Asset Acquisitions and Sale Presentation
April 9, 2015

Ichigo Real Estate Investment Corporation
Ichigo Real Estate Investment Advisors Co., Ltd.

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

www.ichigo-reit.co.jp/english

This document is a summary of “Issuance of New Shares and Secondary Share
Offering,” “Asset Acquisitions and Sale,” and “Earnings and Dividend Forecast Revisions
foro thee April
p 20150 5aandd OcOctoberobe 2015
0 5 Fiscal
sca Periods”
e ods releases
e eases aannouncedou ced oon Aprilp 9, 2015.
0 5
The forecasts presented in this document are based on certain preconditions. The actual
pg revenue, operating
pg income, recurring
gp
profit, net income, and dividend p
per share
operating
may vary due to changes in circumstances. These forecasts should not be construed asa guarantee of such performance or results. For details of the preconditions andcalculations, please refer to the releases.
The forecast dividend per share is an assumption based on current earnings and theactual value may vary due to changes in circumstances and audit by the accounting firm.
The forecast should not be construed as a guarantee of such performance.

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

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Ichigo REIT Growth Strategy
Stage IV

Stage I/II/III

2011/102013/10

2014/10

2015/47th period post merger

Stage V
2015/10

8th period post merger

Goal

Increase Size & Scale
Obtain Credit Rating

PllanEnhan
nce Profittability

Accretivve Growth Cycle

Foundaation for GrowthG■ Financing Strategy
・Obtain credit rating
・Strengthen financial base via PO
Increase potential for new・Increaseborrowing(collateral consolidation and noncollateralized borrowing)■ Internal Growth Strategyplease terms of assets
・Improvewith growth potential
・Promote Ichigo brand■ External Growth Strategy
・Acquire assets via new borrowing
portfolio
・Build a mid-size office p
with both stability and upside
potential
・Make full use of Ichigo Group’s
warehousing capability

2016/49th period post merger

2016/1010th period post merger

Further Increase Dividendy Market Positionand Solidify■ Financing Strategy
・Seek bond issuance and diversify
borrowing・Improve credit rating■ Internal Growth Strategy
・Drive higher profitability via
economies of scale as portfolio
size increases
Strengthen Ichigo brand・Strengthen■ External Growth Strategy
・Acquire assets via additionalborrowing
・Build a mid-size office portfoliowith both stability and upside
potential

Drive Further Growth

Note 1: “Mid-size office” as defined by Ichigo REIT is an office with leasable space of 1,000 m2 to 10,000 m2.
Note 2: Growth outcomes may differ from this plan and are not guaranteed.
© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

3

Acquisitions and Sale© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

4

Acquisitions and Sale Objectives

1

Build a mid-size office
portfolio which offers bothp
stability and growthpotential■ Build a diversified portfolio that focuses on mid-size officeassets with upside potential via value
value-add
add to support earnings
growth2

Drive earnings via Ichigo’s
accumulated investmentexperience andcapabilities in mid-size
office■ Maintain high-occupancy while seeking further earnings
upside by effectively deploying accumulated management
know-how■ Improve competitiveness and profitability of assets byleveraging Ichigo Group’s differentiated leasing andvalue-add capabilities

3

Strengthen financial
position■ Strengthen lender base, obtain credit rating, and seek
uncollateralized borrowing© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

5

Asset Acquisitions Overview
12 Offices (11 in Central Tokyo, 94.7% occupancy) Total acquisition price: JPY 44 billion
 11 assets acquired via sponsor support of Ichigo Group
Asset
Ichigo Jingumae Building(O-59)
Ichigo Shibuya Dogenzaka
Building (O-60)
Ichigo Hiroo Building(O-61)
Ichigo Sasazuka Building(O-62)
I hi NihIchigo
Nihonbashi
b hi E
Eastt
Building (O-63)
Shuwa Dai 2 Sakurabashi
Building (O-64)
Ichigo Shinkawa Building(O-65)(O65)
Ichigo Kudan Building(O-66)
Ichigo Higashi Gotanda
Building (O-67)
gAxior Mita Building(O-68)
Ichigo Higashi Ikebukuro
Building (O-69)
Koriyama Big-i Building(Office Section) (O-70)

AssetType

Location

Accuisition
Price(million yen)Appraisal Value*(million yen)

NOI Yield

Occupancy

OfficeShibuya-ku, Tokyo

7,200

7,220

4.2%

100%

OfficeShibuya ku Tokyo
Shibuya-ku,

3 650
3,650

3 720
3,720

4 3%
4.3%

100%

OfficeShibuya-ku, Tokyo

3,960

4,010

4.7%

100%

OfficeShibuya-ku, Tokyo

4,780

4,840

5.3%

94.4%

OfficeChuo-ku, Tokyo

4,700

4,850

4.7%

84.7%

OfficeChuo-ku, Tokyo

2,500

2,600

5.0%

100%OfficeChuo-ku, Tokyo

2,360

2,480

5.0%

84.4%

OfficeChiyoda-ku, Tokyo

3,190

3,200

4.9%

100%

OfficeShinagawa-ku, Tokyo

3,660

3,680

5.0%

98.2%

OfficeMinato ku Tokyo
Minato-ku,

1 800
1,800

1 840
1,840

4 6%
4.6%

80 0%
80.0%

OfficeToshima-ku, Tokyo

4,570

4,710

5.0%

92.5%

OfficeKoriyama City, Fukush

1,660

1,710

6.6%

96.4%

44,03044,860

Average 4.8%

Average 94.7%

Total* Appraisal Value is as of March 1, 2015

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

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Asset Sale Overview
Hotel (Osaka, 87.3% occupancy)
 Sale price: JPY 2.8 billion
 Buyer: Ichigo Group Reason for disposition: Vacancies across several floors, earnings in decline, withsubstantial capital expenditure needed to restore its earnings potential
Asset
Type
Other(Retail)

Asset
Falcon Shinsaibashi （Z-01）

Location

Sale Price(million yen)Appraisal Value*(million yen)

2,810

2,810

2 810
2,810

2 810
2,810

Osaka City, Osaka

Tota l*Appraisal Value is as of March 1, 2015

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

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Asset Acquisitions in Central Tokyo© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

8

Today’s Acquisitions and Sale Portfolio Outcome
Significant Growth in Central Tokyo Office Portfolio-JPY3B (1 hotel)+JPY44B(12 office)Portfolio Size
JPY 123B((65 assets))

March 31, 2015

Central Tokyo Assets+ JPY 42.4B

Portfolio Size
JPY164B(76 assets)+JPY41B((26% of Post-Transaction Portfolio))

May 7, 2015

May 8, 2015

Post-Transaction© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

9Continuing Dividend Growth1,547 yen

October 2014
ActualTotal Dividend

Total Dividend

1,812 million yen

2,369 million yen

1,600 yen

April 2015
New Forecast

1 670 yen
1,670

October 2015
Forecast* Expected number of shares outstanding in the April 2015 forecast is 1,130,323.
** Expected number of shares outstanding in the October 2015 forecast is 1,416,323. It is the sum of 1,130,323 shares issued and outstanding as ofApril 9, 2015 plus 271,700 shares to be issued from a public offering and a maximum of 14,300 shares to be issued from a third-party allotment(should the over-allotment option be exercised).
© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

10Acquisition: Ichigo Jingumae (O-59) / Ichigo Shibuya Dogenzaka (O-60)
Ichigo Jingumae Building (O-59)
Acquisition Price

7,200

Appraisal Value

7,220

NOI Yield

4 2%
4.2%

Asset TypeOffice

Address

Jingumae, Shibuya-ku, Tokyo

Leasable Area

4,418.17m2

StructureRC B1F/6F

Construction Date

Nov 1984

Occupancy

100%

Acquisition Price

3,650

Appraisal Value

3,720

NOI Yield

4.3%

Asset TypeOffice

Address

Maruyamacho, Shibuya-ku, Tokyo

Leasable Area

2,789.86m2

Structure

SRC B2F/9F

Construction Date

Sep 1994

Occupancy

100%

Ichigo Shibuya Dogenzaka Building (O-60)© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

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Acquisition: Ichigo Hiroo (O-61) / Ichigo Nihonbashi East (O-62)
Ichigo Hiroo Building (O-61)
Acquisition Price

3,960

Appraisal Value

4,010

NOI Yield

4 7%
4.7%

Asset TypeOffice

Address

Hiroo, Shibuya-ku, Tokyo

Leasable Area

3,510.44m2

Structure

SRC/RC B1F/10F

Construction Date

Jul 1990

Occupancy

100%

Acquisition Price

4,700

Appraisal Value

4,850

NOI Yield

4.7%

Asset Type

OfficeAddress

Nihonbashi Bakurocho,Chuo-ku, Tokyo

Leasable Area

4,216.97m
4216 97m2

Structure

S/RC B1F/7F

Construction Date

Jan 2010

Occupancy

84.7%

Ichigo Nihonbashi East Building (O-63)© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

12Acquisition: Ichigo Kudan (O-66) / Ichigo Higashi Ikebukuro (O-69)
I hi KIchigo
Kudand B
Buildingildi (O(O-66)
66)
Acquisition Price

3,190

Appraisal Value

3,200

NOI Yield

4.9%

Asset Type

OfficeAddress

Kanda Jimbocho, Chiyoda-ku, Tokyo

Leasable Area

3,090.65m2

Structure

S/SRC B2F/8F

Construction Date

May 1989 (Extended in Aug 1990)

Occupancy

100%

Acquisition Price

4,570

Appraisal Value

4,710

NOI Yield

5.0%

Asset TypeOffice

Address

Higashi Ikebukuro, Toshima-ku, TokyoL
Leasable
bl AArea

4,553.90m4553 90 2

Structure

SRC B1F/9F

Construction Date

Oct 1980

Occupancy

92.5%

Ichigo Higashi Ikebukuro Building (O-69)© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

13

Acquisition: Ichigo Shinkawa (O-65) / Ichigo Higashi Gotanda (O-67)
Ichigo Shinkawa Building (O-65)
Acquisition Price

2,360

Appraisal Value

2,480

NOI Yield

5.0%

Asset TypeOffice

Address

Shinkawa, Chuo-ku, Tokyo

Leasable Area

2,312.03m2

SStructure

S C B1F/7F
SRC/Construction Date

Sep 1990

Occupancy84.4%

Acquisition Price

3,660

Appraisal Value

3,680

NOI Yield

5.0%

Asset TypeOffice

Address

Higashi Gotanda, Shinagawa-ku, Tokyo

Leasable Area

4,548.10m2

Structure

SRC/RC B2F/9F

Construction DateFeb 1990

Occupancy

98.2%

Ichigo Higashi Gotanda Building (O-67)© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

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Acquisition: Ichigo Sasazuka (O-62) / Ichigo Sakurabashi (O-64)
I hi SIchigo
Sasazukak B
Buildingildi (O(O-62)
62)
Acquisition Price

4,780Appraisal Value

4,840

NOI Yield

5.3%

Asset TypeOffice

Address

Sasazuka, Shibuya-ku, Tokyo

Leasable Area

6,425.29m2

Structure

S/SRC B1F/13F

Construction Date

Mar 1995

Occupancy

94.4%

Acquisition Price

2,500

A
Appraisal
i lVValuel

2 600
2,600

NOI Yield

5.0%

Asset TypeOffice

Address

Hatchobori, Chuo-ku, Tokyo

Leasable Area

2,971.22m2

Structure

SRC 9F

Construction Date

Aug 1989

Occupancy
py100%

Shuwa Dai 2 Sakurabashi Building (O-64)© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

15Acquisition: Axior Mita (O-68) / Koriyama Big-i (O-68)
A i Mit
Axior
Mita B
Buildingildi (O(O-68)
68)
Acquisition Price

1,800

Appraisal Value

1,840

NOI Yield

4.6%

Asset TypeOffice

Address

Mita, Minato-ku, Tokyo

Leasable Area

2,369.82m2

Structure

RC 14F

Construction Date

Oct 2011

Occupancy

80.0%

Koriyama Big-i Building (Office Section) (O-70)
Acquisition Price

1,660

Appraisal Val
Valuee

1 710
1,710

NOI Yield

6.6%

Asset TypeOffice

Address

Ekimae, Koriyama City, Fukushima

Leasable Area

3,433.05m2

StructureS B1F/27FConstruction DateMar 2001

Occupancy

96.4%© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

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MEMO

© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

17

Disclaimer
These materials are for informational purposes only, and do not constitute or form a part of, and should not be construed as, anoffer to sell or a solicitation of an offer to buy any securities of Ichigo Real Estate Investment Corporation (Ichigo REIT). Youshould consult with a representative of a securities firm if you intend to invest in any securities of Ichigo REIT.
These materials may contain forward-looking statements regarding the intent, belief or current expectations of management ofI hi REIT withIchigo
ith respectt tot financial
fi
i l condition
diti andd ffuturetresults
lt off operations.
ti
TheseThstatementst tt are basedbd on certaint iassumptions founded on currently available information. Such statements are subject to risks, uncertainties and assumptions,and there is no assurance as to actual financial conditions or results of operations. Actual results may vary from those indicatedin the forward-looking statements. Accordingly, please refrain from solely relying on these statements.
y the management
gof Ichigo
g REIT and Ichigo
g Real Estate Investment Advisors Co.,, Ltd.
These materials have been created by(IRE) with the belief that the information contained is accurate. However, there is no assurance given as to the accuracy,
certainty, validity or fairness of any such information.
Please note that the content of these materials is subject to revision or retraction without prior notice.
No copying or reproduction of these materials or part of these materials is allowed without obtaining prior consent from Ichigo
REIT and IRE.

Contact:

Ichigo REIT IR Desk
TEL：03-3502-4891
FAX：03-3502-4894
IR REIT@ichigo-holdings
IR_REIT@ichigo
holdings.co.jp
co jp
www.ichigo-reit.co.jp/english
Ichigo Group is Japan’s first zero-carbon listed real estate company. We aretaking responsibility for our environmental footprint by offsetting our carbon
emissions as well as working with organizations to invest in low-carbon
technologies.
© 2015 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

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