February 24, 2023
For Immediate Release
Real Estate Investment Trust Securities Issuer
MORI TRUST Hotel Reit, Inc.
Representative: Nobuyuki Aizawa, Executive Director(Securities Code: 3478)
Asset Management Company
MORI TRUST Asset Management Co., Ltd.
Representative: Michio Yamamoto,President and Representative Director
Contact:
Nobuyuki Aizawa, Representative
Director, Chief Operating Officer(COO), and Head of Hotel REITManagement Division, and General
Manager, Strategic Management
Department, Hotel REIT Management
Division(TEL: +81-3-6435-7011)

Notice Concerning Revisions to Forecast of Management Status and Forecast of Money Delivered Due toMerger for Fiscal Period Ending February 2023
MORI TRUST Hotel Reit, Inc. (“MORI TRUST Hotel Reit”) resolved to undertake an absorption-type merger with March
1, 2023, as the effective date, whereby MORI TRUST Sogo Reit, Inc. (“MTR”) will be the surviving corporation and
MTH will be the dissolving corporation in the merger (the “Merger”). A merger agreement (the “Merger Agreement”)
was also executed as of November 22, 2022, as announced in “Notice Concerning Execution of the Merger Agreementby and between MORI TRUST Sogo Reit, Inc. and MORI TRUST Hotel Reit, Inc.” dated November 22, 2022. The
Merger Agreement was then approved at the 5th General Meeting of Unitholders of MTH held on January 31, 2023.
With the conclusion of the Merger Agreement, MORI TRUST Hotel Reit will revise the forecast of management status
for the fiscal period ending February 2023 (September 1, 2022 to February 28, 2023), which would be the final businessperiod for MORI TRUST Hotel Reit if the merger of MORI TRUST Hotel Reit becomes effective, and the forecast of themoney delivered due to the Merger that is scheduled to be paid as the money equivalent to cash distribution (distributionof profit) during the final business period, both of which were announced in “Notice Concerning Revisions to Forecastof Management Status and Announcement of Forecast of Money Delivered due to Merger for Fiscal Period Ending
February 2023” dated November 22, 2022, as follows.

Disclaimer: This document is an English translation of a press release for public announcement concerning revisions to forecast of management
status and announcement of forecast of money delivered due to merger for fiscal period ending February 2023, and has not been
prepared for the purpose of solicitation of investment.

1Details
1. Revisions to Management Status Forecast and Forecast of Money Delivered Due to Merger for Fiscal Period Ending
February 2023 (September 1, 2022 to February 28, 2023)
OperatingOperating

Ordinary

Revenue

IncomeIncomeNet Income

Money Delivered
Due to Merger per
Unitmillion yen

million yen

million yen

million yen

yen

1,703

897

672

671

1,342

1,730

930

704

703

1,407

27

32

32

32

65

1.6%

3.6%

4.8%

4.8%

4.8%

Previously
released forecast(A)
Revised forecast(B)
Change(B-A)
Percentage of
Change(Reference)
Fiscal period ending February 2023
Forecast number of investment units issued and outstanding at end of period: 500,000 units
Forecast net income per unit: 1,406 yen(Note 1) Under the assumption that the Merger will become effective, the forecast of management status for fiscal period ending
February 2023 represents the current figures calculated based on the assumptions stated in Attachment 1 “Assumptions
Underlying Forecast of Management Status and Money Delivered due to Merger for Fiscal Period Ending February 2023.”
Accordingly, the actual operating revenues, operating income, ordinary income, net income and the money delivered due tothe Merger per unit may vary as a result of differences between actual conditions and the assumptions due to developments
such as future additional acquisition or sale of real estate, etc., fluctuation in rent income as a result of changes in tenants orother factors, the occurrence of unforeseen repairs and maintenance and other changes in the management environment,
fluctuation in interest rates, and the issuance of new investment units. Consequently, the forecast is not a guarantee of theamount of the money delivered due to the Merger.
(Note 2) After the Merger, MTR, which is the company surviving the absorption-type merger, is scheduled to pay to MORI TRUSTHotel Reit’s unitholders (unitholders stated or registered in MORI TRUST Hotel Reit’s final unitholders’ registry on the
day before the effective date of the Merger (excluding MTR, MORI TRUST Hotel Reit and MORI TRUST Hotel Reit’s
unitholders who demand the purchase of investment units held by them based on the provisions of Article 149-3 of the Act
on Investment Trusts and Investment Corporations (Act No. 198 of 1951; as amended) (other than those who withdraw thedemand for purchase), the “Unitholders subject to allocation”) the money delivered due to the Merger that matches theamount of cash distribution during the final business period (the amount obtained by dividing the amount of distributableprofits of MORI TRUST Hotel Reit on the day before the effective date of the Merger by the number of investment units
remaining after deducting the number of investment units held by unitholders other than the unitholders subject toallocation from the total number of investment units issued and outstanding on the day before the effective date of the
Merger (rounded down to the nearest yen)) within a reasonable period following the effective date of the Merger as themoney equivalent to cash distribution (distribution of profit) for the final business period of MORI TRUST Hotel Reit
Disclaimer: This document is an English translation of a press release for public announcement concerning revisions to forecast of management
status and announcement of forecast of money delivered due to merger for fiscal period ending February 2023, and has not been
prepared for the purpose of solicitation of investment.

2which will end on the day before the effective date of the Merger. Therefore, the amount of money delivered due to theMerger will vary according to the exercise status of the right to demand the purchase of investment units. Moreover, theabove forecast figures are based on the assumption that the right to demand the purchase of investment units will not be
exercised as the exercise status has been left undetermined as of now.
(Note 3) The forecast may be revised in the event discrepancies exceeding a certain level from the forecast above are expected.
(Note 4) Figures are rounded down to the nearest specified unit.

(Reference)
Results for the fiscal period ended February 2022
Distributions per
Unit (excluding
distributions inexcess of earnings)

Distributions in
Excess ofEarnings
per Unit

million yen

yen

yen

530

1,061

－

OperatingOperating

OrdinaryNet

Revenue

IncomeIncomeIncomemillion yen

million yen

million yen

1,423

644

531

(Reference)
Results for the
fiscal period ended
February 2022
2. Reasons for the Revisions
On November 22, 2022, MORI TRUST Hotel Reit resolved to undertake an absorption-type merger with March 1,
2023, as the effective date, whereby MORI TRUST Sogo Reit, Inc. will be the surviving corporation and MTH will be
the dissolving corporation in the merger and concluded a merger agreement on the same date. Accordingly, MORI
TRUST Hotel Reit announced the revisions to the forecast of management status for the fiscal period ending February
2023 (September 1, 2022 to February 28, 2023) as well as the forecast of the money delivered due to the Merger thatis scheduled to be paid as the money equivalent to cash distribution (distribution of profit) during the final businessperiod (the “Previously Released Forecast”) in “Notice Concerning Revisions to Forecast of Management Status andAnnouncement of Forecast of Money Delivered due to Merger for Fiscal Period Ending February 2023” on the same
date.
MORI TRUST Hotel Reit will revise the forecast of management status for the fiscal period ending February 2023
(September 1, 2022 to February 28, 2023) and the forecast of the money delivered due to the Merger because it isexpected that there will be a difference from the Previously Released Forecast as the result of the upward revision inrents due to the actual results exceeding the forecast of operating status of hotels for each property at the time of theannouncement of the Previously Released Forecast in response to the recovering trend of hotel business with the startof nationwide travel discount program and the relaxation of border measures in October 2022, determination of thepartial amount of temporary expenses for the Merger, etc.
For the forecasts of the management status and distribution per unit of MTR, which is the company surviving theabsorption-type merger, please refer to “Notice of Forecasts of the Operating Results and Distributions for Fiscal Period
ending August 31, 2023 Following the Merger of MORI TRUST Sogo Reit, Inc. and MORI TRUST Hotel Reit, Inc.”
announced on November 22, 2022 by MTR and MORI TRUST Hotel Reit.
For the operating months of hotels of each property which serve as the base for calculating the rent MORI TRUSTHotel Reit will receive in the fiscal period ending February 2023 (“Rent calculation base month”) and the rent
Disclaimer: This document is an English translation of a press release for public announcement concerning revisions to forecast of management
status and announcement of forecast of money delivered due to merger for fiscal period ending February 2023, and has not been
prepared for the purpose of solicitation of investment.

3

calculation base month to be used when calculating the difference (shortfall) from the minimum annual guaranteed
rents to be paid in the fiscal period ending February 2023 (“Rent calculation base month for minimum guaranteed
rents”), please refer to (Reference) below.
Furthermore, for the relationship between each property’s Rent calculation base month and the rent that MORI
TRUST Hotel Reit will receive and details on the timing of compensating for the difference from the minimum
guaranteed rent, please refer to Attachment 2, the page 14 of “13th Fiscal Period Operating Results & Presentation(March 1, 2022 – August 31, 2022).”(Reference)
Rent calculation base month and Rent calculation base month for minimum guaranteed rents of each property for the
fiscal period ending February 2023 (September 1, 2022 to February 28, 2023)
Property nameRent type(Note)

base month

Variable rent
(Rent varies monthly)
With minimum annual guaranteed rent
Variable rent
(Rent varies each fiscal period*)

Shangri-La

Hilton Odawara

Rent calculation*The monthly amount is fixed during a fiscal period

Variable rent
(Rent varies monthly)
With minimum annual guaranteed rent
Variable rent
(Rent varies monthly)
With minimum annual guaranteed rent

Courtyard
Tokyo
Courtyard
Shin-Osaka
Sunroute

Fixed rent

Rent calculation basemonth for minimum
guaranteed rents

May 2022

December 2021

to October 2022

to November 2022

July 2021
to June 2022-

June 2022

July 2021

to November 2022

to June 2022

June 2022

July 2021

to November 2022

to June 2022--

(Note) Property names may be abbreviated as below:
Property name

Abbreviation

Shangri-La Tokyo

Shangri-La

Hilton Odawara Resort & Spa

Hilton Odawara

Courtyard by Marriott Tokyo Station

Courtyard Tokyo

Courtyard by Marriott Shin-Osaka Station

Courtyard Shin-Osaka

Hotel Sunroute Plaza Shinjuku

Sunroute* MORI TRUST Hotel Reit’s website: http://www.mt-hotelreit.jp/en/

Disclaimer: This document is an English translation of a press release for public announcement concerning revisions to forecast of management
status and announcement of forecast of money delivered due to merger for fiscal period ending February 2023, and has not been
prepared for the purpose of solicitation of investment.

4

[Attachment 1]

Assumptions Underlying Forecast of Management Status and Money Delivered due to Merger for
Fiscal Period Ending February 2023
Item
Calculation

Assumptions-

PeriodFiscal period ending February 2023 (14th fiscal period): (from September 1, 2022 toFebruary 28, 2023) (181 days)-

The 5 properties owned by MORI TRUST Hotel Reit as of today.

-

The management status forecast is based on the assumption that there will be no change in
the assets under management (acquisition of new property or disposal of portfolio

Assets underproperty, etc.) other than the above through to the end of the fiscal period ending February

Management

2023.
-

In actual practice, a change may arise due to the acquisition of new property or the
disposition of portfolio property, etc.

-

Rental revenues, which are calculated on the basis of the lease agreements currently inforce, taking into account such factors as market trends and property competitiveness, is
expected to be 1,730 million yen in the fiscal period ending February 2023.

-

Rent included in rental revenues are calculated based on the following assumptions.
Variable rent is calculated mainly on the basis of management results in the previous yearby the method set out in the lease agreement of each property, taking into consideration
factors for fluctuation such as recent hotel market conditions.
[Shangri-La Tokyo]
Variable rent in the fiscal period ending February 2023 (14th fiscal period): 562 million yen
The variable rent for each month is amount calculated by multiplying the rent received

Operatingrevenues

from subtenant by tenant (hereinafter referred to as “subletting tenant rent” (Note)) for amonth three months before the month in question by 97%.
(Note) “Subletting tenant rent” is calculated by multiplying total revenue from the subtenant’s hotel
operations by a certain percentage. The percentage is not disclosed as the consent of thesubtenant has not been obtained.

(Reference) Minimum annual guaranteed rent (from April each year to March thefollowing year (Note)): 882,700,000 yen(Note)

If the total amount of subletting tenant rent for the period from January to December eachyear is less than 910,000,000 yen (including if subletting tenant rent is not paid due tovacation by the subletting tenant, etc.), rent is calculated on the basis that the subletting
tenant rent for the period is 910,000,000 yen (910,000,000 yen × 97% = 882,700,000 yen),and the difference (shortfall) between this amount and the total amount of rent from April
to March the following year is paid, together with the rent for March the following year, nolater than the last day of February the following year.

Disclaimer: This document is an English translation of a press release for public announcement concerning revisions to forecast of management
status and announcement of forecast of money delivered due to merger for fiscal period ending February 2023, and has not been
prepared for the purpose of solicitation of investment.

5

Item

Assumptions[Hilton Odawara Resort & Spa]
Variable rent in the fiscal period ending February 2023 (14th fiscal period): 187 million yen(Includes additional revenues of 2 million yen other than rent revenue which MORI
TRUST Hotel Reit receives from the lessee of Hilton Odawara Resort & Spa.)
The monthly rent for March to August each year is the amount (not less than 0 yen)equivalent to one-twelfth of the amount obtained when the sum total of the hotel’s baseprofit for the 12 months from January to December in the previous year is multiplied by
95%.
The monthly rent for September each year to February in the following year is the amount(not less than 0 yen) equivalent to one-twelfth of the amount obtained when the sum totalof the hotel’s base profit for July in the previous year to June in the year in question ismultiplied by 95%.
(Note) “Base profit” refers to the amount obtained by the following formula.
Base profit = The profit that the lessee earns from operating the hotel − The expenses thatthe lessee incurs from operating the hotel (the lessee’s insurance expenses, etc.).

[Courtyard by Marriott Tokyo Station]
Variable rent in the fiscal period ending February 2023 (14th fiscal period): 169 million yen(Includes 21 million yen, the difference from the minimum annual guaranteed rent.)
Operating

The variable rent for each month is amount (not less than 0 yen) calculated by multiplying

revenues

adjusted operating income by facility (Note) of the hotel for a month three months before
the month in question by 90%.
(Note) “Adjusted operating income by facility” refers to sales from hotel operations less hotel
operating expenses by department, unallocated operating expenses, fixed operating costs,
and operating expenses of hotel operator allocated to head office (only expenses related tothe hotel).

(Reference) Minimum annual guaranteed rent (from October each year to September thefollowing year (Note 1): 310,000,000 yen(Note 1) If the total amount of rent (which is the rent for the entire property including the potion
attributable to the quasi-co-owner MORI TRUST CO., LTD. The same applies hereinafter
to the property.) for the period from October each year to September the following year isless than 310,000,000 yen, rent for the period in question is taken as 310,000,000 yen, andthe difference (shortfall) between this amount and the total amount of rent from October to
September the following year is paid, together with the rent for September the following
year, no later than the last day of August the following year. The difference from theminimum guaranteed rent includes the portion attributable to the quasi-co-owner MORI
TRUST CO., LTD. Only 93.5%, which is the quasi co-ownership interest in the property,of the entire difference from the minimum guaranteed rent is recorded as operating incomeof MORI TRUST Hotel Reit.

Disclaimer: This document is an English translation of a press release for public announcement concerning revisions to forecast of management
status and announcement of forecast of money delivered due to merger for fiscal period ending February 2023, and has not been
prepared for the purpose of solicitation of investment.

6

Item

Assumptions(Note 2) There was a payment of difference (shortfall) between the minimum annual guaranteed
rent and the total amount of rent at the end of August 2022 since the total amount of rent
for the period from October 2021 to September 2022 did not reach 310,000,000 yen, andthere will be operating revenues of 21 million yen belonging to the fiscal period ending
February 2023.

[Courtyard by Marriott Shin-Osaka Station]
Variable rent in the fiscal period ending February 2023 (14th fiscal period): 157 million yen(Includes 34 million yen, the difference from the minimum annual guaranteed rent.)
The variable rent for each month is amount (not less than 0 yen) calculated by multiplying
adjusted operating income by facility (Note) of the hotel for a month three months before
the month in question by 90%.
(Note) “Adjusted operating income by facility” refers to sales from hotel operations less hotel
operating expenses by department, unallocated operating expenses, fixed operating costs,
and operating expenses of hotel operator allocated to head office (only expenses related tothe hotel). Only sales and expenses relating to the accommodation of general users of thehotel are included in the calculation of adjusted operating income by facility, in principle.
Sales and expenses relating to the accommodation of guests who are members of Laforet

Operating
Revenues

Club of the tenant, MORI TRUST CO., LTD. food and beverages, parking facilities, etc. are
not included.

(Reference) Minimum annual guaranteed rent (from October each year to September thefollowing year (Note 1): 460,000,000 yen(Note 1) If the total amount of rent for the period from October each year to September thefollowing year is less than 460,000,000 yen, rent for the period in question is taken as
460,000,000 yen, and the difference (shortfall) between this amount and the total amountof rent from October to September the following year is paid, together with the rent for
September the following year, no later than the last day of August the following year.
(Note 2) There was a payment of difference (shortfall) between the minimum annual guaranteed
rent and the total amount of rent at the end of August 2022 since the total amount of rent
for the period from October 2021 to September 2022 did not reach 460,000,000 yen, andthere will be operating revenues of 34 million yen belonging to the fiscal period ending
February 2023.

[Hotel Sunroute Plaza Shinjuku]
Fixed rent in the fiscal period ending February 2023 (14th fiscal period): 653 million yen(Includes additional revenues of 1 million yen other than rent revenue which MORI
TRUST Hotel Reit receives from the lessee of Hotel Sunroute Plaza Shinjuku)(Note) “Fixed rent” means rent that is paid in the same amount every month.

Disclaimer: This document is an English translation of a press release for public announcement concerning revisions to forecast of management
status and announcement of forecast of money delivered due to merger for fiscal period ending February 2023, and has not been
prepared for the purpose of solicitation of investment.

7

Item

Assumptions(Reference)

Annual fixed rent (rent revenue which MORI TRUST Hotel Reit receives

from the lessee of Hotel Sunroute Plaza Shinjuku): 1,304,673,360 yen
Operating
Revenues-

Operating revenues are calculated based on the assumption that there will be no delinquentor unpaid rent by the lessor, and that there will be no grace period for the payment of rent to
the lessor or reduction of rent, etc. associated with the spread of the COVID-19 infection.

-

Of expenses related to property rental business, which constitute a major component ofoperating expenses, expenses other than depreciation, are calculated on the basis ofhistorical data, taking into consideration factors causing fluctuations in expenses. It is
expected to be 298 million yen in the fiscal period ending February 2023.

-

Property tax and city planning tax, etc. recognized as expenses in the fiscal year ending
February 2023 are expected to be 281 million yen.

Operating-expenses

Building repairs and maintenance expenses are expected to be 9 million yen in the fiscal
year ending February 2023. However, factors such as repairs possibly arising fromunforeseeable causes, the variation in the amount depending on the fiscal year generally
being large and not being an amount that arises periodically may result in repair expenses
differing materially from the forecast amount.

-

Depreciation and amortization, which is calculated using the straight-line method byincluding incidental expenses, etc., is assumed to be 371 million yen in the fiscal period
ending February 2023.

Non-operating
expenses-

Interest expenses are expected to be 126 million yen in the fiscal period ending February
2023.

-

Temporary expenses for the Merger are expected to be 99 million yen.

-

MORI TRUST Hotel Reit’s outstanding balance of interest-bearing liabilities as of today,
is 53,975 million yen.

Loans

It is assumed that the outstanding balance of interest-bearing liabilities will be 53,975
million yen at the end of the fiscal period ending February 2023.

-

LTV is expected to be around 49.1% at the end of the fiscal period ending February 2023.

-

The following formula is used in the calculation of LTV, and LTV is rounded down to thenearest first decimal place.
LTV = Total interest-bearing liabilities ÷ Total assets × 100-

The assumption is that there will be no change in the number of investment units due toissuance of new investment units, etc. through to the end of the fiscal period ending

Investment
units

February 2023.
-

The money delivered due to the Merger per unit is calculated on the basis of the estimatednumber of investment units issued and outstanding at the end of the fiscal period ending
February 2023, which is 500,000 units.

Disclaimer: This document is an English translation of a press release for public announcement concerning revisions to forecast of management
status and announcement of forecast of money delivered due to merger for fiscal period ending February 2023, and has not been
prepared for the purpose of solicitation of investment.

8

Item

Assumptions-

The money delivered due to the Merger (the money delivered due to the Merger per unit) isscheduled to be paid as the money equivalent to cash distribution (distribution of profit)
during the fiscal period ending February 2023, which would be the final business period

Money delivered

for MORI TRUST Hotel Reit, and calculated based on the assumption of the policy fordue to merger

cash distribution set forth in the Certificate of Incorporation of MORI TRUST Hotel Reit.

per unit-

The money delivered due to the Merger per unit may vary due to various factors, including
the exercise status of the right to demand the purchase of investment units pertaining to theMerger, changes in assets under management, fluctuation in rent income accompanying
changes in tenants and other events, and the incurrence of unexpected repairs.
-

The assumption is that there will be no revision of laws and regulations, tax systems,
accounting standards, the listing regulations of the Tokyo Stock Exchange, etc., or rules of

Othersthe Investment Trusts Association, Japan, etc. that will impact the forecast figures above.
-

The assumption is that there will be no unforeseen serious change in general economic
trends and real estate market conditions, etc.

Disclaimer: This document is an English translation of a press release for public announcement concerning revisions to forecast of management
status and announcement of forecast of money delivered due to merger for fiscal period ending February 2023, and has not been
prepared for the purpose of solicitation of investment.

9[Attachment 2] the page 14 of “13th Fiscal Period Operating Results & Presentation (March 1, 2022– August 31, 2022)”

14th FP Results Forecast (1-Sep-2022 to 28-Feb-2023)

Management Status Forecast for Fiscal Period Ending February 28, 2023 (from September 1, 2022, to February
28, 2023) has yet to be determined at this point, because of the effect of the worldwide spread of COVID-19.



The forecast is scheduled to be announced in December 2022.

【Reference】 Timing of compensating for the difference from the minimum guaranteed rent
2021
1 2

Fiscal period
Shangri-La

Base month for rent
(Linked to hotel total revenue)

3

4

5

6

7

8

11th FP2022
9 10 11 12 1 2

12th FP

5

6

7

8

2023
9 10 11 12 1 2

13th FP

14th FP

3

4

5

6

7

8

2024
9 10 11 12 1 2

15th FP

Recorded difference inguaranteed minimum rent
(11/12-month equivalent)3

16th FP

Recorded difference(1/12-month equivalent)

Recorded difference inguaranteed minimum rent
(11/12-month equivalent)

Recorded difference(1/12-month equivalent)▼ ▼▼ ▼(i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi)
Timing of receiving difference inguaranteed minimum rent

Timing of receiving difference inguaranteed minimum rent

Criteria for applying minimum

Total rent for 12 months: 882,700,000 yen

guaranteed rent

CY Tokyo (Note 1)

Base month for rent
(Linked to hotel profit)(93.5% quasi-co-ownership interest)(i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi)
Recorded difference inguaranteed minimum rent
(11/12-month equivalent)

Recorded difference(1/12-month equivalent)▼ ▼Rent *variable (monthly)

Recorded difference inguaranteed minimum rent
(11/12-month equivalent)

Recorded difference(1/12-month equivalent)▼ ▼(i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi)
Timing of receiving difference inguaranteed minimum rent

Timing of receiving difference inguaranteed minimum rent

Criteria for applying minimum
guaranteed rent

Total rent for 12 months: 310,000,000 yen(Note 2)

Base month for rent
(Linked to hotel profit)(i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi)
Recorded difference inguaranteed minimum rent
(11/12-month equivalent)

Rent *variable (monthly)

Recorded difference(1/12-month equivalent)

Recorded difference inguaranteed minimum rent
(11/12-month equivalent)

Recorded difference(1/12-month equivalent)▼ ▼▼ ▼(i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi)
Timing of receiving difference inguaranteed minimum rent

Timing of receiving difference inguaranteed minimum rent

Criteria for applying minimum
guaranteed rent

Hilton Odawara

4(i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii)(iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii)(iv) (v) (vi)Rent *variable (monthly)

CY Shin-Osaka

3

Total rent for 12 months: 460,000,000 yen

Base period for(ii)

calculation of rent(i)(Linked to hotel profit)(50% quasi-co-ownership interest)*Rent varies each fiscal period

(iv)
(iii)

Rent (The monthly amount is fixed during a fiscal period.) (i) (i) (i) (i) (i) (i) (ii) (ii) (ii) (ii) (ii) (ii) (iii) (iii)(iii) (iii) (iii)(iii) (iv) (iv)(iv) (iv)(iv) (iv)

Sunroute

Rent

Fixed

Fixed

Fixed

Fixed

Fixed

Fixed

(Note 1) MORI TRUST Hotel Reit implemented the transfer of the 1% quasi-co-ownership of Courtyard Tokyo to MORI TRUST CO., LTD. (“MORI TRUST”) on August 31, 2022 (the “Transfer”).
(Note 2) The amount of compensation under the minimum rent guarantee scheme is calculated by subtracting the sum of the rent for the period of 12 months from October each year to September the following year(including the potion attributable to the quasi-co-owner MORI TRUST) from the minimum guaranteed rent of 310,000,000 yen for such period in accordance with the provisions of the lease agreement (thedifference calculated by such a calculation method is referred to as the “Difference from the minimum guaranteed rent”), and the Difference from the minimum guaranteed rent recorded on or after September 1,
2022 includes the portion attributable to the quasi-co-owner MORI TRUST. Only 93.5%, which is the quasi co-ownership interest in the property, of the entire Difference from the minimum guaranteed rent recorded
on or after September 1, 2022 is recorded as operating income of MORI TRUST Hotel Reit.

14