Invincible Investment : Performance Update for July 2017

To All Concerned Parties

[For Information Purpose Only]

Name of REIT Issuer:

August 22, 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])

Performance Update for July 2017

Invincible Investment Corporation ("INV") hereby announces its monthly performance for the hotel and residential assets.

1. Hotel and Residential Assets Overview

   The combined NOI for the hotel and residential portfolio1 decreased by 0.4% for the month of July 2017 (year-on-year).

   (Note 1) Based on 40 hotel properties and 70 residential properties stated in "4. Performance (1) 40 Hotel Properties" and "(2) 70 Residential Properties" below.

2. Hotel Assets Overview

   The hotel portfolio1 performance for the month of July 2017 (year-on-year) has shown declines in occupancy, ADR and RevPAR of 0.8pt, 0.9% and 1.7% respectively. Regional hotels in Nasu, Utsunomiya, Kanazawa, Nagoya and Fukuoka have achieved strong performance, however the performance of some of the city center hotels have been weak.

   (Note 1) Based on 40 hotel properties stated in "4. Performance (1) 40 Hotel Properties" below.

3. Residential Assets Overview

   The residential portfolio1 occupancy rate as of the end of July 2017 was 94.6% (-1.2pt year-on-year). The rent increase program continues to maintain progress as average rent per tsubo as of the end of July 2017 increased by 2.3% year-on-year.

   Rents, compared with immediately preceding leases, increased by 4.4% across all new leases, 2.2% across all renewal leases and 3.3% across all combined new and renewal leases in July 2017.

   INV achieved a rent increase for 64.3% of contract renewals in July 2017, which is a significant increase of 25.2pt compared to 39.1% for the previous calendar year. The retention rate for existing tenants remained high at 85.7% in July 2017. NOI2 increased by 1.2% for the month of July 2017 year-on-year, as a result of the rent increase program and increase in key money and renewal fees.

   (Note 1) Based on 70 residential properties stated in "4. Performance (2) 70 Residential Properties" below.

   (Note 2) NOI excludes one-off insurance-related revenues and expenses. NOI is provisional figure and subject to change when it is determined at financial closing; hereinafter the same.

4. Performance

5. 40 Hotel Properties1

   July 2017 (A)	Same month of the previous year (B)	Difference (A－B)	YoY Change
   Occupancy Rate2	91.1%	91.9%	-0.8pt	-0.9%
   ADR (JPY)3	9,781	9,866	-85	-0.9%
   RevPAR (JPY)4	8,907	9,063	-157	-1.7%
   Gross Revenue (JPY million)	2,131	2,139	-7	-0.4%
   # of Properties	40	40	―	―

   Fiscal period ending December 2017 Cumulative5 (C)	Same period of the previous year6 (D)	Difference (C－D)	YoY Change
   Occupancy Rate2	91.1%	91.9%	-0.8pt	-0.9%
   ADR (JPY)3	9,781	9,866	-85	-0.9%
   RevPAR (JPY)4	8,907	9,063	-157	-1.7%
   Gross Revenue (JPY million)	2,131	2,139	-7	-0.4%
   # of Properties	40	40	―	―

6. 70 Residential Properties7

7. July 2017 (A)	Same month of the previous year (B)	Difference (A－B)	YoY Change
   Occupancy Rate	94.6%	95.7%	-1.2pt	-1.2%
   Rent per Tsubo (JPY)	9,689	9,467	+222	+2.3%
   # of Properties	70	70	―	―

   Fiscal period ending December 2017 Cumulative5 (C)	Same period of the previous year6 (D)	Difference (C－D)	YoY Change
   Occupancy Rate	94.6%	95.7%	-1.2pt	-1.2%
   Rent per Tsubo (JPY)	9,689	9,467	+222	+2.3%
   # of Properties	70	70	―	―

   (Note 1) Based on 40 hotel properties; of the 49 hotel properties in our portfolio as of the end of July 2017, 9 hotels with fixed-rent lease agreements are excluded. 9 hotels with fixed-rent lease agreements are D29 Super Hotel Shinbashi/ Karasumoriguchi, D33 Comfort Hotel Toyama, D36 Super Hotel Tokyo-JR Tachikawa Kitaguchi, D37 Super Hotel JR Ueno-iriyaguchi, D39 Comfort Hotel Kurosaki, D40 Comfort Hotel Maebashi, D41 Comfort Hotel Tsubame-Sanjo, D42 Comfort Hotel Kitami, and D48 Takamatsu Tokyu REI Hotel. Furthermore, the 2016 performance includes the

   pre-acquisition data for the properties acquired in 2016, which was obtained from third-parties including previous owners.

   (Note 2) "Occupancy Rate" for hotel portfolio is calculated using the following formula:

   room occupancy rate = total number of rooms occupied during the relevant period ÷ (aggregate number of rooms during the relevant period x number of business days during target period)

   (Note 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.

   (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 as product of room occupancy rate and ADR.

   (Note 5) Figures for July 2017 are stated. (Note 6) Figures for July 2016 are stated.

   (Note 7) Based on 70 residential properties owned as of the end of July 2017.

   (Note 8) Percentages are rounded to one decimal place. ADR and RevPAR are rounded to the nearest yen and Gross Revenue is rounded down to the nearest million yen.

   (Note 9) For the details of performance for each asset, please visit INV's website: http://www.invincible-inv.co.jp/eng/cms/review.html

   (Note 10) Cumulative occupancy rate for residential portfolio is calculated by dividing the sum of total leased area by the sum of total leasable area at the end of each month and the percentages are rounded to one decimal place. Cumulative rent per tsubo is calculated by dividing the total rental revenue including common area charges for each month by the sum of total leasable area at the end of each month.

   Website of INV: http://www.invincible-inv.co.jp/eng