Creating peace of mind through honest and committed management.

October 26, 2015
REIT Issuer
Ichigo Hotel REIT Investment Corporation (3463)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Osamu Miyashita, Executive Director
Asset Management Company
Ichigo Real Estate Investment Advisors Co., Ltd.
Representative: Wataru Orii, President & Representative Statutory Executive Officer
Inquiries: Hiroto Tajitsu, Head of Administration & Statutory Executive Officer
Tel: +81-3-3502-4892

Earnings and Dividend Forecasts for the January 2016,
July 2016, and January 2017 Fiscal Periods
Ichigo Hotel REIT Investment Corporation (“Ichigo Hotel REIT”) hereby announces its
earnings and dividend forecasts for the January 2016, July 2016, and January 2017 fiscal
periods.
Earnings and Dividend Forecasts

January 2016
(First Period)
July 2016(Second Period)
January 2017
(Third Period)
1

Dividendper Share1(yen)

Dividend in
Excess ofEarnings
per Share
(yen)

31

227

0

320

319

2,304

0

305

304

2,197

0

Operating
Revenue(millionyen)

Operating
Profit(millionyen)

Recurring
Profit(million
yen)

178

74

32

701

412

687

398

Net
Income(millionyen)

Dividend per Share does not include dividend in excess of earnings per share.
(Reference) Forecast number of shares outstanding at the end of each fiscal period and forecast
net income per share respectively:
January 2016
July 2016
January 2017
(Note 1)

138,500 shares
227 yen138,500 shares 2,304 yen
138,500 shares 2,197 yen

Ichigo Hotel REIT’s fiscal periods are February – July and August – January. Ichigo
Hotel REIT’s first period runs from the day the REIT was founded on July 22, 2015
to January 31, 2016. The REIT’s actual operating timeframe during the first period is
November 30, 2015, the day of the asset acquisitions, to January 31, 2016.

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding earnings and dividend forecast for the January 2016, July
2016, and January 2017 fiscal periods by Ichigo Hotel REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to referto Ichigo Hotel REIT's prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

1(Note 2) The issuance price of new shares used to calculate the forecast presented above is
100,000 yen per share.
(Note 3) The forecasts presented above for the January 2016, July 2016, and January 2017
periods are based on certain preconditions set out below in “Preconditions for theJanuary 2016, July 2016, and January 2017 Earnings Forecasts.” The preconditions
are subject to change due to such factors as tenant turnover, property changes,
unexpected maintenance and repair costs and other expenses, fluctuations in interest
rates, and the issuance of additional shares. The actual operating revenue, operating
profit, recurring profit, net income, and dividend per share (excluding the dividend inexcess of earnings per share) may vary due to changes in circumstances. These
forecasts should not be construed as a guarantee of such performance or results.
(Note 4)

Ichigo Hotel REIT will make a forecast revision should there be a substantial
discrepancy between the forecast and actual operating results.

(Note 5)

Ichigo Hotel REIT will list its shares on the Tokyo Stock Exchange (“TSE”) on
November 30, 2015.

(Note 6)

Fractions are rounded off to the nearest full unit.

* Distribution of this material: the Kabuto Club, the press club of the Ministry of Land,
Infrastructure, Transport, and Tourism, and the press club for construction industry newspapers
at the Ministry of Land, Infrastructure, Transport, and Tourism.

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding earnings and dividend forecast for the January 2016, July
2016, and January 2017 fiscal periods by Ichigo Hotel REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to referto Ichigo Hotel REIT's prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

2

Preconditions for the January 2016, July 2016, and January 2017 Earnings Forecasts
Item

Preconditions

PeriodJanuary 2016 (First Fiscal Period): July 22, 2015 –January 31, 2016 (194 days)
July 2016 (Second Fiscal Period): February 1, 2016 –July 31, 2016 (182 days)
January 2017 (Third Fiscal Period): August 1, 2016 –January 31, 2017 (184 days)

Portfolio Assets

 9 assets (“To-be Acquired Assets”), with no additional acquisitions or sales before the end ofJanuary 2017.
 The total number of portfolio assets may change due to acquisitions or sales.

Number of
Shares 138,500 shares: the sum of 3,000 shares issued and outstanding as of today plus 129,000 shares
to be issued from this initial public offering and a maximum of 6,500 shares to be issued from athird-party allotment (should the over-allotment option be exercised).
 The forecast assumes there will be no additional new issuance before the end of January 2017.
 Dividend per Share is based on the 138,500 shares issued and outstanding as of the end ofJanuary 2016, July 2016, and January 2017 fiscal periods.
 Rental revenue is calculated based on the information provided by the current owners of the
To-be Acquired Assets while taking into consideration such factors as tenant trends, thecompetitiveness of the properties, and market conditions.
Assumed Operating Performance
January 2016
(First Period)

Operating
Revenue

July 2016(Second Period)

January 2017
(Third Period)

Occupancy Ratio1
(%)

88.3

92.6

91.9

ADR2,3 (yen)

7,189

8,283

8,333

1

Occupancy Ratio is calculated from the following formula:
Occupancy Ratio = Total number of guest rooms occupied during the period/(total number ofguest rooms * number of days hotel was in operation during the period)2
ADR or Average Daily Rate is calculated from the following formula:
ADR = Total sales from accommodation (excluding restaurant charges and other service
fees)/number of guest rooms occupied during the period (rounded to the nearest full unit)
3
ADR does not include rent from retail tenants at Hotel Vista Premio Kyoto and Chisun Inn
Osaka Honmachi.

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding earnings and dividend forecast for the January 2016, July
2016, and January 2017 fiscal periods by Ichigo Hotel REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to referto Ichigo Hotel REIT's prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

3

Minimum Guaranteed Rent and Variable Rent at Smile Hotel Kyoto Shijo
Minimum Guaranteed Rent: 64,975,890 yen p.a.
Variable Rent = GOP of the month - (Minimum Guaranteed Rent + 2% of revenue+10% of the GOP) (GOP is Gross Operating Profit)(Million yen)
January 2016
(First Period)

July 2016(Second Period)

January 2017
(Third Period)

Minimum Guaranteed
Rent

7

30

34

Variable Rent

25

127

112

Total

32

157

147

1

Operating
Revenue

Minimum Guaranteed Rent is the amount agreed upon in advance based on the monthly
operation budget for from January through December 2016.
2
GOP or Gross Operating Profit is the hotel revenues minus the operating costs of the hotel.
The operating costs of the hotel generally include the following items: revenues, labor costs,
operation costs (linens, amenities, outsourcing expenses for maintenance and management,utilities expenses, and supplies expenses), sales promotion costs, and indirect costs(communications expenses, commission charges, and taxes associated with hotel operations).

Fixed Rent and Variable Rent at Hotel Vista Premio Kyoto
Fixed Rent: 12,500,000 yen per month
Variable Rent: 35% of amount in excess in case GOP exceeds 165 million yen(Million yen)
January 2016
(First Period)

July 2016(Second Period)

January 2017
(Third Period)

Fixed Rent

25

75

75

Variable Rent

0

0

13

Total

25

75

88

1

Fixed rent is the monthly fixed rent.

2

Variable rent occurs in case annual actual GPO exceeds 165 million yen.

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding earnings and dividend forecast for the January 2016, July
2016, and January 2017 fiscal periods by Ichigo Hotel REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to referto Ichigo Hotel REIT's prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

4

Minimum Guaranteed Rent and Variable Rent at Nest Hotel Sapporo Ekimae
Minimum Guaranteed Rent: 63,521,729 yen p.a.
Variable Rent = GOP of the month - (Minimum Guaranteed Rent + a certain percentage ofrevenues of the month + a certain percentage of the GOP of the month)(Million yen)
January 2016
(First Period)

July 2016(Second Period)

January 2017
(Third Period)

Minimum Guaranteed
Rent

7

31

32

Variable Rent

6

55

51

Total

13

86

83

Minimum Guaranteed Rent and Variable Rent at Nest Hotel Sapporo Odori
Minimum Guaranteed Rent: 47,152,040 yen p. a.
Variable Rent = GOP of the month - (Minimum Guaranteed Rent + a certain percentage ofrevenues of the month + a certain percentage of the GOP of the month)(Million yen)
Operating
Revenue

January 2016
(First Period)

July 2016(Second Period)

January 2017
(Third Period)

Minimum Guaranteed
Rent

2

23

23

Variable Rent

5

50

43

Total

7

74

66

Minimum Guaranteed Rent and Variable Rent at Valie Hotel Tenjin
Minimum Guaranteed Rent: 46,416,444 yen p. a
Variable Rent = GOP of the month - (Minimum Guaranteed Rent + a certain percentage ofrevenues of the month + a certain percentage of the GOP of the month)(Million yen)
January 2016
(First Period)

July 2016(Second Period)

January 2017
(Third Period)

Minimum Guaranteed
Rent

7

21

24

Variable Rent

5

21

20

Total

13

43

44

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding earnings and dividend forecast for the January 2016, July
2016, and January 2017 fiscal periods by Ichigo Hotel REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to referto Ichigo Hotel REIT's prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

5Fixed Rent and Variable Rent at Chisun Inn Osaka Honmachi
Fixed rent: 6,000,000 yen/month
Variable Rent 1): 35% of the amount exceeding 228,572,000 yen when the total amount ofhotel room revenue p.a. is more than 228,572,000 yen and less than
286,000,000 yen.
Variable Rent 2): 15% of the amount exceeding 286,000,000 yen in addition to 1) when the
total amount of hotel room revenue p.a. is more than 286,000,000 yen.
(Million yen)
January 2016
(First Period)

July 2016(Second Period)

January 2017
(Third Period)

Fixed Rent

12

36

36

Variable Rent

0

13

0

Total

12

49

36

Fixed Rent and Variable Rent at Comfort Hotel Hamamatsu
Fixed Rent: 9,226,981 yen per month
Operating
Revenue(Million yen)
January 2016
(First Period)
Fixed Rent

July 2016(Second Period)
18

January 2017
(Third Period)

55

55

Fixed Rent and Variable Rent at Hotel Suave Kobe Asuta and Hotel Wing International Nagoya(Million yen)
January 2016
(First Period)
Fixed Rent
Variable Rent

1

Total
1

July 2016(Second Period)

January 2017
(Third Period)

38

114

114

8

21

27

46

135

141

While it is the policy of Ichigo Hotel REIT to disclose information on variable rent for each
hotel, information on variable rent for the two hotels are not disclosed as the lessee of the two
hotels have not agreed to disclose the details.

 Operating Revenue assumes that tenants will fully pay their contractual rents.

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding earnings and dividend forecast for the January 2016, July
2016, and January 2017 fiscal periods by Ichigo Hotel REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to referto Ichigo Hotel REIT's prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

6

Operating
Expenses Rental expenses, Ichigo Hotel REIT’s principal operating expense, are calculated based on
historical data and information provided by the current owners of each asset, adjusted for
anticipated expense variations. (Depreciation expenses are treated separately.) Depreciation is calculated based on acquisition price including incidental costs using thestraight-line method. Depreciation of 48 million yen has been anticipated for the January 2016
period, 95 million yen for the July 2016 period, and 98 million yen for the January 2017 period.
 Generally, in a purchase and sale of real estate, property tax and city planning tax are divided
proportionally to time of use between the current owner and the purchaser and paid atacquisition. However, at Ichigo Hotel REIT, the prorated property tax and city planning tax
related to these acquisitions will be included in the acquisition cost and shall be excluded fromoperating expenses. The property tax and city planning tax will not be included in operating
expenses for the January 2016 fiscal year, while a part of the property tax and city planning tax
for the calendar year 2016 will be included in operating expenses from the July 2016 fiscal
period. The anticipated amount of property tax and city planning tax for the To-be Acquired
Assets to be included in the acquisition cost is 8 million yen.
 The amount for building maintenance and repair expenses are the estimated amount Ichigo
Real Estate Investment Advisors, Co., Ltd., the asset management company of Ichigo Hotel
REIT, has estimated as the necessary cost for each period. However, expenses for each period
could differ significantly from these estimated amounts for reasons including the variability ofmaintenance and repair expenses, costs due to unexpected building damage, etc. Actual
operating expenses may differ significantly from assumptions due to unforeseeable factors.

Non-Operating
Expenses Expenses related to the new share issuance and TSE listing, offering-related expenses, andexpenses related to the establishment of Ichigo Hotel REIT of 133 million yen in total are
anticipated for the January 2016 fiscal period. Ichigo Hotel REIT plans to amortize theexpenses associated with the new share issuance and listing of the shares for 36 months, andthe expenses for the establishment of Ichigo Hotel REIT for 60 months using the straight-line
method. Ichigo Hotel REIT anticipates such expenses of 11million yen in the January 2016
period, 18 million yen in the July 2016 period, and 18 million yen in the January 2017 period.
Interest expenses of 492 million yen are anticipated for the October 2015 period.
 Interest expenses and other borrowing-related expenses of 30 million yen are anticipated for theJanuary 2016 period, 73 million yen for the July 2016 period, and 73 million yen for theJanuary 2017 period.

Borrowings

 Ichigo Hotel REIT will borrow 9,200 million yen in November 2015 from Qualified
Institutional Investors prescribed in Article 2(3)(i) of Financial Securities and Exchange Act aswell as in Article 67-15 of Act on Special Measures concerning Taxation. Ichigo Hotel REIT
anticipates the repayment of borrowings for the To-be Acquired Assets and future asset
acquisitions from the net proceeds from a maximum of 6,500 shares to be issued through athird-party allotment (should the over-allotment option be exercised).
 LTV may change due to the issue price of shares issued in this new share issuance.

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding earnings and dividend forecast for the January 2016, July
2016, and January 2017 fiscal periods by Ichigo Hotel REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to referto Ichigo Hotel REIT's prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

7

Dividend per
Share Dividends per share are based on the assumption that distribution will comply with thedividend distribution policy stipulated in Ichigo Hotel REIT’s Articles of Incorporation.
 The dividend per share amount is subject to change due to such factors as tenant turnover,property changes, unexpected maintenance and repair costs and other expenses, fluctuations ininterest rates, and the issuance of additional shares.

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

Other The performance forecasts are based on the assumption that revisions impacting the forecast
figures above will not be made to laws and ordinances, the tax system, accounting standards,
listing rules, rules of the Investment Trusts Association, Japan, etc.
 Performance forecasts are based on the assumption that there will be no unexpected materialchange in general economic trends, real estate market conditions, etc.

The forecasts presented above are current figures based on certain preconditions. Accordingly,
the actual operating revenue, operating income, recurring profit, net income, and dividend pershare may vary due to changes in circumstances. Ichigo Hotel REIT does not plan on making
any dividend distribution in excess of earnings per share or retained earnings.

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shallprevail. This document is an English translation of a press release for public announcement regarding earnings and dividend forecast for the January 2016, July
2016, and January 2017 fiscal periods by Ichigo Hotel REIT, and has not been prepared for the purpose of solicitation of investment. We caution investors to referto Ichigo Hotel REIT's prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility.

8