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.

April 25, 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, PresidentInquiries: 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 X”) 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
To repay an existing loan (JPY 4.958 billion). Ichigo is also entering into a swap
contract to fix the interest rate on the new loan and hedge against any future rise ininterest rates. For details of the loan to be repaid, please refer to “3. Existing Loan”
below.
2. Loan and Interest Rate Swap Details
Term Loan XLender
Loan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized

SMBC, Mizuho Trust & Banking, Aozora Bank,
Shinsei Bank, Resona Bank
JPY 3.954 billion
Repayment of existing loan
April 27, 2018
April 30, 2026
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.72% (p.a.)1
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)
NoSwap Details
Counterparty
Contract Date
Fixed Interest Rate

Mizuho Bank
April 25, 2018
0.99000%

1

1As a result of the interest rate swap, the interest rate for Term Loan X is fixed at
0.99000%. However, the interest rate for the payment on the first payment date (fromApril 27, 2018 through May 31, 2018) will be 0.77364%.

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. Existing Loan (to be repaid)
SMBC Syndicate Loan I (Term Loan 5)
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms

Partial Repayment Date
Interest Rate
Collateralized

SMBC, Mizuho Trust & Banking, Aozora Bank,
Shinsei Bank, Resona Bank
JPY 4.958 billion (original loan amount: JPY 4.985billion)
Repayment of existing loan
April 30, 2015
April 27, 2018
JPY 2,492,750 of the principal will be repaid on eachPartial Principal Repayment Date, with theremainder to be repaid in full on the Principal
Repayment Date
Final business day of January, April, July, andOctober following the Loan Date
1M JPY TIBOR + 0.75% (p.a.)No

4. 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
March 29, 2018 release “Earnings Forecast Revision for the April 2018 Fiscal Period”
and today’s release “Earnings Forecast Revision for the October 2018 Fiscal Period andEarnings Forecast for the April 2019 Fiscal Period.”2

Reference: Loan and Bond Composition after New Loan
Outstanding Loan and Bond Balance (as of April 27, 2018)
BeforeNew Loan(A)1(JPY million)

After
New Loan(B)2Change(B) - (A)Short-term bank loans–––

Long-term bank loans(due within one year)

13,539

11,575-1,964Long-term bank loans

88,34589,012+667

Total bank loans

101,885

100,587-1,2972,200

2,200–

104,085

102,787-1,297

Other interest-bearing liabilities–––

Total interest-bearing liabilities

104,085

102,787-1,297

Bonds
Total bank loans and bonds

1The amount includes JPY 1 billion of the Ichigo Office Second Unsecured Investment
Corporation Bonds that were announced in the April 20, 2018 release “Bond Issuance.”2
The amount includes the new loan (JPY 3.954 billion) and excludes the existing loan tobe repaid (JPY 4.958 billion), the early partial principal repayment of an existing loan(JPY 250 million) announced in today’s release “Loan Repayment,” and the partial
principal repayment (JPY 43 million) scheduled on April 27, 2018.

3

Distribution of Loan and Bond Maturities (as of April 27, 2018)
Before New Loan
■ Bank Loans■ Bonds
9,064
6,867
4,958

9,574

10,233(JPY million)
9,639

9,629

9,633

9,623

7,263

4,600

4,549

3,400
2,380

Apr
2018

Oct
2018

Apr2019

Oct2019

Apr2020

Oct
2020

Apr
2021

Oct
2021

Apr2022

Oct2022

Apr2023

Oct2023

Apr2024

Oct
2024

Apr2025

Oct2025

Apr2026

Oct2026

Apr
2027

1,200

1,000

Oct
2027

Apr2028

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

Apr
2018

Oct
2018

Apr
2019

Oct
2019

Apr
2020

Oct
2020

Apr
2021

Oct
2021

Apr
2022

Oct
2022

Apr
2023

4Oct
2023

Apr2024

Oct
2024

Apr2025

Oct
2025

Apr
2026

Oct
2026

Apr
2027

1,200

1,000

Oct
2027

Apr2028