[For Information Purpose Only. The Japanese language press release should be referred to as the original.] December 19, 2023 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) Notice concerning Revision of Forecast of Financial Results and Distribution for the 41st Fiscal Period Ending December 2023 and 42nd Fiscal Period Ending June 2024, together with Forecast of Financial Results and Distribution for the 43rd Fiscal Period Ending December 2024 Invincible Investment Corporation (“INV”) today announced the revision of its forecast of financial results and Distribution per Unit (“DPU”) for the fiscal periods ending December 2023 (41st Fiscal Period) and June 2024 (42nd Fiscal Period), which were previously announced in "Financial Summary for the June 2023 Fiscal Period (from January 1, 2023 to June 30, 2023)" dated August 24, 2023, together with the newly announced forecast of financial results and DPU for the fiscal period ending December 2024 (43rd Fiscal Period). Revision of the forecast of financial results and distribution for the fiscal period ending December 1. 2023 (from July 1, 2023 to December 31, 2023) and forecast of financial results and distribution for the fiscal periods ending June 2024 (from January 1, 2024 to June 30, 2024) and December 2024 (from July 1, 2024 to December 31, 2024) This English language notice is a translation of the Japanese-language notice released on December 19, 2023 and was prepared solely for the convenience of, and reference by, 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 the Japanese original, the latter shall prevail in all respects. 1
<Fiscal Period Ending June 2024>
This English language notice is a translation of the Japanese-language notice released on December 19, 2023 and was prepared solely for the convenience of, and reference by, 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
<Fiscal Period Ending December 2024>

(Reference)
Assumptions underlying the forecast of financial results and DPU for the fiscal periods ending December 2023, June 2024 and December 2024 are provided in Appendix 1. This English language notice is a translation of the Japanese-language notice released on December 19, 2023 and was prepared solely for the convenience of, and reference by, 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. Reasons for the revision and disclosure of forecast of financial results and distribution The operating status of each property up to December 2023 has been generally clarified, and DPU for the fiscal period ending December 2023 is expected to increase by more than 5% (10.5%) from the previous forecast announced in "Financial Summary   for the June 2023 Fiscal Period (from January 1, 2023 to June 30, 2023)" dated August 24, 2023.  Therefore, we have decided to announce the revision of forecast of financial results and DPU for the fiscal period ending December 2023. Moreover, INV has decided to announce the revised forecast of financial results and DPU for the fiscal period ending June 2024 and new forecast of financial results and DPU for the fiscal period ending December 2024, based on the information currently available to INV and certain assumptions that are deemed reasonable by INV.    An overview and outlook by segment are as follows:
3. Overview by segment
(1) Domestic hotels Hotels in Japan continue to recover from the COVID-19 pandemic.  Domestic demand has remained strong, with the recent number of total Japanese overnight stays remaining roughly at the same level as in 2019, prior to the COVID-19 pandemic.    Even with the gradual end of the "National Travel Discount Campaign" program, the government's travel subsidy program, there has been no decline in demand due to a reaction from the elimination of the program. Inbound demand is also strong. With the help of the weak yen, the number of total foreign overnight stays continues to exceed that of 2019, while a full-fledged recovery of Chinese tourists is yet to be seen. Under such environment, domestic hotels owned by INV continue to perform well, with ADR and RevPAR above the 2019 levels, while occupancy rates are slightly below the 2019 levels.  In addition, while the hotel sector is not immune to the rising costs, including but not limited to labor costs, the increase in room revenues through revenue management generally tends to overcome the rising costs in the domestic hotels owned by INV.    GOP is above the level of the same period in 2019, indicating a strong resilience to inflation. For our 2024 forecast, we have conservatively factored in a marginal rebound in domestic demand following the end of the "National Travel Discount Campaign" program, but we do not expect the current trend to change significantly. The KPIs of the domestic hotel portfolio are as shown below. 4
Recovery Trend of KPIs from Jan 2023 to Nov 2023 : 75 Hotels in Japan
<Forecast of KPIs of the 81 domestic hotel portfolio 7 by fiscal period>
(Note 1) Based on 75 hotel properties held at the beginning of the December 2023 Fiscal Period; of the 84 domestic hotel properties (including Sheraton Grande Tokyo Bay Hotel, the underlying asset of preferred equity interest held by INV) held as of today, nine hotels with fixed-rent lease agreements are excluded. Such nine hotels with fixed rent are Super Hotel Shinbashi/Karasumoriguchi, Comfort Hotel Toyama, Super Hotel Tokyo-JR Tachikawa Kitaguchi, Super Hotel JR Ueno-iriyaguchi, Comfort Hotel Kurosaki, Comfort Hotel Maebashi, Comfort Hotel Tsubamesanjo, Comfort Hotel Kitami, and Takamatsu Tokyu This English language notice is a translation of the Japanese-language notice released on December 19, 2023 and was prepared solely for the convenience of, and reference by, 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 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.
REI Hotel Of nine hotels that are excluded, 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, and will remain excluded.    Hereinafter the same. (Note 2) "Occupancy Rate", or "OCC" for hotel portfolio is calculated using the following formula: room occupancy rate = total number of rooms occupied during the relevant month + (aggregate number of rooms during the relevant month x number of business days during the relevant months).  Hereinafter the same. (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.  Hereinafter the same. (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 figure as that of a product of ADR and occupancy rate. (Note 5) "GOP" means the gross operating profit, and is the amount remaining after deducting costs of hotel operations (the personnel, utility and advertising expenses and other expenses) and the management services fee to operators (if any) from the hotel's revenues.   In addition, GOP for the Sheraton Grande Tokyo Bay Hotel has been multiplied by 49%, or INV's ownership ratio of the preferred equity interest.    Hereinafter the same. (Note 6) "NOI" is calculated using the following formula: NOI=  Rental Revenues – Property Related Expenses + Depreciation Expenses + Dividends on the preferred equity interest (TMK dividend) + (Management Contract Revenue – Management Contract Expense).    Hereinafter the same. (Note 7) Based on 81 hotel properties held as of today; in addition to the 75 domestic hotel properties stated in note 1 above, six domestic hotels acquired in August 2023 are added.  Hereinafter the same. (Note 8) Percentages are rounded to one decimal place.    Hereinafter the same.    ADR and RevPAR are rounded to the nearest yen and GOP is rounded down to the nearest million yen. (Note 9) The figures for November 2023 onwards show preliminarily estimated figures as of today, and are subject to change.
(2) Cayman Hotels
For the Cayman Hotels, demand continues to be on a recovery trend.   Visitors are more willing to pay a premium for their long-delayed vacations, and while occupancy rates are below the 2019 levels, ADR and RevPAR have exceeded the 2019 levels from January to October 2023.   In the Cayman Islands, labor and other costs are also increasing.  However, cumulative GOP for January to October 2023 is above the same period in 2019 due to higher sales growth. The KPIs of the two Cayman Hotels are as shown below. This English language notice is a translation of the Japanese-language notice released on December 19, 2023 and was prepared solely for the convenience of, and reference by, 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 Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and translation. the Japanese original, the latter shall prevail in all respects.
(Note 10) The figures for November 2023 onwards show preliminarily estimated figures as of today, and are subject to change. (Note 11) ADR and RevPAR are based on USD.
(3) Residences
The residential sector saw a temporary decline in occupancy rates immediately after the outbreak of the COVID-19 pandemic in 2020, but has remained stable since then, and stable earnings are expected going forward.   Due to the recent trend of renewed population inflow into the city center, occupancy rates have remained stable, and unit rents have also been increasing.
This English language notice is a translation of the Japanese-language notice released on December 19, 2023 and was prepared solely for the convenience of, and reference by, 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. 7 NOI (JPY million)¹5 | 1,126
2,251 (Note 12) Based on 41 properties held by INV as of today.    The figures for November 2023 onwards show preliminarily estimated figures as of today, and are subject to change. (Note 13) 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. (Note 14) 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 15) NOI is rounded down to the nearest unit.   NOI excludes one-off insurance-related revenues and expenses; hereinafter the same.
4. Outlook
The impact of the COVID-19 pandemic has largely disappeared, and as of today, there has been no reduction in fixed rents at any of the hotels owned by INV.    The rent income (total of 79 properties) for the fiscal year ending December 31, 2023 from MyStays Hotel Management Co., Ltd. (“MHM”), INV’s main tenant, and its affiliates (collectively with MHM, the “MHM Group”) is expected to be JPY 6,956 million (48.9%) in fixed rent and JPY 7,263 million (51.1%) in variable rent, with the ratio of variable rent exceeding that of fixed rent. Regarding dividend income related to preferred equity interest in the TMK which holds the Sheraton Grande Tokyo Bay Hotel as an underlying asset, the dividend income is expected to be zero for the fiscal period ending December 2023, as the TMK has been suspending the dividend payment due to the cumulative losses arising from decline in earnings of the underlying asset caused by the COVID-19 pandemic.  However, as the recovery in the performance of the underlying asset has continued for a certain period of time and the TMK's cumulative losses have been recently eliminated, dividends from the TMK are expected to accrue from the fiscal year ending June 30, 2024, but such dividends are expected to be JPY 1,231 million, which is significantly higher than the actual amount before the COVID-19 pandemic, as it is a dividend for the 12-month calculation period from April 2023 to March 2024 (Note 16) and includes a one-off special factor.   On the other hand, dividend income for the fiscal year ending December 31, 2024 is expected to be JPY 679 million, as the dividend is based on the TMK's six-month accounting period from April 2024 to September 2024. (Note 17) (Note 16) Kingdom Special Purpose Company (the "TMK"), which is the issuer of preferred equity interest and the owner of Sheraton Grande Tokyo Bay Hotel, or the underlying asset, has been in a situation where it cannot pay dividends even if it settles the accounts as it has a cumulative loss due to the decline in profits of the underlying asset caused by the spread of COVID-19. Under such circumstances, the TMK has amended its Articles of Incorporation to temporarily extend its six-month accounting period to a 12-month accounting period in order to curb the costs of settlement of accounts.    This measure is temporary, and the TMK plans to restore to the original 6-month settlement for the six months ending September 2024, as the cumulative loss is resolved and the TMK is expected to be able to resume payment of dividends. (Note 17) Dividends received for the fiscal period ended December 2019 were JPY 673 million (TMK's calculation period: April 2019 to September 2019) and for the period ended June 2020 were JPY 634 million (TMK's calculation period: October 2019 to March 2020), which correspond to actual values before the COVID-19 pandemic. We are planning to implement a renovation work at Sunshine Suites Resort beginning in the autumn of 2024, and we expect a decline in revenue in the fiscal period ending December 2024, due to This English language notice is a translation of the Japanese-language notice released on December 19, 2023 and was prepared solely for the convenience of and reference of i What Inglan anguage notion of the content of the cont 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 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.
partial sales stoppage during the renovation. Moreover, there are no special items to be noted for residential and retail properties. As a result, the DPU for the fiscal period ending December 31, 2023 is expected to be JPY 1,593 (forecast), and together with the actual DPU for the fiscal period ended June 30, 2023 (JPY 1,464), the DPU for the full year of 2023 is expected to be JPY 3,057.   In addition, the DPU for 2024 is expected to be JPY 1,767 (forecast) for the fiscal period ending June 2024, and JPY 1,739 (forecast) for the fiscal period ending December 2024, and JPY 3,506 (forecast) for the full year of 2024, exceeding the actual amount (JPY 3,381) for the full year of 2019 before the COVID-19 pandemic. Website of INV: https://www.invincible-inv.co.jp/en/
(Appendix 1) <Assumptions Underlying the Forecast of Financial Results and Distribution for the Fiscal Periods ending December 2023, June 2024 and December 2024>
This English language notice is a translation of the Japanese-language notice released on December 19, 2023 and was prepared solely for the convenience of, and reference by, 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 Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and translation. the Japanese original, the latter shall prevail in all respects.
This English language notice is a translation of the Japanese-language notice released on December 19, 2023 and was prepared solely for the convenience of, and reference by, 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 Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and translation. the Japanese original, the latter shall prevail in all respects. 11
This English language notice is a translation of the Japanese-language notice released on December 19, 2023 and was prepared solely for the convenience of, and reference by, 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. 12
This English language notice is a translation of the Japanese-language notice released on December 19, 2023 and was prepared solely for the convenience of, and reference by, 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 Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and translation. the Japanese original, the latter shall prevail in all respects.
This English language notice is a translation of the Japanese-language notice released on December 19, 2023 and was prepared solely for the convenience of, and reference by, 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 Readers are advised to read the original Japanese-language notice. In the event of any discrepancy between this translation and translation. the Japanese original, the latter shall prevail in all respects.