Ichigo Office(8975)

Ichigo Office October 2018 Fiscal Period
Corporate Presentation
December 14, 2018

Ichigo Office REIT Investment Corporation (8975)
Ichigo Investment Advisors Co., Ltd.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

www.ichigo-office.co.jp/english

Ichigo Preserves andImproves Real Estate© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Ichigo Office Support for Tenant Growth
October 2018 Results October 2018 Highlights
 October 2018 Earnings
 October 2018 Financial Metrics
 17 Consecutive Periods of Dividend Growth– No. 1 vs. All J-REITs
 Growing Shareholder Value: Continued Growth in Base EPS
 Growing Shareholder Value: Continued Growth in NAV
 Sustained High Office Occupancy: 99.1%
 Organic Growth: Continuing Rental Growth Organic Growth: Existing Tenants at Higher Rents
 Organic Growth: New Tenants at Higher Rents
 Acquisition-Driven Growth: October 2018 Acquisitions

Ichigo Office’s ESG
 Ichigo Office’s Sustainability Commitment
 Environment
 Social
 GovernanceAppendix Financial & Portfolio Data, About Ichigo Office

Ichigo Office Growth Strategy
 Ichigo Office Growth Strategy Roadmap
 Execution of Growth Strategy Roadmap
 Today’s Transactions Drive Further Growth Organic Growth via Value-Add Capex and Leasing Value-Add Capex
 Sustainable Growth with Sponsor Support
 Access to Ichigo’s Robust Pipeline of Office Assets
 April 2019 Forecast
 October 2019 Forecast© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

4

Ichigo Office Support for Tenant Growth
Many Ichigo Office Tenants are Young Growth Companies% of Tenants that are Less than Five Years Old(Central Tokyo, 2015-18)

Reasons New Tenants Givefor Relocating
Moving to abetter location
4%≧5 years since
established76%<5 years since
established24%

3-5 years
43%

1-3 years46%<1 year11%

Reducing costor floor space
4%

Opening a
new office
14%

Moving to a different building
for larger floor space/adding floor space79%• 24% of tenants established their companies less than five years ago• Most are past startup phase & entering growth stage• They need more space as they expand and grow

Ichigo Office Initiatives to Support Tenant Growth• Fast, flexible, & focused on meeting diverse tenant needs with best-in-classoffice quality & functionality, e.g., Ichigo Layout Office, Ichigo Lounge• Ichigo Office’s “Triple Zero” program to reduce tenant costs
Zero deposit, Zero restoration requirement at departure, Zero guarantor
requirement and guarantor fee© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Ichigo Layout Office

Ichigo Lounge

5October 2018 Results© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

6

October 2018 Highlights
Achievements
AcquisitionDriven
GrowthOrganic Growth• Acquired 3 office assets (JPY 7.4B)

Drivers• Using cash-on-hand and borrowing capacity tofund accretive growth• Annual NOI impact +JPY 347M, avg. NOI yield
4.7%• Occupancy: 99.2%• Driving rent growth via value-add capex while• 37 upward rent renewals (avg +7.4%)
maintaining high occupancy• 25 new tenants at higher rents (avg +30.4%)• Stronger JCR Rating: A- to A
• New Loans JPY 2.9B
• Refinancing JPY 4.5B

• Hedging risk of higher interest rates with longterm fixed rate loans (avg. maturity 6.4 years,
94% of loans are fixed rate)

Base EPS1

JPY 1,945(+JPY 88, +4.7% vs. April 2018)• Continued Base EPS growth, with Base EPS+JPY 47 vs. initial forecast of JPY 1,898 (+2.4%)

FFO2

JPY 2,489• FFO growth driving base EPS and dividend growth

Dividend

JPY 2,014

NAV3

JPY 85,957

Financing(+JPY 35, +1.4% vs. April 2018)• 17 consecutive periods of dividend growth –No.1 vs. all J-REITs(+JPY 50, +2.5% vs. April 2018)(+JPY 1,881, +2.2% vs. April 2018)

1 Base EPS = EPS - Capital Gains

2 FFO = Funds From Operations• +JPY 2.9B increase in unrealized gains
JPY 28.5B  JPY 31.6B

3 NAV = BPS + Unrealized Capital Gains© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

7

October 2018 Earnings(JPY million)

April 2018
ActualOctober 2018
Actual (A)October 2018
Forecast (B)vs. Forecast(A) - (B)Operating Revenue

9,062

7,632

7,547

+85

Operating Profit

5,185

3,745

3,685

+59

Recurring Profit

4,442

2,958

2,885

+72

Net Income

4,441

2,980

2,908

+71

Dividend Reserve (-)

1,594

–

–

–

162

105

105

–

Dividend

JPY 1,964

JPY 2,014

JPY 1,967+JPY 47

EPS

JPY 1,857

JPY 1,945

JPY 1,898+JPY 47

NOI

5,373

5,496

5,409

+86

No. of Assets

82

85

84

+1

Occupancy

99.0%

99.2%

97.8%

+1.4%

Dividend Reserve Release (+)

Major Variation Factors (vs. October 2018 Forecast)
Increase in Rental Income +85
Increase due to Ichigo Uchi Honmachi Building acquisition +9
Increase in utilities income due to April 2018 asset sale adjustment +4[Existing Assets]
Increase in common area services income +49(Ichigo Nagoya Building +6)(Ichigo Nishiki First Building +4)
Increase in utilities income +16
Increase in other income +5
Increase in Rental Expenses +3
Increase due to Ichigo Uchi Honmachi Building acquisition +5[Existing Assets]
Increase in utilities expenses +26
Decrease in maintenance fees -21
Decrease in service provider expenses (mainly leasing brokerage fees) -3
Decrease in other expenses -4
Increase in Operating Expenses (excluding Rental Expenses) +21
Increase in performance fee to asset manager +24
Decrease in other expenses through cost reduction -3
Increase in Non-Operating Revenue +3
Increase in insurance income +2
Decrease in Non-Operating Expenses -9
Decrease in interest expenses (including bond interest) -6
Decrease in up-front loan fees & related expenses -3
Reference: Capex
October 2018 Actual 453
Reference: October 2018 Reserves (Post-Dividend)
Negative Goodwill Reserve 9,634
Dividend Reserve 2,254* NOI = Rental Income - Rental Expenses + Depreciation
No. of Assets and Occupancy are Period-End© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

8

October 2018 Financial Metrics
Long-Term Issuer Rating (JCR): A- (Positive)  A (Stable)
October 2017

April 2018

October 2018

FFO (per Share)

JPY 2,430

JPY 2,454

JPY 2,489

Dividend

JPY 1,930

JPY 1,964

JPY 2,014

NAV (per Share)

JPY 81,155

JPY 84,076

JPY 85,957

LTV

47.5%

46.9%

47.6%

Average Interest Rate

1.00%

1.02%

1.02%

Average Debt Maturity

5.4 years

5.8 years

6.0 years% Fixed Rate Loans

82.3%

90.9%

94.0%

* FFO = Net Income + Depreciation + Loss on Disposal of Fixed Assets + Liability for Asset Retirement Obligation + Loss on Asset Sale Gain on Asset Sale - Extraordinary Gain + Extraordinary Loss
LTV = Interest-Bearing Liabilities/Total Assets
Average Debt Maturity is Period-End© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

917 Consecutive Periods of Dividend Growth – No. 1 vs. All J-REITs(JPY)+12.5% CAGR

1,904

1,387

1,494

1,537

1,541

April
2013

October
2013

April
2014

1,547

1,706

1,603

1,923

1,930

1,964

2,014

October
2017

April
2018

October
2018

1,740

1,219
899

979

1,031

April
2011

October
2011

737

April
2010

October
2010

April
2012

October2012

October
2014

April
2015

October
2015

April
2016

October
2016

April
2017

* April 2010 to October 2011 dividends adjusted to reflect stock split on November 1, 2011; CAGR = Compound Annual Growth Rate
© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

10Growing Shareholder Value: Continued Growth in Base EPS
Base EPS +15.6% vs. April 2017
April 2019 Dividend +JPY 176 on Gains on Sale
Gains on Sale
Release from Dividend Reserve and Negative Goodwill Reserve
Base EPS

Dividend

1,923
241

1,682

April 2017

1,930

1,964

106

107

1,824

October 2017

(JPY)

2,014

2,215
176

2,070

69

69

69

1,857

1,945

1,970

2,001

April 2018

October 2018

April 2019
(Forecast)

October 2019
(Forecast)Base EPS = EPS - Capital Gains© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

11

Growing Shareholder Value: Continued Growth in NAV
Increased Portfolio Quality via Acquisitions and Sales
Per-Share NAV+36.1%

70,11773,49376,400(JPY)

78,336

81,15584,07685,957

63,140April 2015 October 2015 April 2016 October 2016 April 2017 October 2017 April 2018 October 2018

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

12

Sustained High Office Occupancy: 99.1%
Robust Market = High Occupancy, Rising Rents, Decreasing Free-Rent
Occupancy (Office)100%

Occupancy
98.5%

Average Rent per Tsubo (3.3m2)

Free Rent-Adjusted Occupancy
98.9%
98.5%
98.2%

Office (All)
99.1%

97.4%

16,80016,500

98.5%

97.1%

(JPY)

Office (Central Tokyo)
16,90016,80016,900

97.2%

95.5%
95%

13,90014,10014,20014,20014,50090%
Oct 2016

Apr 2017

Oct 2017

Average Free-Rent Period:
April 2018: 1.7 months
October 2018: 1.1 months

Apr 2018

Oct 2018

All Offices(Central Tokyo)

Oct 2016
70 Assets(39 Assets)

Apr 2017
71 Assets(40 Assets)

Oct 2017
74 Assets(42 Assets)

Apr 2018
74 Assets(42 Assets)

Oct 2018
77 Assets(44 Assets)

Occupancy is Period-End© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

13

Organic Growth: Continuing Rental Growth
New Tenants/
Increased Space

Departing Tenants/
Decreased Space

Renewals at
Higher Rent

+45

-34

+2

Change due toTenant Movements+JPY 10M (+1.1%)(JPY million)

Change due to
Lease Renewals+JPY 2M (+0.3%)

1,013

999
+2.7% p.a.

April 2018

Monthly Rent

October 2018

Change in Occupancy:
98.9% (April 2018)  99.2% (October 2018)* Change in Occupancy is like-for-like and thus excludes newly acquired or sold assets© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

14

Organic Growth: Existing Tenants at Higher Rents+7.4% Average Increase at Renewal, +JPY 2.8M Monthly Increase in Rents
New Rent vs. Previous Rent

Change in Total Rents(Office, Leased Area Basis)(Office)(Monthly rent, JPY thousand)■ Downward
0.0%■ Flat1.4%■ Upward
0.2%

0.1%

Downward:
1 tenant
Average decrease:-4.5%

UpwardDownward

4,268
66.9%

66.4%

+4,268

66.4%
82.8%

3,736

4,075

32.1%

33.3%

Flat: 203 tenants

17.1%
Apr 2017

Oct 2017

Apr 2018

Oct 2018

Upward:37 tenants
Average increase:
+7.4%

3,873

+4,056
2,838+3,39933.1%

Rent Change

0+2,826

-18

-11

0

Apr 2018

Oct 2018

Apr 2019-337
Apr 2017

Oct 2017* April 2019 reflects leases in place as of November 15, 2018.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

15

Organic Growth: New Tenants at Higher Rents
85% of New Tenants at Higher Rents
Significant Increases with New Tenants in Nagoya and Higashi Ikebukuro
New Tenant Rent vs. Previous Tenant Rent

Impact on Rental Income from Tenant Turnover (Office)(Office, Leased Area Basis)■ Downward■ Flat(Monthly rent, JPY thousand)■ Upward

11.8%
26.4%

4.5%

Downward:
4 new tenants
Average decrease:-11.1%

13.6%
28.5%

0.0%

UpwardDownward
Rent Change

9,500

Flat: None

6,793
7.2%

4.1%

Upward:25 new tenants
Average increase:+30.4%

67.3%

66.4%

Oct 2017+4,955

86.4%

83.7%

Apr 2017+8,920

Apr 2018

2,887+1,770

2,313
1,478

+2,093-1,117-220

Apr 2017

Oct 2017-580-1,838

Oct 2018

Apr 2018

Oct 2018

Apr 2019* April 2019 reflects leases in place as of November 15, 2018.
© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

16

Acquisition-Driven Growth: October 2018 Acquisitions
Acquired 3 Offices (Total JPY 7.4B)
Win Gotanda Building 2

MIF Building

Ichigo Uchi Honmachi Building

Acquisition Date

May 2018

May 2018

September 2018

Area

Shinagawa-ku, Tokyo

Chiyoda-ku, Tokyo

Chuo-ku, Osaka

Investment
Rationale

Strong Gotanda growth potential(5th Ichigo Office asset in Gotanda)

Close to Otemachi, with excellent
transport access across central Tokyo

Robust office demand from tenants inthe area

Acquisition Price

JPY 3.3B

JPY 2.2B

JPY 1.9B

NOI Yield

4.7%

4.6%

4.9%

Location

5-min walk from Gotanda Station on
JR Yamanote Line & adjacent to Osaki
Hirokoji Station on Tokyu Ikegami Line

4-min walk from Otemachi Station on
Marunouchi Line and a 6-min walk from
Kanda Station on JR Yamanote Line

3-min walk from Tanimachi Yonchome
Station on the Osaka Municipal Subway
Tanimachi and Chuo Lines

Occupancy

100%

100%

96.3%

SellerSponsor (Ichigo)

Sponsor (Ichigo)

Third Party (Domestic)

Asset* Forecast NOI Yield and Occupancy at acquisition© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

17

Ichigo Office Growth Strategy© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

18

Ichigo Office Growth Strategy Roadmap
Stage I - VI
2011/10

Stage VII

The Next Decade

Lay Foundations for Long-Term GrowthPremier Mid-Size Office J-REIT

2017/10Goals

Durably and Dynamically Grow Ichigo Office – Invest for
Growth・Sell non-office assets to secure funds for growth investments
・Adjust dividend reserve release policy
Invest for Sustainable Growth in Shareholder Value・Acquire high-quality assets via portfolio restructuring andusing borrowing capacity
・Carry out value-add capex

Actions■ Organic Growth Strategy
・Achieve minimal downtime between leases
・Carry out value-add capex to drive higher returns
・Implement environmental sustainability initiatives to growlong-term value
・Build a trusted Ichigo brand■ Acquisition-Driven Growth Strategy
・Use acquisitions to raise portfolio quality
・Acquire assets to increase shareholder value
・Consider M&A■ Financing Strategy
・Further improve borrowing terms
・Diversify funding via issuance of bonds
・Raise credit rating
・Enter global REIT indices© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Build Win-Win Relationships with Tenants toGrow Shareholder Value and Contribute to
the Development of the Japanese Economy■ Ichigo Office Differentiation Strategy
・Drive high occupancy and earnings through atenacious focus on tenant satisfaction
・Support the growth of startup tenants throughtenant networking and business matching
services
・Deliver services and spaces matched to tenant
needs
・Build a strong Ichigo Office brand centered on
tenant satisfaction■ Ichigo Office Portfolio Construction
・Further develop a specialized mid-size office
portfolio
・Drive sustainable growth through preserving
and improving Ichigo Office assets
・Be a leader in creating infrastructure andecosystem to support Japanese mid-size
offices and tenants

19

Execution of Growth Strategy Roadmap
Giving Priority to Growth Investments to Drive Shareholder ValueJPY 6.1B Growth in Shareholder Value (Unrealized Gains)
Before: JPY 25.5B After: JPY 31.6B (includes December 2018 acquisitions)

Maximize
Shareholder Value
October 2017
Reduced negative goodwill
amortization

October 2017

April 2018

JPY 1,824

October 2018
JPY 1,945 (+6.6% vs. October 2017)

Generate Funds
for GrowthBase EPS Growth

October 2019 (forecast)

Sold 3 retail assets & retained
gains on sales (JPY 1.5B)

April 2019
Sold 2 retail assets & retained
gains on sales (JPY 370M)

JPY 2,001 (+9.7% vs. October 2017)

GrowthInvestments
April 2018
Value-add capex (e.g., Ichigo Lounge)
Ichigo Layout Office(Ichigo Jimbocho Building)

Ichigo Uchi
Ichigo Minami
IchigoHonmachi Building Otsuka Building Nogizaka Building

October 2018
Acquired 2 mid-size offices in Central Tokyo and 1 mid-size office in Osaka
April 2019
Acquired 2 mid-size offices in Central Tokyo© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

20

Today’s Transactions Drive Further Growth (1)Sale of Two Non-Offices and Acquisition of Two Mid-Size Offices in Central Tokyo (JPY 6B)
Sales

Acquisitions
Ichigo Minami Otsuka Building

Ichigo Nogizaka Building

Closing Date

December 21, 2018

December 28, 2018

Area

Toshima-ku, Tokyo

Minato-ku, Tokyo

Features

Convenient access to central Tokyo only
1 station away from Ikebukuro Station, amajor rail hub

At center of the Akasaka, Roppongi,
Minami Aoyama areas favored by global
corporations

JPY 2.78B

JPY 3.32B

4.6%

4.1%

Location

6-min walk from Otsuka Station on JR
Yamanote Line and a 3-min walk from
Shin-Otsuka Station on Marunouchi Line2-min walk from Nogizaka Station on
Chiyoda Line and an 8-min walk from
Roppongi Station on Oedo Line

Occupancy

100%

100%

SellerThird Party(Domestic)

Third Party(Domestic)

Asset
Ichigo Machida Ichigo Shin Yokohama
Arena Dori Building
East Building(Yokohama)(Machida City,
Tokyo) Asset Type: Retail Book Value

JPY 2.947B
 Appraisal Value

JPY 3.33B
 Closing Date

December 20, 2018
 Expected Sales Price

JPY 3.6B
 Expected Gains on Sales

JPY 640M
 BuyerThird Party(Domestic)

Acquisition
Price
NOI Yield at
Acquisition© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

21

Today’s Transactions Drive Further Growth (2)Executing on Strategy to Grow Shareholder Value by Focusing Portfolio on
High-Quality Office Assets
 Transaction counterparties: Japanese real estate companies
 Increased portfolio size to JPY 200B
 +JPY 69M annual NOI, +JPY 322 NAV per share
Economics
Portfolio Size
% Office Assets

JPY 199.9B → JPY 203.0B
93.0% →

94.6%

NOI

+JPY 69M per annum

NAV per Share+JPY 322

Annualized forecast NOI of acquired assets calculated by IIA minus annualized NOI of sold assets based on October 2018 actual

Harvesting Gains on Sale in a Strong Real Estate Market
 Sale price +22% vs. book value, +8% vs. appraisal value
 JPY 370M of JPY 640M gains on sale retained for growth investments (includingthese acquisitions) in compliance with J-REIT conduit rules
 Part of proceeds used to increase April 2019 dividend by JPY 270M

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

22

Today’s Transactions Drive Further Growth (3)Continued Focus on Increasing Portfolio Quality & Harvesting Gains
Acquisitions and Sales since April 2017
April 2017 & October 2017
Acquisitions & Sales• Sold 4 assets (serviced

Sales(9 assets)apartments and retail assets)
to Ichigo• Sale price JPY 4.4B
(Gains on sales JPY 30M)

April 2018 & October 2018
Acquisitions & Sales

April 2019

Acquisition• Sold 3 retail assets to third-

Acquisitions & Sales• Sold 2 retail assets to third-party• Sale price JPY 3.6B

party
• Sale price JPY 6B(Gains on sales JPY
1.59B)(Gains on sales JPY 640M)

Ichigo Machida
East Building• Acquired 3 mid-size officeassets from Ichigo• Acquisition price JPY 7B• Acquired 2 mid-size officeassets from Ichigo• Acquisition price JPY 5.5B

Acquisitions(8 assets)
Win Gotanda Ichigo Hongo
Building
Building

Outcomes

OimachiCenterBuilding

Win Gotanda
Building 2

MIF Building• Acquired 1 mid-size

office asset from thirdparty• Acquisition price JPY
1.9B• Acquired 2 mid-size office assets

from third-parties• Acquisition price JPY 6B

IchigoUchi Honmachi Building

Portfolio Size

JPY 194.5B → JPY 203B (+JPY 8.5B)

Office %88.1% → 94.6% (+6.5%)

Ichigo Shin Yokohama
Arena Dori Building

Ichigo Minami
IchigoOtsuka Building Nogizaka Building

NOI Increase* 270M per annum
Gains onSales

+JPY 2.27B* Annualized forecast NOI of acquired assets calculated by IIA minus annualized NOI of sold assets based on each Fiscal Period actuals© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

23

Organic Growth

Organic Growth via Value-Add Capex and Leasing

Value-Add
Capex

April 2018

October 2018

Ichigo Jingumae Building(Shibuya-ku, Tokyo)

Ichigo Higashi Ikebukuro Building(Toshima-ku, Tokyo)

Ichigo Jimbocho Building(Chiyoda-ku, Tokyo)

 Amount

JPY 16M
 NOI Increase Rent Increase+27.8% ROI

JPY 2.3M/year 14.2%

 Amount

JPY 29M
 NOI Increase Rent Increase+59.3% ROI

JPY 9.5M/year 32.4%

Economics

October 2017

Economics

Economics

Value-Add Capex and Leasing Tailored to Each Tenant While Also
Minimizing Downtime and Free-Rent Period

 Amount

JPY 14M
 NOI Increase Rent Increase+75.0% ROI

JPY 6.1M/year 41.9%• Rental income increased via renovation• Rental income increased after creating• Rental income increased via expansion

Ichigo Gotanda Building(Shinagawa-ku, Tokyo)
Rents Up 14.3% via Tenant Replacement• Used leasing capabilities to find tenants,
minimizing downtime and free-rent

Ichigo Sakae Building(Nagoya)Rents Up 41.8% via Tenant Replacement• Used leasing capabilities to find retailtenants who would benefit from location,
eliminating downtime and free-rent

Win Gotanda Building 2(Shinagawa-ku, Tokyo)
Rents Up 16.8% via Tenant Replacement• Used leasing capabilities to quickly
acquire information on promising tenants,
eliminating downtime

to attract targeted tenants

Ichigo Lounge, a high-quality, shareduse space for tenantsof Ichigo Layout Office, providing prefitted & furnished office space

Leasing© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

24Organic Growth

Value-Add Capex
Completion of Seventh Ichigo Layout Office
Ichigo Jimbocho Building (Chiyoda-ku Tokyo)
 Fully-fitted offices to accelerate tenant move-ins and reduce tenant costs Flexible layouts support needs of startups and accommodate expansion
 Substantially higher rents that reflect higher value for tenants

Flexible Layout

Windows & Natural Light

Work Space

Conversation Space

Outcomes
Capex

JPY 14M

Rent Increase+75.0%NOI Increase+JPY 6.1M p.a.

ROI

41.9%

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

25

Acquisition-Driven Growth

Sustainable Growth with Sponsor Support
Pursue Long-Term Sustainable Growth by Leveraging Ichigo’s MarketLeading Value-Add Capabilities
Buy

Sell

Ichigo Office

Ichigo(8975)(TSE1 2337)

ThirdParty
Investors

Buy

Preserve and improve real estateleveraging
Ichigo’s Value-Add capabilities

Real
EstateValue-Add

Buy/SellAsset Warehousing
Sell

Ichigo Office Sourcing Strengths
・ Sourcing Diversity: Ichigo Office proprietary sourcing routes + Ichigo sponsor network
・ Strong Sponsor Support: Ichigo assets fully available to Ichigo Office for acquisition
・ Stable Sourcing: Backed by Ichigo value-add capabilities, so less sensitive to market environment© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

26

Acquisition-Driven Growth

Access to Ichigo’s Robust Pipeline of Office Assets
Ichigo’s Office Assets: c. JPY 60B (as of August 30, 2018)

Hakata Ekimae Square(Fukuoka)

Tradepia Odaiba(Tokyo)Kakyoin Plaza(Sendai)

Kichijoji Central Building(Tokyo)Ichigo Akasaka 317 Building(Tokyo)Ogaku Building(Tokyo)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Hakata MST(Fukuoka)

Takeyama Hakata Building(Fukuoka)27

April 2019 Forecast(JPY million)
October 2018
Actual (B)Operating Revenue

April 2019
Forecast (A)

7,632

8,356

vs. October 2018(A) - (B)+724

Operating Profit

3,745

4,457

+712

Recurring Profit

2,958

3,665

+707

Net Income

2,980

3,664

+683

–

376

+376

105

105

–

Dividend

JPY 2,014

JPY 2,215+JPY 201EPS

JPY 1,945

JPY 1,970+JPY 25

NOI

5,496

5,615

+119

85

85

–

99.2%

98.5%

-0.7%

Dividend Reserve (-)
Dividend Reserve Release (+)

No. of Assets
Occupancy

Major Variation Factors (vs. October 2018)
April 2019 Gains on Sale of Real Estate +645
Increase in Rental Income +79
Increase due to October 2018 asset acquisition +64
Increase due to April 2019 asset acquisition +108
Decrease due to April 2019 asset sale -101
[Existing Assets]
Increase in common area services income +78(Ichigo Nishiki First Building +41)
(Ichigo Jingumae Building +11)
Decrease in utilities income due to weather fluctuation -54
Decrease in lease termination penalties -15
Decrease in Rental Expenses -42
Increase due to October 2018 asset acquisition +25
Increase due to April 2019 asset acquisition +31
Decrease due to April 2019 sale -35[Existing Assets]
Decrease in utilities expenses due to weather fluctuation -58
Decrease in depreciation -14
Increase in maintenance fees +21
Decrease in service provider expenses (mainly leasing brokerage fees) -9
Increase in Operating Expenses (excluding Rental Expenses) +54
Increase in AM fees due to asset sale +18
Increase in non-deductible consumption tax +20
Increase in AM fees +5
Increase in other operating expenses +10
Increase in Non-Operating Revenue +24
Increase in insurance payment income & subsidies +27
Increase in Non-Operating Expenses +20
Increase in up-front loan fees & related expenses +19
Decrease in Extraordinary Gains -23
Decrease in October 2018 insurance gain -23
Reference: Capex
April 2019 Forecast 661* NOI = Rental Income - Rental Expenses + Depreciation
No. of Assets and Occupancy are Period-End© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Reference: April 2019 Reserves (Post-Dividend)
Negative Goodwill Reserve 9,529
Dividend Reserve 2,630

28

October 2019 Forecast(JPY million)
April 2019
Forecast (B)Operating Revenue

8,356

October 2019
Forecast (A)vs. April 2019(A) - (B)7,708

Major Variation Factors (vs. April 2019)-648

Operating Profit

4,457

3,897

-559

Recurring Profit

3,665

3,067

-597

Net Income

3,664

3,067

-597

Dividend Reserve (-)

376

–

-376

Dividend Reserve Release (+)

105

105

–

Dividend

JPY 2,215

JPY 2,070-JPY 145

EPS

JPY 1,970

JPY 2,001+JPY 31

NOI

5,615

5,590

-25

No. of Assets

85

85

–

Occupancy

98.5%

98.2%

-0.3%

Decrease in April 2019 Gains on Sale of Real Estate -645
Decrease in Rental Income -3
Increase due to April 2019 asset acquisition +48
Decrease due to April 2019 asset sale -43[Existing Assets]
Decrease in common area services income -31(Ichigo Shibuya Udagawacho Building -7)(Ichigo Ikejiri Building -6)
Increase in utilities income due to weather fluctuation +33
Decrease in other income -9
Increase in Rental Expenses +4
Increase due to April 2019 asset acquisition +26
Decrease due to April 2019 asset sale -24[Existing Assets]
Increase in utilities expenses due to weather fluctuation +43
Increase in property tax due to October 2018 and April 2019asset acquisitions +24
Decrease in maintenance fees -35
Decrease in depreciation -15
Decrease in service provider expenses (mainly leasing brokerage fees) -14
Decrease in Operating Expenses (excluding Rental Expenses) -95
Decrease in April 2019 performance fee to asset manager -72
Decrease in non-deductible consumption tax -20
Decrease in Non-Operating Revenue -27
Decrease in April 2019 insurance payment income & subsidies -27
Increase in Non-Operating Expenses +18
Increase in interest expense (including bond interest) +16
Reference: Capex
October 2019 Forecast 596
Reference: October 2019 Reserves (Post-Dividend)
Negative Goodwill Reserve 9,424
Dividend Reserve 2,630* NOI = Rental Income - Rental Expenses + Depreciation
No. of Assets and Occupancy are Period-End© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

29

Ichigo Office’s ESG© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

30

Ichigo Office’s ESG

Ichigo Office’s Sustainability Commitment
Ichigo Sustainability Policy
Ichigo believes that working on behalf of society and the environment is a fundamental social responsibility and will support the sustainable growth of
Ichigo and Ichigo Office. Ichigo has thus made sustainability a key priority, and has established the following Sustainability Policy to actively work to
reduce Ichigo’s environmental impact and support sustainable outcomes.
1. Harmony with the Environment
Ichigo actively monitors and minimizes the environmental impact of its real estate operations.
2. Energy Conservation, CO2 Emissions Reduction, and Recycling
Ichigo seeks to contribute to a low-carbon, low-waste society by lowering its energy consumption, extending the useful life of its
assets, actively recycling, and reducing waste and water consumption.
3. Regulatory and Environmental Compliance
Ichigo complies with all environmental laws and regulations and Ichigo’s own independently-established environmental rules. Ichigo
also carefully monitors and complies with all applicable changes in laws and regulations.
4. Training and AwarenessIchigo promotes understanding of its Sustainability Policy and works to increase sustainability awareness among all Ichigo employees.
Ichigo will also promote sustainability in coordination with Ichigo stakeholders, seeking understanding and cooperation onsustainability from Ichigo partner companies and tenants.
5. Sustainability Performance Communication and Disclosure
Ichigo communicates this Sustainability Policy and Ichigo’s sustainability initiatives to society at large. Ichigo also obtains
certifications for its sustainability activities on an ongoing basis.
6. Green Procurement
Ichigo will implement green procurement measures, such as environmentally-sensitive building materials and sustainable design, in
Ichigo’s building renovations, as well as selecting partner companies based on their environmental sustainability initiatives.

Ichigo Sustainability Structure− The Head of Ichigo Office is responsible for promoting sustainability and ensuring compliance with the Sustainability Policy.
− Quarterly meetings to monitor sustainability efforts and compliance Attended by the Heads of Sustainability, Asset Management, and Administration
 Develops sustainability goals and initiatives in coordination with sponsor Ichigo− Training and Awareness Conduct annual sustainability training for Office REIT asset management staff− Information Disclosure Disclose sustainability goals and performance and communicate to stakeholders© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

31

Ichigo Office’s ESG

Environment
GRESB Real Estate Assessment (started in 2016)− Awarded Highest Green Star Ranking in 2018 for second year in a row
 Assessment Key Points• Environmental Monitoring, Policy & Disclosure, Stakeholder Engagement
 Awarded Three Stars in the GRESB Rating (maximum five stars)

Environmental Certifications: 8 Assets, 15.3% of Total Leasable Area for Offices
CASBEE(Comprehensive Assessment System
for Built Environment Efficiency)
S rankBELS(Building-housing Energy-efficiency
Labeling System)
A rankIchigo Takamatsu Ichigo Marunouchi Ichigo Kanda
Building
Building
Nishikicho Building

Ebisu
Green Glass

2 Stars (★★)

1 Star (★)

Ichigo Akihabara
North Building

Ichigo Omiya
Building(as of October 31, 2018)
DBJ Green Building

3 Stars (★★★) 2 Stars (★★)

Ichigo Nihonbashi
East Building

Win Gotanda
Building

Energy Efficiency Measures− HVAC renewals and LED light installations in common areas− Energy-saving diagnosis conducted by Tokyo Metropolitan Centerfor Climate Change Actions− Install energy-efficient HVAC using government subsidies
 HVAC update at Ichigo Toyamaeki Nishi Building (October 2018) 56.4% energy reduction expected through subsidies of JPY 7.3 million(17% of JPY 43 million in construction costs)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Ichigo Toyamaeki Nishi Building

32

Ichigo Office‘s ESG

SocialTenant Satisfaction Surveys to Learn & Respond to Tenant Needs− August 2018 Survey Results on P61− Promote exercise and convenience throughbike-sharing service

Bike Sharing

Night Patrol

Halloween Clean-Up

Snow Shoveling

Help Disaster-Struck Communities− Send engineers and donate emergency equipment tosupport disaster recovery and response

Participation in Local Community Associations
and Events

Elevator Emergency Kits,
AED

Drink Machines
to Support Disaster Zones

Emergency Drill

Healthy and Supportive Workplace− HR Training Employee skill and career development through Ichigo University classes• Over 20 classes on real estate, accounting, finance, and other topics offered annually Financial support for licenses and qualifications (Real Estate Securitization, Real Estate Broker,
Real Estate Appraiser)− Promoting Work-Life Balance and Gender Equality
 Measures to support career development for parents such as maternity leave, child care leave, andshortened work days
• 100% of Employees Return from Maternity/Child Care Leave• 36.5% of Employees are Women− Combating Anti-Social Forces (Organized Crime) Operational structure to fully prevent transactions with anti-social forces© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

33

Ichigo Office’s ESG

Governance (1)Investment Corporation

Asset Management Company (AMC)− All Ichigo Office directors are independent− Active dialogue and effective internal control via Board
discussions led by Statutory Executive Officers− Drawing upon the expertise of Supervising Directors, who
are lawyers and accountants− Majority of AMC Directors (3 of 5) are independent− Independent asset management execution by Ichigo Office
REIT− Compliance and Audit are directly under the AMC President
to monitor and review critical compliance matters− Ensure objectivity by including third-party, independentlawyers and accountants in the Investment Committee andRisk & Compliance Committee

Investment Corporation
Ichigo Office Asset

Ichigo Office

Administrative
Service Agreement/
Asset Custodial
Service Agreement/
Shareholder Registrar
Service Agreement(TSE 8975)
Shareholder Meeting
Board of Directors
Executive Director Yoshihiro Takatsuka
Supervising Director Takaaki Fukunaga
Supervising Director Masahiro Terada

RentalIncomeProperty
Management
Agreement

Shareholder Meeting
Nominating
Committee
Audit Committee
Compensation
Committee
ChairmanExternal Auditor
Grant Thornton Taiyo LLC

Asset Management
Agreement

Risk & Compliance
Committee

Administrative Agent, Custodian,and Shareholder Registrar

Internal Audit
President
Compliance
Investment Committee(Office REIT)

Mizuho Trust & Banking
Office REIT

Asset Management Company
Property
Management
Company

Board of Directors

Asset Management
Portfolio Management

Ichigo Investment Advisors© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

34

Ichigo Office’s ESG

Governance (2)Compliance and Risk Management−−

Follow FSA’s “Principles for Customer-First Business Practices”
Well-established related-party transaction rules Acquisitions from sponsor (Ichigo) must be below independent, third-party appraisal value –similarly, sales to Ichigo must be above independent, third-party appraisal value
 Compliance Officer further confirms transaction fairness with second-opinion third-party appraisal−

Rotation rule for First Refusal Right to eliminate conflicts of interest
 Information related to asset acquisitions is distributed to Ichigo Office or other potential Ichigorelated buyers based on predetermined objective rules−

Financial ADR/ Internal Reporting System Third-party financial ADR system and internal reporting system overseen by external legal counsel
Decisionmaking Process
Acquisitions& Sales

Office REIT
AM

Business
Planning

ComplianceObtaininformation;Due
diligence;
Valuation

Considerviability;
Draft
approvalmemo

Identify andinvestigate
risks

Acquiresecondopinion for
fairness of
price

Other
BuyersRisk &
Compliance
Committee
Risk
compliancedeliberation(unanimous
approval)

REIT Board

Investment
Committee

Consent for
acquisition

Decision for
acquisition

A rotation rule for the First Refusal Right
ensures objectivity in allocating opportunities
for Ichigo Office or other Ichigo-related buyers
to acquire office assets© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

35

Appendix: Financial & Portfolio Data

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

36

October 2018 vs. April 2018 Earnings(JPY million)
April 2018
Actual (B)October 2018
Actual (A)vs. April 2018(A) - (B)

Major Variation Factors (vs. April 2018)
Decrease in April 2018 Gains on Sale of Real Estate -1,594

Operating Revenue

9,062

7,632

-1,429Operating Profit

5,185

3,745

-1,439Recurring Profit

4,442

2,958

-1,483Net Income

4,441

2,980

-1,460

Dividend Reserve (-)

1,594

–

-1,594

162

105

-57

Dividend

JPY 1,964

JPY 2,014+JPY 50EPS

JPY 1,857

JPY 1,945+JPY 88

NOI

5,373

5,496

+122

No. of Assets

82

85

+3

Occupancy

99.0%

99.2%

+0.2%

Dividend Reserve Release (+)

Increase in Rental Income +165
Increase due to October 2018 asset acquisition +164
Decrease due to April 2018 asset sale -180
[Existing Assets]
Increase in common area services income +144
(Ichigo Sakae Building +37)
(Ichigo Higashi Ikebukuro Building +17)
Increase in utilities income due to weather fluctuation +57
Decrease in lease termination penalties -19
Decrease in Rental Expenses -15
Increase due to October 2018 asset acquisition +47
Decrease due to April 2018 asset sale -103
[Existing Assets]
Increase in utilities expenses due to weather fluctuation +75
Increase in property tax due to October 2017asset acquisition and reappraisal +40
Decrease in depreciation -54
Decrease in service provider expenses, maintenance fees -21
Increase in Operating Expenses (excluding Rental Expenses) +25
Increase in performance fee to asset manager +57
Decrease in AM fees due to April 2018 asset sale -30
Decrease in non-deductible consumption tax -22
Increase in other operating expenses +19
Decrease in Non-Operating Revenue -46
Decrease in insurance income -46
Decrease in Non-Operating Expenses -2
Increase in interest expenses (including bond interest) +19
Decrease in up-front loan fees & related expenses -21
Increase in Extraordinary Gains +23
Insurance gain +23* NOI = Rental Income - Rental Expenses + Depreciation
No. of Assets and Occupancy are Period-End© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

37

Rapid Re-Tenanting After Vacancies
Newly Leased and Newly Vacated Office Space (m2)
Newly Leased
Newly Vacated

13,185

12,558

7,153

5,982

5,778

-3,490-6,498-5,300-6,355-10,502
Oct 2016-11,434
Apr 2017

Oct 2017

Apr 2018

Oct 2018

Newly Leased

11.3%

6.4%

5.3%

11.3%

4.8%

Newly Vacated

9.5%

5.8%

5.7%

9.8%

4.4%

Net Leasing (㎡ )+2,055+655-372+1,751+477© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Apr 2019
Forecast
TBD
2.8%
TBD
38

Borrowing Details (1)Loan Details

Average Interest Rate and Average Remaining Loan Maturity(Interest Rate)
2.5%(Average Remaining Loan Maturity including Bonds, Years)
5

Average Interest Rate
2.0%

3.5 years

Borrowings in the October 2018 Period

Average Remaining Loan Maturity
4

3.2 years

3.4 years

3.2 years

3.4 years

1.5%

3

1.0%

1.02%

1.00%

1.02%

1.02%

Bank
Loans

2

1.00%

0.5%

1

0.0%

Total/
Average0
April 2017

October 2017

April 2018

October 2018

November 30, 2018

Fixed vs. Floating Loan Ratio
Fixed

17.7%

Floating

17.7%

9.1%

6.0%

6.0%

100%

AmountMaturity

Interest
Rate

JPY 2B

6 years

0.79500%

JPY 2.95B 6.4 years

0.86000%

JPY 0.9B 5.4 years

1M JPY
TIBOR+0.57%

JPY 1B

7.5 years

0.96250%

JPY 0.6B 7.5 years

1M JPY
TIBOR+0.65%

JPY 7.45B 6.4 years

0.81697%

Bond Issuance on November 29, 2018
AmountMaturity

Interest
Rate

JPY 1B

7 years0.75000%

Fixed *
Bond

Floating* Fixed includes
floating loans
fixed via
interest rate
swaps

82.3%

82.3%

90.9%

94.0%

New Loan on November 30, 2018

94.0%

Maturity

Interest
Rate

JPY 2.87B 7.8 years

0.97500%

AmountApril 2017

October 2017

April 2018

October 2018

November 30, 2018

0%

Bank
Loan

* New bonds (JPY 1 billion) were issued on November 29, 2018 and a new loan (JPY 2.87 billion) was executed on November 30, 2018.
© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

39

Borrowing Details (2)Loan Maturity Distribution (as of November 30, 2018)
Bank Loans (fixed rate including fixed via interest rate swaps)
Bank Loans (floating rate)

10,233
8,814

9,574

Bonds
Bonds issued on November 29
New loan executed on November 30(JPY million)

9,639

9,629

9,633

9,623

7,263
6,554

6,346
7,859
3,000

1,000

4,600

6,370
2,900

2,380

4,954

2,000
892

955

900

2,866
1,200

1,000

600

Apr 2019 Oct 2019 Apr 2020 Oct 2020 Apr 2021 Oct 2021 Apr 2022 Oct 2022 Apr 2023 Oct 2023 Apr 2024 Oct 2024 Apr 2025 Oct 2025 Apr 2026 Oct 2026 Apr 2027 Oct 2027 Apr 2028 Oct 2028

* A new loan (JPY 2.866 billion) was executed on November 30, 2018.

LTV (as of October 31, 2018)

(%)

55
LTV

LTV (Market Value Basis)*

50

45

40

47.6%

47.5%

46.9%

41.6%

42.5%

41.5%

41.7%

Apr 2017

Oct 2017

Apr 2018

Oct 2018

46.0%

45.7%

42.4%

Oct 2016

43.1%

40.1%

* Market Value =Total Assets +Unrealized Gains35
Apr 2016© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

40

Lender Base and Ichigo Office Credit Rating
Lender Base (as of October 31, 2018)

Lender Base (as of November 30, 2018)(JPY million)

LenderAmount

Ratio

SMBC
Mizuho Bank
Shinsei Bank

27,43018,727
13,661

26.0%
17.7%
12.9%

MUFG Bank
Aozora Bank
Resona Bank

11,594
9,949
8,802

11.0%
9.4%
8.3%

Bank of Fukuoka
Development Bank of Japan
ORIX Bank

3,312
3,000
2,270

3.1%
2.8%
2.2%

The Kagawa Bank
Mizuho Trust
Nishi-Nippon City Bank

1,792
1,639
1,220

1.7%
1.6%
1.2%

103,400

97.9%

Total
Bonds
Unsecured Bond No.1
Unsecured Bond No.2
Total Bonds
Total Interest-Bearing Liabilities

Amount(JPY million)
Lender

1.1%
0.9%

2,200
105,600

2.1%
100.0%

Ratio

SMBC

26,83725.4%

Mizuho Bank

18,727

17.7%

Shinsei BankMUFG Bank

13,66011,594

12.9%
11.0%

Aozora Bank

9,541

9.0%

Resona Bank
Bank of Fukuoka

8,802
3,312

8.3%
3.1%

Development Bank of Japan

3,000

2.8%

ORIX Bank
The Kagawa Bank

2,270
1,792

2.2%
1.7%

Mizuho Trust
Nishi-Nippon City Bank

1,639
1,220

1.6%
1.2%

102,398

97.0%

Total
Bonds

Ratio

1,200
1,000

AmountAmountRatio

Unsecured Bond No.1

1,200

1.1%

Unsecured Bond No.2
Unsecured Bond No.3

1,000
1,000

0.9%
0.9%

Total Bonds

3,200

3.0%

Total Interest-Bearing Liabilities

105,598

100.0%

Credit Rating
Credit Rating Agency

Type of Rating

RatingRating Outlook

Japan Credit Rating Agency(JCR)

Long-Term Issuer Rating

A

Stable© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

41

Continued Growth in Portfolio Unrealized Gains
Unrealized Gains of JPY 31.5B, +JPY 2.9B vs. April 2018
(JPY million)
18%

300,000
Period-End Book Value

Period-End Appraisal Value

Unrealized Gains

15.98%

15.01%
13.09%
11.17%

250,000

12%

9.36%

229,198
220,7998.18%
207,5375.13%

200,000

173,447

1.55%

164,977

197,617

195,249
189,765

3.79%

219,100

209,667
190,506

188,598

6%

174,955
161,7210.01%
0%150,000
113,022 113,034 112,433

114,182

121,741

126,359

100,000-6%

50,000

-12%

-18%

0
Apr 2014(71 assets)

Oct 2014(70 assets)

Apr 2015(65 assets)

Oct 2015(77 assets)

Apr 2016(73 assets)

Oct 2016(85 assets)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Apr 2017(82 assets)

Oct 2017(85 assets)

Apr 2018(82 assets)

Oct 2018(85 assets)

42

Lease Renewals
October 2018: Change in Monthly Rent by Asset TypeApr 30, 2018
(A)

New
Contracts

Contract
Terminations((JPY million)
UpwardAsset
Acquisiton

Downward

Oct 31, 2018
(B)

Change at
Existing
AssetsChange(B) - (A)Office

999

+45

-34

+2

－

+32

1,045

+46

+13

Other

81

+1

-1

－

－

－

81

－

－

Total

1,080

+46

-35

+3

－

+32

1,127

+46

+14

October 2018: Lease Renewals by Asset Type
Asset Type
UpwardDownward

Flat

Total

No. ofAssetsLeasedArea

Change in Rent
(Semi-Annual)

Change from
Previous Rent

Office37

9,827m2+JPY 17.0M

+7.4%

Other

1

1,711m2+JPY 0.7M

+5.2%

Total

38

11,539m2+JPY 17.7M+7.3%

Office1

77m2-JPY 0.1M

-4.5%

Other

—

—

—

—

2

-JPY 0.1M

-4.5%

Total

1

77m

Office203

47,599m2

—

—

Other

7

1,104m

2

—

—

Total

210

48,703m2——

Office241

57,503m

2+JPY 16.9M

+1.2%

Other

8

2,816m2+JPY 0.7M

+1.4%

Total

249

60,320m2+JPY 17.6M+1.2%* Excludes assets sold during the Oct 2018 period© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

43

Leased Area
October 2018: Leased Area by Asset Type((m²)

Apr 30, 2018

New Contracts

Contract
Terminations

Asset
Acquisition

Office230,440+5,778-5,300+7,848

238,766+8,326

+477

Other

22,437

+281

-235

－

22,483

+46

+46

Total

252,877+6,059-5,535+7,848261,250+8,372+524

Oct 31, 2018

Change of
Existing Assets

ChangeOctober 2018: New Leases & Lease Terminations by Asset Type
New Leases

Lease Terminations
Asset Type

Upward

Flat

Total

LeasedArea

Total Rent
(Semi-Annual)

No. ofAssets

Office25

4,989m2+JPY 244M

Office

Other

2

136m

2

+JPY 7M

5,126m2+JPY 252M

2+JPY 27M

Total
Downward

No. ofAssets27

Office

4

788m

Other

–

–

–

Total

4

788m2

+JPY 27M

Office

–

–

–

Other

1
－

2
145m－

+JPY 2M

Total

1

145m2

+JPY 2M

29

5,778m2+JPY 272M

2+JPY 10M+JPY 282M

Office
Other

3

281m

Total

32

6,059m2

LeasedArea

Total Rent
(Semi-Annual)28

5,300m2-JPY 204M

Other

2

235m

2

-JPY 8M

Total

30

5,535m2-JPY 212M* Excludes assets sold during the Oct 2018 period© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

44

Survey Data: New & Departing Tenants
New Tenants

Departing Tenants

Opening a new office or moving to a better location

Moving to a different building for larger floor space or better location

Moving to a different building for larger floor space / adding floor space

Reducing cost or moving to a different building to integrate with other divisions

Reducing cost or floor space

Closing office

Other

Other

Apr 2017

Oct 2017

56.8%

73.0%

Apr 2018

51.9%

Oct 2018

51.7%

9.1%

29.5%

Apr 2017

22.9%

5.4%
8.1%

Oct 2017

24.3%

7.4%
11.1%

Apr 2018

14.3% 14.3%

Oct 2018

28.6%

4.5%

13.5%

29.6%

37.9%

6.9%
3.4%

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

14.3%

29.7%

60.0%

37.8%

67.9%

10.7%

50.0%

2.9%

8.1%

3.6%

10.7%

45

Free Rent Incentive Trends
Free Rent Incentive Trends

Rental Income Loss due to Free Rent
(Months)3
2.6

Tokyo Metro Area (Average)
Regional Cities (Average)

2.6

2.4

(JPY million)
Loss from Free Rent

2.1
112

2

89

Actual Rent Income

46

94

81

1.7
1.8
1.6

1.6
1.2

1

5,989

6,251

6,498

6,471

6,614

Oct 2016

Apr 2017

Oct 2017

Apr 2018

Oct 2018

0.7

0Oct 2016

Apr 2017

Oct 2017

Apr 2018

Oct 2018© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

46

Value-Add Capex Plan
Capex Tailored to Tenant Needs
Maintenance Costs, Capex, and Depreciation

April 2019 Capex Plan
(JPY million)
Asset Name

1,200
Maintenance

914
900

Capex

857

Depreciation

854
837

Details

Investment

Ichigo Ofuna Building

Exterior Wall Renovation

JPY 51M

Ichigo Sasazuka Building

Air Conditioning Upgrade (6th, 11th &12 floors)

JPY 41M

Ichigo Sakurabashi Building

Exterior Wall Renovation

JPY 20M

Ichigo Uchi Honmachi Building

Renovation to Guest Rooms (4th floor)

JPY 20M

661
596

600

October 2019 Capex Plan

453
395

Asset Name

300
130

117

142

106

0
Apr 2018

Oct 2018

Apr 2019
Forecast

Details

Investment

Ichigo Toyamaeki Nishi Building

Air Conditioning Upgrade (Phase 3 of 3)

JPY 42M

Ichigo Sasazuka Building

Air Conditioning Upgrade (3rd & 13th floors)

JPY 29M

Ichigo Kanda Ogawamachi Building

Exterior Wall Renovation

JPY 28M

Ichigo Otsuka Building

Elevator Upgrade

JPY 22M

Oct 2019
Forecast© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

47

Organic Growth Strategy

Rent Gap or Rental Income Growth Potential
Increased Rent Gap Due to Strong Office Lease Market
Promoting Upward Lease Renewals Starting with Below-Market Rent Tenants
Lease Renewal Timing and Rent Gap

New Rent vs. Previous Rent
(Office, By Leased Area)
10%

9.10%

■ >10%■ -10% to 0%
All areas■ 0% to 10%■ Below -10%

Central Tokyo

233 (26.2%)
210 (23.6%)

8.33%

29

(JPY million)

260 (29.1%)
50

34
188 (21.1%)
21

5%

63
1.48%

0.50%

0.38%

1.09%

0%

-0.34%-0.12%

0.40%

0.21%
-1.07%-0.43%-2.15%-2.35%

-5%
Apr
2015

Oct
2015

Apr
2016

Oct
2016

89

62

52

1.48%

Apr
2017

Oct
2017

Apr
2018

Oct
2018

Below-Market Rent Tenants

2.03%

69

71

68

89

47

47

42

Apr 2019

Oct 2019

Apr 2020© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

59

Oct 2020~

48

Portfolio Growth as Mid-Size Office REIT
As of April 30, 2018
No. of Assets

As of October 31, 2018

As of December 28, 2018

Total

82 assets

85 assets

85 assets

Office74 assets

77 assets

79 assets

Other

8 assets

8 assets

6 assets

Total

JPY 192.5B

JPY 199.9B

JPY 203.0B

Office

93%

93%

95%

Other

7%

7%

5%

Central Tokyo

56%

57%

58%

Tokyo Metropolitan Area

23%

22%

22%

Four Major Regional Cities

14%

14%

14%

Other Regional Cities

6%

6%

6%

Appraisal Value

JPY 219.1B

JPY 229.1B

JPY 232.4B

Leasable Area

255,487m2

263,440m2

264,589m2

99.0%

99.2%

99.2%

891

923

922

5.5%

5.5%

5.5%

Portfolio Size

Area

Occupancy
No. of Tenants
NOI Yield•••

Annualized NOI Yield. Four Major Regional Cities refers to Osaka, Nagoya, Fukuoka, and Sapporo.
Leasable Area, Occupancy, No. of Tenants as of December 28, 2018 are provisionally calculated using data of assets held as of October 31, 2018
and assets acquired in the April 2019 period.
NOI Yield is calculated excluding assets sold in each period; NOI Yield of assets acquired in the April 2019 period are determined from the annual NOI
calculated using a DCF method based on appraisal value at acquisition.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

49

High Seismic Safety
Acquisition Guidelines− Seismic Safety：Compliant with new seismic standard− Seismic PML1：Stand-alone PML of 20% or less, with a non-exceedance probability of
90% for the Entire Portfolio
Portfolio Assets Seismic Safety Profile (as of December 28, 2018)

Portfolio PML
Assets Built under Old SeismicStandard, but Seismic Renovation
Completed (5 assets)(Leasable Area Ratio: 7.2%)

Assets Built under Old SeismicStandard, but Original Construction
Met New Earthquake ResistanceStandard (3 assets)22.52%
as of December 28, 2018

(Leasable Area Ratio: 3.3%)

Assets Built under Old Seismic Standard, but
Seismic Renovation Completed (5 assets)

New Earthquake ResistanceStandard(77 assets)(Leasable Area Ratio: 89.5%)

Ichigo Fiesta Shibuya Building, Ichigo Sakae Building, Ichigo Mita
Building, Ichigo Gotanda Building, and Ichigo Higashi Ikebukuro
Building
Assets Built under Old Seismic Standard, but Original Construction
Met New Earthquake Resistance Standard (3 assets)2
Ichigo Ginza 612 Building, Ichigo Ofuna Building, andIchigo Nagoya Building

1 PML (Probable Maximum Loss) is the maximum expected loss from a large-scale earthquake (defined as an earthquake with an expected frequency of occurrence once

every 475 years, or a 10% chance of occurrence within the next 50 years) occurring in the next 50 years, expressed as a ratio to the estimated replacement cost.
2 Assets evaluated as having seismic strength equivalent to new earthquake resistance standards and for which a third-party seismic evaluation report has been obtained.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

50

Portfolio Details (1)as of October 31, 2018
Asset
Type

OfficeArea

Location

Acquisition
Book Value
Price(JPY M)(JPY M)

Leasable
Area
(m 2)

Oct 2018 Appraisal

Apr 2018 Appraisal

Value(JPY M)

Value(JPY M)

ChangeNo.

Asset Name

O-02

Ichigo Nishisando Building

Central Tokyo

Shibuya-ku, Tokyo

3,254

3,373

4,564.63

100.0%

3,170

4.2%

3,090

4.2%

+80

O-03

Ichigo Mita Building

Central Tokyo

Minato-ku, Tokyo

2,740

2,729

4,121.42

100.0%

3,510

4.3%

3,450

4.3%

+60

–

O-04

Ichigo Nanpeidai Building

Central Tokyo

Shibuya-ku, Tokyo

1,920

1,919

1,925.24

100.0%

2,560

3.6%

2,510

3.7%

+50

-0.1%

O-05

Ichigo Hanzomon Building

Central Tokyo

Chiyoda-ku, Tokyo

1,550

1,512

2,080.37

100.0%

1,880

3.9%

1,800

4.0%

+80

-0.1%

Occupancy

Cap rate

Cap rate

Value(JPY M)

Cap rate–

O-06

Ichigo Hijirizaka Building

Central Tokyo

Minato-ku, Tokyo

1,200

1,213

1,947.90

100.0%

1,440

4.6%

1,410

4.6%

+30

–

O-07

Ichigo Shibuya Kamiyamacho Building

Central Tokyo

Shibuya-ku, Tokyo

1,505

1,382

1,321.54

100.0%

1,810

3.9%

1,800

3.9%

+10

–

O-08

Ichigo Akasaka 5 Chome Building

Central Tokyo

Minato-ku, Tokyo

735

722

683.86100.0%

806

3.9%

781

4.0%

+25

-0.1%

O-09

Ichigo Shibakoen Building

Central Tokyo

Minato-ku, Tokyo

1,100

1,102

1,602.29

100.0%

1,130

4.4%

1,130

4.4%

–

–

O-10

Ichigo Ebisu Nishi Building

Central Tokyo

Shibuya-ku, Tokyo

1,917

1,929

1,484.39

100.0%

2,440

3.9%

2,370

4.0%

+70

-0.1%

O-11

Ichigo Ginza 612 Building

Central Tokyo

Chuo-ku, Tokyo

1,773

1,776

1,387.09

96.5%

2,000

3.9%

2,000

3.9%

–

–

O-12

Ichigo Uchikanda Building

Central Tokyo

Chiyoda-ku, Tokyo

1,140

1,114

1,378.83

100.0%

1,170

4.4%

1,170

4.4%

–

–

O-14

Ichigo Yotsuya 4 Chome Building

Central Tokyo

Shinjuku-ku, Tokyo

550

514

780.64100.0%

575

4.3%

575

4.3%

–

–

O-15

Ichigo Tameike Building

Central Tokyo

Minato-ku, Tokyo

580

528

494.14

80.6%

684

3.9%

691

3.9%

-7

–

O-16

Ichigo Jimbocho Building

Central Tokyo

Chiyoda-ku, Tokyo

1,820

1,813

1,891.01

92.6%

2,290

4.2%

2,290

4.2%

–

–

O-17

Ichigo Hakozaki Building

Central Tokyo

Chuo-ku, Tokyo

1,150

1,154

2,387.34

100.0%

1,150

4.5%

1,150

4.5%

–

–

O-18

Ichigo Kudan 2 Chome Building

Central Tokyo

Chiyoda-ku, Tokyo

763

735

1,288.31

100.0%

915

4.4%

914

4.4%

+1

–

O-19

Ichigo Kudan 3 Chome Building

Central Tokyo

Chiyoda-ku, Tokyo

844

826

1,302.43

100.0%

851

4.5%

848

4.5%

+3

–

O-20

Ichigo Gotanda Building

Central Tokyo

Shinagawa-ku, Tokyo

5,060

4,874

5,346.39

100.0%

6,250

4.6%

6,070

4.7%

+180

-0.1%

O-21

Ichigo Shin Yokohama Building

Tokyo Metro Area Yokohama City, Kanagawa

1,816

1,712

4,021.32

97.7%

1,870

4.8%

1,830

4.9%

+40

-0.1%

O-22

Ichigo Minami Ikebukuro Building

Tokyo Metro Area Toshima-ku, Tokyo

1,460

1,385

1,491.51

100.0%

1,630

4.1%

1,580

4.2%

+50

-0.1%

O-23

Ichigo Nakano North Building

Tokyo Metro Area Nakano-ku, Tokyo

764

741

1,250.85

90.8%

885

4.9%

847

4.9%

+38

–

O-24

Ichigo Eitai Building

Tokyo Metro Area Koto-ku, Tokyo

1,490

1,469

2,605.54

100.0%

1,250

4.9%

1,250

5.0%

–

-0.1%

O-26

Ichigo Ikejiri Building

Tokyo Metro Area Meguro-ku, Tokyo

2,030

1,962

2,385.69

100.0%

2,220

4.5%

2,180

4.6%

+40

-0.1%

O-27

Ichigo Nishi Ikebukuro Building

Tokyo Metro Area Toshima-ku, Tokyo

639

607

1,261.91

100.0%

837

4.6%

879

4.7%

-42

-0.1%

O-28

Ichigo Nishi Gotanda Building

Central Tokyo

765

762

1,329.06

100.0%

825

4.6%

815

4.6%

+10

–

O-29

Ichigo Kichijoji Building

Tokyo Metro Area Musashino City, Tokyo

2,160

2,195

4,210.87

100.0%

2,800

4.9%

2,770

4.9%

+30

–

O-34

Ichigo Sakae Building

Four Major Cities Nagoya City, Aichi

4,705

4,693

3,928.12

100.0%

6,480

4.9%

6,480

4.9%

–

–

O-37

Ichigo Marunouchi Building

Four Major Cities Nagoya City, Aichi

6,710

5,870

8,009.11

100.0%

7,520

4.4%

7,350

4.5%

+170

-0.1%

O-38

Ichigo Toyamaeki Nishi Building

Other Regional Cities Toyama City, Toyama

1,650

1,515

8,601.71

98.5%

1,750

6.0%

1,750

6.0%

–

–

Shinagawa-ku, Tokyo© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

51

Portfolio Details (2)as of October 31, 2018
Asset
Type

OfficeNo.

Asset Name

Area

Location

Acquisition
Price(JPY M)

Book Value(JPY M)

Leasable
Area

Occupancy2(m )Oct 2018 Appraisal

Apr 2018 Appraisal

Value(JPY M)

Value(JPY M)

Cap rate

Cap rate

ChangeValue(JPY M)

Cap rate

O-39

Ichigo Mirai Shinkin Building

Other Regional Cities

Oita City, Oita

1,158

1,160

3,551.46

95.4%

1,280

6.1%

1,280

6.1%

–

–

O-42

Ichigo Takamatsu Building

Other Regional Cities

Takamatsu City, Kagawa

3,010

2,402

6,329.33

98.7%

3,440

6.3%

3,390

6.4%

+50

-0.1%

O-46

Ichigo Kanda Nishikicho Building

Central Tokyo

Chiyoda-ku, Tokyo

2,130

2,014

2,523.09

100.0%

2,930

3.9%

2,920

3.9%

+10

–

O-47

Ichigo Akihabara North Building

Central Tokyo

Chiyoda-ku, Tokyo

5,500

5,598

6,250.53

100.0%

6,970

4.5%

6,970

4.5%

–

–

O-48

Ichigo Sakaisuji Honmachi Building

Four Major Cities Osaka City, Osaka

1,940

1,803

3,729.35

100.0%

2,310

4.6%

2,300

4.6%

+10

–

O-49

Ichigo Kanda Ogawamachi Building

Central Tokyo

Chiyoda-ku, Tokyo

2,210

2,191

2,295.57

100.0%

2,460

4.2%

2,450

4.2%

+10

–

O-50

Ichigo Hatchobori Building

Central Tokyo

Chuo-ku, Tokyo

1,905

1,827

2,697.36

100.0%

2,530

4.6%

2,510

4.6%

+20

–

O-51

Ebisu Green GlassCentral Tokyo

Shibuya-ku, Tokyo

5,900

5,839

3,159.27

100.0%

6,710

3.6%

6,740

3.6%

-30

–

O-52

Ichigo Omori Building

Central Tokyo

Shinagawa-ku, Tokyo

3,850

3,799

3,585.92

100.0%

4,220

4.4%

4,190

4.5%

+30

-0.1%

O-53

Ichigo Takadanobaba Building

Central Tokyo

Shinjuku-ku, Tokyo

1,580

1,586

1,606.92

100.0%

1,890

4.1%

1,900

4.1%

-10

–

O-54

Ichigo Omiya Building

Tokyo Metro Area Saitama City, Saitama

3,430

3,637

6,180.68

99.0%

3,990

5.2%

3,850

5.2%

+140

–

O-55

Ichigo Sagamihara Building

Tokyo Metro Area Sagamihara City, Kanagawa

1,174

1,221

2,960.81

100.0%

1,250

5.4%

1,310

5.4%

-60

–

O-56

Ichigo Ofuna Building

Tokyo Metro Area Kamakura City, Kanagawa

2,000

1,953

2,364.71

100.0%

2,410

5.4%

2,410

5.4%

–

–

O-57

Ichigo Sendai East Building

Other Regional Cities

Sendai City, Miyagi

1,840

1,694

5,205.49

97.9%

2,100

5.6%

2,110

5.7%

-10

-0.1%

O-58

Ichigo Kumamoto Building

Other Regional Cities

Kumamoto City, Kumamoto

1,450

1,445

4,507.59

100.0%

1,580

6.0%

1,470

6.0%

+110

–

O-59

Ichigo Jingumae Building

Central Tokyo

Shibuya-ku, Tokyo

7,200

7,407

4,510.04

100.0%

8,040

3.4%

8,030

3.4%

+10

–

O-60

Ichigo Shibuya Dogenzaka Building

Central Tokyo

Shibuya-ku, Tokyo

3,650

3,670

2,789.86

100.0%

5,050

3.5%

4,840

3.6%

+210

-0.1%

O-61

Ichigo Hiroo Building

Central Tokyo

Shibuya-ku, Tokyo

3,960

4,000

3,510.44

100.0%

4,530

3.9%

4,530

3.9%

–

–

O-62

Ichigo Sasazuka Building

Central Tokyo

Shibuya-ku, Tokyo

4,780

4,870

6,425.29

100.0%

5,290

4.1%

5,290

4.1%

–

–

O-63

Ichigo Nihonbashi East Building

Central Tokyo

Chuo-ku, Tokyo

4,700

4,578

4,216.97

100.0%

5,470

4.0%

5,460

4.0%

+10

–

O-64

Ichigo Sakurabashi Building

Central Tokyo

Chuo-ku, Tokyo

2,500

2,563

2,971.22

100.0%

2,880

4.0%

2,790

4.1%

+90

-0.1%

O-65

Ichigo Shinkawa Building

Central Tokyo

Chuo-ku, Tokyo

2,360

2,388

2,312.03

100.0%

2,790

3.9%

2,740

4.0%

+50

-0.1%

O-66

Ichigo Kudan Building

Central Tokyo

Chiyoda-ku, Tokyo

3,190

3,224

3,090.65

100.0%

3,480

4.0%

3,480

4.0%

–

–

O-67

Ichigo Higashi Gotanda Building

Central Tokyo

Shinagawa-ku, Tokyo

3,660

3,663

4,548.10

100.0%

4,280

4.1%

4,270

4.1%

+10

–

O-68

Axior Mita

Central Tokyo

Minato-ku, Tokyo

1,800

1,760

2,369.82

100.0%

2,190

4.0%

2,050

4.1%

+140

-0.1%

O-69

Ichigo Higashi Ikebukuro Building

Tokyo Metro Area Toshima-ku, Tokyo

4,570

4,607

4,472.00

100.0%

5,270

4.1%

5,240

4.1%

+30

–

O-70

Koriyama Big-i (Office Section)

Other Regional Cities

Koriyama City, Fukushima

1,660

1,500

3,433.07

100.0%

1,890

5.1%

1,820

5.2%

+70

-0.1%

O-71

Ichigo Kawasaki Building

Tokyo Metro Area Kawasaki City, Kanagawa

1,750

1,786

3,710.17

100.0%

2,120

4.3%

2,110

4.3%

+10

–

O-72

Ichigo Shibuya East Building

Central Tokyo

1,350

1,351

1,041.36

100.0%

1,530

3.6%

1,510

3.7%

+20

-0.1%

Shibuya-ku, Tokyo© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

52

Portfolio Details (3)as of October 31, 2018
Asset
Type

OfficeNo.

Asset Name

Area

Location

Chuo-ku, Tokyo

Acquisition
Price(JPY M)

Book Value(JPY M)

Leasable
Area
2
(m )

Occupancy

Oct 2018 Appraisal

Apr 2018 Appraisal

Value(JPY M)

Value(JPY M)

Cap rate

Cap rate

ChangeValue(JPY M)

Cap rate

O-73

Ichigo Ningyocho Building

Central Tokyo

1,450

1,486

1,769.09

100.0%

1,570

4.2%

1,560

4.2%

+10

–

O-74

Ichigo Nishi Honmachi Building

Four Major Cities Osaka City, Osaka

2,190

2,149

6,152.00

100.0%

2,380

4.8%

2,380

4.8%

–

–

O-75

Ichigo Hakata Building

Four Major Cities Fukuoka City, Fukuoka

1,380

1,371

2,423.86

100.0%

1,500

4.9%

1,490

4.9%

+10

–

O-76

Ichigo Nishiki First Building

Four Major Cities Nagoya City, Aichi

2,000

1,986

3,324.66

89.7%

2,100

4.6%

2,080

4.6%

+20

–

O-77

Ichigo Ikenohata Building

Tokyo Metro Area Taito-ku, Tokyo

5,130

5,149

5,504.15

100.0%

5,380

4.3%

5,350

4.3%

+30

–

O-78

Ichigo Ikebukuro East Building

Tokyo Metro Area Toshima-ku, Tokyo

3,010

2,987

3,118.69

100.0%

3,240

4.3%

3,240

4.3%

–

–

O-79

Ichigo Motoazabu Building

Central Tokyo

1,890

1,899

1,329.96

100.0%

2,020

3.6%

2,000

3.6%

+20

–

O-80

Ichigo Otsuka Building

Tokyo Metro Area Toshima-ku, Tokyo

2,740

2,723

3,679.70

100.0%

2,940

4.4%

2,940

4.4%

–

–

O-81

Ichigo Nagoya Building

Four Major Cities Nagoya City, Aichi

3,420

3,489

4,930.30

100.0%

3,740

4.5%

3,670

4.5%

+70

–

O-82

Ichigo Fushimi Building

Four Major Cities Nagoya City, Aichi

2,340

2,339

4,155.57

87.9%

2,450

4.7%

2,450

4.7%

–

–

O-83

Ichigo Nishiki Building

Four Major Cities Nagoya City, Aichi

1,330

1,299

2,006.78

100.0%

1,430

4.6%

1,430

4.6%

–

–

Minato-ku, Tokyo

O-84

Ichigo Minami Morimachi Building

Four Major Cities Osaka City, Osaka

1,040

1,014

2,521.51

100.0%

1,130

4.6%

1,130

4.6%

–

–

O-85

Ichigo Shibuya Udagawacho Building

Central Tokyo

Shibuya-ku, Tokyo

3,500

3,602

1,491.48

100.0%

4,050

3.4%

4,050

3.4%

–

–

O-86

Win Gotanda Building

Central Tokyo

Shinagawa-ku, Tokyo

3,100

3,109

3,689.88

100.0%

3,280

4.2%

3,280

4.2%

–

–

O-87

Ichigo Hongo Building

Tokyo Metro Area Bunkyo-ku, Tokyo

2,300

2,303

2,722.58

100.0%

2,390

4.4%

2,380

4.4%

+10

–

O-88

Oimachi Center Building

Central Tokyo

1,680

1,700

2,751.08

100.0%

1,900

4.3%

1,810

4.4%

+90

-0.1%

O-89

Win Gotanda Building 2

Central Tokyo

Shinagawa-ku, Tokyo

3,300

3,318

3,433.16

100.0%

3,490

4.2%

3,480

4.2%

+10

–

O-90

MIF Building

Central Tokyo

Chiyoda-ku, Tokyo

2,200

2,210

1,690.33

88.3%

2,320

4.1%

2,320

4.1%

–

–

Ichigo Uchi Honmachi Building

Four Major Cities Osaka City, Osaka

1,969

2,829.16

96.3%

2,000

4.7%

2,000

4.7%

–

–

183,798 240,956.55

99.1%

212,888+2,108–

O-91

Shinagawa-ku, Tokyo

Subtotal - Office

1,900
185,897© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

210,78053

Portfolio Details (4)as of October 31, 2018
Asset
Type

Other

No.

Asset Name

Area

Acquisition
Price(JPY M)

Location

Shibuya-ku, Tokyo

Book Value(JPY M)

Leasable
Area
2
(m )

Occupancy

Oct 2018 Appraisal

Apr 2018 Appraisal

Value(JPY M)

Value(JPY M)

Cap rate

Cap rate

ChangeValue(JPY M)

Cap rate

Z-02

Ichigo Fiesta Shibuya Building

Central Tokyo

Z-05

Ichigo Machida East Building

Tokyo Metro Area Machida City, Tokyo

1,970

1,963

1,185.85

100.0%

2,210

4.0%

2,200

4.0%

+10

1,310

1,272

2,183.65

100.0%

1,550

4.9%

1,550

4.9%

–

Z-09

Konami Sports Club Izumi Fuchu

Other Regional Cities

Izumi City, Osaka

Z-10

Ichigo Shibuya Bunkamura Dori Building

Central Tokyo

Shibuya-ku, Tokyo

2,400

2,464

778.77100.0%

3,220

3.2%

Z-11

Twicere Yokohama Isogo (Retail Section)

Tokyo Metro Area Yokohama City, Kanagawa

1,620

1,518

2,717.77

100.0%

1,880

5.2%

Z-12

Lions Square Kawaguchi

Tokyo Metro Area Kawaguchi City, Saitama

2,430

2,376

7,788.09

100.0%

2,710

4.5%

Z-13

Ichigo Shin Yokohama Arena Dori Building

Tokyo Metro Area Yokohama City, Kanagawa

1,700

1,679

1,971.34

100.0%

1,780

Z-14

Ichigo Kamata Building

Tokyo Metro Area Ota-ku, Tokyo

1,400

1,447

2,124.68

100.0%

1,520

Subtotal - Other

14,04013,81922,483.83

100.0%

16,31016,120+190

Total (85 Assets)

199,937

197,617 263,440.38

99.2%

229,198

226,900+2,298

–
–

1,210

1,095

3,733.68

100.0%

1,440

5.7%

1,440

5.7%

–

–

3,070

3.3%

+150

-0.1%

1,880

5.2%

–

–

2,680

4.5%

+30

–

5.0%

1,780

5.0%

–

–

4.6%

1,520

4.6%

–

–

Reference: Assets to be Acquired in the April 2019 Period
Asset
Type

OfficeNo.

Asset Name

Area

Acquisition
Price(JPY M)

Location

O-92

Ichigo Minami Otsuka Building

Tokyo Metro Area Toshima-ku, Tokyo

O-93

Ichigo Nogizaka Building

Central Tokyo

AcquisitionDate

2,780 Dec 21, 2018

Minato-ku, Tokyo

Leasable
Area
2
(m )

Appraisal at Acquisition
Occupancy

Value(JPY M)

Cap rate

3,127.84

100.0%

3,080

4.0%

100.0%

3,510

3.5%

3,315 Dec 28, 2018

2,175.88

Subtotal

6,095

5,303.72

85 Assets Held on October 31, 2018 + New Acquisition 2 Assets - Sale 2 Assets = Total 85 Assets

203,022

264,589.11

6,590
99.2%

232,458

Leasable Area and Occupancy are provisionally calculated using data of assets held as of October 31, 2018 and assets acquired in
the April 2019 period.
© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

54

Appendix: About Ichigo Office© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

55

Specialized Office REIT
Specialized Office REIT Focusing on Mid-Size Offices, an Asset Class that
Offers Both Return Stability and Upside Potential
 Mid-size office characteristics‒ Stable cashflows supporting earnings‒ Upside earnings potential in economic upturns‒ Value-add potential due to relatively inefficient market

 Portfolio focused on Tokyo Metropolitan Area
 Driving accretive growth via value-add capex and hands-on asset management© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

56

95% Office & 80% Tokyo Metropolitan Area Portfolio
as of December 28, 2018
No. of Assets
Total Acquisition PriceAppraisal Value
Leasable Area
Occupancy

85 Assets
JPY 203.02B
JPY 232.46B
264,589m2
99.2%

By Asset Type

Other
5%

Map Key
Location
Acquisition Price (JPY billion)% of Portfolio

Tokyo
Metro
Area
162.0
80%

Sendai1.8
1%Nagoya20.5
10%
Fukuoka
1.3
1%Office95%

By Size<JPY 1B
3%

Kansai
8.2
4%

JPY 1B-2B
28%
Other
8.9
4%

>JPY 3B50%
JPY 2B-3B
19%© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

57

Highly Diversified Tenant Mix
as of October 31, 2018

Tenant Profiles by Industry

Total Number of Tenants: 922(based on No. of tenants)

Share of Top 10 Tenants
Education2%
Construction
3%
Real Estate4%
Restaurant/
Hotel
4%

12.3% by Leased Area
14.2% by Rental Income

Other
6%

Service28%

Top 10 Tenants by Leased Area

Finance
5%

Asset Name

Manufacturing
14%
IT
15%

Retail19%* Service: Primarily advertising, consulting, HR, accounting, legal,
beauty-related, and public entities.

Industry

Leased Area
(m 2)

Share

1

Ichigo Akihabara North Building

Manufacturing

6,250

2.4%

2

Lions Square Kawaguchi

Supermarket

4,263

1.7%

3

Ichigo Sasazuka Building

Telecommunication

3,827

1.5%

4

Konami Sports Club Izumi Fuchu

Sports Club

3,733

1.5%

5

Ebisu Green Glass

Telecommunication

2,863

1.1%

6

Ichigo Ikebukuro East Building

Service

2,427

0.9%

7

Ichigo Hiroo Building

Retail

2,417

0.9%

8

Ichigo Jingumae Building

Telecommunication

2,146

0.8%

9

Ichigo Toyamaeki Nishi Building/
Ichigo Takamatsu Building

Manufacturing

1,846

0.7%

10

Ichigo Kamata Building

Retail

1,820

0.7%

31,597

12.3%© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Total

58

Growth via Serving Tenants & Shareholders(JPY B)

(JPY)

250

2,500
Total Assets (JPY B)

Dividend (JPY)
1,904

200

1,387

150

1,494

1,537

1,541

1,547

1,706

1,740

165.6

162.7

191.0

1,923
189.8

1,930
196.9

1,964
192.5

2,014
199.9

2,000

1,603

1,500

1,219
123.3

1,031*

100

107.9

104.8

106.1

112.3

114.3

114.0

1,000

104.3

50

500

0

0
October
April
October
April
October
April
October
April
October
April
October
April
October
April
October
2011
2012
2012
2013
2013
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
(71 assets) (67 assets) (67 assets) (66 assets) (68 assets) (71 assets) (70 assets) (65 assets) (77 assets) (73 assets) (85 assets) (82 assets) (85 assets) (82 assets) (85 assets)

EventsMergerComprehensive
Accretive PO Accretive PO
Refinancing

Accretive PO Accretive PO
Transition toStrategic
Restructuring Pure Office
REIT

Accretive PO

Strategic
Restructuring

Bond
Issuance

Strategic
JCR Credit
Restructuring Rating A
Bond
Issuance

JCR Credit
Rating A-* October 2011 dividend adjusted to reflect 7:1 stock split on
November 1, 2011

DeCollateralizationof All Loans© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

59

External Growth− Total Asset Acquisitions: JPY 142.7B− 56.2% Via Sponsor Support (JPY 80.2B)
Acquisitions and Sales Since October 2013 (Cumulative, JPY B)■ Acquisition from Sponsor■ Sale to Sponsor■ Acquisition from Third Party■ Sale to Third Party

56.3

62.4
(43.8%)

67.6

74.7

80.2

80.2
(56.2%)

-19.3

-19.3

-23.8

-23.8

-23.8

-79

-123

-12.3

-18.3

-21.9

~ Oct 2015

~ Oct 2016

~ Oct 2017~ Oct 2018

~ Apr 2019
(Forecast)

54.4

50.9
50.9

4.3
8.6
-0.8

38.4

12.4
-7.4

Oct 2013~ Oct 2014

Jun 2013
Initial Public
Offering(Post-merger)

Dec 2013
Public Offering

Dec 2018
Apr&May 2018
Nov 2016
Apr&May 2016
Dec 2014
Public Offering
Public Offering Acquisition from Acquisition&Sale Acquisition&Sale
Third Party
Acquisition&Sale Acquisition&Sale
Sep 2018
Apr&May 2017 Acquisition fromMay 2015
Third Party
Acquisition&Sale
Public Offering
Sept 2015
Transition to
Pure Office REIT

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

60

Tailored Ichigo Tenant Services & Hospitality
Tailored Tenant Services to Increase Tenant Satisfaction− Tenant services focus on increasing tenant safety and comfort via Ichigo
Property Management Standard− Conduct regular tenant satisfaction surveys to reflect feedback in tenant
services
August 2018 Survey Overview
Respondents

Tenant General
Affairs Personnel

No. ofDistributed
Surveys913

No. ofAssets84

No. ofResponses

638 (69.9%)

Overall Satisfaction – Building Quality & Functionality

Satisfied
18%

Somewhat Satisfied
55%

Somewhat
Dissatisfied 10%

Dissatisfied
2%
Tenant Feedback(Plumbing, HVAC,
Elevator Improvements)

Neither
Satisfied nor
Dissatisfied
16%

Overall Satisfaction – Tenant Services
Satisfied33%

Somewhat Satisfied
48%

Neither
Satisfied nor
Dissatisfied
14%

Dissatisfied
1%

Somewhat
Dissatisfied 4%© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

61

Ichigo Branding: Safety, Quality, Design, Tenant Service
Improve the safety, quality, and design of assets via Ichigo’s
architectural and engineering capabilities to support high tenantsatisfaction© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

62

Japanese Mid-Size Office Investment Attractiveness (1)Rich Pool of REITable Assets
 90%+ of Japanese real estate = mid-size High liquidity

Breakdown of Buildings by Floor Area (m²)
< 500

2,000 to 5,000

1,000 to 2,000

5,000 to 10,000>10,000

Mid-Size Real Estate：94%

Broad and Deep Tenant Base
 96% of all companies have 50 employees or less
 Diverse sectors & industries

500 to 1,000

43%

25%

15%

10
%

4%
3%

Source: Ministry of Land, Infrastructure, Transportation andTourism (2013)

Largely Untapped by Professional Management
 High ownership by individuals and “passive owner” corporations

results in inadequate building maintenance Lacking professional building and management specifications
Breakdown of Companies by Number of Employees

Abundant Opportunities for Large-Scale Improvements Increase safety via seismic reinforcement
 Increase tenant satisfaction via value-add capex<5

6 to 20

21 to 50

> 51

% of Companies Suited to Mid-Size Assets：96%
64%

25%

7
4%
%

Source: Small and Medium Enterprise Agency (2016)

Significant Value-Add Potential© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

63

Japanese Mid-Size Office Investment Attractiveness (2)Mid-Size Office Rents More Stable than Larger-Size Office Rents
Office Rent Trends in 5 Central Tokyo Wards (Chiyoda, Chuo, Minato, Shinjuku & Shibuya Wards)
JPY per Tsubo (3.3m2)

60,00050,00040,000

Grade A

30,000

Grade A-

20,000

Grade B
10,000

0
2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Source: CBRE
Grade A refers to buildings in the 5 central wards of Tokyo (Chiyoda, Chuo, Minato, Shinjuku, and Shibuya) built no more than 11 years ago (therefore meetingcurrent seismic resistance requirements), with leasable area of 21,450 square meters and total floor area of 33,000 square meters.
Grade A- and Grade B refers to buildings located in any of the 23 wards in Tokyo with leasable area of 14,850 square meters and total floor area of 23,100 square
meters and leasable area of 660 square meters and total floor area of 6,600 to 23,100 square meters, respectively, and meeting current seismic resistancerequirements.
© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

64

Reference: AM Fee Structure
AM Fee Structure with High Shareholder Alignment
AM Fee I

Total Assets x 0.25%
a. Recurring Cash Flow Basis

AM Fee II(a + b)

Period-End Recurring Cash Flow x 2.0%
b. Total Dividend Basis
Each Fiscal Period’s Dividend x 2.0%

Asset Acquisition Fee

Acquisition Price x 0.5% (0.25% if acquiring from interested party)

Asset Sale Fee

Sale Price x 0.5% (0.25% if selling to interested party)
a. If Cash Flow per Share (CF per Share) increases for six consecutive periods and CF per
Share of the period when fee is calculated increased from the previous period

Performance Fee(a or b)(CF per Share of Current Period – CF per Share of Previous Period) x Total Number of
Shares Issued and Outstanding x 30%
b. If CF per Share is Above the Simple Average of CF per Share of the Latest Six Periods(CF per Share of Current Period – Simple Average of CF per Share of the Latest Six
Consecutive Periods) x Total Number of Shares Issued and Outstanding x 30%

Merger Fee

Valuation of Real Estate or Real Estate Bonds Succeeded Upon Merger x 0.5%

* CF per Share = Recurring Profit/Loss in Income Statement + Depreciation + Accrued Asset Depreciation + Gain on Sale of Assets+ Valuation Profit/Loss (Excluding Extraordinary Profit/Loss)
Please refer to “Fees Paid to the Asset Management Company (Articles of Incorporation Article 38 and Attachments)”
in Ichigo Office’s Annual Report (Japanese only) for details.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

65

Ichigo Office’s Sponsor: Ichigo (2337)
Core Businesses: Asset Management, Real Estate Value-Add, Clean Energy‒ Manages Ichigo Office (8975), Ichigo Hotel (3463), and Ichigo Green (9282)‒ TSE First Section, JPX-Nikkei 400 Member‒ Deeply committed to CSR and Sustainability – Japan’s first zero-carbon listed realestate company
Key Ichigo Subsidiaries
Ichigo(TSE First Section 2337)

Ichigo Preserves andImproves Real Estate

The word “Ichigo” comes from the ancient Japanese
proverb, Ichigo Ichie, literally meaning “One lifetime,
one encounter.” The phrase was first used by a 16th
century master of the tea ceremony, Sen no Rikyu.
He called upon his disciples to give total focus andsincerity to each act of the tea ceremony for every
guest, because that particular moment will only exist
once and must be fully lived and realized.
Ichigo embraces the Ichigo Ichie philosophy ofsincerity and service, and works to build strong longterm relationships to support the success of ourclients, shareholders, and all stakeholders.

Ichigo Investment Advisors

Asset manager of Ichigo Office (8975), Ichigo Hotel (3463), and Ichigo
Green (9282)

Ichigo Estate

Real estate value-add

Ichigo ECO Energy

Clean energy business focusing on utility-scale solar power production,
making purposeful use of unused land nationwide

Ichigo Owners

Real estate owner services

Ichigo Land Shinchiku

Real estate value-add

Ichigo Real Estate Services Fukuoka

Real estate business centered on Fukuoka in the Kyushu region

Ichigo Marché

Operates Matsudo Nanbu wholesale market in Chiba Prefecture

Miyako City

Operates Miyako City shopping mall in Miyazaki Prefecture

CentroNew real estate-related businesses

Storage Plus

High-grade self storage

TenutoSmart Agriculture technology© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

66

Sponsor/Asset Manager/REIT Relationship

Sponsor

Ichigo (TSE First Section 2337)
100% Subsidiary

Sponsor Support
Value-Add Capabilities

Asset Manager

Ichigo Investment Advisors

Financial Support(Asset Warehousing)

Asset Management

TSE-Listed
Investment
Corporations

Ichigo Office(8975)

 Specializes in mid-size offices

Ichigo Hotel(3463)

 Specializes in hotels

Ichigo Green(9282) Solar power YieldCo

 Focused on the Tokyo Metropolitan Area
 85 assets, JPY 199.9B (as of November 30, 2018)

 Listed in November 2015 21 hotels, JPY 50.7B (as of November 30, 2018)

 Listed in December 2016 15 solar plants, JPY 11.4B (as of November 30, 2018)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

67

Share Price (Nov 1, 2011 to Oct 31, 2018)(JPY)
120,000
Trading Volume

100,000(Shares Traded)

Public Offering
JPY 83,167
Dec 3, 2014

Ichigo Office

TSE REIT Index

50,000Public Offering
JPY 89,212
May 1, 2015

Post-Merger High (closing): JPY 101,000 (Jan 15, 2015)
Post-Merger Low (closing): JPY 25,310 (Nov 22, 2011)
October 2018 Period Average Daily Volume ： 3,263 shares

Public Offering
JPY 79,365
May 23, 2016

* as of October 31, 2018
Public Offering
JPY 60,157
Dec 3, 2013

Public Offering
JPY 62,595
May 27, 2013

80,00040,00030,00060,000MergerJPY 33,500 (closing)Nov 1, 2011

20,00040,00010,00020,000

0

0

2011

2012

2013

2014

2015

2016

2017

2018

Source: Bloomberg© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

68

Shareholder Composition
as of October 31, 2018

Major Shareholders

Shareholdings by Shareholder Type

1 Ichigo Trust Pte. Ltd.

Share

344,190

22.5%

2

The Master Trust Bank of Japan,
Trust Account267,236

17.4%

3

Japan Trustee Services Bank, Ltd.,
Trust Account155,875

10.2%

4 NOMURA BANK (LUXEMBOURG) S.A.

77,951

5.1%

5 Morgan Stanley MUFG Securities Co., Ltd.

57,972

3.8%

6 BCSL MARGIN TRADING A/C

56,500

3.7%

7

Trust & Custody Service Bank, Ltd.,
Securities Investment Trust Account52,240

3.4%

8

The Nomura Trust and Banking Co., Ltd.,
Investment Trust Account48,671

3.2%

Non-Financial Domestic Corporations

Domestic Financial Institutions

Domestic Individuals

708,413 shares(46.2%)

761,455 shares(49.7%)

18,307 shares(1.2%)

22,792 shares(1.5%)

750,247 shares(49.0%)

15,866 shares(1.0%)

565,583 shares(36.9%)

641,107 shares(41.8%)

182,457 shares(11.9%)

164,460 shares(10.7%)

134,013 shares(8.7%)

Oct 31, 2017
(1,532,287 shares)

Apr 30, 2018
(1,532,287 shares) *Oct 31, 2018
(1,532,287 shares) *632,161 shares(41.3%)* Number of Shares Outstanding

Shareholders by Shareholder Type

9 GOLDMAN SACHS INTERNATIONAL

10

Foreign Corporations & Individuals*

No. ofSharesName

STATE STREET BANK AND TRUST COMPANY
505012
Total

34,653

2.3%

20,963

1.4%

1,116,251

72.8%

Domestic Individuals
Domestic Financial Institutions
City banks, trust banks
Regional banks
Other (including securities companies)
Non-Financial Domestic Corporations
Foreign Corporations & Individuals
Total© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Oct 31, 2018
Oct 31, 2017
Apr 30, 2018
Shareholders Shareholders Shareholders Share
17,861
16,532
14,262
97.0%
61
60
55
0.4%
10
10
10
0.1%
8
8
9
0.1%
43
42
36
0.2%
261
247
214
1.5%
145
155
174
1.2%
18,32816,994
14,705100.0%

69

Ichigo Office Overview
Investment Corporation

as of October 31, 2018

Name

Ichigo Office REIT Investment Corporation

Securities Code8975

Address

1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo

Executive Director

Yoshihiro Takatsuka

Portfolio Assets

85 Assets

Portfolio Value

JPY 199.9B (based on acquisition price)

Fiscal Periods (Semi-Annual)November – April; May – OctoberAsset Management Company
Name

Ichigo Investment Advisors Co., Ltd.

President

Wataru Orii

Registration & Membership

Financial Instruments Dealer License (Investment Management Services,
Investment Advisory & Agency Services, and Type II Financial Instruments
Services): Minister of Finance, Kanto Financial Bureau #318

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

70

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 Office REIT Investment Corporation (“Ichigo Office”).
These materials may contain forward-looking statements regarding the intent, belief or current expectations of management of
Ichigo Office with respect to financial condition and future results of operations. These statements are based on certain
assumptions founded on currently available information. Accordingly, such statements are subject 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 Office and Ichigo Investment Advisors Co., Ltd. (IIA) with thebelief 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 priornotice.
This document is a translation. If there is any discrepancy between the Japanese version and the English translation, theJapanese version shall prevail. No copying or reproduction of these materials or part of these materials is allowed withoutobtaining prior consent from Ichigo Office and IIA.

Ichigo Office REIT IR Desk
TEL：03-3502-4891
IR_Office@ichigo.gr.jp
www.ichigo-office.co.jp/english
Ichigo is Japan’s first zero-carbon listed real estate company. We are taking
responsibility for our environmental footprint by offsetting our carbon emissions
and investing in low-carbon technologies such as solar energy.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

71