[For Information Purpose Only]

February 27, 2018

To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Name of representative:
Naoki Fukuda, Executive Director
Roppongi Hills Mori Tower
6-10-1 Roppongi, Minato-ku, Tokyo, Japan(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 January 2018
Invincible Investment Corporation (“INV”) hereby announces its monthly performance for thehotel and residential assets.
1. Hotel and Residential Assets Overview
The combined NOI for the hotel and residential portfolio1 decreased by 0.8% for the month ofJanuary 2018 (year-on-year).
(Note 1) Based on 45 hotel properties and 64 residential properties stated in “4. Performance (1) 45 Hotel Properties” and “(2)64 Residential Properties” below.
(Note 2) NOI includes a simulated amount of dividend income from Kingdom TMK (the “TMK”) that owns Sheraton GrandeTokyo Bay Hotel as an underlying asset. The fiscal periods of the TMK are semi-annual periods from April 1 toSeptember 30 and from October 1 to March 31 every year, and INV will receive the dividend within three months fromthe end of each semi-annual fiscal period of the TMK. Since INV does not receive dividend from the TMK on a monthly
basis, the amount of dividend INV receives from the TMK for the month of January 2018 is a simulated figure, which iscalculated 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 from October 1, 2017 to March 31, 2018 by the numberof months in the relevant fiscal period) from (ii) NOI based on the performance of Sheraton Grande Tokyo Bay Hotel inOctober 2017 which is three month before January 2018 and multiplied by INV’s ownership ratio of the preferred equity
interest in the TMK (49.0%).

2. Hotel Assets Overview
The hotel portfolio1 performance for the month of January 2018 (year-on-year) has shown a
1.0pt growth in Occupancy and declines in ADR and RevPAR of 4.4% and 3.3% respectively.
Hotels in regional destinations such as Kanazawa and Beppu are experiencing strong leisuredemand, however the following two factors resulted in overall declines in ADR and RevPAR
year-on-year; (i) the timing of Chinese New Year shifted to February this year compared toJanuary 2017, and (ii) renovation work commenced at Hotel MyStays Maihama and HotelThis English language notice is a translation of the Japanese-language notice released on February 27, 2018 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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MyStays Dojima2. The January 2018 NOI declined by 2.9% (year-on-year).
Year-on-Year changes in Occupancy, ADR, RevPAR and NOI for the hotel portfolio excluding
the two hotels under renovation2 were +1.2 pt, -3.8 %, -2.5 % and -1.2 %, respectively.
(Note 1) Based on 45 hotel properties stated in “4. Performance (1) 45 Hotel Properties” below.
(Note 2) Hotel MyStays Maihama and Hotel MyStays Dojima are under renovation beginning from January 12 and January 17,respectively.

3. Residential Assets Overview
The residential portfolio1 occupancy rate as of the end of January 2018 was 94.7% (+0.4pt
year-on-year). The rent increase program continues to maintain progress as average rent per
tsubo as of the end of January 2018 increased by 3.4% year-on-year.
Rents, compared with immediately preceding leases, increased by 4.4% across all new leases,
3.3% across all renewal leases, and 3.8% across all combined new and renewal leases for
January 2018.
INV achieved a rent increase for 46.0% of contract renewals (January 2018), in comparison to54.2% for the full year 2017. The retention rate for existing tenants was high at 91.3% forJanuary 2018.
NOI2 increased by 3.6% in January 2018 year-on-year.
(Note 1) Based on 64 residential properties stated in “4. Performance (2) 64 Residential Properties” below.
(Note 2) NOI excludes one-off insurance-related revenues and expenses. NOI is provisional figure and subject to change when
it is determined at financial closing; hereinafter the same.

4. Performance(1) 45 Hotel Properties1

83.9%
8,946
7,507

Same month ofthe previous year6(B)
82.9%
9,362
7,761

3,001
45

January 2018
(A)
Occupancy Rate2
ADR (JPY)3
RevPAR (JPY)4
Gross Revenue(JPY million)5# of Properties

Occupancy Rate2
ADR (JPY)3
RevPAR (JPY)4
Gross Revenue(JPY million)5# of Properties

Fiscal period
ending June 2018
Cumulative7(C)
83.9%
8,946
7,517

Difference(A－B)

YoY Change+1.0pt
-416
-254

+1.2%
-4.4%
-3.3%

3,156

-154

-4.9%

45

―

―

Same period ofthe previous year6(D)Difference(C－D)

YoY Change

82.9%
9,362
7,761

+1.0pt
-416
-254

+1.2%
-4.4%
-3.3%

3,001

3,156

-154

-4.9%

4545―

―

This English language notice is a translation of the Japanese-language notice released on February 27, 2018 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(2) 64 Residential Properties8

94.7%

Same month ofthe previous year6(B)
94.3%

9,747
64

January 2018
(A)
Occupancy Rate
Rent per Tsubo(JPY)# of Properties

Occupancy Rate11
Rent per Tsubo11(JPY)# of Properties

Fiscal period
ending June 2018
Cumulative7(C)94.7%

Difference(A－B)

YoY Change+0.4pt+0.4%

9,426+321

+3.4%

64

――

Same period ofthe previous year6(D)Difference(C－D)

YoY Change

94.3%+0.4pt

+0.4%

9,747

9,426+321

+3.4%

6464

――(Note 1) Based on 45 hotel properties; of the 54 hotel properties (including Sheraton Grande Tokyo Bay Hotel, the underlying
asset of preferred equity interest held by INV) held as of the beginning of January 2018, 9 hotels with fixed-rent leaseagreements are excluded. 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 JR Ueno-iriyaguchi, D39Comfort Hotel Kurosaki, D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubame-Sanjo, D42 Comfort Hotel Kitami,and D48 Takamatsu Tokyu REI Hotel. As for Sheraton Grande Tokyo Bay hotel, NOI is based on the figure of October
2017 which is three month prior to January 2018 as the INV will receive dividend from the TMK within three months fromeach fiscal period end of the TMK as described above. However, in consideration of seasonality, figures in the table
above are based on the figure of January 2018.
(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 business days during target period)(Note 3) “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 4) “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 5) 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 6) Figures for January 2017 are stated. Figures are based on the assumption that the properties acquired from January 1,
2017 to December 31, 2017 were held as of January 1, 2017, and figures before acquisition by INV is based on the dataobtained from third-parties including previous owners.
(Note 7) Figures for January 2018 are stated.
(Note 8) Of the 67 properties held as of the beginning of January 2018, three properties sold in January 2018 are excluded.
(Note 9) 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 10) For the details of performance for each asset, please visit INV’s website:
http://www.invincible-inv.co.jp/eng/cms/review.html(Note 11) Cumulative occupancy rate for residential portfolio is calculated by dividing the sum of total leased area by the sum of
total leasable area at the end of each month and the percentages are rounded to one decimal place. Cumulative rent per
tsubo is calculated by dividing the total rental revenue including common area charges for each month by the sum of total
leasable area at the end of each month.

Website of INV: http://www.invincible-inv.co.jp/eng
This English language notice is a translation of the Japanese-language notice released on February 27, 2018 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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