Ichigo Preserves and Improves Real Estate[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

May 7, 2018
IssuerIchigo Office REIT Investment Corporation (“Ichigo Office,” 8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-office.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, President
Inquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4891

New Loan and Interest Rate Swap
Ichigo Office decided today to borrow funds via a new loan (“Term Loan XI”) and toenter into an interest rate swap to lock-in the interest rate on this new loan.
1. Reason for New Loan and Interest Rate Swap
Ichigo Office continues to execute on its strategy to grow long-term value for its
shareholders by focusing its portfolio on high-quality office assets.
Consistent with this strategy, Ichigo Office sold three non-office retail assets during theApril 2018 fiscal period and will acquire two Central Tokyo offices with strong tenant
demand and upside rent potential on May 9.1,2 The new loan will be used along withcash-on-hand to acquire the two offices, and will lengthen Ichigo Office’s overall loanmaturity. The interest rate swap will fix the interest rate to hedge against any future risein interest rates.
1For details of the sales, please refer to the March 16, 2018 release “Sale of Two RetailAssets (Ichigo Sapporo Minami 2 Nishi 3 Building, Ichigo Daimyo Balcony)” and theMarch 29, 2018 release “Sale of Retail Asset (Ichigo Burg Omori Building).”
2For details of the acquisitions, please refer to the April 25, 2018 releases “Acquisitionof Two Office Assets (Win Gotanda Building 2, MIF Building)” and “StrategicPortfolio Restructuring.”
2. Loan and Interest Rate Swap Details
Term Loan XI
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate

SMBC, Mizuho Bank, Shinsei Bank, MUFG Bank,
Bank of Fukuoka, Nishi-Nippon City Bank,Kagawa Bank
JPY 2 billion
Asset acquisition and related costs
May 9, 2018
April 30, 2024
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.60% (p.a.)1
1

Interest Payment Date

Collateralized

Final day of each month following the Loan Date(the first payment date will be May 31, 2018 and thelast payment date will be the same as the Principal
Repayment Date)
NoInterest Rate SwapCounterparty
Contract Date
Fixed Interest Rate
1

Mizuho Bank
May 7, 2018
0.795%As a result of the interest rate swap, the interest rate for Term Loan XI is fixed at
0.795%. However, the interest rate for the payment on the first payment date (fromMay 9, 2018 through May 31, 2018) will be 0.03249%. The notional value of the swap
will be equal to the loan amount.

Notes:The base rate for the loans will be JPY TIBOR as published by the Japanese Bankers
Association (JBA) two business days before each interest payment date. For current JPY
TIBOR rates, please visit the JBA’s website: www.jbatibor.or.jp/english/rate
In the event the interest payment date is not a business day, payment shall be made on theprevious business day.
3. Earnings Outlook
The impact of the new loan and the interest rate swap on Ichigo Office’s October 2018
and April 2019 fiscal period earnings has already been reflected in Ichigo Office’s April
25, 2018 release “Earnings Forecast Revision for the October 2018 Fiscal Period andEarnings Forecast for the April 2019 Fiscal Period.”
4. OtherRisks related to this loan have no material impact on the “Investment Risks” describedin the latest Financial Report submitted January 26, 2018.

2

Reference: Loan and Bond Composition after New Loan
Outstanding Loan and Bond Balance (as of May 9, 2018)
BeforeNew Loan(A)(JPY million)
AfterNew Loan(B)Change(B) - (A)Short-term bank loans–––

Long-term bank loans(due within one year)

11,575

11,575–Long-term bank loans

89,01291,012+2,000Total bank loans

100,587

102,587+2,000

2,200

2,200

–

102,787

104,787+2,000

Other interest-bearing liabilities–––

Total interest-bearing liabilities

102,787

104,787+2,000

Bonds
Total bank loans and bonds

3

Distribution of Loan and Bond Maturities (as of May 9, 2018)

Before New Loan
■ Bank Loans■ Bonds

9,574

10,2339,6399,629

9,633(JPY million)

9,623

8,814
6,867

7,263

4,600

4,549

3,954

3,400
2,380

Oct
2018

Apr2019

Oct2019

Apr2020

Oct2020

Apr2021

Oct2021

Apr2022

Oct2022

Apr2023

Oct2023

Apr2024

Oct2024

Apr2025

Oct2025

Apr2026

Oct2026

Apr
2027

1,200

1,000

Oct2027

Apr
2028

After New Loan
(JPY million)■ Bank Loans■ Bonds

9,574

10,233

9,639

9,629

9,633

9,623

8,814
6,867

7,263

4,600

4,549

3,954

3,400
2,380

2,000

Oct
2018

Apr2019

Oct2019

Apr2020

Oct2020

Apr2021

Oct
2021

Apr
2022

Oct
2022

Apr
2023

Oct
2023

4

Apr
2024

Oct
2024

Apr2025

Oct
2025

Apr
2026

Oct
2026

Apr
2027

1,200

1,000

Oct
2027

Apr2028