Forecast)Occupancy Rate (Note 1)
Average Rent per Tsubo
per Month (JPY) (Note 2)
NOI (JPY million) (Note 3)

Y2025
Full-Year(Forecast)June fiscal period(Forecast)

97.0%

97.1%

9,283

9,259

9,335

1,123

2,265

1,145

Year-on-Year Changes
Y2024+0.3ptDecember fiscal
period(Forecast)+1.2pt

+0.5%
+1.4%

June fiscal period(Forecast)Occupancy Rate
Average Rent per Tsubo
per Month
NOI

Y2025
Full-Year(Forecast)June fiscal period(Forecast)+0.8pt+0.3pt

+0.7%

+0.6%

+1.1%

+0.2%

+0.8%

+0.3%

(Note 1) “Occupancy Rate” is calculated by dividing the sum of total residential leased area by the sum of total residential leasable areaat the end of each month of each period. Hereinafter the same.
(Note 2) “Average Rent per Tsubo per Month” is calculated by dividing the total residential rental revenue including common area charges
for each month by the sum of total residential leased area at the end of each month, indicating the average rent per Tsubo
weighted by leased area. Hereinafter the same.
(Note 3) Figures are rounded down to the indicated amount. Excludes one‐off insurance‐related revenues and expenses. Hereinafter
the same.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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.

12Based on the above, the forecasts of earnings per unit and distribution per unit for the full calendar
year 2024 are as follows:<Full-year 2024> (Aggregate of the fiscal periods ended June 2024 (Forecast) and ending December
2024 (Forecast))

Previous forecast (A)(announced on
February 26, 2024)
Revised forecast (B)Amount of variance(B) – (A)Rate of variance((B) – (A)) / (A)(Note)

Earnings per Unit
(Note)

Distribution per Unit
(Excluding Excess
Profit Distribution per
Unit)(Note)

Excess Profit
Distribution per Unit
(Note)

Distribution per Unit
(Including Excess
Profit Distribution
per Unit)(Note)

JPY

JPY

JPY

JPY

3,500

3,506

-

3,506

JPY

JPY

JPY

JPY

3,668

3,674

-

3,674

JPY

JPY

JPY

JPY

168

168

-

168

%

%

%

%

4.8

4.8

-

4.8

Assumption: the number of investment units issued and outstanding at the end of the fiscal period ended June 2024 was
6,737,121 units and the number of investment units issued and outstanding at the end of the fiscal period ending December
2024 is 7,676,871 units.

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

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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.

13

(Appendix 1)<Assumptions Underlying the Forecast of Financial Results and Distributions for the Fiscal Periods
ended June 2024 (42nd Fiscal Period), ending December 2024 (43rd Fiscal Period) and ending
June 2025 (44th Fiscal Period)>
Item

Fiscal period

Assumptions
The June 2024 Fiscal Period: from January 1, 2024 to June 30, 2024 (182 days)
The December 2024 Fiscal Period: from July 1, 2024 to December 31, 2024 (184 days)
The June 2025 Fiscal Period: from January 1, 2025 to June 30, 2025 (181 days)
Properties held as of the end of the June 2024 Fiscal Period: 133 properties and preferred
equity interests in one TMK
Properties held as of the end of the December 2024 Fiscal Period: 145 properties andpreferred equity interests in one TMK
Properties held as of the end of the June 2025 Fiscal Period: 145 properties and preferred
equity interests in one TMK

Assets undermanagement

In addition to the properties held as of today (133 properties and preferred equity interests
in one TMK), INV assumes that INV will newly acquire 12 hotels, the AnticipatedAcquisitions, as of July 31, 2024 (Note) and that there will be no other change in theportfolio through the end of the fiscal period ending June 2025.
(Note) For details regarding the details of Anticipated Acquisitions, please refer to thepress release “Notice concerning Acquisition and Lease of Domestic Trust BeneficiaryInterests” dated July 18, 2024.
As of the end of the June 2024 Fiscal Period: 6,737,121 units
As of the end of the December 2024 Fiscal Period: 7,676,871 units
As of the end of the June 2025 Fiscal Period: 7,676,871 units

Units outstanding

INV assumes that a total of 939,750 new investment units will be issued through thePrimary Offering (895,000 new investment units) and the Third Party Allotment (up to
44,750 new investment units), and that the expected number of investment units issued
and outstanding following the Public Offering will be 7,676,871 units, and that there will
be no additional issuance of units thereafter through the end of the June 2025 Fiscal
Period.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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.

14

Item

Assumptions

Balance as of the end of the June 2024 Fiscal Period: JPY 271,154 million (borrowing:
JPY 250,254 million, investment corporation bonds: JPY 20,900 million)
Balance as of the end of the December 2024 Fiscal Period: JPY 321,497 million(borrowing: JPY 300,597 million, investment corporation bonds: JPY 20,900 million)
Balance as of the end of the June 2025 Fiscal Period: JPY 321,497 million (borrowing:
JPY 300,597 million, investment corporation bonds: JPY 20,900 million)

Interest-bearing liabilities

INV assumes refinancing JPY 15,862 million in total, which consists of JPY 20,662 million
of loan due on July 16, 2024 and JPY 1,582 million of loan due on July 20, 2024, in thefiscal period ending December 2024. (For further details, please refer to press release“Notice concerning Debt Financing (Refinance)” dated on July 11, 2024). Further, INV
assumes that JPY 56,725 million of borrowing is implemented as of July 31, 2024, as
mentioned in the press release “Notice concerning Debt Financing” dated July 18, 2024.
In addition, INV intends to refinance or issue investment corporation bonds of the sameamount of loan and investment corporation bonds due from August 2024 to the end ofJune 2025 Fiscal Period. INV assumes no other new loan, issuance of investment
corporation bonds or prepayment of loan through the end of the June 2025 Fiscal Period.

INV expects to record operating revenues for each fiscal period as follows:
As for the demand for hotels in Japan, INV conservatively assumes that the domestic
demand would slightly decrease compared to the demand in 2023, when the government
was implementing support for the tourism industry. At the same time, a temporary demand
increase for hotels in Osaka due to “World EXPO 2025 in Osaka” starting in April 2025 isassumed and included in the forecast.
As for the demand from inbound travelers, it has been growing and the number of inboundvisitors in 2024 is estimated to exceed that in 2019 prior to COVID-19, due to the demand
growth from countries except for China, while the number of Chinese tourists visiting
Japan is expected to be slightly less than that in 2019 prior to COVID-19. Further, although
the increase in demand in 2025 from inbound visitors due to “EXPO 2025 in Osaka” isassumed, it is assumed that the demand in 2025 would exceed that in 2024 even if thedemand from “EXPO 2025 in Osaka” is absent.

Operating revenues

In addition to the demand forecasts above, INV has taken into account various factors
including scheduled conferences, concerts and other events in the vicinity of each hotel,
situations of competitors and price trends, etc., to forecast hotel rents for the period ending
December 31, 2024 and thereafter. The reservations for the period from July to August2024 already made as of the forecast are also taken into account.

・Rental revenues(of these, hotel
rents)(fixed hotel rents)(variable hotel
rents)
・Management
contract revenue(in thousand USD)
・Dividend amountJune 2024
Fiscal Period
JPY 14,687
million(JPY 12,919
million)(JPY 5,853
million)(JPY 7,065
million)December 2024
Fiscal Period
JPY 21,011
million(JPY 19,228
million)(JPY 8,440
million)(JPY 10,788
million)June 2025
Fiscal Period
JPY 18,674
million(JPY 16,842
million)(JPY 6,594
million)(JPY 10,247
million)JPY 4,762 million

JPY 2,020 million

JPY 4,630 million

USD 31,511
thousandJPY 1,428 million

USD 12,943
thousandJPY 678 million

USD 31,042
thousandJPY 942 million

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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.

15

Item

Assumptions
JPY 20,879
millionTotal operating
revenues

JPY 23,720
millionJPY 24,247
millionINV estimates the amount of dividend income from preferred equity interests based on
the performance the underlying asset backing the cash flows and the assumed amountof expenses incurred by the TMK. Also, as for the Fiscal Period ended June 2024, theamount of dividend income received is assumed to be equivalent to the amount ofdividend income for 12 months (calculation period: April 2023-March 2024), which is 6
months longer than the usual calculation period. This is due to the temporary adjustmentof financial period of the TMK which was caused by the COVID-19-related decrease ofrevenue from the underlying asset, SGTB (in which INV owns a preferred equity interest),
resulting in the TMK recording cumulative losses. However, INV expects to receive
dividends with the amount for 6 months as usual in the Fiscal Period ending December
2024 and the Fiscal Period ending July 2025 as the cumulative losses were eliminatedand the TMK returned to a six-month financial period from April 2024.
Further, the potential sale of SGTB, the underlying asset of TMK which INV owns its
preferred equity, is under consideration (including the scheme of selling beneficiary rightof the TMK), and it is possible that INV could conclude a contract to sell this property inthe near future. If such event occurred, a considerable amount of profit from the sale would
be recorded and distributed in the fiscal period when the sale concluded (or the fiscal
period when the INV receives the dividend reflecting the amount of the profit from the salefrom the TMK). After such fiscal period, INV’s profit would be effected by not receiving theincome related to the TMK owning SGTB. Please note that, as of July 18, 2024, nodetermination has been made regarding the sale, including the timing and terms andconditions in the case of any sale, and there is no guarantee or assurance that the property
will ultimately be sold. Thus, the potential effect from the sale is not included in theforecasts until Fiscal Period ending June 2025.
INV receives revenue and recognizes management contract revenues from Overseas
Hotels. The forecast of management contract revenues is based on estimatedperformance of the underlying assets and the assumed amount of expenses incurred by
the hotel management company.
Also, as for the management contract revenue, large portion is hedged with foreignexchange forward based on USD. For more details, please refer to the press releases“Notice concerning Execution of Foreign Exchange Forward” dated on March 10, 2023
and May 31, 2024.
As for the management contract revenue for the Fiscal Period ended June 2024, it has
been calculated based on the monthly average exchange rate of each month, andmanagement contract revenue for Fiscal Period ending December 2024 and Fiscal Period
ending June 2026 is based on (i) the rate of foreign exchange reserves for the hedged
portion, (ii) the exchange rate of USD 1 = JPY 150 for the non-hedged portion.
In addition, INV plans to implement a renovation work at Sunshine Suites Resort, and we
expect a decline in revenue in the fiscal period ending December 2024, the fiscal period
ending June 2025, and after that period (August 2024-November 2024 and May 2025August 2025 (scheduled)), due to partial sales stoppage during such renovation. While
INV is considering, the expansion and renovation of Westin Grand Cayman Seven Miles
Beach & Resort details are yet to be determined. Therefore, INV does not anticipate orincorporate any particular impact of the expansion and renovation for the purpose of thisforecast through the end of the fiscal year ending June 2025.
Rental revenues in the fiscal period ended June 2024, the fiscal period ending December
2024, and the fiscal period ending June 2025 are calculated based on estimates as ofThis English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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.

16

Item

Assumptions
today. In addition, INV assumes there will be no delinquencies or non-payment of rent bytenants.
INV expects to incur property related expenses and management contract expenses outof operating expenses for each fiscal period as follows:
June 2024
Fiscal Period

Operating expenses

・Facility
management fees(of these, repair
costs)
・Taxes and otherpublic charges(Note 1)・Insurance
expenses
・Depreciation
expenses・Other expenses
Total property
related expenses
and management
contract expenses

December 2024
Fiscal Period

June 2025
Fiscal Period

JPY 421 million(JPY 19 million)

JPY 604 million(JPY 47 million)

JPY 589 million(JPY 20 million)

JPY 622 million

JPY 832 million

JPY 752 million

JPY 303 million

JPY 300 million

JPY 300 million

JPY 4,340 million

JPY 4,991 million

JPY 5,161 million

JPY 146 million

JPY 141 million

JPY 159 million

JPY 5,835 million

JPY 6,871 million

JPY 6,963 million(Note 1) Property taxes and city planning taxes on the assets to be acquired in 2024 including
anticipated acquisition of assets are calculated on a pro-rata basis with the previous owners andsettled at the time of acquisition, and are not recorded for the fiscal period ending December 2024
and recorded from the fiscal period ending June 2025 as the amount equivalent to such settlement
is included in the acquisition cost.
For the Anticipated Acquisitions, INV expects to record the property taxes and city planning taxes of
JPY 180 million as part of the total acquisition cost, and an annual amount of JPY 427 million of suchtaxes as expenses starting from the fiscal period ending June 2025.

INV expects to incur other operating expenses than the property related expenses ormanagement contract expenses for each fiscal period as follows:
June 2024
Fiscal Period
・Other operating
expenses(of these, asset
management fees)

December 2024
Fiscal Period

June 2025
Fiscal Period

JPY 601 million

JPY 613 million

JPY 580 million(JPY 450 million)(JPY 450 million)(JPY 450 million)

INV expects to record net operating income for each fiscal period as follows:

NOI

・NOI
(of these, domestic
hotel NOI)(of these, overseas
hotel NOI)

June 2024
Fiscal Period

December 2024
Fiscal Period

JPY 19,384 million

JPY 21,840 million(JPY 13,707
million)(JPY 18,925
million)(JPY 4,456 million)(JPY 1,715 million)

June 2025
Fiscal Period
JPY 22,445
million(JPY 16,893
million)(JPY 4,328
million)This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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.

17

Item

Assumptions(of these, residential
NOI)(JPY 1,142 million)(JPY 1,122 million)(JPY 1,146
million)NOI calculation method in the above table is as follows
NOI ＝ Rental Revenues ‐ Property Related Expenses + Depreciation Expenses+
Dividends on the preferred equity interest (TMK dividend) + Management Contract
Revenue‐Management Contract Expense

INV expects to incur non-operating expenses for each fiscal period as follows:

JPY 897
millionJPY 587
millionJPY 108
millionDecember
2024 Fiscal
PeriodJPY 1,432
millionJPY 745
millionJPY 121
millionJune 2025
FiscalPeriodJPY 1,478
millionJPY 618
millionJPY 122
millionJPY 15
millionJPY 16
millionJPY 16
million-JPY 200
million-JPY 2,516
millionJPY 2,235
millionJune 2024
Fiscal Period・Interest expense
・Finance related costs

Non-operating expenses

・Interest for investment
corporation bonds
・Depreciation of investment
corporation bonds issuance
expenses・Other non-operating expenses(expenses relating to the issuance of
new units for the Public Offering)・Foreign exchange loss (Note 1)
Total Non-operating expenses

JPY 148
millionJPY 1,757
million(Note 1) Mainly due to the effect of foreign exchange forward on the revenue of overseas hotels.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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.

18

Item

Assumptions
The distribution per unit is calculated in accordance with the cash distribution policy as set
forth in INV’s Articles of Incorporation.
With respect to the distribution for the fiscal period ended June 2024, INV expects todistribute an aggregate amount of JPY 12,699 million (distribution per unit: JPY 1,885)
from the net income for the June 2024 Fiscal Period (JPY 12,683 million) plus JPY 15
million of reversal of retained earnings (internal reserve).
With respect to the distribution for the fiscal period ending December 2024, INV expects
to distribute an aggregate amount of JPY 13,733 million (distribution per unit: JPY 1,789)
from the net income for the December 2024 Fiscal Period (JPY 13,718 million) including
JPY 15 million reversal of retained earnings (internal reserve).

Distribution per unit

With respect to the distribution for the fiscal period ending June 2025, INV expects todistribute an aggregate amount of JPY 14,486 million (distribution per unit: JPY 1,887)
from the net income for the fiscal period ending June 2025 (JPY 14,467 million) including
JPY 18 million reversal of retained earnings (internal reserve).
For the fiscal period ended June 2024, fiscal period ending December 2024, and fiscal
period ending June 2025, INV expects to record deferred gain and loss on hedge of theinterest rate swap and the foreign exchange forward as the valuation and conversion
adjustments, etc. of JPY -221 million, which is equal to the amount for the fiscal period
ended December 2023. The distribution per unit is calculated based on the assumptionthat fluctuation of the market value of the interest rate swap and the foreign exchange
forward does not affect the distribution per unit.
Distribution per unit may vary due to various factors, including changes of the assets undermanagement, fluctuation of rent income associated with reasons such as change oftenants and occurrences of unexpected repairs.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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.

19

Item

Excess profit distribution
per unit

Assumptions
INV believes maintaining the stability of cash distributions over the medium term is
one of the most important factors in determining the amount of distribution for a given
fiscal period. Therefore, INV has adopted a policy of making excess profit
distribution, etc. in order to stabilize distributions in cases where dilution of
investment units or significant expenses are to be recorded in connection with theacquisition of assets or the raising of capital, or other events leading to a temporary
decrease in distribution per unit. When determining excess profit distribution, etc.,
INV takes into consideration the level of distribution per unit assuming suchacquisition of assets, capital raising or other event would had contributed for a full
fiscal period.
INV may also consider making excess profit distribution, etc. for the purpose of
decreasing the impact from corporate tax increase arising from different rules in tax
and accounting practices, such as treatment on depreciation of fixed term land leaseor asset retirement obligation.
With respect to the fiscal period ended June 2024, INV plans to distribute reversalof retained earnings (internal reserve) (JPY 3 per unit) as “excess profit distribution,etc. from the amount of difference arising from differences in tax and accounting
processing.”
With respect to the fiscal period ended December 2024, INV plans to distribute
reversal of retained earnings (internal reserve) (JPY 3 per unit) as “distributions inexcess of profit, etc. from the amount of difference arising from differences in tax
and accounting processing.”
With respect to the fiscal period ending June 2025, INV plans to pay distributions
through reversal of retained earnings (internal reserve) (JPY 3 per unit) as “excess
profit distribution, etc. of the amount of difference arising from differences in tax andaccounting processing.”

Excess profit
distribution per unit

Other

June 2024
Fiscal Period

December 2024
Fiscal Period--

June 2025
Fiscal Period-

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

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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.

20

(Appendix 2)<Simulated distribution per unit for fiscal period ending December 2024>
Simulated distribution per unit for the fiscal period ending December 2024 refers to sum of (i) earnings per unit
calculated by first assuming the forecast financial results for the fiscal period ending December 2024 and then,by applying the simulated adjustments below, eliminating the effects of such factors as one-off expenses andtreating the Anticipated Acquisitions, the Public Offering and the Borrowing as if they had occurred prior to thebeginning of the fiscal period ended December 2024, and (ii) excess profit distribution ,etc. (limited to excess
profit distribution etc. of the amount of difference arising from differences in tax and accounting processing)
Simulated adjustments used to calculate simulated distribution per unit for the fiscal period ending
December 2024 include the following adjustments
1.

The figures are on the assumption that revenue contributions as well as expenses such as property taxes
and city planning taxes on the acquired assets and the assets to be acquired announced in the press
releases “Notice concerning Acquisition and Lease of Domestic Trust Beneficiary Interests” as of today
were recorded from the beginning of the fiscal period ended December 2024.

2.

The figures are on the assumption that borrowings announced in the press release “Notice concerning
Debt Financing” as of today were recorded from the beginning of the fiscal period ended December 2024.

3.

The figures are on the assumption that a total of 939,750 units (895,000 units through the Public Offering
and up to 44,750 units through the Third Party Allotment) were issued at the beginning of the fiscal period
ending December 2024.

4.

Elimination of one-off revenues/expenses in connection with the Transactions.

The simulated distribution per unit for the fiscal period ending December 2024 as well as the simulated
earnings per unit, simulated distribution per unit (excluding excess profit distribution per unit) and simulated
excess profit distribution per unit, for the fiscal period ending December 2024, which are calculated by applying
the same adjustments as the simulated distribution per unit for the fiscal period ending December 2024 aresummarized in the column of “After the Transactions (B)” of the Table A below. In addition, to exhibit the effectof the Transactions, these figures before the Transactions are also included in the Table A.
Simulated distribution per unit after the Transactions is calculated by applying all adjustments, while simulated
distribution per unit before the Transactions is calculated on the assumption that none of the Transactions
described above would take place and no revenues or expenses, etc. associated therewith would be recorded.
The simulated distribution per unit for the fiscal period ending December 2024 and the other figures in the
Table A below are purely a simulation intended to describe the effect of the Transactions, etc. described above
and are neither a forecast nor prospect relating to INV’s earnings or distribution per unit for a given operating
period. Accordingly, there is no guarantee that the simulated distribution per unit for the fiscal period ending
December 2024 will ever be realized for any future period, and INV is not obligated to revise any of thesimulated figures regardless of any changes in circumstances that may affect the above simulation.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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.

21

[Table A]

Simulated Earnings
per Unit for the fiscal
period ending
December 2024
(Note 1)

Simulated
Distribution
per Unit(Excluding Excess
Profit Distribution
per Unit) for the
fiscal period ending
December 2024
(Note 1)

Simulated Excess
Profit Distribution
per Unit for the
fiscal period ending
December 2024
(Note 1)

Simulated
Distribution per Unit
(Including Excess
Profit Distribution
per Unit) for the
fiscal period ending
December 2024
(Note 1)

JPY

JPY

JPY

JPY

1,728

1,731

-

1,731

JPY

JPY

JPY

JPY

1,751

1,754

-

1,754

Amount of variance(B) – (A)

JPY

JPY

JPY

JPY

23

23

-

23

Rate of variance((B) – (A)) / (A)

%

%

%

%

1.3

1.3

-

1.3

Before the Transactions(A)
After the Transactions(B)(Note 1) Assumption: the number of investment units issued and outstanding before the Transactions: 6,737,121 units; the number ofinvestment units issued and outstanding after the Transactions: 7,676,871 units.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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.

22

(Appendix 3)<Simulated Earnings per Unit, Distribution per Unit (Excluding Excess Profit Distribution per Unit),
and Distribution per Unit (Including Excess Profit Distribution per Unit) for fiscal period ended June
2024, assuming that the financial period was not temporarily adjusted for the TMK>
As for the fiscal period ended June 2024, the amount of dividend income received from SGTB (inwhich INV owns a preferred equity interest) is expected to be equivalent to the amount of dividends
for 12 months (calculation period: April 2023-March 2024, the dividend is JPY 1,428 million), whichis 6 months longer than the usual calculation period. This is due to the temporary adjustment of thefinancial period of the TMK which was caused by the COVID 19-related decrease of revenue fromthe underlying asset, SGTB, resulting in the TMK recording cumulative losses. Simulated dividend
income for the fiscal period ended June 2024, assuming that the calculation period for the TMK is 6
months as usual, is JPY 1,053 million (JPY -375 million).
Net income, retained loss brought forward, and unappropriated retained earnings of the TMK from
April 1, 2023 to March 31, 2024 fiscal period are assumed to be JPY 3,965 million, JPY 1,050
million, and JPY 2,915 million (the amount equivalent to 49%, share of INV, is JPY 1,428 million),
respectively. Net income from April 1, 2023 to September 30, 2023 is JPY 1,815 million (theamount equivalent to 49%, share of INV, is JPY 889 million), net income from October 1 to March
31, 2024 is JPY 2,150 million (the amount equivalent to 49%, share of INV, is JPY 1,053 million),
which is calculated by dividing the net income for the fiscal period into the first and the second halfof the year, using the monthly value (Note 1) of the net income above.
Further, as for the retained loss brought forward of JPY 1,050 million, as net income from April 1,
2023 to September 30, 2023 exceeded the retained loss brought forward and the retained loss
brought forward got resolved in that period, the total monthly income from October 1, 2023 toMarch 31, 2024 is used as the simulated value of net income (total distribution amount).
(Note 1) The monthly breakdown is calculated based on the monthly trial balance, and the expenses of the TMK is prorated with a method
judged to be reasonable. However, since the financial results from April 1, 2023 to September 30, 2023 have not been settled
by the TMK nor audit has been performed, there is no guarantee that the simulated value is accurate.

Using the simulated dividend income for the fiscal period ended June 2024 above, Earnings per
Unit, Distribution per Unit (Excluding Excess Profit Distribution per Unit), and Distribution per Unit
(Including Excess Profit Distribution per Unit) for fiscal period ended June 2024 (42nd Fiscal
Period) are JPY 1,826, JPY 1,829, and JPY 1,829, respectively.
Further, the simulated values above are just the simulations aiming to explain the impact of
temporary adjustment due to the COVID-19 on the dividend income. It is not a forecast or estimateof net income and distribution per unit.

This English language notice is a translation of the Japanese-language notice released on July 18, 2024 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
are given 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.

23