Ichigo Hotel Reit Investment Corp. · TSE:3463

Ichigo Hotel Reit Investment — H2 FY2020 Earnings Presentation

67 slides from Ichigo Hotel Reit Investment's earnings presentation, Mar 16, 2020

  1. Slide 1: Corporate Presentation – January 2020 Fiscal Period

    Ichigo Hotel (3463) Ichigo Hotel January 2020 Fiscal Period Corporate Presentation March 16, 2020 Ichigo Hotel REIT Investment Corporation (3463) Ichigo Investment Advisors Co., Ltd. © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved. www.ichigo-hotel

  2. Slide 2: Make The World More Sustainable

    Make The World More Sustainable © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

  3. Slide 3: © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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

  4. Slide 4: © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.

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

  5. Slide 5: Agenda

    January 2020 Results  Highly-Stable, Diversified Hotel Portfolio  January 2020 Highlights  Lease Details  January 2020 Earnings Breakdown  Portfolio Growth Opportunity via Ichigo  Operating Results Down YOY on Drop in Sponsor Support Inbound Tourism  Launch of Ichigo J.League Shareholder  Re

  6. Slide 6: January 2020 Results

    January 2020 Results © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved. 6

  7. Slide 7: January 2020 Highlights

    January 2020 Highlights Results Details JPY 2,130M Net Income +JPY 731M (+52.3%) YOY • Record earnings due to gains on asset sales 2 Hotels (Kyoto & Naha) • Both hotels sold at prices significantly exceeding both Asset Sales (Total Sale Price: JPY 9.79B) book value & third-party appraisal value JPY

  8. Slide 8: January 2020 Earnings Breakdown

    January 2020 Earnings Breakdown (JPY million) Jan 2019 Jan 2020 vs. Forecast Forecast (B) Major Variation Factors (vs. Forecast) Actual Actual (A) (A)-(B) Operating Revenue 2,439 3,561 2,383 +1,177 Variable Rent 701 564 665 -101 Above forecast: 2 hotels; Below forecast: 10 hotels Fixed Rent 984 993

  9. Slide 9: Operating Results Down YOY on Drop in Inbound Tourism

    Operating Results Down YOY on Drop in Inbound Tourism Variable Rent Hotels (12 Hotels) Aug 1, 2018 Aug 1, 2019 Difference YOY – Jan 31, 2019 – Jan 31, 2020 Room Revenue (JPY M) 2,780 2,405 -375 -13.5% Total Revenue (JPY M) 3,234 2,822 -411 -12.7% RevPAR (JPY) 7,696 6,630 -1,066 -13.9% Occupancy 90.9

  10. Slide 10: RevPAR Down in All Areas, Particularly Osaka and Kyoto

    RevPAR Down in All Areas, Particularly Osaka and Kyoto 19 Hotels (excludes Grandpark-Inn Yokohama, Hotel Wing YOY by Region (Aug 2019 – Jan 2020) International Kobe Shin Nagata Ekimae, and Valie Hotel Hiroshima, and includes data for Hotel Vista Premio Kyoto up to RevPAR Occupancy ADR date sold, Oct

  11. Slide 11: Continuing Strong Demand for Business Hotels

    Continuing Strong Demand for Business Hotels No. of Guests by Hotel Type (August-December) Number of Inbound Tourists by Country/Region +4,000,000 Domestic Inbound +794,610 Country/ Aug-Dec 2019 % YOY +2,000,000 Region Total +505,600 -4,424,320 -788,810 +188,210 +318,560 0 Total 12,257,259 100% -1.6

  12. Slide 12: Highly Accretive Asset Sales

    Highly Accretive Asset Sales − Sold 2 hotels, one in Kyoto (Oct 2019) and one in Naha (Jan 2020), generating gains on sales of JPY 1.94B − Sale prices significantly exceeded book value & third-party appraisal value Hotel Vista Premio Kyoto Nest Hotel Naha – Sale completed in October 2019 – Sale comp

  13. Slide 13: Actions to Drive Earnings Growth

    Actions to Drive Earnings Growth © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved. 13

  14. Slide 14: Achieving Organic Growth at Contract Renewals

    Achieving Organic Growth at Contract Renewals Negotiating Higher Rents at Contract Renewals to Drive Organic Growth Timing Hotel Name Lease Terms Changes Variable+Fixed Renewal at • Increased fixed rent Jun 2017 Chisun Inn Osaka Hommachi Rent Higher Rent • Increased variable rent Hotel Wing Internat

  15. Slide 15: Operator Change to Generate Higher Earnings

    Operator Change to Generate Higher Earnings The OneFive Okayama* (formerly Comfort Hotel Okayama) − Hotel operator change from third-party operator to Ichigo-owned Hakata Hotels − New lease increases fixed rent and newly adds variable rent (Forecast to increase annual NOI by JPY 71M) − Deploying Ich

  16. Slide 16: Value-Add Capex to Generate Higher Earnings (1)

    Value-Add Capex to Generate Higher Earnings (1) NEST Hotels (4 Hotels) − Acquired Sapporo Odori & Sapporo Ekimae in November 2015 and Osaka Shinsaibashi & Matsuyama in August 2016 − Conducted value-add capex after acquisition to drive higher earnings and asset value − Fixed rent +JPY 11M p.a. at lea

  17. Slide 17: Value-Add Capex to Generate Higher Earnings (2)

    Value-Add Capex to Generate Higher Earnings (2) Smile Hotel Tokyo Asagaya (Acquired in August 2016) − Increased rent with new retail tenant on first floor & new external advertising lease − Driving higher earnings and asset value via guest room renovations & layout changes from single-bed rooms to t

  18. Slide 18: Acquisition: HOTEL EMIT SHIBUYA

    Acquisition: HOTEL EMIT SHIBUYA HOTEL EMIT SHIBUYA (Announced Jan 30, 2020; Completed Feb 25, 2020) − 6-minute walk from Shibuya Station, one of Tokyo’s top transportation hubs − Demand forecast to grow on back of inbound tourism growth − Acquired at 11% discount to third-party appraisal value − Wil

  19. Slide 19: Acquisition: Washington Hotel Plaza Shimonoseki Eki Nishi

    Acquisition: Washington Hotel Plaza Shimonoseki Eki Nishi Washington Hotel Plaza Shimonoseki Eki Nishi (Announced Feb 26, 2020; Completed Mar 12, 2020) − Located in Shimonoseki, Yamaguchi, one of the largest cities in the Chugoku region; 3-minute walk from Shimonoseki Station on the JR Sanyo Main Li

  20. Slide 20: Highly-Stable, Diversified Hotel Portfolio

    Highly-Stable, Diversified Hotel Portfolio Geographic Diversification (Acquisition-Price Basis) November 30, 2015 (IPO) July 31, 2019 March 12, 2020 Yokohama Yokohama Kobe Kobe 2.7% Nagoya 2.9% 2.9% Nagoya 2.7% 5.1% Kobe Osaka 4.9% Kyushu 7.3% 8.0% Kyushu 6.9% Osaka Osaka Nagoya 6.6% 16.9% 17.8% 13.

  21. Slide 21: Lease Details (as of January 31, 2020)

    Lease Details (as of January 31, 2020) Stability Upside Lease Term Fixed Rent Fixed + Variable Rent Total Contract Lease Lease Lease – Fixed Rent Yes Yes Yes – Fixed Portion of Revenue Variable Rent – Fixed Portion of Hotel GOP – Upside Rental Income JPY 428M JPY 165M JPY 964M JPY 1.56B (Jan 2020 Ac

  22. Slide 22: Portfolio Growth Opportunity via Ichigo Sponsor Support

    Portfolio Growth Opportunity via Ichigo Sponsor Support 18 Hotels (JPY 55B) in Ichigo Sponsor Pipeline as of January 31, 2020 − Lodging-focused hotels across Japan − Locations: Major cities such as Tokyo, Yokohama, Osaka, Kyoto, and Fukuoka Fukuoka Tokyo Osaka Fukuoka Yokohama © Ichigo Investment Ad

  23. Slide 23: Launch of Ichigo J.League Shareholder Program

    Launch of Ichigo J.League Shareholder Program Represents Two Firsts for a Shareholder Program in Japan − Ichigo is the first Japanese company to include not just its own shareholders, but also the shareholders of the REITs and YieldCo that it manages, in its shareholder program − Ichigo is the first

  24. Slide 24: July 2020 and January 2021 Forecasts

    July 2020 and January 2021 Forecasts © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved. 24

  25. Slide 25: July 2020 Forecast

    July 2020 Forecast Dividend -29.8% YOY (JPY million) Jul 2020 Jul 2020 Jul 2019 Previous Forecast Revised (B) - (A) Major Factors for Variation Actual (A) (Jan 2020) Forecast (B) Operating Revenue 1,789 1,446 1,474 -315 Variable Rent 735 505 477 -258 Expected RevPAR at Variable Rent Hotels: JPY 6,19

  26. Slide 26: January 2021 Forecast

    January 2021 Forecast Dividend -72.1% YOY (JPY million) Jan 2020 Jan 2021 (B) - (A) Major Factors for Variation Actual (A) Forecast (B) Operating Revenue 3,561 1,525 -2,035 Expected RevPAR at Variable Rent Hotels: JPY 6,206 (-6.3% YOY) Variable Rent 564 455 -108 Decrease due to acquisitions & sales:

  27. Slide 27: Ichigo’s Commitment to ESG

    Ichigo’s Commitment to ESG © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved. 27

  28. Slide 28: Ichigo Sustainability Policy

    Ichigo Sustainability Policy Harmony with the Environment Ichigo actively monitors and minimizes the environmental impact of its business operations. Energy Conservation, CO2 Reduction, and Recycling Ichigo seeks to contribute to a low-carbon, low-waste society by reducing energy consumption, extend

  29. Slide 29: Ichigo ESG – Environmental

    Ichigo ESG – Environmental Sustainable Real Estate Solar and Wind Energy: Safe and Clean Preserve & Enhance Existing Buildings Annual Power Generation Annual CO2 Reduction to End Wasteful Demolish & Rebuild 141,699,548 kWh 93,521,697 kg ‒ Lengthen useful life of real estate ‒ Shrink footprint by red

  30. Slide 30: Ichigo ESG – Social

    Ichigo ESG – Social Sports & Arts Children’s Cancer Treatment Supporting Outstanding, Supporting University of Miyazaki World-Class Athletes Faculty of Medicine’s Program for ‒ Weightlifting Children with Cancer ‒ Riflery ‒ Issued CSR bond & donated a portion of ‒ Track & Field underwriter commissio

  31. Slide 31: Ichigo ESG – Governance

    Ichigo ESG – Governance First J-REIT No Fixed Fee, Performance Fee-Only Structure  Performance-linked fee structure to support shareholder value creation  Pro-active, dynamic management of Ichigo Hotel assets on behalf of shareholders Best Practice Governance REIT Asset Management Company (AMC) Mo

  32. Slide 32: Appendix: Hotel Market Environment

    Appendix: Hotel Market Environment © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved. 32

  33. Slide 33: Growth Driver: Strong Inbound Demand

    Growth Driver: Strong Inbound Demand − New hotel supply forecast to peak in 2020 − Domestic demand firm while inbound demand continues to grow Growth in New Hotel Supply By Major City vs. March 31, 2018 Total Number of Tourists in Domestic Lodging Facilities (million persons) 600 Domestic Inbound 20

  34. Slide 34: Business Hotel Demand Strong and Growing

    Business Hotel Demand Strong and Growing Business hotels benefit from both robust domestic demand and growing inbound demand − 203M domestic business hotel guests in 2019, +10.7% YOY − 41M inbound business hotel guests in 2019, +24.1% YOY No. of Guests by Hotel Type (Domestic) No. of Guests by Hotel

  35. Slide 35: New Hotel Room Supply in Japan

    New Hotel Room Supply in Japan No. of New Hotel Rooms (vs. March 31, 2019) Existing Hotel Rooms New Supply % Increase of New Supply * Increase of new supply relative to existing hotel rooms calculated by Ichigo Investment Advisors based on Ministry of Health, Labor, and Welfare’s “Report on Public H

  36. Slide 36: Appendix: Portfolio Details

    Appendix: Portfolio Details © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved. 36

  37. Slide 37: Hotel Map

    Hotel Map Tokyo Kanto Hokkaido Hokuriku/Tokai C-1 C-3 B-1 A-1 A-2 A-3 D-1 D-2 D-3 D-4 Variable Rent Fixed Rent Smile Hotel Hotel Livemax Grandpark-Inn Nest Hotel Nest Hotel Comfort Comfort Hotel Hotel Wing Comfort Hotel Comfort Hotel Tokyo Asagaya Nihombashi- Yokohama Sapporo Ekimae Sapporo Odori Ho

  38. Slide 38: Portfolio Growth

    Portfolio Growth IPO January 2017 July 2017 through July 2019 January 2020 (November 30, 2015) Fiscal Period Fiscal Period Fiscal Period IPO Acquisitions PO Acquisitions July 2017 Jan 2018 Jan 2019 July 2019 9 hotels 10 hotels 1 hotel 1 hotel 1 hotel 2 hotels JPY 20.4B JPY 27.2B JPY 1.4B JPY 1.8B JP

  39. Slide 39: Hakata Hotels and PROPERA

    Hakata Hotels and PROPERA − Hakata Hotels, a consolidated subsidiary of Ichigo, is a Hotel Operator operating 5 hotels in the Hakata area − Hakata Hotels will deploy PROPERA, an AI-based revenue management system developed by Ichigo to maximize earnings and increase guest satisfaction. Name Hakata H

  40. Slide 40: Individual Hotel Summary

    Individual Hotel Summary Jan 2020 Appraisal Leasable Acquisition Book Value Unrealized Hotel Hotel Name Lease Terms Location Area Price (JPY M) Value Cap Rate Gains (JPY M) No. 2 (m ) (JPY M) (A) (JPY M) (B) (% ) (B) - (A) A-1 Nest Hotel Sapporo Ekimae Variable + Fixed Rent Sapporo 5,734.93 2,160 2,

  41. Slide 41: Individual Hotel Operating Results

    Individual Hotel Operating Results (year-on-year) No. of January 2020 (August 2019 - January 2020) Hotel No. Hotel Name Lease Terms Location Guest Rooms RevPAR (JPY) Occupancy (%) ADR (JPY) Revenue (JPY M) A-1 004 Nest Hotel Sapporo Ekimae Variable + Fixed Rent Sapporo 162 8,950 (-8.9%) 96.8 (+1.1%)

  42. Slide 42: Individual Hotel Financials

    Individual Hotel Financials (JPY thousand) A-1 A-2 A-3 C-1 D-1 D-3 D-4 E-1 E-2 E-3 E-5 F-1 F-2 F-4 F-5 G-1 G-2 G-3 Nest Nest Smile Comfort Smile Total Comfort Comfort Comfort Hotel Vista Chisun Inn Nest Hotel Comfort Valie Nest Hotel Hotel Hotel Hotel Central Hotel Nest Hotel Court Hotel Valie Hotel

  43. Slide 43: Fixed/Variable Rent, RevPAR, ADR, & Occupancy Trends

    Fixed/Variable Rent, RevPAR, ADR, & Occupancy Trends Total Rent Fixed/Variable Rent (excludes Other Revenue) (JPY thousand) Jan 2019 Jul 2019 Jan 2020 Rent Ratio Rent Ratio Rent Ratio Fixed Rent 1,020,028 58.4% 1,029,238 57.5% 1,032,448 63.9% Variable Rent Fixed Rent from Operators 984,468 56.4% 984

  44. Slide 44: Variable Rent Hotel Details

    Variable Rent Hotel Details A-1 Nest Hotel Sapporo Ekimae Operating Results (Feb 2019 – Jan 2020) ADR RevPAR Occupancy Location Sapporo (right) (right) (left) (JPY) 5-minute walk from 100% 20,000 Sapporo Station on Access Sapporo City Metro 80% 16,000 Namboku Line 60% 12,000 Nest Hotel Japan Operato

  45. Slide 45: Variable Rent Hotel Details

    Variable Rent Hotel Details C-1 Smile Hotel Tokyo Asagaya ADR RevPAR Occupancy Location Suginami-ku, Tokyo Operating Results (Feb 2019 – Jan 2020) (right) (left) (right) (JPY) 1-minute walk from 100% 15,000 Access Asagaya Station on JR Chuo/Sobu Line 80% 12,000 60% 9,000 K.K. Hospitality Operator Op

  46. Slide 46: Variable Rent Hotel Details

    Variable Rent Hotel Details E-1 Smile Hotel Kyoto Shijo Location Kyoto ADR RevPAR Occupancy Operating Results (Feb 2019 – Jan 2020) (right) (right) (left) 5-minute walk from (JPY) Shijo Station on Kyoto 100% 15,000 City Subway Karasuma Access 80% 12,000 Line and Karasuma Station on Hankyu 60% 9,000

  47. Slide 47: Variable Rent Hotel Details

    Variable Rent Hotel Details E-3 Chisun Inn Osaka Hommachi Location Osaka ADR RevPAR Occupancy Operating Results (Feb 2019 – Jan 2020) (right) (right) (left) 5-minute walk from (JPY) Sakaisuji-Hommachi 100% 10,000 Access Station on Osaka Municipal Subway 80% 8,000 Chuo Line 60% 6,000 SHR Hotel Lease

  48. Slide 48: Variable Rent Hotel Details

    Variable Rent Hotel Details E-5 Nest Hotel Osaka Shinsaibashi Location Osaka ADR RevPAR Occupancy Operating Results (Feb 2019 – Jan 2020) (right) (right) (left) (JPY) 1-minute walk from 100% 10,000 Nagahoribashi Station Access on Osaka Municipal 80% 8,000 Subway Sakaisuji Line 60% 6,000 Nest Hotel J

  49. Slide 49: Variable Rent Hotel Details

    Variable Rent Hotel Details F-4 Court Hotel Kurashiki Location Kurashiki, Okayama Operating Results (Feb 2019 – Jan 2020) ADR RevPAR Occupancy (right) (right) (left) (JPY) 100% 15,000 8-minute walk from Access Kurashiki Station on 80% 12,000 JR Sanyo Main Line 60% 9,000 Operator The Court Co., Ltd.

  50. Slide 50: Variable Rent Hotel Details

    Variable Rent Hotel Details G-1 Valie Hotel Tenjin Operating Results (Feb 2019 – Jan 2020) ADR RevPAR Occupancy Location Fukuoka (right) (right) (left) (JPY) 6-minute walk from 100% 15,000 Tenjin Station on Access 80% 12,000 Fukuoka City Subway Kuko Line 60% 9,000 Operator The Court Co., Ltd. 40% 6,

  51. Slide 51: Variable Rent Hotel Details

    Variable Rent Hotel Details G-3 Nest Hotel Kumamoto Operating Results (Feb 2019 – Jan 2020) ADR RevPAR Occupancy Location Kumamoto (right) (right) (left) (JPY) 2-minute walk from 100% 10,000 Nishikarashimacho Access 80% 8,000 Station on Kumamoto City Tram Line 60% 6,000 Nest Hotel Japan Operator 40%

  52. Slide 52: Fixed Rent Hotel Details

    Fixed Rent Hotel Details A-3 Comfort Hotel Kushiro B-1 Grandpark-Inn Yokohama Location Kushiro, Hokkaido Location Yokohama 6-minute walk from 2-minute walk from Yokohama Station on Access Kushiro Station on JR Access JR Line, private Nemuro Main Line railways, and subway Operator Greens Co., Ltd. Op

  53. Slide 53: Fixed Rent Hotel Details

    Fixed Rent Hotel Details D-3 Comfort Hotel Central International Airport D-4 Comfort Hotel Suzuka Location Tokoname, Aichi Location Suzuka, Mie 5-minute walk from Central International Airport, 3-minute walk from Access 3-minute walk from Central Access Shirako Station on International Airport Stati

  54. Slide 54: Appendix: Loan Details & Shareholder Composition

    Appendix: Loan Details & Shareholder Composition © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved. 54

  55. Slide 55: Stable Financial Base

    Stable Financial Base − Shorter-term loans are floating rate to take advantage of current low interest rates − 80% of loans are fixed to hedge against a rise in interest rates Outstanding Loan Balance Jan 31, 2018 Jul 31, 2018 Jan 31, 2019 Jul 31, 2019 Jan 31, 2020 Amount JPY 21.75B JPY 21.75B JPY 2

  56. Slide 56: Loan Details

    Loan Details Loan Balances (as of January 31, 2020) Amount Floating/ Interest Rate Loan Lender Borrowing Date Maturity (JPY million) Fixed (%) Term Loan 2 SMBC, Mizuho, Shinsei, Resona 5,250 Fixed 1.08000% November 30, 2015 November 30, 2020 Term Loan 3 SMBC, Mizuho, Shinsei, Resona, Fukuoka, Nishi-

  57. Slide 57: Shareholder Composition

    Shareholder Composition Major Shareholders (as of January 31, 2020) By Number of Shares Held Foreign Corporations & Individuals Domestic Financial Institutions No. of Name Share Non-Financial Domestic Corporations Domestic Individuals Shares (Shares) 45,576 25,161 1 Japan Trustee Services Bank, Ltd.

  58. Slide 58: Appendix: Growth Roadmap, Sponsor, Shareholder Alignment

    Appendix: Growth Roadmap, Sponsor, Shareholder Alignment © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved. 58

  59. Slide 59: Strong Growth Track Record

    Strong Growth Track Record Gains on Sale from Kyoto and Naha Hotel sales2 Gains on Sale from Smile Hotel Asakusa sale2 NAV per Share (JPY) 146,317 145,727 146,580 140,860 DPS (JPY) 143,040 137,197 139,940 3,096 9,492 8,356 113,393 107,462 5,457 102,472 3,302 3,352 3,137 3,101 2,825 3,154 1,3751 IPO

  60. Slide 60: Ongoing Actions to Drive Increased Shareholder Value

    Ongoing Actions to Drive Increased Shareholder Value Dividend Growth and Highly Secure Earnings Provide Strong Foundation for Further Growth in Shareholder Value Drive Further Dividend Growth Organic Growth Acquisition-Led Growth • Proactively execute value-add capex • Grow with sponsor support • Di

  61. Slide 61: Growth Strategy Roadmap

    Growth Strategy Roadmap Flexibly Responding to Market Environment Stage I Stage II Continuous Dividend Growth via External Growth, Organic Growth, and Strong Financial Base • Construct a diversified portfolio to pursue both income • Drive higher earnings via economies of scale from increased stabili

  62. Slide 62: Ichigo Hotel’s Sponsor: Ichigo (2337)

    Ichigo Hotel’s Sponsor: Ichigo (2337) Core Businesses: Asset Management, Sustainable Real Estate, Clean Energy ‒ Manages Ichigo Office (8975), Ichigo Hotel (3463), and Ichigo Green (9282) ‒ TSE First Section, JPX-Nikkei 400 Member ‒ Deeply committed to CSR and Sustainability ‒ Japan’s first zero-car

  63. Slide 63: Synergies Between Ichigo Hotel and Sponsor

    Synergies Between Ichigo Hotel and Sponsor ‒ Strengthen acquisitions through leveraging Ichigo’s sourcing network ‒ Increase asset value through Ichigo’s real estate value-add capabilities ‒ Drive higher returns for Ichigo Hotel shareholders Ichigo Hotel (3463) Buy Sponsor: Ichigo (2337) Buy Buy Hot

  64. Slide 64: First J-REIT No Fixed Fee, Performance Fee-Only Structure

    First J-REIT No Fixed Fee, Performance Fee-Only Structure Overwhelming Shareholder Support (99.3% Yes Vote at AGM) Before Change After Change Asset Management Fee Structure (Until January 31, 2019) (From February 1, 2019) AM Fee I Total Asset Value X 0.4% – Asset Asset Size- Acquisition Price X 1% –

  65. Slide 65: Ichigo Hotel Overview

    Ichigo Hotel Overview Ichigo Hotel Name Ichigo Hotel REIT Investment Corporation Securities Code 3463 Address 1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo Executive Director Osamu Miyashita Fiscal Periods January (August 1 - January 31) and July (February 1 - July 31) Asset Management Company Name Ichigo

  66. Slide 66: MEMO

    MEMO © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved. 66

  67. Slide 67: Disclaimer

    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 ). These materials may contain forward-looking statements regarding th

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