Notice of Termination of Hotel Opening Agreement and Recording of Special Profit

Overview of Termination

Today, the Board resolved the termination of the hotel opening agreement dated September 4, 2024. The counterparty is Tokyu Land Corporation. Although discussions were underway toward signing a lease, due to condition mismatches the termination was requested and the agreement was terminated. As termination compensation, 400 million yen will be received, and the deposit of 10 million yen will be refunded. The company will continue to promote urban apartment hotel development and regional hotel investment to expand operating profits.

Impact on Performance and Outlook

Recognition of special profit is scheduled for the second quarter of the consolidated accounting period ending March 2027 (July 1, 2026 to September 30, 2026). The termination fee is not yet reflected in the consolidated earnings forecast for the fiscal year ending March 2027, and since the future impact on earnings is not yet determined, there has been no change to the earnings forecast. We will continue to monitor new projects and disclose any revisions to future earnings outlook as appropriate.