[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
April 23, 2021
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 March 2021
Invincible Investment Corporation (“INV”) hereby announces its monthly performance.
1. Overall Performance of the Entire Portfolio
Similar to the previous month, both the domestic and overseas hotel portfolios for March
2021 were heavily affected by the coronavirus (COVID-19). Regarding the residential
portfolio, COVID-19 continues to have a minor impact on the occupancy rate. The
residential occupancy rate for March 2021 decreased by 0.9pt year-over-year, but increasedby 1.0pt compared to the previous month.
As announced in “Performance Update for February 2021” dated March 25, 2021, the GOP1and NOI2,3 of domestic hotels for each month from January to June 2021 will not be finalized
for the time being.
The following are the details by segment.
2. Hotel Assets Overview(1) Domestic Hotels
As for the domestic hotel portfolio4 performance for the month of March 2021, the occupancy
rate decreased by 49.6pt to 38.7%, ADR decreased by 26.7% to JPY 7,362, and RevPAR
decreased by 67.9% to JPY 2,849 compared to March 2019 prior to the COVID-19 pandemic.
A comparison with March 2020 is described in “4. Performance” and RevPAR for March 2021
was at a similar level to March 2020.
In March 2021, hotel demand was sluggish due to the government extension of the State ofThis English language notice is a translation of the Japanese-language notice released on April 23, 2021 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.

1

Emergency in Tokyo and three surrounding prefectures. However, several hotels in theTokyo metropolitan area maintained relatively high occupancy rates by procuring demand
from group accommodations, and some hotels in local areas have captured businessdemand, thanks to the sales efforts of MyStays Hotel Management Co., Ltd., INV’s main
hotel operator.
In April 2021, a quasi-State of Emergency has been implemented in Miyagi, Tokyo,Kanagawa, Saitama, Chiba, Aichi, Kyoto, Osaka, Hyogo and Okinawa prefectures and theissuance of another State of Emergency for several prefectures has been discussed as ofApril 22, 2021. There are no signs that COVID-19 infections will be contained, and theoccupancy rates have been sluggish due to the impact from self-restraint regarding businesstrips and leisure travel. As of today, we are forecasting that April 2021 RevPAR will
significantly exceed April 2020, but will be approximately 70% lower than the April 2019
figure.
Table below shows the KPIs for each area of the 75 domestic hotels portfolio4.
Area

Occupancy Rate5

ADR (JPY)6

RevPAR (JPY)7Tokyo 23 Wards

34.0%

5,340

1,815

Greater Tokyo (ex. Tokyo 23 Wards)

52.6%

8,673

4,560

Chubu

39.3%

6,880

2,703

Kansai

27.6%

5,260

1,453

Kyushu

35.2%

6,823

2,400

Hokkaido

28.0%

6,359

1,779

Other domestic

60.0%

11,885

7,135

Total

38.7%

7,362

2,849

(2) Cayman Hotels
Of the Cayman Hotels (the Westin Grand Cayman Seven Mile Beach & Spa ("Westin") andSunshine Suites Resort ("Sunshine")), Sunshine has operated as one of the hotels for
isolation facilities, which utilized 28.7% of the rooms in March 2021. The NOI3 for theCayman Hotels in March 2021 was JPY -73 million, a significant decrease from JPY 180
million in March 2020. The COVID-19 vaccination process has started from early January
2021. Approximately 54% of the Cayman population have been administered the first doseand approximately 45% have been administered the second dose as of April 21. In theUnited States, which accounts for more than 80% of the number of tourists visiting theCayman Islands by country, there are signs of a recovery in travel demand along with
progress in vaccinations. While the timing for resuming commercial flights at Owen
Roberts International Airport in Grand Cayman is undetermined as of today, Westin isscheduled to reopen in a limited way from June 1, 2021 mainly to capture the staycation
demand by domestic customers and to prepare for a subsequent resumption of accepting
tourists from overseas.
This English language notice is a translation of the Japanese-language notice released on April 23, 2021 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 portfolio8 in-place occupancy rate as of the end of March 2021 was 96.0%,
a year-over-year decrease of 0.9pt, but an increase of 1.0pt compared to the previous month.
The average in-place rent per tsubo decreased by 0.8% year-over-year. The NOI9 for theresidential portfolio in March 2021 decreased by 2.8% year-over-year.
Rents, compared with those based on the immediately preceding leases, decreased by 1.5%
for new leases, increased by 0.8% for renewal leases, and decreased by 0.1% for new andrenewal leases combined for the June 2021 fiscal period. INV achieved a rent increase on
25.4% of lease contract renewals for the June 2021 fiscal period. The retention rate for theexisting tenants continues to be high at 83.2% for the June 2021 fiscal period.
4. Performance* The “Difference” in the table below indicates the increase / decrease in value for the monthof March 2021 or cumulative figures from January to June 2021 compared to thecorresponding value in 2020 or 2019. Hereinafter the same.
(1) 75 Domestic Hotel Properties4

Occupancy
Rate5
ADR(JPY)6
RevPAR(JPY)7Gross Revenue(JPY million)10

Mar.

Mar.
2021

Mar.
2020

Difference

38.7%

43.8%

-5.1pt88.3%-49.6pt

33.7%

66.6%

-32.9pt

86.0%-52.3pt

7,362

6,539 +12.6%

10,044-26.7%

6,895

8,021

-14.0%

9,637-28.4%

2,849

2,864

-0.5%

8,869

-67.9%

2,326

5,342

-56.5%

8,288-71.9%

2,443

2,027 +20.5%

6,047-59.6%

5,409

10,818-50.0%

16,009-66.2%

Mar.
2021

Mar.
2020

Difference

2019

7.9%

44.6%

-36.6pt

93.6%-85.7pt

8.4%

75.1%

-66.7pt

91.6%-83.2pt

154482-68.0%

478-67.7%

167

487-65.8%

481-65.3%

12215-94.3%

447-97.3%

14366-96.2%

440-96.8%

585

5,633-89.6%

11,039-94.7%

1,844

26,514-93.0%

31,121-94.1%

2019

Difference

Jan.-Jun. Jan.-Jun.
Jan.-Jun.
Difference
Difference
2021
2020
2019

(2) Cayman Hotels

Occupancy
Rate5
ADR(USD)6
RevPAR(USD)7Gross Revenue(USD thousand)Mar.

Difference

Jan.-Jun. Jan.-Jun.
Jan.-Jun.
Difference
Difference
2021
2020
2019

This English language notice is a translation of the Japanese-language notice released on April 23, 2021 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) 54 Residential Properties8

Occupancy Rate
Rent per Tsubo(JPY)End ofMar. 2021

End ofMar. 2020

Difference

Jan.-Jun.
2021

Jan.-Jun.
2020

Difference

96.0%

96.9%

-0.9pt

95.2%

96.4%

-1.2pt

8,967

9,039

-0.8%

9,020

9,034

-0.2%

5. Portfolio NOI2,3,9(JPY Million)
Tokyo 23 Wards
Greater TokyoMar.
2021Mar.
2020Difference

Mar.
2019

Difference

Jan.-Jun. Jan.-Jun.
Jan.-Jun.
Difference
Difference
2021
2020
2019

-

34-

611

-

-

633

-

1,389

-

-

144-

444

-

-

759

-

1,077

-

Greater Tokyo Subtotal

-

178

-

1,055

-

-

1,392

-

2,467

-

Chubu

-

-23-

247

-

-

181

-

471

-

Kansai

-

-42-

213-

-

103-

429

-

Kyushu

-

-30

-

255

-

-

168

-

547

-

Hokkaido

-

-261

-

154

-

-

78-

698

-

Other domestic

-

-93-

283

-

--8-

331

-

Domestic Hotel- Subtotal

--272

-

2,209

-

-1,917-

4,946-

Residential

227

233

-2.8%

221

∔2.8%

682

692

-1.6%

666

∔2.3%

Commercial

30

30

+0.1%

30

-1.4%

90

90

-0.3%

91

-1.2%

Domestic Asset- Subtotal--8-2,461--

2,701-

5,704-

Overseas

-73

180-

612-

-209

1,266-

1,658

-

Total

-

171-

3,073--

3,967-

7,363-(ex. Tokyo 23 Wards)(Note 1) GOP means the gross operating profit, and is the amount remaining after deducting costs of hotel operations (thepersonnel, utility and advertising expenses and other expenses) and the management services fee to operators (if any)
from the hotel’s revenues.
(Note 2) Based on all properties held as of the end of March 2021, excluding 9 hotels with fixed-rent lease agreements. 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, 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 inthe TMK (49.0%). 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 thesame.
(Note 3) 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 4) 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 March 2021, 9 hotels with fixed-rent leaseagreements are excluded. As for Sheraton Grande Tokyo Bay hotel, NOI is based on the figure for the month which isthree 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, in consideration of seasonality, figures
This English language notice is a translation of the Japanese-language notice released on April 23, 2021 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other than NOI in the table above are based on the figures for December 2020; hereinafter the same.
(Note 5) “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 6) “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 7) “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 8) Based on 54 properties held by INV as of the end of March 2021.
(Note 9) NOI excludes one-off insurance-related revenues and expenses.
(Note 10) 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 11) 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 12) 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 pertsubo 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 13) 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 April 23, 2021 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.

5(Appendix 1)<Temporary Closure Status of Hotels Owned by INV>1
Property
Number

Property Name

Location

Closed Date

End Date ofClosing Period

D200

Westin Grand Cayman Seven
Mile Beach Resort & Spa

Cayman Islands

Mar. 22, 2020

May 31, 2021

D44

Hotel Epinard Nasu

Nasu-gun,Tochigi

Jan. 24, 2021

Feb. 26, 2021

D68

Hotel MyStays
Kanazawa Castle

Kanazawa-shi,Ishikawa

Jan. 24, 2021

Feb. 28, 2021

D75

Hotel MyStays
Sapporo Susukino

Sapporo-shi,
Hokkaido

Feb. 1, 2021

Mar. 21, 2021

D76

Hotel Mystays
Sapporo Nakajima Park

Sapporo-shi,
Hokkaido

Jan. 12, 2021

Mar. 21, 2021

D77

Hotel MyStays
Sapporo Nakajima Park Annex

Sapporo-shi,
Hokkaido

Dec. 1, 2020

Mar. 21, 2021

Hotel That Consolidates
Operations During Close-

Hotel MyStays PremierKanazawa

Hotel MyStays Premier
Sapporo Park

(Note 1) As of April 22, 2021, and subject to change.
(Note 2) In addition to the above, APA Hotel Yokohama-Kannai has been used as an accommodation and medical facility for people
with mild COVID-19 cases since August 4, 2020 and is scheduled to be used as such until July 2021.

This English language notice is a translation of the Japanese-language notice released on April 23, 2021 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.

6