[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
January 25, 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)

Performance Update for December 2023
Invincible Investment Corporation (“INV”) hereby announces its monthly performance.
1. Overall Performance of the Entire Portfolio
The hotel portfolio performance continues to show a recovery trend. ADR for both domestic
and overseas hotels continue to exceed the same month in 2019, absorbing the cost
increases. The overall portfolio NOI1,2 for December 2023 increased by 48.9% year-overyear to JPY 3.2 billion, or 60.7% above the same portfolio’s NOI in December 2019 prior to
the COVID-19 pandemic, and increased by 7.9% on a cumulative basis from July to
December 2023 compared to the same period in 2019. The performance reflects therecovery in tourism demand after the COVID-19 pandemic.
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 2023, theoccupancy rate decreased by 1.3pt, ADR increased by 11.7%, and RevPAR increased by
9.9% compared to December 2022, while the occupancy rate decreased by 5.1pt, ADR
increased by 32.8%, and RevPAR increased by 24.8% compared to December 2019. The
NOI in December 2023 increased by 81.4% compared to December 2022, or increased by
95.2% compared to December 2019. The NOI on a cumulative basis from July to
December 2023 increased by 72.4% compared to the same period in 2022, or increased by
8.9% compared to the same period in 2019.

This English language notice is a translation of the Japanese-language notice released on January 25, 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During the month of December 2023, strong inbound demand had a positive impact,
especially in the Tokyo 23 Wards, where RevPAR for the hotels exceeded the same monthin 2022 by approximately 30%.
The total number of visitor arrivals to Japan (estimated) announced by the Japan National
Tourism Organization (JNTO) for December 2023 reached 2.73 million, which was 8.2%
higher than December 2019.
We are forecasting that the January 2024 RevPAR will be approximately 18.2% higher thanthe January 2023 figure, or approximately 8.6% higher than the January 2019 figure as oftoday. The impact of the Noto Peninsula earthquake in Ishikawa Prefecture which occurred
on January 1, 2024, is negligible.
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

86.0%

12,088

10,395

Greater Tokyo (ex. Tokyo 23 Wards)

85.5%

16,977

14,517

Chubu

75.4%

10,355

7,808

Kansai

68.3%

10,253

7,000

Kyushu77.1%

12,107

9,332

Hokkaido

71.6%

11,265

8,060

Other domestic

76.4%

15,160

11,587

Total

79.2%

12,852

10,178(2) Cayman Hotels
The occupancy rate for the Cayman Hotels (Westin Grand Cayman Seven Mile Beach &Spa and Sunshine Suites Resort) in December 2023 was 77.6%, a decrease of 1.7pt
compared to the same month of the previous year, or 7.5pt lower than the December 2019
figure. ADR was USD 674, or 18.5% higher than the December 2019 figure and RevPAR
was USD 523, or 8.1% higher than the December 2019 figure, with ADR and RevPAR
continuing to exceed 2019 levels. Both ADR and RevPAR significantly exceeded the samemonth in 2019 due to demand from tourists spending their Christmas holidays at beachresorts, as they did before the pandemic, combined with the effects of inflation and factors
such as “revenge travel.” The NOI1 for December 2023 decreased by 9.3% year-over-year
to JPY 550 million, or 1.7% higher than the December 2019 figure. The NOI on a
cumulative basis from July to December 2023 increased by 7.5% compared to the same
period in 2022, or increased by 6.3% compared to the same period in 2019.
We are forecasting that the occupancy rate for the Cayman Hotels in January 2024 will be
84.7%, or 3.8pt lower than the January 2019 figure, ADR will be USD 593, or 32.7% higher
than the January 2019 figure, and RevPAR will be USD 502, or 26.9% higher than theThis English language notice is a translation of the Japanese-language notice released on January 25, 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

January 2019 figure as of today. ADR and RevPAR are expected to increase as demandfor post COVID-19 travel continues to drive up rates.
3. Residential Assets Overview
The residential portfolio7 in-place occupancy rate as of the end of December 2023 decreased
by 0.1pt to 95.9% compared to the end of the previous month, and decreased by 0.5pt yearover-year.
The average in-place rent per tsubo slightly increased by 0.2% year-over-year. The NOI8
for the residential portfolio in December 2023 increased by 0.9% year-over-year, andincreased by 0.1% on a cumulative basis from July to December 2023 compared to the same
period in 2022.
Rents, compared with those based on the immediately preceding leases, increased by 1.3%
for new leases, increased by 1.3% for renewal leases, and increased by 1.3% for new andrenewal leases combined for December 2023. INV achieved a rent increase on 46.8% oflease contract renewals, and the retention rate for existing tenants was 75.1% for December
2023.
4. Performance* The “Difference” in the table below indicates the increase / decrease in value for the monthof December 2023 or cumulative figures from July to December 2023 compared to thecorresponding value in 2022 or 2019. Hereinafter the same.
(1) 75 Domestic Hotel Properties3
Dec.

Dec.
2023

Dec.
2022

Difference

79.2%

80.5%

-1.3pt84.3%-5.1pt

82.7%

75.9%

12,852

11,503+11.7%

9,677 +32.8%

12,64910,199 +24.0%

10,615 +19.2%

10,178

9,263

+9.9%

8,157 +24.8%

10,462

7,744 +35.1%

9,380+11.5%

6,831

5,963

+14.6%

5,729 +19.2%

40,08830,192 +32.8%

36,937

+8.5%

2019

Difference

Jul.- Dec. Jul.- Dec.
Jul.- Dec.
Difference
Difference
2023
2022
2019

Occupancy
Rate4+6.8pt88.4%-5.7ptADR(JPY)5
RevPAR(JPY)6Gross Revenue(JPY million)9This English language notice is a translation of the Japanese-language notice released on January 25, 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(2) Cayman Hotels
Dec.
2023

Dec.
2022

Difference

77.6%

79.3%

-1.7pt

674

630

523
12,046

Occupancy
Rate4
ADR(USD)5
RevPAR(USD)6Gross Revenue(USD thousand)

Dec.

Difference

2019
85.1%

Jul.- Dec. Jul.- Dec.
Jul.- Dec.
Difference
Difference
2023
2022
2019

-7.5pt

64.8%

56.2%

+8.6pt

72.3%

+7.0%

569 +18.5%

421

403

+4.6%

327 +28.6%

500

+4.7%

484

+8.1%

273

226 +20.7%

237 +15.3%

11,741+2.6%

10,711 +12.5%

43,25736,645 +18.0%

36,299 +19.2%-7.5pt(3) 41 Residential Properties7

Occupancy Rate
Rent per Tsubo(JPY)

End ofDec. 2023

End ofDec. 2022

Difference

Jul.- Dec.
2023

Jul.- Dec.
2022

Difference

95.9%

96.4%

-0.5pt

96.0%

96.3%

-0.3pt

9,224

9,203

+0.2%

9,214

9,172

+0.5%

5. Portfolio NOI1,2,8* For 73 hotels operated by main tenant among INV’s 75 domestic hotels, variable rent wascalculated considering these 73 hotels as one unit during the Covid-19 pandemic period,
which is different from the method used in 2023. As such, comparison of NOI with previous
year (2022 vs. 2023) may not accurately reflect the recovery from the Covid-19 pandemic atproperty/area level in some cases.
(JPY Million)
Tokyo 23 Wards
Greater Tokyo

Dec.
2023
628

Dec.
2022
354

Difference

Dec.
2019

+77.4%

456

Jul.Difference

Jul.-

Jul.Difference

Dec.
2019

Difference

Dec.
2023

Dec.
2022

+37.8%

3,295

1,390 +137.1%

2,837+16.2%

1,178

225 +423.0%

293 +302.2%

2,323

1,070 +117.2%

2,036+14.1%

1,807

579 +211.7%

749 +141.1%

5,619

2,460 +128.4%

4,874+15.3%

178

177

+0.6%

154

+15.3%

1,443

897+60.8%

1,420

+1.6%

Kansai99

134-26.1%

81+21.6%

818

467+75.0%

790+3.6%

Kyushu173

218-20.8%

111+55.4%

1,312

1,090

+20.3%

1,138+15.2%

Hokkaido218

97 +123.9%

151+44.5%

2,012

1,039

+93.5%

1,852

+8.6%

Other domestic

25

171

-85.1%

33-23.7%

1,471

1,398

+5.2%

1,565

-6.0%

Domestic Hotel- Subtotal

2,501

1,378

+81.4%

1,281+95.2%

12,6777,354+72.4%

11,642+8.9%

Residential

186

185

+0.9%

187

-0.4%

1,119

1,118

+0.1%

1,117

+0.2%

Commercial

12

12

-0.0%

12

-0.3%

77

77

-0.1%

77

-0.4%

Domestic Asset-Subtotal

2,701

1,576

+71.3%

1,482+82.3%

13,8738,550+62.3%

12,837+8.1%

Overseas

550

606

-9.3%

541

+1.7%

1,379

1,283

+7.5%

1,297

+6.3%

Total

3,251

2,183

+48.9%

2,023+60.7%

15,253

9,834+55.1%

14,135+7.9%(ex. Tokyo 23 Wards)

Greater Tokyo Subtotal
Chubu

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

(Note 1) Based on all properties held as of the beginning of the December 2023 fiscal period, excluding nine hotels with fixed-rentlease agreements. Nine 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, D39
Comfort Hotel Kurosaki, D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubame-Sanjo, D42 Comfort Hotel Kitami,
and D48 Takamatsu Tokyu REI Hotel. Of nine hotels that are excluded, “D48 Takamatsu Tokyu REI Hotel” has changed
its lease agreement with its major tenant, TOKYU HOTELS CO., LTD., to “fixed rent plus variable rent” effective April 25,
2023, but in consideration of the continuity of disclosed data and other factors, the hotel will continue to be treated as a
hotel with fixed-rent lease agreement for the time being, and will remain excluded. NOI includes a simulated amount ofdividend 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 to September 30 and from October 1 to March 31 every
year, and INV will receive the dividend within three months from the end 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 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 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 andmultiplied by INV’s ownership ratio of the preferred equity interest in the TMK (49.0%). However, the TMK has acumulative 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-month accounting period in order to curb the costs ofsettlement of accounts and did not carry out the six-month settlement in INV’s fiscal period ended December 2022. The
TMK plans to restore to the original six-month settlement once the cumulative 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 cumulativeloss 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 beginning of the December 2023 fiscal period,nine hotels with fixed-rent lease agreements are excluded. As for Sheraton Grande Tokyo Bay hotel, NOI is based on
the figure for the month which is three months prior to the target month for this performance disclosure as INV will receive
the dividend from the TMK within three months of each fiscal period end for the TMK as described above. However, inconsideration of seasonality, figures other than NOI in the table above are based on the figures for June 2023; 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 beginning of the December 2023 fiscal period; hereinafter the same.
(Note 8) NOI excludes one-off insurance-related revenues and expenses; hereinafter the same.
(Note 9) Gross Revenue of Sheraton Grande Tokyo Bay Hotel used in the table is the whole gross revenue of such hotel, regardlessof INV’s ownership ratio of the preferred 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 and
Gross Revenue is rounded down to the nearest million yen.
(Note 11) 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, 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