Make The World
More Sustainable[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.

September 26, 2019
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: Hiroshi Iwai, 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 and enter into an interestrate swap to lock in the interest rate on the loan.
1. New Loan and Interest Rate Swap Rationale
The new loan will be used to repay part of an existing loan of JPY 692.8 million.
Details of the loan to be repaid are in Section 4 below.
The term of the new loan is 6.5 years, longer than the loan being repaid, further
strengthening Ichigo Office’s financial position. Ichigo Office is fixing the interest rateon the loan via a swap in order to hedge against any future rise in interest rates.
2. Loan Details
No.

Loan Date

Lender1

Sep 30, 2019

SMBC

1

LoanAmountInterest Rate
(JPY million)
692

Repayment
Date

3M JPY TIBOR Mar 25, 2026
(6.5 years)+0.59% (p.a.)1

Repayment
CollateralizedTerms
Lump-sum
repayment

The swap will fix the interest rate for the loan at 0.726%. However, the interest rate forthe payment on the first payment date (from September 30, 2019 to October 25, 2019)will be 0.64773%.

Notes:The interest payment date is the 25th of every third month following the loan date. (Thefirst payment date will be October 25, 2019 and the last payment date will be the sameas the principal repayment date.) In the event the interest payment date is not a businessday, payment shall be made on the following business day. If the following business
day falls into the following month, payment shall be made on the previous business day.
The base rate for the loan 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
1No3. Swap Details
No.

Counterparty

Notional(JPY million)

Contract Date

Termination
Date

Fixed
Interest Rate(Pay)

Floating
Interest Rate(Receive)

1

SMBC

692

Sep 30, 2019

Mar 25, 2026
(6.5 years)

0.726%

3M JPY TIBOR+0.59% (p.a.)

4. Existing Loan Being Repaid
No.

Loan Date

Lender1

Sep 30, 2015

SMBC

1LoanAmountInterest Rate
(JPY million)
692.8

Repayment
Date

Repayment
CollateralizedTerms

1M JPY TIBOR Sep 30, 2019+0.55% (p.a.)(4.0 years)

Footnote 1

No

JPY 450,000 of the principal repaid on each partial principal repayment date, and theremainder to be repaid in full on the principal repayment date.

5. Earnings Outlook
The impact of the new loan and interest rate swap on Ichigo Office’s October 2019 andApril 2020 fiscal period earnings has already been reflected in the forecasts presented inIchigo Office’s June 14, 2019 release “April 2019 Fiscal Period Earnings.”
6. OtherRisks related to the loan have no material impact on the “Investment Risks” described in
the latest Financial Report submitted on July 29, 2019.

Loan and Bond Composition after New Loan
Outstanding Loan and Bond Balance(JPY million)
BeforeNew Loan(A)After
New Loan(B)1

Change(B) - (A)

Short-term bank loans–––

Long-term bank loans(due within one year)

19,19318,501-692

Long-term bank loans

84,89585,587+692

Total bank loans

104,089

104,088

–

4,400

4,400

–

108,489

108,488–

Bonds
Total bank loans and bonds
1The amount reflects a JPY 0.8 million principal repayment using cash-on-hand.

2Distribution of Loan and Bond Maturities
Before New Loan
■ Bank Loans (floating rate)
9,574

10,233■ Bank Loans (fixed rate)

9,639

9,629

9,633

■ Bonds(JPY million)

9,623

8,814
8,154
1,000

7,266

6,346
4,955

4,600

7,859

6,554
2,900

2,793

2,000
692
955

Oct
2019

900

Apr
2020

Oct
2020

Apr2021

Oct
2021

Apr
2022

Oct
2022

Apr2023

Oct
2023

Apr
2024

1,200

1,000

Oct
2027

Apr
2028

1,200600

Oct
2024

Apr2025

Oct2025

Apr2026

Oct2026

Apr2027

Oct2028Apr2029

Oct2029

After New Loan
■ Bank Loans (floating rate)
10,233
9,574

9,639

■ Bank Loans (fixed rate)■ Bonds(JPY million)■ New Loan

9,629 9,633 9,623
8,846
692
1,000 7,266

8,814

6,346
4,955

4,600

7,859

6,554

2,900

2,793

2,000955

Oct
2019

Apr
2020

1,200 1,000

900

Oct
2020

Apr2021

Oct2021

Apr2022

Oct2022

Apr2023

Oct
2023

Apr
2024

1,200600

Oct
2024

3

Apr
2025

Oct
2025

Apr
2026

Oct2026

Apr2027

Oct2027

Apr2028

Oct2028

Apr2029

Oct2029