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.

February 21, 2013

Financial Report for the Fiscal Period Ended December 31, 2012
(April 1, 2012 - December 31, 2012)
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 Securities Report:
Scheduled date to commence dividend payment:

March 22, 2013
March 22, 2013

Preparation of supplementary material on financial report: Yes(Amounts truncated to the nearest million yen)

1. Summary of financial results for the fiscal period ended December 31, 2012
(April 1, 2012 - December 31, 2012)(1) Operating results(Percentages show changes from the previous period)
Operating income

Fiscal period ended

Operating profit

Millions of yen% Millions of yen

Ordinary income% Millions of yen

Current net profit% Millions of yen%

December 31, 2012

7,283

408.8

2,595

246.0

1,412

197.5

19,031–March 31, 2012

1,431

0.8

750

(6.2)

474

(3.9)

473

(3.9)

Current net profit per unit

Return on equity (ROE)Yen%

Fiscal period ended
December 31, 2012
March 31, 2012
(Note 1)

(Note 2)

(Note 3)

Ordinary income
to total assets

Ordinary income
to operating income
%%

9,711

41.1

1.5

19.4

680

2.0

1.0

33.2

We have divided one investment unit into twelve effective on April 1, 2012. Current net profit per unit is calculated based on thepremise that the investment unit was divided at the beginning of the fiscal period ended March 31, 2012. Furthermore, current net
profit per unit for the fiscal period ended December 31, 2012 is calculated based on the average number of investment units during
the fiscal period.
Because of the changed fiscal period, the fiscal period ended December 31, 2012 has the irregular financial settlement period that isfrom April 1, 2012 through December 31, 2012 (nine months). Accordingly, current net profit for the fiscal period ended December31, 2012) is not the annualized net profit.
Current net profit for the fiscal period ended December 31, 2012 includes gain on negative goodwill (18,578 million yen) due to themerger, transfer loss resulted from the real estate dispositions (1,393 million yen) and impairment loss (958 million yen).

(2) Cash distributions
Dividend
per unit(Dividend fromexcessof earnings
exclusive)

Total dividends

Dividend fromexcess ofearnings per unit

Total dividend
from excess ofearnings

YenMillions of yen

Yen

Millions of yen

Fiscal period ended

Dividend to netassets

Payout ratio%%

December 31, 2012

1,427

3,012

00

15.8

4.3

March 31, 2012

8,166

473

00

100.0

2.0

(Note 1)

(Note 2)

(Note 3)Current net profit for the fiscal period ended December 31, 2012 includes gain on negative goodwill of 18,578 million yen recorded
under extraordinary income and it is not the source of the dividend. The source of dividend is calculated by adding provision for
dividends to unappropriated retained earnings after deducting gain on negative goodwill.
Because of the changed fiscal period, the fiscal period ended December 31, 2012 has the irregular financial settlement period that isfrom April 1, 2012 through December 31, 2012 (nine months). Accordingly, dividend per unit for the fiscal period ended December
31, 2012 is not the annualized dividend. The annualized dividend per unit calculated under the certain conditions is 1,621 yen.
Payout ratio shows figures that have been calculated using the following formula, rounding off to one decimal place:
Total dividends (excluding total dividends from excess of earnings) / Current net profit × 100(3) Financial position
Total assets
As ofNet assets

Equity ratio

Net assets per unit

Millions of yen

Millions of yen

December 31, 2012

139,623

69,01049.4

32,686

March 31, 2012

46,77323,63550.5

33,941(Note)%Yen

We have divided one investment unit into twelve effective on April 1, 2012. Net assets per unit are calculated based on the premisethat the investment unit was divided at the beginning of the fiscal period ended March 31, 2012. Furthermore, net assets per unit for
the fiscal period ended December 31, 2012 are calculated based on the number of investment units issued at the end of the fiscalperiod.

(4) Cash flows
Cash flows fromoperating activities
Fiscal period ended
December 31, 2012

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

4,334(11,349)

8,927

8,922

846

(40)

(602)

3,024

March 31, 2012

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

Operating income

Operating profit

Ordinary income

Current net profit

Dividendper unit
(Dividendfrom excessof earningsexclusive)

Dividend
from excessof earnings
per unit

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

Yen

Six months ending
June 30, 2013

4,228

–

1,933

–

1,185

–

1,185

–

––

Fiscal period ending
December 31, 2013

9,795

34.5

5,045

94.4

3,517

149.0

3,515(81.5)

1,670*0(Reference) Forecasted current net profit per unit (for the fiscal period ending December 31, 2013): JPY1,665.*The allowance for the dividend, JPY10M, 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 correctionsa.
b.

Changes in accounting policies due to revisions to accounting standards and other regulations: No change
Changes in accounting policies due to other reasons: Changed

c.
d.

Changes in accounting estimates: No change
Restatement of prior period financial statements after error corrections: No change(2) Number of units issueda.

Total number of units issued at end of period (including treasury units)
As of December 31, 2012
As of March 31, 2012b.

2,111,281 units
58,031 units

Number of treasury units at end of period
As of December 31, 2012

0 unitAs of March 31, 2012

0 unit* Status of audit procedures
As of the time of disclosure of this financial report, audit procedures for the financial statements pursuant to the Financial
Instruments and Exchange Act of Japan are incomplete.

* Appropriate use of forecasts of results and other special items• Due to a change to the fiscal year-end, the fiscal period ended December 31, 2012 has the irregular financial settlement
period of nine months (from April 1, 2012 to December 31, 2012), which differs from the period of the fiscal period ended
March 31, 2012 (from September 1, 2011 to March 31, 2012). Our future calculation period will be changed to 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 other results
may differ materially from these forecasts due to a number of factors. Furthermore, we do not intend to guarantee any
dividend amount by these forecasts.