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Message from Management

Executive Director Kaname Masuda

Thank you for your support and patronage to Japan Hotel REIT Investment Corporation (JHR) and its asset management company, Japan Hotel REIT Advisors Co., Ltd.

Having settled the midterm settlement of accounts for the 19th fiscal period (from January 1, 2018 to December 31, 2018) of JHR, we are pleased to present you with the summary of our asset management status.

For the midterm period under review, the number of foreign tourists visiting Japan (inbound tourists) has continued to increase while demand for accommodation by domestic tourists remained solid, which made the environment surrounding JHR favorable in general.
As to hotels owned by JHR, some areas including Tokyo and Osaka saw a slowdown of the operating performance due to the impacts of new hotel supply and minpaku (rentals of private homes as accommodation for a fee). However, many of JHR’s hotels in major regional cities achieved better operating performance, mainly in the rooms department.

With regard to the operating performance of the midterm period under review, due to an increase in the variable rent resulting from the better operating performance in the hotels under variable rent contracts and other factors, JHR posted operating revenue of ¥12,321 million, ordinary income of ¥6,387 million and net income for the midterm of ¥6,387 million.

As to dividend, since JHR pays dividends based on its earnings of a full year, no dividends will be paid based on the midterm financial results. JHR forecasts dividend per unit for the fiscal year to be ¥3,890 (up 5.6% year-over-year), including the additional amount resulting from the gain on sale in association with the sales of the properties after midterm settlement. Please note that the forecast is based on the operating status up until now and the actual dividend per unit will fluctuate due to the operating status going forward.

JHR endeavors to make JHR grow further and more attractive with its asset management company, and proactively carries out initiatives for ESG (Environment, Social and Governance) from the standpoint of sustainability enhancement for mid-to-long term.

We would appreciate your continued support for us.