We would like to express our sincere gratitude to our unitholders for their continued support of Nippon Hotel & Residential Investment Corporation.

Nippon Hotel & Residential Investment Corporation is a listed real estate investment corporation, or J-REIT, sponsored by APA Group, which operates a hotel network of more than 1,000 hotels in Japan and North America. The Investment Corporation primarily invests in hotels, including business hotels and city hotels, as well as rental residences, including rental apartments.

The Investment Corporation conducts asset management with the aim of diversifying portfolio risk, securing stable earnings and achieving earnings growth by combining hotels located mainly in areas widely recognized as major tourist destinations and business districts throughout Japan with rental residences located in the three major metropolitan areas of Tokyo, Kansai and Chukyo, as well as government-designated cities and other areas.

Going forward, the Investment Corporation will continue to make maximum use of its sponsor pipeline, through which it receives preferential access to property information from APA Group, as well as the network of its asset manager. By doing so, the Investment Corporation will seek to expand its asset size toward its medium-term target of 200 billion yen and further diversify its portfolio.

In addition, the Investment Corporation will endeavor to enhance the profitability of its existing properties through internal growth measures and will continue to conduct steady asset management with the aim of maximizing unitholder value over the medium to long term.

The Investment Corporation also regards ESG (Environment, Social and Governance) initiatives as one of its important management priorities and will strive to contribute to the realization of a sustainable society.

We sincerely appreciate the continued support of our unitholders.

Even so, we will continue to seek unconventional, flexible management going forward to achieve a recovery in earnings, thereby living up to the expectations of unitholders. We ask for your continuing support and encouragement in the years to come.