Invincible Investment : Notice concerning Revision of Forecast of Financial Results and Distribution for the 29th Fiscal Period Ending December 2017

[For Information Purpose Only.

The Japanese language press release should be referred to as the original.] .

To All Concerned Parties

Name of REIT Issuer:

September 21, 2017

Invincible Investment Corporation Name of representative:

Naoki Fukuda, Executive Director Roppongi Hills Mori Tower

6-10-1 Roppongi, Minato-ku, Tokyo, Japan (Securities code:8963)

Asset manager:

Consonant Investment Management Co., Ltd. Naoki Fukuda, CEO

Contact: Jun Komo

General Manager of Planning Department (Tel. [phone])

Notice concerning Revision of Forecast of Financial Results and Distribution for the 29th Fiscal Period Ending December 2017

Invincible Investment Corporation ("INV") today announced the revision of its forecast of financial results and distribution per unit ("DPU") for the fiscal period ending December 2017 (29th fiscal period), which were previously announced in "Financial Summary for the June 2017 Fiscal Period (from January 1, 2017 to June 30, 2017)" dated August 22, 2017.

1. Revision of forecasts of financial results and DPU for the fiscal period ending December 2017 (from July 1, 2017 to December 31, 2017)

   Operating Revenues	Operating Income	Ordinary Income	Net Income	Total Distribution Amount
   Previous forecast (A) (announced on August 22, 2017)	JPY million 10,781	JPY million 6,512	JPY million 5,885	JPY million 5,884	JPY million 5,964
   Revised forecast (B)	JPY million 11,492	JPY million 7,024	JPY million 6,018	JPY million 6,018	JPY million 7,496
   Amount of variance (B) - (A)	JPY million 711	JPY million 512	JPY million 133	JPY million 133	JPY million 1,531
   Rate of variance	%	%	%	%	%
   ((B) - (A)) / (A)	6.6	7.9	2.3	2.3	25.7

   Earnings per Unit (Note)	Distribution per Unit (Excluding Excess Profit Distribution per Unit) (Note)	Excess Profit Distribution per Unit (Note)	Distribution per Unit (Including Excess Profit Distribution per Unit) (Note)
   Previous forecast (A) (announced on August 22, 2017)	JPY 1,524	JPY 1,524	JPY 21	JPY 1,545
   Revised forecast (B)	JPY 1,255	JPY 1,255	JPY 309	JPY 1,564
   Amount of variance (B) - (A)	JPY (269)	JPY (269)	JPY 288	JPY 19
   Rate of variance ((B) - (A)) / (A)	% (17.7)	% (17.7)	% 1,371.4	% 1.2

   (Note) The number of investment units issued and outstanding at the end of the fiscal period: 3,860,824 units (previous forecast) and 4,793,181 units (revised forecast).

   (Reference)

   Assumptions underlying the forecast of financial results and distributions for the fiscal period ending December 2017 are provided in Appendix 1.

   Simulated distribution per unit for the year 2017 are shown for reference purposes, which are calculated by applying adjustments, as the DPU for the fiscal period ended June 2017 could be affected by one-off expenses due to the acquisition of properties in the fiscal period ended June 2017 (the "Acquisitions in the Fiscal Period Ended June 2017") (Note 1), the issuance of new investment units through the public offering (the "Previous Public Offering") (Note 2) and the borrowings (the "Borrowings in the Fiscal Period Ended June 2017") (Note 3) (collectively, the "Transactions in the Fiscal Period Ended June 2017"), and the DPU for the fiscal period ending December 2017 could be affected by one-off expenses due to the acquisition of property to be acquired and the sale of properties announced on July 25, 2017 (the "Replacement") (Note 4), the acquisition of properties announced as of today (the "Acquisitions") (Note 5), the issuance of new investment units through the public offering and the third party allotment (collectively, the "Public Offering") (Note 6) and the borrowings (the "Borrowings") (Note 7) (collectively, the "Transactions in the Fiscal Period Ending December 2017", together with the Transactions in the Fiscal Period Ended June 2017, the "Transactions"), assuming that the Transactions had occurred prior to the commencement of the fiscal period ended June 2017. For details on the method for calculation and figures of simulated distribution per unit, please refer to Appendix 2. In addition, the 2017 annual DPU sensitivity versus ADR growth based on simulated distribution per unit for the year 2017 is also shown in Appendix 3.

   (Note 1) The Acquisitions in the Fiscal Period Ended June 2017 refers to acquisition of the properties announced in the press releases entitled "Notice concerning Acquisition of Assets and Entering into Leasing Contract" as of February 22, 2017 and "Notice concerning Acquisition of Asset and Entering into Leasing Contract" as of May 25, 2017 and implemented.

   (Note 2) The Previous Public Offering refers to the issuance of new investment units through the public offering announced in the press releases entitled "Notice concerning Issuance of New Investment Units and Secondary Distribution of Investment Units" as of February 22, 2017 and "Notice Concerning Results of New Investment Units to be Issued via Third-party Allotment" as of April 7, 2017 and implemented.

   (Note 3) The Borrowings in the Fiscal Period Ended June 2017 refer to the borrowings announced in the press releases entitled "Notice concerning Debt Financing" as of February 22, 2017 and "Notice concerning Debt Financing" as of May 25, 2017 and implemented.

   (Note 4) The Replacement refers to the acquisition and sale of assets announced in the press release entitled "Notice concerning Acquisition and Sale of Assets" as of July 25, 2017 and implemented.

   (Note 5) The Acquisitions refers to acquisition of the properties to be acquired announced in the press releases entitled "Notice concerning Acquisition of Assets and Entering into Leasing Contract" and "Notice concerning Acquisition of Asset (preferred equity interest)" as of today.

   (Note 6) The Public Offering refers to the issuance of new investment units through the public offering (the "Primary Offering") and the third party allotment (the "Third Party Allotment") announced in the press release entitled "Notice concerning Issuance of New Investment Units and Secondary Distribution of Investment Units" as of today.

   (Note 7) The Borrowings refer to the borrowings announced in the press release entitled "Notice concerning Debt Financing" as of today.

2. Reasons for the revision of forecast of financial results and distribution

   As announced in the press releases "Notice concerning Acquisition of Assets and Entering into Leasing Contract", "Notice concerning Acquisition of Asset (preferred equity interest)", "Notice concerning Debt Financing" and "Notice concerning Issuance of New Investment Units and Secondary Distribution of Investment Units", INV expects to conduct the Public Offering as well as Borrowings in order to acquire the four hotel properties and the preferred equity interests in a special purpose company (the "Anticipated Acquisition") on October 13, 2017, and the one hotel property (additional acquisition portion) in connection with the Replacement on October 31, 2017, respectively.

   The revision of the forecast of financial results and distribution for the fiscal period ending December 2017 are based on expectation of an increase in revenue owing to the contributions from properties to be acquired as well as considerable one-off expenses due to the Public Offering and Borrowings.

3. Excess profit distribution policy

INV believes maintaining the stability of cash distributions over the medium term is one of the most important factors in determining the amount of distribution for a given fiscal period, and therefore, INV has adopted the policy to make distributions in excess of profits in order to stabilize distributions, in cases where dilution of investment units or significant expenses are to be recorded in connection with, among other things, the acquisition of assets or the raising of capital, leading to a temporary decrease in distribution per unit, taking into consideration the level of distribution per unit assuming such acquisition of assets or capital raising had contributed for a full fiscal period.

INV may also consider making distributions in excess of profits for the purpose of mitigating the impact of corporate tax increase arising from different rules and practices in tax and accounting, such as treatment on depreciation of fixed term land lease or asset retirement obligation.

With respect to the fiscal period ending December 2017, due to considerable one-off expenses in connection with the Public Offering and the Borrowings, earnings per unit is expected to decrease. Therefore, from the perspective of maintaining stable distributions, INV intends to make distributions in excess of profits within the scope of the expected shortfall between actual earnings per unit and the simulated earnings per unit after the Acquisitions, the Public Offering, the Borrowing and the Replacement. The figures for earnings per unit, distribution per unit (excluding excess profit distribution per unit), excess profit distribution per unit, distribution per unit (including excess profit distribution per unit) and simulated distribution per unit are summarized in the table A below. The actual results for the fiscal period ended June 2017 and the sum of the actual results and forecasted figures for the year 2017 are also stated therein. Simulated distribution per unit for the fiscal period ending December 2017 are calculated by applying adjustments listed 3, 4 and 7 through 11 among the adjustments described in Appendix 2. For the other assumptions, please refer to Appendix 1.

In addition to the distributions in excess of profits to stabilize distributions as mentioned above, INV also intends to make distributions in excess of profits in order to cope with the discrepancy between tax and accounting treatment for the fiscal period ending December 2017 as with the fiscal period ended June 2017.