Ichigo Hotel Reit Investment Corp. · TSE:3463
Ichigo Hotel Reit Investment — January 2025 Earnings Presentation
64 slides from Ichigo Hotel Reit Investment's earnings presentation, Mar 14, 2025
Slide 1: Ichigo Hotel January 2025 Fiscal Period Corporate Presentation
Ichigo Hotel (3463) Ichigo Hotel January 2025 Fiscal Period Corporate Presentation March 14, 2025 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
Slide 2: Ichigo is a Japanese sustainable infrastructure company
Ichigo is a Japanese sustainable infrastructure company dedicated to making the world more sustainable © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved.
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.
Slide 4: Ichigo – A Sustainable Infrastructure Company
Ichigo – A Sustainable Infrastructure Company Whether developing new technologies to allow buildings to last 100 years, powering communities with clean energy, or creating new possibilities for tenants and stakeholders, Ichigo is working to build a more prosperous and sustainable society for all. ©
Slide 5: Agenda
January 2025 Results Earnings Forecasts January 2025 Highlights July 2025 Forecast January 2025 Earnings Breakdown January 2026 Forecast Strategic Asset Sales Exceeding Appraisal Values Ichigo’s Commitment to ESG Asset Acquisition Driving Portfolio Diversification & Ichigo Sustainabili
Slide 6: January 2025 Results
January 2025 Results © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved. 6
Slide 7: January 2025 Highlights
January 2025 Highlights Results Details • Achieved 9 consecutive periods of earnings growth, JPY 3,315M record high earnings Net Income +JPY 2,341M (+240.3%) YOY • +JPY 148M (+4.7%) vs. Oct 2024 forecast • Driving gains on sales, hotel earnings Sales & • 2 hotel sales (Hiroshima, Sapporo/Total • Tot
Slide 8: January 2025 Earnings Breakdown
January 2025 Earnings Breakdown Achieved Record-High NOI, Net Income, Dividend, & NAV (JPY million) Previous (Reference) Jan 2024 Jan 2025 vs. Forecast Forecast Revised Forecast Major Variation Factors (vs. Initial Forecast) Actual Actual (A) (A) - (B) (Sep 2024) (B) (Oct 2024) Operating Revenue 2,2
Slide 9: Strategic Asset Sales Exceeding Appraisal Values
Strategic Asset Sales Exceeding Appraisal Values – Sold 2 hotels (Total Gains on Sale JPY 2.4B) after end of lease contracts due to potential increase in value-add capex costs & maintenance costs to maintain competitiveness Nest Hotel Sapporo Ekimae sold at 2.2X Book Value, 1.7X Appraisal Value –
Slide 10: Asset Acquisition Driving Portfolio Diversification & Earnings
Asset Acquisition Driving Portfolio Diversification & Earnings – Financed via sale of 2 hotels (Hiroshima, Sapporo) – Acquired hotel in central Fukuoka with hotel demand upside Hotel The OneFive Marine Fukuoka Acquisition Price JPY 2,600M Appraisal Value JPY 2,610M (January 31, 2025) Lodging-focus
Slide 11: Driving Portfolio Quality via Strategic Restructuring (July 2025)
Driving Portfolio Quality via Strategic Restructuring (July 2025) – Sold Osaka hotel with unrealized losses in view of capex increase & current market conditions – Gains on Sale (JPY 290M) to be fully distributed as July 2025 dividend – Acquired hotel in central Fukuoka expected to capture a broad r
Slide 12: Strategic Restructuring Initiatives Summary
Strategic Restructuring Initiatives Summary – Sold 3 hotels & acquired 2 hotels during the last 2 fiscal periods Total unrealized gains of JPY 2.7B, to be fully distributed as dividend – Continue focusing on portfolio diversification & hotel earnings growth January 2025 July 2025 Total Valie Hotel
Slide 13: Continued Hotel Earnings Growth Due to Robust Demand
Hotel Operating Results Continued Hotel Earnings Growth Due to Robust Demand Variable Rent Hotels (20 Hotels) Aug 1, 2023 Aug 1, 2024 Change YOY - Jan 31, 2024 - Jan 31, 2025 Room Revenue (JPY M) 4,336 5,170 +834 +19.2% Total Revenue (JPY M) 4,755 5,600 +845 +17.8% RevPAR (JPY) 7,996 9,534 +1,538 +1
Slide 14: RevPAR Growth in All Regions
Hotel Operating Results RevPAR Growth in All Regions – RevPAR growth on strong ADR growth in all regions – Inbound growth due to increase in int’l flights to Sapporo post-October 27 Hotels (excludes Capsule Plus Yokohama and Washington YOY by Region (Aug 2024 – Jan 2025) Hotel Plaza Shimonoseki Eki
Slide 15: Sustainability Initiatives
Environmental Initiatives Sustainability Initiatives – Participated in GRESB Real Estate Assessment (since 2021) Achieved 3 Stars (Up 1 rank from last year) — Green Star 4 years in a row — GRESB Disclosure Highest A Level 2 years in a row – Achieved 100% renewable energy transition at all hotels
Slide 16: Shareholder Discount Program
Shareholder Program Shareholder Discount Program Providing Hotel Discounts to Ichigo Hotel Shareholders in Cooperation With Hotel Operators Minacia Co., Ltd. K.K. Hospitality Operations Hotel Wing International Smile Hotels, THE KNOT Special rate 12% lower than rates on hotel website Special rat
Slide 17: Ichigo J.League Shareholder Program
Shareholder Program Ichigo J.League Shareholder Program Represents Two Firsts for a Shareholder Program in Japan − First Japanese company to include not just its own shareholders, but also the shareholders of the REITs and solar power producer that it manages, in its shareholder program (93,000 shar
Slide 18: Sustainability as a Key Management Priority
Sustainability as a Key Management Priority © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved. 18
Slide 19: Driving Revenue Increase at Lease Contract-End
Driving Revenue Increase at Lease Contract-End Seeking Value-Add Initiatives to Maximize Shareholder Value Such as Rebranding, Large-Scale Renovations, and Re-examination of Contract Terms 5 Hotels Ending Lease Contracts by Jul 2026 Fiscal Period-End Lease Contract End Hotel Name Region Lease Terms
Slide 20: Driving Shareholder Value via Ichigo Sponsor Pipeline
Driving Shareholder Value via Ichigo Sponsor Pipeline 12 Hotels Across Japan (JPY 59.7B) in Sponsor Pipeline as of Nov 30, 2024 Sponsor-Owned Hotels By Area Hokkaido/Tohoku Kanto Koshinetsu Tokyo Kinki Sendai Yokohama Utsunomiya, Tochigi Shinjuku Osaka (Namba) Chugoku/ Kyushu Shikoku Book Value at N
Slide 21: Earnings Forecasts
Earnings Forecasts © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved. 21
Slide 22: July 2025 Forecast
July 2025 Forecast ̶ Distributing Nest Hotel Osaka Shinsaibashi Gains on Sale JPY 290M as Dividend ̶ Increase in earnings from new acquisitions & existing hotels offset earnings decrease due to asset sale (JPY million) Jul 2025 Jul 2025 Jul 2024 Previous vs. Forecast Revised Major Variation Factors
Slide 23: January 2026 Forecast
January 2026 Forecast ̶ Drop off of gains on sale, downtime resulting from renovations ̶ Dividend forecast JPY 3,333 on earnings increase from 2 newly-acquired hotels located in central Fukuoka (JPY million) Jan 2025 Jan 2026 vs. Forecast Major Variation Factors (vs. Forecast) Actual (A) Forecast (B
Slide 24: Ichigo’s Commitment to ESG
Ichigo’s Commitment to ESG © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved. 24
Slide 25: Ichigo Sustainability Policy
Ichigo Sustainability Policy Harmony With the Environment and Recycling Ichigo actively monitors and minimizes the environmental impact of its business operations via extending the useful life of its assets, reducing water and water consumption, and recycling. Addressing Climate Change and Shift to
Slide 26: Ichigo Climate Positive: CO2 Reduction vs. Emissions (1)
Ichigo Climate Positive: CO2 Reduction vs. Emissions (1) Ichigo CO2 Reduction = 4X CO2 Emissions Ichigo Hotel CO2 Emissions 6,729 tons CO2 Reduction 101,217 CO2 Emissions tons 22,767 tons CO2 Reduction due to Ichigo & Ichigo Green Clean Energy Scope 1+2 Emissions Power Plant Production (Ichigo + Ich
Slide 27: Ichigo Climate Positive: CO2 Reduction vs. Emissions (2)
Ichigo Climate Positive: CO2 Reduction vs. Emissions (2) Ongoing Ichigo Clean Energy Production Growth (CO2 Reduction Increase) & Renewable Energy Transition & Carbon Offsets (CO2 Emissions Reduction) CO2 Reduction/Reduction Impact/CO2 Emissions ■ Total Ichigo Power Plant CO2 Reduction ■ Total Ichig
Slide 28: RE100: Continued Renewable Energy Transition
RE100: Continued Renewable Energy Transition RE100 Progress (as of November 30, 2024) RE100達成率 Non-Fossil Certificate 100% Tracking for Ichigo Power Plants Renewable Energy Switch 39% Ichigo Hotel 61% 25% Ichigo Hotel 12% Ichigo 2030 RE100 KPI to work for a sustainable planet: 100% renewable electri
Slide 29: Ichigo ESG – Environmental
Ichigo ESG – Environmental Sustainability-Driven & Climate Positive Effective Use of Existing Real Estate Towards a Net Zero Carbon Society J-REIT Initiatives Preserve & Improve Real Estate Community-Based, Productive Use of Pro-Active Environmental to End Wasteful Demolition Idle Land for Clean Ene
Slide 30: Ichigo ESG – Social
Ichigo ESG – Social Contributing to a Sustainable Society Contributing to Regional Revitalization Ichigo University Sports Initiatives Ichigo works to revitalize local communities Ichigo established Ichigo University in May and promote regional economic 2013 to support employees’ continuing As a top
Slide 31: Ichigo ESG – Governance
Ichigo ESG – Governance Global Best Practice Governance No Fixed Fee, Best Practice Governance Performance Fee- Only Structure REIT Asset Management Company (AMC) Shifted to performance- Monitors Asset Management Company Best Practice linked fee structure to • All Ichigo Hotel Directors are In
Slide 32: Shareholder-Oriented AM Fee Structure
Shareholder-Oriented AM Fee Structure – Continued Implementation of No Fixed Fee, Performance Fee-Only Structure i.e., Performance-Linked Fee Structure – To Further Incentivize the Asset Management Company to Continue Focusing on Long-Term Performance, Ichigo Hotel Proposes the Following Revisions a
Slide 33: Appendix: Portfolio Details
Appendix: Portfolio Details © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved. 33
Slide 34: Portfolio Lease Details
Portfolio Lease Details (as of January 31, 2025) Variable Lease Terms Fixed Rent Fixed + Variable Rent Total Rent Form of Contract Lease Lease Lease Lease – Fixed Rent Yes Yes Yes – – Excess Above Fixed Variable Rent – Fixed Portion of Revenue Upside Fixed Portion of Hotel GOP Portion of – Hotel GOP
Slide 35: Individual Hotel Summary
Individual Hotel Summary (as of January 31, 2025) Jan 2025 Appraisal Unrealized Acquisition Book Value Hotel Leasable Area Gains Hotel Name Lease Terms Location Price (JPY M) Value No. (m2) (JPY M) Cap Rate (%) (JPY M) (JPY M) (A) (B) - (A) (B) A-2 Nest Hotel Sapporo Odori Variable + Fixed Rent Sapp
Slide 36: Jan 2025 Fiscal Period Individual Hotel Operating Results (1)
Jan 2025 Fiscal Period Individual Hotel Operating Results (1) (year-on-year) No. of January 2025 (August 2024 - January 2025) Hotel Hotel Name Lease Terms Location Guest No. RevPAR (JPY) Occupancy (%) ADR (JPY) Revenue (JPY M) Rooms A-2 Nest Hotel Sapporo Odori Variable + Fixed Rent Sapporo 121 12,2
Slide 37: Jan 2025 Fiscal Period Individual Hotel Operating Results (2)
Jan 2025 Fiscal Period Individual Hotel Operating Results (2) (year-on-year) No. of January 2025 (August 2024 - January 2025) Hotel Hotel Name Lease Terms Location Guest No. RevPAR (JPY) Occupancy (%) ADR (JPY) Revenue (JPY M) Rooms F-2 Nest Hotel Matsuyama Variable + Fixed Rent Matsuyama, Ehime 190
Slide 38: Individual Hotel Financials (1)
Individual Hotel Financials (1) (JPY thousand) A-1 A-2 A-3 A-4 B-2 B-3 B-4 C-1 C-4 D-1 D-3 D-4 Comfort Total Nest Hotel Nest Hotel Hotel HOTEL THE Smile Hotel The OneFive Comfort Comfort THE KNOT Smile Hotel Hotel Central Comfort Sapporo Sapporo Sunshine KNOT Tokyo Tokyo Hotel Hotel Kushiro SAPPORO
Slide 39: Individual Hotel Financials (2)
Individual Hotel Financials (2) (JPY thousand) D-5 D-6 E-1 E-3 E-5 F-1 F-2 F-4 F-5 G-1 G-3 G-4 Quintessa The OneFive Nest Hotel The OneFive The OneFive The OneFive Quintessa Smile Hotel The OneFive Nest Hotel Valie Hotel Nest Hotel Hotel Ise Osaka Osaka Garden Fukuoka Marine Other Hotel Ogaki Kyoto
Slide 40: Fixed/Variable Rent, RevPAR, ADR, & Occupancy Trends
Fixed/Variable Rent, RevPAR, ADR, & Occupancy Trends Fixed/Variable Rent (JPY thousand) Jan 2024 Jul 2024 Jan 2025 Rent Ratio Rent Ratio Rent Ratio Fixed 1,222,928 53.6% 1,284,968 52.7% 1,303,474 46.6% Rent Variable Rent 934,780 41.0% 1,011,822 41.5% 1,324,203 47.3% Rent from Retail Tenants 88,168 3
Slide 41: Variable Rent Hotel Details
Variable Rent Hotel Details A-2 Nest Hotel Sapporo Odori ADR RevPAR Occupancy Location Sapporo Operating Results (Feb 2024 – Jan 2025) (right) (right) (left) (JPY) 4-minute walk from 100% 25,000 Odori Station on Access 80% 20,000 Sapporo City Metro Namboku Line 60% 15,000 Nest Hotel Japan Operator 4
Slide 42: Variable Rent Hotel Details
Variable Rent Hotel Details B-1 Capsule Plus Yokohama Location Yokohama, Kanagawa 6-minute walk from Access Yokohama Station on JR/ Subway Line The hotel operator did not give consent to disclose data. Operator nine hours Inc. Guest Rooms 169 Acquisition JPY 1.49B Price B-2 Smile Hotel Nagano Locati
Slide 43: Variable Rent Hotel Details
Variable Rent Hotel Details B-4 HOTEL THE KNOT YOKOHAMA ADR RevPAR Occupancy Location Yokohama Operating Results (Feb 2024 – Jan 2025) (right) (left) (JPY) (right) 100% 20,000 5-minute walk from JR Access 80% 16,000 Yokohama Station 60% 12,000 K.K. Hospitality Operator 40% 8,000 Operations Guest Roo
Slide 44: Variable Rent Hotel Details
Variable Rent Hotel Details C-4 The OneFive Tokyo Shibuya ADR RevPAR Occupancy Location Shibuya-ku, Tokyo Operating Results (Feb 2024 – Jan 2025) (right) (right) (left) (JPY) 6-minute walk from Shibuya Station on JR, 100% 30,000 Access Tokyu, Keio, and 80% 24,000 Tokyo Metro Lines 60% 18,000 Operato
Slide 45: Variable Rent Hotel Details
Variable Rent Hotel Details D-5 Quintessa Hotel Ise Shima Location Shima, Mie ADR RevPAR Occupancy Operating Results (Feb 2024 – Jan 2025) (right) (right) (left) (JPY) 3-minute walk from Shima Yokoyama Station on Kintetsu 100% 20,000 Access Shima Line and 10- minute walk from Ugata 80% 16,000 Statio
Slide 46: Variable Rent Hotel Details
Variable Rent Hotel Details E-1 Smile Hotel Kyoto Shijo Location Kyoto Operating Results (Feb 2024 – Jan 2025) ADR RevPAR Occupancy (right) (right) (left) (JPY) 5-minute walk from Shijo Station on Kyoto 100% 15,000 City Subway Karasuma Access Line and Karasuma 80% 12,000 Station on Hankyu Kyoto Main
Slide 47: Variable Rent Hotel Details
Variable Rent Hotel Details E-4 Hotel Wing International Kobe Shin Nagata Ekimae Location Kobe ADR RevPAR Occupancy Operating Results (Feb 2024 – Jan 2025) (right) (right) (left) (JPY) 2-minute walk from 100% 10,000 Shin Nagata Station Access 80% 8,000 on JR Kobe Line and JR Sanyo Honsen Line 60% 6,
Slide 48: Variable Rent Hotel Details
Variable Rent Hotel Details E-6 Comfort Hotel Osaka Shinsaibashi (Ichigo Shinsaibashi Building) Location Osaka ADR RevPAR Occupancy Operating Results (Feb 2024 – Jan 2025) (right) (right) (left) (JPY) 5-minute walk from Shinsaibashi Station 100% 15,000 on Osaka Metro Access Midosuji Line and 80% 12,
Slide 49: Variable Rent Hotel Details
Variable Rent Hotel Details F-2 Nest Hotel Matsuyama Location Matsuyama, Ehime Operating Results (Feb 2024 – Jan 2025) ADR RevPAR Occupancy (right) (right) (left) (JPY) 5-minute drive from Matsuyama Airport, 100% 10,000 3-minute walk from Access 80% 8,000 Katsuyamacho Station on Iyo Railway Jonan 60
Slide 50: Variable Rent Hotel Details
Variable Rent Hotel Details G-1 The OneFive Fukuoka Tenjin Location Fukuoka Operating Results (Feb 2024 – Jan 2025) ADR RevPAR Occupancy (right) (right) (left) (JPY) 100% 25,000 6-minute walk from Tenjin Station on 80% 20,000 Access Fukuoka City Subway Kuko Line 60% 15,000 40% 10,000 Operator OneFiv
Slide 51: Variable Rent Hotel Details
Variable Rent Hotel Details G-4 The OneFive Marine Fukuoka Location Fukuoka Operating Results (Feb 2024 – Jan 2025) ADR RevPAR Occupancy (right) (right) (left) (JPY) 8-minute walk from Nakasu Kawabata 100% 20,000 Station on Fukuoka Access City Subway Kuko 80% 16,000 Line and Gofukucho Station on Hak
Slide 52: Fixed Rent Hotel Details
Fixed Rent Hotel Details A-3 Comfort Hotel Kushiro B-3 Hotel Sunshine Utsunomiya Location Kushiro, Hokkaido Location Utsunomiya, Tochigi 5-minute walk from 2-minute walk from Utsunomiya Station on Access Kushiro Station on JR Access JR Tohoku Main Line, Nemuro Main Line Tohoku Shinkansen Operator Gr
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 3-minute walk from Airport, Access Shirako Station on Access 3-minute walk from Kintetsu Nagoya Line Central Intern
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
Slide 55: Stable Financial Base
Stable Financial Base Outstanding Loan Balance Jan 31, 2023 Jul 31, 2023 Jan 31, 2024 Jul 31, 2024 Jan 31, 2025 Amount JPY 25.47B JPY 25.47B JPY 32.47B JPY 32.47B JPY 32.47B Long-Term Loan Ratio 63.7% 46.0% 84.8% 100% 100% Fixed Rate Ratio 63.7% 46.0% 84.8% 100% 90.8% Average Interest Rate 0.76% 0.7
Slide 56: Loan Details
Loan Details Loan Lender Amount Floating/ Interest Rate Borrowing Date Maturity (as of January 31, 2025) (JPY M) Fixed (%) SMBC, Mizuho, SBI Shinsei, Resona, Fukuoka, Term Loan 13 2,000 Fixed 0.65600% February 28, 2020 February 27, 2026 Nishi-Nippon City Lender Composition Term Loan 23 SMBC, Mizuho,
Slide 57: Shareholder Composition
Shareholder Composition Major Shareholders (as of January 31, 2025) By Number of Shares Held Foreign Corporations & Individuals Domestic Financial Institutions No. Of Name Share Non-Financial Domestic Corporations Domestic Individuals Shares 1 Ichigo Trust 59,087 18.0% 85,351 82,734 79,960 (26.1%) (
Slide 58: Appendix: Sponsor, Portfolio Map, & Others
Appendix: Sponsor, Portfolio Map, & Others © Ichigo Investment Advisors Co., Ltd. Ichigo Hotel REIT Investment Corporation All rights reserved. 58
Slide 59: Hotel Map
Hotel Map Hotel Geographic Composition (Acquisition Price Basis) Location Hotel Name Kobe No. Nagoya 2.2% A-2 Hokkaido Nest Hotel Sapporo Odori 3.9% A-3 Hokkaido Comfort Hotel Kushiro A-4 Hokkaido THE KNOT SAPPORO Kyoto Sapporo 6.5% Osaka Kushiro B-1 Kanto Koshinetsu Capsule Plus Yokohama A-2 A-4 Ky
Slide 60: Ichigo Hotel’s Sponsor: Ichigo (2337)
Ichigo Hotel’s Sponsor: Ichigo (2337) Core Businesses: Asset Management, Sustainable Real Estate, Clean Energy ‒ Manages Ichigo Hotel (3463), Ichigo Office (8975), and Ichigo Green (9282) ‒ Sustainable Real Estate business adds value to existing buildings by drawing upon its real estate technologies
Slide 61: Synergies Between Ichigo Hotel and Sponsor
Synergies Between Ichigo Hotel and Sponsor ‒ Strengthen acquisitions through leveraging Ichigo’s sourcing network ‒ Optimize assets for REIT investments through Ichigo’s real estate value-add capabilities ‒ Drive higher returns for Ichigo Hotel shareholders Ichigo Hotel (3463) Buy Sponsor: Ichigo (2
Slide 62: OneFive Hotels – Ichigo Group Hotel Operator
OneFive Hotels – Ichigo Group Hotel Operator – Ichigo-Owned OneFive Hotels Operates 17 Hotels With Focus on the Hakata Area in Fukuoka Prefecture – OneFive Hotels Deploys PROPERA, an AI-Based Revenue Management System Developed by Ichigo, to Maximize Earnings and Increase Guest Satisfaction Name One
Slide 63: Ichigo Hotel Overview
Ichigo Hotel Overview Ichigo Hotel Name Ichigo Hotel REIT Investment Corporation Securities Code 3463 Address 2-6-1 Marunouchi, Chiyoda-ku, Tokyo Executive Director Eriko Ishii Fiscal Periods January (August 1 - January 31) and July (February 1 - July 31) Asset Management Company Name Ichigo Investm
Slide 64: 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 the
Ichigo Hotel REIT Investment — January 2025 Earnings Presentation on 6ix