Completion of Comprehensive Refinancing (January 2013)
February 2013

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

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itt d management.
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Completion of Comprehensive Refinancing (January 2013)• Significantly reduced borrowing costs and strengthened the lender base
• Strong sponsor support【GE Japan Loan】【GE Japan Loan】 (2 year, 10 month maturity after term extension)

Loan Amount: 28,460 million yen
Interest Rate: 3 M JPY LIBOR +2.30% (p.a.)Collateralized : Yes

Loan Amount : 12,500 million yen
Interest Rate: 3 M JPY LIBOR+2.30% (p.a.)Collateralized : Yes【【Percentage of GE Japan against total loan 】
Before refinancing 49% → After refinancing 22%【SMBC Syndicate Loan (Term Loan 3)】 (2 year, 9 month)
Lenders: Sumitomo Mitsui Banking Corporation; Mizuho Bank, Ltd.; Mizuho
Trust & Banking Co., Ltd.; Resona Bank, Limited; Aozora Bank, Ltd.;The Tokyo Star Bank
Bank, Limited; ORIX Bank Corporation
Loan Amount: 7,000 million yen Interest Rate: 3 M JPY TIBOR+1.00% (p.a.)Collateralized : Yes【 SMBC Syndicate Loan (Term Loan 4)】 (4 year, 9 month)
Lenders: Sumitomo Mitsui Banking Corporation; Mizuho Trust & Banking Co.,
Ltd ; Resona Bank,Ltd.;Bank Limited; The Tokyo Star BankBank, Limited
Loan Amount: 7,000 million yen
Interest Rate: 1.64777% (fixed)
Collateralized : Yes【Shinsei Bank Syndicate Loan】 (4 year, 10 month)【Tokyo Star Bank Loan】
Loan Amount: 2,880 million yen
Interest Rate: 3 M JPY TIBOR +2.50% (p.a.) Collateralized : Yes【Mizuho Trust & Banking Co., Ltd. (Loan Backed by Trust Assets) Prudential LPS Loan】
Loan Amount: 2,898 million yen
Interest Rate: 2.81% (fixed) Collateralized : Yes

Lenders: Shinsei Bank, Limited; MetLife Alico, Prudential Mortgage Asset Holdings 1Japan LPS; Shinsei Trust & Banking Co., Ltd. (funded by Investment LPS
managed by AXA Real Estate Investment Managers Japan KK)
Loan Amount: 5,579 million yen Interest Rate: 1.74777% (fixed) Collateralized: Yes【Shinsei Trust Loan (funded by Ichigo Group) 】 (2 year, 10 month)
Lender: Shinsei Trust & Banking Co., Ltd. (funded by Ichigo Group)
L
LoanAAmount:t 1,100
1 100 million
illi yen InterestI tt Rate:
R t 2.85%
2 85% (fixed)(fi d) Collateralized:
C ll t li d NoN
The remainder was repaid using cash on hand

© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

5

Lowered Borrowing Costs
Reduced Borrowing Costs via Refinancing and Repayment- Significantly lowered interest rates via refinancing in January 2013
- Since the merger, reduced the average interest rate by 0.70%

At Merger

2.70%%

2 62%
2.62%

2.62%

2.60%

SMBC & Mizuho Trust Bank
Syndicate Loan (Term 1 &2)

Comprehensive Refinancing(January 2013)

2.50%

2.35%

2.40%%
2.30%2.26%

2.26%

0.7% reduction in borrowing cost

2.20%

2.24%

Aozora Bank
Syndicate Loan

2.10%%

Changes in Terms ofKagawa Bank Loan

2.00%
1.90%
1.80%
80%

1.88%
Nov 2011

Apr 2012

May 2012

Aug 2012

Oct 2012© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

Nov 2012

Jan 2013

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Enhanced Lender Base
• Further diversified the lender base through refinancing• New lenders enabled the extension of loan maturities■ Distribution of Lenders(At the time of the merger, November 1, 2011)■ Distribution of Lenders (January 31, 2013)
Shinsei Trust *22%
Shinsei Trust *12%

BNY Mellon Trust
Resona Bank 1%3%

KagawaBank2%
MetLife%Alico 4%

Mizuho Trust
Kagawa Bank
(Loan backed by2%
Trust Assets)Prudential LPS
Mizuho Trust
5%(Loan backed by

AIG Edison
Life Insurance(Gibraltar LifeInsurance) 6%

Prudential
LPS 4%

Trust Assets)
ORIX Bank
4%

Aozora Bank
7%

Tokyo Star Bank
21%

Mizuho Bank
2%

GE JapanCorporation
51%

ORIXBank2%

GE JapanCorporation22%

Tokyo Star Bank
5%

Gibraltar Life Insurance
7%

SMBC
15%

Mizuho Trust7%ShinseiBank8%

Resona Aozora Bank
10%Bank9%*1: Source of funds is Investment LPS managed by AXA Real Estate Investment Managers Japan KK*2: Ichigo Group Holdings as sponsor© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

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More Distributed Loan Maturities■ Fixed/Floating Interest Rate Ratio■ Distribution
Di t ib ti off L
Loan M
Maturities
t iti (Milli(Million YYen))

Before Refinancing (November 30, 2012)

Before Refinancing (November 30, 2012)
30,00028,460

FixedFloating35.9%

64.1%

After Refinancing (January 31, 2013)

20,000

Fixed

Floating

50.6%

49.4%

10,49810,000■ Outstanding Loan Balance, January 31, 2013 (Million Yen)
5,366
3,800

2,865

2,000

1,330

Lenders

2,732

0
Apr 2013 Oct 2013 Apr 2014 Oct 2014 Apr 2015 Oct 2015 Apr 2016 Oct 2016 Apr 2017 Oct 2017 Apr 2018

After Refinancing (January 31, 2013)
30,00020,00014,93010,49810,000
6,825
5,366
3,800

GE Japan Corporation

12,500Sumitomo Mitsui Banking Corporation

8 371
8,371

Aozora Bank, Ltd.

5,570

Resona Bank, Limited

4,951

Shinsei Bank, Limited

4,606Mizuho Trust & Banking Co., Ltd.

3,871

Gibraltar Life Insurance CoCo., LtdLtd.

3 800
3,800

The Tokyo Star Bank, Limited

3,000

Prudential Mortgage Asset Holdings 1 Japan LPS

2,000

MetLife Alico

2,000

The Kagaw a Bank, Ltd.

1,400

Shinsei Trust & Banking Co
Co., Ltd
Ltd. *1
11 379
1,379

Shinsei Trust & Banking Co., Ltd. *2

1,100

Mizuho Bank, Ltd.

1,000

ORIX Bank Corporation

6,685
5,104

Balance

Total

998
56,5492 000
2,000
0Apr 2013 Oct 2013 Apr 2014 Oct 2014 Apr 2015 Oct 2015 Apr 2016 Oct 2016 Apr 2017 Oct 2017 Apr 2018

*1: Source of funds is Investment LPS managed by AXA Real Estate
Investment Managers Japan KK*2: Ichigo Group Holdings as sponsor© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

8Raised April 2013 Dividend Forecast(Million yen)
Apr 2013
Forecast (Initial: A)

Apr 2013
Forecast (Revised: B)

Operating Revenue

4 118
4,118

4 124
4,124+6 Increase in Rental Income

Operating Income

1,955

1,983+28

Ordinary Income

1,069

432-637

Due to one-time amortization of up-front fees—interest
expense is reduced by comprehensive refinancing.

Net Income

1,069

432-637

Due to one-time amortization of up-front fees—interest
expense is reduced by comprehensive refinancing.

Category

Dividend per Unit

1,330,
yeny

1,420,
yeny(B)-(A)Changes

Revised upward reflecting an increase in ordinary income
g one-off costs of comprehensive
p+90 yyen and net income, excluding
refinancing.

© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

9Dividend Growth• One-off costs are offset by negative goodwill• Reduced interest expenses drive higher dividend

Significant GrowthApril 2012
ActualOctober 2011
ActualDividend per unit

954 yenDividend per unit

1,219
yen

October 2012
ActualApril 2013
RevisedForecast(January 2013)

April 2013
Initial Forecast

Dividend per unit

1,387
yen

Dividend per unit

2nd Period
Post Merger

3rd Period Post Merger(Initial Forecast)

1,330
yen

Dividend per unit

Comprehensive
Refinancing(January 2013)

1,420
1420
yen

（* ）

Pre-Merger(Estimate)

1st Period
Post Merger

3rd Period Post Merger(Revised)* Adjusted pre-merger dividend for the former FC Residential Investment Corporation and the former Ichigo Real Estate Investment Corporation.
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10

Disclaimer
These materials
Th
t i l are ffor iinformational
ftil purposes only,
l anddd
do nott constitutetit t or fform a partt of,f andd should
h ld nott b
be construed
t d 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 ofIchigo REIT with respect to financial condition and future results of operations
operations. These statements are based on certain
assumptions founded on currently available information. Accordingly, such statements are subjects 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 REIT and Ichigo Real Estate Investment Advisors CoCo., LtdLtd.
(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 the carbon emissions we create
create, such as via thispresentation material, by taking measures to create offsets to our carbon
emissions and working with organizations to invest in low-carbon technologies.
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