[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
January 25, 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 December 2020
Invincible Investment Corporation (“INV”) hereby announces its monthly performance.
1. Overall Performance of the Entire Portfolio
The overall portfolio NOI1,2 for December 2020 decreased by 85.7% year-over-year anddecreased by 78.8% year-over-year on a cumulative basis for the December 2020 fiscal
period (from July to December).
As announced in “Notice concerning Conclusion of Memorandum of Understanding toAmend the Fixed-term Building Lease and Property Management Agreement pertaining to
the rent conditions for the period from October to December, 2020 with Major Tenant” dated
December 11, 2020, INV entered into a Memorandum of Understanding (“MOU”) to amend
each fixed-term building lease and property management agreement pertaining to the rent
conditions for the period from October 1, 2020 to December 31, 2020 for 73 hotels owned
by INV with INV’s main tenant, MyStays Hotel Management Co., Ltd. and its affiliates (“MHMGroup”). Under the MOU, we have changed the rent payment conditions for the threemonths in terms of the amount of fixed rent payment and the variable rent calculation method.
The rent paid from MHM Group for the three months (October through December) was fixed
rent of JPY 806 million and variable rent of JPY 652 million, for a total of JPY 1,458 million.
This is equivalent to 54.3% of fixed rent under the original leasing agreements for the same
period. As a result, NOI of 73 hotels operated by MHM Group for the three months was
JPY 1,086 million. For details on the MOU, please refer to the above press release.
The following are the details by segment.

This English language notice is a translation of the Japanese-language notice released on January 25, 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 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2. Hotel Assets Overview(1) Domestic Hotels
The domestic hotel portfolio3 performance for the month of December 2020 has shown yearover-year declines in Occupancy of 37.4pt, ADR of 14.6%, and RevPAR of 52.5%. The
December 2020 NOI2 decreased significantly year-over-year and the cumulative NOI for the
December 2020 fiscal period (July to December) decreased by 83.6% compared to the same
period last year.
In December 2020, the occupancy rates of hotels located in local areas, which have been
relatively high since summer, have deteriorated because of the nationwide spike of COVID19 cases as Japan is now experiencing a third wave of infections, which led to thesuspension of the Go To Travel Campaign. Hotels in Sapporo City and Osaka City wereparticularly hit hard by the exclusion from the Go To Travel Campaign instituted on November
24, 2020. On the other hand, several hotels in the Tokyo metropolitan area maintained
relatively high occupancy rates, thanks to sales efforts of MHM Group, procuring demand
for group accommodations of foreign students, technical trainees, and other groups for selfisolation following the relaxation of immigration controls on foreigners from October 2020.
In January 2021, occupancy rates have declined due to the government enacted State ofEmergency, covering 11 prefectures centered on the Tokyo metropolitan area and the Kansai
area.
Therefore, we are forecasting RevPAR in January 2021 to decrease byapproximately 70% year-over-year.
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

50.6%

4,834

2,446

Greater Tokyo (ex. Tokyo 23 Wards)

73.4%

10,775

7,909

Chubu

42.1%

7,551

3,178

Kansai

20.8%

5,082

1,055

Kyushu

47.1%

8,117

3,825

Hokkaido

22.0%

7,536

1,655

Other domestic

55.3%

14,432

7,976

Total

46.9%

8,264

3,874

(2) Cayman Hotels
Owen Roberts International Airport in Grand Cayman has resumed acceptance of foreign
nationals on a limited basis. Of the Cayman Hotels (the Westin Grand Cayman Seven Mile
Beach & Spa ("Westin") and Sunshine Suites Resort ("Sunshine")), Sunshine has resumed
operations from October after being selected as one of the hotels for isolation facilities, which
utilized 31.4% of the rooms in December 2020. However, Westin is expected to remain
This English language notice is a translation of the Japanese-language notice released on January 25, 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 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

closed for the time being, except for one restaurant, as the Cayman Islands government has
not disclosed when the ban on tourists will be lifted. Even though Westin remains closed,
Westin's revenue increased in December 2020 due to the cancellation charge of groupreservations and the settlement of accommodation charges using Marriott’s loyalty program
before closing.
The NOI2 for December 2020 decreased by 91.6% year-over-year and the NOI on a
cumulative basis for the December 2020 fiscal period (July to December) decreased
significantly year-over-year.
3. Residential Assets Overview
The residential portfolio7 in-place occupancy rate as of the end of December 2020 was
94.2%, a year-over-year decrease of 1.8pt. The rent increase program continues to show
positive results as the average in-place rent per tsubo as of the end of December 2020
increased by 1.0% year-over-year. NOI8 for the residential portfolio in December 2020
decreased by 12.4% year-over-year and decreased by 2.3% year-over-year on a cumulativebasis for the December 2020 fiscal period (July to December) mainly due to the sale of six
residential properties executed on December 18, 2020. NOI8 for the 54 residential
properties excluding the six properties sold in December 2020 decreased by 4.6% yearover-year and decreased by 0.9% year-over-year on a cumulative basis for the December
2020 fiscal period (July to December).
Rents, compared with those based on the immediately preceding leases, increased by 0.2%
for new leases, 1.2% for renewal leases, and 0.7% for new and renewal leases combined
for the December 2020 fiscal period. INV achieved a rent increase on 36.8% of lease
contract renewals for the December 2020 fiscal period. The retention rate for the existing
tenants continues to be high at 84.1% for the December 2020 fiscal period.
4. Performance(1) 75 Domestic Hotel Properties3
Cumulative (Jul.-Dec.)
2019
(C－D)
(D)

Dec.
2020
(A)

Dec.
2019
(B)

(A－B)

YoY
ChangeOccupancy Rate4

46.9%

84.3%

-37.4pt-44.4%

48.3%

88.4%

-40.0pt-45.3%ADR (JPY)5

8,264

9,677

-1,413-14.6%

8,374

10,615-2,240-21.1%

RevPAR (JPY)6

3,874

8,157

-4,283-52.5%

4,046

9,380

-5,333-56.9%

Gross Revenue(JPY million)9

3,122

5,729

-2,606-45.5%

17,92536,937-19,011-51.5%

Dec.
2019
(B)

(A－B)

YoY
Change85.1%-76.4pt-89.8%

2020
(C)

YoY
Change(2) Cayman Hotels
Dec.
2020
(A)
Occupancy Rate4

8.7%

Cumulative (Jul.-Dec.)
2020
(C)
4.5%

2019
(D)

(C－D)

YoY
Change72.3%-67.8pt-93.8%

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

ADR (USD)5

164

569

-404

-71.1%

173

327

-154

-47.1%

RevPAR (USD)6

14

484

-470

-97.1%

8

237

-229

-96.7%

Gross Revenue(USD thousand)

1,589

10,711-9,121-85.2%

3,096

36,299-33,203-91.5%(A－B)

YoY
ChangeCumulative (Jul.-Dec.)
2019
(C－D)
(D)

YoY
Change(3) 60 Residential Properties7
Dec.
2020
(A)

Dec.
2019
(B)

94.2%

96.0%

-1.8pt

-1.9%

94.6%

96.3%

-1.7pt

-1.7%

9,164

9,077

+87

+1.0%

9,132

9,082

+50

+0.6%

Occupancy Rate
Rent per Tsubo
(JPY)

2020
(C)

5. Portfolio NOI
2019 Simulated

NOI1,2 (JPY million)

NOI10
December(JPY
million)

Ratio

2020

2019

Cumulative (Jul.-Dec.)
YoY
Change

2020

2019

YoY
ChangeTokyo 23 Wards

5,980

19.4%

-17

456

-

113

2,837

-96.0%

Greater Tokyo (ex. Tokyo 23 Wards)

4,094

13.3%

35

293

-87.8%

334

2,036-83.6%

Greater Tokyo – Subtotal

10,075

32.7%

18

749

-97.6%

448

4,874-90.8%

Chubu

2,791

9.1%

-4

154

-

328

1,420

-76.9%

Kansai

1,775

5.8%

-5

81

-

-17

790

-

Kyushu

2,315

7.5%

0

111

-99.8%

180

1,138-84.2%

Hokkaido

3,442

11.2%

-29

151

-

70

1,852

-96.2%

Other domestic

2,700

8.8%

7

33

-77.0%

903

1,565-42.3%

Domestic Hotel – Subtotal

23,100

75.0%

-13

1,281

-

1,912

11,642-83.6%

Residential

3,281

10.6%

241

275

-12.4%

1,614

1,653

-2.3%

Commercial

368

1.2%

30

30

+0.5%

179

184

-2.4%

Domestic Asset – Subtotal

26,750

86.8%

258

1,587

-83.7%

3,707

13,480-72.5%

Overseas

4,070

13.2%

45

541

-91.6%

-571

1,297

-

Total

30,820100.0%

303

2,128-85.7%

3,135

14,778-78.8%(Note 1) Based on all properties held as of the end of December 2020, including six properties which are Nisshin Palacestage
Higashi-Nagasaki, Nishiwaseda Cresent Mansion, Neo Prominence, City Court Kitaichijo, Lexington Square
Akebonobashi and Lexington Square Daitabashi sold on December 18, 2020 and excluding 9 hotels with fixed-rent leaseagreements. 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”) thatowns 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 threemonths 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
This English language notice is a translation of the Japanese-language notice released on January 25, 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 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

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%). 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 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 2020, 9 hotels with fixed-rentlease 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 the
TMK 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 2020; 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 60 properties held by INV as of the beginning of July 2020. Of the 60 properties, six properties which are
Nisshin Palacestage Higashi-Nagasaki, Nishiwaseda Cresent Mansion, Neo Prominence, City Court Kitaichijo, Lexington
Square Akebonobashi and Lexington Square Daitabashi were sold on December 18, 2020. Therefore, for the six
properties sold, July 1, 2020 through December 17, 2020 is deemed as the operating period for the December 2020 fiscal
period, and the leased area and the leasable area as of December 17, 2020 are deemed as them as of the end of
December 2020 to calculate each number; hereinafter the same.
(Note 8) NOI excludes one-off insurance-related revenues and expenses as well as one-off custodian fee associated with a trust
split. NOI of six properties which are Nisshin Palacestage Higashi-Nagasaki, Nishiwaseda Cresent Mansion, Neo
Prominence, City Court Kitaichijo, Lexington Square Akebonobashi and Lexington Square Daitabashi sold on December
18, 2020 is based on the data through the day before sale date, excluding one-off custodian fee associated with property
sales; 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) Based on 148 properties owned by INV as of the beginning of July 2020, assuming all properties were owned since thebeginning of 2019. Includes the dividend from preferred equity interest of TMK that owns Sheraton Grande Tokyo Bay
Hotel, assuming this dividend contributed throughout the June 2019 fiscal period and the December 2019 fiscal period of
INV. The revenue from the Cayman Hotels is calculated at the exchange rate of US$1 to ¥110.
(Note 11) 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 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 per tsubo
is calculated by dividing the sum of the total rental revenue including common area charges for each month by the sum 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 January 25, 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 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

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

Property Name

Location

Closed Date

End Date of
Closing Period(Note 1)

D200

Westin Grand Cayman Seven
Mile Beach Resort & Spa

Cayman Islands

Mar. 22, 2020

TBD

D3

Hotel MyStays Kyoto-Shijo

Kyoto-shi, Kyoto

May 1, 2020

Jun. 30, 2020

D44

Hotel Epinard Nasu

Nasu-gun,Tochigi

Apr. 28, 2020

May 31, 2020

Jan. 24, 2021

Feb. 7, 2021

D48

Takamatsu Tokyu REI Hotel

Takamatsu-shi,
KagawaApr. 25, 2020

May 31, 2020

D53

Hotel MyStays
Sapporo Station

Sapporo-shi,
HokkaidoMar. 18, 2020

Jul. 17, 2020

D65

Art Hotel Ishigakijima

Ishigaki-shi,
Okinawa

Apr. 20, 2020

May 31, 2020

D66

Hotel MyStays Fuji
Onsen Resort

Fujiyoshida-shi,
Yamanashi

May 1, 2020

Jun. 11, 2020

D68

Hotel MyStays
Kanazawa Castle

Kanazawa-shi,Ishikawa

Apr. 13, 2020

Jun. 30, 2020

Jan. 24, 2021

Feb. 7, 2021

Hotel MyStays PremierKanazawa

D71

Hotel Nord Otaru

Otaru-shi,
HokkaidoMar. 18, 2020

Jun. 30, 2020

Hotel Sonia Otaru

D75

Hotel MyStays
Sapporo Susukino

Sapporo-shi,
HokkaidoMar. 18, 2020

Jul. 17, 2020

Dec. 1, 2020

Dec. 15, 2020

D76

Hotel Mystays
Sapporo Nakajima Park

Sapporo-shi,
HokkaidoMar. 18, 2020

Jul. 17, 2020

Jan. 12, 2021

Feb. 7, 2021

Mar. 6, 2020

Jul. 17, 2020

Dec. 1, 2020Feb. 7, 2021

Hotel That Consolidates
Operations During Close-

Hotel MyStays
Sapporo Aspen-

D77

Hotel MyStays
Sapporo Nakajima Park Annex

Sapporo-shi,
Hokkaido

D79

MyCUBE by MYSTAYS
Asakusa Kuramae

Taito-ku,Tokyo

Mar. 8, 2020

Oct. 31, 2020

D201

Sunshine Suites Resort

Cayman Islands

Mar. 22, 2020

Sep. 30, 2020-

Sheraton GrandeTokyo Bay Hotel

Urayasu-shi,
Chiba

Apr. 28, 2020

Jun. 29, 2020

Hotel MyStays Premier
Sapporo Park-

(Note 1) Expected end of closing period as of today, which could 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 and is scheduled to be used as such until March 2021.

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

6