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.

September 8, 2016
REIT Issuer
Ichigo 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 Revisions
for the July 2016 Fiscal Period
Ichigo Hotel REIT has revised up its July 2016 earnings and dividend forecast
announced in the March 16, 2016 release “Earnings and Dividend Forecast Revisions
for the July 2016 and January 2017 Fiscal Periods.”
I. July 2016 Earnings and Dividend Forecast Revision
Dividendper Share(yen)Operating
Revenue(million yen)

Operating
Profit(million yen)

Recurring
Profit(million yen)

Net
Income(million yen)Previous AnnouncedForecast (A)730

4233413402,455

Current Amended
Forecast (B)

774

472

392391

2,825

Difference (B-A)+44+49+51+51+370+6.0%+11.5%+14.9%+15.0%+15.0%

197

102

66

65

471

% Change
Reference:January 2016 Actual

Number of shares outstanding at the end of the July 2016 fiscal period: 138,500 shares
The forecast presented above is based on certain preconditions set out below in“Preconditions for the July 2016 Earnings Forecast.”
Amounts are rounded off to the nearest whole number. Percentages are rounded to thenearest tenth of a percent.

1II. July 2016 Earnings and Dividend Forecast Revision Rationale
Ichigo Hotel REIT has revised its forecast to reflect operating results that are higher thanforecast. Major factors underlying the revisions are as follows:(1) Higher Variable Rents
Four hotels with variable rents are generating higher rental income than forecast
on strong operating results. As such, operating revenue is expected to increase by
44 million yen relative to the previous forecast.
(2) Lower Operating Expenses
Ichigo Hotel REIT’s actions to control and reduce expenses are expected todecrease operating expenses by 5 million yen relative to the previous forecast.

III. Earnings and Dividend Forecasts for the January 2017 and July 2017 Fiscal Periods
The forecasts are currently unchanged.

2Preconditions for the July 2016 Earnings Forecast
Item

Preconditions

PeriodJuly 2016 Fiscal Period:
February 1, 2016 –July 31, 2016 (182 days)

Portfolio Assets

9 assets acquired on November 30, 2015

Within operating revenue, rental income is calculated based on actual
operating results for the February 2016 - July 2016 period (unaudited),and assumes that tenants will fully pay their contractual rents without
delay or default.
Operating Revenue • Fixed rent/minimum guaranteed rent: 387 million yen• Variable rent: 351 million yen• Other rent: 35 million yen (rental income from retail tenants at Hotel
Vista Premio Kyoto and Chisun Inn Osaka Hommachi)• Total rental income: 774 million yen
Within operating expenses, rental expenses are anticipated as follows:• Building maintenance and repair expenses: 71 million yen (of which 48
million yen is property and city planning taxes and 4 million yen is repairexpenses)• Depreciation: 101 million yen
Operating Expenses• Other expenses: 3 million yen• Total rental expenses: 176 million yen• Total operating expenses other than rental expenses: 125 million yen (ofwhich 89 million yen is asset management fees)

Non-OperatingExpenses

Anticipated non-operating expenses are as follows:• Interest expenses: 39 million yen• Borrowing-related expenses: 25 million yen• Expenses related to the new share issuance: 11 million yen• Expenses related to the establishment of Ichigo Hotel REIT: 5 millionyenBorrowings

Total borrowings: 8,500 million yen as of July 31, 2016

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 Excessof Earnings perShare

Ichigo Hotel REIT does not plan on making any dividend distribution inexcess of earnings per share or retained earnings.

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

The forecasts presented above are current figures based on certain preconditions. Accordingly, theactual operating revenue, operating income, recurring profit, net income, and dividend per share mayvary due to changes in circumstances.

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