To Our Unitholders

At the outset, we would like to extend our deepest sympathies to all those affected by the 2026 Kumamoto Earthquake and the recent torrential rainfall in Chiba Prefecture. We sincerely hope for the earliest possible restoration and reconstruction of the affected areas.

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 report on INV's asset management and financial results for the 46th fiscal period (from January 1, 2026 to June 30, 2026) (the "Reporting Period").

Regarding the domestic hotels during the Reporting Period, while we were affected by temporary factors such as a decline in lodging demand associated with the Expo 2025 Osaka and a decrease in Chinese tourists, domestic demand remained resilient, and inbound demand from markets other than China and Hong Kong continued to grow steadily. As a result, hotel performance was generally solid across the rest of the portfolio. In addition, thanks to the earnings contribution from the hotels acquired in August 2025, we were able to capitalize on the favorable operating environment in the hotel market.

As for the Cayman hotels, operating performance remained solid, supported by continued strong demand in the Cayman Islands and the earnings contribution from The Sunshine Hotel & Suites following its reopening.

On the financing side, amid a continued rising interest rate environment, we have been working to mitigate interest rate risk by diversifying debt maturities and maintaining an appropriate fixed-interest rate ratio in order to appropriately manage the impact on our financial position. As a result of these efforts, Japan Credit Rating Agency, Ltd. ("JCR") upgraded INV's issuer rating to "AA-" during the period.

Furthermore, INV has been proactively pursuing strategic capital expenditures aimed at enhancing the competitiveness and earnings potential of its properties. By continuing to implement value-enhancement initiatives across both its domestic and overseas hotel portfolio, INV aims to achieve sustainable earnings growth over the medium to long term.

As a result, INV announced a distribution per unit of JPY 1,930 by recording operating revenues of JPY 26,789 million, operating income of JPY 17,564 million, and net income of JPY 14,729 million in the Reporting Period.

While uncertainties remain, including rising interest rates and fluctuations in certain inbound demand segments, we believe that supply and demand conditions in the domestic hotel market remain favorable and that significant medium- to long-term growth opportunities continue to exist. Based on this view, INV has established a medium-term target of achieving average annual growth of more than 3% in distributions per unit over the three-year period from 2026 through 2029. While internal growth will remain the primary driver of this initiative, we will also seek to enhance unitholder value through the strategic utilization of unrealized gains and retained earnings, as well as external growth opportunities pursued at the appropriate time.

Your continued support is highly appreciated.