[For Information Purpose Only.
The Japanese language press release should be referred to as the original.]

June 25, 2015

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: Akiko Watanabe,Manager of Planning Department(Tel. +81-3-5411-2731)

Notice concerning Revision of Forecast of Financial Results and Distribution for the 24th
Fiscal Period Ending June 2015 and the 25th Fiscal Period Ending December 2015,
together with Forecast of Financial Results and Distribution for the 26th Fiscal PeriodEnding June 2016 and 27th Fiscal Period Ending December 2016
Invincible Investment Corporation (“INV”) today announces the revision of its forecast of financial
results and distribution per unit (“DPU”) for the fiscal period ending June 2015 (24th fiscal period)
and the fiscal period ending December 2015 (25th fiscal period), as previously announced in“Financial Summary for the 23rd Fiscal Period” dated February 25, 2015, together with the forecastof financial results and DPU for the fiscal period ending June 2016 (26th fiscal period) and fiscal
period ending December 2016 (27th fiscal period).
Details

1.

Revision of forecasts of financial results and DPU for the fiscal periods ending June 2015 (fromJanuary 1, 2015 to June 30, 2015) and December 2015 (from July 1, 2015 to December 31,
2015)<Fiscal Period Ending June 2015>

Previous forecast (A)(announced on
February 25, 2015)
Revised forecast (B)

Total
distribution
amountOperatingrevenues

OperatingincomeOrdinary
incomeMillion JPY

Million JPY

Million JPY

Million JPY

Million JPY

4,631

2,439

1,903

1,902

1,900

Million JPY
4,920

Million JPY
2,738

Million JPY
2,202

Million JPY
2,201

Million JPY

Net income

2,198This English language notice is a translation of the Japanese-language notice released on June 25, 2015 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness 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Amount of Variance(B) – (A)Million JPY
288

Million JPY
298

Million JPY
298

Million JPY
298

Million JPY

%
6.2

%

%

%

%

12.2

15.7

15.7

15.7

Rate of variance((B) – (A)) / (A)Earnings per
unit(Note)

Previous forecast (A)(announced on
February 25, 2015)

Distribution
per unit

Reversal of
Surplus perunit (Note)(excluding excess
profit distribution
per unit) (Note)

Excess profit
distribution
per unit(Note)

298

Distribution
per unit(including excess
profit distribution
per unit) (Note)

JPY

JPY

JPY

JPY

JPY

712

0

712

0

712

JPY

JPY

JPY

JPY

JPY

824

0

824

0

824

Amount of Variance(B) – (A)

JPY

JPY

JPY

JPY

JPY

112

－

112

－

112

Rate of variance((B) – (A)) / (A)

%

%

%

%

%

15.7

－

15.7

－

15.7

Revised forecast (B)(Note 1)

The number of investment units issued and outstanding at the end of the fiscal period: 2,668,686 units.

This English language notice is a translation of the Japanese-language notice released on June 25, 2015 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness 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<Fiscal Period Ending December 2015>
Total
distribution
amountOperatingrevenues

OperatingincomeOrdinary
incomeMillion JPY

Million JPY

Million JPY

5,034

2,812

2,294

Million JPY
2,293

Million JPY
2,292

Revised forecast (B)Million JPY
6,437

Million JPY
3,882

Million JPY
2,447

Million JPY
2,447

Million JPY

Amount of Variance(B) – (A)Million JPY
1,402

Million JPY
1,069

Million JPY
153Million JPY
153Million JPY

%
27.9

%

%

%

%

38.0

6.7

6.7

43.4

Earnings perunit (Note 1)

Reversal of
Surplus perunit (Note 1)

Previous forecast (A)(announced on
February 4, 2015)

Rate of variance((B) – (A)) / (A)(Note 2)Previous forecast (A)(announced on
February 25, 2015)

Net income

Distribution
per unit(excluding excess
profit distribution
per unit) (Note 1)

Excess profit
distribution
per unit (Note 1)(Note 2)

3,286
993

Distribution
per unit(including excess
profit distribution
per unit) (Note 1)

JPY
859

JPY
0

JPY
859

JPY
0

JPY
859

JPY

JPY

JPY

JPY

JPY

766

23

789

239

1,029

Amount of Variance(B) – (A)

JPY
(93)

JPY
23

JPY
(70)

JPY
239

JPY
170

Rate of variance((B) – (A)) / (A)%(10.8)

%
－

%
(8.1)

%
－

%
19.8

Revised forecast (B)(Note 1)

The number of investment units issued and outstanding at the end of the fiscal period: 2,668,686 (previous forecast) and
3,193,686 units (revised forecast).

(Note 2)

Excess profit distribution per unit of JPY 239.1 = Distribution per unit of JPY 1,029 in the Fiscal Period Ending December
2015 - Earnings per unit of JPY 766.3 - Reversal of Surplus per unit of JPY 23.6

(Note 3)

INV expects to distribute the rest of the surplus of JPY 75 million, which would be remained after the expected payment of
the distribution in the fiscal period ending June 2015. INV will use excess profit distribution to normalize the distribution
because INV expects to issue new investment units, prepay the existing borrowings and acquire 11 hotel properties andthree residential properties, resulting in significant cost. Excess profit distribution is not a given assurance; it may not be
distributed depending on the operational status.
Expected aggregate amount of excess profit distribution is based on the assumption of the normalized DPU in the fiscal
period ending December 2015 as of today. It will be decided in the view of the circumstances in normalized distribution
including the costs mentioned above, the securement of assets to maintain our asset value and the financing standing
and liquidity in hand after Excess profit distribution. Please refer to “4. Excess profit distribution policy” and Appendix 2 forthe detail of the excess profit distribution policy and simulatedearnings per unit in the fiscal period ending December
2015.

This English language notice is a translation of the Japanese-language notice released on June 25, 2015 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness 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2.

Forecasts of financial results and DPU for the fiscal periods ending June 2016 (from January 1,
2016 to June 30, 2016) and December 2016 (from July 1, 2016 to December 31, 2016)<Fiscal Period Ending June 2016>

Forecast for the fiscal
period ending June
2016

Forecast for the fiscal
period ending June
2016
(Note 1)

Operatingrevenues

OperatingincomeOrdinary
incomeNet income

Total distribution
amountMillion JPY

Million JPY

Million JPY

Million JPY

Million JPY

6,315

3,532

3,148

3,147

3,145

Distribution
per unit

Earnings perunit (Note)

Reversal of
surplus perunit (Note)

JPY

JPY

JPY

JPY

JPY

985

0

985

0

985

(excluding excess
profit distribution
per unit)(Note)

Excess profit
distribution
per unit (Note)

Distribution
per unit(including excess
profit distribution
per unit)(Note)The number of investment units issued and outstanding at the end of the fiscal period: 3,193,686 units<Fiscal period ending December 2016>

Forecast for the fiscal
period ending
December 2016

Forecast for the fiscal
period ending
December 2016
(Note 1)

Total
distribution
amountOperatingrevenues

OperatingincomeOrdinary
incomeMillion JPY

Million JPY

Million JPY

Million JPY

Million JPY

6,821

4,021

3,633

3,632

3,631

Distribution
per unit

Net income

Earnings perunit (Note)

Reversal of
surplus perunit (Note)

JPY

JPY

JPY

JPY

JPY

1,137

0

1,137

0

1,137

(excluding excess
profit distribution
per unit)(Note)

Excess profit
distribution
per unit (Note)

Distribution
per unit(including excess
profit distribution
per unit)(Note)The number of investment units issued and outstanding at the end of the fiscal period: 3,193,686 units(Reference)
Assumptions underlying the forecast of financial results and distributions for the fiscal periods ending June
2015, December 2015, June 2016 and December 2016 are provided in Appendix 1. For ease of reference,
figures for earnings per unit, distribution per unit (including excess profit distribution per unit) and simulated
earnings per unit are summarized in the table below. Simulated earnings per unit are shown for reference
purposes, which are calculated by applying adjustments including, assuming that the three hotel properties
purchased in February 2015, and the fourteen properties to be purchased in July 2015 occurred at end of the
fiscal period ended December 2014, assuming that all anticipated units of the Offering were issued and there
would be no other changes in outstanding units for the rest of year, exclusion of one-time costs in relation withfinancings, application of new interest rate of new syndicate loan to full year of 2015 and exclusion of equity
This English language notice is a translation of the Japanese-language notice released on June 25, 2015 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness 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

offering related costs. For details on the method for calculating simulated earnings per unit, please refer toAppendix 2. The simulated earnings per unit is purely a simulation intended to describe the effect of thetransactions, etc. described above and is neither a forecast nor prospect relating to INV’s earnings or
distribution per unit for a given operating period.

Earnings per
unit(Note 1) (Note 2)

Forecast for the fiscal
period ending June
2015
Forecast for the fiscal
period ending
December 2015
Forecast for the year
2015
Forecast for the fiscal
period ending June
2016
Forecast for the fiscal
period ending
December 2016
Forecast for the year
2016
(Note 1)

Reversal of
surplus perunit (Note 2)Distribution
per unit

Distribution
per unit

Simulated(excluding excess
earnings per(including excess
profit distribution
unit
profit distribution per
per unit)(Note 1)(Note 2)unit)(Note 2)(Note 2)

JPY
824

JPY
0

JPY
0

JPY
824

JPY
917

JPY

JPY

JPY

JPY

JPY

766

23

239

1,029

1,060

JPY
1,590

JPY
23

JPY
239

JPY
1,853

JPY
1,977

JPY
985

JPY
0

JPY
0

JPY
985

JPY
985

JPY
1,137

JPY
0

JPY
0

JPY
1,137

JPY
1,137

JPY

JPY
0

JPY
0

JPY
2,122

JPY
2,122

2,122

For details of simulated earnings per unit, please refer to Appendix 2 below. As noted in Appendix 2, the simulated
earning per unit for the fiscal period ending June 2015 is calculated based on the assumption that a total of 525,000 units(500,000 units to be issued during the fiscal period ending December 2015 through the Public Offering and 25,000 units
through the Over-Allotment Option) were issued at the beginning of the fiscal period ending June 2015 and the number ofinvestment units issued and outstanding is 3,193,686. On the other hand, the forecasts for the earnings per unit anddistribution per unit for the fiscal period ending June 2015 is based on the number of investment units issued andoutstanding at the end of the fiscal period ending June 2015: 2,668,686 units.

(Note 2)The number of investment units issued and outstanding at the end of the fiscal periods ending December 2015, June
2016 and December 2016: 3,193,686 units.

(Note 3)Figures (including earnings per unit, reversal of surplus per unit and excess profit distribution per unit) are rounded down
to the indicated amount and percentages are rounded to first decimal place.

The above forecast is based on the assumption that the Over-Allotment Option is fully exercised. The
forecast in the table below represents the distribution amounts in the case where no shares are issued
through the Over-Allotment Option. The forecast is also based on the assumption that the expected
number of investment units issued and outstanding following the Offering will be 3,168,686 and that there will
be no additional issuance of units thereafter through the end of the fiscal period ending December 2015.
Other assumptions underlying the forecast are provided in Appendix 1. Further, the calculation method for
simulated earnings per unit, except with respect to the assumption that the number of investment units
This English language notice is a translation of the Japanese-language notice released on June 25, 2015 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness 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issued and outstanding at the beginning of the fiscal period ending June 2015 is 3,168,686, is provided inAppendix 2.
The simulated earnings per unit is purely a simulation intended to describe the effect of the transactions,etc. described above and is neither a forecast nor prospect relating to INV’s earnings or distribution per unit
for a given operating period.

Earnings
per unit(Note 2)

Forecast for the fiscal
period ending June
2015
Forecast for the fiscal
period ending
December 2015
Forecast for the year
2015
Forecast for the fiscal
period ending June
2016
Forecast for the fiscal
period ending
December 2016
Forecast for the year
2016
(Note 1)

Reversal of
surplus perunit (Note 2)Distribution
per unit(excluding excess
profit distribution
per unit)(Note 2)Distribution
per unit(including excess
profit distribution
per unit)(Note 2)

Simulated
earnings per
unit(Note 1)(Note 2)

JPY
824

JPY
0

JPY
0

JPY
824

JPY
917

JPY

JPY

JPY

JPY

JPY

772

23

241

1,037

1,069

JPY
1,596

JPY
23

JPY
241

JPY
1,861

JPY
1,986

JPY
993

JPY
0

JPY
0

JPY
993

JPY
993

JPY
1,146

JPY
0

JPY
0

JPY
1,146

JPY
1,146

JPY

JPY
0

JPY
0

JPY
2,139

JPY
2,139

2,139

For details of simulated earnings per unit, please refer to Appendix 2 below. As noted in Appendix 2, the simulated
earning per unit for the fiscal period ending June 2015 is calculated based on the assumption that a total of 500,000 units
were issued at the beginning of the fiscal period ending June 2015 and the number of investment units issued andoutstanding is 3,168,686. On the other hand, the forecasts for the earnings per unit and distribution per unit for the fiscal
period ending June 2015 is based on the number of investment units issued and outstanding at the end of the fiscal
period ending June 2015: 2,668,686 units.

(Note 2)The number of investment units issued and outstanding at the end of the fiscal periods ending December 2015, June
2016 and December 2016: 3,168,686 units.

(Note 3)Figures (including earnings per unit, reversal of Surplus per unit and excess profit distribution per unit) are rounded down
to the indicated amount and percentages are rounded to first decimal place.

3.

Reasons for the revision of forecast of financial results and distribution<Fiscal Period Ending June 2015>
Operating revenue is expected to increase by JPY 288 million from the previous forecast, mainly because of thestrong performance of the 23 hotels in the portfolio during the period from January to June 2015 (as compared toprevious year), owing to the increase in the total number of tourists including the substantial increase in thenumber of foreign visitors and hotel operators’ efficient revenue management and a concurrent increase in ADR.
This English language notice is a translation of the Japanese-language notice released on June 25, 2015 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness 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

As a result, the total distribution amount for the fiscal period ending June 2015 is JPY 2,198 million and the
distribution per unit is JPY 824.
<Fiscal Period Ending December 2015>
As announced today in the “Notice concerning Acquisition of Assets and Entering into Leasing Contract”, INV
expects to acquire 11 hotels and 3 residential properties.
The revision of the forecast of financial results and distribution for the fiscal period ending December 2015 isbased on INV’s current review of its previous forecast of financial results in connection with the transactions,
including a second half increase in ADR as compared to the same period a year earlier in the already owned
hotels as well as an increase in the ADR compared of the to-be-acquired hotels compared to a year earlier. The
other major factor in the estimated second half operating statements includes a lowering of the average interest
rate in connection with the refinancing of its debt.
<Fiscal Period Ending June 2016 and Fiscal Period Ending December 2016>
INV intends to disclose the forecasts of financial results and DPU for the fiscal period ending June 2016 andfiscal period ending December 2016 considering the seasonality in the performance of the hotels in order toprovide the useful information to calculate INV’s full year performance to investors based on information currently
available to INV and certain assumptions that are deemed reasonable by INV.

4.

Excess profit distribution policy
INV believes maintaining the stability of cash distributions over the medium term is one of themost important factors in determining the amount of distribution for a given fiscal period, andtherefore, in cases where significant expenses are to be recorded in connection with, among
other things, the acquisition of assets or the raising of capital, leading to a significant decreasein earnings, INV has decided to make distributions in excess of profits in order to stabilize
distributions and be more reflective of INV’s simulated earnings.
With respect to the distribution per unit for the fiscal period ending December 2015, due tovarious expenses that are expected to be recorded in connection with the Transactions in such
fiscal period, it is expected that earnings will decrease significantly. Therefore, from theperspective of maintaining stable distributions, INV expects to pay distributions in excess of
profits within the scope of the expected shortfall between actual earnings per unit and of thesimulated earnings per unit. INV believes that a distribution per unit (including distributions inexcess of profits) of JPY 1,029 for the fiscal period ending December 2015, which is morereflective of the simulated earnings per unit, is appropriate given the expected profit levels thatwill be achieved after completion of the Transactions. INV has determined that even though theactual distribution per unit exceeds forecasted earnings per unit for the fiscal period ending
December 2015, the Transactions as a whole are profitable for INV’s investors, and will result inhigher future earnings in excess of one-time costs in connection with implementing theTransactions. Further, at the present time, INV has also determined that such a distribution will
not adversely impact INV’s ability to pay for the maintenance of INV’s assets following such
distribution in excess of profits, its financial position or its liquidity. Therefore, INV believes thatmaking such a distribution in excess of profits for the fiscal period ending December 2015 isThis English language notice is a translation of the Japanese-language notice released on June 25, 2015 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness 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reasonable. However, the payment is not guaranteed and it may not be made depending on thefinancial results, etc.
5.

Other: surplus
Following the distribution for the fiscal period ended December 2015, the balance of the
Surplus is expected to be JPY 0.

6.

Reasons for Forecast Revision
INV expects DPU for the 24th fiscal period ending June 2015 of JPY 824, which is 15.7%
higher than the previous forecast of JPY 712 on February 25, 2015 and 43.8% higher than theactual DPU in the same period one year earlier.
In addition, as outlined in the press releases titled “Notice concerning Issuance of New
Investment Units and Secondary Distribution of Investment Units” and “Notice concerning Debt
Financing and Prepayment of Existing Borrowings” each separately announced today, INV isplanning an offering of 525,000 newly issued units (assuming the over-allotment option is
exercised in full), the acquisition of 14 assets for JPY 35 billion, and the refinancing of all its
existing debt. Accordingly, INV is increasing its forecasted DPU for the fiscal period ending
December 2015 to JPY 1,029 which is 19.8% higher than the previous forecast and 40.4%
higher than the same period a year earlier. As described in Item 3 of this press release, these
upward revisions are based largely on assumptions of a second half increase in ADR for
already-owned and to-be-acquired hotels as compared to the same period in the previous year.
The other major factor affecting the forecasted second half operating statements includes alowering of the average interest rate as a result of the refinancing of the existing debt. In
addition, the forecast revisions reflect the contribution to NOI of the 14 new assets including 11
hotels and 3 residential assets.
As the transactions mentioned above are expected to occur in July 2015 and also involve
several one-time expenses, INV has prepared a simulated DPU for 2015. As DPU for the fiscal
period ending December 31, 2015 is expected to be impacted by the one-time expenses inconnection with the Transactions, as we mentioned “4. Excess profit distribution policy”, INV
plans to utilize distribution in excess of profit to maintain a stable DPU for the fiscal period,
provided that such amount will not exceed the difference of DPU and earnings per unit on astabilized basis. The simulated DPU assumes that all of the contemplated transactions
mentioned above would have occurred prior to January 1, 2015 as described in Appendix 2 ofthis press release.
INV is also forecasting DPU for full calendar year 2016 (aggregate of the fiscal periods endingin June 2016 and December 2016) of JPY 2,122 as described in Item 2 of this press release.
This full year 2016 forecast assumes the above transactions occur and does not factor in any
other acquisition transactions or financings.

This English language notice is a translation of the Japanese-language notice released on June 25, 2015 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness 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Earnings per unit and distribution per unit for the calendar years 2015 and 2016 are as follows:<Full-year 2015> (Aggregate of the fiscal periods ending in June 2015 and December 2015)
Distribution
Distribution
per unit
per unit
Reversal of
Excess profit
Earnings per(excluding(including
Surplus per
distribution
unit
excess profit
excess profit
unit
per unit
distribution per
distribution
unit)
per unit)
JPY
JPY
JPY
JPY
JPY
Previous forecast (A)(February 25, 2015)
1,571
0
1,571
0
1,571
JPY

JPY

JPY

1,590

23

1,613

Amount of variance(B)- (A)

JPY

JPY

JPY

19

23

42

Rate of variance((B) – (A)) / (A)

%

%

%

1.2

－

2.7

Revised forecast (B)

JPY
239

JPY
1,853

JPY
239

JPY
282

%
－

%
18.0

<Full-year 2016> (Aggregate of the fiscal periods ending in June 2016 and December 2016)
Distribution
Distribution
per unit
per unit
Reversal of
Excess profit
Earnings per(excluding(including
Surplus per
distribution
unit
excess profit
excess profit
unit
per unit
distribution per
distribution
unit)
per unit)
JPY
JPY
JPY
JPY
JPY
Forecast
0
2,122
2,122
0
2,122

This English language notice is a translation of the Japanese-language notice released on June 25, 2015 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness 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

(Appendix 1)<Assumptions Underlying the Forecast of Financial Results and Distribution for the
th
th
th
th
24 Fiscal Period, the 25 Fiscal Period, the 26 Fiscal Period and the 27 Fiscal Period>
Item

Fiscal period

Assumptions
The 24th fiscal period: from January 1, 2015 to June 30, 2015 (181 days)
The 25th fiscal period: from July 1, 2015 to December 31, 2015 (184 days)
The 26th fiscal period: January 1, 2016 to June 30, 2016 (182 days)
The 27th fiscal period: from July 1, 2016 to December 31, 2016 (184 days)thProperties held as of the end of the 24 fiscal period: 94 properties
Properties held as of the end of the 25th fiscal period: 108 properties
Properties held as of the end of the 26th fiscal period: 108 properties
Properties held as of the end of the 27th fiscal period: 108 properties

Assets undermanagement

INV assumes that INV will newly acquire 11 hotel properties and 3 residential properties(Note) as of July 16, 2015 in addition to existing 94 properties, and there will be nochange through the end of the fiscal period ending December 2016.
(Note) Regarding the acquisition of properties as of July 16, 2015, please refer to “Noticeconcerning Acquisition and Leasing of Assets” dated as of today.

As of the end of the 24th fiscal period: 2,668,686 units
As of the end of the 25th fiscal period: 3,193,686 units
As of the end of the 26th fiscal period: 3,193,686 units
As of the end of the 27th fiscal period: 3,193,686 units
Units outstanding

Interest-bearing liabilities

INV assumes that a total of 525,000 new investment units will be issued through the
Public Offering (500,000 new investment units) and the Over-Allotment Option (up to
25,000 new investment units), that the expected number of investment units issued andoutstanding following the Offering will be 3,193,686 units, and that there will be no
additional issuance of units thereafter through the end of the fiscal period ending
December 2016.
Balance as of the end of the 24th fiscal period: JPY 72,301 mn
Balance as of the end of the 25th fiscal period: JPY 88,338 mn
Balance as of the end of the 26th fiscal period: JPY 86,937 mn (Note)
Balance as of the end of the 27th fiscal period: JPY 86,937 mn (Note)(Note) consumption tax loan of JPY 1,401 million is assumed to be repaid until May 16,
2016.
INV assumes that, as of July 16, 2015, it will draw down the New Syndicate Loan(E) andprepay New Syndicate Loan (C), New Syndicate Loan (D) and Prudential LPS Loan B(for details, please refer to the “Notice concerning Debt Financing and Prepayment of
Existing Borrowings” dated today), and that there will be no other borrowings or
prepayments.

This English language notice is a translation of the Japanese-language notice released on June 25, 2015 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness 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

Item

Assumptions
INV expects to record rental revenues for each fiscal period as follows:
The 24th fiscal period
JPY 4,920 mn(JPY 2,329 mn)(JPY 942mn)(JPY 1,386mn)
The 26th fiscal period
JPY 6,315 mn(JPY 3,560 mn)(JPY 1,494mn)(JPY 2,065mn)

・Rental revenues(of these, hotel rents)(fixed hotel rents)(variable hotel rents)

Operating revenues

・Rental revenues(of these, hotel rents)(fixed hotel rents)(variable hotel rents)

The 25th fiscal period
JPY 6,437 mn(JPY 3,644 mn)(JPY1,547mn)(JPY2,096mn)
The 27th fiscal period
JPY 6,821 mn(JPY 3,999 mn)(JPY1,605mn)(JPY2,393mn)

Rental revenues in the fiscal period ending June 2015 and the fiscal period ending
December 2015 are calculated based on estimates as of today from January 2015 to
December 2015, and rental revenues in the fiscal period ending June 2016 and thefiscal period ending December 2016 are calculated based on estimates as of today fromJanuary 2016 to December 2016. One key assumption relating to variable hotel rents isthe assumption that average ADR for the 26th fiscal period will increase by 11.9% forexisting hotels and 11.3% for to-be-acquired hotels, in each case compared to same
period of the previous year. In addition, INV assumes there will be no delinquencies or
non-payment of rent by tenants.
INV expects to incur property related expenses for each fiscal period as follows:・Facility management fees(of these, repair costs)
・Taxes and other public charges
・Insurance expenses
・Other expenses
・Depreciation expenses
Total property related expenses

Operating expenses

・Facility management fees(of these, repair costs)
・Taxes and other public charges
・Insurance expenses
・Other expenses
・Depreciation expenses
Total property related expensesth
The 24 fiscal period
JPY 457 mn(JPY 26 mn)
JPY 204 mn
JPY 6 mn
JPY 180 mn
JPY 1,004 mn
JPY 1,853 mn
The 26th fiscal period
JPY 480 mn(JPY 30 mn)
JPY 291 mn
JPY 8 mn
JPY 189 mn
JPY 1,308 mn
JPY 2,278 mn

The 25th fiscal period
JPY 510 mn(JPY 40 mn)
JPY 256 mn
JPY 7 mn
JPY 149 mn
JPY 1,276 mn
JPY 2,192 mn
The 27th fiscal period
JPY 503 mn(JPY 40 mn)
JPY 337 mn
JPY 7 mn
JPY 150 mn
JPY 1,298 mn
JPY 2,298 mn

INV expects to incur other operating expenses than the property related expenses foreach fiscal period as follows:th
The 24 fiscal period

The 25th fiscal period

・Other operating expenses

JPY 327 mn

JPY 363 mn(of these, asset management
fees)(JPY 180 mn)(JPY 180 mn)

The 26th fiscal period

The 27th fiscal period

・Other operating expenses

JPY 504 mn

JPY 501 mn(of these, asset management
fees)(JPY 343 mn)(JPY 344 mn)

This English language notice is a translation of the Japanese-language notice released on June 25, 2015 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness 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

Item

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

Net Operating Income

The 24th fiscal period
JPY 4,070 mn(JPY 2,243 mn)
The 26th fiscal period
JPY 5,345 mn(JPY 3,514 mn)

・NOI(of these, hotel NOI)・NOI
(of these, hotel NOI)The 25th fiscal period
JPY 5,521 mn(JPY 3,619 mn)
The 27th fiscal period
JPY 5,822 mn(JPY3,909 mn)

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

Non-operating expensesth
The 24 fiscal period
JPY 391 mn
JPY 144 mn(－)

The 25th fiscal period
JPY 300 mn
JPY 991 mn(JPY 273 mn)－(－)

JPY 142 mn(JPY 142 mn)

JPY 536 mn
The 26 fiscal period
JPY 277 mn
・Interest expense
JPY 106 mn
・Finance related costs
・Other non-operating expenses
JPY － mn
Total Non-operating expenses
JPY 384 mn(Note 1) Prepayment penalty of Prudential LPS Loan

JPY 1,434 mn
The 27th fiscal period
JPY 280 mn
JPY 107 mn
JPY － mn
JPY 388 mn

・Interest expense
・Finance related costs(Prepayment premiums (note1))
・Other non-operating expenses(expenses relating to theissuance of new units for theOffering)
Total Non-operating expensesthDistribution per unit

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 ending June 2015, INV expects todistribute an aggregate amount of JPY 2,198 million (distribution per unit: JPY 824)
based on the assumption that the earnings for the fiscal period ending June 2015 (JPY
2,201 million) will be used as funds.
With respect to the distribution for the fiscal period ending December 2015, INV expects
to distribute an aggregate amount of JPY 3,286 million (distribution per unit: JPY 1,029)
based on the assumption that the earnings for the fiscal period ending December 2015
(JPY 2,447 million) and all of the surplus based on the gain on negative goodwill
resulting from the merger (JPY 75 million) will be used as funds.
With respect to the distribution for the fiscal period ending June 2016, INV expects todistribute an aggregate amount of JPY 3,145 million (distribution per unit: JPY 985)
based on the assumption that the earnings for the fiscal period ending June 2016 (JPY
3,146 million) will be used as funds.
With respect to the distribution for the fiscal period ending December 2016, INV expects
to distribute an aggregate amount of JPY 3,631 million (distribution per unit: JPY 1,137)
based on the assumption that the earnings for the fiscal period ending December 2016
(JPY 3,632 million) will be used as funds.

This English language notice is a translation of the Japanese-language notice released on June 25, 2015 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness 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

Item

Assumptions

INV make distributions in excess of profits (Excess profit distribution per unit) for the
fiscal period ending December 2015 to bridge gap with simulated earnings per unit
Excess profit distribution
per unit

The 24th fiscal period－

The 25th fiscal period
JPY 239

The 26 fiscal period

The 27th fiscal period－－

Excess profit distribution per unitthExcess profit distribution per unit

Other

INV assumes there will be no amendments to applicable laws and regulations, thetaxation system, accounting standards and other regulations that would affect theforegoing 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 June 25, 2015 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness 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 2)＜Simulated earnings per unit＞
Simulated earnings per unit refer to earnings per unit calculated by first assuming the forecast of financial results
for the fiscal period ending June 2015 and the fiscal period ending December 2015 and then, by applying thesimulated adjustments below, eliminating the effects of such factors as one-time expenses and treating the planned
acquisition of assets as if it had occurred prior to the beginning of the fiscal period ending June 2015.
Simulated adjustment is based on the total of the following adjustments:
1.

The impact based on the assumption that the acquisitions described in the “Notice concerning
Acquisition of Assets and Entering into Leasing contract” dated as of June 25, 2015 were implemented
prior to the beginning of the fiscal period ending June 2015.

2.

The impact based on the assumption that the borrowings described in the “Notice concerning Debt
Financing” dated as of June 25, 2015 were implemented prior to the beginning of the fiscal period ending
June 2015.

3.

The tax amount based on the assumption that property taxes and city planning taxes will be expensed at
the beginning of the fiscal period ending June 2015 on the three acquired hotels described in the “Noticeconcerning Acquisition of Assets and Entering into Leasing contract” dated as of February 4, 2015 and“Notice concerning Acquisition of Assets and Entering into Leasing Contract” dated as of June 25, 2015.

4.

Elimination of various one-time charges in connection with the implementation of the Transactions.

5.

With respect to both the fiscal period ending June 2015 and the fiscal period ending December 2015,
calculation is based on the assumption that a total of 3,193,686 units (500,000 units through the Public
Offering and 25,000 units through the Over-Allotment Option) were issued at the beginning of the fiscal
period ending June 2015 and the number of investment units issued and outstanding is 2,668,686.
The simulated earnings per unit as compared to the estimated earnings per unit for the fiscal period ending

June 2015 and the fiscal period ending December 2015 is purely a simulation intended to describe the effectof the transactions, etc. described above and is 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
earnings per unit will ever be realized for any future operating period, and INV is not obligated to revise any of
the simulated 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 June 25, 2015 and was prepared solely for theconvenience of, and reference 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 or assurances are given regarding the accuracy orcompleteness 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