Ichigo Office(8975)

Strategic Portfolio Restructuring
October 13, 2023

Ichigo Office REIT Investment Corporation (8975)
Ichigo Investment Advisors Co., Ltd.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

www.ichigo-office.co.jp/en

This material provides supplementary explanatory information withrespect to Ichigo Office’s asset acquisition and sale during the October
2023 fiscal period, as detailed in the below releases:“Sale of Retail Asset (Twicere Yokohama Isogo),” September 22, 2023
“Acquisition of Ichigo Kinshicho South Building,” October 13, 2023(Today)
The sale of Twicere Yokohama Isogo (Retail Section) and theacquisition of the Ichigo Kinshicho South Building are collectively
referred to as the “Asset Acquisition and Sale” in this presentation© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

2

Make The World
More Sustainable© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Asset Acquisition & Sale via Ichigo Office’s Sourcing Network
Asset Sale: Sold Retail Asset Located in Yokohama to Third-Party Buyer
 Sale Price: +6.0% vs. Appraisal Value, +12.8% vs. Book Value, Gains onSale to be Distributed as Dividends— As a Result of Leasing Activities Focused on Earnings Recovery, Ichigo OfficeSuccessfully Leased up Half of Vacant Space to a Notable Retail Tenant— Gains on Sale of JPY 112M to be Distributed as October 2023 Dividend
October 2023 Dividend Forecast (Announced Sep 22, 2023): JPY 2,116(+5.0% vs. Previous Forecast)

Asset Acquisition: Acquiring Mid-Size Office Located in Kinshicho From
Third-Party Seller
 Upside Earnings Potential to Contribute Towards a Diversified Portfolio
With High Earnings Stability
 Convenient Access via Train to Main Office Areas in Central Tokyo:
8 Minutes to Tokyo Station, 12 Minutes to Otemachi Station
 Upward Rent Renewals for Majority of Building’s Tenants are Expected to
Drive Future NOI Growth— Drive Further Earnings Growth via Value-Add, Including Common Area andRestroom Renovations© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

4

Overview of Asset Acquisition & Sale
BeforeAcquisition &Sale

Asset Sale

Asset Acquisition

AfterAcquisition &Sale

Asset Size

88 assets/
JPY 212.2B

1 asset/JPY 1.6B

1 asset/JPY 1.9B

88 assets/
JPY 212.4B

Appraisal Value

JPY 255.3B

JPY 1.5B

JPY 2.1B

JPY 255.9B

Office %

96.9%

––

97.6%

Other %

3.1%

––

2.4%

Tokyo Metropolitan
Area %

21.8%

––

21.9%

Occupancy

96.6%(as of Sep 30, 2023)

89.7%

100%

96.7%

Number of Tenants

1,011(as of Sep 30, 2023)

871,010Annual NOI

JPY 11.7B

JPY 61M

JPY 77M

JPY 11.7B

Twicere Yokohama Isogo(Retail Section)
Sale Date:
October 30, 2023 (expected)

Ichigo Kinshicho SouthBuilding
Acquisition Date:
October 31, 2023 (expected)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

5

Drive Shareholder Value via Strategic Portfolio Restructuring
Optimize Portfolio & Drive Growth in Asset & Shareholder Value
Acquisitions & Sales After 2017 (After Public Offering in May 2016)
Asset Sales

Asset Acquisitions

14 Assets
Total Sales Price
JPY 33.2B(Gains on Sales
JPY 8.5B)

16 Assets
Total Acquisition Price
JPY 41.8BImpact
JPY 648M p.a.
NOI Increase*

212.4

Asset to be Acquired:
Ichigo Kinshicho South Building
Mid-size office located in Kinshicho area offering convenient
access to main office areas in central Tokyo* NOI Increase = Forecast NOI of acquired
assets calculated by IIA minus actual NOI ofsold assets

Portfolio Size
(JPY B)

194.5

+17.9
(+9.2%)

Pre-Portfolio
Post-Portfolio
Restructuring
Restructuring(December 31, 2016) (October 31, 2023)

97.6%

Office %

88.1%

+9.5%

Pre-Portfolio
Post-Portfolio
Restructuring
Restructuring(December 31, 2016) (October 31, 2023)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

6

Robust Sourcing to Support Acquisition-Driven GrowthAcquisitions & Sales Leverage Both Sponsor Support & Ichigo Office’s
Cumulative
Sourcing NetworkAcquisitions
JPY 164B

Acquisitions and Sales Since Transition to Specialized Office REIT in Oct 2015 (Cumulative, JPY B)■ Acquisition From Sponsor ■ Acquisition From Third Party■ Sale to Sponsor■ Sale to Third Party

54.4

56.3

62.4

63.9

67.7

71.6

Acquisition
From ThirdParty
75.2(45.9%)

50.9

50.9

67.6
Cumulative
Acquisitions
Cumulative
Sales74.7

80.2

82.5

82.5

82.5

82.5Acquisition
FromSponsor
88.7(54.1%)

23.8

23.8

26.2

26.2

26.2

26.2

26.2

12.3

18.3

21.9

24.7

24.7

26.4

38.4

19.3

19.3

7.9

12.3

~ Oct 2015

~ Oct 2016

~ Oct 2017~ Oct 2018

~ Oct 2019

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

~ Oct 2020

~ Oct 2021

~ Oct 2022

38.6
CumulativeSales
JPY 64.8B~ Oct 2023
(Expected)
7

Ichigo Kinshicho South Building (O-101)

Ichigo Office’sSourcing Network

Mid-Size Office Offering Convenient Access to Tokyo’s Main Office Areas
Asset DetailsBuilding Exterior, Entrance Hall, & Location

Acquisition Price

JPY 1,875M

Appraisal Value

JPY 2,060M

Expected NOI Yield

4.5%

Asset TypeOfficeLocation

2-2-3 Kotobashi, Sumida-ku, Tokyo

Leasable Area

2,054.47m2

Structure

SRC, B1F/8F

Date Built

January 1993

Occupancy

100% (as of September 30, 2023)

Location/Building Features• Mid-size office building located within a 6-minute walk from Kinshicho
Station on the JR Sobu Line, JR Sobu Rapid Line, and Tokyo Metro
Hanzomon Line• Located in a central area in Tokyo’s Joto district offering convenient
access to main office areas in central Tokyo: 8 minutes to TokyoStation, 12 minutes to Otemachi Station• Standard floor plate of 93 tsubo (307m2), with individual air
conditioning units and security systems, catering to the needs of manyclients.
• Current tenants include an IT company, import-export agent, nursing
care company, and interior construction company© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

8Notes
Preconditions for the Overview of Asset Acquisition & Sale (p.5)• Asset Size, Appraisal Value: Data as of April 30, 2023
• Occupancy, Number of Tenants
Before Acquisition & Sale: Data as of September 30, 2023
Asset Sale: Data as of September 22, 2023 (Resolution Date)
Asset Acquisition: Data as of September 30, 2023
After Acquisition & Sale: Data as of September 30, 2023, including Twicere Yokohama Isogo (Retail Section), minus
data for Twicere Yokohama Isogo (Retail Section) plus data for the Ichigo Kinshicho South Building• Annual NOI
Before Acquisition & Sale: Annualized NOI for the April 2023 fiscal period Excludes NOI of asset sold during the April 2023 fiscal period, and for assets acquired during the April 2023 fiscalperiod, NOI is calculated using the direct capitalization method based on appraisal value at acquisition
Asset Sale: Annualized NOI for the April 2023 fiscal period
Asset Acquisition: NOI is calculated using the direct capitalization method based on appraisal value at acquisition
After Acquisition & Sale: NOI before acquisition & sale minus NOI of asset sold plus NOI of asset to be acquired© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

9Disclaimer
These materials are for informational purposes only, and do not constitute or form a part of, and should not be construed as,
an offer to sell or a solicitation of an offer to buy any securities of Ichigo Office REIT Investment Corporation (“Ichigo Office”).
These materials may contain forward-looking statements regarding the intent, belief or current expectations of management ofIchigo Office with respect to financial condition and future results of operations. These statements are based on certain
assumptions founded on currently available information. Accordingly, such statements are subject to risks, uncertainties andassumptions and there is no assurance as to actual financial conditions or results of operations. Actual results may vary fromthose indicated in the forward-looking statements. Accordingly, please refrain from solely relying on these statements.
These materials have been created by the management of Ichigo Office and Ichigo Investment Advisors Co., Ltd. (“IIA”) withthe belief that the information contained is accurate. However, there is no assurance given as to the accuracy, certainty, validityor fairness of any such information. Please note that the content of these materials is subject to revision or retraction without
prior notice.
This document is a translation. If there is any discrepancy between the Japanese version and the English translation, theJapanese version shall prevail. No copying or reproduction of these materials or part of these materials is allowed withoutobtaining prior consent from Ichigo Office and IIA.

Make The World
More Sustainable

Ichigo Office IR Desk (8975)
TEL：+81-3-3502-4891
E-mail: IR_Office@ichigo.gr.jp
www.ichigo-office.co.jp/en
Ichigo is Japan’s first zero-carbon listed real estate company.
We are taking responsibility for our environmental footprint by offsetting ourcarbon emissions and investing in low-carbon technologies such as solar energy.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

10