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 45th fiscal period (from July 1, 2025 to December 31, 2025) (the "Reporting Period").

Regarding the domestic hotels during the Reporting Period, hotels in the Kansai area performed particularly strong, driven by the growing popularity of the Osaka-Kansai Expo, particularly during the latter half of the event. In addition, inbound demand also continued to perform well. Although tensions were observed in Japan-China relations stemming from the statement in the Diet in November 2025, the impact was limited as hotels owned by INV exhibit relatively low exposure to the Chinese tourists in terms of room revenue, and inbound demand from countries and regions other than China had been strong.

As for the Cayman hotels, the large-scale renovation work at Sunshine Suites Resort was completed during the Reporting Period and reopened under the new name "The Sunshine Hotel & Suites". Bookings have been exhibiting a robust upward trajectory toward the winter season with the new design and value-added features, and we expect further revenue contribution going forward.

On the financing side, amid increased uncertainty regarding the future interest rate environment, we are moving beyond the conventional playbook of "the lengthening of loan maturities" and "increased fixed interest rate ratio" and are carefully assessing market trends and optimizing the composition of borrowing periods and the fixed interest and floating interest ratio.

Regarding our initiatives for sustainability, we obtained a "3-Star" rating in the 2025 GRESB Real Estate Assessment for the third consecutive year and a "B" rating in the 2025 CDP Climate Change Program Assessment for the first time.

As a result, INV announced a distribution per unit of JPY 2,186 by recording operating revenues of JPY 28,591 million, operating income of JPY 19,309 million, and net income of JPY 16,688 million in the Reporting Period.

While a continued inflationary environment is anticipated, the hotel sector is an asset class where price increases for accommodation are relatively easy to pass on. Most hotels owned by INV employ a variable rent scheme linked to revenue, and we believe that INV is well positioned to benefit from inflation in terms of revenues. We will continue to pursue improvement of asset profitability and maximizing the overall value of the portfolio.

Your continued support is highly appreciated.