6th Fiscal Period - IR Webcasting · 6/17/2016 · 6th Fiscal Period (ended April 2016) Presentation Materials June 17, 2016. IV. Appendix Portfolio overview (assets under management)

Asset Management Company Hoshino Resort Asset Management Co., Ltd.

Security Code: 3287 http://www.hoshinoresorts-reit.net/

6th Fiscal Period(ended April 2016)

Presentation MaterialsJune 17, 2016

IV. Appendix

Portfolio overview (assets under management) (1) – (8) 34

Operational results for each property (1) – (7) 42

Balance sheet for the fiscal period ended April 2016 49

Statement of income for the fiscal period ended April 2016 50

Real estate appraisal value for continuously owned properties as of the end of the fiscal period ended April 2016 (1) – (3)

51

Information on unitholders as of the end of the fiscal period ended April 2016

54

Overview of HRR 55

Overview of Asset Management Company 56

II. Operational Results for Each Property

Operational results for each property (1) – (6) 15

Forecasts for 7th fiscal period ending October 2016 and 8th fiscal period ending April 2017 (1) – (2)

21

Rent type (1) – (2) 23

I. Management Results of the Fiscal Period Ended April 2016

Highlights 3

Overview of capital increase through public offering 4

Improvement in unitholder value by expansion of asset size via conducting capital increase through public offering for three fiscal periods in a row

5

Promoting external growth by utilizing support from the Hoshino Resorts Group in maximum

7

Status of portfolio after new acquisition of properties 8

Internal growth (management results highlights) (1) – (2) 9

Finances (1) – (2) 11

Impact of the 2016 Kumamoto Earthquakes 13

III. Future Management Policy

Management policy for the time being 26

Realization of stable distribution 27

Market trend and strategy for differentiation 28

External growth 29

Hotels and ryokans operated by the Hoshino Resorts Group 30

Internal growth 31

Initiatives for stable maintenance and improvement of the portfolio management results

32

Table of contents

1

I. Management Results of the Fiscal Period Ended April 2016

20,056 yen

20,520 yen

+386 yen+68 yen

+6 yen －17 yen

19,600

19,800

20,000

20,200

20,400

20,600

Highlights

Overview of financial results for the 6th fiscal period(Ended April 2016)

(Amounts are rounded down and ratios are rounded off.)

Results of the 5th

fiscal period

Forecast for the 6th fiscal period(as of December 15, 2015) (A)

Results of the 6th fiscal

period (B)

Comparison with

forecast (B)-(A)

Operational status (millions of yen)

Operating revenue 1,926 3,528 3,559 31

Operating income 1,034 1,876 1,914 37

Ordinary income 909 1,565 1,601 36

Net income 908 1,564 1,600 36

Distribution per unit (yen)

Distribution per unit 18,289 20,056 20,520 464

Others

NOI (millions of yen) 1,708 2,953 2,992 38

NOI yield 8.0% 6.9% 6.4% －

LTV 18.6% 25.3% 27.8% －

Overview of financial results forthe fiscal period ended April 2016

Distribution per unit was ¥20,520

Comparison with forecast was +¥464 (+2.3%)

Main Breakdown of ¥3,559 million of operating revenue: Fixed rent ¥2,841 million, floating rent ¥707 million

Main differences in net income from the forecast

＋31M Increase in revenue related to rent business

Fixed rent of Asahikawa Grand Hotel 31M

+5M Decrease in expenses related to rent business

Decrease in maintenance/repair expenses 5M

－2M Increase in non-operating expenses

Increase in interest 2M

Non-operating income and loss

+Corporate tax, etc.

Decreasein expenses related to

rent business

Decreasein

operating expenses

Forecast

(As of Dec. 15)

Increasein revenue related to

rent business

3

Actual

0

20,000

40,000

60,000

80,000

100,000

120,000

50.0

100.0

150.0

200.0

250.0

300.0

'13/07 '13/10 '14/01 '14/04 '14/07 '14/10 '15/01 '15/04 '15/07 '15/10 '16/01 '16/04

時価総額(単位：百万円) (右軸) 投資口価格(左軸) REIT指数(左軸)

Investment highlights

公募増資の概要

Offering form Domestic offering

Number of units offered

Domestic primary offering: 3,570 units

Third-party allotment: 179 units

Total: 3,749 units

Total amount paid in ¥4,684 million

Issue price per unit ¥1,294,745

Resolution date of the issuance

April 8, 2016

Pricing date April 19, 2016

Lead manager Nomura Securities Co., Ltd. SMBC Nikko Securities Inc.

Portfolio status after the offering

(Note) Among the 47 properties owned as of June 17, 2016, figures for the 46 properties owned as of March 31, 2016 are based on figures in the real estate appraisal reports as of April 30, 2016, whereas figure for KAI Kaga, the property acquired on May 2, 2016, is based on figure in the real estate appraisal report as of February 29, 2016.

Properties owned as of November 2, 2015

Properties acquired on March 31 and

May 2, 2016

Properties owned as of June 17, 2016

No. of properties owned 45 properties 2 properties 47 properties

Total acquisition price ¥85.4 billion ¥7.7 billion ¥93.1 billion

Ratio of acquisition price toappraisal value

¥96.9 billion ¥8.0 billion ¥107.7 billion(Note)

Appraisal NOI yield 6.9% 6.8% 7.0%

Number of guest rooms 5,127 rooms 285 rooms 5,412 rooms

1. Improvement in unitholder value by expansion of asset size via conducting capital increase through public offering for three fiscal periods in a row

2. Promoting external growth by utilizing support from the Hoshino Resorts Group in maximum

3. Initiatives for stable maintenance and improvement of the portfolio management results

Overview of offering

Resolution date of the issuance for the offering

Overview of capital increase through public offering

4

Market Value(millions of yen)(right axis)

Investment unit price(left axis)

REIT index(left axis)

Jul. 2013

Oct. 2013

Jan. 2014

Apr. 2014

Jul. 2014

Oct. 2014

Jan. 2015

Apr. 2015

Jul. 2015

Oct. 2015

Jan. 2016

Apr. 2016

Property name

Asahikawa Grand Hotel KAI Kaga

Acquisition date March 31, 2016 May 2, 2016

Acquisition approach Collaborative investment structureUtilization of revitalization know-how

of the Hoshino Resorts Group

Lessee’s attribute Hoshino Resorts Group Hoshino Resorts Group

Rent typeFixed rent + floating rent

(profit-linked)Fixed rent + floating rent

(profit-linked)

Operator’s attributeBy March 2017: Abilitas Hospitality Co., Ltd.

From April 2017: Hoshino Resorts GroupHoshino Resorts Group

Total acquisition price ¥4.6 billion ¥3.1 billion

Total real estate appraisal value ¥4.7 billion ¥3.3 billion

Lease period 20.0 years 20.0 years

Appraisal NOI yield 7.3% 6.1%


5

0

20

40

60

80

100

0

200

400

600

800

1000

As of listing As of the end of

3rd FP

As of the end of

5th FP

November 2,

2015

As of June 17,

2016

(billions of yen)

(No. of properties owned)

¥15 billion

¥33.3 billion

¥42.5 billion

Realized external growth of

¥59.8 billion in about a year

by conducting capital increase through public offering for three

fiscal periods in a row and utilizing acquisition capacity

¥85.4 billion

1st PO 24 properties

¥18.3 billion

2nd PO 8 properties

¥7.2 billion

3rd PO 6 properties

¥42.8 billion

6properties

30properties

39properties

47properties

Acquisition during

the 5th FP 1 property

¥1.9 billion

Since listing in 2013, the promotion of diversification of the characteristics of operators, locations and

cash flows has achieved steady expansion of the asset size to strengthen earnings stability.

4th PO

2 properties

¥7.7 billion

45properties

¥93.1 billion

No. of properties owned (right axis)Properties leased by the Hoshino Resorts Group (Total acquisition price) (left axis)

Properties leased by those other than the Hoshino Resorts Group (Total acquisition price) (left axis)

6

100

80

60

40

20

0


Collaborative investment structure of Asahikawa Grand Hotel

Promoting external growth by utilizing support from the Hoshino Resorts Group in maximum

On March 31, 2016, at the same time with the Hoshino Resorts REIT’s acquisition of Asahikawa Grand Hotel, Hoshino Resort acquired shares of Asahikawa Grand Hotel Co., Ltd., the managing company of the Asahikawa Grand Hotel, and made it a 100% owned subsidiary.

Collaborativeinvestment

Making itits 100% owned

subsidiary

Leases of real estate

Asahikawa Grand

Hotel Co., Ltd.

(Managing company)

Acquisition of shares of

managing company

Acquisition of real estate

Hoshino Resorts Inc.

Hoshino Resorts REIT, Inc.

Seller

The structure will be proactively utilized continuously into the future

as a method for acquisition through collaboration with the Hoshino Resorts Group.

Upon acquisition of the Asahikawa Grand Hotel by the Hoshino Resorts REIT, Asahikawa Grand Hotel Co., Ltd. is scheduled to terminate the operation entrustment agreement concluded with Abilitas Hospitality Co., Ltd., the operator, in March 2017 and start operation by itself from April 2017. Through this, Hoshino Resorts Group will be implementing the operation in addition to the participation in management of the Asahikawa Grand Hotel.

7

新規取得資産取得後のポートフォリオの状況

Diversification by operator/lessee(based on fixed rent)

Diversification by region (based on fixed rent)

(as of June 17, 2016)

Inside pie: OperatorOutside pie: Lessee

Status of portfolio after new acquisition of properties

(as of June 17, 2016)Hokkaido-Tohoku region

9.6%

Kanto region

12.2%

Chubu region

32.9%

Kinki region

3.7%

Chugoku-Shikoku region

15.0%

Kyushu-Okinawa region

9.8%

Hokuriku region

16.7%

3.3%

40.4%

Solare

5.3%

27.1%

73.3%

Hoshino Resorts Group

IHG ANA Hotels Group Japan LLC.

18.0%

Greens Candeo

18.0%

5.3%3.3%

HOSHINOYA

RISONARE

KAI

Others

O-28

O-27

O-18

O-10

O-11

O-4O-26

H-2

O-9

O-22

O-20

O-16O-29

K-2

O-21

O-24

O-17

O-5

O-12

O-7K-5

K-6

O-13

O-14

O-6

O-25

O-2

H-1K-1

O-1

O-3

O-15

O-23R-1

O-8

O-34O-33

O-31

O-32

O-30

K-7

R-2K-4

K-3

O-19

O-35

K-8

Others 5.9%

8

(Note) The Solare Group (Solare Hotels and Resorts Co., Ltd. and its subsidiaries) are referred to asSolare, the Candeo Hospitality Management, Inc. as Candeo, the Greens Co., Ltd. as Greens, IHGANA Hotels Group Japan LLC as IHG ANA Hotels Group Japan and Abilitas Hospitality Co., Ltd. asothers, respectively.

(Note 1) Sales are rounded off to the nearest million.(Note 2) Figure for Change is not indicated for Hoshinoya Kyoto due to its operational results from December 7, 2015 to March 16, 2016 not existing as operations were suspended to

conduct renovation work.(Note 3) Operational results of KAI Kawaji from April 2014 to May 2014 do not exist as operations were suspended to conduct renovation work.

Internal growth (management results highlights) (1)

From April 2014 to March 2015 (Note 1)

From April 2015 to March 2016 (Note 1)

Change (comparison to previous year)

HOSHINOYA Karuizawa

Sales (Note 1) ¥2,895 million ¥3,172 million ¥277 million

HOSHINOYA Kyoto

Sales (Note 1) ¥956 million ¥841 million (Note 2) — (Note 2)

RISONARE Yatsugatake

Sales (Note 1) ¥4,129 million ¥4,290 million ¥160 million

6 KAI properties Sales (Note 1) ¥3,341 million (Note 3) ¥3,595 million ¥254 million

As for the operational results (Note) of properties

from November 2015 to April 2016, sales

increased approximately 169 million yen year-on-

year.

Improved recognition rate and showcasing their

attractiveness have contributed to the sales

increase.

(Source) Survey by the Hoshino Resorts Group

(Note) Year-on-year operational results are calculated for HOSHINOYA Karuizawa, RISONARE Yatsugatake, KAI Matsumoto, KAI Izumo, KAI Ito, KAI Hakone, KAI Aso and KAI Kawaji.

26.8 29.5 35.7

50.8

62.1 72.3

2010 2011 2012 2013 2014 2015

Changes in recognition rate

Sales comparison of properties operated by the Hoshino Resorts Group

1st Tokyu Hotels

2nd Hotel Okura

9

15th15th

13th

7th

7th

3rd

Internal growth (management results highlights) (2)

From May 2014 to April 2015

From May 2015 to April 2016 (Note 1)


22 Solare properties Sales (Note) ¥3,276 million ¥3,719 million ¥442 million

4 ANA Crowne Plaza propertiesFrom May 2014 to April 2015

From May 2015 to April 2016


ANA Crowne Plaza Hiroshima

Guest room occupancy rate 80.2% 82.7% 2.6 pt.ADR ¥10,329 ¥12,037 ¥1,708RevPAR ¥8,280 ¥9,957 ¥1,677Sales (Note) ¥4,630 million ¥4,992 million ¥361 million

ANA Crowne Plaza Fukuoka

Guest room occupancy rate 88.4% 88.8% 0.4 pt.ADR ¥11,240 ¥13,003 ¥1,763RevPAR ¥9,935 ¥11,551 ¥1,616Sales (Note) ¥2,908 million ¥3,172 million ¥264 million

ANA Crowne Plaza Kanazawa

Guest room occupancy rate 79.5% 84.6% 5.1 pt.

ADR ¥11,753 ¥15,852 ¥4,099

RevPAR ¥9,339 ¥13,411 ¥4,072Sales (Note) ¥3,067 million ¥3,633 million ¥566 million

ANA Crowne Plaza Toyama

Guest room occupancy rate 77.8% 75.6% -2.2 pt.ADR ¥8,545 ¥10,274 ¥1,729RevPAR ¥6,652 ¥7,771 ¥1,119Sales (Note) ¥2,542 million ¥2,657 million ¥114 million

22 Solare properties

(Note) Sales are rounded off to the nearest million.

10

1.78%

1.84% 1.71% 1.82%

1.66%

1.10% 1.14%

4.1

3.8 3.5 3.3

2.5

3.6 4.0

0.0

1.0

2.0

3.0

4.0

5.0

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%

平成25年

10月期

平成26年

4月期

平成26年

10月期

平成27年

4月期

平成27年

10月期

平成28年

4月期

平成28年

6月17日現在

Average interest rate (left axis) Average remaining period of loans (right axis)

37.7%35.5%

22.8%20.6% 18.6%

27.8%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

平成25年

10月期

平成26年

4月期

平成26年

10月期

平成27年

4月期

平成27年

10月期

平成28年

4月期

Finances (1)

As of June 17, 2016

Generating acquisition capacity by controlling LTV

Diversification of final repayment dates

（LTV）

Aim to build a more stable financial base by making long-term fixed loans and controlling LTV.

11

Realizing significant reduction of interest costs

(years)

(Unit: millions of yen)

3,085

125 825

3,525

2,381

92

3,792

2,492

1,201 872

3,558 3,058

1,258

437 30 30 30

1,141

8 437 0

1,000

2,000

3,000

4,000

平成28年

10月期

平成29年

4月期

平成29年

10月期

平成30年

4月期

平成30年

10月期

平成31年

4月期

平成31年

10月期

平成32年

4月期

平成32年

10月期

平成33年

4月期

平成33年

10月期

平成34年

4月期

平成34年

10月期

平成35年

4月期

平成35年

10月期

平成36年

4月期

平成36年

10月期

平成37年

4月期

平成37年

10月期

平成38年

4月期

FP ending Oct. 2016

FP ending Apr. 2017

FP ending Oct. 2017

FP ending Apr. 2018

FP ending Oct. 2018

FP ending Apr. 2019

FP ending Oct. 2019

FP ending Apr. 2020

FP ending Oct. 2020

FP ending Apr. 2021

FP ending Oct. 2021

FP ending Apr. 2022

FP ending Oct. 2022

FP ending Apr. 2023

FP ending Oct. 2023

FP ending Apr. 2024

FP ending Oct. 2024

FP ending Apr. 2025

FP ending Oct. 2025

FP ending Apr. 2026

FP ended Oct. 2013

FP ended Apr. 2014

FP ended Oct. 2014

FP ended Apr. 2015

FP ended Oct. 2015

FP ended Apr. 2016

FP ended Oct. 2013

FP ended Apr. 2014

FP ended Oct. 2014

FP ended Apr. 2015

FP ended Oct. 2015

FP ended Apr. 2016

As of Jun. 17, 2016

Finances (2)

12

35.8%

28.9%

25.4%

2.8%

2.8%

1.4%1.1%

1.1%

0.7%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Sumitomo Mitsui Banking Corporation

Development Bank of Japan Inc.

The Ashikaga Bank, Ltd.

The Shizuoka Bank, Ltd.

The Hokuriku Bank, Ltd.

The Bank of Fukuoka, Ltd.

The Bank of Kyoto, Ltd.

The Yamaguchi Bank, Ltd.

Bank formation

Credit Rating Agency

Japan Credit Rating Agency, Ltd.

(JCR)

Subject of Rating

Long-term issuer rating

Rating A-

Outlook Stable

As of June 17, 2016

Newly acquired rating

Impact of the 2016 Kumamoto Earthquakes

Properties owned in the Kyushu region

KAI Aso

Since April 14, 2016, series of earthquakes have occurred with epicenter in the Kumamoto and Oita prefectures.Although damages such as partial damage of the water tank at Chisun Inn Kumamoto Miyukifueda located in Kumamoto Prefecture and partial damage of the interior at KAI Aso located in Oita Prefecture were confirmed and the both properties were temporarily closed, neither of them had major impact on the Hoshino Resorts REIT’s operation status. Furthermore, there were no damages in the Hoshino Resorts REIT’s other owned properties located in the Kyushu region.

13


Chisun Inn Kagoshima Taniyama

Chisun Inn Tosu Chisun Inn MunakataChisun Inn Kumamoto Miyukifueda

II. Operational Results for Each Property

Operational results

2015 2016Accumulated total (Note 3)

(Reference)May 2014 –Apr. 2015

Accumulated total

ChangeMay Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr.

Guest roomoccupancy rate

89.6% 89.1% 97.4% 99.1% 92.7% 84.1% 83.3% 77.0% 71.8% 72.2% 68.4% 72.0% 83.4% 81.1% 2.3 pt.

ADR (yen) 69,166 59,899 72,431 96,157 80,110 76,015 68,508 70,605 64,821 61,362 61,884 69,800 71,872 65,852 6,020

RevPAR (yen) 61,979 53,390 70,520 95,271 74,249 63,914 57,095 54,337 46,520 44,325 42,336 50,250 59,907 53,394 6,513

Sales(millions of yen)

304 248 321 441 326 295 255 237 164 187 195 221 3,193 2,915 278

HOSHINOYA Karuizawa

Address: Karuizawa-machi, Kitasaku-gun, Nagano

Number of guest rooms: 77 rooms

(Note 1) The monthly major indices are based on figures provided by the lessee, Hoshino Resorts Inc. (Note 2) Figures for guest room occupancy rates are rounded to one decimal place, and figures for ADR, RevPAR and Sales are rounded to the nearest specified unit.(Note 3) Accumulated total indicates average values from May 2015 to April 2016 for Guest room occupancy rate, ADR and RevPAR, and total value over the period from May 2015 to April 2016 for Sales.

Operational results for each property (1)

15

0

20,000

40,000

60,000

80,000

100,000

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

11月 12月 1月 2月 3月 4月ADR（円）平成26年11月～平成27年4月 ADR（円）平成27年11月～平成28年4月

客室稼働率平成26年11月～平成27年4月客室稼働率平成27年11月～平成28年4月

(yen)

ADR (yen) Nov. 2014 – Apr. 2015

Guest room occupancy rate Nov. 2014 – Apr. 2015

ADR (yen) Nov. 2015 – Apr. 2016


Nov. Dec. Jan. Feb. Mar. Apr.

0

20,000

40,000

60,000

80,000

100,000

120,000

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%



HOSHINOYA Kyoto

Address: Kyoto-shi, Kyoto


(Note 1) The monthly major indices are based on figures provided by the lessee, K.K. Arashiyama Onsen Rankyokan.(Note 2) Figures for guest room occupancy rates are rounded to one decimal place, and figures for ADR, RevPAR and sales are rounded to the nearest specified unit.(Note 3) Figure for Change is not indicated due to its operational results from December 7, 2015 to March 16, 2016 not existing as operations were suspended to conduct renovation work.(Note 4) Accumulated total indicates average values from May 2015 to April 2016 for Guest room occupancy rate, ADR and RevPAR, and total value over the period from May 2015 to April 2016 for Sales.

Operational results



Accumulated total



93.9% 87.6% 85.7% 84.5% 87.6% 96.9% 97.7% 96.7% －－ 79.2% 78.7% 88.7% 84.7% 4.0 pt.

ADR (yen) 75,905 70,571 76,855 86,180 84,847 90,787 101,884 108,554 －－ 108,005 106,155 88,251 76,942 11,309

RevPAR (yen) 71,302 61,820 65,830 72,836 74,326 87,976 99,575 104,936 －－ 85,540 83,508 78,305 65,191 13,114


93 80 78 93 92 113 116 25 －－ 50 96 836 962 － (Note 3)


16

(yen)


ADR (yen) Nov. 2014 – Apr. 2015


ADR (yen) Nov. 2015 – Apr. 2016


0

10,000

20,000

30,000

40,000

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%



Operational results



Accumulated total



74.5% 67.1% 91.1% 97.6% 89.5% 86.4% 83.4% 70.3% 70.1% 63.9% 63.8% 54.3% 76.3% 78.5% -2.2 pt.

ADR (yen) 27,093 22,501 35,098 52,065 32,666 27,817 24,091 34,811 35,861 28,100 32,510 29,743 32,450 27,337 5,113

RevPAR (yen) 20,182 15,092 31,991 50,835 29,228 24,024 20,082 24,489 25,123 17,954 20,749 16,157 24,746 21,449 3,297


422 304 480 659 439 415 336 308 200 217 275 226 4,281 4,124 157


Address: Hokuto-shi, Yamanashi


(Note 1) The monthly major indices are based on figures provided by the lessee, K.K. Horizon Hotels.(Note 2) Figures for guest room occupancy rates are rounded to one decimal place, and figures for ADR, RevPAR and Sales are rounded to the nearest specified unit.(Note 3) Accumulated total indicates average values from May 2015 to April 2016 for Guest room occupancy rate, ADR and RevPAR, and total value over the period from May 2015 to April 2016 for Sales.


17

(yen)


ADR (yen) Nov. 2014 – Apr. 2015


ADR (yen) Nov. 2015 – Apr. 2016


6 KAI properties

Total number of guest rooms: 181 rooms

Operational results



Accumulated total



74.6% 65.7% 69.2% 86.0% 75.2% 73.4% 74.1% 72.3% 66.0% 73.4% 75.9% 69.2% 73.0% 73.3% -0.3 pt.

ADR (yen) 38,325 29,220 34,924 49,778 38,460 38,896 39,277 40,510 38,650 32,407 35,757 38,925 38,233 34,792 3,441

RevPAR (yen) 28,599 19,194 24,176 42,805 28,915 28,546 29,122 29,296 25,494 23,773 27,134 26,934 27,923 25,515 2,408


315 229 275 430 307 312 313 310 263 265 318 259 3,597 3,407 191

(Note 1) 6 KAI properties refer to KAI Matsumoto, KAI Izumo, KAI Ito, KAI Hakone, KAI Aso and KAI Kawaji.(Note 2) The monthly major indices are based on figures provided by the lessee, Hoshino Resort Management Co., Ltd. (Note 3) Figures for guest room occupancy rates are rounded to one decimal place, and figures for ADR, RevPAR and Sales are rounded to the nearest specified unit.(Note 4) Accumulated total indicates average values from May 2015 to April 2016 for Guest room occupancy rate, ADR and RevPAR, and total value over the period from May 2015 to April 2016 for Sales.

0

10,000

20,000

30,000

40,000

50,000

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%




18

(yen)


ADR (yen) Nov. 2014 – Apr. 2015


ADR (yen) Nov. 2015 – Apr. 2016


Total number of guest rooms: 2,205 rooms

0

2,000

4,000

6,000

8,000

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%





Operational results



Accumulated total



78.6% 76.0% 79.9% 83.8% 80.3% 83.3% 80.4% 76.7% 71.3% 77.9% 79.7% 77.6% 78.8% 79.1% -0.3 pt.

ADR (yen) 5,895 5,299 5,650 6,717 5,754 5,483 5,409 5,383 5,334 5,310 5,622 5,662 5,638 5,386 252

RevPAR (yen) 4,635 4,028 4,514 5,626 4,623 4,568 4,350 4,126 3,801 4,135 4,481 4,394 4,443 4,262 181


301 256 296 408 325 331 307 301 277 281 327 309 3,719 3,276 442

(Note 1) The monthly major indices are based on figures provided by the lessee, SHR Roadside Inn Co., Ltd. (Note 2) Figures for guest room occupancy rates are rounded to one decimal place, and figures for ADR, RevPAR and Sales are rounded to the nearest specified unit.(Note 3) Accumulated total indicates average values from May 2015 to April 2016 for Guest room occupancy rate, ADR and RevPAR, and total value over the period from May 2015 to April 2016 for Sales.

19

(yen)


ADR (yen) Nov. 2014 – Apr. 2015


ADR (yen) Nov. 2015 – Apr. 2016


Total number of guest rooms: 1,229 rooms


4 ANA Crowne Plaza properties

Operational results



Accumulated total



86.4% 84.4% 84.2% 89.0% 86.5% 88.9% 88.9% 75.6% 66.0% 81.3% 83.1% 85.0% 83.3% 81.7％ 1.6 pt.

ADR (yen) 13,269 11,117 11,867 13,919 13,487 13,393 13,369 12,161 11,637 11,834 12,354 14,217 12,764 10,519 2,245

RevPAR (yen) 11,459 9,382 9,997 12,393 11,661 11,902 11,887 9,189 7,680 9,626 10,265 12,083 10,626 8,593 2,033


1,295 1,205 1,216 1,142 1,192 1,394 1,374 1,255 982 1,029 1,200 1,170 14,453 13,148 1,305

(Note 1) The monthly major indices are based on figures provided by the lessee, K.K. Horizon Hotels.(Note 2) Figures for guest room occupancy rates are rounded to one decimal place, and figures for ADR, RevPAR and Sales are rounded to the nearest specified unit.(Note 3) Accumulated total indicates average values from May 2015 to April 2016 for Guest room occupancy rate, ADR and RevPAR, and total value over the period from May 2015 to April 2016 for Sales.

20

0

4,000

8,000

12,000

16,000

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%



(yen)

ADR (yen) Nov. 2014 – Apr. 2015


ADR (yen) Nov. 2015 – Apr. 2016



Forecasts for 7th fiscal period ending October 2016 and 8th fiscal period ending April 2017 (1)

FP ending October 2016 Assumption FP ending April 2017 Assumption

Operating revenue(millions of yen)

3,981

[Operating revenue]Fixed rent ¥3,100 millionFloating rent ¥870 million

[Operating expenses]Fixed assets tax, city planning tax, etc.

¥286 millionDepreciation ¥839 millionMaintenance/repair expenses

¥114 millionAsset management fees

¥343 million

[Non-operating expenses]Public-offering-related expenses

¥35 millionDebt-financing-related expenses

¥250 million

[Expected LTV at the end of FP]25.6％

Operating revenue(millions of yen)

4,042

[Operating revenue]Fixed rent ¥3,105 millionFloating rent ¥926 million

[Operating expenses]Fixed assets tax, city planning tax, etc.

¥303 millionDepreciation ¥853 millionMaintenance/repair expenses

¥142 millionAsset management fees ¥345 million

[Non-operating expenses]Debt-financing-related expenses

¥205 million

[Expected LTV at the end of FP]25.2％

Operating income(millions of yen)

2,091Operating income(millions of yen)

2,066

Ordinary income(millions of yen) 1,808 Ordinary income

(millions of yen) 1,862

Net income(millions of yen) 1,807 Net income

(millions of yen) 1,861

Distribution per unit (yen) 22,104 Distribution

per unit (yen) 22,764

(Amounts are rounded down. Ratios are rounded off.)

21

Forecasts for 7th fiscal period ending October 2016 and 8th fiscal period ending April 2017 (2)

Expected rent for the 7th fiscal period ending October 2016 Expected rent for the 8th fiscal period ending April 2017(million yen) (million yen)

22

Rent type Name of facility, etc. Fixed rent

Floating rent

(announced on June 15)

Otherrent

Total

Fixed rent +

floating rent

(sales-linked) (Note 2)

HOSHINOYA Karuizawa

HOSHINOYA Kyoto393 107 － 501

RISONARE Yatsugatake 262 59 － 321

KAI MatsumotoKAI Izumo

KAI ItoKAI Hakone

KAI AsoKAI Kawaji

233 54 － 287

22 Solare properties558

(Note 4)128 10 697

Fixed rent 5 Candeo properties3 Greens properties

269 －－ 269

Fixed rent +

floating rent

(profit-linked) (Note 2)

RISONARE Atami

KAI Kinugawa

KAI Kaga

Asahikawa Grand Hotel

543(Note 5) －－ 543

4 ANA Crowne Plaza

properties 840 520 － 1,360

Total 3,100 870 10 3,981

(Note 1) Floating rent is calculated based on actual figures of past sales and profits of each facility, reflecting seasonal factors and other fluctuating factors, using calculation methods prescribed in the lease agreement of each facility. For 5 Candeo properties and 3 Greens properties, as well as Chisun Inn Kagoshima Taniyama, RISONARE Atami, KAI Kinugawa, KAI Kaga and Asahikawa Grand Hotel which will have premium fixed rent from the fiscal period ending October 2016, floating rent will not apply.

(Note 2) Sales-linked floating rent is calculated deeming sales of the 12 months from April 2015 to March 2016 as the base sales. Profit-linked floating rent is calculated deeming profits of the 12 months from December 2014 to November 2015 as the base profits.

(Note 3) Among the properties owned by HRR, the 22 hotels operated by SHR Roadside Inn Co., Ltd. are referred to as 22 Solare properties, the 5 properties operated by Candeo Hospitality Management, Inc. as 5 Candeo properties, the 3 properties operated by Greens Co., Ltd. as 3 Greens properties and the 4 properties operated by IHG ANA Hotels Group Japan LLC as 4 ANA Crowne Plaza properties.

(Note 4) Out of 22 Solare properties, since Chisun Inn Kagoshima Taniyama has premium fixed rent during the fiscal period ending October 2016, the figure is calculated based on the premium fixed rent for Chisun Inn Kagoshima Taniyama.

(Note 5) Since RISONARE Atami, KAI Kinugawa, KAI Kaga and Asahikawa Grand Hotel have premium fixed rents during the fiscal period ending October 2016, the premium fixed rents are indicated.

Rent type Name of facility, etc. Fixed rent

Floating rent

(announced on June 15)

Otherrent

Total

Fixed rent +

floating rent

(sales-linked) (Note 2)

HOSHINOYA Karuizawa

HOSHINOYA Kyoto408 96 － 505

RISONARE Yatsugatake 262 57 － 319

KAI MatsumotoKAI Izumo

KAI ItoKAI Hakone

KAI AsoKAI Kawaji

233 52 － 285

22 Solare properties 547 145 10 703

Fixed rent 5 Candeo properties3 Greens properties

269 －－ 269

Fixed rent +

floating rent

(profit-linked) (Note 2)

RISONARE Atami

KAI Kinugawa

KAI Kaga


544(Note 3)

－－ 544

4 ANA Crowne Plaza

properties 840 574 － 1,414

Total 3,105 926 10 4,042

(Note 1) Floating rent is calculated based on actual figures of past sales and profits of each facility, reflecting seasonal factors and other fluctuating factors, using calculation methods prescribed in the lease agreement of each facility. For 5 Candeo properties and 3 Greens properties, as well as RISONARE Atami, KAI Kinugawa, KAI Kaga and Asahikawa Grand Hotel which will have premium fixed rent during the fiscal period ending April 2017, floating rent will not apply.

(Note 2) Sales-linked floating rent is calculated deeming sales of the 12 months from October 2015 to September 2016 as the base sales. Profit-linked floating rent is calculated deeming profits of the 12 months from June 2015 to May 2016 as the base profits.

(Note 3) Since RISONARE Atami, KAI Kinugawa, KAI Kaga and Asahikawa Grand Hotel have premium fixed rents during the fiscal period ending April 2017, the premium fixed rents are indicated.

Rent type (1)

Floating rent (sales-linked) Floating rent (profit-linked)

Rent type Fixed rent + floating rent Fixed rent + floating rent Fixed rent

Index for floating rent Sales Profits －

Number of properties 31 properties 8 properties 8 properties

Acquisition price

Price ¥35.3 billion ¥506 billion ¥7.2 billion

Ratio 37.9% 54.3% 7.7%

Name of facility

HOSHINOYA Karuizawa, HOSHINOYA Kyoto, RISONARE Yatsugatake, KAI Matsumoto,

KAI Izumo, KAI Ito, KAI Hakone, KAI Aso, KAI Kawaji, 22 Solare properties

RISONARE Atami, KAI Kinugawa,KAI Kaga,

4 ANA Crowne Plaza properties,Asahikawa Grand Hotel

5 Candeo properties, 3 Greens properties

Base sales

Base sales x floating rate

Floating

Fixed

Floating

Fixed

Base profits x 95%Base profits

[floating rate]

HOSHINOYA 25.0％

RISONARE 15.0％

KAI 16.0％


36.5％

23

(example) 4 ANA Crowne Plaza properties

6th FP base sales 8th FP base sales 10th FP base sales

Rent type (2)

Period used for base sales for monthly floating rent (Note)

(1) For May to October every year, deem sales for the 12 months from April of the previous year to March of the relevant year as base sales; (2) For November to the following April every year, deem sales for the 12 months from October of the previous year to September of the relevant year as

base sales.

2014 2015 2016 2017May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

3rd FP 4th FP 5th FP 6th FP 7th FP 8th FP 9th FP

6th FP base sales 8th FP base sales

Sales-linked type

Profit-linked type Period used for base sales for monthly floating rent (Note)

(1) For May to October every year, deem sales for the 12 months from December two years prior to November of the previous year as base profits; (2) For November to the following April every year, deem sales for the 12 months from June of the previous year to May of the relevant year as base profits.

2014 2015 2016 2017May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

3rd FP 4th FP 5th FP 6th FP 7th FP 8th FP 9th FP

(Note) The timing of floating rents arising and the specific calculation methods vary depending on the acquisition timing and such of each property. In the lease agreements with each lessee, the starting dates of floating rent are stated as November 1, 2016 (8th FP) for Chisun Inn Kagoshima Taniyama, November 1, 2018 (12th FP) for RISONARE Atami and KAI Kinugawa, November 1, 2019 (14th FP) for Asahikawa Grand Hotel and May 1, 2019 (13th FP) for KAI Kaga. Therefore, floating rent will not arise prior to those said dates regardless of the amounts of sales or profits of the hotels, ryokans and ancillary facilities.

10th FP base sales

7th FP base sales 9th FP base sales

7th FP base sales 9th FP base sales 11th FP base sales

24

III. Future Management Policy

Management policy for the time being

Maintenance of growth and stability of distribution

Continuous improvement in unitholder value

Utilization of Sponsor Support Agreement

Utilization of revitalization know-how of the Hoshino Resorts Group

Utilization of the Asset Management Company’s unique information on properties operated by those other than the Hoshino Resorts Group

External growth strategy

Internal growth by operators and the Asset Management Company

Introduction of floating rent linked to sales or profits

Maintenance/Enhancement of asset value and competitiveness of the portfolio through establishment/execution of capital expenditures and repair plans from a medium-to long-term perspective

Internal growth strategy

1

2

1

2

33

26

13,081

16,649 17,075 18,289

20,520

22,104 22,764

35.5%

22.8%20.6%

18.6%

27.8%25.6% 25.2%

0

0.2

0.4

0.6

0.8

1

0

5,000

10,000

15,000

20,000

25,000 Distribution per unit (yen) LTV（％）

Actual resultFP ended April 2014(2nd fiscal period)

Actual resultFP ended October 2014

(3rd fiscal period)

Actual resultFP ended April 2015(4th fiscal period)

Actual resultFP ended October 2015

(5th fiscal period)

Actual resultFP ended April 2016(6th fiscal period)

ForecastFP ending October 2016

(7th fiscal period)

ForecastFP ending April 2017

(8th fiscal period)

Distribution up by

3,568 yen

Distribution up by

1,214 yen

安定した分配金の実現

Aim for stable improvement in distribution through realization of external growth utilizing public offering and acquisition capacity and internal growth by executing capital expenditures and repair plans from a medium- to long-

term perspective.

2ndPO

Distribution up by

2,231 yen

3rdPO

1stPO

Acquisition during the 5th FP

Realization of stable distribution

Distribution up by

1,584 yen(forecast)

4thPO

27

Distribution up by

660 yen(forecast)

Market trend and strategy for differentiation

The annual accumulated total number of foreign visitors to Japan in 2015 has reached 19.73 million, exceeding the number of outbound Japanese travelers for the first time in 45 years. The government has set “40 million foreign tourists in 2020” as the new goal. Domestic movement for launching new hotels is also active. The hotel transaction market has been very active and competition for acquisitions is intensifying mainly in the cities. The decline in cap rate is expected to deepen further.

Even in the rather over-heated hotel transaction market, HRR will basically target properties that are

competitive but with fewer acquisition competitors on a negotiation basis.

Trends in the hotel property investment market

HRR’s strategy for differentiation

Superior know-how and experience

Whether it has a business model, brand power, etc. that can differentiate itself from competitors, and whether it is operated by an operator with extensive expertise

Superior equipment and facilities

Whether the facility itself possesses superiority as to its location, rarity of the building, etc.

Criteria for selecting investment properties

28

Utilization of the Asset Management Company’s unique information on properties operated by those other than the Hoshino Resorts Group

HRR is collecting information on property acquisitions by establishing networks not only with the Hoshino Resorts Group but also with the owners and operators of hotels, ryokans and ancillary facilities across the nation. HRR will strive to acquire competitive properties by utilizing the Asset Management Company’s unique information gathering ability.

III

Aim for asset size of 200 billion yen

External growth strategy

While focusing on stable growth and the speed of external growth, HRR will aim to make continuous property acquisitions from the Hoshino Resorts Group and also to acquire properties operated by those other than the

Hoshino Resorts Group from which long-term and stable cash flow can be expected.

External growth

[Measures for realization of external growth]

I Utilization of Sponsor Support Agreement

HRR will utilize the comprehensive sponsor support, such as information on properties owned by the Hoshino Resorts Group, the provision of human/material resources, knowledge, experience and know-how in the tourism industry and the resort sector, etc.

II Utilization of revitalization know-how of the Hoshino Resorts Group

HRR will be provided with information on properties that have regained attractiveness through revitalization know-how of the Hoshino Resorts Group.

29

Hotels and ryokans operated by the Hoshino Resorts Group

KAINikko

HOSHINOYAKaruizawa

HotelBleston Court

KAI Aso

HOSHINOYA Kyoto

KAIEnshu

KAI Hakone

KAI Atami

RISONARE Atami

UTOCOAuberge & Spa

KAI Izumo

RISONARETomamu

TomamuTomamu SKI Resort

Alts Bandai Ski Resort

Ura Bandai NekomaSki Resort Ura Bandai Hotel

BandaisanOnsen Hotel

KAI Ito

HOSHINOYA Fuji

HOSHINOYA Tokyo(scheduled to open in July 2016)

KAI Kaga KAI Kawaji

KAI Alps(scheduled to open in 2017)

RISONARE YatsugatakeKAI

Matsumoto

Aomoriya

KAITsugaru

Oirase Keiryu Hotel

(Excluding the above properties)

HRR’s portfolio

Hoshino Resorts Group’s portfolio

L'Hotel de Hiei

KAI Kinugawa

VietnamThailand

Myanmar

Philippines

HOSHINOYA Bali(scheduled to open in 2016)

Indonesia

Malaysia

China

RISONAREKohamajima

IriomoteIsland

IshigakiIsland

HOSHINOYATaketomijimaTaketomi

Island

Kuro IslandAragusukuIsland

Okinawa PrefectureYaeyama Islands

Tahiti

Kiaora Rangiroa(Source) Prepared by the Asset Management Company based on materials provided by Hoshino Resorts Inc.(Note 1) Based on information as of June 17, 2016.(Note 2) The map shows facilities operated by the Hoshino Resorts Group and includes properties that are not acquired by HRR. There are

no specific plans or guarantee that HRR will acquire these properties in the future, as of June 17, 2016.(Note 3) The scheduled openings are subject to change.

30

HRR will aim to realize both stable distribution and growth of distribution through the expansion of sales or profits that are indices for floating rent as well as maintenance/improvement of the competitiveness of facilities.

Internal growth strategy

Internal growth

[Measures for realization of internal growth]

I Internal growth by operators and the Asset Management Company HRR intends to maintain/enhance the competitiveness of facilities by selecting property management operators who

have a deep understanding of HRR’s property features and possess business models and know-how that are deemed to be optimum based on characteristics of the relevant properties.

The Asset Management Company will aim to reinforce the profitability of the portfolio by conducting operation, management and renewals for maintaining/enhancing the competitiveness of facilities.

II Introduction of floating rent linked to sales or profits HRR will discuss introduction of floating rent linked to sales or profits in accordance with calculation method for

floating rents set with consideration given to the facility’s brand and operating features, in addition to the fixed rent system, in the lease agreement. HRR believes this is a system that will enable HRR to enjoy the enhanced business results of hotels, ryokans and ancillary facilities operated with the know-how of operators and lessees.

III Maintenance/Enhancement of asset value and competitiveness of the portfolio through establishment/execution of capital expenditures and repair plans from a medium- to long-term perspective HRR will aim for stable earnings from operations by reducing the future excessive risks of major repairs, and of

decreased sales resulting from deterioration of facility attractiveness through careful and sufficient capital expenditures, while at the same time making efforts to maintain/enhance the asset value and competitiveness of the portfolio from a medium-term perspective.

31

Future initiatives (scheduled)

Initiatives for stable maintenance and improvement of the portfolio management results

Hoshino Resorts REIT is executing capital expenditures and repairs for maintaining and improving operational results by cooperating with lessees and operators and utilizing their know-how on facility operation in addition to ours.

Examples of initiatives during 6th FP

HOSHINOYA KyotoRenovation of guest rooms and common use areas involving suspension of operationsFrom December 2015 to March 2016, efforts such as renovation work on guest rooms and common use areas that involve suspension of operations were conducted in cooperation with the operator. Through this initiative, Hoshino Resorts REIT aims to secure stable profit in the future by maintaining the quality of HOSHINOYA Kyoto to what appropriate for the accommodation facility realizing high ADR as well as achieving creation of new appeal through the improvement of value.

ANA Crowne Plaza HiroshimaIncreasing number of and renovation of club rooms

From January to February 2016, the number of club rooms, which is differentiated from ordinary guest rooms by providing services and environment of higher class, were increased while renovation work on existing club rooms were conducted.

Aim for improving ADR of the facilities and further increase in

profits.

32

RISONAREYatsugatake

Renovation of a restaurant (YY grill) and guest rooms

RISONARE Atami Renovation of lounge (Books & Café) and guest rooms

KAI Hakone Renovation of guest rooms and large common bath

IV. Appendix

KAI Matsumoto

Address Matsumoto-shi, Nagano

Acquisition Price ¥600 million

Real estate appraisal value

¥745 million

Appraisal NOI yield 10.2％

Name of tenantHoshino Resort

Management Co., Ltd.

Number of guest rooms

26

HOSHINOYA Karuizawa

AddressKaruizawa-machi,

Kitasaku-gun, Nagano

Acquisition Price ¥7,600 million


¥10,900 million


Name of tenant Hoshino Resorts Inc.


77

RISONARE Atami

Address Atami-shi, Shizuoka



¥4,000 million


Name of tenant K.K. Horizon Hotels


76

HOSHINOYA

KAI

KAI Izumo

Address Matsue-shi, Shimane



¥822 million





24

(Note) Figures are based on real estate appraisal reports which evaluated values as of April 30, 2016. Appraisal NOI (Net Operating Income) is defined as operating revenues less operating expenses contained in the relevant real estate appraisal report, which is before depreciation. This is different from NCF (Net Cash Flow) calculated by subtracting gain on investment of leasehold deposit, etc., and capital expenditures from NOI. Appraisal NOI yield is the figure calculated by the Asset Management Company by dividing appraisal NOI by the acquisition price.

Portfolio overview (assets under management) (1)

HOSHINOYA Kyoto

Address Kyoto-shi, Kyoto



¥3,550 million


Name of tenantK.K. Arashiyama Onsen

Rankyokan


25


Address Hokuto-shi, Yamanashi



¥5,920 million




172

RISONARE

34


KAI

KAI Kawaji

Address Nikko-shi, Tochigi



¥1,130 million





54

KAI Hakone

AddressHakone-machi,

Ashigarashimo-gun, Kanagawa



¥1,220 million





31

KAI Aso

AddressKokonoe-machi, Kusu-gun,

Oita



¥674 million





12

(Note) Figures for the 5 properties except for KAI Kaga are based on real estate appraisal reports which evaluated values as of April 30, 2016, and figures for KAI Kaga is based on that as of February 29, 2016. Appraisal NOI (Net Operating Income) is defined as operating revenues less operating expenses contained in the relevant real estate appraisal report, which is before depreciation. This is different from NCF (Net Cash Flow) calculated by subtracting gain on investment of leasehold deposit, etc., and capital expenditures from NOI. Appraisal NOI yield is the figure calculated by the Asset Management Company by dividing appraisal NOI by the acquisition price.

KAI Ito

Address Ito-shi, Shizuoka



¥881 million





34

KAI Kinugawa

Address Nikko-shi, Tochigi



¥3,280 million


Name of tenant Hoshino Resorts Inc.


48

KAI Kaga

Address Kaga-shi, Ishikawa



¥3,300 million


Name of tenantK.K. Arashiyama Onsen

Rankyokan


48

35


Others

Chisun Inn Toyokawa IC

Address Toyokawa-shi, Aichi



¥720 million


Name of tenantSHR Roadside Inn Co.,

Ltd.


94

Chisun Inn Tosu

Address Tosu-shi, Saga



¥600 million



Ltd.


92

Chisun Inn Chiba Hamano R16

Address Chiba-shi, Chiba



¥1,010 million



Ltd.


94

Chisun Inn Shiojiri Kita IC

Address Shiojiri-shi, Nagano



¥799 million



Ltd.


92

Chisun Inn Sano Fujioka IC

Address Sano-shi, Tochigi



¥894 million



Ltd.


92

Chisun Inn Suwa IC

Address Suwa-shi, Nagano



¥788 million



Ltd.


92

36



Others

Chisun Inn Fukushima Nishi IC

AddressFukushima-shi,

Fukushima



¥765 million



Ltd.


98

Chisun Inn Niigata Chuo IC

Address Niigata-shi, Niigata



¥736 million



Ltd.


98

Chisun Inn Nagasaki Airport

Address Omura-shi, Nagasaki



¥746 million



Ltd.


92


Chisun Inn Kumamoto Miyukifueda

AddressKumamoto-shi,

Kumamoto



¥708 million



Ltd.


98

Chisun Inn Utsunomiya Kanuma

Address Utsunomiya-shi, Tochigi



¥823 million



Ltd.


98

Chisun Inn Fukui

Address Fukui-shi, Fukui



¥752 million



Ltd.


98

37


Others

Chisun Inn Marugame Zentsuji

Address Marugame-shi, Kagawa



¥679 million



Ltd.


98

Chisun Inn Munakata

Address Munakata-shi, Fukuoka



¥613 million



Ltd.


98

Chisun Inn Iwate Ichinoseki IC

Address Ichinoseki-shi, Iwate



¥763 million



Ltd.


92

Chisun Inn Hitachinaka

Address Hitachinaka-shi, Ibaraki



¥900 million



Ltd.


92

Chisun Inn Tsuchiura Ami

AddressAmi-machi, Inashiki-gun,

Ibaraki



¥918 million



Ltd.


92

Chisun Inn Kofu Isawa

Address Fuefuki-shi, Yamanashi



¥777 million



Ltd.


92

38



Others

Candeo Hotels Handa

Address Handa-shi, Aichi



¥684 million


Name of tenant Candeo Hospitality Management, Inc.


126

Candeo Hotels Chino

Address Chino-shi, Nagano



¥903 million




119

Chisun Inn Karuizawa

AddressKaruizawa-machi,

Kitasaku-gun, Nagano



¥1,040 million



Ltd.


90

Chisun Inn Himeji Yumesakibashi

Address Himeji-shi, Hyogo



¥724 million



Ltd.


98

Chisun Inn Kurashiki Mizushima

Address Kurashiki-shi, Okayama



¥845 million



Ltd.


98

Candeo Hotels Fukuyama

Address Fukuyama-shi, Hiroshima



¥1,220 million




164

39



Others

Comfort Hotel Tomakomai

Address Tomakomai-shi, Hokkaido



¥1,060 million


Name of tenant Greens Co., Ltd.


123

Comfort Hotel Hakodate

Address Hakodate-shi, Hokkaido



¥1,030 million




139

Candeo Hotels Sano

Address Sano-shi, Tochigi



¥1,440 million




124

Candeo Hotels Kameyama

Address Kameyama-shi, Mie



¥524 million




170


Address Kagoshima-shi, Kagoshima



¥2,210 million


Name of tenant SHR Roadside Inn Co., Ltd.


217

Comfort Hotel Kure

Address Kure-shi, Hiroshima



¥1,210 million




149

40



Others


Address Toyama-shi, Toyama



¥4,420 million




251


Address Kanazawa-shi, Ishikawa



¥7,150 million




249


Address Hiroshima-shi, Hiroshima



¥19,700 million




409


Address Fukuoka-shi, Fukuoka



¥8,440 million




320


Address Asahikawa-shi, Hokkaido



¥4,770 million


Name of tenant Asahikawa Grand Hotel Co., Ltd.


237

41


Operational results2015 2016 Accumulated

totalMay Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr.Guest room occupancy rate 69.9% 77.5% 79.6% 92.0% 81.0% 75.0% 82.8% 84.7% 86.0% 83.1% 90.0% 75.0% 81.3%

ADR (yen) 41,826 31,781 45,615 66,930 41,397 43,255 39,400 47,914 45,300 37,036 42,599 45,732 44,635

RevPAR (yen) 29,222 24,623 36,302 61,590 33,536 32,460 32,626 40,566 38,976 30,780 38,332 34,279 36,273

Sales (millions of yen) 109 85 134 208 119 118 122 135 97 97 142 118 1,486

RISONARE Atami




ADR (yen) 39,078 31,260 37,406 57,507 42,310 40,331 38,116 40,631 36,587 28,159 31,447 39,114 39,356

RevPAR (yen) 35,248 23,660 32,023 55,152 37,916 34,326 28,147 28,077 24,324 17,740 21,147 24,973 30,527

Sales (millions of yen) 56 37 51 75 55 53 44 41 27 31 37 38 543



ADR (yen) 37,439 30,931 34,747 46,154 37,427 36,585 41,399 38,157 37,572 35,878 40,925 49,487 38,935

RevPAR (yen) 35,375 27,580 30,454 45,844 37,115 36,290 40,882 35,336 29,946 30,950 38,175 40,002 35,735




ADR (yen) 38,509 27,347 32,555 51,316 37,098 31,255 30,556 39,767 35,923 31,497 38,752 33,802 36,230

RevPAR (yen) 25,612 16,542 23,721 47,518 28,042 22,126 22,917 30,047 26,005 26,482 31,326 21,943 26,945




ADR (yen) 43,640 32,877 37,436 52,820 41,888 42,626 45,385 47,187 42,173 37,599 37,938 43,270 42,328

RevPAR (yen) 29,375 18,029 20,062 36,331 28,050 27,590 33,282 37,109 32,509 29,486 30,714 34,654 29,783


KAI Matsumoto

KAI Izumo

KAI Ito

KAI Hakone

42


totalMay Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr.Guest room occupancy rate －－－－－－－ 56.4% 53.4% 51.7% 54.8% 52.8% 53.8%

ADR (yen) －－－－－－－ 32,883 32,081 28,908 30,719 36,319 32,240

RevPAR (yen) －－－－－－－ 18,541 17,119 14,949 16,832 19,168 17,360

Sales (millions of yen) －－－－－－－ 57 54 45 53 55 264

KAI Kinugawa




ADR (yen) 28,616 21,810 26,967 38,679 27,999 34,536 33,173 30,754 31,845 22,429 23,495 27,509 29,218

RevPAR (yen) 18,616 12,965 15,851 31,169 16,731 20,094 19,617 17,380 14,680 13,811 14,933 16,954 17,816


KAI Kawaji



ADR (yen) 6,162 5,463 5,829 6,891 6,104 5,677 5,457 5,030 5,014 5,014 5,208 5,558 5,657

RevPAR (yen) 4,811 3,822 4,406 5,840 5,005 4,711 4,178 3,455 3,062 3,570 3,908 4,412 4,268




ADR (yen) 5,810 5,368 5,484 6,118 5,557 5,473 5,692 5,885 5,767 5,512 5,855 5,721 5,689

RevPAR (yen) 5,056 4,917 4,643 5,611 4,997 4,916 4,943 5,160 4,558 4,498 5,030 4,917 4,940


Chisun Inn Shiojiri Kita IC

Chisun Inn Sano Fujioka IC



ADR (yen) 60,941 47,639 58,694 74,740 61,934 61,700 61,777 61,254 61,831 56,507 58,759 61,797 60,981

RevPAR (yen) 52,095 32,170 44,810 65,699 52,472 58,051 57,315 52,527 45,821 45,071 51,809 43,622 50,540


KAI Aso

43




ADR (yen) 5,542 4,832 5,068 5,800 5,283 4,988 5,049 5,181 5,073 4,985 5,298 5,267 5,207

RevPAR (yen) 3,604 2,717 3,703 4,614 3,791 4,088 3,899 3,953 3,547 3,350 3,912 4,384 3,801


Chisun Inn Tosu



ADR (yen) 5,763 5,817 5,768 6,707 6,085 5,704 5,794 6,146 5,807 5,899 6,251 6,035 5,985

RevPAR (yen) 5,425 4,773 4,952 6,071 5,100 4,969 5,095 5,298 4,675 5,008 5,326 5,267 5,166




ADR (yen) 5,166 4,444 4,827 5,523 5,042 4,806 4,815 4,636 4,868 4,948 5,404 5,700 5,013

RevPAR (yen) 3,766 3,258 3,646 4,053 3,886 3,961 3,881 3,626 3,429 3,733 4,180 4,339 3,814


Chisun Inn Chiba Hamano R16

Chisun Inn Kumamoto Miyukifueda



ADR (yen) 6,180 5,498 5,815 7,202 6,346 5,713 5,550 5,227 5,333 5,263 5,638 6,693 5,884

RevPAR (yen) 4,918 4,065 4,895 6,351 5,318 4,938 4,522 4,158 4,239 4,474 4,553 5,323 4,815




ADR (yen) 5,351 4,804 5,115 5,847 5,344 4,962 5,022 4,886 5,052 4,875 5,237 5,130 5,142

RevPAR (yen) 4,228 3,714 3,991 4,958 4,240 4,124 3,893 3,999 3,954 3,714 4,194 4,119 4,098


Chisun Inn Suwa IC

Chisun Inn Toyokawa IC

44



ADR (yen) 5,503 5,489 5,532 6,324 5,816 5,447 5,456 5,465 5,355 5,403 5,631 5,770 5,604

RevPAR (yen) 4,660 4,731 4,896 5,397 5,095 4,819 4,713 4,199 3,832 4,633 4,812 4,954 4,728


Chisun Inn Fukushima Nishi IC




ADR (yen) 6,116 5,575 5,504 7,281 5,550 5,073 4,918 4,895 4,896 4,890 5,185 5,572 5,502

RevPAR (yen) 4,713 3,938 4,264 6,329 4,490 4,130 3,899 3,027 2,783 3,114 4,463 4,154 4,114




ADR (yen) 5,864 5,544 5,754 6,448 5,750 5,581 5,626 5,470 5,558 5,797 5,791 5,482 5,727

RevPAR (yen) 4,858 4,475 4,666 5,523 4,985 5,005 5,021 4,565 4,426 5,191 4,930 4,120 4,814


Chisun Inn Niigata Chuo IC

Chisun Inn Nagasaki Airport



ADR (yen) 6,030 5,340 5,551 6,432 5,831 5,737 5,617 5,794 5,454 5,534 5,775 5,757 5,743

RevPAR (yen) 4,648 4,135 4,279 5,201 4,754 4,881 4,469 4,583 4,022 4,670 4,857 4,576 4,591




ADR (yen) 5,733 5,234 5,763 6,668 5,780 5,598 5,519 5,340 5,323 5,474 5,670 5,869 5,683

RevPAR (yen) 4,214 3,890 4,429 5,959 4,816 4,514 4,635 4,060 3,748 4,247 4,629 4,649 4,484


Chisun Inn Utsunomiya Kanuma

Chisun Inn Fukui

45



ADR (yen) 5,784 5,133 5,645 7,524 5,951 5,522 5,318 5,338 5,107 5,052 5,670 5,588 5,670

RevPAR (yen) 4,689 3,994 4,795 6,793 4,909 4,452 4,247 4,228 3,534 4,028 4,565 4,163 4,538


Chisun Inn Kofu Isawa




ADR (yen) 5,763 4,883 5,037 6,427 5,234 5,109 4,990 4,947 5,240 5,322 5,909 5,952 5,415

RevPAR (yen) 4,213 2,963 3,869 5,461 4,137 4,064 3,708 3,796 3,605 4,133 4,437 4,083 4,042




ADR (yen) 5,552 4,843 4,983 5,552 5,170 4,843 4,687 5,116 5,011 4,901 5,169 5,101 5,084

RevPAR (yen) 4,013 3,172 3,572 4,157 3,662 3,507 3,482 3,422 3,038 3,234 3,720 3,650 3,555


Chisun Inn Marugame Zentsuji

Chisun Inn Munakata



ADR (yen) 5,800 5,195 5,773 6,551 5,585 5,341 5,428 5,550 5,283 5,188 5,462 5,631 5,575

RevPAR (yen) 4,848 4,306 4,720 5,834 3,931 4,396 4,407 4,219 4,220 4,346 4,945 4,617 4,570




ADR (yen) 5,834 5,331 5,570 5,850 5,353 5,622 5,471 5,737 5,542 5,389 5,642 5,736 5,592

RevPAR (yen) 4,943 4,593 4,603 5,068 4,825 4,880 4,729 4,868 4,298 4,414 4,910 5,096 4,771


Chisun Inn Hitachinaka

Chisun Inn Tsuchiura Ami

46


totalMay Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr.Guest room occupancy rate －－－ 70.6% 72.8% 76.7% 71.0% 71.0% 70.5% 79.5% 73.5% 61.0% 71.8%

ADR (yen) －－－ 5,140 5,173 5,211 5,470 5,187 5,354 5,386 5,466 5,010 5,272

RevPAR (yen) －－－ 3,627 3,764 3,998 3,880 3,680 3,775 4,284 4,016 3,056 3,787

Sales (millions of yen) －－－ 25 27 29 28 28 28 30 29 23 248




ADR (yen) 6,003 5,457 5,668 6,764 5,747 5,448 5,557 5,406 5,435 5,086 5,619 5,395 5,642

RevPAR (yen) 4,603 3,805 4,162 5,423 4,014 4,101 4,519 4,310 3,717 3,669 4,317 4,578 4,272


Chisun Inn Himeji Yumesakibashi




ADR (yen) 5,720 5,271 5,438 5,886 5,747 5,804 5,430 5,251 5,011 5,298 5,836 5,653 5,537

RevPAR (yen) 4,111 4,593 4,491 4,679 4,607 5,234 4,473 4,078 3,619 4,297 5,227 4,855 4,522


Chisun Inn Kurashiki Mizushima



ADR (yen) 5,860 5,047 5,466 6,557 5,424 5,299 5,226 5,099 4,977 4,899 5,257 5,483 5,405

RevPAR (yen) 4,314 3,642 4,277 5,945 4,638 4,544 4,211 3,771 3,633 3,794 4,076 4,021 4,243




ADR (yen) 8,146 6,389 8,768 14,896 9,030 7,667 6,702 6,905 6,951 6,372 7,254 7,107 8,202

RevPAR (yen) 6,910 5,206 7,796 13,731 8,109 7,224 5,635 5,061 4,076 4,453 4,176 5,143 6,476


Chisun Inn Iwate Ichinoseki IC

Chisun Inn Karuizawa

47


48



ADR (yen) 11,503 9,177 10,981 14,295 12,667 13,025 12,934 11,646 10,608 10,517 11,955 14,240 12,037

RevPAR (yen) 10,299 7,794 9,103 13,007 10,798 11,767 11,528 8,316 6,422 8,163 10,336 11,913 9,957





ADR (yen) 17,860 14,816 14,565 18,073 16,992 16,877 16,993 13,731 13,213 13,709 14,559 17,399 15,852

RevPAR (yen) 15,139 13,188 12,663 16,444 15,513 15,434 15,639 10,650 8,075 11,336 11,865 15,039 13,411




ADR (yen) 11,777 10,201 9,936 10,922 11,644 11,147 10,133 9,106 8,497 8,774 8,718 11,321 10,274

RevPAR (yen) 9,488 7,704 7,625 9,100 9,114 9,227 8,143 5,597 5,136 6,632 6,080 9,443 7,771






ADR (yen) 9,239 10,153 15,392 15,691 11,279 8,151 6,299 6,801 6,944 7,829 6,405 6,224 9,735

RevPAR (yen) 7,054 9,396 14,959 14,687 10,892 7,164 4,068 3,985 4,679 6,555 3,906 3,385 7,573





ADR (yen) 13,196 11,218 12,175 12,333 12,975 12,728 13,304 13,260 13,528 13,972 13,495 13,906 13,003

RevPAR (yen) 11,622 9,767 10,928 11,039 11,765 11,424 12,363 11,988 10,977 12,514 12,211 12,072 11,551



48

Previous fiscal period(ended Oct. 31, 2015)

Current fiscal period(ended Apr. 30, 2016)

Liabilities

Current liabilities

Operating accounts payable 20,202 104,560

Short-term loans payable 1,400,000 1,100,000

Current portion of long-term loans payable

2,018,781 4,565,213

Accounts payable 331,635 563,476

Income taxes payable 786 789

Accrued expenses 413 2,715

Advance received 331,335 658,034

Other 3 -

Total current liabilities 4,103,157 6,994,789

Non-current liabilities

Long-term loans payable 5,582,487 22,720,410

Tenant leasehold and security deposits

1,704,501 2,718,309

Total non-current liabilities 7,286,988 25,438,719

Total liabilities 11,390,145 32,433,509

Net assets

Unitholders’ equity

Unitholders’ capital 36,113,352 67,906,895

Surplus

Unappropriated retained earnings (undisposed loss) (−)

908,788 1,600,757

Total surplus 908,788 1,600,757

Total unitholders’ equity 37,022,141 69,507,653

Total net assets 37,022,141 69,507,653

Total liabilities and net assets 48,412,286 101,941,162

Balance sheet for the fiscal period ended April 2016

(Unit: thousands of yen)

49

Previous fiscal period(ended Oct. 31, 2015)

Current fiscal period(ended Apr. 30, 2016)

AssetsCurrent assets

Cash and deposits 4,320,744 8,243,199Operating accounts receivable 31,347 40,416Prepaid expenses 69,612 129,450Consumption tax receivable 563,748 1,205,689Deferred tax asset 13 13Other 178 -Total current assets 4,985,644 9,618,770

Non-current assets

Tangible assets

Buildings 34,615,473 51,692,917Accumulated depreciation -1,321,880 -1,984,232Buildings, net 33,293,593 49,708,684

Structures 933,257 1,311,237Accumulated depreciation -39,679 -58,106Structures, net 893,577 1,253,131

Machinery and equipment 83,801 83,801Accumulated depreciation -16,880 -20,498

Machinery and equipment, net 66,920 63,303

Tools, furniture and fixtures - 458,598

Accumulated depreciation - -50,718Tools, furniture and fixtures, net - 407,879

Land 8,548,067 39,116,980Construction in progress 258,812 70,114Total tangible assets 43,060,971 90,620,094

Intangible assets

Leasehold rights 213,359 1,002,287Software 3,293 11,786Total intangible assets 216,653 1,014,073

Investment and other assets

Long-term prepaid expenses 136,127 375,334Guarantee deposits 10,000 10,000Other 2,890 302,890Total investment and other assets 149,017 688,224

Total non-current assets 43,426,642 92,322,392Total assets 48,412,286 101,941,162

Statement of income for the fiscal period ended April 2016

(Unit: thousands of yen)

50

Previous fiscal period(From May 1, 2015 to Oct. 31, 2015)

Current fiscal period(From Nov. 1, 2015 to Apr. 30, 2016)

Operating revenue

Rent revenue – real estate 1,926,493 3,559,947

Total operating revenue 1,926,493 3,559,947

Operating expenses

Expenses related to rent business 628,413 1,303,096

Asset management fee 186,833 249,568

Asset custody fee 1,747 2,139

Administrative service fees 8,806 10,407

Directors’ compensations 2,640 2,640

Accounting auditors’ compensations 6,000 6,500

Other operating expenses 57,603 71,426

Total operating expenses 892,044 1,645,777

Operating income 1,034,448 1,914,169

Non-operating income

Interest income 493 702

Insurance received 422 -

Interest on refunds - 602

Miscellaneous income 165 17

Total non-operating income 1,081 1,322

Non-operating expenses

Interest expenses 73,254 144,948

Borrowing related expenses 14,575 100,279

Investment unit issuance expenses 38,060 68,634

Total non-operating expenses 125,891 313,863

Ordinary income 909,639 1,601,628

Income before income taxes 909,639 1,601,628

Income taxes –current 886 897

Income taxes –deferred 1 0

Total income taxes 887 897

Net income 908,751 1,600,731

Retained earnings brought forward 37 26

Unappropriated retained earnings (undisposed loss) (−) 908,788 1,600,757

Real estate appraisal value for continuously owned properties as of the end of the fiscal period ended April 2016 (1)

Appraisal value for continuously owned properties

104,483 million yen Unrealized gain 13,338 million yen Net asset per unit 891,032 yen

Total book value 91,144 million yen Unrealized gain per unit 170,990 yen NAV per unit 1,062,022 yen


51

Property No.

Property nameAcquisition

Price

Real estate appraisal value, etc.

Valuation date

2013 2014 2015 2016

Oct. 31 Jan. 31 Apr. 30 Oct. 31 Apr. 30 Jul. 31 Aug. 31 Oct. 31 Apr. 30

H-1HOSHINOYAKaruizawa

7,600 9,160 － 9,240 9,470 9,800 －－ 10,400 10,900

H-2HOSHINOYAKyoto

2,785 － 2,930 － 3,000 3,270 －－ 3,480 3,550

R-1RISONAREYatsugatake

4,500 5,190 － 5,220 5,350 5,540 －－ 5,830 5,920

R-2RISONAREAtami

3,750 －－－－－ 3,920 －－ 4,000

K-1 KAI Matsumoto 600 687 － 688 685 697 －－ 728 745

K-2 KAI Izumo 680 737 － 738 747 758 －－ 803 822

K-3 KAI Ito 670 717 － 723 761 778 －－ 862 881

K-4 KAI Hakone 950 1,090 － 1,100 1,140 1,160 －－ 1,190 1,220

K-5 KAI Aso 575 － 639 － 645 657 －－ 674 674

K-6 KAI Kawaji 1,000 － 1,100 － 1,100 1,110 －－ 1,110 1,130

K-7 KAI Kinugawa 3,080 －－－－－－ 3,220 － 3,280



52

Property No.


Price


Valuation date

2014 2015 2016

Jan. 31 Oct. 31 Apr. 30 Oct. 31 Apr. 30

O-1 Chisun Inn Shiojiri Kita IC 672 743 757 768 786 799

O-2 Chisun Inn Sano Fujioka IC 742 845 845 861 876 894

O-3 Chisun Inn Suwa IC 658 728 746 757 775 788

O-4 Chisun Inn Toyokawa IC 602 665 678 691 708 720

O-5 Chisun Inn Tosu 504 558 568 579 588 600

O-6 Chisun Inn Chiba Hamano R16 798 947 947 971 988 1,010

O-7 Chisun Inn Kumamoto Miyukifueda 616 675 686 697 708 708

O-8 Chisun Inn Utsunomiya Kanuma 714 769 770 795 808 823

O-9 Chisun Inn Fukui 644 702 715 724 738 752

O-10 Chisun Inn Fukushima Nishi IC 672 714 718 739 751 765

O-11 Chisun Inn Niigata Chuo IC 630 686 699 709 725 736

O-12 Chisun Inn Nagasaki Airport 630 688 702 713 730 746

O-13 Chisun Inn Hitachinaka 742 851 852 879 894 900

O-14 Chisun Inn Tsuchiura Ami 770 886 886 896 901 918

O-15 Chisun Inn Kofu Isawa 658 723 738 751 764 777

O-16 Chisun Inn Marugame Zentsuji 588 631 647 656 668 679

O-17 Chisun Inn Munakata 504 536 552 582 606 613

O-18 Chisun Inn Iwate Ichinoseki IC 700 738 739 749 749 763

O-19 Chisun Inn Karuizawa 812 898 918 933 984 1,040

O-20 Chisun Inn Himeji Yumesakibashi 616 672 686 698 712 724

O-21 Chisun Inn Kurashiki Mizushima 728 789 805 814 830 845



53

Property No.


Price


Valuation date

2014 2015 2016

Dec. 15 Feb. 28 May 31 Aug. 15 Oct. 31 Feb. 29 Apr. 30

O-22 Candeo Hotels Handa 620 654 －－－ 670 － 684

O-23 Candeo Hotels Chino 793 868 －－－ 886 － 903

O-24 Candeo Hotels Fukuyama 1,075 1,170 －－－ 1,200 － 1,220

O-25 Candeo Hotels Sano 1,260 1,390 －－－ 1,410 － 1,440

O-26 Candeo Hotels Kameyama 470 501 －－－ 513 － 524

O-27 Comfort Hotel Hakodate 937 － 993 －－ 1,010 － 1,030

O-28 Comfort Hotel Tomakomai 963 － 1,020 －－ 1,040 － 1,060

O-29 Comfort Hotel Kure 1,100 － 1,170 －－ 1,190 － 1,210

O-30 Chisun Inn Kagoshima Taniyama 1,995 －－ 2,140 － 2,160 － 2,210

O-31 ANA Crowne Plaza Hiroshima 17,784 －－－ 19,000 －－ 19,700

O-32 ANA Crowne Plaza Fukuoka 7,599 －－－ 8,100 －－ 8,440

O-33 ANA Crowne Plaza Kanazawa 6,609 －－－ 6,990 －－ 7,150

O-34 ANA Crowne Plaza Toyama 4,008 －－－ 4,280 －－ 4,420

O-35 Asahikawa Grand Hotel 4,619 －－－－－ 4,770 4,770

Major unitholdersNumber of investment

units held(units)

Ratio(%)

Japan Trustee Services Bank, Ltd. (Trust account) 12,776 16.37

Trust & Custody Services Bank, Ltd. (Securities investment trust account) 10,238 13.12

The Master Trust Bank of Japan, Ltd. (Trust account) 6,484 8.31

Nomura Trust and Banking Co., Ltd. (Investment trust account) 3,231 4.14

Hoshino Resorts Inc. 3,070 3.93

JP MORGAN CHASE BANK 385632 2,463 3.15

THE BANK OF NEW YORK, NON-TREATY JASDEC ACCOUNT 1,705 2.18

Nomura Bank (Luxembourg) S.A. 1,238 1.58

STATE STREET BANK AND TRUST COMPANY 505223 892 1.14

SIX SIS LTD. 886 1.13

Total 42,983 55.10

Information on unitholders as of the end of the fiscal period ended April 2016

Individual

Financial institutions (including financial trading operators)

Other domestic corporations

Foreign corporations, etc.

(Note) Ratio indicates the ratio of the number of investment units held to the total investment units issued and outstanding, rounded down to two decimal places

Composition of unitholders

Number of units held by type of unitholder

Total: 78,008 units

Number of investors by type of unitholder

Total: 10,001

17,629 units（22.6%） 38,168 units（48.9%）5,003 units（6.4%）

17,208 units（22.1%）

9,560（95.6%）

81（0.8%） 222

（2.22%） 138（1.38%）

54

Overview of HRR

February 28, 2013Application for registration of HRR was filed by the organizer (Hoshino Resort Asset Management Co., Ltd.) under Article 69-1 of the Act on Investment Trusts and Investment Corporations (Investment Trusts Act)March 6, 2013HRR was registered and established under Article 166 of the Investment Trusts ActMarch 25, 2013Application for registration of HRR was filed under Article 188 of the Investment Trusts ActApril 10, 2013HRR was registered by the Prime Minister under Article 187 of the Investment Trusts Act (registration number 84, filed with the Director of the Kanto Local Financial Bureau)July 12, 2013HRR was listed on the Real Estate Investment Trust Section of the Tokyo Stock Exchange (securities code: 3287)July 16, 2013Asset management started

Structure of HRR

History

HRR

General Meeting of Unitholders

Board of Directors

Executive Officer: Kenji Akimoto

Supervisory Director: Hiroshi Shinagawa

Supervisory Director: Yukiko Fujikawa

Independent AuditorGrant Thornton Taiyo LLC

Sponsor Support

Agreement

Sponsor

Hoshino Resorts Inc.

Asset Management Company

Hoshino Resort Asset Management Co., Ltd.

Asset Management Agreement

Asset Custodian

Mitsubishi UFJ Trust and Banking Corporation

Asset Custody

Agreement

Administrative Agent for Unitholders’ Registry


Transfer Agency

Agreement

Administrative Agent for Operation of Institutions


General Service

Agreement

55

Overview of Asset Management Company

Name Hoshino Resort Asset Management Co., Ltd.Address 6-18, Kyobashi 3-chome, Chuo-ku, TokyoDate of Establishment May 14, 2010Paid-in Capital ¥100 millionShareholder Hoshino Resorts Inc. 100%Registration and Licenses Registration as a Financial Instruments Business: Director of Kanto Local Finance Bureau (Kin-sho) No. 2405

Discretionary Real Estate Transaction License: The Minister of Land, Infrastructure, Transportation and Tourism No.74Building Lots and Buildings Transaction Business License: The Governor of Tokyo No. (1) 94316

Structure of Asset Management Company

Overview

General Meeting of Shareholders

Board of Directors

President & CEO Compliance Officer

Compliance Department

Corporate Planning Department

Investment Management Department

Auditor

Investment Management Committee

Compliance Committee

Finance & Administration Department

56

Contact

TEL：+81-3-5159-6338

Disclaimer

This document is provided for information purposes only and is not a solicitation for investment, nor recommendation or invitation to make specific transactions. We caution readers to undertake investment decisions at their own discretion and responsibility.

This document is not a disclosure document or report based upon the Financial Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations, public listing regulations of the Tokyo Stock Exchange or other related laws and regulations.

This document includes charts, data and other materials prepared by Hoshino Resort Asset Management Co., Ltd. (the “Asset Management Company”) based on data, indices, etc. disclosed by third parties, in addition to statements related to Hoshino Resorts REIT, Inc. (“HRR”). Statements on analysis, judgments and other opinions of the Asset Management Company as of the date of the document are also included.

The contents of this document have not been audited and their accuracy and completeness are not guaranteed. Analysis, judgments and other opinions of the Asset Management Company that are not actual instance are only reflecting the views of the Asset Management Company as of the date of the document. Therefore, other views and opinions exist and the Asset Management Company may change its views in the future.

The figures under the same item of other disclosed materials may differ from figures presented in this document due to differentrounding of fractions and such.

While HRR has taken due care in the preparation of this document, the possibility of errors exists. Readers are also cautioned that the contents of this document are subject to correction or change without prior notice.

HRR or the Asset Management Company will not be responsible for any inaccuracy in data, indices and such disclosed by third parties.

Although this documents include statements regarding HRR’s future policies, etc., these statements do not guarantee such future policies, etc.

For the convenience of preparing graphs, the dates indicated may differ from actual business dates.

Registration as a Financial Instruments Business: Director of Kanto Local Finance Bureau (Kin-sho) No. 2405Member of the Investment Trusts Association, Japan

57

Documents

6th Fiscal Period - IR Webcasting · 6/17/2016 · 6th Fiscal Period (ended April 2016) Presentation Materials June 17, 2016. IV. Appendix Portfolio overview (assets under management)