Ichigo Hotel REIT January 2016 Fiscal Period
Corporate Presentation
March 16, 2016

Ichigo Hotel REIT Investment Corporation (3463)
Ichigo Real Estate Investment Advisors Co., Ltd.

© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

www.ichigo-hotel.co.jp/english

© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Creating peace of mind throughhonest and committed management.

© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

TSE Listing in November 2015
ü IPO Details
ü Growth and Shareholder Value-Creation Strategy
ü Portfolio Characteristics
ü Portfolio Strategy

January 2016 Financial Results
ü Results Significantly Above Forecast
ü Post-IPO Operating Results by Assetü Post-IPO Total Performanceü (Reference) Year-on-Year Total Performanceü Debt Financing Details

Accelerating Growthü Ichigo Hotel REIT Growth Strategy Roadmap
ü External Growth Strategy
ü Organic Growth Strategy
ü Revised Dividend Forecast

Portfolio Overview
Appendix: Additional Portfolio, Financial, & Structural Details© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

5

TSE Listing in November 2015

© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

6

IPO Details
Type of Offering

Domestic

Securities Code

3463
Public Offering: 129,000 shares

Number of
Shares Offered

Over-allotment secondary share offering: 6,500 shares
Total: 135,500 shares

Issue Price

106,000 yen per share

Offering Amount

14,363 million yen

Listing Date

November 30, 2015

Media Coverage
Ichigo Hotel REIT Aims for External as well as Organic Growth Via
Ichigo’s Value-Add Know How
Ichigo Hotel REIT is a pure hotel J-REIT established by Ichigo Inc. (2337) in July.
Investors are responding favorably to the listing due to growing hotel industry
demand from expanding inbound tourism in light of the depreciation of the yen.
Investors anticipate that Ichigo Hotel REIT is capable of achieving external andorganic growth via strategic investments leveraging the sponsor company’svalue-add expertise.
[…]

The book building process resulted in demand from individual investors at 6x,
demand from institutional investors at 25x, and total market demand at 11x
the total number of shares offered. Dividend yield exceeded 4.0% at issue
price. The issue price was fixed at the maximum preliminary pricing of 106,000
yen.
(Source: Thomson Reuters DealWatch)© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

7

Growth & Shareholder Value-Creation Strategy
Growth Strategy that Leverages Ichigo Group’s Strengths
ü Increase profitability via strategic value-add CAPEX, drawing upon Ichigo’s extensive real estate valueadd capabilities and know-how
ü Take advantage of Ichigo Group’s broad network to source deals to generate value-accretive external
growthDeliver Both Income Stability and Earnings Growthü Invest primarily in hotels well-positioned to benefit from the growing number of inbound tourists into
Japan
ü 
Currently prioritizing investments in stay-only hotels (those without banquet halls, etc.) based on theirincome stability and ability to generate relatively steady revenue even in adverse economic conditions
ü Once the initial portfolio has achieved stable operations, Ichigo Hotel REIT expects to seek further
growth via acquisitions of resort and full-service hotels

Maximization of Shareholder Valueü Take full advantage of Ichigo as sponsor and make maximum use of Ichigo Group’s deep value-add
capabilities to drive further growth© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

8

Portfolio Characteristics
Asset Size

Total Assets

Total Appraisal Value

JPY 20.4B

9 Assets

JPY 20.7B

Average Appraisal NOI Yield

Total Guest Rooms

Average NOI Yield

5.9%

1,257 Rooms

5.0% (post-depreciation)

Smile Hotel
Kyoto Shijio

By Region

Nest Hotel Sapporo Ekimae
Hotel Vista
Premio Kyoto

Kyushu7%

Hokkaido
18%

Kinki
55%
Tokai
20%
Hotel Suave Kobe Asuta

Nest Hotel Sapporo Odori

By Hotel Type

Comfort Hotel Hamamatsu

Stay-Only
100%

Valie Hotel Tenjin
Chisun Inn
Osaka Hommachi

Hotel Wing International Nagoya© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

* Based on acquisition price9

Portfolio Strategy
Initial Focus Primarily on Stay-Only Hotels that Deliver Both Earnings
Stability and Income Growth
Growth Potential

Full-Service Hotels
Located in or near train stations, tourist destinations, business centers,

Resort Hotels
Located in tourist destinations and/or
near major tourist attractions, thesegovernment offices, shopping districts, and other areas of high customer
traffic, these hotels offer a full line of services and facilities such as inhouse restaurants, bars, convention centers, business support centers, etc.

are hotels with in-house restaurants,
banquet halls, convention centers,
sports facilities, and other such

Stay-Only Hotels（Initial Focus)

facilities

Located near train stations, airports, business centers,
major thoroughfares, shopping centers, and other areas ofhigh customer traffic, these hotels primarily service travelers

Other Options
Overnight options such as serviced

as places to stay at very attractive rates, without extraneousbanquet facilities, etc.

apartments, Japanese-style inns
(ryokan), capsule hotels, etc.

Stable Revenue© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

10

January 2016 Financial Results© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

11

Results Significantly Above Forecast
January 2016 Dividend: 471 yen (+229 yen vs. Initial Forecast)
Variable Rents Up; Expenses Down
Forecast(as of November 2015)

January 2016

Difference(million yen)

Major Factors for Variation

Operating Revenue

197

178

+19 Increase in variable rent:+16mm yen

Variable Rent

66

49

+16

Fixed Rent

119

116

+3

Other

11

13

-2

Operating Profit

102

74

+28

Recurring Profit

66

34

+32

Net Income

65

33

+32

Dividend Per Share

471 yen

242 yen+229 yen

Total Assets

23,071

22,363+708

Interest-Bearing Liabilities

8,500

8,500

±0

LTV

36.8%

38.0%

-1.2%

Decrease in operating expense: -15 mm yen
Decrease in non-operating expense: -3mm yen(Note) Ichigo Hotel REIT’s 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 the first period was November 30, 2015 to January 31, 2016 (63 days).
© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

12

Post-IPO Operating Results by Asset
January 2016 Period RevPAR: 6,240 yen
No.

Name

LocationJanuary 2016 (Dec 2015 - Jan 2016)

No. ofGuest
Rooms

Acquisition Date

Occupancy
(%)

ADR
(yen)

RevPAR(yen)

Revenues(mm yen)001 Smile Hotel Kyoto Shijo

Kyoto, Kyoto Prefecture

138

November 2015

100.1

8,254

8,261

75

002 Hotel Vista Premio Kyoto

Kyoto, Kyoto Prefecture84

November 2015

82.7

11,5359,540

53003 Hotel Wing International Nagoya Nagoya, Aichi Prefecture220

November 2015

90.4

5,542

5,012

78

004 Nest Hotel Sapporo Ekimae

Sapporo, Hokkaido Prefecture

162

November 2015

89.4

6,178

5,521

80

005 Chisun Inn Osaka Hommachi

Osaka, Osaka Prefecture

130

November 2015

89.6

9,020

8,079

65

008 Nest Hotel Sapporo Odori

Sapporo, Hokkaido Prefecture

117

November 2015

93.9

7,327

6,879

58

009 Valie Hotel Tenjin

Fukuoka, Fukuoka Prefecture77

November 2015

85.4

8,998

7,688

39

86.9

7,184

6,240

541

Total Assets (9 Assets)

1,257(Note) Data for Comfort Hotel Hamamatsu and Hotel Suave Kobe Asuta are not included, as the hotel operators did not give consent to disclose the data.

© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

13

Post-IPO Total Performance (December 2015 - January 2016)
ADR and RevPAR Both Up Year-on-YearTotal Portfolio
Jan. 15

Jan. 16

7 Major Hotels with Variable Rents
YoY

Jan. 15

Jan. 16

YoY

Occupancy

89.3%

86.9%

-2.4%

92.7%

90.9%

-1.8%

ADR (yen)

6,431

7,184

+11.7%

6,408

7,571

+18.1%

RevPAR (yen)

5,744

6,240

+8.6%

5,937

6,881

+15.9%(Note) Operating timeframe: Jan 15: December 2014 to January 2015; Jan 16: December 2015 to January 2016

Total Portfolio

7 Major Hotels with Variable Rents1
(yen)

(yen)
100%

10,000100%

10,000Occupancy (left)

Occupancy (left)

ADR (right)

ADR (right)
RevPAR (right)

RevPAR (right)
95%

8,000

95%

8,000
7,571

7,184
6,408

6,431
6,240

90%

6,000

6,881

90%

6,000
5,937

5,744

85%

89.3%

4,000

85%

2,000

80%

92.7%

90.9%

4,000

86.9%

80%
Jan. 15

Jan. 16

2,000

Jan. 15
Jan. 16
1 Excludes Comfort Hotel Hamamatsu and Hotel Suave Kobe Asuta© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

14

(Reference) Year-on-Year Total Performance
Substantial Increase in Both ADR and RevPAR
Total Portfolio
Jan. 15

Jan. 16

7 Major Hotels with Variable Rents
YoY

Jan. 15

Jan. 16

YoY

Occupancy

90.4%

91.7%

+1.3%

93.7%

94.3%

+0.7%

ADR (yen)

6,980

8,235

+18.0%

7,094

8,739

+23.2%

RevPAR (yen)

6,310

7,549

+19.6%

6,646

8,244

+24.0%(Note) Operating timeframe: Jan 15: February 2014 to January 2015; Jan 16: February 2015 to January 2016

Total Portfolio

(yen)

100%

10,0007 Major Hotels with Variable Rents1

Occupancy (left)

90%

ADR (right)

8,235

RevPAR (right)

95%

8,000
6,980

10,000Occupancy (left)

ADR (right)
RevPAR (right)

(yen)

100%

95%

7,549

6,000

6,310

90%

8,739
8,244
8,000

7,094

6,646

6,000
94.3%

85%

90.4%

91.7%

80%
Jan. 15

Jan. 16

4,000

85%

2,000

80%

93.7%

4,000

2,000

Jan. 15
Jan. 16
1 Excludes Comfort Hotel Hamamatsu and Hotel Suave Kobe Asuta© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

15

Debt Financing Details
Outstanding Loan Balance

Lender Distribution

November 30, 2015
(at IPO)

January 31, 2016

Outstanding Balance

8,500 mm yen

8,500 mm yen

Long-term Loan Ratio

100.0%

100.0%

Fixed-rate Loan Ratio

61.8%

61.8%

Average Interest Rate

0.96%

0.96%

Average Remaining Term

4.2 years

4.2 years

LTV

38.0%

36.8%

LTV= (Total amount of loan + bonds outstanding) / Total Asset AmountResonaBank
10%
Shinsei Bank
15%

SMBC
40%

Mizuho Bank
35%

Loan Repayment Date Distribution(mm yen)

6,000
5,250

5,000

4,000

Stable financial base via strong
lender formation, optimal LTV
management, and interest rate risk
management

3,250

3,000

2,000

1,000

0
July January July January July January July January July January July
2016
2017
2017
2018
2018
2019
2019
2020
2020
2021
2021

© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

16

Accelerating Growth© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

17

Ichigo Hotel REIT Growth Strategy Roadmap
Stage I

Mid-Term
TargetStage IIJPY 200B
Total Assets

Continuous Dividend Growth via External Growth, Organic Growth, and Strong Financial Base

External
Growth• Quickly achieve JPY100B total asset size by taking fulladvantage of Ichigo’s sponsor support• Invest primarily in stay-only hotels• Acquisition of conversion-feasible assets and lodging
facilities such as serviced apartments• Asset acquisitions via SPCs

Organic
Growth••• Construct a diversified portfolio to pursue both income
stability and earnings growth• Acquire prime-location full-service hotels and resort hotels in
addition to stay-only hotels• Increase portfolio size and generate scale efficiencies via
acquisitions of newly built hotels in addition to value-add ofexisting hotels

Improve operational efficiency by monitoring operations and providing advice to partner hotel operators
Increase rents and earnings through value-add strategic CAPEX

Financing• Minimize expenses via collaboration with operators• Further increase earnings via more favorable lease contracts,
rebranding, etc.

• Maintain a strong lender base
• Control LTV• Manage interest rate risk
• Prepare to acquire credit rating• Prepare to enter global REIT indices• Acquire credit rating• Diversify financing• Continue to control LTV and manage interest rate risk
• Enter global REIT indices

Lay Foundation for Growth via Increased
Asset Scale

Pursue Portfolio Diversification,
Stability, and Growth

IPO
January 2016

July 2017© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

January 201918

External Growth Strategy

Increase Portfolio Size and Scale via Ichigo Sponsor Support
21 Hotel Assets Currently Owned or Highly Likely to Be Acquired by Sponsor
ü Major locations: Tokyo, Kanagawa, Osaka, Okinawa, Fukuoka, Kumamoto, andother major regional cities

Use Ichigo’s Asset Warehousing Capability
ü Value-add conducted while sponsor owns the asset
ü Can include conversion-feasible assets when considering acquisition options
ü Acquire newly-built hotels via Ichigo’s development pipeline
Hotel Assets Currently Owned by Sponsor© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

19

External Growth Strategy

Sponsor-Led Value-Add Case
Driving Higher Revenues via Additional Guestroomsü Converted a floor of retail shops into hotel facilities, adding 21 guestroomsü Increased floor area leased to hotel operator and introduced variable rent
BeforeAfter

Retail Floor

Reception

Restaurant

Guestroom

Rebranding & Improving Operations with New Operator
ü Carried out renovations with new operator immediately after acquisition
Before Acquisition

After Acquisition

Improvements

Owner operating the hotel

Lease contract withvariable rent

Separating ownership and management, and introducing a winwin lease contract

Hotel managed as non-core business

Operator change

Hotel management by an operator with track record

Franchise agreement

Rebranding

Reduction of franchisee fees and refurbishment of hotel's brandimage

No revenue management

Introduction ofrevenue management

Rates and reservation management to maximize revenue

Ineffective restaurant management

Restaurant management overhaul

Restaurant management made more effective, resulting in
reduced expenses© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

20

Organic Growth Strategy

Strategic Value-Add CAPEX (Valie Hotel Tenjin)
Introduced a Restaurant and Lounge on the First Floorüüüü

Began serving breakfast to guests in February 2016
Lounge open 24 hrs for hotel guests to relax
CAPEX to add value and improve guest
experience; Guestroom renovations in 2015
In 8 months after guestroom renovations (YoY)
ADR:
8,666 yen (+2,080 yen, +31.6%)
RevPAR： 7,808 yen (+1,777 yen, +29.5%)
Revenues: 147 mm yen (+33 mm yen, +29.5%)

Trend and YoY Growth Rate of ADR after Guestroom Renovations
12,000Buffet-style restaurant with 24 seats
50%

2014 ADR (left, yen)2015 ADR (left, yen)
ADR Growth Rate (right, %)10,000

40%

8,000

30%

6,000

20%

4,000

10%

2,000

0%
June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Cafe-like lounge offering Wi-Fi connectivity and free coffeeJan.

© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

21

Organic Growth Strategy

Strategic Value-Add CAPEXü Bring in more tourism demandü Focus renovations on hotels with consistent demand and high-occupancy in order to improve
guest satisfaction and increase ADRs
ü Convert non-revenue-generating spaces into guest rooms at hotels with occupancy of >90% p.a.
Expected
Strategic Value-Add CAPEX
Planned for 2016
Hotel
Completion Date

Renovation Details

PurposeApril 2016

Nest Hotel Sapporo Odori

Convert 12 twin-bed rooms to be flexibly used also as triplebed rooms

Update and upgrade facilities and drive higher tourist demand
to boost ADR and RevPAR

July 2016

Nest Hotel Sapporo Odori

Convert storage rooms into guest rooms

Convert non-revenue-generating spaces into guest rooms

August 2016

Smile Hotel Kyoto Shijo

Convert storage rooms into guest rooms

Convert non-revenue-generating spaces into guest rooms

October 2016

Hotel Wing International Nagoya

Renovation of all guest rooms including bathroom remodeling Update and upgrade facilities and drive higher tourist demand
to boost ADR and RevPAR(Joint renovation with lessor)

Chisun Inn Osaka Hommachi

Renovation of guest rooms including replacements of bathunits and conversion for flexible use as triple-bed rooms(Joint renovation with lessor)

December 2016

Update and upgrade facilities and drive higher tourist demand
to boost ADR and RevPAR

Renovated for Flexible Use as Triple-Bed Rooms (Nest Hotel Sapporo Ekimae)
BeforeAfter

Twin-Bed RoomTwin-Bed Room

Triple-Bed Room

© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

22

Growing Earnings and Dividend
Dividend forecast: 2,455 yen for July 2016; 2,606 yen for January 2017
(million yen)
July 2016

January 2016

ActualRevised
Forecast(Mar 16,
2016)

InitialForecast(Nov 30,
2015)

178

197

730

Variable Rent—

66

Fixed Rent

—

Other

January 2017

Difference

vs.
Revised
Forecast

Revised
Forecast(Mar 16,
2016)

InitialForecast(Nov 30,
2015)

Difference

vs.
Revised
Forecast

701

+28

+3.9%

755

687

+68

+9.8%

308

290

+17

+5.8%

325

268

+56

+20.8% Variable rent increase due to improved hotel revenue

119

387

387

—

—

395

395

—

—

11

34

23

+11

+47.8%

34

23

+11

Operating Profit

74

102

423

411

+11

+2.6%

444

397

+46 +11.5%

Utilities expenses paid on behalf of retail tenants
July 2016: 11 million yen
January 2017: 11 million yen
Depreciation
July 2016: 101 mm yen (6 mm yen increase)
January 2017: 104 mm yen (5 mm yen increase)

Recurring Profit

34

66

341

324

+16

+4.9%

361

309

+52 +16.8%

Interest Expense
July 2016: 40 mm yen (4 mm yen decrease)
January 2017: 40 mm yen (4 mm yen decrease)

Net Income

33

65

340

323

+16

+4.9%

360

308

+52 +16.8%

242 yen471 yen2,455 yen

2,336 yen +119 yen+5.0%

2,606 yen

2,230 yen

Operating Revenue

Dividend Per
Share

InitialForecast+376 yen

Major Factors for Variation—+47.8% Utilities income received from retail tenants+16.8%(Note) Retail tenants’ utilities income and expenses exactly offset one another© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

23

Revised Dividend Forecasts
Annual Dividend Forecast +495 yen (+10.8%)+ 10.8%+ 5.0%+16.8%

2,336
yen

2,455
yen

Initial Forecast

Revised Forecast

July 2016

2,230
yen

Initial Forecast

4,566
yen

5,061
yen

2,606
yen

Revised Forecast

January 2017

Initial Forecast

Revised Forecast

Annual (July 2016 & January 2017)© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

24

Portfolio Overview© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

25

Smile Hotel Kyoto Shijo
Location

Kyoto, Kyoto Prefecture

Hotel Type

Stay-Only

Number of Guest Rooms

138

Leasable Area

4,891.84 m 2

Structure

SRC, Steel, B1F/10F

Contractual Terms

Fixed + Variable Rent

Acquisition Price

4,480 mm yen

Term-end Appraisal Value

4,580 mm yen

Cap Rate

5.1%

January 2016 Actual
Occupancy

100.1%

ADR

8,254 yen

RevPAR

8,261 yen

Revenues

75 mm yen

Location and Features

Annual Operating Results (Feb. 2015 - Jan. 2016)
101.0

RevPAR (right, yen)
25,000100.5

20,000100.0

15,000ü In tandem with JR Kyoto Station, this district is themain area of Kyoto, and both business and leisure(domestic and inbound) demand can be expected.

99.5

10,000ü The hotel re-opened under its current name in June
2014. Prior to re-opening, all guest rooms and publicareas were refurbished.

99.0

ü This stay-only hotel is located in the center of Kyoto,a 5-minute walk from Shijo Station on the Karasuma
Subway Line and Karasuma Station on the Hankyu
Railway Kyoto Line.
ü The area is at the heart of the railroad and roadsystems of Kyoto, with good access to bothresidential areas and sightseeing. The ShijoKarasuma district, with many banks and brokeragefirms located around the Shijo-Karasuma intersection,is the financial center of Kyoto.

Occupancy (left, %)ADR (right, yen)

5,000
Feb. 2015© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

May 2015

Aug. 2015

Nov. 201526

Hotel Vista Premio Kyoto
Location

Kyoto, Kyoto Prefecture

Hotel Type

Stay-Only

Number of Guest Rooms

84

Leasable Area

3,867.66 m

Structure

Steel, RC, B1F/6F

Contractual Terms

Fixed + Variable Rent

Acquisition Price

3,600 mm yen

Term-end Appraisal Value

3,730 mm yen

Cap Rate

4.6%

2

January 2016 Actual
Occupancy

82.7%

ADR

11,535 yen

RevPAR9,540 yen

Revenues

53 mm yen

Location and Features
ü This stay-only hotel is a 5-minute walk from Kyoto
City Hall Station on the Tozai Subway Line, and a 7minute walk from Kawaramachi Station on the
Hankyu Railway Kyoto Line.
ü Located in downtown Kyoto, this accessible hotel is ahighly useful accommodation for both business andsightseeing purposes.
ü Most of the guest rooms are spacious twin anddouble rooms, which meet growing leisure demand.
ü The guest rooms are high-class compared to thestandard business hotels in the area, with functional,
Western-style rooms having a Kyoto-like traditional
Japanese interiors.

Annual Operating Results (Feb. 2015 - Jan. 2016)100

Occupancy (left, %)ADR (right, yen)

RevPAR (right, yen)
25,00090

20,00080

15,00070

10,000

60

5,000

50

0
Feb. 2015

May 2015© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Aug. 2015

Nov. 201527

Hotel Wing International Nagoya
Location

Nagoya, Aichi Prefecture

Hotel Type

Stay-Only

Number of Guest Rooms

220

Leasable Area

5,255.66 m

Structure

SRC, Steel, B1F/11F

Contractual Terms

Fixed + Variable Rent

Acquisition Price

2,670 mm yen

Term-end Appraisal Value

2,760 mm yen

Cap Rate

5.2%

2

January 2016 Actual
Occupancy

90.4%

ADR

5,542 yen

RevPAR

5,012 yen

Revenues

78 mm yen

Location and Features
ü This stay-only hotel is a 2-minute walk to Marunouchi
Station on the Nagoya City Subway Sakura-Dori and
Tsurumai Lines.

Annual Operating Results (Feb. 2015 - Jan. 2016)
Occupancy (left, %)ADR (right, yen)

RevPAR (right, yen)
12,000100

ü The hotel rebranded to its current name in 2006.

90

ü The area is a business district, with the Nagoya
Branch of Bank of Japan, other government offices,branch offices of financial firms, and major
companies located nearby.

80

8,000

70

6,000

60

4,000

ü With easy access to the Sakae shopping andentertainment area and JR Nagoya Station, the hotel
can meet both business and leisure demand.

The tenant did not give consent to disclose theinformation for February −November 2015.

50

10,0002,000
Feb. 2015

May 2015© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Aug. 2015

Nov. 201528

Nest Hotel Sapporo Ekimae
Location

Sapporo, Hokkaido Prefecture

Hotel Type

Stay-Only

Number of Guest Rooms

162

Leasable Area

5,734.93 m

Structure

SRC, B1F/11F

Contractual Terms

Fixed + Variable Rent

Acquisition Price

2,160 mm yen

Term-end Appraisal Value

2,220 mm yen

Cap Rate

5.7%

2

January 2016 Actual
Occupancy

89.4%

ADR

6,178 yen

RevPAR

5,521 yen

Revenues

80 mm yen

Location and Features
ü Rebranded as Nest Hotel in May 2013, this is a stayonly hotel a 5-minute walk from Sapporo Station on
the Namboku Subway Line and 6-minute walk from
Sapporo Station on the JR Line.
ü The hotel is situated at the heart of Sapporo,attracting both tourists and business travelers. It is
located close to key transport infrastructure withgrowing travel demand. The hotel is also
conveniently located near major tourism and dining
areas such as Odori Park and the Susukino area.
ü The hotel is famous for its breakfast buffet, with morethan 40 varieties of dishes ranging from local
specialties to international favorites.

Annual Operating Results (Feb. 2015 - Jan. 2016)100

Occupancy (left, %)ADR (right, yen)

RevPAR (right, yen)
12,00090

10,000

80

8,000

70

6,000

60

4,000

50

2,000
Feb. 2015

May 2015© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Aug. 2015

Nov. 2015

29

Chisun Inn Osaka Hommachi
Location

Osaka, Osaka Prefecture

Hotel Type

Stay-Only

Number of Guest Rooms

130

Leasable Area

3,690.00 m

Structure

SRC, B1F/10F

Contractual Terms

Fixed + Variable Rent

Acquisition Price

1,630 mm yen

Term-end Appraisal Value

1,720 mm yen

Cap Rate

4.7%

2

January 2016 Actual
Occupancy

89.6%

ADR

9,020 yen

RevPAR

8,079 yen

Revenues

65 mm yen

Location and Features

Annual Operating Results (Feb. 2015 - Jan. 2016)

ü This stay-only hotel is a 5-minute walk from Sakaisuji
Hommachi Station on the Chuo Subway Line.

100

RevPAR (right, yen)
12,000ü The area is a highly-dense commercial district withthe potential for higher numbers of business travelers
and tourists.

90

10,000

80

8,000

70

6,000

60

4,000

ü Access to major tourist spots such as Universal
Studio Japan and Kyocera Dome is convenient via
public transport.

Occupancy (left, %)50
Feb. 2015

ADR (right, yen)

2,000
May 2015© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Aug. 2015

Nov. 201530

Comfort Hotel Hamamatsu
Location

Hamamatsu, Shizuoka Prefecture

Hotel Type

Stay-Only

Number of Guest Rooms

196

Leasable Area

4,173.92 m

Structure

Steel, 10F

Contractual Terms

Fixed Rent

Acquisition Price

1,550 mm yen

Term-end Appraisal Value

1,640 mm yen

Cap Rate

5.8%

2

January 2016 Actual
Occupancy
ADR
RevPAR

The tenant did not give consent todisclose the information.

Revenues

Location and Features
ü This stay-only hotel, with 35 single-bed rooms and
142 double-bed rooms, is conveniently located just a
2-minute walk from Hamamatsu Station on the JRLine. It is also situated on the main trunk road thatruns in front of the South Exit of the JR Hamamatsu
Station.
ü Many major national manufacturers in industries
such as autos, motorcycles, and musical instruments
are in the area. Parts manufacturers and small andmedium enterprises (SMEs) also have offices in thearea, and thus steady business demand can be
expected.

Annual Operating Results (Feb. 2015 - Jan. 2016)
Occupancy (left, %)ADR (right, yen)

RevPAR (right, yen)
12,000100

90

The tenant did not give consent to disclose theinformation for February −December 2015.

10,000

80

8,000

70

6,000

60

4,000

50

2,000
Feb. 2015

May 2015© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Aug. 2015

Nov. 201531

Hotel Suave Kobe Asuta
Location

Kobe, Hyogo Prefecture

Hotel Type

Stay-Only

Number of Guest Rooms

133

Leasable Area

4,633.16 m

Structure

RC, B1F/9F

Contractual Terms

Fixed + Variable Rent

Acquisition Price

1,490 mm yen

Term-end Appraisal Value

1,550 mm yen

Cap Rate

5.4%

2

January 2016 Actual
Occupancy
ADR
RevPAR

The tenant did not give consent todisclose the information.

Revenues

Location and Features
ü Built in January 2008, this is a stay-only hotel with 77
single bedrooms. It is a 2-minute walk from ShinNagata Station on the JR Sanyo Honsen Line.

Annual Operating Results (Feb. 2015 - Jan. 2016)ü The tenant did not give consent to disclose theinformation.

ü Surrounding the hotel in the Shin-Nagata area are anumber of new buildings as a result of redevelopment
projects after the Great Hanshin Earthquake in 1995.

© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

32

Nest Hotel Sapporo Odori
Location

Sapporo, Hokkaido Prefecture

Hotel Type

Stay-Only

Number of Guest Rooms

117

Leasable Area

5,638.78 m

Structure

SRC, Steel, B1F/15F

Contractual Terms

Fixed + Variable Rent

Acquisition Price

1,450 mm yen

Term-end Appraisal Value

1,490 mm yen

Cap Rate

5.6%

2

January 2016 Actual
Occupancy

93.9%

ADR

7,327 yen

RevPAR

6,879 yen

Revenues

58 mm yen

Location and Features
ü This is a stay-only hotel conveniently located in thecenter of Sapporo, a 4-minute walk from Odori
Station on the Namboku Subway Line. The area
attracts many visitors, generating significant demand
as a place to stay for business and pleasure.
ü The hotel was rebranded as Nest Hotel Sapporo
Odori in December 2013. The hotel expects to attract
more guests due to the Sapporo’s growing tourism
demand and its relatively spacious rooms of over
20m2.

Annual Operating Results (Feb. 2015 - Jan. 2016)100

Occupancy (left, %)RevPAR (right, yen)
18,00090

15,00080

12,000

70

9,000

60

6,000

50
Feb. 2015

ADR (right, yen)

3,000
May 2015© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Aug. 2015

Nov. 2015

33

Valie Hotel Tenjin
Location

Fukuoka, Fukuoka Prefecture

Hotel Type

Stay-Only

Number of Guest Rooms

77

Leasable Area

1,910.94 m

StructureRC, 8F

Contractual Terms

Fixed + Variable Rent

Acquisition Price

1,380 mm yen

Term-end Appraisal Value

1,690 mm yen

Cap Rate

4.9%

2

January 2016 Actual
Occupancy

85.4%

ADR

8,998 yen

RevPAR

7,668 yen

Revenues

39 mm yen

Location and Features
ü This is a stay-only hotel with 77 rooms: 35 rooms of
15m2 with double-sized beds, 35 rooms of 15m2 withtwin-sized beds, and seven 17m2 twin rooms. All
rooms were renovated in 2015.
ü The hotel is in Tenjin, Fukuoka’s most vibrantbusiness, shopping, and entertainment district. The
hotel is a 6-minute walk from Tenjin Station on the
Kuko Subway Line and just a 2-minute walk from
Tenjin Station’s nearest exit. Conveniently locatedand attracting many visitors as a place for shopping,
Tenjin is the most popular travel destination andhotel area in Fukuoka.
ü Situated adjacent to Meiji Dori and Showa Dori,major boulevards occupied by large-scale retailers
and high-rise office buildings, the hotel attracts
business travelers on weekdays and tourists on theweekends.

Annual Operating Results (Feb. 2015 - Jan. 2016)100

Occupancy (left, %)RevPAR (right, yen)
12,00090

10,000

80

8,000

70

6,000

60

4,000

50
Feb. 2015

ADR (right, yen)

2,000
May 2015© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Aug. 2015

Nov. 201534

Appendix© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

35

Portfolio Details
As of January 31, 2016

Use

Hotel

No.

Property

Area

Hotel Type

Contractual
Terms
Variable +Fixed Rent
Variable +Fixed Rent
Variable +Fixed Rent
Variable +Fixed Rent
Variable +Fixed Rent

001

Smile Hotel Kyoto Shijo

Kinki

Stay-Only

002

Hotel Vista Premio Kyoto

Kinki

Stay-Only

003

Hotel Wing
International Nagoya

Tokai

Stay-Only

004

Nest Hotel Sapporo Ekimae

Hokkaido

Stay-Only

005

Chisun Inn Osaka Hommachi

Kinki

Stay-Only

006

Comfort Hotel Hamamatsu

Tokai

Stay-Only Fixed Rent

007

Hotel Suave Kobe Asuta

Kinki

Stay-Only

008

Nest Hotel Sapporo Odori

Hokkaido009

Valie Hotel Tenjin

KyushuVariable +Fixed Rent
Variable +Stay-Only
Fixed Rent
Variable +Stay-Only
Fixed Rent

Location
Kyoto,
Kyoto Prefecture
Kyoto,
Kyoto Prefecture
Nagoya,Aichi Prefecture
Sapporo,Hokkaido Prefecture
Osaka,
Osaka Prefecture
Hamamatsu,
Shizuoka Prefecture
Kobe,
Hyogo Prefecture
Sapporo,Hokkaido Prefecture
Fukuoka,
Fukuoka Prefecture
Total

Acquisition
Book
Price
Value
(mm yen) (mm yen)

Leasable
Area
(m 2)

Occupancy(%)

Jan 2016 Appraisal
Value(mm yen)

Cap rate
(%)

4,480

4,524

4,891.84

100.0

4,580

5.1

3,600

3,635

3,867.66

100.0

3,730

4.6

2,670

2,697

5,255.66

100.0

2,760

5.2

2,160

2,182

5,734.93

100.0

2,220

5.7

1,630

1,650

3,690.00

100.0

1,720

4.7

1,550

1,563

4,173.92

100.0

1,640

5.8

1,490

1,507

4,633.16

100.0

1,550

5.4

1,450

1,464

5,638.78

100.0

1,490

5.6

1,380

1,416

1,910.94

100.0

1,690

4.9

20,41020,642

39,796.89

100.0

21,380Below are the prefectures located in each “Area”:
Hokkaido: Hokkaido Prefecture
Tokai: Gifu, Shizuoka, Aichi, and Mie Prefectures
Kinki: Osaka, Hyogo, Kyoto, Shiga, Nara, and Wakayama Prefectures
Kyushu: Fukuoka, Saga, Nagasaki, Kumamoto, Oita, Miyazaki, and Kagoshima Prefectures© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

36

Asset-Level Financialsは当初予想より9.4%上昇(thousand yen)No.

Property

(A)

Total

001

002

004

005

006

008

009

Smile Hotel
Kyoto Shijo

Hotel Vista
PremioNest Hotel
SapporoEkimaeChisun Inn
Osaka
HommachiComfortHotel
Hamamatsu

Nest Hotel
SapporoOdori

Valie Hotel
TenjinOther

Real EstateManagement
Revenue

197,950

34,87925,446

16,922

12,20018,761

14,364

19,27056,104

Fixed Rent

119,616

7,292

25,416

7,089

12,20018,761

2,427

7,794

38,633

Variable Rent

66,87027,586

30

9,832

0

0

11,937

11,475

6,008

Other Rent

11,463

0

0

0

0

0

0

0

11,463

Real EstateManagement
Expenses

17,595

899

776

4,128

506

426

3,771

722

6,364

Outsourcing
Fees

3,091

303

599

303

348

303

303

303

626

Insurance

385

55

37

53

36

34

56

19

91

Maintenanceand Repair
Expenses

1,990

420

0

645

0

0

553

0

372

Other
Expenses

12,127

120

139

3,126

121

87

2,858

399

5,274

(C) NOI(A)-(B)

180,355

33,98024,67012,793

11,693

18,335

10,592

18,54849,740(D) Depreciation

50,074

7,540

6,273

6,013

2,098

7,296

7,082

3,442

10,327(E) Net Rental
Income(C)-(D)

130,280

26,43918,397

6,780

9,595

11,038

3,509

15,10539,412(B)

Rents for Hotel Wing International Nagoya, Hotel Suave Kobe Asuta, and retail rents are included in “Other,” as the tenants did not give consent todisclose the data.

© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

37

Contractual Terms and Operating Results
Contractual Terms(thousand yen)

January 2016
131,079
119,616
11,463
66,870
197,950

Fixed Rent
Fixed Rent From Each Tenant
Other (Rent From Retail Tenants)
Variable Rent
Total

Ratio
66.2%
60.4%
5.8%
33.8%
100.0%

Portfolio Operating Results (Feb. 2015 - Jan. 2016)
Occupancy (left, %)(%)

ADR (right, yen)

(yen)

RevPAR (right, yen)100

10,000

90

8,000

80

6,000

70

4,000

60

2,000

50

0
February
2015

March

April

May

June

July

AugustSeptember

OctoberNovember December© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

January
2016

38

Hotel Market Environment (1)Japanese Government Policy Supportive of Inbound Tourism
No. of Inbound Tourists

No. of Guests Staying at Domestic Hotels(mm persons)(mm persons)
40

Japan’s Tourist Policy

500

30

450

30

396

400
20

382

20

348

20

350
309

13
10

359
339

2007
Tourism-based Country
Promotion Basic Act

301

300

8

10

2003
Visit Japan Campaign
launched

6

250
0
2011

2012

2013

2014

2015

2020

2030

200
2008

Inbound Tourist Expenditure Trends(billion yen)
5,000
Expenditure per Person (right)

129
3,000

2012

2013

2014

3,477

2012
International flights
launched bydomestic LCCs

30

25

136

2011

(%)

151

4,000

2010

Inbound Tourist Ratio by Prefecture (Jan.-Dec. 2015)(thousand yen)
200
176

Expenditure (left)

2009

2008
International flights
launched by int’l LCCs

23.1

150
20

■ Prefectures where Ichigo Hotels
are located.

113
100

14.0

15

2013
Relaxation ofvisa requirements

2,028
2,000

10.2
10

1,417
1,000

814

7.8

1,086

50

6.1
4.8

5

0

0
2011

2012

2013

2014

2015

3.8

3.4

3.3

2014 - 2015
Additional relaxation ofvisa requirements

0
Tokyo

Osaka

Hokkaido

Chiba

Kyoto

Okinawa

Aichi

Kanagawa Fukuoka© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

39

Hotel Market Environment (2)Global Increase in International Tourism, Especially to Asia
International Tourists Visiting Europe, US, and Asia (logarithmic axial graph; mm persons)
Visitors by Country in 2013(mm persons)

8.00
100.00France

7.75
56.23

US

France (84.73)

China
Italy

US (69.77)
China (55.69)

GermanyUK
Thailand

7.50
31.62

Hong Kong

Malaysia

7.25
17.78

19.74

Italy (47.70)
Germany (31.55)
UK (31.17)

GreeceJapan
South Korea
13.41
Singapore

7.00
10.00

Thailand (26.55)
Malaysia (25.72)

Vietnam
Australia

6.75
5.62

Hong Kong (25.66)
Greece (17.92)
South Korea (12.18)
Singapore (11.90)

6.50
3.16

New Zealand

Japan (10.36)
Vietnam (7.57)

6.25
1.78

Australia (6.38)
New Zealand (2.63)

1.00
6.00
1995

2000

2005

2010

2015

Source: Mitsubishi UFJ Trust and Banking Corporation (December 30, 2015, Real Estate Market Report), based on data provided by the World Bankand Japan National Tourist Organization© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

40

Strengths of Ichigo Hotel REIT
Making Maximum Use of Sponsor Ichigo’s Capabilities to Drive Growth
Ichigo’s Business Model
Hotel

Value-Add Business Model

Real Estate

IchigoIchigo Hotel REIT
(3463)

Acquisition

ValueAdd

Other
Ichigo Office REIT
(8975)

Sale

Real Estate

Acquisition
External
Sale

Infrastructure Fund
(TBD)

Increase Asset Value

Ichigo’s Collaborative Asset Management Structure
Ichigo Real Estate Investment Advisors

Ichigo (2337)

Real Estate Division
Asset management anddirect communication with tenantsHotel REIT Division
9 Assets

Engineering & Architecture
Collaboration
RobustManagement
Structure

Smart CAPEX
Value-Add Solutions

Cumulative assets >1.6 trillion yen
by architects and development
specialists© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

41

Hard/Soft Factors Considered in Asset Acquisitions
Hard

Location Competitiveness
LocationIs the asset located near an airport, train station, business center, etc., and is it likely there will be sufficientregular customer traffic?

Hard

Building

Physical Condition of Building
What is the physical condition of the asset and how well has it been maintained? Is the physical conditioncompetitive when compared to other similar assets?

Hard

Value-Add
Opportunity

Opportunity to Benefit from Ichigo Value-Add ExpertiseWill Ichigo be able to deploy value-add capex and other capabilities to create a stable and/or growing revenue
stream?

Soft

Operator

Skill and Track Record of Operator
What are the likely capabilities of the operator and is the operator well-positioned to maintain stable income
and/or increase revenue in the future?

Soft

Cash Flow
AnalysisAnalysis of Cash Flows and Rental Structure
How will the amount and timing of expected cash flows from the asset affect the portfolio as a whole? Is theexisting rate structure the most appropriate?

© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

42

Loan Details (as of January 31, 2016)
As of January 31, 2016
Balance(mm yen)

Borrowing

LenderTerm Loan I

Sumitomo Mitsui Banking Corporation; Mizuho Bank,
Ltd.; Shinsei Bank Limited; Resona Bank, Limited

Term Loan II

Sumitomo Mitsui Banking Corporation; Mizuho Bank,
Ltd.; Shinsei Bank Limited; Resona Bank, Limited

Total

Distribution of Lenders

Contractual Terms

Borrowing Rate

Drawdown Date

Maturity Date

3,250

0.77091%

November 30, 2015

November 30, 2018

5,250

1.08000%

November 30, 2015

November 30, 2020

8,500

Average 0.96%

Distribution of Repayment Dates(mm yen)

6,000
5,250

Resona
Bank
10%

5,000

4,000

Shinsei Bank
15%

SMBC
40%

Variable Rate
38%

3,250

3,000

Fixed Rate
62%
Mizuho Bank
35%

2,000

1,000

0
July January July January July January July January July January July
2016
2017
2017
2018
2018
2019
2019
2020
2020
2021
2021

© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

43

Post-IPO Share Price Performanceü Share price above IPO priceü Outperforming TSE REIT index to datePost-IPO Share Prices (November 30, 2015 — March 11, 2016)
Share Price on Listing Date (November 30, 2015)
Issue: 106,000 yen

Initial: 104,100 yen

Low: 103,800 yen

High: 112,000 yen

Closing: 109,200 yen(yen)(Shares)

150,000

30,000145,000
25,000140,000
135,000

20,000130,000
125,000

15,000120,000
10,000115,000
110,000

5,000

105,000
100,000
11/30

0
12/7

12/14

12/21

Turnover (right)

12/28

1/4

1/11

1/18

Share Price (left)

1/25

2/1

2/8

2/15

2/22

2/29

3/7

TSE REIT Index (left)(Note) In the above graph, the TSE REIT Index is indexed by setting its November 30, 2015 closing price to match that of Ichigo Hotel REIT (109,200 yen).

© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

44

Shareholder Composition (as of January 31, 2016)
Major Shareholders

Number of Shares by Shareholder Type
Name

Shares #Share %

1

Japan Trustee Services Bank, Ltd., Trust Account25,08918%

2

Trust & Custody Service Bank, Ltd., Securities Investment Trust
Account

17,78613%

3

The Master Trust Bank of Japan, Trust Account11,4748%

4

Ichigo Inc. (Sponsor)

6,500

5%

5

MSIP CLIENT SECURITIES

6,423

5%

6

The Nomura Trust and Banking Co., Ltd., Investment Trust
Account

5,322

4%

7

SIX SIS LTD.

4,470

3%

8

MSCO CUSTOMER SECURITIES

3,988

3%

9

SBI SECURITIES CO., Ltd.

1,782

1%

10

CBLDN STANDARD LIFE INVESTMENT COMPANY II GLOBAL REIT FUND
Total

1,602

1%

84,43661%

Foreign
Corporations& Individuals
29,798Domestic
Individuals &Others29,557

Domestic
Corporations
15,189Financial
Institutions
63,956

Number of Shareholders by Type

Domestic
Individuals& Others
4,198
Foreign
Corporations& Individuals
38
Domestic
Corporations
117

Financial
Institutions
17© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

45

Ichigo Hotel REIT Overview (as of January 31, 2016)
Investment Corporation
Name

Ichigo Hotel REIT Investment Corporation (Ichigo Hotel REIT)

Securities Code3463

Address

1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo

Executive Director

Osamu Miyashita

Portfolio

9 assets

Portfolio Value

20,410 mm yen (acquisition price basis)

Fiscal Periods

January (August 1 - January 31) and July (February 1 - July 31)

Asset Management Company
Name

Ichigo Real Estate Investment Advisors Co., Ltd.

President & Representative
Statutory Executive Director

Wataru Orii

© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

46

Disclaimer
These materials are for informational purposes only, and do not constitute or form a part of, and should not be construed as, anoffer to sell or a solicitation of an offer to buy any securities of Ichigo Hotel REIT Investment Corporation (Ichigo Hotel REIT).
These materials may contain forward-looking statements regarding the intent, belief or current expectations of management of
Ichigo Hotel REIT with respect to financial condition and future results of operations. These statements are based on certain
assumptions founded on currently available information. Accordingly, such statements are subjects to risks, uncertainties andassumptions and there is no assurance as to actual financial conditions or results of operations. Actual results may vary fromthose indicated in the forward-looking statements. Accordingly, please refrain from solely relying on these statements.
These materials have been created by the management of Ichigo Hotel REIT and Ichigo Real Estate Investment Advisors Co.,
Ltd. (IRE) with the belief that the information contained is accurate. However, there is no assurance given as to the accuracy,
certainty, validity or fairness of any such information. Please note that the content of these materials is subject to revision or
retraction without prior notice.
This document is a translation. If there is any discrepancy between the Japanese version and the English translation, theJapanese version shall prevail. No copying or reproduction of these materials or part of these materials is allowed withoutobtaining prior consent from Ichigo Hotel REIT and IRE.

Ichigo Hotel REIT IR Desk
TEL：03-3502-4892 FAX：03-3502-4876
IR_Hotel@ichigo.gr.jp
www.ichigo-hotel.co.jp/english
Ichigo is Japan’s first zero-carbon listed real estate company. We are taking
responsibility for our environmental footprint by offsetting our carbon emissions
and investing in low-carbon technologies such as solar energy.

© 2016 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

47