This is an English translation of summarized financial results prepared for reference purposes only. Should there be any
inconsistency between the translation and the official Japanese text, the latter shall prevail.
August 20, 2013

Financial Report for the Midterm of Fiscal Period Ending December 2013
(January 1, 2013 – June 30, 2013)
Japan Hotel REIT Investment Corporation
Listing:
Securities code:
URL:
Representative:

Tokyo Stock Exchange8985
http://www.jhrth.co.jp/
Yukio Isa, Executive Director

Asset management company:
Representative:
Contact:

Japan Hotel REIT Advisors Co., Ltd.
Hiroyuki Suzui, Representative Director
Noboru Itabashi,
General Manager of Accounting and Reporting
Operations Division
Phone: +81-3-6422-0530

Scheduled date to file midterm Securities Report: September 20, 2013
Preparation of supplementary material on financial report: Yes
Holding the financial results briefing (for analysts and institutional investors): Yes

1. Summary of financial results for the midterm of the fiscal period ending June 30, 2013
(January 1, 2013 – June 30, 2013)(1) Operating results(Percentages show changes from the previous period)
Operating income

As ofOperating profit

Millions of yen

Current net profit for themidterm

Ordinary income% Millions of yen% Millions of yen% Millions of yen%June, 2013

4,780-

2,220-

1,418-

1,429-

December 31, 2012

7,283

408.8

2,595

246.0

1,412

197.5

19,031-

Current net profit per unit
As ofYenJune, 2013
December 31, 2012
(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)

615
9,711

Current net profit per unit for the midterm is calculated based on the average number of investment units during the fiscal period.
The midterm ended June 30, 2013 is the first midterm after change of the fiscal period. Therefore, comparison between the midterm
results for this year and that of the previous year is not available.
Because of the changed fiscal period, the fiscal period ended December 31, 2012 had the irregular financial settlement period that isfrom April 1, 2012 through December 31, 2012 (nine months). Accordingly, current net profit per unit is not annualized.
Net profit for the midterm ended June 30, 2013 includes capital loss (223 million yen). See <Reference 1> Operating results
excluding extraordinary factors, a. Midterm (Midterm of the fiscal period ending December 2013).
Current net profit for the fiscal period ended December 31, 2012 includes gain on negative goodwill (18,578 million yen), capital
loss resulting from real estate disposition (1,393 million yen) and asset impairment (958 million yen). See <Reference 1> Operating
results excluding extraordinary factors, b. Fiscal period ended December 2012.

(2) Financial position
Total assets
As ofNet assets

Equity ratio

Net assets per unit

Millions of yen

Millions of yen

June 30, 2013 (Midterm)

167,446

88,10752.6

33,612

December 31, 2012

139,623

69,01049.4

32,686(Note)%Net asset per unit is calculated based on the number of investment units issued at the end of the midterm.

Yen(3) Cash flows
Cash flows fromoperating activities
Fiscal period ended

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

June 30, 2013 (Midterm)

3,287(26,063)

25,707

11,853

December 31, 2012

4,334

(11,349)

8,927

8,922

2. Forecasts of results for the fiscal period ending December 31, 2013 (January 1, 2013 - December31, 2013)(Percentages show changes from the previous period)

Operating income

Fiscal period ending
December 31, 2013
(Reference)(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

Operating profit

Ordinary income

Current net profit

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%11,222

54.1

6,008

131.5

4,349

207.8

4,357

(77.1)

Dividend
per unit(Dividendfrom excessof earnings
exclusive)

Dividend
from excessof earnings
per unit

YenYen1,8030

Forecasted current net profit per unit for this fiscal period: JPY1,762.- (It is calculated based on the forecasted average numberof investment units during the fiscal period (2,437,171 units).
Dividend per unit is calculated based on the investment units issued as of the end of the midterm (2,621,281 units).
See below <Reference 2> Operating forecast for the full fiscal period ending December 2013, a. Operating results excluding
extraordinary factors for operating forecast excluding capital loss caused by disposition of Hotel Vista Hashimoto.
See below <Reference 2> Operating forecast for the full fiscal period ending December 2013, b. Asset acquisition anddisposition impacts on the full year.
The previous period indicated above (FY12/2012) is the irregular financial settlement period from April 1, 2012 throughDecember 31, 2012 (nine months).
The previous period ended December 2012 indicated above for comparison purpose includes extraordinary factors such as gain
on negative goodwill (18,578 million yen). See below <Reference 1> Operating results excluding extraordinary factors, b.
Fiscal period ended December, 2012.
The allowance for the dividend, JPY368M, is scheduled to be the source of this dividend.

3. Other(1) Changes in accounting policies, changes in accounting estimates, and restatement of prior period
financial statements after error corrections
a.
b.
c.
d.

Changes in accounting policies due to revisions to accounting standards and other regulations: No change
Changes in accounting policies due to other reasons: No change
Changes in accounting estimates: No change
Restatement of prior period financial statements after error corrections: No change(2) Number of units issueda.

b.

Total number of units issued at end of period (including treasury units)
As of June 30, 2013

2,621,281 units

As of December, 2012

2,111,281 units

Number of treasury units at end of period
As of June, 2013

0 unitAs of December, 2013

0 unit

* Status of audit procedures
As of the time of disclosure of this financial report, audit procedures for the midterm financial statements pursuant to theFinancial Instruments and Exchange Act of Japan are incomplete.
* Appropriate use of forecasts of results and other special items• The fiscal period ended December 31, 2012 had the irregular financial settlement period of nine months (from April 1,2012 to December 31, 2012). This midterm financial results are the first midterm financial results after change of thefinancial settlement period. Our financial settlement period is twelve months, with the fiscal year-end on
December 31, and the interim fiscal year-end on June 30.
• Forward-looking statements presented in this financial report including forecasts of results are based on information
currently available to us and on certain assumptions we deem to be reasonable. As such, actual operating and otherresults may differ materially from these forecasts due to a number of factors. Furthermore, we do not intend toguarantee any dividend amount by these forecasts.

<Reference 1>

Operating results excluding extraordinary factors

a. Midterm (Midterm of the fiscal period ending December 2013)
Following is the operating results excluding the extraordinary factor such as capital loss caused by Hotel Vista Hashimoto.
Actual of Midterm (six months)(Millions of yen)

Operating income

4,780

Operating profit

2,443

Ordinary income

1,642

Midterm net profit

1,652

b. Fiscal period ended December, 2012
Following is the operating results excluding extraordinary factors such as gain on the negative goodwill, capital loss causedby dispositions of hotels (Millennia Hotel Matsuyama and Hotel Resol Sapporo Minaminijo), and asset impairment loss for
Hotel Vista Hashimoto.
Actual of the first half of thefiscal year (nine months)(Millions of yen)

Operating income

7,283

Operating profit

3,988

Ordinary income

2,806

Current net profit

2,805<Reference 2>

Operating forecast for the full fiscal period ending December 2013

a. Operating results excluding extraordinary factors
Following is the operating forecast excluding the capital loss caused by disposition of Hotel Vista Hashimoto
Forecast for this fiscal term (twelve months)(Millions of yen)

Operating income

11,222

Operating profit

6,232

Ordinary income

4,572

Current net profit

4,581

NOI (Note 1)

9,662

NOI yield (Note 2)

6.2％

b. Asset acquisition and disposition impacts on the full year
Following is the operating forecast with the full year impacts (Note 3) of Hilton Tokyo Bay Hotel acquired during thismidterm and Hotel Vista Hashimoto disposed during this midterm:Forecast for this fiscal term (twelve months)(Millions of yen)

Operating income

11,781

Operating profit

6,545

Ordinary income

4,907

Current net profit

4,915

NOI (Note 1)

10,059

NOI yield (Note 2)

6.5％(Reference: Dividend per unit JPY1,879.-)

(Note 1) NOI = Real estate operating profit – Real estate operating expense + Depreciation expense + Loss on retirement ofnoncurrent assets(Note 2) NOI yield = NOI ÷Acquisition price(Note 3) Assumptions for calculating the full year Numerical figures of Hilton Tokyo Bay Hotel are forecast calculated for the period from January 2014 throughDecember 2014 (one year) based on the information provided by the seller, etc.
scheduled to be posted as the fixed asset tax and city planning tax.
It is not assumed to own Hotel Vista Hashimoto for full year.

JPY111M (9 months) are