[For Information Purpose Only
The Japanese language press release should be referred to as the original.]
March 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 February 2021
Invincible Investment Corporation (“INV”) hereby announces its monthly performance.
1. Overall Performance of the Entire Portfolio
As announced in “Notice concerning Conclusion of Memorandum of Understanding toAmend the Fixed-term Building Lease and Property Management Agreement pertaining tothe rent conditions for the period from January to June, 2021 with Major Tenant” dated March11, 2021, INV entered into a Memorandum of Understanding (“MOU”) to amend each fixedterm building lease and property management agreement pertaining to the rent conditions
for the period from January 1, 2021 to June 30, 2021 for the 73 hotels operated by INV'smain tenant, MyStays Hotel Management Co., Ltd. (“MHM”) and its affiliates (collectively the“MHM Group” along with MHM). Under the MOU, we have changed the rent calculation
period to six months from January to the end of June 2021, and determined the fixed rent
amount for the six months to be JPY 1.0 billion and defined the variable rent calculation
method. For details of the MOU, please refer to the above press release.
With the conclusion of the MOU, the GOP1 of 73 hotels operated by the MHM Group fromJanuary 2021 to the end of June 2021 including the amount of the employment adjustment
subsidy will not be fixed until July 2021. Therefore, the amount of NOI2,3 will not be finalized
for the time being.
The following are the details by segment.
2. Hotel Assets Overview(1) Domestic Hotels
This English language notice is a translation of the Japanese-language notice released on March 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 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

As for the domestic hotel portfolio4 performance for the month of February 2021, theoccupancy rate decreased by 44.6pt to 30.2%, ADR decreased by 20.5% to JPY 6,722, andRevPAR decreased by 67.9% to JPY 2,033 compared to February 2020, when the impact
of COVID-19 infections was limited. Please refer to “4. Performance” for a comparison withFebruary 2019.
In February 2021, hotel demand has deteriorated significantly due to the third wave of thenationwide spread of COVID-19 infections and the government extension of the State ofEmergency. However, several hotels in the Tokyo metropolitan area maintained relatively
high occupancy rates by procuring demand from group accommodations as well as demand
related to university entrance exams, thanks to the sales efforts of the MHM Group.
In March 2021, occupancy rates continue to be sluggish due to the impact from self-restraint
regarding business trips and leisure travel because there is still a strong sense of caution
regarding COVID-19 infections despite the lifting of the State of Emergency on March 21.
Although COVID-19 vaccinations in Japan are being rolled out, which we hope will improve
future hotel demand, we are forecasting that March 2021 RevPAR will be at the same level
as March 2020, a decline of approximately 70% compared to March 2019.
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

30.0%

5,367

1,608

Greater Tokyo (ex. Tokyo 23 Wards)

46.8%

8,280

3,876

Chubu

28.6%

6,295

1,798

Kansai

18.0%

4,803

863

Kyushu

24.2%

5,711

1,380

Hokkaido

21.0%

7,263

1,528

Other domestic

33.4%

7,682

2,562

Total

30.2%

6,722

2,033

(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 2020 after being selected as one of the hotels for isolation facilities,
which utilized 39.4% of the rooms in February 2021. The COVID-19 vaccination process
has started from early January 2021. Approximately 41% of the Cayman population havebeen administered the first dose and about a half of them have been administered thesecond dose as of March 19. However, Westin is expected to remain 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. We are hopeful for a full reopening of the Westin within
This English language notice is a translation of the Japanese-language notice released on March 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 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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late 2Q of 2021 while Westin is prepared to reopen under extensive newly establishedcleaning procedures to ensure guest and employee safety.
The NOI3 for February 2021 was JPY -54 million, a significant decrease from JPY 598 million
in February 2020.
3. Residential Assets Overview
The residential portfolio8 in-place occupancy rate as of the end of February 2021 was 95.0%,
a year-over-year decrease of 1.5pt, but an increase of 0.4pt compared to the previous month.
The rent increase program continues to show positive results as the average in-place rent
per tsubo increased by 0.3% year-over-year. The NOI9 for the residential portfolio inFebruary 2021 increased by 0.2% year-over-year.
Rents, compared with those based on the immediately preceding leases, decreased by 0.4%
for new leases, increased by 1.1% for renewal leases, and increased by 0.4% for new andrenewal leases combined for the June 2021 fiscal period. INV achieved a rent increase on
34.9% of lease contract renewals for the June 2021 fiscal period. The retention rate for theexisting tenants continues to be high at 82.9% for the June 2021 fiscal period.
4. Performance* The “Difference” in the table below indicates the increase / decrease in value for the monthof February 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

Feb.

Feb.
2021

Feb.
2020

Difference

30.2%

74.9%

-44.6pt

87.9%-57.7pt

31.1%

78.4%

-47.3pt

84.8%-53.7pt

6,722

8,455

-20.5%

10,021-32.9%

6,590

8,448

-22.0%

9,414-30.0%

2,033

6,331

-67.9%

8,811-76.9%

2,051

6,622

-69.0%

7,982-74.3%

1,266

4,076

-68.9%

5,125-75.3%

2,829

8,791

-67.8%

9,962-71.6%

Feb.
2021Feb.
2020

Difference

10.9%

93.8%

-82.9pt

92.9%-82.0pt

8.6%

90.9%

-82.2pt

90.6%-81.9pt

171504-66.1%

519-67.1%

173

489-64.7%

482-64.2%

2019

Difference

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

(2) Cayman Hotels

Occupancy
Rate5
ADR(USD)6Feb.
2019

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 March 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 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RevPAR(USD)7Gross Revenue(USD thousand)

19

473

-96.1%

482-96.1%

15444-96.6%

437-96.6%

749

11,011-93.2%

10,592-92.9%

1,258

20,880-94.0%

20,081-93.7%

Difference

Jan.-Jun.
2021

Jan.-Jun.
2020

Difference(3) 54 Residential Properties8
End ofFeb.
2021
Occupancy Rate
Rent per Tsubo(JPY)

End ofFeb.
2020

95.0%

96.5%

-1.5pt

94.8%

96.2%

-1.4pt

9,049

9,018

+0.3%

9,048

9,032

+0.2%

Feb.
2019

Difference

5. Portfolio NOI2,3,9(JPY Million)
Tokyo 23 Wards
Greater Tokyo

Feb.
2021

Feb.
2020

Difference

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

-

257

-

400-

-

598

-

778

-

-

299

-

331-

-

615

-

621

-

Greater Tokyo Subtotal

-

557

-

732

-

-

1,214

-

1,400

-

Chubu

-

101-

130-

-

205

-

224

-

Kansai

-

68-

116-

-

146-

216

-

Kyushu

-

92-

156

-

-

199

-

292

-

Hokkaido

-

199-

385

-

-

340

-

544

-

Other domestic

-

72-

70

-

-

84-

47

-

Domestic Hotel- Subtotal-

1,092-

1,593

-

-

2,189-

2,725-

Residential

228

227

∔0.2%

221

∔3.1%

454

459

-0.9%

445

∔2.1%

Commercial

30

31-1.8%31-1.8%

60

60

-0.5%

61

-1.2%

Domestic Asset- Subtotal-

1,351-

1,845--

2,709-

3,232-

Overseas

-54

598-

565-

-135

1,086-

1,046-

Total-

1,950-

2,411--

3,795-

4,278-(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 February 2021, excluding 9 hotels with fixed-rent lease agreements. 9hotels 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 monthlybasis, 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.
This English language notice is a translation of the Japanese-language notice released on March 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.

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(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 February 2021, 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 theTMK 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 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 February 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 March 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 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.

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

TBD

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 SusukinoSapporo-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 March 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 March 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 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