Ichigo Preserves and Improves Real Estate[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

March 8, 2017
IssuerIchigo Hotel REIT Investment Corporation (3463)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Osamu Miyashita, Executive Director
www.ichigo-hotel.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, President
Inquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4892

Earnings and Dividend Forecast Revision for the January 2017 Fiscal Period
Ichigo Hotel REIT is revising up its January 2017 earnings and dividend forecast that wasannounced in the September 14, 2016 release “Financial Report for the July 2016 FiscalPeriod.”
1. January 2017 Earnings and Dividend Forecast Revision
Dividendper Share(JPY)

Operating
Revenue(JPY million)

Operating
Profit(JPY million)

Recurring
Profit(JPY million)

Net
Income(JPY million)

Previous Announced
Forecast (A)1,547933759758

2,917

Current AmendedForecast (B)1,560

978809808

3,137

Difference (B) - (A)+12+45+49+49+220

+0.7%

+4.8%

+6.4%

+6.4%

+7.5%

774

472

392391

2,825% Change
Reference:July 2016 Actual

Number of shares outstanding at the end of the January 2017 fiscal period: 257,584 shares
The forecast presented above is based on certain preconditions set out below in“Preconditions for the January 2017 Earnings Forecast.”

12. January 2017 Earnings and Dividend Forecast Revision Rationale
Ichigo Hotel REIT is revising up its forecast for operating profit and net income to JPY
978 million and JPY 808 million, respectively, to reflect better than expected operating
results, as detailed below. It is thus also revising up its dividend forecast by JPY 220 pershare.
a. Higher Rents at Variable Rent Hotels
Seven hotels with variable rents are generating higher rental income than forecast.
Operating revenue is thus expected to increase by JPY 12 million relative to the previousforecast.
b. Lower Operating and Non-Operating Expenses
Ichigo Hotel REIT’s actions to control and optimize expenses have decreased expectedoperating and non-operating expenses by JPY 36 million relative to the previous forecast,mainly attributable to a decrease in the cost of repairs.
3. July 2017 Earnings and Dividend Forecast
The forecast is currently unchanged.

2Preconditions for the January 2017 Earnings Forecast
Item

Preconditions

PeriodAugust 1, 2016 to January 31, 2017 (184 days)

Portfolio Assets

Operating
Revenue

OperatingExpenses

19 assets (N.B. for the ten assets acquired on August 17, 2016, the operating
period is just 168 days).
Within operating revenue, rental income is calculated based on actual
operating results for the August 2016 – January 2017 period (unaudited), andassumes that tenants will fully pay their contractual rents without delay ordefault.
• Fixed rent/minimum guaranteed rent: JPY 823 million (excluding rent fromretail tenants)• Variable rent: JPY 681 million• Other rent: JPY 54 million (includes rental income and utility expenses
from retail tenants at Hotel Vista Premio Kyoto, Chisun Inn Osaka
Hommachi, and Smile Hotel Tokyo Asagaya)• Total rental income: JPY 1,560 million
Within operating expenses, rental expenses are anticipated as follows:• Building maintenance and repair expenses: JPY 99 million (of which JPY
48 million is property and city planning taxes and JPY 9 million is repairexpenses)
 Depreciation: JPY 268 million
 Other expenses: JPY 3 million
 Total rental expenses: JPY 370 million
Total operating expenses other than rental expenses: JPY 211 million (ofwhich JPY 177 million is asset management fees)

Non-OperatingExpenses

Anticipated non-operating expenses are as follows: Interest expenses: JPY 83 million
 Borrowing-related expenses: JPY 61 million
 Expenses related to new share issuance: JPY 19 million
 Expenses related to establishment of Ichigo Hotel REIT: JPY 5 million

Borrowings

Total borrowings: JPY 19.5 billion as of January 31, 2017

Dividend per
Share

The dividend forecast assumes that distributions will comply with thedividend distribution policy stipulated in Ichigo Hotel REIT’s Articles ofIncorporation.

Dividend in
Excess ofEarnings per
ShareIchigo Hotel REIT does not plan on making any dividend distribution inexcess of earnings.

OtherThis forecast assumes that there are no material revisions to laws andregulations, the tax system, accounting standards, listing rules of the Tokyo
Stock Exchange, and rules of the Investment Trusts Association, Japan, andno material changes in the state of the economy and real estate marketconditions.

The forecasts presented above are current figures based on certain preconditions.
Accordingly, the actual operating revenue, operating profit, recurring profit, net income, anddividend per share may vary due to changes in circumstances.
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