Hoshino Resorts REIT will close a leasehold chapel at Grand Prince Hotel Osaka Bay and book a ¥612mn special loss in the six months to October 2026. It still forecasts a two-period payout of ¥13,552 per unit, ¥2 above its June forecast.
One operator from December
The Hoshino Resorts group will stop running its 48-room operation inside the 480-room hotel on 23 November 2026. Seibu Prince Hotels Worldwide is due to run every room from about 1 December, a date the REIT says could shift. The tenant and lease are unchanged, and rent stays at 95% of the hotel's EBITDA. The REIT ties the change to the Osaka integrated resort planned for autumn 2030, a timetable taken from the operator's published plan that it says may change. Its forecasts assume the operator change does not affect variable rent in either period.
What the ¥612mn covers
The loss comes from removing the chapel building on land leased from Osaka city, not from the operator change. It combines ¥110mn of building book value, ¥301mn of leasehold and ¥200mn of demolition cost. The lease expires on 31 March 2027 and the chapel stops operating on 31 October 2026. The REIT says the figures are estimates that could change after talks with its auditor.
Why the payout holds
Of the loss, ¥501mn is deductible for tax only in the six months to April 2027. To avoid a corporate tax bill, the REIT plans an excess-of-profit distribution of ¥856 per unit for October, to be reversed in April. It will also release its full ¥361mn compressed reserve.
The forecast payout rises to ¥7,197 per unit for October, up ¥497, and falls to ¥6,355 for April, down ¥495. October net income is forecast at ¥3.353bn, from ¥3.921bn previously.
The REIT also expects a ¥260mn consent fee from its tenant for ending the 48-room operation early, to be booked in the six months to April 2027 as operating revenue. The REIT puts the net two-period burden of the removal at ¥251mn. Its ¥7,000 payout target for the period to October 2028 is unchanged.
The REIT says that from the six months to October 2027 it will save ¥24mn a year in ground rent and about ¥3mn in property tax. Its forecasts are not guarantees of payouts.