Supplementary Explanation Materials
on Today’s Press Release
May 27, 2024

Securities Code: 34720Revisions to Results and Distribution Forecasts
 The Company revises its forecasts for results and distribution per unit for fiscal periods ending May andNovember 2024.
 The revisions were mainly due to a decrease in the debt cost from the previous forecasts resulting fromrefinancing in February and May 2024.

Fiscal period

Fiscal period
ending May
31, 2024(16th fiscalperiod)

Distribution per unit
(including distribution in excess of earnings)
Previousforecast

1,490 yen

Fiscal periodending
November30, 2024
1,672 yen
(17th fiscalperiod)

Revisedforecast

1,568 yen

1,857 yen

(Versus previousforecast)+5.2%+78 yen+11.1%+185 yen

Main factors in the difference from the previous forecast
Difference in profit between the previous and revised forecasts+18 million yen■ Decrease in debt costs mainly due to refinancing+10 million yen
Reductioninaccommodationleasing
expenses,etc.
■+3 million yen■ Property tax reduction due to a change in the taxable value+2 million yen+3 million yen■ Others
Difference in profit between the previous and revised forecasts+43 million yen■ Decrease in debt costs mainly due to refinancing+44 million yen
Propertytax
reductionduetoachangeinthetaxable value■+4 million yen■ Less fixed rent reductions for Ise-shima and Kinugawa
Kanko due to shortened periods of renovations to upgrade
them to premium hotels+4 million yen■ Expected variable rent for accommodation for leisure-10 million yen* The previous forecasts are those included in the summary of results for the fiscal period ended November 30, 2023, which was published on January 22, 2024.

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New Borrowings
 The Company will borrow 4,971 million yen on May 31, 2024, to repay existing borrowings.
 New financial institutions lending to the Company: Aozora Bank (1,000 million yen) and Resona Bank (500 millionyen)
 The Company aims to lower funding costs and broaden the formation of lenders to increase funding, thereby
speeding up external growth and consistently increasing distribution per unit.
(Unit: million yen)
Before the borrowings
Name of financial institution

OutstandingborrowingsRatio

Borrowings
to be repaid

The borrowings
Short termLong term

Total

Increase ordecrease

After the borrowings
Outstanding
borrowings

Ratio

Sumitomo Mitsui Banking Corporation

6,04347.4%▲ 1,395+1,343+1,343▲515,991

47.0%

The Tokyo Star Bank, Limited

2,651

20.8%

▲ 1,201+750+750

▲451

2,200

17.3%

San ju San Bank, Ltd.

1,39410.9%▲ 227+227+2270

1,394

10.9%

00.0%

+1,000+1,000+1,000

1,000

7.9%

1,416

11.1%

+750

▲666

750

5.9%

500

3.9%

0500

3.9%

Resona Bank, Ltd. (New lender)

00.0%The Ogaki Kyoritsu Bank, Ltd.

4003.1%▲ 400Fukoku Mutual Life Insurance Company

3302.6%▲ 330

12,736100.0%▲ 4,971

Aozora Bank, Ltd. (New lender)
Sumitomo Mitsui Trust Bank, Ltd.
Kiraboshi Bank, Ltd.

Total

▲ 1,416+750+750+500+500+500

500

3.9%

+400+4000

400

3.1%

▲330

00.0%

012,736

100.0%+4,221+4,971

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Guarantee of Borrowings by APA Holdings
 The Company will receive a guarantee of borrowings from APA Holdings Co., Ltd., which invests in the Companyand has established good relationships with major financial institutions, to enhance its creditworthiness intransactions with financial institutions.
 When the Company receives the debt guarantee, it will remove all security interests in its assets. The Company’s
borrowings will all become unsecured.

APA Holdings Co., Ltd.

Holding a 100% stake

Debt guarantees

Holding investment units

Financial institutions
APA Investment
Management Co., Ltd.

Asset managementagreement

Financialtransactions

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Future Trends in Distributions (Estimates)
 Estimated distribution per unit for the fiscal period ending May 31, 2025: The factors based on the assumptions
below are added to the projected distribution per unit for the fiscal period ending November 30, 2024.
[Assumption]- The temporary fixed rent reduction at Ise-shima and Kinugawa Kanko will come to an end. +143 yen
A temporary rent reduction of 33.7 million yen (143 yen per unit), which is factored into the forecast for the fiscal period ending November 30,2024, will not materialize in the fiscal period ending May 31, 2025.
- The secondary rent will be reduced. -20 yen
The secondary rent will be reduced by 4.8 million yen (20 yen per unit) due to a decrease in property tax resulting from a revision to the taxable
value factored into the forecast for the fiscal period ending November 30, 2024.
Fiscal period ending
May 31, 2024
(16th fiscal period)
Forecast

Fiscal period ending
November 30, 2024
(17th fiscal period)
Forecast

Fiscal period ending
May 31, 2025
(18th fiscal period)
Estimate+123 yen

1,568 yen

1,857 yen

1,980 yen

Revised forecast

Revised forecast

Estimate

4Disclaimer
The purpose of these materials is to provide information and not to offer, solicit the purchase of or sell certain products. Please contact yoursecurities company to inquire about the purchase of the investment units of Nippon Hotel & Residential Investment Corporation (the"Investment Corporation").
Unless otherwise stated, the information provided in these materials is not required by the Financial Instruments and Exchange Act, the Act on
Investment Trusts and Investment Corporations, related government ordinances, cabinet orders, regulations or the listing rules of the Tokyo
Stock Exchange or other related regulations. In addition, the information in these materials is not identical to the information stated indisclosure documents or asset management reports prepared in accordance with such laws, ordinances, rules, etc.
The information in these materials contains forward-looking statements based on certain conditions and judgments in light of the information
currently available to the Investment Corporation, and includes unknown risks and uncertainties. Therefore, the forward-looking statements do
not guarantee the future performance of the Investment Corporation and actual results may differ materially.
Although the Investment Corporation takes all possible measures to ensure the accuracy of the information provided in these materials, itmakes no guarantee as to the accuracy or completeness of the information. Please note that the content may be subject to revision orcancellation without notice.
The Investment Corporation prohibits duplication, diversion or other unauthorized use of the information provided in these materials without
prior approval.

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