Asset Acquisitions and Sales Presentation
November 14, 2014

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

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

www.ichigo-reit.co.jp/english

This document is a summary of “Issuance of New Shares and Secondary Share
Offering,“ “Asset Acquisitions and Sales,” and “Earnings and Dividend Forecast Revisions
for the October 2014 and April 2015 Fiscal Periods” releases from November 14, 2014.
The forecasts presented in this document are based on certain preconditions. The actual
operating revenue, operating income, recurring profit, net income, and dividend per share
may vary due to changes in circumstances.
circumstances These forecasts should not be construed asa guarantee of such performance or results. For details of the preconditions andcalculations, please refer to the releases.
The forecast dividend per share is an assumption based on current earnings and theactual value may vary due to changes in circumstances and audit by the accounting firm.
The forecast should not be construed as a guarantee of such performance.

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

2

Ichigo REIT Updated Growth Strategy
Stage I/II
2011/10

Stage III2013/10

Stage IV

2014/45th period post merger

2014/10

6th period post merger

2015/47th period post merger

Goall

Enhance Profitability

Stage V
2015/10

8th period post merger

Increase Size & Scale■ Financing Strategy
・Strengthen financial base via POglender base・Strengthen
・Obtain credit rating

PllanAccretivve Growwth CycleeFoundaation for Growth

Obtain Credit Rating■ Internal Growth Strategy
・Strategic leasing of individualproperties
・Asset value enhancements
・Promote Ichigo brand■ External Growth Strategy
・Continuously acquire assets
through PO・Improve portfolio with asset sales
・Deploy Sponsor’s warehousing
capability■ Financing Strategy
・Obtain credit ratinggfinancial base via PO・Strengthen
・Increase potential for new borrowing(collateral consolidation and noncollateralized borrowing)■ Internal Growth Strategyplease conditions for assets
・Improvewith growth potential
・Promote Ichigo brand■ External Growth Strategy
・Acquire assets via new borrowing
・ Build a mid-sized asset portfolio
centered around offices with highpotential to contribute to bothearnings growth and stability
・Make full use of Ichigo Group’sacquisition and bridge fundcapability

2016/49th period post merger

2016/1010th period post merger

Further Increase Dividend
and Solidify Market Position■ Financing Strategy
・Consider bond issuancepcredit ratingg・Improve■ Internal Growth Strategy
・Improve profit structure as portfolio
size increases
・Strengthen Ichigo brand awareness■ External Growth Strategy
・Acquire assets via new borrowing
・ Build a mid-sized asset portfolio
centered on offices with highpotential to contribute to bothearnings growth and stability

Drive Further GrowthNote: Growth outcomes may differ from this plan and are not guaranteed.
© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

3

Acquisitions and Sales© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

4

Acquisitions and Sales Objectives

1

Build a mid-size asset*
portfolio centered on offices
with a balance of stability
and growth potential

2

Acquire quality assets andincrease returns throughstrong sponsorship andcapabilities of Ichigo Group

3

Drive earnings by leveraging
Ichigo’s accumulated
investment experience andcapabilities in mid
mid-size
size office4

Strengthen financial position■ Focus on office assets with ability to add value to support earningsgrowth■ Make full use of Ichigo Group capabilities to maximize acquisition
opportunities and flexibly acquire high-quality
high quality assets■ Work closely with Ichigo Group Holding’s Real Estate ServicesDivision, which provides customer service support, and strengthen
Ichigo REIT environmental, architectural, and leasing operations■ Acquire high-occupancy, high-NOI assets and keep them that way
by effectively deploying accumulated management know-how■ Enhance profitability by leveraging Ichigo’s differentiated leasing
capabilities such as Ichigo layout office, track record of value-add
renovation, and Ichigo and building-specific branding■Strengthen lender base and aim for uncollateralized borrowing* “Mid-size assets” are as defined by Ichigo REIT assets of leasable space of 1,000 ㎡ to 10,000㎡, including offices.

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

5

Asset Acquisitions Overview
8 Office, 3 Retail• Total acquisition price: JPY 26.7 billion• 7 assets acquired
qvia sponsor
pppipeline
pof Ichigog Groupp• Average occupancy: 99.0% (as of September 30, 2014)
Acquisition
Price(million yen)Appraisal Value*(million yen)

NOI YieldOccupancy

Shibuya-ku, Tokyo

5,900

5,940

4.2%

90.6%Office

Shinagawa-ku, Tokyo

3,850

3,920

5.1%

100.0%

Ichigo Takadanobaba
B ildi (OBuilding(O-53)
53)

OfficeShinjuku-ku,j, Tokyoy

1,580,1,630,5.3%

100.0%

Ichigo Omiya Building(O-54)

OfficeSaitama City, Saitama

3,430

3,520

6.6%

99.2%

Ichigo Sagamihara Building(O-55)

OfficeSagamihara City, Kanagawa

1,174

1,190

6.7%

100.0%

Ichigog Ofuna Buildingg(O-56)

OfficeKamak ra City,Kamakura
Cit KanagaKanagawa
a

2 000
2,000

2 030
2,030

6 0%
6.0%

96 8%
96.8%

Ichigo Sendai East Building(O-57)

OfficeSendai City, Miyagi

1,840

1,890

6.5%

100.0%

Ichigo Kumamoto Building(O-58)

OfficeKumamoto City, Kumamoto

1,450

1,460

7.3%

100.0%

Lions Square Kawaguchi(Z-12)

Other(Retail)Kawaguchi City, Saitama

2,430

2,500

5.7%

100.0%

Ichigo Shin-Yokohama
Arena-Dori Building (Z-13)

Other(Retail)Yokohama City, Kanagawa

1,700

1,730

5.7%

100.0%

Ichigo Kamata Building(Z-14)

Other(Retail)Ota-ku, Tokyo

1,400

1,410

5.4%

100.0%

26,75427,220

Average 5.6%

Average 99.0%

AssetAsset
TypeLocation

Ebisu Green Glass(O-51)

OfficeIchigo Omori Building(O-52)

Ebisu Green Glass

TotalIchigo Omori Building*Appraisal Value is as of October 1, 2014

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

6

Asset Sales Overview
15 Residential• Total sale price: JPY16.5 billion• Acquirer: Ichigo Group in bulk sale
Asset Type

AssetLocation(million yen)Appraisal Value*(million yen)

Sale Price

ForeCity Roppongi (R-01)

Residence

Minato-ku, Tokyo

1,570

1,480

ForeCity Azabujuban (R-02)(R 02)

Residence

Minato ku Tokyo
Minato-ku,

1 135
1,135

1 140
1,140

ForeCity Azabujuban No.2 (R-03)

Residence

Minato-ku, Tokyo

1,224

1,210

ForeCity Shirokanedai (R-05)

Residence

Minato-ku, Tokyo

750

756

ForeCity Akihabara (R-07)

Residence

Chiyoda-ku, Tokyo

2,191

2,120

Sweet One Court (R-08)

Residence

Chuo-ku, Tokyo

655

690

ForeCity Sasazuka (R-10)

Residence

Shibuya-ku, Tokyo

959

938

Gran Presso Kawadacho (R-11)

Residence

Shinjuku-ku, Tokyo

500

519

ForeCity Sakurashinmachi (R-12)

Residence

Setagaya-ku, Tokyo716795

ForeCity Shinkamada (R-13)

Residence

Ota-ku, Tokyo

990

1,020

ForeCity Nakaochiai (R-14)

Residence

Shinjuku-ku, Tokyo

335

372

ForeCity Tomigaya (R(R-15)
15)

Residence

Shibuya ku Tokyo
Shibuya-ku,

1 650
1,650

1 660
1,660

ForeCity Ryogoku (R-16)

Residence

Sumida-ku, Tokyo

1,080

1,080

ForeCity Toyosu (R-17)

Residence

Koto-ku, Tokyo

1,785

1,770

ForeCity Nishihonmachi (R-18)

Residence

Osaka City, Osaka

980

1,040

16,52016,520Total*Appraisal Value is as of October 31, 2014

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

7

Acquisitions and Sales Portfolio Outcome
Higher Office Weighting, Higher NOI Yield, Higher Occupancy+JPY 27B-JPY
JPY 17B(15 assets)(11 assets)

Portfolio Size
JPY 114B

Strategic Restructuring toF
Focus
on Mid-Size
Mid Si Offi
OfficePortfolio Size
JPY124B(66 assets)+JPY
JPY 9.5B
9 5B(71 assets)
NOI yield: 5.5%
Occupancy: 96.0%

A il 2014
April

Office Weighting:gg 66%  78%

Asset Acquisitions

Asset SalesNOI yield: 5.7% (+0.2%)
Occupancy: 96.1%(+0 1%)(+0.1%)P tT
Post-Transactionsti* Based on Acquisition (Sales) Price© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

8

Acquisition: Ebisu Green Glass (O-51)

Acquisition Price

5,900 million yen

Appraisalpp
Value

5,940,million yenyNOI Yield

4.2%

Asset TypeOffice

Address

Ebisu-Minami, Shibuya-ku, Tokyo

Leasable Area

3,159.27m
3
159 27m2

Structure

S

Construction DateOct 2009

Occupancy

90.6%

B1F / 9F

Location & Features
・ 4-minute walk from Yamanote Line and 2-minute walkfrom Hibiya Line of Ebisu Station
・ An area attracting wide variety of companies, especiallyIT, after opening of Yebisu Garden Place・High visibility on the corner of Komazawa Dori・ No pillars on large open floors; 2.65-meter high ceiling.
・ Equipped with high-spec IT network and a robust
security system to meet the needs of IT industry tenants
・ Eco-friendly features including solar panelsand rainwater recycling system© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

9Acquisition: Ichigo Omori Building (O-52)

Acquisition Price

3,850 million yen

Appraisal Value

3,920 million yen

NOI Yield

5.1%

Asset TypeOffice

Address

Minami-Ooi, Shinagawa-ku, Tokyo

Leasable Area

3,624.22m2

Structure

S / SRC

Construction Date

Jul 1992

Occupancy

100%

B1F / 8F

Location & Features
・ Conveniently located to both JR Omori and JR Omori
Kaigan Stations offering excellent CBD and Haneda
Airport access・ Near large-scalelarge scale shopping facilities such as Omori
Belport・ With Haneda Airport expanding and globalizing, CBDand retail shift underway
・ Architectural glass curtain wall with great lighttransmission
・ Café and convenience store on the first floor• Common area fully renovated in 2007.

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

10Acquisition: Ichigo Omiya Building (O-54)

Acquisition Price

3,430 million yen

Appraisal Value

3,520 million yen

NOI Yield

6.6%

Asset TypeOffice

Address

Miyacho, Omiya-ku, Saitama City,Saitama

Leasable Area

6,249.54m
6249 54m2

StructureRCConstruction DateNov 1986

Occupancy99.2%

B1F / 7F

Location & Features
・ 9-minute walk from Omiya Station served by both JRand private railways.
・ Located at the heart of Saitama Cityy within Saitama
Prefecture’s largest commercial and business district.
Steady demand for office leases from local companies
as well as branch offices of major companies
・ Good access facing major road with 63 parking spaces.
・ Well-configured and sub-dividable with a large floor
plate© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

11

Acquisition: Ichigo Sendai East Building (O-57)

Acquisition Price

1,840 million yen

Appraisal Value

1,890 million yen

NOI Yield

6.5%

Asset TypeOffice

Address

Miyagino, Miyagino-ku, Sendai City,Miyagi

Leasable Area

5,213.09m
5213 09m2

Structure

S

Construction Date

Sep 2008

Occupancy

100%

5F

Location & Features
・ Convenient train and car access, 3-minute walk from
JR Tsutsujigaoka Station and 15-minute walk from JR
Sendai Station and at the corner of Miyagino-dori, amajor Sendai traffic artery・ On the east side of Sendai station,station an area whereredevelopment is in progress. Tokyo Metro Tozai Linewill be in service from 2015. In light of this, new hotels,
retail stores, and offices are starting to or planning toopen. Quickly becoming very active area.
・ Large, well-configured space on each floor. High 2.8
meter ceilings
・ 64 parking spaces are available, responding to tenantcommute needs© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

12Acquisition: Ichigo Takadanobaba Building (O-53)

Acquisition Price

1,580 million yen

Appraisal Value

1,630 million yenNOI Yield

5.3%

Asset TypeOffice

Address

Takadanobaba, Shinjuku-ku, Tokyo

Leasable Area

1,606.92m2

StructureSRC

Construction DateSep 1993

Occupancy

100%

B1F / 7F

Location & Features
・ 3- minute walk from Takadanobaba Station on the JR
Yamanote Line, Tokyo Metro Tozai Line, and Seibu
Shinjuku Line・ Offices are in demand from companies
pand branchesof companies wanting to keep office rent low
・ Medium-sized floor plate and 2.55 meter ceilings. The
building is highly competitive compared to otherbuildings in the area for its high specification.
・ The first floor is occupied by an Italian restaurant, andthe 2nd to 6th floor are leased as offices© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

13

Acquisition: Ichigo Sagamihara(O-55)/ Ichigo Ofuna Building (O-56)
Ichigo Sagamihara(O-55)
Acquisition Price

1,174 million yen

Appraisal Value

1,190 million yen

NOI Yield

6 7%
6.7%

Asset TypeOffice

Address

Sagamihara, Chuo-ku, Sagamihara
City, Kanagawa

Leasable Area

2,959.38m2

StructureSRC

Construction DateMay 1989

Occupancy

100%7FIchigo Ofuna Building (O-56)
Acquisition Price

2,000 million yen

AAppraisal
i lV
Valuel

2 030 million
2,030
illi yen

NOI Yield

6.0%

Asset TypeOffice

Address

Ofuna, Kamakura City, Kanagawa

Leasable Area

2,364.67m2

Structure

RC

Construction Date

Apr 1973

Occupancy

96.8%© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

B1F / 8F

14

Acquisition: Ichigo Kumamoto(O-58)/ Lions Square Kawaguchi (Z-12)
Ichigo Kumamoto(O-58)
Acquisition Price

1,450 million yen

Appraisal Value1,460 million yen

NOI Yield

7.3%

Asset TypeOffice

Address

Karashimacho, Chuo-ku, Kumamoto
City, Kumamoto

Leasable Area

4,499.08m2

Structure

S / SRC

Construction Date

Mar 1991

Occupancy

100%

Acquisition Price

2,430 million yen

AAppraisal
i lV
Valuel2 500 million
2,500
illi yen

NOI Yield

5.7%

Asset Type

Other (Retail)

Address

Motogo, Kawaguchi City, Saitama

Leasable Area

7,788.09m
7788 09m2

Structure

S / SRC

Construction Date

Jul 1998

Occupancy

100%12F

Lions Square Kawaguchi (Z-12)
リレーションシップ ID rId8 のイメージ パーツがファイルにありませんでした。

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

6F15

Acquisition: Ichigo Shin-Yokohama Arena-Dori (Z-13)/
Ichigo Kamata Building(Z-14)
Ichigo Shin-Yokohama Arena-Dori (Z-13)
Acquisition Price

1,700 million yen

Appraisal Value

1,730 million yen

NOI Yield

5.7%

Asset Type

Other (Retail)

Address

Shin-Yokohama, Kohoku-ku,
Yokohama City, Kanagawa

Leasable Area

1,971.34m2

Structure

S 6F

Construction DateOct 2001

Occupancy

100%

Acquisition Price

1,400 million yen

AAppraisali lVValuel1 410 million
1,410illi yen

NOI Yield

5.4%

Asset Type

Other (Retail)

Address

Nishi-Kamata, Ota-ku, TokyoL
Leasablebl A
Area

2,124.68m
2124 68 2

Structure

SRC

Construction Date

Jul 1986

Occupancy

100%

Ichigo Kamata Building(Z-14)© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

B1F / 6F

16

On-Going Dividend Growth

1,541
yen
en

April 2014
Actual1,530
yen

October 2014
Forecast

1,540
yen

1,590,yen
Total Dividend

Total Dividend

1,588 millionyenOctober 2014
Revised Forecast

1,802 million
yenApril 2015
Forecast* Expected number of shares outstanding in the October 2014 revised forecast is 1,026,323.
** Expected number of shares outstanding in the April 2015 forecast is 1,1130,323. It is the sum of 1,026,323 shares issued and outstanding as ofOctober 31, 2014 plus 95,680 shares to be issued from a public offering and a maximum of 8,320 shares to be issued from a third-party allotment(should the over-allotment option be exercised).
© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

17

Disclaimer
These materials are for informational purposes only, and do not constitute or form a part of, and should not be construed as, anoffer to sell or a solicitation of an offer to buy any securities of Ichigo Real Estate Investment Corporation (Ichigo REIT). You
should 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 ofI hi REIT withIchigo
ith respectt tot financial
fi
i l condition
diti andd future
f t
results
lt off operations.
ti
TheseThstatementst tt are basedb
d on certaint i
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 byy the management
gof Ichigo
g REIT and Ichigo
g Real Estate Investment Advisors Co.,, Ltd.
(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.co.jp
IR_REIT@ichigo
holdings.co.jp
www.ichigo-reit.co.jp/english
Ichigo Group is Japan’s first zero-carbon listed real estate company. We aretaking responsibility for our environmental footprint by offsetting our carbon
emissions as well as working with organizations to invest in low-carbon
technologies.
© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

18

MEMO

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

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