Japan Hotel REIT (8985) Investor presentation summary

Portfolio enhancement and asset replacement

• Executed strategic asset replacement by selling The Beach Tower Okinawa and acquiring Candeo Hotels Osaka Namba, maintaining NOI while improving portfolio quality.

• Sale of The Beach Tower Okinawa achieved a price approximately 3x its appraisal value, reflecting significant upside potential.

• Acquisition of a newer property in a prime Osaka location offers stable revenue and future rent growth opportunities.

Realization of upside and value maximization

• Maximized unitholder value through rent increases, rebranding, and strategic asset sales, including a notable gain on The Beach Tower Okinawa.

• NOI yields improved significantly post-lease renegotiations and asset sales, with some assets achieving more than double previous yields.

Financial impact and capital recycling

• Sale generated a JPY24.0 billion gain, representing 5x book value and 3x appraisal value, supporting acquisitions, retained earnings, and a 7.8% dividend increase.

• Sale proceeds allocated to new acquisitions, large-scale renovations, and retained earnings for future growth.