Nippon Hotel & Residential Investment Corporation: Notice Regarding Revision of Operational Status and Distribution Forecasts for the Fiscal Periods Ending November 2026 and May 2027

Summary and Background

This IR discloses revisions to the operational status and distribution forecasts for the fiscal periods ending November 2026 and May 2027. The primary factors include increases in variable rent and the impact of domestic real estate disposition transactions; specifically, the incorporation and exclusion of acquired assets and assets scheduled for disposition have been reflected in the forecasts. For the period ending November 2026, operating revenue equivalent to sales is expected to rise, and distributions are assumed at 7 yen per unit (no excess profit distribution). For the period ending May 2027, a substantial revenue increase is anticipated, with distributions assumed at 3,000 yen per unit (no excess profit distribution). The plan also includes returning disposition gains of 491 million yen to distributions for the period ending May 2027.

Financial Impact and Outlook

The revisions are based on the attached assumptions, assuming operations continue with 31 acquired properties and a plan for dispositions and acquisitions of assets scheduled for disposition in the period ending May 2027. Forecasts are highly dependent on these assumptions and may diverge from initial forecasts due to changes in assumptions or market conditions. Proceeds including disposition gains from assets scheduled for disposition are planned to be allocated to future investor returns and funding for acquisition of assets.