To Our Unitholders

We would like to take this opportunity to express our sincere gratitude to all unitholders of Invincible Investment Corporation ("INV") for your continued support. We hereby provide you with a report on INV's asset management and financial results for the 44th fiscal period (from January 1, 2025 to June 30, 2025) (the "Reporting Period").

In the Reporting Period, the domestic hotels achieved steady growth compared to the previous year due to stable domestic demand coupled with the growth in inbound demand, which expanded despite the appreciation of the Japanese Yen. There was an unexpected decrease in demand from some East Asian countries due to unfounded rumors suggesting a major disaster would occur in Japan on July 5, 2025, which had no scientific basis. However, the total number of foreign visitors to Japan in July 2025 reached 3.43 million (estimated) according to the Japan National Tourism Organization, achieving the highest July figure on record. We believe that inbound demand, one of the key factors for the growth of INV's hotels, remains strong overall. Against this backdrop, we are actively implementing value-enhancement projects at our hotels in order to improve profitability. During the Reporting Period, we renovated 10 villas (cottage) at "Fusaki Beach Resort Hotel & Villas", our flagship hotel.

As for the Cayman hotels, revenues decreased slightly from the same period last year due to the partial sales stoppage caused by the large-scale renovation work at Sunshine Suites Resort which is taking longer than expected. However, the renovation work is currently in the final stages ahead of the full re-opening this autumn. The guest rooms that have already been completed feature brighter color schemes compared to before the renovation. We expect that the hotel will be bustling with guests during the peak winter season.

On the financing side, we worked to manage our finances by keeping a close eye on interest rate trends and maintained the fixed interest rate ratio at approximately 60%. Furthermore, the credit rating outlook was upgraded from A+ (stable) to A+ (positive) by Japan Credit Rating Agency in June 2025, which we believe reflects the positive evaluation of our initiatives that we have implemented to date, including extending loan terms, diversifying repayment dates, and increasing the fixed interest rate ratio.

As a result, INV announced a distribution per unit of JPY 1,895 by recording operating revenues of JPY 25,107 million, operating income of JPY 16,935 million, and net income of JPY 14,366 million in the Reporting Period.

On August 27, after the end of the Reporting Period, we acquired 10 domestic hotels with new borrowings and cash on hand. Of these 10 hotels, nine hotels are resort hotels located in the regional areas of Japan where future growth can be expected, along with one limited service hotel. These resort hotels have unique features, appealing to guests in their respective areas, and are equipped with attractive hot spring facilities, surrounded by tourist attractions such as the sea, mountains, clear streams, large historic shrines, and provide delicious cuisine made with locally sourced ingredients. We look forward to welcoming our unitholders to these hotels.

The current environment will continue to require us to address rising costs, including interest rates. However, we intend to further increase DPU through strategic investments such as acquiring new hotels to enhance earnings, and renovating existing hotels.

Your continued support is highly appreciated.