Financial Presentation Materials for the 26th Term (Fiscal Year Ending December 2025)

Summary of Performance

Operating revenue for the fiscal year ending December 2025 increased 36.1% year-over-year to 45,564 million yen, and net income attributable to owners of parent rose 48.6% to 27,145 million yen. These significant increases were driven by contributions from acquired properties and internal growth of existing assets. Total dividends increased 28.5% year-over-year to 25,795 million yen, with dividends per unit of 5,061 yen, also up 28.5%. For the full fiscal year ending December 2026, the dividend per unit is forecasted at 5,177 yen, factoring in internal growth and the impact of newly acquired properties.

External Growth and Internal Growth Strategies

In March 2026, Hyatt Regency Tokyo was acquired for 126 billion yen, increasing the portfolio's ratio of Tokyo-area assets and full-service hotels. Plans are underway to enhance profitability through additional renovations. Internal growth of existing hotels is reflected by a 14.3% year-over-year increase in RevPAR for 2025, with a 5.4% increase forecasted for 2026; food and beverage segments continue steady performance. Strategic capital expenditures include major renovations at Hilton Tokyo Odaiba, scheduled at 10.8 billion yen, among multiple properties. Rent revisions and rebranding initiatives are also being implemented to strengthen revenue-generating power.

Financial Status and Capital Policy

As of the fiscal year-end December 2025, total interest-bearing debt was 269.3 billion yen, with a market value LTV of 35.3%. As of March 13, 2026, interest-bearing debt increased to 334.3 billion yen, with market value LTV at 36.3%. Approximately 75% of borrowings are fixed-rate, maintaining a stable financial structure. Funds were raised through public offerings to finance the acquisition of Hyatt Regency Tokyo. The financial policy continues to cap market value LTV at 40%, while extending borrowing periods and reducing borrowing costs.

ESG and Market Environment

This investment corporation has obtained the 'Green Star' green building certification for eight consecutive years and earned a '3-star' rating in the GRESB assessment. It aims to reduce GHG emissions per floor area by 30% by 2050. Domestic lodging demand remains strong, with inbound tourism reaching a record high in 2025. Notably, arrivals from Europe, America, and Oceania have increased, with a trend toward longer stays. New hotel supply in Tokyo is limited, supporting a favorable revenue environment driven by robust demand.