Ichigo Preserves and Improves Real Estate

September 14, 2016

Financial Report for the July 2016 Fiscal Period
Ichigo Hotel REIT Investment Corporation (Tokyo Stock Exchange, 3463)
Representative: Osamu Miyashita, Executive Director
www.ichigo-hotel.co.jp/english
Ichigo Investment Advisors Co., Ltd. (Ichigo Hotel REIT Asset Management Company)
Representative: Wataru Orii, President
Inquiries: Masanori Kubota, Statutory Executive Officer (Finance, Accounting)Telephone: +81-3-3502-4892
Submission of Financial Report (Yuka Shoken Hokokusho): October 27, 2016 (expected)
Dividend Payment: October 21, 2016 (expected)
Supplemental Material to Financial and Business Results: Yes (Corporate Presentation)
Financial and Business Results Briefing: Yes (for institutional investors and analysts)
1. Financial Results for the July 2016 Fiscal Period (February 1, 2016 - July 31, 2016)(1) Earnings(million yen; period-on-period change)

July 2016

Operating
Revenue
774

January 2016

197

+291.5%

Operating
Profit472―

102

Change+360.2%

Recurring
Profit392―

66

Change+492.4%

Net
Income391+499.5%―65―

ChangeChange2.7%

Ratio of
Recurring Profit
to Total Assets
1.7%

Ratio of
Recurring Profit
to Operating Revenue
50.6%

0.5%

0.3%

33.4%

Net Income per Share(yen)

Ratio of Net Income
to Equity

July 2016

2,825

January 2016

1,352

(Note 1) Ichigo Hotel REIT’s January 2016 fiscal period ran from the day the REIT was founded on
July 22, 2015 to January 31, 2016 (194 days). The REIT’s actual operating timeframe
during this period was November 30, 2015 to January 31, 2016 (63 days).
(Note 2) Net Income per Share is based on the average number of outstanding shares (48,260
shares). Net Income per Share during the actual operating timeframe was 479 yen, which isbased on the average number of outstanding shares during that timeframe (136,230 shares).
(Note 3) Ratio of Net Income to Equity and Ratio of Recurring Profit to Total Assets are calculatedusing weighted averages of Equity and Total Assets with November 30, 2015 as the
beginning of the period.
(Note 4) Change in Operating Revenue, Operating Profit, Recurring Profit, and Net Income aboverefers to period-on-period change. However, since the January 2016 fiscal period is the
REIT’s first, the period-on-period change is not applicable.

1(2) Dividends
Dividend per
Share

Total
Dividends

Dividend per
Share in Excessof Earnings

Total Dividends
in Excess of
Earnings

PayoutRatio

July 2016

(yen)
2,825

(million yen)
391

(yen)
0

(million yen)
0

(%)
99.9

Ratio of
Dividends
to NetAssets(%)
2.7

January 2016

471

65

0

0

99.9

0.5

(Note) The January 2016 payout ratio reflects a new share issuance during the period and is
calculated as follows: Payout Ratio = Total Dividends / Net Income x 100(3) Assets and Equity
Total Assets(million yen)

Net Assets(million yen)

Equity Ratio(%)

Net Assets per Share(yen)

July 2016

23,486

14,53761.9

104,962January 2016

23,071

14,211

61.6

102,608

Cash Flow fromOperating Activities

Cash Flow from
Investment Activities

Cash Flow from
Financing Activities

July 2016(million yen)
1,091

(million yen)-61

(million yen)
-65

Cash and Cash
Equivalents at End of
the Period(million yen)
2,490

January 2016

-571

-20,476

22,575

1,526(4) Cash Flow

2. Earnings Forecasts for the January 2017 Fiscal Period (August 1, 2016 to January 31, 2017) andthe July 2017 Fiscal Period (February 1, 2017 to July 31, 2017)(million yen; period-on-period change)

January 2017
July 2017

January 2017
July 2017

Operating
Revenue
1,547
1,638

Change99.7%
5.9%

Operating
Profit933
909

Change97.4%-2.6%

Recurring
Profit759
732

Change
93.7%
-3.7%

Net
Income758
731

Change93.9%-3.7%

Dividend per Share(yen)
Dividend per Share in Excess of Earnings

2,917
2,838

0
0

(Reference) The forecast Net Income per Share for January 2017 is 2,946 yen and for July 2017 is
2,838 yen. Due to seasonal effects, the January fiscal period generally generates higher
profitability than the July fiscal period.
(Note)The forecast assumes 260,100 total shares outstanding (138,500 shares outstanding at the endof the July 2016 fiscal period, plus 115,800 shares issued via public offering and a maximumof 5,800 shares through an underwriter new share allotment conducted and completed inAugust/September 2016).

2

3. Other(1) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective
Restatements(i) Changes Accompanying Amendments to Accounting Standards: None(ii) Changes Not Listed in (i):None(iii) Changes in Accounting Estimates:None(iv) Retrospective Restatements:
None(2) Number of Shares Issued and Outstanding(i) The number of shares issued and outstanding (including treasury shares) was 138,500
shares as of July 31, 2016.
(ii) There were no treasury shares as of July 31, 2016.
Completion Status of Auditing ProceduresThis document is not subject to the auditing requirements set forth in the Financial Instruments
and Exchange Law of Japan. The auditing procedures in accordance with those requirements havethus not been completed as of the date of the publication of this document.
Appropriate Use of Performance Forecasts and Other Matters of Special Note
The forecasts presented above are current figures based on certain preconditions. Accordingly, theactual operating revenue, operating profit, recurring profit, net income, dividend per share, anddividend per share in excess of earnings may vary due to changes in circumstances. Moreover,these forecasts should not be construed as a guarantee of such performance or results.
For details on preconditions, please refer to the “Preconditions for January 2017 Fiscal Period
Earnings Forecast” on page 4 and “Preconditions for July 2017 Fiscal Period Earnings Forecast”
on page 6.
This English version is a translation of the original Japanese document and is provided solely for
informational purposes. Should there be any discrepancies between this translation and theJapanese original, the latter shall prevail.

3Preconditions for January 2017 Fiscal Period Earnings Forecast
Item

Preconditions

Period• August 1, 2016 – January 31, 2017 (184 days)

Portfolio Assets• 19 assets in total. The forecast assumes there will be no additional acquisitions or sales
through January 2017.
• The number of assets may change due to acquisitions or sales.
Within operating revenue, rental income is forecast based on current lease contracts taking
into consideration such factors as tenant trends and market conditions.1
Forecast Operating Performance
January 2017 Fiscal Period
Occupancy2

89.1%

ADR3

8,339 yen

1

The forecast rental income assumes tenants will fully pay their contractual rents without
delays or default.
2
Occupancy is calculated with the following formula:
Occupancy = Total number of guest rooms occupied during the period / (total number ofguest rooms x number of days hotel was in operation during the period)
3 ADR or Average Daily Rate is calculated with the following formula:
ADR = Total sales from accommodation (excluding restaurant charges and other service
fees) / number of guest rooms occupied during the period
Details of January 2017 Rental Income(million yen)
Operating
Revenue

Hotel Name
Smile Hotel Kyoto Shijo
Hotel Vista Premio Kyoto
Nest Hotel Sapporo Ekimae
Chisun Inn Osaka Hommachi
Comfort Hotel Hamamatsu
Nest Hotel Sapporo Odori
Valie Hotel Tenjin
Nest Hotel Osaka Shinsaibashi
Comfort Hotel Central International
Airport
Smile Hotel Tokyo Asagaya
Nest Hotel Naha
Smile Hotel Asakusa
Nest Hotel Matsuyama
Comfort Hotel Okayama
Comfort Hotel Kushiro
Comfort Hotel Suzuka

4

Fixed Rent/
Minimum
Variable Rent
Guaranteed
Rent
34
151
75
15
53
32
0
36
0
55
49
23
35
24
144
57

Total
186
90
86
36
55
72
60
202

138

0

138

25
55
14
31
41
16
14

59
66
34
31
0
0
0

85
121
48
62
41
16
14

Other1(Hotel Wing International
Nagoya, Hotel Suave Kobe Asuta, andHotel Livemax Nihombashi-Hakozaki)
Retail2 (Hotel Vista Premio Kyoto,
Chisun Inn Osaka Hommachi, andSmile Hotel Tokyo Asagaya)
Total

146

19

166

34

0

34

858

663

1,521

1

Figures for Hotel Wing International Nagoya, Hotel Suave Kobe Asuta, and Hotel
Livemax Nihombashi-Hakozaki are included in “Other” because the hotel operators did
not provide consent to disclose hotel-specific data.
2
Figures for retail tenants at Hotel Vista Premio Kyoto, Chisun Inn Osaka Hommachi,
and Smile Hotel Tokyo Asagaya are included in “Retail.”

OperatingExpenses• Depreciation: 268 million yen. Depreciation has been calculated using the straight-line
method.
• Property and city planning taxes: 48 million yen.
• Building maintenance and repair expenses are based on what Ichigo Investment Advisors
Co., Ltd., the asset management company of Ichigo Hotel REIT, estimates will benecessary for each asset during the period. However, actual expenses for the period
could differ significantly from these forecast amounts for reasons including thevariability of maintenance and repair expenses, one-time costs due to unexpectedbuilding damage, etc.
• Rental expenses, Ichigo Hotel REIT’s principal operating expense (other thandepreciation, see above), are calculated based on historical data adjusted for anticipatedexpense variations.
• Actual operating expenses may differ significantly from these assumptions due tounforeseeable factors.

Non-Operating
Expenses• Interest expenses and other borrowing-related expenses: 147 million yen.
• Amortization of expenses related to the establishment of Ichigo Hotel REIT and to newshare issuance: 26 million yen.

Borrowings• Total borrowings: 19,500 million yen as of January 2017

Number of Shares• 260,100 shares. The forecast assumes there will be no additional shares issued during
this period.

Dividend per
Share• The dividend forecast assumes that distributions will comply with the dividend
distribution policy stipulated in Ichigo Hotel REIT’s Articles of Incorporation.
• The dividend per share is subject to change due to factors such as sales of portfolio
assets, changes in rental income associated with tenant turnover, the occurrence of
unexpected maintenance and repair costs, and fluctuations in interest rates.

Dividend in
Excess of Earnings
per Share• Ichigo Hotel REIT does not plan on making any dividend distribution in excess ofearnings per share or retained earnings.

Other• This forecast assumes that there are no material revisions to laws and regulations, the tax
system, accounting standards, listing rules of the Tokyo Stock Exchange, and rules of
the Investment Trusts Association, Japan, and no material changes in the state of theeconomy and real estate market conditions.

5Preconditions for July 2017 Fiscal Period Earnings Forecast
Item

Preconditions

Period• February 1, 2017 – July 31, 2017 (181 days)

Portfolio Assets• 19 assets in total. The forecast assumes there will be no additional acquisitions orsales through July 2017.
• The number of assets may change due to acquisitions or sales.
Within operating revenue, rental income is forecast based on current lease contracts
taking into consideration such factors as tenant trends and market conditions.1
Forecast Operating Performance
July 2017 Fiscal Period
Occupancy2

89.1%

ADR3

8,041 yen

1 The forecast rental income assumes tenants will fully pay their contractual rents

without delays or default.
2 Occupancy is calculated with the following formula:

Occupancy = Total number of guest rooms occupied during the period / (total
number of guest rooms x number of days hotel was in operation during the period)
3 ADR or Average Daily Rate is calculated with the following formula:
ADR = Total sales from accommodation (excluding restaurant charges and otherservice fees) / number of guest rooms occupied during the period
Details of July 2017 Rental Income(million yen)
Operating Revenue

Hotel Name
Smile Hotel Kyoto Shijo
Hotel Vista Premio Kyoto
Nest Hotel Sapporo Ekimae
Chisun Inn Osaka Hommachi
Comfort Hotel Hamamatsu
Nest Hotel Sapporo Odori
Valie Hotel Tenjin
Nest Hotel Osaka Shinsaibashi
Comfort Hotel Central International
Airport
Smile Hotel Tokyo Asagaya
Nest Hotel Naha
Smile Hotel Asakusa
Nest Hotel Matsuyama
Comfort Hotel Okayama
Comfort Hotel Kushiro
Comfort Hotel Suzuka

6

Fixed Rent/
Minimum
Variable Rent
Guaranteed
Rent
30
150
75
0
68
31
39
35
0
55
56
23
42
21
145
64

Total
181
75
99
74
55
80
64
210

151

0

151

30
41
15
35
45
18
15

63
69
37
43
0
0
0

93
111
53
79
45
18
15

Other1(Hotel Wing International
Nagoya, Hotel Suave Kobe Asuta,
150
21
171
and Hotel Livemax NihombashiHakozaki)
Retail2 (Hotel Vista Premio Kyoto,
Chisun Inn Osaka Hommachi, and32
032
Smile Hotel Tokyo Asagaya)
Total
873
738
1,612
1
Figures for Hotel Wing International Nagoya, Hotel Suave Kobe Asuta, and Hotel
Livemax Nihombashi-Hakozaki are included in “Other” because the hotel
operators did not provide consent to disclose hotel-specific data.
2
Figures for retail tenants at Hotel Vista Premio Kyoto, Chisun Inn Osaka
Hommachi, and Smile Hotel Tokyo Asagaya are included in “Retail.”

Operating Expenses• Depreciation: 280 million yen. Depreciation has been calculated using the straightline method.
• Property and city planning taxes: 98 million yen.
• Building maintenance and repair expenses are based on what Ichigo Investment
Advisors Co., Ltd., the asset management company of Ichigo Hotel REIT, estimates
will be necessary for each asset during the period. However, actual expenses for theperiod could differ significantly from these forecast amounts for reasons including
the variability of maintenance and repair expenses, one-time costs due to
unexpected building damage, etc.
• Rental expenses, Ichigo Hotel REIT’s principal operating expense (other thandepreciation, see above), are calculated based on historical data adjusted for
anticipated expense variations.
• Actual operating expenses may differ significantly from these assumptions due tounforeseeable factors.

Non-Operating
Expenses• Interest expenses and other borrowing-related expenses: 150 million yen.
• Amortization of expenses related to the establishment of Ichigo Hotel REIT and to
new share issuance: 26 million yen.

Borrowings• Total borrowings: 19,500 million yen as of July 2017

Number of Shares• 257,584 shares issued and outstanding as of September 14, 2016. The forecast
assumes there will be no additional new issuance of shares through July 2017. (The
forecast number of shares outstanding is slightly less for the July 2017 fiscal period
than for the January 2017 fiscal period, because the over-allotment issuance to theunderwriter (Greenshoe) completed in September 2016 ended up being less than the
maximum of 5,800 shares.)

Dividend per Share• The dividend forecast assumes that distributions will comply with the dividend
distribution policy stipulated in Ichigo Hotel REIT’s Articles of Incorporation.
• The dividend per share is subject to change due to factors such as sales of portfolio
assets, changes in rental income associated with tenant turnover, the occurrence of
unexpected maintenance and repair costs, and fluctuations in interest rates.

Dividend in Excess of
Earnings per Share• Ichigo Hotel REIT does not plan on making any dividend distribution in excess ofearnings per share or retained earnings.

Other• This forecast assumes that there are no material revisions to laws and regulations,the tax system, accounting standards, listing rules of the Tokyo Stock Exchange,
and rules of the Investment Trusts Association, Japan, and no material changes inthe state of the economy and real estate market conditions.

7Financial Statements(1) Balance Sheet(Thousand yen)
January 2016(as of January 31, 2016)
AssetsCurrent assets
Cash and cash equivalents
Cash and cash equivalents in trust
Accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Fixed assets
Property, plant, and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
FixturesAccumulated depreciation
Fixtures, net
Land
Total property, plant, and equipment
Investments and other assets
Tenant leasehold and security deposits
Long-term prepaid expenses
Investments and other assets, net
Total fixed assets
Capitalized expenses
Expenses related to REIT establishment
Share issuance expenses
Total deferred assets
Total assets

8

July 2016(as of July 31, 2016)

992,622533,849
42,43257,801
521,086
11,922
2,159,714

1,688,640
802,331
106,358
49,207002,646,537

6,170,044-49,963
6,120,081
0
0
0
2,220
-23
2,196
5,275
-88
5,187
14,515,032
20,642,497

6,218,644-150,008
6,068,636
1,816
-20
1,795
2,220
-163
2,056
24,644-1,19823,445
14,515,032
20,610,966

10,000147,228
157,228
20,799,725

10,000123,552
133,552
20,744,519

45,79965,920111,720
23,071,160

40,71054,752
95,46323,486,520

(Thousand yen)
January 2016(as of January 31, 2016)
Liabilities
Current liabilities
Accounts payable
Accounts payable – otherAccrued expenses
Income taxes payable, etc.
Consumption taxes payable, etc.
Advances received
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Tenant leasehold and security deposits
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Shareholders’ capital
Surplus
Unappropriated retained earnings
Total surplus
Total shareholders’ equity
Total net assets
Total liabilities and net assets

9

July 2016(as of July 31, 2016)

40,55524,752
14,111937
028,256
225
108,839

43,116
79,730634
903
44,44928,989292
198,1168,500,000

8,500,000

251,111251,1118,751,111
8,859,951

8,751,111
8,949,228

14,145,932

14,145,932

65,27665,276
14,211,208
14,211,208
23,071,160

391,360
391,360
14,537,292
14,537,292
23,486,520

(2) Income Statement(Thousand yen)
July 2016(February 1, 2016 toJuly 31, 2016)

January 2016
(July 22, 2015 toJanuary 31, 2016)
Operating revenue
Rental income
Other rental income
Total operating revenue
Operating expenses
Rental expenses
Asset management fees
Asset custody fees
Administrative service fees
Directors’ compensation
Other operating expenses
Total operating expenses
Operating profit
Non-operating income
Interest income
Interest on tax refund
Miscellaneous income
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing-related expenses
Amortization of expenses related to REIT
establishment
Amortization of share issuance expenses
Miscellaneous loss
Total non-operating expenses
Recurring profit
Pre-tax income
Income taxes – current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings

10

192,936
5,013
197,950

763,534
11,424774,959

67,66916,915
1,119
2,853
4,425
2,225
95,210102,740

176,559
89,977
1,730
5,445
4,200
24,271
302,184
472,774

0
0
0
0

93
1,104
0
1,198

14,111
12,626

39,10525,675

5,085

5,088

4,702
0
36,525
66,214
66,214937
937
65,276
065,276

11,867
1
81,738392,234
392,234
917
917
391,31643
391,360

(3) Statement of Shareholders’ Equity
Previous Period (January 2016)(Thousand yen)
Shareholders’ equity
Surplus
Shareholders’capitalBalance at start ofthe period

Net assets

Unappropriatedretainedearnings

Total surplus

Total
shareholders’equity000014,145,932

14,145,932

0Changes during
the period
Issuance of
new shares

14,145,932

Dividends

0

0

0

0

Net income

65,27665,27665,27665,27614,145,932

65,27665,276

14,211,208

14,211,208

14,145,932

65,27665,276

14,211,208

14,211,208

Total changes
duringthe period
Balance at end of
the period

Current Period (July 2016)(Thousand yen)
Shareholders’ equity
Surplus

Net assets

Unappropriatedretainedearnings

Total surplus

Total
shareholders’equity65,27665,276

14,211,208

14,211,208

Dividends-65,233-65,233-65,233-65,233

Net income

391,316

391,316

391,316

391,3160

326,083

326,083

326,083

326,083

14,145,932

391,360

391,360

14,537,292

14,537,292

Shareholders’capitalBalance at start ofthe period

14,145,932

Changes during
the period

Total changes
duringthe period
Balance at end of
the period11(4) Cash Flow Statement
January 2016
(July 22, 2015 toJanuary 31, 2016)
Cash flows from operating activities
Pre-tax income
Depreciation expense
Amortization of expenses related to REITt bli ht of share issuance expenses
Amortization
Interest income
Interest expenses
Decrease (increase) in accounts receivable – short-term
Decrease (increase) in consumption taxes receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in accrued consumption taxes
Increase (decrease) in accounts payable – short-term
Increase (decrease) in accounts payable
Increase (decrease) in advances received
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash generated by (used in) operating activities
Cash flows from investment activities
Purchase of property, plant, and equipment
Increase in tenant leasehold and security deposits
Payments of security deposits
Expenses related to REIT establishment
Net cash generated by (used in) investment activities
Cash flows from financing activities
Increase in long-term borrowings
Dividends paid
Proceeds from share issuance
Expenses related to share issuanceNet cash generated by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period

12(Thousand yen)
July 2016(February 1, 2016 toJuly 31, 2016)

66,21450,074
5,085
4,702
0
14,111-42,432-521,086-57,801-147,228015,11824,752
28,256-11,696-571,928000-571,928

392,234
101,315
5,088
11,867-93
39,105-63,925
521,086
8,593
23,67544,449-6,15054,978732
11,696
1,144,655
93-52,581-951
1,091,215-20,667,134
251,111-10,000-50,885-20,476,908-61,074000-61,074

8,500,000
0
14,075,308
0
22,575,308
1,526,471
0
1,526,471

0-64,9400-700-65,640
964,500
1,526,471
2,490,972

Material Matters after Closing of the Fiscal Period
1.

New Share IssuanceIssuance of New Shares through Public Offering： 115,800 shares
Number of shares issued： 154,537 yen per share
Issue price (offer price)： 17,895,384,600 yen
Total issue amount (total offer amount)： 149,068 yen per share
Paid-in amount (issue amount)： 17,262,074,400 yen
Total paid-in amount： August 16, 2016
Payment dateOver-Allotment Secondary Share Offering by Underwriter (“Greenshoe”)： 3,284 shares
Number of shares issued： 149,068 yen
Paid-in amount (issue amount)： 489,539,312 yen
Total paid-in amount (total issue amount)： September 13, 2016
Payment date
： SMBC Nikko Securities Inc.
Allottee2.

Asset Acquisitions
The following assets were acquired in accordance with the guidelines specified in Ichigo
Hotel REIT’s Articles of Incorporation.
Nest Hotel Osaka Shinsaibashi
7,600,000,000 yen
Acquisition Price
2-4-10 Minamisenba, Chuo-ku, Osaka City, Osaka
Location
Legal Form of Asset Trust beneficiary interest in real estate (juekiken)
July 22, 2016
Contract Date
August 17, 2016
Closing Date
SellerNishi Nihon Holdings GK
Comfort Hotel Central International Airport
5,308,000,000 yen
Acquisition Price
4-2-3 Centrair, Tokoname City, Aichi
Location
Legal Form of Asset Trust beneficiary interest in real estate (juekiken)
July 22, 2016
Contract Date
August 17, 2016
Closing Date
Seller
Shinsaibashi Jisho GK
Smile Hotel Tokyo Asagaya
3,910,000,000 yen
Acquisition Price
3-37-11 Asagaya-minami, Suginami-ku, Tokyo
Location
Legal Form of Asset Trust beneficiary interest in real estate (juekiken)
July 22, 2016
Contract Date
August 17, 2016
Closing Date
Seller
Shinsaibashi Jisho GK（Note) Acquisition price is the transaction price of the trust beneficiary interest (juekiken) itself anddoes not include any fees or applicable property, city planning, and consumption taxes.

13

Nest Hotel Naha
Acquisition Price
Location
Legal Form of Asset
Contract Date
Closing Date
Seller3,750,000,000 yen
1-6-1 Nishi, Naha City, Okinawa
Trust beneficiary interest in real estate (juekiken)
July 22, 2016
August 17, 2016
Shinsaibashi Jisho GK

Smile Hotel Asakusa
Acquisition Price
Location
Legal Form of Asset
Contract Date
Closing Date
Seller

1,920,000,000 yen
6-35-8 Asakusa, Taito-ku, Tokyo
Trust beneficiary interest in real estate (juekiken)
July 22, 2016
August 17, 2016
Shinsaibashi Jisho GK

Nest Hotel Matsuyama
1,610,000,000 yen
Acquisition Price
1-7-1 Niban-cho, Matsuyama City, Ehime
Location
Legal Form of Asset Trust beneficiary interest in real estate (juekiken)
July 22, 2016
Contract Date
August 17, 2016
Closing Date
Seller
Shinsaibashi Jisho GK
Hotel Livemax Nihombashi-Hakozaki
1,360,000,000 yen
Acquisition Price29-5 Nihombashi-Hakozakicho, Chuo-ku, Tokyo
Location
Legal Form of Asset Trust beneficiary interest in real estate (juekiken)
July 22, 2016
Contract Date
August 17, 2016
Closing Date
Seller
Shinsaibashi Jisho GK
Comfort Hotel Okayama
1,200,000,000 yen
Acquisition Price
1-1-13 Marunouchi, Kita-ku, Okayama City, Okayama
Location
Legal Form of Asset Trust beneficiary interest in real estate (juekiken)
July 22, 2016
Contract Date
August 17, 2016
Closing Date
Seller
Shinsaibashi Jisho GK
Comfort Hotel Kushiro
300,000,000 yen
Acquisition Price
13-1-1 Kita-odori, Kushiro City, Hokkaido
Location
Legal Form of Asset Trust beneficiary interest in real estate (juekiken)
July 22, 2016
Contract Date
August 17, 2016
Closing Date
Seller
Shinsaibashi Jisho GK
Comfort Hotel Suzuka
Acquisition Price
300,000,000 yen
Location
14-26, Shiroko-Ekimae, Suzuka City, Mie
Legal Form of Asset Trust beneficiary interest in real estate (juekiken)
Contract Date
July 22, 2016
Closing Date
August 17, 2016
Seller
Shinsaibashi Jisho GK
14

3.

New Loans
Ichigo Hotel REIT made the following borrowings to fund the above asset acquisitions.

Loan Date

LenderSMBC

Loan
Amount(thousandyen)
750,000

Mizuho Bank
August17, 2016

200,000

Resona Bank

200,000

Bank of Fukuoka

100,000

Nishi-Nippon City Bank

100,000

August17, 2016

Payment Collateral/
Method Guarantee

1M JPY
TIBOR+0.55％

February29, 2020

Lump
sum
payment
on
Maturity

Interest
Rate

Maturity
Date

Payment Collateral/
Method Guarantee

February28, 2023

Lump
sum
payment
on
Maturity

None/
None

2,000,000

SMBC

Loan
Amount(thousandyen)
1,750,000

Mizuho Bank

1,400,000

Shinsei Bank

450,000

Resona Bank

500,000

Bank of Fukuoka

200,000

Nishi-Nippon City Bank

200,000

Loan Date

Maturity
Date

650,000

Shinsei Bank

Total

Interest
Rate

LenderTotal

1M JPY
TIBOR+0.75％(Note)

None/
None

4,500,000(Note) An interest rate swap agreement exists to hedge against a rise in interest rates. As a result, theeffective interest rate has been fixed at 0.9075%.

SMBC

Loan
Amount(thousandyen)
1,750,000

Mizuho Bank

1,400,000

Shinsei Bank

450,000

Resona Bank

500,000

Bank of Fukuoka

200,000

Nishi-Nippon City Bank

200,000

Loan Date

August17, 2016

Lender

Total

Interest
Rate

1M JPY
TIBOR+0.80％(Note)

Maturity
Date

Payment Collateral/
Method Guarantee

August31, 2023

Lump
sum
payment
on
Maturity

None/
None

4,500,000(Note) An interest rate swap agreement exists to hedge against a rise in interest rates. As a result, theeffective interest rate has been fixed at 0.985%.

15

4.

Earnings Forecasts
Earnings Forecast for the January 2017 Fiscal Period (August 1, 2016 - January 31, 2017)
For details on preconditions, please refer to the “Preconditions for January 2017 Fiscal Period
Earnings Forecast” on page 4.

Major factors of variation are as follows:
Increase in Operating Revenue
Increase in rental income due to newly-acquired assets in August 2016
Increase in Operating Expenses
Increase in rental expenses due to newly-acquired assets in August 2016
Increase in Non-Operating Expense
Increase in interest expenses, borrowing-related expenses, and amortization of share issuance
expenses due to asset acquisitions in August 2016 using funds procured via new loans and a public
offering.
January 2017 Fiscal Period (August 1, 2016 - January 31, 2017)
Operating Revenue
1,547 mm yen
Operating Profit
933 mm yen
Recurring Profit
759 mm yen
Net Income
758 mm yen
Dividend per Share
2,917 yen
Dividends in excess of earnings
0 yen(Note) The above forecast is based on the preconditions on pages 4-5.

Earnings Forecast for the July 2017 Fiscal Period (February 1, 2017 - July 31, 2017)
For details on preconditions, please refer to the “Preconditions for July 2017 Fiscal Period Earnings
Forecast” on page 6.
Major factors of variation are as follows:
Increase in Operating Revenue
Increase in variable rent due to seasonal trends
Increase in Operating Expenses
Increase in rental expenses (property and city planning taxes for newly-acquired assets in August
2016)
July 2017 Fiscal Period (February 1, 2017 - July 31, 2017)
Operating Revenue
1,638 mm yen
Operating Profit
909 mm yen
Recurring Profit
732 mm yen
Net Income
731 mm yen
Dividend per Share
2,838 yen
Dividends in excess of earnings
0 yen(Note) The above forecast is based on the preconditions on pages 6-7.

16

Details of Rental Income(thousand yen)

A

B

C

Real Estate Rental Income
Real Estate Rental Income
Other Rental Income
Utilities Income
Other
Total Other Rental Income
Total Income
Real Estate Rental Expenses
Rental Expenses
Outsourcing Fees
Utilities
Trust Fees
Depreciation expense
Repair Expenses
Property and City Planning Taxes
Insurance
Other Expenses
Total Expenses
Net Rental Income(A-B)

Previous Period
July 22, 2015 –January 31, 2016

Current Period
February 1, 2016 –July 31, 2016

192,936

763,534

5,013
0
5,013

11,173250
11,424
197,950

3,091
5,013
1,121
50,074
1,990
0
385
5,992

17

774,9596,594
11,173
3,250
101,315
4,197
48,1891,113
723
67,669176,559

130,280

598,399

Notes to Derivative Transactions
1．Non-Hedge Accounting
N/A
2．Hedge Accounting
Previous Fiscal Period (January 2016)(thousand yen)

>1 year

Method ofMarketMarking to
Value
Market5,250,000

Note

Contract AmountAccounting Method
Special Treatment
of Interest Rate
Swap method

Transaction TypeInterest rate swap
(pay fixed, receive
floating)

Hedging Target

Long-term loan

5,250,000―

Current Fiscal Period (July 2016)(thousand yen)

>1 year

Method ofMarketMarking to
Value
Market5,250,000

Note

Contract AmountAccounting Method
Special treatment
of interest rate
swap method

Transaction TypeInterest rate swap
(pay fixed, receive
floating)

Hedging Target

Long-term loan

5,250,000―(Note) Swaps accounted under the Special Treatment of Interest Rate Swap method are accounted together withthe hedging target (in this case, a long-term loan), and therefore their market values are included inbalance sheet as part of Long-Term Loans.

18

Major Tenants (Hotel Operators)
Previous Fiscal Period (January 2016)(thousand yen)
Name

Ichigo Hotel REIT
Operating Revenue

K.K. Hospitality Operations

34,879Vista Hotel Management Co., Ltd

35,722

Nest Hotel Japan

31,286Forbes Co., Ltd.

26,341

Current Fiscal Period (July 2016)(thousand yen)
Name

Ichigo Hotel REIT
Operating Revenue

Nest Hotel Japan

179,621K.K. Hospitality Operations

179,248

Vista Hotel Management Co., Ltd

106,273

Forbes Co., Ltd.

77,999New Share IssuanceTotal Number of Shares
Date

Issue Amount (million yen)

MethodIssuedOutstanding

Change

Total

REIT
3,000
3,000
300
300
Establishment
Initial Public
November 27, 2015
129,000
132,000
13,181
13,481
Offering
Third-Party
Allotment toDecember 22, 2015
6,500
138,500
664
14,145
Underwriter(Greenshoe)(Note 1) Upon establishment of this REIT, shares were issued at a per share price of JPY 100,000.
July 22, 2015

(Note 2) New shares were issued via public offering at a per share price of JPY 106,000 (issue amountJPY 102,184) to procure funds for asset acquisitions.
(Note 3) New shares were issued via third-party allotment at an issue amount of JPY 102,184 to procure
funds to repay debt.

19

Portfolio Information
Portfolio Composition by Region
RegionTrust beneficiary interest inreal estate (juekiken)

Hokkaido & Tohoku
Hokuriku & Tokai
Kinki
Kyushu & Okinawa

Subtotal
Deposits/Other Assets
Total Assets

July 2016 Fiscal Period
Total Acquisition Price% of Total(million yen)
3,660
15.6
4,242
18.1
11,282
48.0
1,425
6.1
20,610
87.8
2,875
12.2
23,486
100.0

Hokkaido & Tohoku: Hokkaido, Aomori, Iwate, Miyagi, Akita, Yamagata, & Fukushima Prefectures
Hokuriku & Tokai: Toyama, Ishikawa, Fukui, Gifu, Shizuoka, Aichi, and Mie Prefectures
Kinki:
Osaka, Hyogo, Kyoto, Shiga, Nara, and Wakayama Prefectures
Kyushu & Okinawa: Fukuoka, Saga, Nagasaki, Kumamoto, Oita, Miyazaki, Kagoshima, and Okinawa
Prefectures

Hotel Acquisition Price, Book Value, Appraisal Value, and Portfolio Weighting(as of July 31, 2016)
Asset
No.
001
002
003
004
005
006
007
008
009

Hotel Name
Smile Hotel Kyoto
Shijo
Hotel Vista Premio
Kyoto
Hotel Wing
International Nagoya
Nest Hotel Sapporo
EkimaeChisun Inn Osaka
HommachiComfort Hotel
Hamamatsu
Hotel Suave Kobe
Asuta
Nest Hotel Sapporo
Odori

Acquisition
Appraisal
Book Value
Price
Value
(million yen)(million yen)(million yen)Portfolio
Weighting(%)

Collateralized

4,480

4,513

4,760

22.0

No

3,600

3,625

3,860

17.6

No

2,670

2,692

2,810

13.1

No

2,160

2,176

2,260

10.6

No

1,630

1,648

1,780

8.0

No

1,550

1,549

1,670

7.6

No

1,490

1,494

1,620

7.3

No

1,450

1,484

1,510

7.1

No

Valie Hotel Tenjin

1,380

1,425

1,900

6.8

No

Total

20,41020,61022,170100.020Hotel Location, Rent, Occupancy, and Structural Details(as of July 31, 2016)

Hotel Asset
Type No.

001
002

003

004
Stay Only 005

006
007
008
009

Hotel Name

Location

Smile Hotel
Kyoto
Kyoto Shijo
Hotel Vista
Kyoto
Premio Kyoto
Hotel Wing
International
NagoyaNagoyaNest Hotel
SapporoSapporo Ekimae
Chisun Inn
Osaka
Osaka
HommachiComfort Hotel
Hamamatsu, Shizuoka
Hamamatsu
Hotel Suave
Kobe
Kobe Asuta
Nest Hotel
SapporoSapporo Odori
Valie Hotel
FukuokaTenjinTotal/Average－

Land Area(㎡)

Total Floor
Fixed Rent Total Leased Total Leasable
Construction
Occupancy No. of Total No. of
Area
Area
Area
p.a.
Date
(%)
Tenants Guest Rooms(㎡)(㎡)(mm yen)(㎡)

662.83

4,891.84

Jan 1991

61

4,891.84

4,891.84

100.0

1

138

1,004.91

3,867.66

Jun 2008

150

3,867.66

3,867.66

100.0

3

84

603.375,255.66

Oct 1984

Not
Disclosed

5,255.66

5,255.66

100.0

1

220

897.96

5,734.93

Jun 1984

63

5,734.93

5,734.93

100.0

1

162

596.21

3,568.32

Oct 1982

72

3,690.00

3,690.00

100.0

2

130

835.12

4,173.92

Sep 2009

110

4,173.92

4,173.92

100.0

1

196

838.884,540.90

Jan 2008

Not
Disclosed

4,633.16

4,633.16

100.0

1

133

811.695,634.88 Aug 1992

47

5,638.78

5,638.78

100.0

1

117

788.62

1,910.94 Mar 1994

38

1,910.94

1,910.94

100.0

1

77

771

39,796.89

39,796.89

100.0

12

1,257

7,039.59

39,579.05－

21

Appraisal Data(as of July 31, 2016)
Value (mm yen)
Hotel Asset
Type No.

Asset Name

Value via
Appraisal
Cost
Value byValue
Approach
Direct(mm yen)(mm yen) Capitalization

Appraiser

Method
001
002

003

004

Stay - 005
Only
006

Smile Hotel
The Tanizawa Sogo
Kyoto Shijo
Appraisal Co., Ltd.
Hotel Vista
Daiwa Real EstatePremio Kyoto
Appraisal Co., Ltd.
Hotel Wing
Daiwa Real Estate
International
Appraisal Co., Ltd.
NagoyaNest Hotel
Daiwa Real Estate
Sapporo Ekimae Appraisal Co., Ltd.
Chisun Inn
Daiwa Real Estate
Osaka
Appraisal Co., Ltd.
HommachiComfort Hotel The Tanizawa Sogo
Hamamatsu
Appraisal Co., Ltd.

007

008
009

PostAppraisal
Appraisal
NOI yield Depreciation
Terminal
Cap ValueNOI
NOI yield
Discount Rate
Rate via DCF(%)
Cap Rate (thousand(%)(%)(%) Method
(%)
yen)

4,760

4,460

4,840

4.9

4,730

5.0

5.1

254,424

5.7

5.0

3,860

3,350

3,910

4.5

3,840

4.3

4.7

180,263

5.0

4.3

2,810

2,200

2,840

5.1

2,790

4.9

5.3

157,983

5.9

5.3

2,260

958

2,270

5.6

2,260

5.4

5.8

149,048

6.9

5.8

1,780

1,240

1,800

4.6

1,770

4.4

4.8

90,799

5.6

5.1

1,670

1,520

1,670

5.7

1,670

5.7

5.9

98,835

6.4

4.5

5.4

90,697

6.1

4.4

Hotel Suave
Kobe Asuta

The Tanizawa Sogo
Appraisal Co., Ltd.

1,620

1,540

1,650

5.2

1,600

5.1
(1st-2nd year)
5.3(3rd year on)

Nest Hotel
Sapporo Odori
Valie Hotel
TenjinDaiwa Real EstateAppraisal Co., Ltd.

1,510

1,140

1,500

5.5

1,520

5.3

5.7

100,002

6.9

4.8

Japan Real Estate
Institute

1,900

1,120

1,920

4.6

1,870

4.4

4.8

96,341

7.0

5.9

22,17017,52822,400- 22,050-- 1,218,396

6.0

5.0

Total/Average

Major Tenant Data (Hotel Operators)
Tenant Name

Industry

Hotel

Nest Hotel Japan

Hotel Operation

Nest Hotel Sapporo Ekimae
Nest Hotel Sapporo Odori

Forbes co., Ltd.

Hotel Operation

K.K. Hospitality Operations

Fixed Rent
in Jul 2016 Fiscal Period

Total Leased Area

(mm yen)(m2)

Ratio (%)

Ratio (%)

54

14.2

11,373.71

28.6

Hotel Wing International
NagoyaNot Disclosed(Note)-

5,255.66

13.2

Hotel Operation

Smile Hotel Kyoto Shijo

30

7.8

4,891.84

12.3

Y.K. Hotel Tetora

Hotel Operation

Hotel Suave Kobe Asuta

Not Disclosed(Note)-

4,633.16

11.6

Greens Co., Ltd.

Hotel Operation

Comfort Hotel Hamamatsu

55

14.3

4,173.92

10.5(Note) Covers tenants occupying more than 10% of total leasable area. Two tenants did not provide consent todisclose rent data.

22

Individual Hotel Financials(thousand yen)
Asset No.
Hotel(A) Rental Income
Fixed Rent
Variable Rent
Other Rent
(B) Rental Expenses
Outsourcing Fees
Insurance
Repair Expenses
Taxes
Other Expenses(C) NOI(A)-(B)(D) Depreciation(E) Net Rental Income(C)-(D)

001

774,959
387,253
351,895
35,81075,243
6,594
1,113
4,197
48,18915,147179,248
30,331
148,916
－
6,420
600
159
510
4,783
367

002
Hotel Vista
PremioKyoto
75,00075,000
－
－
9,536
1,475
107
661
6,875
418

699,715

172,827

65,46391,98753,15550,044

68,911

101,315

15,28812,337

11,951

4,184

14,29815,135598,399

157,539

53,12680,036

48,97035,746

53,776

Total

Smile Hotel
Kyoto Shijo

004
Nest Hotel
SapporoEkimae99,62831,12968,498
－
7,640
600
155
910
5,113
861

005
006
Chisun Inn
ComfortOsaka
Hotel
Hommachi Hamamatsu
57,78755,571
36,00055,361－
21,787
－
209
4,632
5,526
915
600
105
101
112
200
3,131
4,362
368
263

008
Nest Hotel
SapporoOdori
79,99323,76655,776450
11,081
600
164
1,468
8,308
540

(thousand yen)
Asset No.

009
Valie Hotel
Asset Name
Tenjin(A) Rental Income
61,227
Fixed Rent
21,664
Variable Rent
39,563－
Other Rent
(B) Rental Expenses
4,513
Outsourcing Fees
600
Insurance
56
Repair Expenses
276
Taxes
3,212
Other Expenses
368(C) NOI
56,713(A)-(B)(D) Depreciation
7,774(E) Net Rental Income
48,938(C)-(D)

Other
166,503
114,000
17,35235,15125,891
1,204
263
60
12,403
11,960140,611
20,345120,266(Note) Hotel operator rents for Hotel Wing International Nagoya and Hotel Suave Kobe Asuta, and retail rents for
Hotel Vista Premio Kyoto and Chisun Inn Osaka Hommachi are included in Other, as the tenants did notprovide consent to disclose the data. Hotel Wing International Nagoya NOI and depreciation are 70,684
thousand yen and 7,651 thousand yen, respectively. Hotel Suave Kobe Asuta NOI and depreciation are 46,596
thousand yen and 12,693 thousand yen, respectively.

23

Individual Hotel Operating Results
01

Smile Hotel Kyoto Shijo
2015

2016
Cumulative

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Occupancy (%)

100.2

100.3

100.1

100.0

100.2

100.0

100.3

100.2

100.1

100.1

100.1

100.0

100.1

ADR (yen)

11,19011,19915,01420,892

9,901

6,604

7,879

13,381

18,178

11,838

8,793

9,906

12,057

RevPAR (yen)11,213

11,23415,032

20,902

9,917

6,606

7,898

13,40318,187

11,849

8,799

9,908

12,072

Revenue (mm yen)

50

49

67

89

45

30

34

60

78

53

39

45

638

GOP (mm yen)

31

30

47

68

25

13

18

42

58

37

22

30

421

002

Hotel Vista Premio Kyoto
2015

2016
Cumulative

Aug

Sep

Oct

93.8

93.1

93.2

ADR (yen)

11,839

11,685

RevPAR (yen)11,107

Revenue (mm yen)
GOP (mm yen)Occupancy (%)

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

95.1

85.3

80.1

88.4

94.4

93.8

93.4

88.4

87.6

90.5

13,80919,606

12,521

10,487

10,79315,092

17,50013,696

10,745

12,96913,474

10,883

12,865

18,64910,675

8,405

9,544

14,251

16,41012,7869,500

11,365

12,200

31

29

36

49

29

23

-

-

-

-

-

-

25

39

44

36

26

32

400

-

-

-

-

-

-

-

(Note) The tenant did not give consent to disclose information on GOP.
003

Hotel Wing International Nagoya
2015

2016
Cumulative

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

90.2

76.6

78.1

90.2

Occupancy (%)

-

-

-

-

93.8

87.1

97.6

100.1

98.2

ADR (yen)

-

-

-

-

5,839

5,222

5,650

6,230

6,069

6,116

5,451

5,817

5,817

RevPAR (yen)

-

-

-

-

5,475

4,549

5,514

6,236

5,962

5,519

4,175

4,544

5,246

Revenue (mm yen)

45

44

47

44

42

36

41

48

45

42

32

35

501

GOP (mm yen)
(Note) The tenant did not give consent to disclose information other than revenue prior to December 2015. In
addition, the tenant did not give consent to disclose information on GOP.
004-

Nest Hotel Sapporo Ekimae
2015

2016
Cumulative

Aug

Sep

Oct

98.3

97.9

84.3

ADR (yen)

11,00910,448

RevPAR (yen)10,823

10,229

Revenue (mm yen)64

GOP (mm yen)31

Occupancy (%)

Nov

Dec

Jan

Feb

Mar

Apr

77.5

92.5

86.3

98.0

98.5

98.3

8,178

6,117

6,750

5,563

10,144

5,834

6,893

4,740

6,244

4,799

9,943

5,748

60

47

34

46

34

57

28

15

2

13

5

25

24

May

Jun

Jul

98.6

98.2

97.9

93.9

5,174

7,552

10,242

12,594

8,369

5,086

7,445

10,061

12,336

7,855

42

37

48

59

74

601

12

10

20

31

42

233

005

Chisun Inn Osaka Hommachi
2015

2016
Cumulative

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Occupancy (%)

93.5

89.2

92.4

90.3

87.9

91.2

91.0

94.8

89.3

80.4

88.3

90.9

89.9

ADR (yen)

9,368

8,972

9,209

8,962

9,241

8,806

10,115

9,915

10,783

9,416

8,816

9,420

9,417

RevPAR (yen)

8,759

8,006

8,512

8,095

8,127

8,031

9,203

9,400

9,633

7,568

7,785

8,562

8,470

Revenue (mm yen)

35

31

34

32

33

32

35

38

38

30

30

35

403

GOP (mm yen)

-

-

-

-

-

-

-

-

-

-

-

-

-

(Note) The tenant did not provide consent to disclose information on GOP.
006

Comfort Hotel Hamamatsu
2015

2016
Cumulative

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Occupancy (%)

-

-

-

-

-

69.8

81.4

88.2

82.3

77.4

79.8

78.5

79.6

ADR (yen)

-

-

-

-

-

5,817

6,057

6,276

6,266

6,444

5,937

6,325

6,169

RevPAR (yen)

-

-

-

-

-

4,061

4,931

5,538

5,156

4,990

4,739

4,967

4,911

Revenue (mm yen)

-

-

-

-

-

25

28

34

30

30

28

30

205

GOP (mm yen)

-

-

-

-

-

-

-

-

-

-

-

-

-

(Note) The tenant did not provide consent to disclose information on operating results prior to January 2016. In
addition, the tenant did not provide consent to disclose information on GOP.
007

Hotel Suave Kobe Asuta
2015

2016
Cumulative

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Occupancy (%)

-

-

-

-

-

-

-

-

-

-

-

-

-

ADR (yen)

-

-

-

-

-

-

-

-

-

-

-

-

-

RevPAR (yen)

-

-

-

-

-

-

-

-

-

-

-

-

-

Revenue (mm yen)

-

-

-

-

-

-

-

-

-

-

-

-

-

GOP (mm yen)

-

-

-

-

-

-

-

-

-

-

-

-

-

(Note) The tenant did not provide consent to disclose information on past operating results.
008

Nest Hotel Sapporo Odori
2015

2016
Cumulative

Aug

Sep

Oct

96.6

97.0

94.7

84.4

ADR (yen)

14,403

12,97910,474

RevPAR (yen)13,91912,583

Revenue (mm yen)55

GOP (mm yen)32

Occupancy (%)

Nov

Dec

Jan

Feb

Mar

Apr

92.8

95.0

96.9

96.9

88.5

7,372

7,964

6,704

12,228

6,672

9,919

6,219

7,391

6,367

11,849

48

40

25

31

27

27

20

6

10

7

25

May

Jun

Jul

97.7

95.2

98.1

94.5

6,093

8,656

11,456

15,685

10,124

6,462

5,392

8,460

10,901

15,387

9,567

44

28

23

35

42

60

459

23

9

6

16

23

37

216

009

Valie Hotel Tenjin
2015

2016
Cumulative

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

Occupancy (%)

93.2

91.6

93.0

90.2

85.8

85.0

90.8

91.1

85.2

71.1

78.7

88.1

87.0

ADR (yen)

8,191

9,073

8,743

10,129

9,556

8,434

10,231

9,500

9,191

10,619

8,757

9,756

9,326

RevPAR (yen)

7,642

8,311

8,131

9,133

8,203

7,173

9,291

8,652

7,827

7,554

6,896

8,596

8,112

Revenue (mm yen)

19

20

21

22

21

18

22

22

20

20

17

22

245

GOP (mm yen)

10

12

10

13

11

10

13

13

11

11

9

12

135

(Note) Certain historic data for Hotel Wing International Nagoya, Comfort Hotel Hamamatsu, and Hotel Suave
Kobe Asuta are not included, because the hotel operators have not provided consent to disclose the datafor certain periods.
ADR = Average Daily Rate
RevPar = Revenue per Available RoomGOP = Gross Operating Profit

Hotel NOI and Portfolio Weighting by Region
Portfolio
Weighting(%)

Average Appraisal
NOI Yield(%)

RegionNumber of
AssetsAcquisition Price(mm yen)Hokkaido & Tohoku

2

3,610

17.7

6.9

Hokuriku & Tokai

2

4,220

20.7

6.1

Kinki

4

11,200

54.9

5.5

Kyushu & Okinawa

1

1,380

6.8

7.0

Total

9

20,410

100.0

6.0

26

Major Capital Expenditures (>10 Million Yen)a．Major Capital Expenditures Planned for January 2017 and July 2017 Fiscal Periods

Hotel

Location

PurposeSmile Hotel Kyoto Shijo

Kyoto

Nest Hotel Sapporo Odori

SapporoHotel Wing International
NagoyaNagoyaSmile Hotel Kyoto Shijo

Kyoto

Renovate Lobby

Nest Hotel Sapporo Odori

SapporoIncrease Guest
Rooms
Increase Guest
Rooms
Renovate Bathrooms
in All Guest Rooms

TimingExpenditure (mm yen)Amount
Total
Paid inAmountTotal
July
Already
FiscalPaid
PeriodJan 2017

23－－

Jan 2017

22－－

Jun-Oct 2016

20

－

－

Dec 2016Jan 2017

15

－

－

Renovate MechanicalMar 2017
Parking Station

15

－

－

b．Major Capital Expenditures during the Current Fiscal Period (July 2016)

Hotel

Location

Nest Hotel Sapporo Odori

SapporoNest Hotel Sapporo Odori

SapporoValie Hotel Tenjin

FukuokaPurposeRenovate Guest
Rooms
Increase Guest
Rooms
Replace Air
Conditioning Units

27

TimingExpenditure (mm yen)Amount
Total
Paid inAmountTotal
July
Already
FiscalPaid
PeriodApr 2016

16

16

16

Jun-Jul 2016

16

－

－

May 2016

13

13

13