[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
January 25, 2023
To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Naoki Fukuda, Executive Director(Securities Code: 8963)
Asset Manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, President & CEO
Contact: Jun Komo
General Manager of Planning Department(Tel. +81-3-5411-2731)

Performance Update for December 2022
Invincible Investment Corporation (“INV”) hereby announces its monthly performance.
1. Overall Performance of the Entire Portfolio
The performance of both the domestic and overseas hotel portfolios is beginning to exceed
the level before the COVID-19 pandemic for ADR, RevPAR and NOI. The occupancy rateof the domestic hotels for December 2022 was 80.5%, which increased by 18.9pt year-overyear. The residential occupancy rate for the end of December 2022 was 96.4%, which wasflat compared to the end of the previous month. The overall portfolio NOI1,2 for December
2022 increased by 115.3% year-over-year and increased by 171.9% year-over-year on a
cumulative basis for the December 2022 fiscal period (from July to December). Importantly,
the NOI for the current portfolio was approximately JPY 2.2 billion or 7.9% above the same
portfolio’s NOI in December 2019.
The following are the details by segment.
2. Hotel Assets Overview(1) Domestic Hotels
As for the domestic hotel portfolio3 performance for the month of December 2022, theoccupancy rate increased by 18.9pt, ADR increased by 40.2%, and RevPAR increased by
83.1% compared to December 2021, while the occupancy rate decreased by 3.8pt, ADR
increased by 18.9%, and RevPAR increased by 13.6% compared to December 2019 prior
to the COVID-19 pandemic. The NOI for the current portfolio was approximately JPY 1.4billion or 7.5% above the same portfolio’s NOI in December 2019.

This English language notice is a translation of the Japanese-language notice released on January 25, 2023 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For the month of December 2022, the overall occupancy rate reached 80.5%, the highest
level since February 2020, and RevPAR exceeded the level in the same month of 2019 forthe first time since 2020 due to the impact of the government's travel subsidy program“National Travel Discount Campaign” combined with the nascent recovery in inbounddemand.
We are forecasting that the January 2023 RevPAR will be approximately 95% higher thanthe January 2022 figure, approximately 9% lower than the January 2019 figure, orapproximately 5% lower than the January 2020 figure as of today. A steady recovery is
anticipated as inbound demand is in the early stages of recovery.
Table below shows the KPIs for each area of the 75 domestic hotels portfolio3.
Area

Occupancy Rate4

ADR (JPY)5

RevPAR (JPY)6Tokyo 23 Wards

82.4%

9,562

7,884

Greater Tokyo (ex. Tokyo 23 Wards)

85.7%

15,756

13,507

Chubu

75.1%

9,264

6,953

Kansai

81.7%

9,715

7,933

Kyushu82.2%

11,9709,841

Hokkaido

73.5%

9,889

7,267

Other domestic

79.9%

15,245

12,188

Total

80.5%

11,503

9,263(2) Cayman Hotels
The occupancy rate for the Cayman Hotels (Westin Grand Cayman Seven Mile Beach &Spa (“Westin”) and Sunshine Suites Resort (“Sunshine”)) in December 2022 was 79.3%, anincrease of 60.7pt compared to the same month of the previous year, or 5.8pt lower than theDecember 2019 figure. ADR was USD 630, or 10.7% higher than the December 2019figure. RevPAR was USD 500, or 3.2% higher than the December 2019 figure. Both ADR
and RevPAR for December 2022 exceeded 2019 levels due to strong accommodation
demand during the year-end holiday season. In particular, ADR on December 29 was USD
1,609 for Westin and USD 508 for Sunshine, both of which were record highs. The NOI1for December 2022 was JPY 606 million, or 12.2% above the NOI in December 2019, asignificant increase from JPY 73 million for December 2021.
We are forecasting that the occupancy rate for the Cayman Hotels in January 2023 will bearound 76.0%, or 12.5pt lower than the January 2019 figure, ADR will be around USD 578,
or 29.3% higher than the January 2019 figure and RevPAR will be around USD 440, or
11.1% higher than the January 2019 figure as of today. RevPAR is expected to continue toexceed the level of the same month in 2019.

This English language notice is a translation of the Japanese-language notice released on January 25, 2023 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances aregiven regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

2

3. Residential Assets Overview
The residential portfolio7 in-place occupancy rate as of the end of December 2022 was96.4%, which was flat compared to the end of the previous month and increased by 0.8pt
year-over-year.
The average in-place rent per tsubo increased by 0.7% year-over-year. The NOI8 for theresidential portfolio in December 2022 increased by 3.3% year-over-year and increased by
0.8% year-over-year on a cumulative basis for the December 2022 fiscal period, andincreased by 0.2% compared to the same period in 2019.
Rents, compared with those based on the immediately preceding leases, decreased by 1.3%
for new leases, increased by 1.6% for renewal leases, and increased by 0.5% for new andrenewal leases combined for the December 2022 fiscal period. INV achieved a rent
increase on 49.8% of lease contract renewals and the retention rate for the existing tenants
was 79.7% for the December 2022 fiscal period.
4. Performance* The “Difference” in the table below indicates the increase / decrease in value for the monthof December 2022 or cumulative figures from July to December 2022 compared to thecorresponding value in 2021 or 2019. Hereinafter the same.
(1) 75 Domestic Hotel Properties3

Occupancy
Rate4
ADR(JPY)5
RevPAR(JPY)6Gross Revenue(JPY million)9

Dec.

Dec.

2022

2021

80.5%

61.6%

11,503Difference

Dec.

Difference

Jul.-Dec. Jul.-Dec.

Difference

Jul.-Dec.

2021-3.8pt

75.9%

52.4%

+23.5pt

88.4%-12.4pt

8,207 +40.2%

9,677 +18.9%

10,1997,667 +33.0%

10,615

-3.9%

9,263

5,059 +83.1%

8,157 +13.6%

7,744

4,020 +92.6%

9,380-17.4%

5,963

3,734 +59.7%

5,729+4.1%

30,187

17,947 +68.2%

36,937-18.3%

Dec.

Dec.

Dec.

2022

2021

79.3%

18.6%

+18.9pt

84.3%

2019

Difference

2022

2019

(2) Cayman Hotels

Occupancy
Rate4
ADR(USD)5
RevPAR(USD)6Gross Revenue(USD thousand)Difference+60.7pt

2019

85.1%

Difference

Jul.-Dec. Jul.-Dec.
2022

2021

-5.8pt

56.2%

14.9%

Difference+41.3pt

Jul.-Dec.
2019

72.3%

Difference-16.1pt

630

286 +119.9%

569 +10.7%403

193 +108.9%

327 +22.9%

500

53 +837.7%

484+3.2%

226

29 +687.6%

237-4.5%

11,7412,782 +321.9%

10,711+9.6%

36,645

7,291 +402.6%

36,299+1.0%This English language notice is a translation of the Japanese-language notice released on January 25, 2023 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances aregiven regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

3(3) 41 Residential Properties7
End ofDec. 2022

End ofDec. 2021

Difference

96.4%

95.6%

9,203

9,142

Occupancy Rate
Rent per Tsubo(JPY)

Jul.-Dec.

Jul.-Dec.

2022

2021+0.8pt

96.3%

95.8%

+0.5pt

+0.7%

9,174

9,146

+0.3%

Difference

5. Portfolio NOI1,2,8(JPY Million)
Tokyo 23 Wards
Greater Tokyo

Dec.
2022

Dec.
2021

Difference

Dec.
2019

Difference

Jul.-Dec. Jul.-Dec.
Jul.-Dec.
Difference
Difference
2022
2021
2019

354

81 +336.2%

456-22.3%

1,390

360 +285.6%

2,837-51.0%

225

131 +71.8%

293-23.1%

1,070

624 +71.4%

2,036-47.5%

Greater Tokyo Subtotal

579

212 +172.9%

749-22.6%

2,460

984 +149.8%

4,874-49.5%

Chubu

177

97 +81.8%

154 +14.6%897

364 +146.1%

1,420-36.8%

Kansai132

30 +331.0%

81 +62.6%

465

65 +608.2%

790-41.0%

Kyushu218

104 +109.4%

111 +96.2%

1,090

310 +251.1%

1,138-4.2%

Hokkaido

97

94

+3.1%

151

-35.4%

1,039

153 +578.8%

1,852-43.9%

Other domestic

171

207

-17.3%

33 +412.0%

1,398

826 +69.2%

1,565-10.7%

Domestic Hotel- Subtotal

1,377

Residential

185

179

Commercial

1212(ex. Tokyo 23 Wards)

747 +84.4%

1,281+7.5%

7,353

2,705 +171.8%

11,642-36.8%+3.3%

187-0.9%

1,118

1,110+0.8%

1,117+0.2%-0.0%

12-0.3%

7777

-0.1%

77-0.3%

1,482

+6.4%

8,549

3,893 119.6%

12,837-33.4%

541 +12.2%

1,283

-277

-

1,297

-1.1%

9,833

3,616 171.9%

14,135-30.4%

Domestic Asset- Subtotal

1,576

939 +67.7%

Overseas606

73 +720.7%

Total

2,183

1,013 +115.3%

2,023

+7.9%

(Note 1) Based on all properties held as of the end of December 2022, excluding 9 hotels with fixed-rent lease agreements. 9hotels with fixed-rent lease agreements are D29 Super Hotel Shinbashi/ Karasumoriguchi, D33 Comfort Hotel Toyama,
D36 Super Hotel Tokyo-JR Tachikawa Kitaguchi, D37 Super Hotel JR Ueno-iriyaguchi, D39 Comfort Hotel Kurosaki,
D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubame-Sanjo, D42 Comfort Hotel Kitami, and D48 Takamatsu Tokyu
REI Hotel. NOI includes a simulated amount of dividend income from Kingdom TMK (the “TMK”) that owns Sheraton
Grande Tokyo Bay Hotel as an underlying asset. The fiscal periods of the TMK are semi-annual periods from April 1 toSeptember 30 and from October 1 to March 31 every year, and INV will receive the dividend within three months from theend of each semi-annual fiscal period of the TMK. Since INV does not receive a dividend from the TMK on a monthly
basis, the amount of dividend INV receives from the TMK for each month is a simulated figure, which is calculated bydeducting (i) simulated expenses such as operating expense of the TMK and the interest of debt (calculated dividing thebudget of the TMK for the fiscal period that includes the relevant month by the number of months in such fiscal period)
from (ii) NOI based on the performance of Sheraton Grande Tokyo Bay Hotel in the month which is three months before
the target month for this performance disclosure and multiplied by INV’s ownership ratio of the preferred equity interest in
the TMK (49.0%). However, the TMK has a cumulative loss due to the decline in profits and has been in a situation
where it cannot pay dividends. The TMK has temporarily been extending its six-month accounting period to a 12-monthaccounting period in order to curb the costs of settlement of accounts and did not carry out the six-month settlement inINV’s fiscal period ended December 2022. The TMK plans to restore to the original six-month settlement once thecumulative loss is resolved and the TMK is expected to be able to resume payment of dividends. Since dividend income
from the TMK is not recorded unless the cumulative loss is eliminated, a discrepancy may arise between the simulated
amount of dividend income and the dividend income from the TMK in the process of eliminating the abovementioned
cumulative loss. The revenue from the Cayman Hotels is calculated at the exchange rate of US$1 to ¥110. Furthermore,
NOI is provisional figure and subject to change when it is determined at financial closing; hereinafter the same.
(Note 2) NOI figures before acquisition by INV is based on the data obtained from third-parties including previous owners, and are
subject to change caused by the adjustments based on differences in accounting treatments, since it is difficult to adjust
them due to the timing even if the figures are based on actual performance; hereinafter the same.
(Note 3) Based on 75 hotel properties; of the 84 domestic hotel properties (including Sheraton Grande Tokyo Bay Hotel, theunderlying asset of preferred equity interest held by INV) held as of the end of December 2022, 9 hotels with fixed-rentThis English language notice is a translation of the Japanese-language notice released on January 25, 2023 and was prepared solely for the convenience of, and referenceby, non-Japanese investors. It is not intended as an inducement or solicitation for investment. We caution readers to undertake investment decisions based on their own
investigation and responsibility. This translation of the original Japanese-language notice is provided for informational purposes only, and no warranties or assurances aregiven regarding the accuracy or completeness of this English translation. Readers are advised to read the original Japanese-language notice. In the event of any discrepancy
between this translation and the Japanese original, the latter shall prevail in all respects.

4lease agreements are excluded. As for Sheraton Grande Tokyo Bay hotel, NOI is based on the figure for the monthwhich is three months prior to the target month for this performance disclosure as INV will receive the dividend from theTMK within three months of each fiscal period end for the TMK as described above. However, in consideration ofseasonality, figures other than NOI in the table above are based on the figures for December 2022; hereinafter the same.
(Note 4) “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 5) “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 6) “RevPAR,” or Revenues Per Available Room, is calculated by dividing the total room sales for a certain period by theaggregate number of rooms for the same period (rooms x number of days), and is the same as product of room occupancy
rate and ADR.
(Note 7) Based on 41 properties held by INV as of the end of December 2022; hereinafter the same.
(Note 8) NOI excludes one-off insurance-related revenues and expenses; hereinafter the same.
(Note 9) Gross Revenue includes the amount of employment adjustment subsidies to be received by the hotel operators, which
require a certain period of time to confirm. Therefore, the amount of Gross Revenue is subject to change retroactively inthe future when the amount of employment adjustment subsidies is confirmed. Gross Revenue of Sheraton GrandeTokyo Bay Hotel used in the table is the whole gross revenue of such hotel, regardless of INV’s ownership ratio of thepreferred equity interest in the TMK (49.0%).
(Note 10) Percentages are rounded to one decimal place. ADR, RevPAR and Rent per Tsubo are rounded to the nearest yen andGross Revenue is rounded down to the nearest million yen.
(Note 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 sum of the total rental revenue including common area charges for each month by thesum of total leased area (tsubo) at the end of each month.
(Note 12) For the details of performance for each hotel asset, please visit INV’s website:
https://www.invincible-inv.co.jp/en/portfolio/hotel.html

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

This English language notice is a translation of the Japanese-language notice released on January 25, 2023 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