Ichigo Hotel REIT(3463)

Share Buyback (Supplementary Disclosure)
October 10, 2017

Ichigo Hotel REIT Investment Corporation (3463)
Ichigo Investment Advisors Co., Ltd.

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

www.ichigo-hotel.co.jp/english

This material is a summary of today’s following two releases detailing
Ichigo Hotel REIT’s share buyback to grow shareholder value:“Share Buyback”“Amendment to Management Guidelines of Asset Management
Company (Share Buybacks and Cancellations)”© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

Ichigo Hotel REIT Post-IPO GrowthNOIDividend

JPY 525M → JPY 1.52B (+190.0%)

JPY 1.52B(20 hotels)

JPY 1.46B(19 hotels)

JPY 4,200 → JPY 6,411 (Forecast) (+52.6%)

JPY 4,200

JPY 6,238

JPY 6,411 (Forecast)

JPY 3,101(July 2017)

JPY 3,224(July 2018)

JPY 3,137(January 2017)

JPY 3,187(January 2018)

January 2017& July 2017

January 2018 &July 2018 (Forecast)JPY 2,825(July 2016)
JPY 525M *(9 hotels)
January 2016

JPY 699M(9 hotels)

July 2016

JPY 1,375(January 2016)*

January 2017

July 2017

January 2016
& July 2016

* January 2016 actual NOI of JPY 180 million converted to full-period NOI* January 2016 actual dividend of JPY 471 converted to full-period dividend

Portfolio Size

NAV

JPY 20.4B → JPY 49.1B (+140.6%)+JPY 1.8B(Hotel acquired Aug 2017)

JPY 20.4B(9 hotels)

JPY 20.4B(9 hotels)

January 2016

July 2016

Per-Share NAV: JPY 107,461 → JPY 139,940 (+30.2%)■ Unrealized gains

JPY 47.6B(19 hotels)

JPY 49.1B(20 hotels)

JPY 107,461
JPY 5,325

January 2017

July 2017

January 2016

JPY 113,393
JPY 11,256

July 2016

JPY 137,197
JPY 13,363

JPY 139,940
JPY 16,106

January 2017

July 2017* NAV = book value + unrealized gains© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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Share Buyback to Grow Shareholder Value
With current share price at a 20+% discount to NAV, buying back sharesand cancelling them grows value for shareholders
Reason for Share Buyback
Grow NAV• Grow per-share NAV by buying in shares at a discount to NAV andreducing share countGrow EPS• Grow EPS by reducing share countGrow Dividend

Message to Market• Grow per-share dividend by reducing share count• Send a clear message to market that Ichigo Hotel REIT’s shares areundervalued and that we are committed to growing shareholder value

Maximize Shareholder Value© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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Share Buyback and Cancellation
Share Buyback Summary
Number of Shares

Amount3,000 shares (maximum) (1.16% of total shares
outstanding, excluding treasury shares）
JPY 300 million (maximum)

Buyback Period

October 11, 2017 to December 29, 2017

Buyback Method

In-market purchases via trust bankShare Cancellation: Plan to cancel all shares acquired via this buyback
during the January 2018 period© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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Ichigo Hotel REIT Financial Metrics (July 2017)
Portfolio Size (acquisition price)

JPY 49.1BCash and Cash Equivalents

JPY 1.4B

Market Capitalization

JPY 26.5B

July 2017 Dividend (actual)

JPY 3,101January 2018 Dividend (forecast)

JPY 3,187

July 2018 Dividend (forecast)

JPY 3,224

NAV (per share)

JPY 139,940

Market Cap/NAV

0.80X (July 31, 2017 closing price)© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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MEMO

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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MEMO

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

9MEMO© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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Disclaimer
These materials are for informational purposes only, and do not constitute or form a part of, and should not be construed as,
an offer to sell or buy securities of Ichigo Hotel REIT Investment Corporation (Ichigo Hotel REIT).
These materials may contain forward-looking statements regarding the intent, belief or current expectations of Ichigo Hotel
REIT with respect to financial condition and future results. These statements are based on certain assumptions founded on
currently available information. Accordingly, such statements are subject to risks and uncertainties, and there is no assurance
as to actual financial conditions or future results. Actual results may vary from those indicated in the forward-looking
statements.
In creating these materials, Ichigo Hotel REIT and Ichigo Investment Advisors Co., Ltd. (IIA) have sought to provide accurate
information. However, there can be no assurance given as to the accuracy, certainty, validity or fairness of any suchinformation. The content of these materials is also subject to revision or retraction without prior notice.
This document is a translation. If there is any discrepancy between the Japanese version and the English translation, theJapanese version shall prevail.

Contact:
Ichigo Hotel REIT IR Desk (3463)
TEL: +81-3-3502-4854
E-mail： ir_ichigo-hotel@ichigo.gr.jp
www.ichigo-hotel.co.jp/english
Ichigo is Japan’s first zero-carbon listed real estate company. We are taking
responsibility for our environmental footprint by offsetting our carbon emissions
and investing in low-carbon technologies such as solar energy.

© 2017 Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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