December 14, 2011

FINANCIAL REPORTFOR THETWELFTH FISCAL PERIOD(May 1, 2011 – October 31, 2011)
Ichigo Real Estate Investment Corporation (“Ichigo REIT,” Representative: Yoshihiro Takatsuka, Executive
Director, URL: www.ichigo-reit.co.jp/eng) is listed on the Tokyo Stock Exchange with the securities code 8975.
Asset Management Company: Ichigo REIT Management Co., Ltd.
Representative:
Wataru Orii, President & Representative Director
Contact:
Masanori Kubota, Director (Finance)
Tel. +81-3-3502-4891
Submission date for Securities Report (scheduled):
Start Date for Dividend Payments (scheduled):

January 27, 2012
January 23, 2012

1. FINANCIAL RESULTS FOR THE TWELFTH FISCAL PERIOD(Monetary amounts are rounded down to the nearest million yen)

(1) Earnings(million yen; period-on-period change)

TwelfthFiscal Period
Eleventh
Fiscal Period

Operating
Revenue

ChangeOperating
IncomeChangeOrdinary
IncomeChangeNet
IncomeChange

787

3.4%

402

3.3%

240

4.8%

236

5.3%

762

(0.8%)

389(1.0%)

229

0.1%

224

8.9%

Net Income per Unit
(yen)

Ratio of Net Income
to Equity

Ratio of Ordinary Income
to Total Assets

Ratio of Ordinary Income
to Operating Revenue

7,219

1.6%

1.0%

30.6%

6,856

1.5%

0.9%

30.2%

TwelfthFiscal Period
Eleventh
Fiscal Period(2) Dividends
Total Dividends in
Excess of Earnings

PayoutRatio(million yen)(%)

Ratio of
Dividends to
Net Assets
(%)

0

0

100.0

1.6

0

0

99.9

1.5

(not including dividends
in excess of earnings)

Total Dividends(yen)(million yen)

Dividend per Unit
in Excess of
Earnings
(yen)

7,220

236

6,856

224

Dividend per Unit

TwelfthFiscal Period
Eleventh
Fiscal Period(3) Assets and Equity

TwelfthFiscal Period
Eleventh
Fiscal Period

Total Assets(million yen)

Net Assets(million yen)

Equity Ratio(%)

Net Assets per Unit(yen)

24,99915,16460.7

463,758

25,07615,153

60.4

463,3941

(4) Cash Flow
Cash Flow fromOperating Activities(million yen)
TwelfthFiscal Period
Eleventh
Fiscal Period

Cash Flow from
Investment Activities(million yen)

Cash Flow from
Financing Activities(million yen)

Cash and Cash Equivalents
at End of the Period(million yen)

311

3

(273)

1,901

324

(7)

(254)

1,858

2. EARNINGS FORECASTS FOR THE THIRTEENTH AND FOURTEENTH FISCALPERIODS(million yen; period-on-period change)

Thirteenth
Fiscal Period
Fourteenth
Fiscal Period

Operating
Revenue

ChangeOperating
Income4,371

455.4%

4,457

2.0%

ChangeOrdinary
IncomeChangeNet
IncomeChange1,926

379.1%

942

292.5%

17,508

7,318.6%

2,030

5.4%

1,048

11.3%

1,047

(94.0%)(yen)

Dividend per Unit
(not including dividends in excess of earnings)

Thirteenth
Fiscal Period
Fourteenth
Fiscal Period

Dividend per Unit in Excess of Earnings

1,100

0

1,200

0

Reference: The forecast net income per unit is 20,733 yen for the Thirteenth Fiscal Period and 1,242 yen for
the Fourteenth Fiscal Period. The net income per unit for the Thirteenth Fiscal Period reflects thenegative goodwill created from the merger and thus differs from distributable income for dividends.
Note: The Eleventh Fiscal Period is the period from November 1, 2010 to April 30, 2011.
The Twelfth Fiscal Period is the period from May 1, 2011 to October 31, 2011.
The Thirteenth Fiscal Period is the period from November 1, 2011 to April 30, 2012.
The Fourteenth Fiscal Period is the period from May 1, 2012 to October 31, 2012.

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3. OTHER(1) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement(i) Changes accompanying Amendments to Accounting Standards:
No(ii) Changes other than (i):No
(iii) Changes in Accounting EstimatesNo(iv) Retrospective Restatement
No(2) Number of Investment Units Issued and Outstanding(i) The number of investment units issued and outstanding (including treasury investment units) was
32,700 units at the end of the Twelfth Fiscal Period and 32,700 units at the end of the Eleventh Fiscal
Period.
(ii) The number of treasury investment units was 0 units at the end of the Twelfth Fiscal Period and 0 units at
the end of the Eleventh Fiscal Period.

Appropriate Use of Performance Forecasts and Other Matters of Special Note
The forecasts presented above are current figures based on certain preconditions. Accordingly, the actual
operating revenue, operating income, ordinary income, net income, dividend per unit and dividend per unit inexcess of earnings may vary due to changes in circumstances. Moreover, these forecasts should not be
construed as a guarantee of such performance or results.
For details on the preconditions, please refer to the “Preconditions for Earnings Forecasts of the Thirteenth andFourteenth Fiscal Periods” on pages 4-5.
The IchigoREIT implemented a 7 for 1 unit split with the record date of October 31, 2011 and the effective dateof November 1, 2011. The performance forecast for the thirteenth and fourteenth fiscal periods is calculated
based on the post-split investment units issued and outstanding.
This English notice is a translation of the original Japanese notice and is provided solely for informational
purposes. Should there be any discrepancies between this translation and the Japanese original, the latter shallprevail.

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Preconditions for Earnings Forecasts of the Thirteenth and Fourteenth Fiscal Periods
Item

Preconditions

Dates

Thirteenth Fiscal Period: November 1, 2011 – April 30, 2012
Fourteenth Fiscal Period: May 1, 2012 – October 31, 2012

Portfolio Assets• 71 properties owned as of October 31, 2011, composed of 19 properties originally owned by Ichigo
REIT and 52 properties acquired via the merger with the former Ichigo REIT.

Number ofInvestment Units• 842,823 units, the current issued amountOperating Revenue• Rent revenue is calculated conservatively based on lease contracts that are in effect as of October 31,
2011, while taking into consideration such factors as historical rents, the competitiveness of theproperties, and market conditions.

Operating Expenses• Among expenses related to rental activity, which are Ichigo REIT’s principal operating expenses, thoseother than depreciation are calculated based on historical data, while taking into consideration variable
expenses.
• The anticipated amount of property tax and city planning tax is 367 million yen for the Thirteenth
Fiscal Period and 367 million yen for the Fourteenth Fiscal Period.
• The amount for building maintenance and repair expenses is estimated to be 204 million yen for theThirteenth Fiscal Period and 167 million yen for the Fourteenth Fiscal Period. However, expenses foreach period could differ significantly from these estimated amounts for various reasons due to theirregularity of maintenance and repair expenses, costs due to unexpected building damage, etc., andyear-to-year changes in costs.
• Service provider expenses including property management fees, etc. are estimated to be 430 million
yen for the Thirteenth Fiscal Period and 426 million yen for the Fourteenth Fiscal Period.
• Depreciation has been calculated using the straight line method. For the existing 71 properties,
depreciation is calculated by including the depreciation for future additional capital expenditures in theamortization amount. Depreciation of 523 million yen has been anticipated for the Thirteenth Fiscal
Period and 537 million yen for the Fourteenth Fiscal Period.

Non-operating
Expenses• Interest expenses of 767 million yen are anticipated for the Thirteenth Fiscal Period and 768 million
yen for the Fourteenth Fiscal Period.
• Borrowing-related expenses of 219 million yen are anticipated for the Thirteenth Fiscal Period and 216
million yen for the Fourteenth Fiscal Period.

Extraordinary Gain

• A 16,567 million yen gain is expected from the negative goodwill from the November 1, 2011 merger
with the former Ichigo REIT.

Borrowings• Ichigo REIT’s balance of loans payable stands at 58,682 million yen as of November 1, 2011.
• 300 million yen in a loan payable to The Bank of New York Mellon Trust (Japan), Ltd. which becamedue on November 29, 2011 has been repaid with cash reserves. 3,890 million yen in a loan payable to
Aozora Bank (as of October 31, 2011) will become due during the Fourteenth Fiscal Period. Ichigo
REIT assumes refinancing of this loan at the same amount.

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Dividend per Unit

• Dividends (dividend per unit) are based on the assumption that distribution will comply with thedividend distribution policy stipulated in Ichigo REIT’s Articles of Incorporation.
• Dividend for the thirteenth fiscal period is assumed to be paid from the retained earnings for the period
excluding the negative goodwill extraordinary gain. Specifically, the dividend is assumed to be 941
million yen in total which is the forecast net income of 17, 508 million yen minus the negative
goodwill extraordinary gain forecast of 16,567 million yen.
• For the Fourteenth Fiscal Period, the dividend is not assumed to include the negative goodwill gain
generated in the Thirteenth Fiscal Period.
• The amount of the dividend per unit is subject to change due to factors such as changes in rent revenue
associated with changes in tenants, other changes in properties, the occurrence of unexpectedmaintenance and repair costs and other expenses, fluctuations in interest rates, and the issuance ofadditional investment units.

Dividend in Excess of
Earnings per Unit

• Ichigo REIT does not plan on making any dividend distribution exceeding retained earnings (dividendin excess of earnings per unit).

Other• The performance forecasts are based on the assumption that revisions impacting the forecast figures
above will not be made to laws and ordinances, the tax system, accounting standards, listing rules,
rules of the Investment Trusts Association, Japan, etc.
• The performance forecasts are also based on the assumption that there will be no unexpected materialchange in general economic trends, real estate market conditions, etc.

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1. Financial Statements(1) Balance Sheets(Thousand yen)
Eleventh Fiscal Period(as of April 30, 2011)

Twelfth Fiscal Period(as of October 31, 2011)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust

699,282

690,249

1,159,478

1,213,052

Operating accounts receivable

7,029

6,857

Prepaid expenses

42,281

33,849Deferred tax assets

19

350

2,288

9,756

1,910,380

1,954,115

127,405

127,405

Accumulated depreciation(13,866)(15,358)

Buildings, net

113,538

112,046

2,842

2,842

OthersTotal current assets
Noncurrent assets
Property, plant and equipment
Buildings

Structures
Accumulated depreciation

(405)

(449)

Structures, net

2,437

2,393

Tools, furniture and fixtures

4,827

4,827

Accumulated depreciation(1,018)(1,127)

Tools, furniture and fixtures, net

3,808

3,699

Land
Buildings in trust

329,736

329,736

7,148,268

7,148,668

Accumulated depreciation(813,842)(905,484)

Buildings in trust, net

6,334,426

6,243,183

Structures in trust

42,20742,207

Accumulated depreciation(6,161)(6,903)Structures in trust, net

36,04635,304

Machinery and equipment in trust

62,97762,977

Accumulated depreciation(10,796)(11,975)

Machinery and equipment in trust, net

52,18151,002Tools, furniture and fixtures in trust

575,487

575,487

Accumulated depreciation(104,489)(114,614)

Tools, furniture and fixtures in trust, net

470,997

460,872

Land in trust

15,787,122

15,787,122

Total property, plant and equipment

23,130,295

23,025,362

Others48

48

Total intangible assets

48

48

Intangible assets

Investments and other assets
Tenant leasehold and security deposits

10,00010,000Long-term prepaid expenses

25,833

10,032

Total investments and other assets
Total noncurrent assets
Total assets

6

35,833

20,032

23,166,176

23,045,442

25,076,556

24,999,557

(Thousand yen)
Eleventh Fiscal Period(as of April 30, 2011)
Liabilities
Current liabilities
Current portion of long-term loans payable
Accounts payable – others
Accrued expenses
Income taxes payable, etc.
Advances received
Provision for disaster-related loss
OthersTotal current liabilities
Noncurrent liabilities
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Total noncurrent liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

7

Twelfth Fiscal Period(as of October 31, 2011)

98,0008,415
119,167974
72,586
4,644
4,059
307,849

98,00016,609123,098
5,201
66,976980
11,645322,5119,194,000
2,164
419,526
9,615,691
9,923,541

9,145,000
2,164
364,971
9,512,136
9,834,647

14,928,800

14,928,800

224,215
224,215
15,153,015
15,153,015
25,076,556

236,110
236,110
15,164,910
15,164,910
24,999,557

(2) Statements of Income(Thousand yen)
Eleventh Fiscal Period(From November 1, 2010
to April 30, 2011)

Twelfth Fiscal Period(From May 1, 2011
to October 31, 2011)

Operating revenue
Rent revenue – real estate

756,548

750,735

Other lease business revenue

5,630

37,147762,178

787,882

Total operating revenue
Operating expenses
Expenses related to rent business

248,233

262,899

Asset management fee

56,67557,711

Asset custody fee

2,482

2,519

Administrative service fees

9,368

9,877

Audit fee

7,000

7,000

Directors’ compensations

10,80010,800

Directors' retirement benefits
Other operating expenses
Total operating expenses
Operating income

―

5,475

38,24929,567

372,808

385,850

389,370402,032

Non-operating income
Interest income

198

182

Reversal of distribution payable

249

531

Total non-operating income

447

713

Interest expenses

144,156

145,774

Borrowing related expenses

15,80115,801Non-operating expenses

Others―183

159,957

161,759

229,859

240,987

Disaster-related loss

4,644

―

Total extraordinary loss

4,644

―

225,215

240,987

1,008

5,232

Total non-operating expenses
Ordinary income
Extraordinary loss

Income before income taxes
Income taxes – current
Income taxes – deferred
Total Income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

8

(1)

(330)

1,007

4,901

224,207

236,0867

24

224,215

236,110

(3) Statements of Unitholders’ Equity(Thousand yen)
Twelfth Fiscal Period(From May 1, 2011
to October 31, 2011)

Eleventh Fiscal Period(From November 1, 2010
to April 30, 2011)
Unitholders’ equity
Unitholders’ capital
Balance as restated

14,928,800

14,928,800――

14,928,800

14,928,800

205,821

224,215

Dividends from surplus(205,813)(224,191)

Net income

224,207

236,086

Total changes of items during the period

18,393

11,894

224,215

236,110

15,134,621

15,153,015

Changes of items during the period
Total changes of items during the period
Balance at end of the period
Surplus
Unappropriated retained earnings (undisposed loss)
Balance as restated
Changes of items during the period

Balance at end of the period
Total unitholders’ equity
Balance as restated
Changes of items during the period
Dividends from surplus(205,813)(224,191)

Net income

224,207

236,086

Total changes of items during the period

18,393

11,89415,153,015

15,164,910

15,134,621

15,153,015

Dividends from surplus(205,813)(224,191)

Net income

224,207

236,086

Balance at end of the period
Total net assets
Balance as restated
Changes of items during the period

Total changes of items during the period
Balance at end of the period

918,393

11,89415,153,015

15,164,910

(4) Statements of Cash Flows(Thousand yen)
Twelfth Fiscal Period(From May 1, 2011
to October 31, 2011)

Eleventh Fiscal Period(From November 1, 2010
to April 30, 2011)
Cash flows from operating activities
Income before income taxes

225,215

240,987

Depreciation and amortization

105,295

105,332

Amortization of long-term advance charges

15,80115,801

Interest income

(198)

(182)

Interest expenses

144,156

145,774

Provision for disaster-related loss
Reversal of provision for disaster-related loss

4,644

―

―

△3,664

Decrease (increase) in prepaid expenses(4,950)8,431

Increase (decrease) in accounts payable – others(10,370)

4,128

494

(5,610)

Increase (decrease) in advances received
Increase (decrease) in accrued consumption taxes
Amortization of security deposit(2,043)

1,489―(50,309)

Others, net(2,211)(3,501)

Subtotal

475,833

458,676

Interest income received
Interest expenses paid
Expenses related to cancelled capital increase
Income taxes paid
Net cash provided by (used in) operating activities

198

182

(144,354)(145,972)(5,763)―(960)(1,005)324,954311,881(2,643)(399)

10,416

12,749(15,172)(8,439)(7,399)3,910

Cash flows from investment activities
Purchase of property, plant and equipment in trust
Proceeds from tenant leasehold and security deposits intrust
Repayments of tenant leasehold and security deposits intrust
Net cash provided by (used in) investment activities
Cash flows from financing activities
Decrease in long-term loans payable(49,000)(49,000)

Dividends paid

(205,514)(224,021)(273,021)

Net cash provided by (used in) financing activities(254,514)

Net increase (decrease) in cash and cash equivalents

63,04042,770Cash and cash equivalents at beginning of the period

1,795,720

1,858,760

Cash and cash equivalents at end of the period

1,858,760

1,901,531

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