Financial Results (20250825 ENG Jun2025FP)

Invincible Investment Corporation

June 2025 Fiscal Period Results

TSE Code : 8963

(January 1, 2025 to June 30, 2025)

August 25, 2025

Table of Contents

1. Executive Summary 3 - 4

2. Summary of Properties to be Acquired in August 2025

   Ⅱ-1. Summary of Properties to be Acquired in August 2025 6

   Ⅱ-2. Change in Hotel Portfolio 7

   Ⅱ-3. Property Overview 8-17

   Ⅲ-1.	Financial Highlights for June 2025 FP	19
   Ⅲ-2.	Operating Revenue Composition	20
   Ⅲ-3.	Summary of December 2025 FP Forecast	21
   Ⅲ-4.	Summary of June 2026 FP Forecast	22

3. Summary of June 2025 FP Results, December 2025 FP Forecasts, and June 2025 FP Forecasts

   
   
   

   1. Status of Residential Operations

      V-1. Performance of Residential Properties 42

      V-2. Changes of Residential Rents 43

   2. Financial Condition 45

   3. ESG Initiatives 47

      Ⅲ-5.

      Revenue and GOP of ICN 91 Properties

      Past Performance and Forecasts 23

      Appendix (1)

      1. Benefit Program for Invincible Unitholders 49

      2. Inbound Market: Inbound Visitors to Japan by Country 50

      3. Domestic Portfolio Map 51

      4. Track Record of External Growth

   Ⅲ-6. ICN 91 Properties KPIs

   Past Performance and Forecasts

   Ⅲ-7. Cayman Hotel KPIs

   Past Performance and Forecasts

   52

   1. 5. Sponsor Pipeline 53

      6. Summary of Appraisal Value and NAV per Unit 54

   2. 7. Financial Impact of Foreign Exchange Fluctuation (vs. Dec. 2025 FP Forecast) 55

   Ⅲ-8. Capital Expenditures and Depreciation 26

   Ⅲ-9. Case Study: Strategic CAPEX at Fusaki Beach Resort Hotel & Villas 27

4. Status of Hotel Operations and Market

   Ⅳ-1. Overall Accommodation Market 29

   Ⅳ-2. Inbound Market: Full Year Comparison 30

   Ⅳ-3. Inbound Market: Inbound Repeat Visitors and International Flights at Regional Airports 31

   Ⅳ-4. World Expo 2025 in Osaka 32

   Ⅳ-5. Initiatives by ICN 33-34

   Ⅳ-6. ICN: Future Outlook and Strategy 35

   Ⅳ-7. Initiatives by Sheraton Grande Tokyo Bay Hotel (SGTB) 36

   Ⅳ-8. Trial Calculation: Business vs. Leisure Demand 37

   Ⅳ-9. Update of the Status of the Cayman Islands 38

   Ⅳ-10. Status of Overseas Travel 39

   Ⅳ-11. New Hotel Development in Japan and Increase of Construction / Labor Costs 40

   1. Financial Impact of Foreign Exchange Fluctuation (vs. Jun. 2026 FP Forecast) 56

   2. Base Rate: Result and INV Assumption 57

Appendix (2) - Financial and Operational Data

1. Key Operational Data for Variable Rent Hotels 59 - 61

2. Financial Metrics 62

3. Income Statement 63

4. Balance Sheet 64 - 65

5. Cash Flow Statement and Dividend Distribution 66

6. Property Income 67 - 70

7. Appraisal Value 71 - 75

8. Portfolio Properties 76 - 79

9. Borrowings and Investment Corporation Bonds 80 - 87

10. Overview of Unitholders 88

11. Unit Price Information 89

1

1. Executive Summary

   Results of June 2025 Fiscal Period (FP)	existing hotels and increased rental income from properties acquired in July 2024
   Summary of Properties to be Acquired in August 2025	NOI yield of 3.9%)
   Domestic Portfolio	the same period in 2024, with a 15.2% increase in RevPAR and a 15.3% increase in GOP increase rents and occupancy rates

   • Operating revenue for this period increased by 18.8% to JPY 25.1 billion compared to the June 2024 FP, driven by improved performance of

   • Net income increased by 11.4% to JPY 14.3 billion compared to the June 2024 FP. This net income of JPY 14.3 billion is 4.0% higher than the forecast announced on February 26, 2025

   • DPU decreased by 1.1% to JPY 1,895 compared to the June 2024 FP actual figure (JPY 1,917). However, the DPU of JPY 1,895 is 1.8% higher than the June 2024 FP simulated figure (JPY 1,861) assuming the absence of a one-time factor regarding dividend income from Sheraton Grande Tokyo Bay Hotel ("SGTB")1 in the previous year's figure

   • The total appraisal value of the 145 properties held at the end of this period was JPY 775.6 billion, an increase of JPY 8.1 billion (or a 1.1% increase) from the end of the December 2024 appraisal

   • Will acquire 10 domestic hotels for a total acquisition price of JPY 34.2 billion at an average NOI appraisal yield of 7.0% (and post-depreciation

   • Will expand 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 will be 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 50 hotels, approximately 6,450 rooms, most of which are operated by Iconia Hospitality K.K. ("ICN")

   • For the 91 domestic hotels managed by the major tenant, ICN or its subsidiary ("91 ICN properties2"), all KPIs for this period exceeded those of

   • Food & Beverage revenue3, including revenue from banquets, meetings, and restaurants, increased by 6.1% compared to the June 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 1.1 points to 36.0% from the June 2024 FP

   • NOI for the 41 residential properties for this period was JPY 1,145 million, up 0.5% from the same period in 2024, due to successful efforts to

   • INV decided to continue holding the preferred equity interest of SGTB as the hotel is expected to contribute to the mid-to long-term revenues of INV

   3

   (Note 1) The dividend income from SGTB for the June 2024 FP is equivalent to 12 months' worth of income, six months more than usual, due to special factors (Note 2) Refers to 91 hotels operated by ICN or its subsidiary in INV portfolio as of the ending of the June 2025 FP

   (Note 3) Food and beverage revenue refers to revenue from banquets, meetings, weddings, and restaurants. This definition is consistently used throughout this document

   Cayman Hotel Portfolio	the COVID-19 pandemic, leading to an improvement in performance of the two Cayman hotels
   Financial Condition	sustainability initiatives. The credit rating outlook was upgraded from A+ (stable) to A+ (positive) by Japan Credit Rating Agency in June 2025
   Forecasts for December 2025 FP and June 2026 Fiscal FP

   • RevPAR for the two Cayman hotels decreased by 6.5% to USD 417 compared to the same period in 2024 due to a decrease in Occupancy rate stemming from several factors such as the large-scale renovation at Sunshine Suites Resort

   • USD based Management Contract Revenue this period decreased by 12.3% compared to the same period in 2024

   • For the December 2025 FP and the June 2026 FP, management contract revenue is expected to increase YoY in USD terms due to an increase in revenue reflecting the completion of the above-mentioned large-scale renovation despite the impact from upcoming openings of competitor hotels. However, for the June 2026 FP, management contract revenue is expected to decrease YoY in JPY terms due to JPY appreciation. The impact of hotel openings is expected to be alleviated if there is a further recovery in air traffic to the Cayman Islands, which was reduced due to

   • Of the total borrowings of JPY 26.2 billion executed in this period, approximately 70% were secured through green loan, promoting

   • To mitigate interest rate hike risks, approximately 60% of the borrowing for the property acquisition on August 27, 2025 were executed at fixed interest rates, maintaining the ratio of fixed interest rates to total interest-bearing debt at 62.4% (as of August 27, 2025 (planned)), consistent with previous levels

   • DPU is expected to be JPY 2,127 for the December 2025 FP, which is 3.5% higher than the forecast announced on February 26, 2025, due to the contribution of the properties to be acquired in August 2025. Together with DPU of JPY 1,895 for this period, INV aims for an annual DPU of JPY 4,022, the highest achieved since February 2010 when the corporate name changed to Invincible Investment Corporation

   • Domestic demand is expected to remain generally strong, although the increase in demand due to the Osaka Expo is expected to fade once the Osaka Expo comes to an end. As for inbound demand, while the current decline in the number of visitors from Hong Kong is considered a one-off, INV expects overall demand to remain strong going forward

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

   4

2. Summary of Properties to be Acquired in August 2025

   • INV will acquire 10 hotels, focusing on resort-type hotels located in regional areas, with unique features, attractive to guests in their respective areas, and

     future growth potential. The total acquisition price is JPY 34,284 million at an average 7.0% appraisal NOI yield

   • This transaction aims to steadily increase EPU through external growth using cash on hand and borrowing, without issuing equity

Ⅱ-1. Summary

Properties to be Acquired

Borrowing for the Acquisition

(JPY million) (JPY million)

Annual EPU Increase (simulated): + JPY 1088

（Note 1）Anticipated acquisition price shows purchase price set forth in the purchase and sale agreement and does not include adjustments for property taxes, city planning taxes, or national or local consumption taxes

（Note 2）Appraisal NOI is the one calculated by direct capitalization method in stated in the appraisal report on the valuation date of June 1, 2025. The yield is calculated by dividing appraisal NOI by acquisition price

（Note 3）Appraisal NOI (after depreciation) is calculated by deducting estimated depreciation amount from appraisal NOI. The yield is calculated by dividing appraisal NOI (after depreciation) by acquisition price

（Note 4）Average appraisal NOI yield is calculated by dividing the total of appraisal NOI by the total of anticipated acquisition price. Average appraisal NOI (after depreciation) yield is calculated by dividing the total of appraisal NOI (after depreciation) by the total of anticipated acquisition price

（Note 5）Simulated interest rate is based on the base rate as of August 25, 2025, and might differ from the rate used in calculating actual interest to be paid

（Note 6）Simulated annual interest is calculated by multiplying simulated interest rate by borrowing amount

（Note 7）Average loan term is calculated by taking the weighted average of the loan term of each tranche based on the loan amount. Average simulated interest rate is calculated by taking the weighted average of the simulated interest rate of each tranche based on the loan amount

6

（Note 8）Annual EPU increase (simulated) is calculated by the following formula: ([Appraisal NOI (after depreciation)] - [Simulated annual interest] - [JPY 80 million: Estimated financial related costs + Operating expenses excluding property related expenses associated with the properties to be acquired]) / [7,646,453: Number of investment units issued and outstanding as of the date of this material]. As this is merely a simulated figure, this does not guarantee actual increase in EPU

Ⅱ-2. Change in Hotel Portfolio

Portfolio Composition2 by Hotel Type3 Portfolio Composition2 by Geography4

After Acquisition

Before Acquisition

After Acquisition

Before Acquisition

Unit: JPY billion (% = proportion）

Unit: JPY billion (% = proportion）

(ex. Tokyo 23 wards)

(Note 1) The amount of preferred equity interest contribution by INV to the JV TMK is counted according to the number of properties of underlying assets

(Note 2) Based on acquisition price and acquisition price of SGTB interest in INV's portfolio is calculated by applying the amount of preferred equity interest contribution by INV to the JV TMK. The acquisition price of overseas hotels is the book value of the hotels as of May 9, 2019 when INV acquired the leaseholds of the properties, etc. related to the overseas hotels as dividend in kind in line with the termination of the SPC contract, which were converted into a JPY amount via the forward exchange rate of USD 1=JPY 110.45. The amount of preferred equity interest contribution by INV to the JV TMK is based on the property type or location of the underlying asset

(Note 3) Full service hotels are, in general, hotels that have both restaurant facilities providing breakfast, lunch and dinner (including meals provided by reservation) and meeting facilities that can be used for banquet services. We categorize all hotels other than full service hotels as limited service hotels (except for limited service hotels that are classified as resort hotels, as described below). Resort hotels are hotels located in areas where a substantial number of guests stay for sightseeing or recreational purposes and includes both full service hotels and limited service hotels. With respect to a hotel that falls within the definition of both a full service hotel and a resort hotel, we categorize the hotel as a full service hotel if it has substantial demand for meeting room, banquet service, wedding service or food and beverage service (including demand from non-staying guests) and as a resort hotel in all other cases. With respect to a hotel that falls within the definition of both a limited service hotel and a resort hotel, we categorize the hotel as a resort hotel

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(Note 4) Defined as follows: Greater Tokyo (ex, Tokyo 23 wards) is Tokyo (ex. Tokyo 23 Wards), Kanagawa, Chiba and Saitama. Kansai area is Osaka, Hyogo ,Kyoto, Shiga, Wakayama and Nara. Chubu area is Aichi, Gifu, Mie, Shizuoka, Nagano, Yamanashi, Niigata, Toyama, Ishikawa and Fukui. Kyushu area is Fukuoka, Kumamoto, Kagoshima, Nagasaki, Oita, Miyazaki, Saga and Okinawa. Others is Aomori, Iwate, Miyagi, Akita, Yamagata, Fukushima, Ibaraki, Tochigi, Gunma, Tottori, Shimane, Okayama, Hiroshima, Yamaguchi, Tokushima, Kagawa, Ehime, and Kochi

Characteristics

• Located on the Atsumi peninsula, a popular resort area known for its natural

  attractions such as "Katahama Jusanri Beach" and activities such as golf

• All rooms in the hotel have great views as the hotel is 100m above sea level

• Hot spring facilities offer a wide variety of baths, highlighted by an open-air

  infinity bath with natural hot spring water and spectacular panoramic views

• Mediterranean buffet and course meals prepared by chefs specializing in Japanese, Western, and Chinese cuisine

  Hotel Type	Resort
  Address	1460-36, Honeyama, Hiicho, Tahara-shi, Aichi, and 13 other lots
  Access	70 min by car from JR Toyohashi Station / 35 min by car from Mikawatahara Station on Toyohashi Railway Atsumi Line
  Completion Year	1968 (Hotel) and others1
  Renovation Period	Feb.- Jul. 2023, Apr.- Jul. 2025
  No. of Rooms	154
  GFA (m2)	17,449.592
  Land Area (m2)	86,371.60
  Ownership	Land: Ownership, Land Lease3/ Building: Ownership
  Food & Beverage	3 venues
  Other Main Amenities	Hot Springs (indoor /outdoor), Banquet / Meeting Room, Kids' park, Outdoor pool, Wedding Chapel, Esthetic salon, Dog run
  Map

• Diverse room types including dog-friendly rooms and extensive facilities, enable the hotel to attract a wide range of guests

  
  
  
  
  
  
  
  
  

  Hotel KPIs (Appraisal)4

  Occupancy	ADR	RevPAR	NOI
  83.6%	JPY 18,700	JPY 15,633	JPY 490 million

  8

  (Note 1) Others are as following: 1973 (Extension), 1977 (Extension), 1980 (Extension), 2001 (Hall), 2008 (Extension), and 2014 (Dormitory/break room, storage room) (Note 2) There are two storage rooms and a garbage area (total of 104.46m2) as annex buildings

  (Note 3) Some part of its leased land area is unknown

  (Note 4) Hotel KPIs (appraisal) are numbers stated in the appraisal report on the valuation date of June 1, 2025. They are assumed numbers for the normal year assessed by each appraisal firm under certain preconditions. They are not guaranteed to be achieved in the future, and they may actually change significantly

  Characteristics

• A resort hotel located on a plateau offering panoramic views of the Kirishima Mountain Range designated as one of Japan's first national parks, and is easily accessible by car from Kagoshima Airport

• The baths feature a large public bath with natural hot spring water directly from the source, as well as more than 10 different types of baths

• "Kirishima Yukemuri Terrace", one of the largest buffet restaurants in the area, serves over 90 dishes featuring carefully selected local ingredients such as black pork and black beef

  Hotel Type	Resort
  Address	3912-1, Tonoyu, Takachiho, Makizono-cho, Kirishima-shi, Kagoshima, 45 other lots
  Access	30 min by car from Kagoshima Airport, 30 min by car from JR Kirishima-jingū Station
  Completion Year	1971 (Hotel), 1980 (Extension), 1989 (Banquet building)1
  Renovation Period	Jan. 2022 - Oct. 2023, Jun.- Jul. 2024, Jun. 2025 - Apr. 2026 (planned)2
  No. of Rooms	188
  GFA (m2)	21,321.883
  Land Area (m2)	37,368.954
  Ownership	Land: Ownership / Building: Ownership
  Food & Beverage	2 venues
  Other Main Amenities	Hot Springs (indoor /outdoor), Banquet / Meeting Room, Kids' park
  Map

• Accommodates a wide range of guest needs with a wide variety of guest rooms such as private open-air baths and family-type rooms

  
  
  
  
  
  
  
  
  

  Hotel KPIs (Appraisal)5

  Occupancy	ADR	RevPAR	NOI
  83.0%	JPY 18,800	JPY 15,604	JPY 485 million

  (Note 1) Applies to the major buildings within the properties located in the area

  (Note 2) There is a sand steam bath which is under construction and INV will take over the position of the contractor from the seller with the acquisition of the property. Upon succession of such a position, INV will take over the obligation to pay the remaining construction costs. However, such payment will be deducted from the

  acquisition price, therefore, it will be essentially borne by the seller. The sand steam bath has been taken into consideration in the appraisal value

  9

  (Note 3) Total Floor Area includes a dormitory (2,269.24 m2), and annex building comprised of the banquet building and others (total of 2,115.02m2). The sand steam bath (435.56m2) which is under construction (refer to Note 2) is not included (Note 4) The waterway (total of 190m2) for which permission was obtained from Kirishima city is not included

  (Note 5) Hotel KPIs (appraisal) are numbers stated in the appraisal report on the valuation date of June 1, 2025. They are assumed numbers for the normal year assessed by each appraisal firm under certain preconditions. They are not guaranteed to be achieved in the future, and they may actually change significantly

  Characteristics

• Located on a hilltop offering panoramic views of the picturesque Toba Bay, this hotel is nestled in the natural beauty of the Ise-Shima region

• Excellent access from Nagoya and Osaka, close to attractions such as the Toba Aquarium, and 30 minutes by car to the Ise Jingu Shrine (inner-sanctuary)

• The open-air bath overlooking Toba Bay offers one of the most memorable experiences of the stay, combining the comfort of the natural hot springs and magnificent views

• Enjoy dishes made with fresh seafood and mountain produce from the Ise-Shima region, served buffet-style in a Japanese-style restaurant

  Hotel Type	Resort
  Address	1200-7, Utsubodani, Arashima-cho, Toba-shi, Mie, one other lot
  Access	10 min by car from Toba Station on the Kintetsu Line
  Completion Year	1987, 2024 (Extension)1
  Renovation Period	Sep.- Dec. 2024
  No. of Rooms	68
  GFA (m2)	8,183.802
  Land Area (m2)	44,838.00
  Ownership	Land: Ownership / Building: Ownership
  Food & Beverage	2 venues
  Other Main Amenities	Hot Springs (indoor /outdoor)
  Map

• Opened six new rooms with open-air baths in December 2024

  
  
  
  
  
  
  
  
  

  Hotel KPIs (Appraisal)3

  Occupancy	ADR	RevPAR	NOI
  88.0%	JPY 25,000	JPY 22,000	JPY 304 million

  (Note 1) Applies to the major buildings within the properties located in the area

  10

  (Note 2) There are annex buildings including a garage, two machinery rooms, a dormitory, a pumping room and others (total of 505.84m2)

  (Note 3) Hotel KPIs (appraisal) are numbers stated in the appraisal report on the valuation date of June 1, 2025. They are assumed numbers for the normal year assessed by each appraisal firm under certain preconditions. They are not guaranteed to be achieved in the future, and they may actually change significantly

  Characteristics

• Kusatsu Onsen, one of Japan's three major hot springs, boasts the largest natural spring output in Japan and has been ranked No. 1 in "Japan's Top 100 Hot Springs" by Kankokeizai News Corporation for 22 consecutive years since 2003. The hotel is rare in that it draws hot spring water from three of the six main sources

• Positioned on a hill along Sainokawara-dori street, the main street of Kusatsu Onsen, and a short walk to Sainokawara Park, home to one of the largest open-air hot springs. Yubatake, the symbol of Kusatsu Onsen, is within a three-minute walk via the hotel's exclusive pathway "Yubatake Koji"

  Hotel Type	Resort
  Address	489-1, Sensui, Kusatsu, Kusatsu-machi, Agatsuma-gun, Gunma, and nine other lots
  Access	10 min on foot from Kusatsu Onsen Bus Terminal
  Completion Year	1986 (Extension, East building of the main building)1and others2
  Renovation Period	May - Nov. 2023
  No. of Rooms	80
  GFA (m2)	6,223.413
  Land Area (m2)	3,712.80
  Ownership	Land: Ownership / Building: Ownership
  Food & Beverage	1 venue
  Other Main Amenities	Hot Springs (indoor /outdoor)
  Map

• The buffet restaurant, newly opened in 2023, is certified as a "local production for local consumption" venue. Its Japanese and Western-style buffet features an abundance of locally sourced ingredients and is highly rated

  
  
  
  
  
  
  
  
  

  Hotel KPIs (Appraisal)4

  Occupancy	ADR	RevPAR	NOI
  88.0%	JPY 26,000	JPY 22,880	JPY 317 million

  11

  (Note 1) Although the Construction Date of this property is written as September 1, 1973 in the certificate of registry, part of the building as registered has been demolished, therefore, the construction date of the oldest existing building is listed (Note 2) Others are as following: 1990 (Extension, West building of the main building), 1995 (Extension, South annex), and 1997 (Construction, East annex)

  (Note 3) There is a Ryokan and a machinery room (total of 606.99m2) as annex buildings

  (Note 4) Hotel KPIs (appraisal) are numbers stated in the appraisal report on the valuation date of June 1, 2025. They are assumed numbers for the normal year assessed by each appraisal firm under certain preconditions. They are not guaranteed to be achieved in the future, and they may actually change significantly

  Characteristics

• A resort hotel with all rooms offering magnificent views of the Pacific Ocean

• Atagawa Onsen features 13 hot spring towers, creating a charming atmosphere with steam rising from the hot springs. The surrounding area is home to tourist attractions such as Atagawa Tropical & Alligator Garden

• All guest rooms are spacious, over 39 m2, suitable for groups, including dog

  friendly rooms, allowing for a wide range of guests to enjoy

• Located in an area rich in seafood from Sagami Bay, the hotel offers both

  buffet-style and course meals featuring locally sourced ingredients, prepared in Japanese, Western, and Chinese styles

• The hotel draws natural hot spring water from Izu-Atagawa, featuring a large bathhouse with a natural spring flow and an open-air bath. Guests can enjoy the sound of the waves at a unique oceanfront hotel

  
  
  
  
  
  
  
  
  

  Hotel KPIs (Appraisal)1

  Occupancy	ADR	RevPAR	NOI
  85.0%	JPY 23,600	JPY 20,060	JPY 264 million

  Hotel Type	Resort
  Address	989-1, Atagawa, Naramoto, Higashiizu-cho, Kamo-gun, Shizuoka, and four other lots
  Access	5 min on foot from Izu-atagawa station on the Izukyu Line
  Completion Year	1997
  Renovation Period	Jan.- Apr. 2022
  No. of Rooms	75
  GFA (m2)	8,453.14
  Land Area (m2)	2,727.10
  Ownership	Land: Ownership / Building: Ownership
  Food & Beverage	3 venues
  Other Main Amenities	Hot Spring (indoor /outdoor), Outdoor pool, Esthetic salon, Dog run
  Map

  (Note 1) Hotel KPIs (appraisal) are numbers stated in the appraisal report on the valuation date of June 1, 2025. They are assumed numbers for the normal year assessed by each appraisal firm under certain preconditions. They are not guaranteed to be achieved in the future, and they may actually change significantly 12

  Characteristics

• Located in Atsugi City, midway between tourist spots such as Hakone, Odawara, Kamakura, and Enoshima. Atsugi is one of the R&D/manufacturing hubs in the Tokyo metropolitan area, serving both leisure and business demand

• 7 minutes on foot from Hon-Atsugi Station, good access to central Tokyo and

  2.5 km to Atsugi IC, convenient for both train and car access. 43-space ground

  parking accommodates large vehicles like microbuses, ideal for group use

• All guest rooms have been renovated to double-occupancy rooms, with a maximum capacity of 360 guests, one of the largest hotels in the area

  Hotel Type	Limited Service
  Address	1-1-8 Sakae-cho, Atsugi-shi, Kanagawa
  Access	7 min on foot from Hon-Atsugi Station on the Odakyu Line
  Completion Year	1996
  Renovation Period	Oct. 2023 - Mar. 2024
  No. of Rooms	180
  GFA (m2)	3,750.60
  Land Area (m2)	1,391.42
  Ownership	Land: Ownership / Building: Ownership
  Food & Beverage	1 venue
  Other Main Amenities	ー
  Map

• The breakfast buffet features approximately 30 dishes, including homemade Japanese, Western, and Chinese cuisine, highly rated by guests

  
  
  
  
  
  
  
  
  

  Hotel KPIs (Appraisal)1

  Occupancy	ADR	RevPAR	NOI
  86.0%	JPY 7,400	JPY 6,364	JPY 183 million

  (Note 1) Hotel KPIs (appraisal) are numbers stated in the appraisal report on the valuation date of June 1, 2025. They are assumed numbers for the normal year assessed by each appraisal firm under certain preconditions. They are not guaranteed to be achieved in the future, and they may actually change significantly 13

  Characteristics

• Resort hotel with magnificent views, located on the slope of Mt. Tsukuba, called "Mt. Fuji of the West, Mt. Tsukuba of the East" and listed among Japan's 100 Famous Mountains. Over half of the guest rooms, the lobby terrace, and the infinity open-air bath overlook the Kanto Plain

• Convenient access to attractions such as Tsukubasan Shrine (within 5 minutes

  on foot), a major local attraction visited by about 230,000 people for New

  Year's worship

• A variety of rooms including dog-friendly, cycling-friendly (indoor bike storage), and family rooms for guests with infants, meeting diverse needs

  Hotel Type	Resort
  Address	1050-1, Nishizawa, Tsukuba, Tsukuba-shi, Ibaraki, and other 14 lots
  Access	40 min by Tsukubasan Shuttle Bus from Tsukuba Station on the Tsukuba Express
  Completion Year	19721and others2
  Renovation Period	Jan.- Jul. 2024
  No. of Rooms	61
  GFA (m2)	6,480.043
  Land Area (m2)	2,767.21
  Ownership	Land: Ownership, Land Lease / Building: Ownership
  Food & Beverage	1 venue
  Other Main Amenities	Hot Springs (indoor /outdoor), Kids' park
  Map

• As the only buffet restaurant in the Mt. Tsukuba area, it offers local specialty dishes made with ingredients from Ibaraki Prefecture

  
  
  
  
  
  
  
  
  

  Hotel KPIs (Appraisal)4

  Occupancy	ADR	RevPAR	NOI
  90.0%	JPY 24,200	JPY 21,780	JPY 212 million

  (Note 1) The Construction Date of this property is not written in the certificate of registry. According to the description in the building inspection certificate, the date of the first building inspection certificate is August 1972, and the registry shows the change and the extension on August 1, 1972 in the certificate of registry. Therefore,

  this date is considered as the date of construction in this document

  14

  (Note 2) Others are as following: 1979 (Extension), 1984 (Extension), 1987 (Extension), and 2005 (Extension) (Note 3) There is a pumping room (total of 3.31m2) as annex buildings

  (Note 4) Hotel KPIs (appraisal) are numbers stated in the appraisal report on the valuation date of June 1, 2025. They are assumed numbers for the normal year assessed by each appraisal firm under certain preconditions. They are not guaranteed to be achieved in the future, and they may actually change significantly

  Characteristics

• Standing along the banks of the Niyodo River, this resort hotel offers stunning

  views of the "Niyodo Blue" from all guest rooms and the restaurant

• The town of Ino, where the hotel is located, is rich in forests and nature, and the birthplace of Tosa washi paper, where guests can enjoy traditional papermaking workshops, and river activities such as rafting

• Baths feature natural hot spring water from the hotel's own source, and the restaurant serves Japanese-Western fusion kaiseki cuisine using local ingredients such as "Tosa Akaushi" beef

• The hotel is 40 minutes by car to "Niko Buchi deep water", a waterfall basin

  Hotel Type	Resort
  Address	538, Hanabatakeyama, Kamata, Ino-cho, Agawa-gun, Kochi, and six other lots
  Access	11 min on foot from JR Hakawa Station
  Completion Year	1997
  Renovation Period	-
  No. of Rooms	52
  GFA (m2)	7,692.161
  Land Area (m2)	20,711.01
  Ownership	Land: Ownership / Building: Ownership
  Food & Beverage	1 venue
  Other Main Amenities	Hot Springs (indoor /outdoor), Banquet / Meeting Room
  Map

  and sacred site along the Niyodo River

  
  
  
  
  
  
  
  
  

  Hotel KPIs (Appraisal)2

  Occupancy	ADR	RevPAR	NOI
  80.0%	JPY 16,300	JPY 13,040	JPY 55 million

  15

  (Note 1) There is a dormitory and others (total of 528.16m2) as annex buildings

  (Note 2) Hotel KPIs (appraisal) are numbers stated in the appraisal report on the valuation date of June 1, 2025. They are assumed numbers for the normal year assessed by each appraisal firm under certain preconditions. They are not guaranteed to be achieved in the future, and they may actually change significantly

  Characteristics

• A seaside resort hotel with ocean views from all rooms overlooking Ise Bay

• Scenic location in Mihama town, part of Mikawa-wan Quasi-National Park, the hotel is conveniently located within a one-hour drive from major cities such as Nagoya, Toyota, and Okazaki

• Variety of guest rooms, including view-bath rooms and dog friendly rooms,

  to meet the diverse needs of guests

• Large indoor bath with views of Ise Bay and an open-air bath where guests can feel the sea breeze and listen to the sound of the waves. The bath features natural hot spring water with pale-yellow transparency and smooth texture

  Hotel Type	Resort
  Address	39-108, Sunahara, Okuda, Mihama-cho, Chita-gun, Aichi, and three other lots
  Access	5 min by car from Chitaokuda Station on the Meitetsu Chita Line
  Completion Year	1977, 2016 (Extension)
  Renovation Period	-
  No. of Rooms	45
  GFA (m2)	4,707.241
  Land Area (m2)	14,883.09
  Ownership	Land: Ownership / Building: Ownership
  Food & Beverage	1 venue
  Other Main Amenities	Hot Springs (indoor /outdoor), Banquet / Meeting Room
  Map

• The hotel cuisine highlights Chita Peninsula's seafood and Chita beef

  
  
  
  
  
  
  
  
  

  Hotel KPIs (Appraisal)2

  Occupancy	ADR	RevPAR	NOI
  87.0%	JPY 14,300	JPY 12,441	JPY 44 million

  16

  (Note 1) There are two dormitory buildings, three pump rooms, and other machinery rooms (total area of 730.12m2) as annex buildings

  (Note 2) Hotel KPIs (appraisal) are numbers stated in the appraisal report on the valuation date of June 1, 2025. They are assumed numbers for the normal year assessed by each appraisal firm under certain preconditions. They are not guaranteed to be achieved in the future, and they may actually change significantly

  
  
  

  Characteristics

• Located in Yanagawa, a historic water town where waterways cover about 10% of the city's area. The area is designated as a National Place of Scenic Beauty, conveniently located about an hour from Fukuoka

• Positioned along the waterway, with direct boarding for river cruises from behind the hotel. The hotel offers a variety of river-cruise activity plans to fully enjoy the charms of Yanagawa

• Guests enjoy the blissful view of the Donko boats on the river and the cityscape of Yanagawa from the large bath with a view on the 5th floor

  Hotel Type	Resort
  Address	10-1, Banzen, Yashiro-machi, Yanagawa-shi, Fukuoka
  Access	7 min from Nishitetsu Yanagawa Station on the Nishitetsu Tenjin-Omuta Line
  Completion Year	1969, 1990 (Extension), 2001 (Extension)
  Renovation Period	-
  No. of Rooms	40
  GFA (m2)	6,071.611
  Land Area (m2)	10,725.14
  Ownership	Land: Ownership / Building: Ownership
  Food & Beverage	1 venue
  Other Main Amenities	Hot Springs (indoor /outdoor), Banquet / Meeting Room
  Map

• The hotel serves regional specialties such as eel and Yanagawa beef

Hotel KPIs (Appraisal)2

17

(Note 1) There is a dormitory and others (total of 406.15m2) as annex buildings

(Note 2) Hotel KPIs (appraisal) are numbers stated in the appraisal report on the valuation date of June 1, 2025. They are assumed numbers for the normal year assessed by each appraisal firm under certain preconditions. They are not guaranteed to be achieved in the future, and they may actually change significantly

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

   • Operating revenue decreased by 1.8% to JPY 25,107 million from the previous period due to a decrease in rents from the domestic hotels despite an increase in management contract revenue from the overseas hotels, both of which are due to seasonal factors

   • Net income decreased by 5.1% to JPY 14,366 million from the previous period. This net income of JPY 14,366 million is 4.0% higher than the forecast (JPY 13,818 million) announced on February 26, 2025. DPU decreased by 4.4% to JPY 1,895 from the previous period. This DPU of JPY 1,895 is the same as the forecast announced on February 26, 2025

Major Causes for Variance （JPY million）

19

19

Operating Revenue Composition1

20

(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

Ⅲ-3. Summary of December 2025 FP Forecast

Major Causes for Variance （JPY million）

21

Ⅲ-4. Summary of June 2026 FP Forecast

Major Causes for Variance （JPY million）

22

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

June FP December FP

(JPY billion) (JPY billion)

Other revenue

Other revenue

Food & Beverage

revenue

(inc. banquet and

meeting)

Room revenue

Food & Beverage

revenue

(inc. banquet and

meeting)

Room revenue

（Note 1）Other revenue includes items such as revenue from Solaniwa Onsen, revenue from shops, rent from tenants, and commission on vending machine sales 23

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

ADR

(JPY)

+3.8%

+5.6%

+7.5%

RevPAR

(JPY)

+7.1%

+15.2%

+4.6% +10.7%

+10.0%

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

+3.8pt

Occ

+0.6pt +1.2pt +2.5pt GOP (JPY mn)

+10.3%

+4.0%

+6.7%

+15.3%

24

(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.

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

ADR (JPY)

101,930

RevPAR (JPY)

67,403

62,919 63,653

51,386 49,369

35,794 35,839

-6.5% +9.1%

-1.4%

49,036

45,866

50,049

+8.5%

37,138 36,619

25,369 27,530

85,337

85,683

86,275

78,162

67,992 67,883

+19.7% -9.3%

+8.2%

+13.3%

62,084

74,303

67,370

48,190

52,144

56,491

63,993

2024 2025 2026 2024 2025 2024 2025 2024 2025 2026 2024 2025 2024 2025

Occ

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

GOP

-17.3pt +12.6pt

.5

+0.2

79.0%

74.3%

61.7%

52.6%

pt

52.8%

57.2%

pt

-8

65.7%

(JPY mn)

4,774

-12.9%

+2.5%

-2.1

1,657

1,984

4,649

3,474

3,026

1,524

+29.8%

3,102

4,551

%

4,152 3,946

6,431 6,137

2024 2025 2026 2024 2025 2024 2025 2024 2025 2026 2024 2025 2024 2025

25

Ⅲ-8. Capital Expenditures and Depreciation

（JPY million）

10,683

10,929

①Depreciation

2,262

1,877

3,741

2,770

4,848

3,350

667

5,811

3,585

928

6,926

4,108

1,323

7,992

5,703

960

7,740

6,651

82

7,522

5,647

45

7,964

5,175

92

2,696

9,332

2,809

1,790

4,732

4,963

5,808

5,051

6,194

②Strategic CAPEX1

③Maintenance

CAPEX2

Excess FFO3 (②+➃)

385

971

830

1,297

1,494

1,329 1,006

1,829

(88) (316)

➃Free Cash

(①-②-③)

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

Budget as of Feb. 26

Budget as of Aug. 25

JPY -41 per unit

26

(Note 1) Strategic capital investment for renovation including guest rooms, banquet rooms, restaurant 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)

Ⅲ-9. Case Study:

Strategic CAPEX at Fusaki Beach Resort Hotel & Villas

Legend:

Garden Villas Renovated by 2024 (6 rooms) Target of this renovation (10 rooms)

Items

March 2025 - July 2025

Expected ROI: 19.5%

1. • CAPEX: JPY 289 million

   • GOP increase: JPY 56 million (+2.5% compared to pre-renovation1)

     (Note 1) This percentage shows the rate of increase relative to the pre-renovation GOP for the entire property, not for the 10 rooms

     Before After

     
     
     
     
     
     
     
     
     

     27

2. Status of Hotel Operations and Market

Ⅳ-1. Overall Accommodation Market

Number of Overnight Stays in 2025 1H (2024 = 100%)1

2025 1H (cumulative)

Total:

101.1%

Inbound

Travelers:

Japanese

Travelers:

116.5%

95.9%

Inbound Travelers

Total

Japanese Travelers

Average FX rate2

(JPY/USD)

(Note 1) Prepared by Asset Manager based on date from MLIT 29

(Note 2) Source: Bank of Japan