March 29, 2024
To All Concerned Parties
Real Estate Investment Trust Securities Issuer
1-1-21 Toranomon, Minato-ku, Tokyo
marimo Regional Revitalization REIT, Inc.
Representative: Takashi Kitagata, Executive Director(Securities Code: 3470)
Asset Manager
Marimo Asset Management Co., Ltd.
Representative: Takashi Kitagata, CEOContact:
Katsuhiro Shimada, Financial Management Officer
TEL: +81-3-6205-4755
Notice Concerning Disposition of Domestic Real Estate Trust Beneficiary Rightmarimo Regional Revitalization REIT, Inc. (“marimo REIT”) hereby announces that Marimo Asset Management Co., Ltd.,
to which marimo REIT entrusts management of its assets (the “Asset Manager”), decided today on the disposition (the“Disposition”) of a domestic real estate trust beneficiary right (the “Beneficiary Right”) as described below.
1. Overview of the Disposition
Name of asset to be disposed
Planned disposition price (Note 2)

ArtizA Chiyoda
First disposition (40% quasi co-ownership interest): 480 million yen
Second disposition (60% quasi co-ownership interest): 720 million yen
Total: 1,200 million yen (Each disposition is planned to be made in the form ofquasi co-ownership interest (40% and 60% quasi co-ownership interests) on two
separate dates (the “Disposition in Parts”), and the planned disposition price foreach planned disposition date is as stated above.)Book value (Note 3)
908 million yen
Gain from sale (estimate) (NoteFirst disposition (40% quasi co-ownership interest): 117 million yen
4)Second disposition (60% quasi co-ownership interest): 175 million yen
Buyer
Please refer to “4. Overview of Buyer” later in this document.
Intermediation
None
Disposition decision date
March 29, 2024
Sales contract conclusion date
March 29, 2024
Planned disposition date
First disposition (40% quasi co-ownership interest): June 28, 2024 (delivery andsettlement date)
Second disposition (60% quasi co-ownership interest): August 30, 2024 (deliveryand settlement date)Settlement method
Payment for the portion in accordance with the quasi co-ownership interest to
be disposed and delivery of such will be made on each planned dispositiondate.
(Note 1) Amounts are rounded down to the nearest million yen.
(Note 2) “Planned disposition price” does not include the reimbursed amount equivalent to fixed asset tax and city
planning tax as well as consumption tax, etc.
(Note 3) “Book value” indicates the amount as of the end of the fiscal period ended December 2023 (15th fiscal period).
(Note 4) “Gain from sale (estimate)” is the amount calculated by deducting the book value from the planned disposition
price. The actual gain/loss from sale may differ from the gain from sale (estimate) stated above.

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(Note 5) The purchase and sale agreement for the Disposition (the “Purchase and Sale Agreement”) falls within forward
commitments, etc. by marimo REIT as stipulated in the Comprehensive Guidelines for Supervision of Financial
Instruments Business Operators, etc. established by the Financial Services Agency. Under the Purchase andSale Agreement, when it turns out that either marimo REIT or the buyer does not intentionally or negligently
fulfill obligations stated in the Purchase and Sale Agreement, or materially violates the representations andwarranties matters of marimo REIT or representations and warranties matters of the buyer stipulated in thePurchase and Sale Agreement and the purpose of the Purchase and Sale Agreement becomes unachievable,
the agreement may be cancelled after making such demand. When such a cancellation is made, the cancelled
party shall immediately pay an amount equivalent to 20% of the planned disposition price (excluding amountequivalent to consumption tax and local consumption tax) to the counterparty as cancellation penalty.
However, since marimo REIT is the seller under the Purchase and Sale Agreement and there are no concerns
over being unable to procure funds for execution of the Purchase and Sale Agreement, etc., marimo REIT
believes that it is unlikely for marimo REIT to incur the aforementioned penalty and that the transaction isunlikely to materially impact the financial standing of marimo REIT.
2.

Reason for the Disposition
In constructing its portfolio, marimo REIT considers disposition or replacement of properties when such is judged
to be appropriate over the medium to long term by taking into account market conditions. As for the asset to bereplaced, marimo REIT considers disposition for properties of which profitability, etc. assumed at the time ofacquisition cannot be expected as well as for properties facing concerns over future competitiveness due to changein the supply-demand balance and competitive environment of the area. Upon comprehensively judging the effects
of replacement over the medium to long term, marimo REIT decides on the replacement of the asset.
ArtizA Chiyoda (the “Property), which is the asset to be disposed, has competitiveness appropriate for a residence
located in Nagoya City, Aichi Prefecture, in terms of tenant leasing and transit convenience. On the other hand,competition in the surrounding area is increasing. Based on this, marimo REIT has decided on the disposition to thebuyer this time around because it was judged that disposition at a price surpassing the book value and the mostrecent real estate appraisal value and returning gain from sale to unitholders will contribute to the maximization of
benefits of unitholders.
While marimo REIT will make efforts to acquire assets using the proceeds from the disposition of the Property,
it has decided to dispose the Property on two separate dates, each in the form of quasi co-ownership interest of
the Beneficiary Right, by comprehensively taking into account factors such as the impact of the decrease inoperating revenue from leasing due to the disposition of the Property on the operating results of marimo REIT, inlight of possible acquisition of assets for replacement or assumed schedule of such acquisition.

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3. Details of the Asset to be Disposed
Name of asset to be disposed
ArtizA Chiyoda
Type of specified asset
Real estate trust beneficiary right
Trustee
Mitsubishi UFJ Trust and Banking Corporation
Contract period
From January 23, 2018, to January 31, 2028
Location
Lot number
4-424-2 Chiyoda, Naka Ward, Nagoya City, Aichi, etc.
(Note 1)
Indication of4-4-22 Chiyoda, Naka Ward, Nagoya City, Aichi
residential address
Land
Form of ownership
Proprietorship
Use
Commercial district
Site area (Note 1)
420.08 m2
Building coverage ratio 80%
Floor-area ratio
500%
Building
Form of ownership
Proprietorship
Main use
Residence
Completion date
September 12, 2017
Gross floor area (Note2,176.78 m21)
Structure
Reinforced concrete structure, flat roof, 14 floors
Acquisition price
980 million yen
Planned disposition price1,200 million yen
Book value (Note 2)
908 million yen
Difference between planned
292 million yendisposition price and book value
Appraisal Appraisal method
Appraisal by Tanizawa Sogo Appraisal Co., Ltd.
value
Appraisal value
1,200 million yen
Date of value
December 31, 2023
Details of lease (Note 3)
Master lease company
Marimo Co., Ltd.
Total number of tenants
78
Total lease revenue (annual)
65 million yen
Security deposit and3 million yen
guarantee money
Total leased area
1,981.80 m2
Total leasable area
2,062.06 m2
Change in occupancy rate
De. 31, 2021
Jun. 30, 2022 Dec. 31, 2022 Jun. 30, 2023
Dec. 31, 2023
97.4%
100.0%
88.5%
97.5%
94.8%
Other special notes
A parking lot is leased outside the site to satisfy the obligation to provide aparking lot as stipulated in the Nagoya City Ordinance on Conflict Prevention,Coordination, etc. in Relation to the Construction of Mid- and High-Rise
Buildings.
(Note 1) “Location (lot number)”, “Site area” and “Gross floor area” are based on the description in the real estateregistry.
(Note 2) “Book value” indicates the amount as of the end of the fiscal period ended December 2023 (15th fiscal period).
(Note 3) “Total number of tenants” indicates the number of end tenants for the Property as of today.
“Total lease revenue” indicates an amount obtained by multiplying the total monthly rent (sum of rent andcommon area fee. However, when the amount equivalent to the parking fee is included in the rent in the leaseagreements, such amount will be included) in the currently effective lease agreements concluded with end
tenants for the Property by 12 (rounded down to the nearest million yen).
“Security deposit and guarantee money” indicates the total amount of security deposit and guarantee money34.

(rounded down to the nearest million yen) in the above lease agreements.
“Total leased area” indicates the area leased to end tenants.
“Total leasable area” indicates the total area that can be leased.
Overview of Buyer
The buyer is a business company in Japan. However, details are not disclosed as consent on disclosure has not beenobtained from the buyer. As of today, the buyer does not fall under the category of interested persons, etc. definedin the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951, as amended) nor of interested
persons defined in the rules on transactions with interested persons set by the Asset Manager. Furthermore, there
are no capital, personnel, or business ties to note between the buyer and marimo REIT or the Asset Manager, andthe buyer does not fall under the category of related parties of marimo REIT.

5.

Outline of Intermediation
None

6.

Settlement Method, Etc.
Settlement will be made through payment for the portion in accordance with the quasi co-ownership interest to bedisposed and delivery of such on each planned disposition date.
The gain from the Disposition will be returned to unitholders as distribution, and any remaining amount will be
used for portfolio operation including future property replacements, etc.

7.

Future Outlook
For the outlook of the management status for the fiscal period ending June 2024 (from January 1, 2024, to June 30,2024) and the fiscal period ending December 2024 (from July 1, 2024, to December 31, 2024) after the dispositionof the asset to be disposed, please refer to “Notice Concerning Revision of Operating and Dividend Forecasts for
the Fiscal Period Ending June 2024 and the Fiscal Period Ending December 2024” dated today.

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Summary of Appraisal Statements

Property name

ArtizA Chiyoda

Appraisal value
Name of appraisal agency
Date of value

1,200 million yen
Tanizawa Sogo Appraisal Co., Ltd.
December 31, 2023

Items
Value based on income approach

Details
1,200,000,000

Value based on direct capitalization
method1,230,000,000

Operating Revenue
Potential gross income

66,378,000
69,882,000

Vacancy loss, etc.

3,504,000

Operating Expenses
Maintenance andmanagement expenses

16,567,000
1,732,000

Utility costs

371,000

Repair costs

589,000

Costs to restore exclusively
owned section

1,559,000

Property management fee

1,945,000

Tenant solicitation
expenses

1,248,000

5Summary, etc.
Deeming that value based on income approach
which accurately replicates the pricedetermination process from earnings aspects
better matches the market, assessed byadopting value based on income approach
while using cost method value only forreference.
Assessed net income that is stable over themedium to long term, discounted by thecapitalization rate.
Assessed taking into account the subject real
property’s medium- to long-termcompetitiveness based on the rent level of thecurrent contract, the new rent levels of similar
real property within the same supply-demandzone and the trend.
Assessed taking into account the subject real
property’s competitiveness based on its
vacancy rate record and the standard vacancy
rates of similar real property.
Assessed by judging that the building
management services are generally standard
and based on contract amounts verified by thelevel of maintenance costs at similar real
property.
Assessed based on past actual results and by
verifying the level of utility costs at similar realproperty.
Assessed by judging that the annual average
repair costs stated in the ER are appropriate
based on verifying the level of repair costs ofsimilar real property.
Assessed by assessing tenant replacement
costs, considering the replacement rate andvacancy rate.
Assessed by judging that the property
management contract is generally standard,
and based on said contract, verifying the levelof PM fees at similar real property.
Assessed based on the level of similar realproperty, referring to past actual results for theTaxes and other publiccharges
Non-life insurance
premiums

4,818,000

Other expense

3,916,000

386,000

Net Operating Income (NOI)
Revenue from investmentof lump sum payments

49,811,000
48,000Capital expenditures

1,767,000

Net Income (NCF)
Capitalization rate

Value based on DCF method
Discount rate

48,093,000
3.9%

1,190,000,000
4.0%

Terminal capitalization rate

Cost method value
Land ratio
Building ratio
Other matters taken into consideration by
the appraisal agency when performing theappraisal

4.1%

replacement portion when the assumed
replacement rate is applied to the rental spaceand parking lot.
Assessed based on materials related to taxes
and other public charges.
Assessed by judging the contract amount to beappropriate and verifying the level of non-life
insurance premiums for similar real property.
Assessed other property operating expenses,
such as supplies and reserves, referring to theactual amount obtained from the client.
Assessed the investment yield bycomprehensively taking into account the actual
investment status of lump sum payments fromboth investment and financing perspectives.
Assessed by judging the annual averagerenovation costs stated in the ER to beappropriate, based on verifying the level ofrenovation costs at similar real property.
Assessed comprehensively taking into accountthe competitiveness of the subject real
property, etc.
Assessed by combining the method ofobtaining the value through comparison withsimilar real property appraisals and the methodof obtaining the value by adding the individual
characteristics of the property to the yields offinancial assets.
Assessed by comprehensively taking into
account future trends in investment yields,
general forecasts of future economic growthrates of the subject real property as aninvestment target, real estate price trends, etc.,
referring to the appraised yields on similar
appraisal cases.

997,000,000
44.3%
55.7%
Although the cost method value was higher compared with the value
based on income approach, adopted the value based on income
approach as the appraisal value, judging it to be more persuasive
after comprehensive examination.

*Website of marimo REIT: https://www.marimo-reit.co.jp/en/

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