To All Concerned Parties
[For Information Purpose Only]
Name of REIT Issuer:
September 21, 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. +81-3-5411-2731)
Performance Update for August 2017Invincible Investment Corporation ("INV") hereby announces its monthly and fiscal period to date performance for the hotel and residential assets.
Hotel and Residential Assets Overview
The combined NOI for the hotel and residential portfolio1 increased by 3.3% for the December 2017 fiscal period (July to August 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.
Hotel Assets Overview
The hotel portfolio1 performance for the month of August 2017 (year-on-year) has shown occupancy, ADR and RevPAR growth of 1.0pt, 2.9% and 4.2% respectively. Strong leisure demand especially at regional hotels in Nagoya, Fukuoka, Kanazawa, Nasu and Utsunomiya increased occupancy, ADR and RevPAR year-on-year.
The cumulative performance for the December 2017 fiscal period (July to August 2017) is as follows: occupancy, ADR and RevPAR increased by 0.1pt, 1.2% and 1.4% respectively compared to the same period in the previous year.
(Note 1) Based on 40 hotel properties stated in "4. Performance (1) 40 Hotel Properties" below.
Residential Assets Overview
The residential portfolio1 occupancy rate as of the end of August 2017 was 94.1% (-1.4pt year-on-year), partly due to the change of lease contract from rent guarantee to pass-through for Royal Parks Momozaka effective on August 1, 2017. The rent increase program continues
to maintain progress as average rent per tsubo as of the end of August 2017 increased by 1.9% year-on-year.
Rents, compared with immediately preceding leases, increased by 3.7% across all new leases, 2.0% across all renewal leases and 2.8% across all combined new and renewal leases for the December 2017 fiscal period (cumulative).
INV achieved a rent increase for 61.7% of contract renewals (December 2017 fiscal period cumulative), which is a significant increase of 22.6pt compared to 39.1% for the previous calendar year. The retention rate for existing tenants remained high at 83.1% for the December 2017 fiscal period (cumulative).
While the rent increase program increased rental revenues by 0.3% in August 2017 year-on-year, NOI2 decreased by 0.3% as expenses related to leasing activities have increased due to an increase in new lease contracts. However, NOI increased by a solid 0.4% for the December 2017 fiscal period (cumulative) compared to the same period in the previous year.
(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.
Performance
40 Hotel Properties1
August 2017 (A)
Same month of the previous year (B)
Difference (A-B)
YoY Change
Occupancy Rate2
92.7%
91.6%
+1.0pt
+1.1%
ADR (JPY)3
11,266
10,946
+319
+2.9%
RevPAR (JPY)4
10,441
10,024
+417
+4.2%
Gross Revenue (JPY million)
2,443
2,332
+111
+4.8%
# 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
91.9%
91.7%
+0.1pt
+0.2%
ADR (JPY)3
10,530
10,405
+125
+1.2%
RevPAR (JPY)4
9,674
9,544
+130
+1.4%
Gross Revenue (JPY million)
4,575
4,472
+103
+2.3%
# of Properties
40
40
―
―
70 Residential Properties7
August 2017 (A)
Same month of the previous year (B)
Difference (A-B)
YoY Change
Occupancy Rate
94.1%
95.5%
-1.4pt
-1.5%
Rent per Tsubo (JPY)
9,716
9,539
+177
+1.9%
# 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
94.3%
95.6%
-1.3pt
-1.3%
Rent per Tsubo (JPY)
9,703
9,503
+199
+2.1%
# of Properties
70
70
―
―
(Note 1) Based on 40 hotel properties; of the 49 hotel properties in our portfolio as of the end of August 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 performance includes the pre-acquisition data for the properties acquired in 2016 and 2017, 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 from July 2017 to August 2017 are stated. (Note 6) Figures from July 2016 to August 2016 are stated.
(Note 7) Based on 70 residential properties owned as of the end of August 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
Invincible Investment Corporation published this content on 21 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 21 September 2017 08:49:05 UTC.
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