Invincible Investment : Financial Results (140120260226569520)

Invincible Investment Corporation

December 2025 Fiscal Period Results

TSE Code : 8963

(July 1, 2025 to December 31, 2025)

February 26, 2026

Table of Contents

1. Executive Summary 3 - 4

2. Summary of December 2025 FP Results, June 2026 FP Forecasts, and December 2026 FP Forecasts

   Ⅱ-1. Financial Highlights for December 2025 FP 6

   Ⅱ-2. Operating Revenue Composition 7

   Ⅱ-3. Summary of June 2026 FP Forecast 8

   Ⅱ-4. Summary of December 2026 FP Forecast 9

   Ⅱ-5. Revenue and GOP of ICN 91 Properties Past Performance and Forecasts 10

   Ⅱ-7.	ICN 91 Properties KPIs Past Performance and Forecasts	12
   Ⅱ-8.	ICN 101 Properties KPIs Past Performance and Forecasts	13
   Ⅱ-9.	Impact of Deterioration of Japan-China Relations	14
   Ⅱ-10.	Cayman Hotel KPIs Past Performance and Forecasts	15
   Ⅱ-11.	Capital Expenditures and Depreciation	16

   Ⅱ-6. Revenue and GOP of ICN 101 Properties Past Performance and Forecasts 11

   1. Status of Residential Operations

      Ⅳ-1. Performance of Residential Properties 31

      Ⅳ-2. Changes of Residential Rents 32

   2. Financial Condition 34

   3. Sustainability Initiatives 36 - 37

      Appendix (1)

      1. Benefit Program for Invincible Unitholders 39

      2. Inbound Market: Inbound Visitors to Japan by Country 40

      3. Track Record of External Growth 41

      4. Summary of Property Acquisition in August 2025 42

      5. Asset Allocation (as of end of December 2025) 43

         Ⅱ-12.

         Case Study: Strategic CAPEX at Hotel MyStays Premier Hamamatsucho and

         Hotel MyStays Fukuoka-Tenjin-Minami 17

      6. Domestic Portfolio Map 44

      7. Sponsor Pipeline

         Ⅱ-13. Case Study: Past Projects of Strategic CAPEX (not exhaustive) 18

3. Status of Hotel Operations and Market

Ⅲ-1. Overall Accommodation Market in Japan 20

Ⅲ-2. Inbound Travelers Trend 21

Ⅲ-3. Government Target for Regional Overnight Stays by Inbound Travelers 22

Ⅲ-4. Domestic Traveler Market Trends 23

Ⅲ-5. Initiatives by ICN 24

Ⅲ-6. ICN: Future Outlook and Strategy 25

Ⅲ-7. Initiatives by Sheraton Grande Tokyo Bay Hotel (SGTB) 26

Ⅲ-8. Trial Calculation: Business vs. Leisure Demand 27

Ⅲ-9. Update of the Status of the Cayman Islands 28

Ⅲ-10. New Hotel Development in Japan and Increase of Construction / Labor Costs 29

45

1. Summary of Appraisal Value and NAV per Unit 46

2. Financial Impact of Foreign Exchange Fluctuation (vs. Jun. 2026 FP Forecast) 47

3. Financial Impact of Foreign Exchange Fluctuation (vs. Dec. 2026 FP Forecast) 48

4. Base Rate: Result and INV Assumption 49

Appendix (2) – Financial and Operational Data

1. Key Operational Data for Variable Rent Hotels 51 – 53

2. Financial Metrics 54

3. Income Statement 55

4. Balance Sheet 56 – 57

5. Cash Flow Statement and Dividend Distribution 58

6. Property Income 59 – 63

7. Appraisal Value 64 – 68

8. Portfolio Properties 69 – 74

9. Borrowings and Investment Corporation Bonds 75 – 82

10. Overview of Unitholders 83

11. Unit Price Information 84

1

1. Executive Summary

   Results of December 2025 Fiscal Period (FP)
   Summary of Properties Acquired in August 2025
   Domestic Portfolio	period in 2024. RevPAR increased by 8.2% and GOP increased by 8.9% compared to the same period in 2024 increase rents and occupancy rates

   • Sales and profits increased significantly this period due to robust hotel performance and revenues from hotels acquired in August 2025. Operating revenue increased by 13.9% compared to the previous fiscal period (“previous period”), or by 11.9% compared to the December 2024 FP, to JPY 28.5 billion

   • Net income increased by 16.2% compared to the previous period, or by 10.2% compared to the December 2024 FP, to JPY 16.6 billion

   • DPU increased by 15.4% compared to the previous period, or by 10.3% compared to the December 2024 FP, to JPY 2,186. This DPU of JPY 2,186 is 2.8% higher than the forecast (JPY 2,127) announced on August 25, 2025, or 2.0% higher than the forecast (JPY 2,143) announced on December 17, 2025. Annual DPU reached JPY 4,081, the highest since February 2010 when the corporate name changed to Invincible Investment Corporation (“INV”)

   • The appraisal value of the 145 properties held at the beginning of this period was JPY 796.3 billion, an increase of JPY 20.7 billion (or a 2.7% increase) from the end of the June 2025 appraisal

   • Acquired 10 domestic hotels for a total acquisition price of JPY 34.2 billion, representing an average appraisal NOI yield of 7.0% (post-depreciation NOI yield of 3.9%)

   • Expanded investments centered on resort-type hotels located in regional areas, with unique features and future growth potential, further growing the largest hotel portfolio among J-REITs to JPY 646.5 billion

   • This transaction was funded without issuing equity, utilizing cash on hand and borrowings, to steadily increase EPU through external growth

   • Regarding the potential sponsor pipeline, the sponsor owns approximately 60 hotels (approximately 7,000 rooms) primarily operated by Iconia Hospitality K.K. (“ICN”)

   • All KPIs for the 91 domestic hotels managed by the major tenant, ICN or its subsidiary (“91 ICN properties1”), exceeded those of the same

   • Food & Beverage revenue2, including revenue from banquets, meetings, and restaurants, increased by 6.4% compared to the December 2024 FP for the 91 ICN properties. ICN’s ongoing strategy to maximize GOPPAR (GOP Per Available Room) continues to deliver results. Despite various rising costs, the GOP margin for the 91 ICN properties improved by 0.4 points to 39.4% from the December 2024 FP

   • NOI for the 41 residential properties for this period was JPY 1,160 million, up 1.7% from the same period in 2024, due to successful efforts to

   Ⅰ. Executive Summary (1)

   (Note 1) Refers to 91 hotels operated by ICN or its subsidiary in INV’s portfolio as of the ending of the June 2025 FP 3

   (Note 2) Food and beverage revenue refers to revenue from banquets, meetings, weddings, and restaurants. This definition is consistently used throughout this document

   Cayman Hotel Portfolio	Islands, which were reduced due to the COVID-19 pandemic, recovers, leading to improved performance of the two Cayman hotels
   Financial Condition
   Forecasts for June 2026 FP and December 2026 FP

   • The two Cayman hotels’ RevPAR for this period increased by 6.3% to USD 245 compared to the same period in 2024 due to the robust performance of Westin Grand Cayman Seven Mile Beach Resort & Spa, despite the impact of the suspension of sales at The Sunshine Hotel & Suites due to its major renovation

   • USD based Management Contract Revenue this period increased by 16.7% compared to the same period in 2024

   • For the June 2026 FP and the December 2026 FP, management contract revenue is expected to increase YoY in USD terms due to an increase in revenue reflecting the reopening of The Sunshine Hotel & Suites. However, management contract revenue is expected to decrease YoY in JPY terms due to JPY appreciation. The impact of openings of competitor hotels is expected to be alleviated as the number of flights to the Cayman

   • To prepare for the risk of rising interest rates, approximately 60% of the new borrowing associated with the August 27, 2025 property acquisition was executed at fixed interest rates, maintaining the fixed interest rate ratio at approximately 60%, consistent with previous levels

   • Approximately 20% of the total borrowings executed in the December 2025 FP were secured through green loans, promoting sustainability initiatives

   • INV will continue to diversify the loan maturity dates of interest-bearing debt, maintain appropriate average borrowing periods, average remaining term of interest-bearing debt, and fixed interest rate ratio, in order to mitigate interest rate risk

   • DPU is expected to be JPY 1,895 for the June 2026 FP and JPY 2,186 for the December 2026 FP. The financial forecasts through the period ending December 2026 have not factored in the potential impact on INV’s performance from inbound demand from Chinese tourists, stemming from the deterioration of Japan-China relations following the November 2025 parliamentary response, as the impact is unclear. However, should INV’s profit level fall below projections due to a decrease in Chinese tourists, we plan to maintain and stabilize the DPU by distributing retained earnings. Since November 2025, although room revenue from inbound travelers from China and Hong Kong has decreased YoY, growth in the larger domestic visitor segment and other overseas visitor segments have offset and mitigated this impact

   • The forecast factors in stable domestic demand. However, accommodation demand resulting from the World Expo 2025 is expected to decline. As for inbound demand, the number of inbound travelers is expected to reach approximately 47 million in 2026. (This assumption does not factor in the impact from the deterioration of Japan-China relations)

   • The portfolio of 41 residential properties and one commercial property is expected to maintain stable returns

   Ⅰ. Executive Summary (2)

   4

2. Summary of December 2025 FP Results, June 2026 FP Forecasts, and December 2026 FP Forecasts

• Operating revenue increased by 13.9% to JPY 28,591 million from the previous period due to the robust performance of the existing domestic hotels and property acquisition in August 2025, although management contract revenue decreased mainly due to seasonal factors

• Net income increased by 16.2% to JPY 16,688 million from the previous period and DPU increased by 15.4% to JPY 2,186. This DPU of JPY 2,186 is 2.8% higher compared to the forecast (JPY 2,127) announced on August 25, 2025

Ⅱ-1. Financial Highlights for December 2025 FP

			Jun. 2025 FP	Dec. 2025 FP	Variance
					Amount	(%)
Operating revenue			25,107	28,591	3,483	13.9%
	Real estate rental revenues		19,841	26,062	6,220	31.3%
		Hotel Rents (Variable rent)	10,911	14,928	4,017	36.8%
		Hotel Rents (Fixed rent)	6,594	8,774	2,179	33.1%
		Residential Rents	1,419	1,430	10	0.8%
	Management contract revenue		4,172	1,870	-2,301	-55.2%
	TMK Dividend amount		1,093	658	-434	-39.8%
	Gain on sale of properties		-	-	-	-
Operating expenses			8,172	9,281	1,109	13.6%
	Real estate rental expenses		6,575	7,549	974	14.8%
		Taxes and other public charges	766	1,093	327	42.7%
		Depreciation expenses	4,697	5,146	449	9.6%
	Management contract expenses		788	913	125	15.9%
		Depreciation expenses	475	525	50	10.6%
NOI			22,916	25,800	2,883	12.6%
NOI after depreciation			17,744	20,128	2,384	13.4%
Operating income			16,935	19,309	2,374	14.0%
Non-operating income			103	157	54	52.7%
Non-operating expenses			2,671	2,777	106	4.0%
Ordinary income			14,366	16,689	2,322	16.2%
Net income			14,366	16,688	2,322	16.2%
Distribution per Unit (JPY)			1,895	2,186	291	15.4%
Operating Days			181	184	-	-

Major Causes for Variance （JPY million）

Non-operating expenses

• Increase in loan-related costs: +57

• Increase in interest expenses: +196

• Increase in interest expenses on investment corporation bonds: +2

• Decrease in foreign exchange losses: -218

• Occurrence of derivative losses: +67

Non-operating income

• Occurrence of foreign exchange gain: +105

• Increase in interest income: +20

• Decrease in derivative income: -67

Operating expenses

• Increase in expenses for hotels acquired in August 2025: +359

  • Increase in depreciation expenses: +349

• Increase in expenses for existing properties held at the end of June 2025: +612

  • Increase in depreciation expenses: +99, Increase in taxes and other public

    charges: +327, Increase in repair costs: +111

• Increase in management contract expenses: +125

Operating revenue

• Increase/decrease in revenue from properties held at the end of June 2025: +4,799

  • Hotels: +4,810 / Residential: -11

• Increase in revenue from hotels acquired in August 2025: +1,420

• Decrease in management contract revenue: -2,301

  • 55.2% decrease in JPY terms and 55.0% decrease in USD terms

    （FX rate of 2025 2H: USD 1= JPY 150.2, 0.3% higher than 2025 1H）

• Decrease in TMK Dividend amount: -434

6

Distribution per Unit (JPY)

• Increase from the previous period: +291

6

• For the December 2025 FP, operating revenue increased by 11.9% compared to the December 2024 FP due to the robust performance of existing domestic

hotels and an increase in rental income from new properties acquired in August 2025

Ⅱ-2. Operating Revenue Composition

Operating Revenue Composition1

Management Contract Revenue (Cayman hotels)

TMK Dividend Amount (SGTB)

Variable Rent Hotel (variable)

Variable Rent Hotel (fixed)

Fixed Rent Hotel

Residential

Commercial properties

（JPY million）		2019				2023				2024				2025
		June FP		December FP		June FP		December FP		June FP		December FP		June FP		December FP
Management Contract Revenue2 (Cayman hotels)		3,240	20.0%	1,397	8.4%	3,914	24.6%	2,123	11.3%	4,774	22.6%	1,657	6.5%	4,172	16.6%	1,870	6.5%
TMK Dividend Amount (SGTB)		827	5.1%	673	4.1%	-	-%	-	-%	1,428	6.8%	692	2.7%	1,093	4.4%	658	2.3%
Domestic Hotel	Variable Rent Hotel (variable)	4,307	26.6%	5,332	32.1%	4,807	30.2%	7,576	40.3%	7,398	35.0%	13,084	51.2%	11,541	46.0%	15,592	54.5%
	Variable Rent Hotel (fixed)	3,834	23.6%	6,144	37.0%	5,194	32.6%	7,198	38.3%	5,582	26.4%	8,169	32.0%	6,323	25.2%	8,503	29.7%
	Fixed Rent Hotel	388	2.4%	386	2.3%	341	2.1%	281	1.5%	281	1.3%	281	1.1%	281	1.1%	281	1.0%
Residential		3,316	20.4%	2,374	14.3%	1,516	9.5%	1,497	8.0%	1,529	7.2%	1,528	6.0%	1,554	6.2%	1,543	5.4%
Commercial properties		306	1.9%	307	1.9%	141	0.9%	141	0.8%	141	0.7%	141	0.6%	141	0.6%	141	0.5%
Total		16,221	100.0%	16,616	100.0%	15,914	100.0%	18,819	100.0%	21,136	100.0%	25,555	100.0%	25,107	100.0%	28,591	100.0%

7

(Note 1) Based on the properties owned by INV during each fiscal period respectively. The gain on sale is excluded

(Note 2) The figure for the June 2019 FP includes the amount of TK dividends INV received for the fiscal period before INV owned Cayman hotels directly

• For the June 2026 FP, operating revenue is expected to increase by 5.9% YoY to JPY 26,581 million, and operating income is expected to increase by 1.6% YoY to JPY 17,212 million, due to an increase in hotel rents from the hotels acquired in August 2025 and the growth in performance of existing domestic hotels, although the TMK Dividend amount (Sheraton) is expected to decrease due to an increase in interest expenses related to the TMK

• Net income is expected to decrease by 0.1% YoY to JPY 14,354 million due to an increase in non-operating expenses such as interest expense. DPU is planned to be JPY 1,895 using retained earnings to maintain the mid-term stability in the amount of DPU

• The financial forecasts through the period ending December 2026 have not factored in the potential impact on INV’s performance from inbound demand from Chinese tourists, stemming from the deterioration of Japan-China relations following the November 2025 parliamentary response, as the impact is unclear. However, should INV’s profit level fall below projections due to a decrease in Chinese tourists, we plan to maintain and stabilize the DPU by distributing retained earnings

Ⅱ-3. Summary of June 2026 FP Forecast

			Jun. 2025 FP	Jun. 2026 FP	Variance
					Amount	(%)
Operating revenue			25,107	26,581	1,473	5.9%
	Real estate rental revenues		19,841	21,477	1,635	8.2%
		Hotel Rents (Variable rent)	10,911	12,245	1,333	12.2%
		Hotel Rents (Fixed rent)	6,594	6,892	297	4.5%
		Residential Rents	1,419	1,440	20	1.5%
	Management contract revenue		4,172	4,157	-15	-0.4%
	TMK Dividend amount		1,093	946	-146	-13.4%
	Gain on sale of properties		-	-	-	-
Operating expenses			8,172	9,369	1,196	14.6%
	Real estate rental expenses		6,575	7,632	1,057	16.1%
		Taxes and other public charges	766	850	84	11.1%
		Depreciation expenses	4,697	5,357	660	14.1%
	Management contract expenses		788	807	19	2.5%
		Depreciation expenses	475	536	60	12.8%
NOI			22,916	24,035	1,118	4.9%
NOI after depreciation			17,744	18,141	396	2.2%
Operating income			16,935	17,212	276	1.6%
Non-operating income			103	40	-63	-61.2%
Non-operating expenses			2,671	2,897	225	8.4%
Ordinary income			14,366	14,355	-11	-0.1%
Net income			14,366	14,354	-11	-0.1%
Distribution per Unit (JPY)			1,895	1,895	0	0.0%
Operating Days			181	181	-	-

Major Causes for Variance （JPY million）

Non-operating income

• Decrease in non-operating income: -63

- Decrease in derivative income: -67

Operating expenses/Non-operating expenses

• Increase in real estate rental expenses: +1,057

  • Increase from hotels acquired in August 2025: +597

  • Increase in depreciation expenses from properties held at the end of June 2025: +138

  • Increase in fixed property tax and city planning tax from hotels acquired in July 2024:

    +70

  • Increase in repair costs: +115

• Increase in management contract expenses: +19

  • Increase in depreciation expenses: +60

  • Decrease in insurance premiums, etc: -21

  • Decrease in management contract loss1: -20

• Increase in non-operating expenses: +225

  • Increase in interest expenses: +428

  • Increase in interest expenses on investment corporation bonds: +4

  • Increase in loan-related costs: +9

  • Decrease in foreign exchange losses: -218

Operating revenue

• Increase in rents from hotels acquired in August 2025 (variable rent and fixed

  rent): +1,099

• Increase in rents from hotels held at the end of June 2025 (variable rent and fixed rent in total): +532

• Increase in residential rents: +20

• Decrease in management contract revenue: -15

  - 5.8% increase in USD terms (Forecasted FX rate of 2026 1H: USD 1= JPY 142.0 compared to 150.7 for 2025 1H)

• Decrease in TMK Dividend amount: -146

8

(Note 1) In the June 2025 FP, JPY 20 million of The Sunshine Hotel & Suites’ GOL is recorded as management contract loss. In the June 2026 FP, management contract loss is not forecasted to occur as The Sunshine Hotel & Suites is expected to generate GOP

• For the December 2026 FP, operating revenue is expected to increase by 1.7% YoY to JPY 29,077 million, and operating income is expected to increase by 0.9% YoY to JPY 19,476 million, due to growth driven by increased hotel rent from improved performance at existing domestic hotels and full-year contributions from properties newly acquired in August 2025, although the TMK Dividend amount (Sheraton) is expected to decrease due to an increase in interest expenses related to the TMK

• Net income is expected to decrease by 1.9% YoY to JPY 16,369 million due to an increase in non-operating expenses such as interest expense. DPU is planned to be JPY 2,186 using retained earnings to maintain the mid-term stability in the amount of DPU

• As previously mentioned, this forecast does not factor in the impact of the deterioration of Japan-China relations. However, should a decline in Chinese travelers cause INV's profit level to fall below forecasts, we plan to maintain and stabilize the DPU by distributing retained earnings

Ⅱ-4. Summary of December 2026 FP Forecast

			Dec. 2025 FP	Dec. 2026 FP	Variance
					Amount	(%)
Operating revenue			28,591	29,077	485	1.7%
	Real estate rental revenues		26,062	26,733	671	2.6%
		Hotel Rents (Variable rent)	14,928	15,484	555	3.7%
		Hotel Rents (Fixed rent)	8,774	8,952	178	2.0%
		Residential Rents	1,430	1,445	15	1.1%
	Management contract revenue		1,870	1,821	-49	-2.7%
	TMK Dividend amount		658	522	-135	-20.6%
	Gain on sale of properties		-	-	-	-
Operating expenses			9,281	9,600	319	3.4%
	Real estate rental expenses		7,549	7,866	317	4.2%
		Taxes and other public charges	1,093	1,137	44	4.1%
		Depreciation expenses	5,146	5,412	266	5.2%
	Management contract expenses		913	806	-106	-11.7%
		Depreciation expenses	525	529	3	0.7%
NOI			25,800	26,345	545	2.1%
NOI after depreciation			20,128	20,403	275	1.4%
Operating income			19,309	19,476	166	0.9%
Non-operating income			157	40	-117	-74.6%
Non-operating expenses			2,777	3,146	368	13.3%
Ordinary income			16,689	16,370	-319	-1.9%
Net income			16,688	16,369	-319	-1.9%
Distribution per Unit (JPY)			2,186	2,186	-	-
Operating Days			184	184	-	-

Major Causes for Variance （JPY million）

Operating revenue

• Increase in rents from hotels held at the end of June 2025 (variable rent and fixed rent in total): +516

• Increase in rents from full-period contribution from hotels acquired in August

  2025 (variable rent and fixed rent): +217

• Increase in residential rents: +15

• Decrease in management contract revenue: -49

  - 4.1% increase in USD terms (Forecasted FX rate of 2026 2H: USD 1= JPY 140.5, compared to 150.2 for 2025 2H)

• Decrease in TMK Dividend amount: -135

Operating expenses/Non-operating expenses

• Increase in real estate rental expenses: +317

  • Increase from full-period contribution from hotels acquired in August 2025: +264

  • Increase in depreciation expenses from properties held at the end of June 2025: +93

• Decrease in management contract expenses: -106

  • Decrease in management contract loss1: -133

• Increase in non-operating expenses: +368

  • Increase in interest expenses: +505

  • Increase in interest expenses on investment corporation bonds: +30

  • Decrease in loan-related costs: -100

  • Decrease in derivative losses: -67

Non-operating income

• Decrease in non-operating income: -117

- Decrease in foreign exchange gain: -105

(Note 1) In the December 2025 FP, JPY 133 million of The Sunshine Hotel & Suites’ GOL is recorded as management contract loss. In the December 2026 FP,

management contract loss is not forecasted to occur as The Sunshine Hotel & Suites is expected to generate GOP 9

• For the December 2025 FP, all revenue categories (Room revenue, Food & Beverage revenue, and Other revenue) exceeded the same period in 2024. The GOP

  margin increased by 0.4 points despite rising costs through continued strategies to maximize GOPPAR (GOP Per Available Room)

• For the June 2026 FP and the December 2026 FP, although the GOP margin is expected to decrease slightly YoY due to the absence of accommodation demand from the World Expo 2025, GOP itself is expected to be remain roughly flat (The impact of the deterioration of Japan-China relations on accommodation demand is partly reflected on KPIs for the June 2026 FP and is not for the December 2026 FP2)

Ⅱ-5. Revenue and GOP of ICN 91 Properties

Past Performance and Forecasts for June 2026 FP and December 2026 FP1

June FP December FP

(JPY billion) (JPY billion)

Other revenue3Food & Beverage

revenue

(inc. banquet and

meeting)

+4.7%

+6.1%

+6.1%

+5.7%

Other revenue Food & Beverage

revenue

(inc. banquet and

meeting)

+7.0%

+6.4%

+2.6%

+5.4%

+14.7%

+2.1%

+8.3%

+2.6%

Room revenue

GOP

+15.3%

+1.1%

Room revenue

GOP

+8.9%

+1.6%

GOP Margin

2024 2025 2026 (forecast)

-0.7pt

+1.1pt

34.9% 36.0% 35.3%

GOP Margin

2024 2025 2026 (forecast)

-0.6pt

+0.4pt

38.9% 39.4% 38.7%

10

(Note 1) Simulated KPI based on ICN 91 properties assuming all properties were owned since the beginning of 2024. The performance for the pre-acquisition period, which is based on actual results provided by sellers with certain adjustments assuming INV owned them, are subject to change caused by the adjustments based on differences in accounting

(Note 2) The status of each month’s KPIs are as following: January is actual figure; February, March, and April are forecasted figures reflecting reservations as of the date of this material; From May to December are the forecasted figures as of December 17, 2025 (Note 3) Other revenue includes items such as revenue from Solaniwa Onsen, revenue from shops, rent from tenants, and commission on vending machine sales

• From the “Performance Update for January 2026” announced on February 26, 2026, the properties subject to disclosure for the performance of domestic hotels has changed from “ICN 91 properties” to “ICN 101 properties”. In response to this change, INV announces the KPIs for ICN 101 properties, including their performance for 2024 and 2025, and forecast for 2026, as shown below, in the same manner as the previous page (The impact of the deterioration of Japan-China relations on accommodation demand is partly reflected on KPIs for the June 2026 FP and is not for the December 2026 FP3)

Ⅱ-6. Revenue and GOP of ICN 101 Properties1

Past Performance and Forecasts for June 2026 FP and December 2026 FP2

June FP December FP

(JPY billion) (JPY billion)

Other revenue4Food & Beverage

revenue

(inc. banquet and

meeting)

+7.0%

+10.5%

+6.8%

+5.8%

Other revenue Food & Beverage

revenue

(inc. banquet and

meeting)

+7.8%

+7.0%

+3.9%

+6.1%

+15.8%

+2.3%

+8.5%

+2.7%

Room revenue

GOP

+17.9%

+1.7%

Room revenue

GOP

+9.7%

+1.6%

2024 2025 2026 (forecast)

-0.6pt

+1.2pt

GOP Margin 33.3% 34.5% 33.9%

GOP Margin

2024 2025 2026 (forecast)

-0.8pt

+0.5pt

37.8% 38.4% 37.6%

11

(Note 1) Refers to 101 hotels operated by ICN or its subsidiary in INV portfolio as of the ending of the December 2025 FP

(Note 2) Simulated KPI based on ICN 101 properties assuming all properties were owned since the beginning of 2024. The performance for the pre-acquisition period, which is based on actual results provided by sellers with certain adjustments assuming INV owned them, are subject to change caused by the adjustments based on differences in accounting

(Note 3) The status of each month’s KPIs are as following: January is actual figures; February, March, and April are forecasted figures reflecting reservations as of the date of this material; From May to December are the forecasted figure as of December 17, 2025 (Note 4) Other revenue includes items such as revenue from Solaniwa Onsen, revenue from shops, rent from tenants, and commission on vending machine sales

• For the December 2025 FP, inbound demand from certain counties was affected by a rumor that a natural disaster would occur in July in Japan and by the deterioration of Japan-China relations stemming from parliamentary responses in mid-November. However, all KPIs exceeded those of the same period in 2024 due to demand driven by the World Expo 2025

• For 2026, the domestic hotel portfolio is expected to continue to achieve moderate growth despite a certain degree of post-event decline following the conclusion of the World Expo 2025 (The impact of the deterioration of Japan-China relations on accommodation demand is partly reflected on KPIs for the June 2026 FP and is not for the December 2026 FP2)

ADR

June FP December FP Full Year

Ⅱ-7. ICN 91 Properties KPIs1

Past Performance and Forecasts for December 2025 FP and June 2026 FP

+7.0%

+8.2%

+1.6%

+15.2%

RevPAR

June FP December FP Full Year

(JPY)

+1.4%

+1.5%

(JPY)

+2.0%

+10.0%

+8.2%

+2.8%

+11.3%

+2.4%

Occ

June FP December FP Full Year June FP December FP Full Year

+1.4%

+11.6%

+1.0pt

+1.0pt

+2.4pt

+0.8pt GOP

(%)

+0.6pt

(JPY million)

+3.8pt

+1.1%

+8.9%

+1.6%

+15.3%

12

(Note 1) Simulated KPI based on ICN 91 properties assuming all properties were owned since the beginning of 2024. The performance for the pre-acquisition period, which is based on actual results provided by sellers with certain adjustments assuming INV owned them, 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.

(Note 2) The status of each month’s KPIs are as following: January is actual figure; February, March, and April are forecasted figures reflecting reservations as of the date of this material; From May to December are the forecasted figures as of December 17, 2025

• From the “Performance Update for January 2026” announced on February 26, 2026, the properties subject to disclosure for the performance of domestic hotels has changed from “ICN 91 properties” to “ICN 101 properties”. In response to this change, INV announces the KPIs for ICN 101 properties, including their performance for 2024 and 2025, and forecast for 2026, as shown below, in the same manner as the previous page (The impact of the deterioration of Japan-China relations on accommodation demand is partly reflected on KPIs for the June 2026 FP and is not for the December 2026 FP2)

Ⅱ-8. ICN 101 Properties KPIs1

Past Performance and Forecasts for December 2025 FP and June 2026 FP

June FP December FP Full Year June FP December FP Full Year

ADR (JPY)

+1.6%

+1.6%

RevPAR (JPY)

+16.2%

+8.4%

+2.9%

+11.8%

+2.6%

+2.3%

+9.9%

+8.1%

+1.6%

+7.0%

June FP December FP Full Year June FP December FP Full Year

Occ

(%)

+0.5pt

+0.8pt

GOP

+1.6%

+13.1%

(JPY million)

+4.5pt

+1.1pt

+1.1pt

+9.7%

+1.6%

+1.7%

+17.9%

+2.8pt

13

(Note 1) Simulated KPI based on ICN 101 properties assuming all properties were owned since the beginning of 2024. The performance for the pre-acquisition period, which is based on actual results provided by sellers with certain adjustments assuming INV owned them, 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.

(Note 2) The status of each month’s KPIs are as following: January is actual figure; February, March, and April are forecasted figures reflecting reservations as of the date of this material; From May to December are the forecasted figures as of December 17, 2025

• The share of room revenue generated from guests from China and Hong Kong at ICN 101 properties was limited to less than 10% of total room revenue before the deterioration of Japan-China relations stemming from parliamentary responses in November 2025. Domestic travelers and inbound travelers excluding China and Hong Kong accounted for most of the room revenue of ICN 101 properties

• Since November 2025, room revenue from inbound travelers from China and Hong Kong has decreased YoY. However, growth in the larger domestic visitor segment and inbound travelers excluding China and Hong Kong has offset and mitigated this impact

Ⅱ-9. Impact of Deterioration of Japan-China Relations

ICN 101 Properties Room Revenue Composition

Year-on-Year Comparison: ICN 101 Properties Room Revenue (by guest nationality)

（by guest nationality, from Nov. ‘24 to Oct. ‘25）

(JPY billion)

+9.7%

+7.0%

-0.1%

+8.4%

+9.3%

Japan

+2.9%

YoY decrease is

partly due to the shift in the timing of the Lunar New Year holidays

+19.9%

+19.0%

Other

Countries

+24.6%

Holiday period

’25: Jan. 28 – Feb. 4

’26: Feb. 15 – Feb. 23

China

Hong Kong

-13.2%

-35.6%

-56.2%

‘24 ‘25 ‘24 ‘25 ‘25 ‘26

November December January

14

• The two Cayman hotels’ RevPAR for this period increased by 6.3% compared to the same period in 2024 due to the robust performance of Westin Grand Cayman Seven Mile Beach Resort & Spa, despite the room closures related to the large-scale renovation work at The Sunshine Hotel & Suites

• For 2026, RevPAR is expected to increase due to an increase in revenue from The Sunshine Hotel & Suites reflecting the completion of the abovementioned large-scale renovation. The impact on performance due to the opening of competing hotels is expected to ease as the number of flights to the Cayman Islands, which were reduced due to the COVID-19 pandemic, recovers, leading to improved performance of the two Cayman hotels

ADR

June FP December FP Full Year

Ⅱ-10. Cayman Hotel KPIs

Past Performance and Forecasts for June 2026 FP and December 2026 FP

+19.7% -7.0%1

RevPAR

June FP December FP Full Year

-6.5% +8.0%

(USD)

+21.0%

-18.8%1

+19.3%

-12.2%1

(USD)

-2.1%

+6.7%

+6.3%

+4.5%

June FP December FP Full Year June FP December FP Full Year

Occ

(%)

-17.3pt +10.0pt

-6.4pt

+13.3pt

-11.8pt

+11.6pt

GOP

(USD

thousand)

-12.9% +3.1%

-7.5%

+5.8%

+8.3%

+12.2%

	June FP			December FP			Full Year
	2024	2025	2026	2024	2025	2026	2024	2025	2026
Weighted Average Exchange Rate (JPY)	151.2	150.7	142.0	155.2	150.2	140.5	152.2	150.5	141.5

The weighted average exchange rates applied for conversion to JPY for each FP are as follows:

(’24 and ’25 are actual, and ’26 is forecast)

-0.3%

-5.8%

-3.2%

-6.5%

-1.1%

-6.0%

15

(Note 1) In 2026, the two Cayman hotels’ ADR is expected to decline year-on-year. This is because ADR of The Sunshine Hotel & Suites, which is lower than that of Westin Grand Cayman Seven Mile Beach Resort, will reduce the weighted average ADR of the Cayman Hotels

• We are working with ICN to implement strategic CAPEX aimed at enhancing the profitability of our properties

• In 2025, INV carried out value-enhancing construction projects with attractive returns at several properties including Hotel MyStays Premier Hamamatsucho and Hotel MyStays Fukuoka-Tenjin-Minami (see next page)

• INV will continue to actively implement strategic CAPEX in 2026 to increase unitholder value

（JPY million）

6,926

7,992

7,740

7,522

7,964

9,332

2,809

10,844

1,355

4,375

11,836

1,348

4,540

①Depreciation

Ⅱ-11. Capital Expenditures and Depreciation

②Free Cash

(①-③-➃)

JPY 176 per unit Excess FFO3 (②+③)

③Strategic CAPEX1

2,262

1,877

3,741

2,770

4,848

3,350

667

5,811

3,585

928

4,108

1,323

5,703

960

6,651

82

5,647

45

5,175

92

2,696

1,790

4,732

5,114

5,946

➃Maintenance

CAPEX2

385

971

830

1,297

1,494

1,329 1,006

1,829

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

2025 2026

Budget as of Feb. 26

Asset Size4 (JPY million)

173,815

266,619

353,695

448,362

497,979

502,717

494,766

491,416

548,646

653,066

687,350

687,350

16

(Note 1) Strategic capital investment for renovation including guest rooms, banquet rooms, restaurants and others in order to improve the competitiveness / profitability of the hotels (Note 2) Capital investment which is required to maintain proper values of properties and capital investment for fixtures and furnishings that are necessary for operating hotels (Note 3) Excess FFO is defined as the amount of depreciation minus maintenance CAPEX. The same shall apply hereafter

(Note 4) Based on the acquisition price as of the end of the relevant year. After 2017, includes the amount of preferred equity interest contribution by INV to the JV TMK that holds Sheraton Grande Tokyo Bay Hotel (SGTB). The acquisition price of overseas hotels (i) is the amount of TK investment to the SPC which held the leasehold of properties for "2018" and (ii) is the book value of the hotels as of May 9, 2019 for “2019” onward, which are converted into JPY amount via the forward exchange rate of USD 1=JPY 110.45 based on the foreign exchange forward implemented in connection with the original TK investment in the Cayman SPC (contract thereof was entered into on July 26, 2018 and implemented on September 26, 2018)

• Implemented Strategic CAPEX at Hotel MyStays Premier Hamamatsucho and Hotel MyStays Fukuoka-Tenjin-Minami to strengthen competitiveness. ROI is expected to be 29.0% and 18.7%, respectively

Ⅱ-12. Case Study: Strategic CAPEX at Hotel MyStays Premier Hamamatsucho and Hotel MyStays Fukuoka-Tenjin-Minami

Hotel MyStays Premier Hamamatsucho Hotel MyStays Fukuoka-Tenjin-Minami

Back-

ground

• The property has a competitive advantage in capturing inbound demand

• While revenues had grown alongside an increasing inbound ratio, the pre-renovation inbound share had already reached a high level, limiting further revenue upside

• In addition, more than 9 years had passed since the last full-scale renovation of all guest rooms, resulting in guest ratings that lagged those of nearby competitors

  Main Work

• Change in room mix (approximately 30% increase in the total capacity)

• Renewal of guest-room interiors and FF&E (selected rooms)

• Repair of unit baths (selected rooms)

  Return

Renovation Period

• Installation of smart TVs (all guest rooms) May 2025 – September 2025

  Expected ROI: 29.0%

• CAPEX: JPY 270 million

• GOP Increase: JPY 78 million per year (+10.1%1)

• The property is a limited service hotel with a prime location in central Fukuoka, capable of accommodating a wide range of leisure and business demand from both domestic and inbound guests

• As 17 years have passed since its completion, combined with new nearby hotel openings, the property appeared relatively outdated, leading to guest ratings below those of nearby competitors

• Renewal of interiors and FF&E (all guest rooms)

• Installation of smart TVs (all guest rooms)

• Refurbishment of public areas

• Conversion of remaining smoking rooms to non-smoking and

  installation of a designated smoking booth March 2025 – August 2025

  Expected ROI: 18.7%

• CAPEX: JPY 415 million

• GOP Increase: JPY 77 million per year (+20.4%1)

Deluxe Twin

Deluxe Twin（with extra bed）

Comfort Triple

Comfort Twin

After Renovation

17

(Note 1) The figures represent the percentage increase versus the projected full-year 2025 baseline assuming no renovation

• Below are additional examples of high NOI yield value-added CAPEX renovations

Property Name		Hotel MyStays Iidabashi	Hotel MyStays Nippori	Fusaki Beach Resort Hotel & Villas	Art Hotel Niigata Station
Completion Year		1990	1987	19821	1985
Main Work		Renovate all guest rooms Increase total capacity through a change in room mix and an increase in the number of rooms	Renovate all guest rooms Replace semi-double beds with bunk beds or double beds	Renovate 10 villa-type rooms (of the property’s total of 398 guestrooms, 138 rooms are villa-type)	Renovate all guest rooms, a restaurant, and banquet halls Conversion of smoking room floors to non-smoking (2 of 3 floors)
Renovation Period		May – September 2024	September 2024 – March 2025	March – July 2025	January – July 2025
ROI		48.1％	27.2%	21.5%	11.0%
	CAPEX	JPY 360 million	JPY 384 million	JPY 262 million	JPY 628 million
	GOP Increase	JPY 173 million2	JPY 104 million3	JPY 56 million4	JPY 69 million5

Ⅱ-13. Case Study: Past Projects of Strategic CAPEX (not exhaustive)

(Note 1) Year of completion of the oldest building

18

(Note 2) Difference between actual GOP for the period from October 2024 to September 2025 after renovation and the estimated GOP for the same period assuming no renovation (Note 3) Difference between estimated annual GOP at stabilized post-renovation operations and the estimated annual GOP for 2024 assuming no renovation

(Note 4) Difference between estimated annual GOP for 2025 assuming renovation effects fully materialize throughout the year and the estimated annual GOP for 2025 assuming no renovation (Note 5) Difference between estimated annual GOP at stabilized post-renovation operations and actual annual GOP for 2024

Ⅳ. Status of Hotel Operations and Market

• In 2025, Japan’s accommodation market grew by +16.0% YoY, driven by robust demand from both domestic and inbound travelers

Ⅲ-1. Overall Accommodation Market in Japan

Accommodation Spending in Japan1（JPY billion）

Change

Inbound Travelers

Domestic Travelers

20

(Note 1) Source: MLIT

• The number of inbound travelers in 2025 steadily increased by 15.8% from 2024. While the number of travelers from China and Hong Kong declined YoY from November onward due to deteriorating Japan–China relations, strong inbound demand from other countries and regions continued to offset and mitigate the impact

• As for the average travel spending of inbound travelers in 2025, accommodation spending showed a steady increase of 9.7% YoY in contrast to a decrease in some items such as shopping. This suggests that accommodation spending is prioritized over all spending items for inbound travelers’ budgets

Number of Inbound Travelers１

Average Travel Spending of Inbound Travelers2

Annual Number Monthly Number (YoY Comparison for November 2025 and later)

Legend: ’24 ’25

(million overnight stays) (million)

Change

Others

Europe3

Hong Kong

U.S.

Taiwan

China

South

Korea

+10.4%

+3.7%

-4.9%

+13.8%

+15.2%

+17.8%

Others

-52.2%

China・

Hong Kong

-0.4%

-30.2%

(JPY thousand)

(Note 1) Source: JNTO (Note 2) Source: MLIT

(Note 3) U.K., France, Germany, Italy, Spain, Russia, Sweden, Denmark, Norway, and Finland

‘24 ‘25

November

‘24 ‘25

December

‘25 ‘26

January

21

Ⅲ-2. Inbound Travelers Trend

• The government has set a target to increase the total number of overnight stays by inbound travelers in regional areas1 to 130 million by 2030 in a draft of the Basic Plan for the Promotion of a Tourism-Oriented Nation from FY20262

• This target is approximately 2.6 times larger than the 2024 actual figure. The expected increase in regional overnight stays by inbound travelers toward this

target will be a tailwind for INV’s performance, as INV owns attractive properties in regional areas

Ⅲ-3. Government Target for Regional Overnight Stays by Inbound Travelers

Number of Overnight Stays by Inbound Travelers Room Revenue Composition of ICN 91 Properties (2024)3

(million overnight stays) (JPY million)

Gov. Initiatives

• Implementation of strategic inbound promotion initiatives

  • Marketing campaigns aimed at increasing repeat visitors from Asian markets

• Enhancement of regional tourism content

  • Utilization of historical assets such

    as traditional houses

• Strengthening transportation networks to regional areas

  • Expansion of regional air routes

Properties in Regional Areas

Properties in the three major

metropolitan areas

22

(Note 1) The three major metropolitan areas refer to Saitama, Chiba, Tokyo, Kanagawa, Aichi, Kyoto, Osaka, and Hyogo prefectures. Regional areas refer to all other prefectures

(Note 2) Basic Plan for the Promotion of a Tourism-Oriented Nation (Draft) (January 30, 2026)

(Note 3) Figures are calculated assuming ICN 91 properties were owned since the beginning of 2024

• Accommodation spending by domestic travelers grew in 2025 driven by a steady increase in the average spending per trip

Ⅲ-4. Domestic Traveler Market Trends

Accommodation Spending by Domestic Travelers1

Number of Domestic Travelers with Overnight Stays1

Average Accommodation Spending by Domestic Travelers per Trip1

＝

×

（JPY billion） （million） （JPY）

23

(Note 1) Source: MLIT

• As for MICE and banquets, the number of conferences with banquets continued to increase. Price revisions have led to higher unit prices, resulting in revenues from both MICE and banquets exceeding the pre-Covid 19 level

• Continue to consider Taiwan, South Korea and China as important marketing targets. Going forward, ICN will expand sales channels to emerging markets such as Southeast Asia, where increased inbound demand is anticipated

• Medium- to long-term corporate contracts and employee benefit use are on the rise. Expanding client base by responding to diversifying needs

Ⅲ-5. Initiatives by Iconia Hospitality K.K.

Initiatives implemented in the December 2025 FP

MICE and Banquets

Sales expansion through proactive proposal-based marketing

• The number of conferences with banquets continued to increase. Revenues from both MICE and banquets exceeded the pre-Covid 19 level with price revisions that have led to a higher unit prices

  ICN 18 hotels1

  (JPY million)

  Meeting Revenue

  Banquet Revenue

• Increased mid-to-long term contracts with corporations. Consider expanding sales in this segment as further demand can be expected. Additionally, obtained contracts for employee benefits usage at ICN operated hotels2. Going forward, ICN will consider expanding this service to resort hotels, including Kamenoi hotels.

  Sector	Hotel	Amount (JPY thousand)
  IT	Hotel MyStays Kameido	40,202
  Railway	Hotel MyStays Hamamatsucho	12,381
  Medical	Hotel MyStays Gotanda Station	12,292
  Real Estate	Hotel MyStays Premier Akasaka	7,900

  Dec. ‘19FP

  = 100%

  Meeting Revenue

  Initiatives for expansion and enhancement of client base

• Continue to consider Taiwan, South Korea and China as important marketing targets. Going forward, ICN will expand sales channels to emerging markets such as Southeast Asia (Thailand, Vietnam, etc.), where increased inbound demand is anticipated

• Based on the area-specific needs of each property, aim to improve DOR through renovations in order to increase rooms that can accommodate large numbers of guests, mainly at properties where an increase in inbound demand can be expected

• Promote the creation of “pet-friendly” hotels with the aim of appealing to a wider range of guests. Expand client base by addressing the needs of dog lovers who consider pets as important family members

Total “pet-friendly rooms” at hotels operated by ICN: 548 rooms

of which, rooms at hotels owned by INV: 38 rooms (as of December 31, 2025)

The hotel was honored with internationally recognized awards in three categories: Hotel, Spa, and Restaurant at the prestigious “World Luxury Awards 2025”.

In addition to the Hotel and Spa that were honored for the second consecutive year

following 2024, the restaurant “HANARÉ” won the “World Luxury Restaurant Award” in 2025.

The awards have raised global recognition and led to increased inbound demand, primary from Europe and U.S.A..

For more detail, please refer to the hotel website (Japanese only): https://www.fusaki.com/blog/archives/22827

(Note 1) Refers to the following hotels: MyStays Shin-Urayasu Conference Center, Hotel MyStays Hakodate-Goryokaku, Hotel MyStays Utsunomiya, Hotel MyStays Gotanda Station, Hotel Epinard Nasu, Hotel MyStays Shin Osaka Conference Center, Kamenoi Hotel Beppu, Art Hotel Joetsu, Art Hotel Hirosaki City, Hotel MyStays Premier Sapporo Park, Hotel MyStays Sapporo Aspen, Art Hotel Ishigakijima, Art Hotel Niigata Station, Hotel MyStays Kagoshima Tenmonkan, Art Hotel Asahikawa, Hotel MyStays Matsuyama, Hotel MyStays Premier Narita, Art Hotel Morioka

24

(Note 2) Hotels owned by entity other than INV and operated by ICN as of January 26, 2026

While the impact on areas with high inbound demand from China and Hong Kong and hotels accommodating group tours will require close monitoring, demand from other countries and regions remains strong, and overall steady growth is expected Domestic business demand is expected to remain strong. Leisure demand is also expected to remain stable with demand for the Golden Week holidays, summer vacation and fall travel seasons, and the New Year homecoming season. However, areas affected by reduced travel demand from China and Hong Kong will be closely watched for the impact on overall market price declines across the market
	Assumption of Domestic Demand		Assumption of Inbound Demand
	Leisure	Business	Leisure	Business
Outlook for June 2026 FP	Demand for year-end homecoming, as well as demand during the March and May holidays are expected to remain stable For areas affected by reduced travel demand from China and Hong Kong, close monitoring for the impact on overall market price declines is necessary	The importance of creating business opportunities through face-to-face interactions has been reaffirmed and such meetings continue to be valued. Consequently, corporate travel budgets tend to be increased or maintained, and demand is expected to continue its gradual upward trend	For the China and Hong Kong markets, attention is to be paid to the end of March when the flight schedule is changed to the summer schedule. Demand from South Korea, Taiwan, Europe, and the U.S.A. is expected to show steady growth, and it is expected that demand from European and American travelers will offset the decline in demand from China and Hong Kong, especially during the Easter period	Although demand is expected to decrease due to meetings moving online and higher accommodation fees, corporate travel budgets are also increasing, so demand is expected to remain at the current level
Outlook for December 2026 FP Onwards	Expected to remain stable with demand for summer vacation, fall travel season and New Year homecoming season, however, close attention is required for trends in outbound travel and the behavior of those who refrain from travelling due to rising prices and those avoiding peak periods when accommodation costs are high	Trends from the June 2026 FP are expected to continue and remain stable	Inbound demand continued to be stable. Increased inbound demand from emerging markets such as Southeast Asia is anticipated	Same as the June 2026 FP

Ⅲ-6. ICN: Future Outlook and Strategy

Future Strategy

1. Actively capture inbound demand while considering the price sensitivity of domestic guests, and implement strategic pricing with refinement of dynamic pricing to secure demand for weekday and off-peak periods

2. Leverage “Class II Travel Agency” license acquired in July 2025 and started selling the first ICN original tour products. Promote business development that meets wide-area tourism demand by maximizing the strength of the group

3. Promote customer loyalty through improvement of direct bookings and increasing the number of “GoTo Pass” members by providing “official website exclusive plans” etc. in addition to reviewing the point redemption rate and promotion of point interchangeability within the group

4. Introduce self-service check-in machines, mobile check-in terminals and QR based cloakroom services to increase customer satisfaction by reducing waiting time. These systems are equipped with multilingual functionality and diverse payment options to accommodate inbound demand, aiming to simultaneously improve operational efficiency and service quality while reducing work hours by streamlining reception desk operations

5. Reduce costs in food & beverage by leveraging scale merit through the newly established “Central Purchasing Team” and the introduction of an order management system, and the ongoing promotion of digital transformation

6. Continue to manage operations that balances profitability and business growth potential through strategies combining recruitment, development, placement, and productivity improvement

7. Recruited 19 interns among 30 from the first class of the “Narita Hospitality Academy”, who completed three years of the technical internship. Started accepting interns in the building cleaning category from the tenth class (from October 2025)

25

Initiatives to Maximize Revenue

Ⅲ-7. Initiatives by Sheraton Grande Tokyo Bay Hotel (SGTB)

• Although inbound group demand from China and Hong Kong slowed during the December 2025 FP due to a rumor surrounding a large earthquake predicted in Japan in July 2025 that did not occur, ADR remained stable thanks to an early strategic shift to capture domestic demand and securing of school trip and MICE demand

• Revenue from banquet and MICE1business increased compared to the December 2019 FP with increased number of attendees per event, although there was a decrease in the total number of events

• In the wedding business, strived to capture demand through value-added proposals and new experiential opportunities amid a shrinking market environment. SGTB frequently held small-scale wedding fairs during the December 2025 FP, such as mock weddings and tasting events, mainly on weekends, to generate sales opportunities

• TMK borrowed an additional JPY 10 billion in September 2025, of which JPY 6.5 billion will be allocated as the source of funds for the redemption of preferred equity interest announced on February 13, 2026. TMK is considering to use the remaining amount for value-add or large-scale renovation work of SGTB

Initiatives to Increase Room Revenue

• Although inbound group demand from China and Hong Kong slowed down during the December 2025 FP due to a rumor surrounding a large earthquake predicted in Japan in July 2025 that did not occur, ADR remained stable due to an early strategic shift to capture domestic demand and successful efforts to secure school trip and MICE demand

• Continued a strategy to prioritize segments with high ADR during peak demand periods

• For Jan.-Mar. 2026, strive to increase ADR by capturing demand from graduation trips etc. while focusing on Occ. From April onward, which marks the 25th anniversary of Tokyo DisneySea's opening, consider strategies to improve ADR for both domestic and inbound guests, taking into account demand created by the anniversary and related special events

  Capture demand for MICE and banquets

• Captured demand from insurance companies, automotive related companies, and door-to-door sales companies, due to the competitive advantage of SGTB over its competitors, particularly in terms of large size LED displays that match the demand for corporate events

• The hotel’s celebrity dinner shows accounted for 16% of total MICE and banquet revenues for the December 2025 FP. In 2026, continue to strive to generate banquet demand and accommodations, including mystery-solving events with overnight stays

• Obtained five MICE events in total for 2025 through the Marriot global carbon offset program

  “Connect Responsibly” that responds to growing demand for sustainability

• Continued to attract banquet and accommodation demand from overseas rugby national teams by leveraging competitiveness of location and facilities. Furthermore, banquet demand from sports organizations it sponsors remain stable

  Weddings

• As the wedding market as a whole shrinks, focus on capturing demand through proposals such as highly competitive menus unique to SGTB and new experiential initiatives at small-scale wedding fairs held frequently during the December 2025 FP

• Going forward, strive to realize up-selling through mock wedding/parties, tasting events and seminars, etc. at large-size wedding fairs held three times a year

• Consider introducing new large-size LED displays to offer new

  visual experiences

  Operating costs

• Focus on strengthening new graduate recruitment, securing appropriate staffing levels in line with the business environment, and implementing prudent labor cost management

• Despite general price pressures, such as increases in consumables, equipment, electricity and gas costs, as well as the impact of the yen’s depreciation, SGTB will continue to appropriately monitor and manage energy costs, as well as expenditures and inventory related to the procurement of consumables and food items. Furthermore, adjust menu prices to absorb the increase in food costs

  Starting from 2023, SGTB has served as a sponsor for multiple sports teams based in Chiba prefecture, providing special accommodation and banquet services that teams and their fans can enjoy, including VIP room catering service at ZOZO Marine Stadium

  • Chiba Lotte Marines

    (VIP room catering service at ZOZO Marine Stadium)

  • Urayasu D-Rocks

  • JEF United Ichihara Chiba

  Sponsorship of Local Professional Sports Teams

(# of events)

(JPY million)

26

(Note 1) Includes, MICE, meetings, breakfast and dinner for school trips, social parties, thank-you parties, hotel events

• Based on the trial calculation, ICN 73 hotels1 occupancy rate has increased driven by leisure demand, with the Japanese hotel market showing a similar trend (①, ②)

• The proportion of domestic travelers traveling for “Travel with Leisure Purpose” is also increasing, which supports our strategy to increase the number of Resort Type hotels (③)

Ⅲ-8. Trial Calculation: Business vs. Leisure Demand

Occ by Purpose of stay

①, ② adopts different calculation methods

①

ICN 73

hotels1

Business2

Leisure2

②

Japanese hotel market

Business3

Leisure3

③

Proportion of Travel with Leisure purpose

Inbound Tourist4 Domestic Tourist5

N/A6

(Note 1) Of properties held by INV as of the beginning of the December 2023 FP, 73 hotels operated by ICN or its subsidiary

(Note 2) Assumed the number of rooms sold on the days before Saturday, Sunday, and national holiday is leisure demand. As for other days, assumed the number of rooms sold is leisure demand if DOR is larger than 2.0, and if DOR is equal or less than 2.0, assumed the number of rooms sold multiplied by [DOR – 1.0] is leisure demand, while the remaining is assumed to be business demand (based on the assumption that all the rooms are used either by one person or two people)

27

(Note 3) Prepared by Asset Manager based on data provided by MLIT. The number of rooms sold for business purpose is the product of the number of all rooms sold and the proportion of travelers traveling on business purposes. The remaining is the number of rooms sold for leisure purpose (Note 4) Prepared by Asset Manager based on data provided by MLIT. The proportion of leisure purpose is the amount after deducting the proportion of travelers with business purpose from 100%

(Note 5) Prepared by Asset Manager based on data provided by MLIT. The proportion of leisure purpose is the amount after deducting the proportion of travelers with business purpose from 100%

(Note 6) 2021’s figure is blank because there is no statistical data for the year because of COVID-19

• The Cayman Islands Department of Tourism (CIDOT) continued negotiating with airline partners to increase the number of flights as the guest accommodation capacity on the islands has been increasing with multiple new hotel openings planned. During the December 2025 FP, although JetBlue reduced its flight frequencies during the off-season summer months, several airlines increased flight frequencies or launched new routes ahead of the peak winter season. This included Delta Air Lines resuming its NY-Cayman route for the first time in 10 years. Consequently, the number of flights in the December 2025 FP increased by 5.5% compared to the December 2024 FP, and stay-over visitors to the Cayman Islands increased by 2.1% from the December 2024 FP to 191,103. Continued flight increases and new routes during the winter/spring 2026 season are expected to further boost overnight visitor arrivals

• The Sunshine Suites Resort reopened by the end of December 2025, excluding the restaurant, and changed its name to “The Sunshine Hotel & Suites”. Although food and beverage revenues are expected to be impacted by the renovation of the restaurant during the June 2026 FP, ADR is expected to increase by 11.5% compared to the scenario without the renovation, and by 37.1% on a normalized basis

• The objection for the proposed Annex Expansion of the Westin presented by a neighbor was accepted by the Planning Appeals Tribunal (PAT). The next steps for this project are to collaborate with the Central Planning Authority (CPA) to submit the matter to the Grand Court for appeal, update required investment analysis for the expansion, and investigate the potential return on investment

Ⅲ-9. Update of the Status of the Cayman Islands

Change in Number of Room Accommodations in Cayman Islands1Change in Stay-over Visitors and Number of Flights1,3

+2.1%

Stay-over visitors 191,103 pers.

Stay-over visitors 187,143 pers.

(pers.)

2024

2025

+5.5%

2,120

2,010

(rooms)

Hotels Scheduled to be Opened

in 20262

• One/GT (177 rooms)

• Grand Hyatt (351 rooms)

• The Curio by Hilton (80 rooms)

(Note 1) Prepared by Asset Manager based on Cayman Islands Department of Tourism

(Note 2) This list is based on the information Asset Manager has researched and may not cover all hotels to be opened in 2026

(Note 3) Source: Aimbridge Hospitality. Total number of flights from the U.S., Canada, and the U.K. 28

• Although the latest number of rooms in new hotel developments has increased from six months ago, it remains well below the levels observed during the run-up to the 2020 Tokyo Olympics

• Construction material costs and labor costs have risen sharply. Future hotel supply is expected to be limited, with an increase in hotels positioned in higher price brackets than most hotels owned by INV

• Existing full service and resort type hotels in regional areas are expected to gain importance as key contributors to local economies and as providers of social roles such as evacuation shelters in times of disaster

Ⅲ-10. New Hotel Development in Japan and Rising Construction / Labor Costs

The Number of Rooms for New Hotel Development1

120,000 (rooms)

100,000

80,000

60,000

40,000

Jun. Dec. 2012

Jun. Dec. 2013

Jun. Dec. 2014

Jun. Dec. 2015

Jun. Dec. 2016

Jun. Dec. 2017

Jun. Dec. 2018

Jun. Dec. 2019

Jun. Dec. 2020

Jun. Dec. 2021

Jun. Dec. 2022

Jun. Dec. 2023

Jun. Dec. 2024

Jun. Dec. 2025

20,000

Construction Materials Cost Index and

Labor Costs Index2

150

130

110

(%)

Construction Material Cost (2015=100%)

Labor Costs for Construction (2015=100%)

90

Jan. 2015 Jan. 2016 Jan. 2017 Jan. 2018 Jan. 2019 Jan. 2020 Jan. 2021 Jan. 2022 Jan. 2023 Jan. 2024 Jan. 2025

Dec. 2025

29

(Note 1) The new supply plans shown above are based on developers' plans based on HOTERES research as of December 15, 2025, and for some hotels whose planned number of rooms is undetermined or unknown, the analysis assumes an average value of 200 rooms per building. This analysis is intended to determine the trend of increase/decrease in supply over the next few years, and the actual number of new supply may differ significantly from the said figures

(Note 2) Source: Construction Research Institute, MLIT