Interim Financial Results for the Fiscal Year Ending December 2026 (REIT)

Performance overview

For the interim period, the operating results were: operating revenue 22,568 million yen, operating income 14,687 million yen, ordinary income 11,789 million yen, interim net income 11,789 million yen. For the full-year outlook, net sales 75,124 million yen, operating income 58,372 million yen, ordinary income 52,100 million yen, net income attributable to owners of the parent 52,099 million yen. A distribution per unit of 5,811 yen is assumed, and the distribution policy continues to reflect the impact of negative goodwill amortization. The financial strategy uses long-term borrowings with an objective to maintain a target LTTV of up to 40%. The Beach Tower Okinawa divestiture and Kandou Hotels Osaka Namba acquisition were executed to enhance portfolio quality and asset scale.

Outlook and financial strategy

Mid-term policy aims to maintain stability with fixed rents while pursuing upside through variable rents and outsourced operations. External growth will continue through acquisitions of hotel assets domestically and internationally. Green finance will be leveraged, with financial management limited to a 40% market value LTV. In capital policy, assets will be replaced to enhance portfolio quality and secure future profitability and growth. ESG certification acquisition and expansion aim to maximize investor value.