[For Information Purpose Only]

June 25, 2018

To All Concerned Parties
Name of REIT Issuer:
Invincible Investment Corporation
Name of representative:
Naoki Fukuda, Executive Director
Roppongi Hills Mori Tower
6-10-1 Roppongi, Minato-ku, Tokyo, Japan(Securities code: 8963)
Asset manager:
Consonant Investment Management Co., Ltd.
Naoki Fukuda, CEOContact: Jun Komo
General Manager of Planning Department(Tel. +81-3-5411-2731)

Performance Update for May 2018
Invincible Investment Corporation (“INV”) hereby announces its monthly performance for hoteland residential assets.
1. Hotel and Residential Assets Overview
The combined NOI for the hotel and residential portfolio1 increased by 0.3% for the June 2018
fiscal period (January to May, year-on-year).
(Note 1) Based on 45 hotel properties and 64 residential properties stated in “4. Performance (1) 45 Hotel Properties” and “(2)64 Residential Properties” below.
(Note 2) NOI includes a simulated amount of dividend income from Kingdom TMK (the “TMK”) that owns Sheraton GrandeTokyo Bay Hotel as an underlying asset. The fiscal periods of the TMK are semi-annual periods from April 1 toSeptember 30 and from October 1 to March 31 every year, and INV will receive the dividend within three months fromthe end of each semi-annual fiscal period of the TMK. Since INV does not receive a dividend from the TMK on amonthly basis, the amount of dividend INV receives from the TMK for the month of May 2018 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 from October 1, 2017 to March 31, 2018 by the numberof months in the relevant fiscal period) from (ii) NOI based on the performance of Sheraton Grande Tokyo Bay Hotel inFebruary 2018 which is three months before May 2018 and multiplied by INV’s ownership ratio of the preferred equity
interest in the TMK (49.0%).

2. Hotel Assets Overview
The hotel portfolio1 performance for the month of May 2018 (year-on-year) has shown declines
in occupancy, ADR and RevPAR of 2.0pt, 2.2% and 4.5%, respectively. The declines inOccupancy, ADR and RevPAR year-on-year are primarily due to (i) unfavorable calendar
formation in which there was a four-day holiday during Golden Week in May 2018 compared toa five-day holiday in May 2017 and (ii) renovation work in progress at the following four hotels2:
Hotel MyStays Kyoto-Shijo, MyStays Shin-Urayasu Conference Center, Hotel MyStays
This English language notice is a translation of the Japanese-language notice released on June 25, 2018 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Maihama and Hotel MyStays Premier Dojima. The May 2018 NOI decreased by 1.3%
(year-on-year), and the cumulative NOI for the June 2018 fiscal period is down by 0.8%
compared to the same period last year.
Occupancy, ADR, RevPAR and NOI for the hotel portfolio excluding the four hotels underrenovation have shown year-on-year declines of 0.5pt, 1.4% and 1.9%, respectively for themonth of May, while NOI increased by 3.3% year-on-year for the month of May 2018.
(Note 1) Based on 45 hotel properties stated in “4. Performance (1) 45 Hotel Properties” below.
(Note 2) Renovation period are as follows:
Hotel MyStays Kyoto-Shijo - May 7, 2018 to July 12, 2018MyStays Shin-Urayasu Conference Center - May 7, 2018 to May 30, 2018
Hotel MyStays Maihama - May 7, 2018 to July 3, 2018
Hotel MyStays Premier Dojima - May 6, 2018 to July 9, 2018.

3. Residential Assets Overview
The residential portfolio1 occupancy rate as of the end of May 2018 was 95.6% (+0.8pt
year-on-year). The rent increase program continues to maintain progress as average rent per
tsubo as of the end of May 2018 increased by 2.0% year-on-year.
Rents, compared with immediately preceding leases, increased by 2.5% across all new leases,2.2% across all renewal leases, and 2.4% across all combined new and renewal leases for theJune 2018 fiscal period.
INV achieved a rent increase for 55.6% of contract renewals (June 2018 fiscal period), incomparison to 54.2% for the full year 2017 (+1.4% year-on-year). The retention rate for existing
tenants was high at 85.9% for the June 2018 fiscal period.
NOI2 increased by 2.5% in May 2018 and is up by 3.6% for the June 2018 fiscal period.
(Note 1) Based on 64 residential properties stated in “4. Performance (2) 64 Residential Properties” below.
(Note 2) NOI excludes one-off insurance-related revenues and expenses. NOI is provisional figure and subject to change when
it is determined at financial closing; hereinafter the same.

4. Performance(1) 45 Hotel Properties1

86.6%
10,7059,275

Same month ofthe previous year
(B)
88.7%
10,9509,710

3,774
45May 2018
(A)
Occupancy Rate2
ADR (JPY)3
RevPAR (JPY)4
Gross Revenue(JPY million)5# of Properties

Difference(A－B)

YoY Change-2.0pt-246-435

-2.3%
-2.2%
-4.5%

3,947-172-4.4%

45――This English language notice is a translation of the Japanese-language notice released on June 25, 2018 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 owninvestigation 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Occupancy Rate2
ADR (JPY)3
RevPAR (JPY)4
Gross Revenue(JPY million)5# of Properties

Fiscal period
ending June 2018
Cumulative6(C)88.3%
10,4189,199

Same period of
the previous year7(D)Difference(C－D)

YoY Change

88.6%
10,5719,366-0.3pt
-153
-167

-0.3%
-1.4%
-1.8%

17,852

18,170

-318

-1.8%

4545――

95.6%

Same month ofthe previous year
(B)
94.8%

9,787
64

(2) 64 Residential Properties8May 2018
(A)
Occupancy Rate
Rent per Tsubo(JPY)# of Properties

Occupancy Rate11
Rent per Tsubo11(JPY)# of Properties

Fiscal period
ending June 2018
Cumulative6(C)
95.5%Difference(A－B)

YoY Change+0.8pt+0.8%

9,597+190

+2.0%

64―

―

Same period of
the previous year7(D)

Difference(C－D)

YoY Change

95.2%+0.3pt

+0.3%

9,730

9,471+259

+2.7%

6464―

―

(Note 1) Based on 45 hotel properties; of the 54 hotel properties (including Sheraton Grande Tokyo Bay Hotel, the underlying
asset of preferred equity interest held by INV) held as of the beginning of January 2018, 9 hotels with fixed-rent leaseagreements are excluded. 9 hotels with fixed-rent lease agreements are D29 Super Hotel Shinbashi/ Karasumoriguchi,
D33 Comfort Hotel Toyama, D36 Super Hotel Tokyo-JR Tachikawa Kitaguchi, D37 Super Hotel JR Ueno-iriyaguchi, D39Comfort Hotel Kurosaki, D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubame-Sanjo, D42 Comfort Hotel Kitami,
and D48 Takamatsu Tokyu REI Hotel. As for Sheraton Grande Tokyo Bay hotel, NOI is based on the figure for February
2018 which is three months prior to May 2018 as INV will receive the dividend from the TMK within three months of eachfiscal period end for the TMK as described above. However, in consideration of seasonality, figures in the table above arebased on the figures for May 2018.
(Note 2) “Occupancy Rate” for hotel portfolio is calculated using the following formula:room occupancy rate = total number of rooms occupied during the relevant period ÷ (aggregate number of rooms during
the relevant period x number of business days during target period)(Note 3) “ADR,” or Average Daily Rate, is the value of the total room sales for a certain period (excluding service fees) divided by
the total number of sold rooms for the same period.
(Note 4) “RevPAR,” or Revenues Per Available Room, is calculated by dividing the total sales for a certain period by the aggregate
number of rooms for the same period (rooms x number of days), and is the same as product of room occupancy rate andADR.
(Note 5) Gross Revenue of Sheraton Grande Tokyo Bay Hotel used in the table is the whole gross revenue of such hotel,
regardless of INV’s ownership ratio of the preferred equity interest in the TMK (49.0%)(Note 6) Figures for January to May 2018 are stated.
(Note 7) Figures for January to May 2017 are stated. Figures are based on the assumption that the properties acquired fromJanuary 1, 2017 to December 31, 2017 were held as of January 1, 2017, and figures before acquisition by INV is basedon the data obtained from third-parties including previous owners.

This English language notice is a translation of the Japanese-language notice released on June 25, 2018 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.

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(Note 8) Of the 67 properties held as of the beginning of January 2018, three properties sold in January 2018 are excluded.
(Note 9) Percentages are rounded to one decimal place. ADR and RevPAR are rounded to the nearest yen and Gross Revenue isrounded down to the nearest million yen.
(Note 10) For the details of performance for each asset, please visit INV’s website:
http://www.invincible-inv.co.jp/eng/cms/review.html(Note 11) Cumulative occupancy rate for residential portfolio is calculated by dividing the sum of total leased area by the sum of
total leasable area at the end of each month and the percentages are rounded to one decimal place. Cumulative rent per
tsubo is calculated by dividing the total rental revenue including common area charges for each month by the sum of total
leasable area at the end of each month.

Website of INV: http://www.invincible-inv.co.jp/eng

This English language notice is a translation of the Japanese-language notice released on June 25, 2018 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.

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