Investment
Invincible Corporation

Audited Financial Statements
for the 22nd Fiscal Period(from January 1, 2014 to June 30, 2014)

Greetings from Naoki Fukuda, Executive Director of Invincible Investment
Corporation and President & CEO of Consonant Investment Management Co., Ltd.
It gives me much pleasure to take this opportunity to express my sincere gratitude to all
investors of Invincible Investment Corporation (“INV”) for your ongoing support.
We hereby provide you with a report on INV’s financial results and operational condition
for the 22nd period (covering the period from January 1, 2014 to June 30, 2014).
First, with respect to the operation of our properties, we completed the change ofproperties in our portfolio through sale of seven senior housing properties on May 22, 2014
and acquisition of two limited service/extended stay hotels on May 23, 2014. Resulting
therefrom, a gain on sales of real estate amounting JPY 1,003 million was recorded, andconcurrently, the internal growth capability of the portfolio of properties was enhanced
through acquiring the hotel assets with a potential for rent upside in the future.
Additionally, with respect to the operation of the existing properties held, the rent revenue
for the period was JPY 2,772 million, increased by JPY 31 million over the previous period
due to the rent increase program of residential properties, intensive approach to lower net
leasing cost, and promoting the leasing of office and retail properties, and the operating
income for the period is, by combining with the above‐mentioned JPY 1,003 million of thegain on sales of real properties, JPY 3,775 million, which is an approximately 38% increaseover the previous period.
With respect to financial management, on May 23, 2014, we successfully refinanced theexisting Prudential LPS Loan (total outstanding balance of JPY 11,000 million with anaverage interest rate of 2.50% as of the repayment), whose interest rate level was higher incomparison with the other existing loans, through a new syndicate loan (borrowing
amount of JPY 13,500 million with an interest rate of 0.98% as of the exercise of therefinancing (Note)) and further reduced the borrowing costs.
Furthermore, on June 23, 2014, we resolved to conduct (i) a public offering by way of global
offering, (ii) new refinancing (borrowing amount of JPY 57,300 million with an interest rateof 0.98% as of the exercise of the refinancing (Note)) and (iii) acquisition of 18 limited
service hotels using the proceeds from financing (acquisition cost of JPY 39.9 billion) andformulated specific measures for the periods going forward to increase profitability byincreasing assets and further reducing borrowing costs.

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Consequently, despite the one‐time cost related to the borrowing and equity financing, thenet income for the period was JPY 901 million, approximately 1.6 times to the previous
period, and the DPU (distribution per unit) was JPY 573, approximately 1.4 times to theprevious period.
Furthermore, we expect that the net income for the fiscal period ending December 31, 2014,
for which the effect resulting from the property acquisition and refinancing exercised in
May and July 2014 will contribute for the full fiscal period, is estimated to be JPY 1,601
million, an increase by JPY 699 million (77.6%) over the current period, and despite theincrease in one‐time cost related to the equity financing and an increase in number ofoutstanding units, distribution per unit is estimated to be JPY 600.
We are in another stage of growth through the achievement of the aforementioned global
offering, refinancing and acquisition of 20 hotel properties.
Going forward, we will seek further growth of INV and further enhancement ofunitholders’ value through internal growth by pursuit of rent upside focusing on hotel andresidential properties and further increases in occupancy rate, and additional reduction inborrowing costs, as well as through external growth by acquisition of properties focusing
on residential and hotel properties deemed as being core assets.
We look forward to receiving the continued support of all of our unitholders.
Naoki Fukuda
Executive Director, Invincible Investment Corporation
President and CEO, Consonant Investment Management Co. Ltd.
(Note) 1 month TIBOR + 0.8%.
+ 0.8%.

As for the first interest calculation period, 2 months TIBOR

FixedDistributions

The 22nd fiscal period(the fiscal period ended June2014)

Per investment unit JPY 573

ForecastDistributions

The 23rd fiscal period(the fiscal period ending
December 2014)

Per investment unit JPY 600

2(Note) We are forecasting operating revenues of JPY 4,323 million and net income of JPY
1,601 million for the 23rd fiscal period (the fiscal period ending December 2014).
The forward‐looking statements, forecasts and goals mentioned above are based on
available information, assumptions and estimates as of August 27, 2014. Theseassumptions and estimates are unavoidably uncertain, and could be affected byvarious risks and factors beyond INV’s control. Thus, no guarantee can be maderegarding the realization of such future forecasts and targets, and actual results mayvary significantly.

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