Make The World
More Sustainable[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

September 22, 2023
IssuerIchigo Office REIT Investment Corporation (“Ichigo Office,” 8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Keisuke Chiba, Executive Director
www.ichigo-office.co.jp/en
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Hiroshi Iwai, President
Inquiries: Yuji Kamo, Head of Ichigo OfficeTel: +81-3-3502-4891

Earnings Forecast Revision for the October 2023 Fiscal Period
Ichigo Office is revising its October 2023 fiscal period earnings forecast announced
in the June 14, 2023 release “April 2023 Fiscal Period Earnings.”
1. October 2023 Earnings Forecast Revision(JPY million)
Dividend
in ExcessofEarnings(JPY)

Operating
Revenue

Operating
ProfitRecurring
ProfitNet
IncomeDividendper Share(JPY)Previous Forecast (A)

8,258

3,727

2,945

2,944

2,015–New Forecast (B)

8,137

3,880

3,098

3,097

2,116–Difference (B) - (A)-121+153+153+153+101–% Change

-1.5%

+4.1%

+5.2%

+5.2%

+5.0%

–Net Income per Share: JPY 2,046 (1,513,367 shares outstanding at period-end)
Note: The forecasts presented above are based on the preconditions set out below in“Preconditions for the October 2023 Earnings Forecast.” The actual operating revenue,operating profit, recurring profit, net income, and dividend may vary due to changes incircumstances. These forecasts should therefore not be construed as a guarantee of such
results. Ichigo Office will revise the forecast should a substantial discrepancy emerge
between the forecast and actual operating results.
2. October 2023 Earnings Forecast Revision Rationale
Ichigo Office is revising its earnings forecast to reflect the impact of the planned
October 30, 2023 sale of the Twicere Yokohama Isogo (Retail Section) announced intoday’s release “Sale of Retail Asset (Twicere Yokohama Isogo).” Ichigo Office expects
to record gains on sale of c. JPY 112 million in the October 2023 fiscal period, which
will be distributed as dividends to shareholders.
1In addition, Ichigo Office has been transitioning its electricity contracts to market pricelinked contracts because of the recent increase in gas prices, and its tenant electricity
billing method from a fixed cost basis to a variable cost basis. Although the previous
October 2023 earnings forecast is based on electricity prices at the time of the forecast,utility income and utility expenses are expected to be lower than the forecast given thatelectricity prices have been stable at lower-than-forecast levels.
Furthermore, due to the approval of Proposal 1: Amendment to the Articles ofIncorporation (Reduce NOI & Dividend Performance Fee) at the Fourteenth
Shareholder Meeting held on June 23, 2023, the NOI & Dividend Performance Fee rateof the asset management fees paid by Ichigo Office to its asset management company,
Ichigo Investment Advisors, was reduced to 0.0048% from 0.0054%, and therefore, theOctober 2023 NOI & Dividend Performance Fee is expected to be lower than theprevious forecast.
Although October 2023 operating revenue is forecast to be slightly lower than theprevious forecast, the dividend is forecast to increase by JPY 101 (+5.0%).
There is no change to the April 2024 fiscal period earnings forecast.
(Note 1) Utility income (Operating Revenue) refers to the amount billed to the tenant byIchigo Office based on the monthly electricity usage of each tenant space. Utility
expenses (Operating Expenses) refers to the amount billed to Ichigo Office by the utility
company based on monthly electricity usage for each asset, to which Ichigo Office adds
a fixed percentage to the amount billed by the electric company as administrative costs
to calculate the amount billed to the tenant.
(Note 2) The NOI & Dividend Performance Fee is calculated as follows.
Before Change

DPS (before deduction of NOI & Dividend Performance Fee) x NOI
x 0.0054%

After Change

DPS (before deduction of NOI & Dividend Performance Fee) x NOI
x 0.0048%

NOI is equal to the total rental income recorded during the applicable fiscal period
minus the rental expenses (excluding Depreciation and Losses on Disposal of FixedAssets)2

Preconditions for the October 2023 Earnings Forecast
Period October 2023: May 1, 2023 – October 31, 2023 (184 days)

Number ofAssets 88 assets; 87 assets after the sale of the Twicere Yokohama Isogo (Retail Section)
on October 30, 2023

Number ofShares 1,513,367 shares issued and outstanding as of the date of this report

OperatingRevenue Rental income is calculated conservatively based on lease contracts that are in effectas of today while taking into consideration such factors as historical rents, thecompetitiveness of the properties, and market conditions.
 Utility income: JPY 757 million
 Total occupancy: 96.5% as of October 31, 2023
 Gain on sale of the Twicere Yokohama Isogo (Retail Section): JPY 112 million (Anestimate calculated as the Sale Price minus Book Value, Brokerage Fees, Ichigo
Investment Advisor’s Performance Fee, and other transaction expenses)

OperatingExpenses• Depreciation: JPY 961 million. Depreciation has been calculated using the straightline method and includes the depreciation of forecast future capital expenditures.
• Utilities expenses: JPY 770 million• Property, city planning, and depreciable asset taxes: JPY 731 million. Prorated
property and city planning taxes related to acquisitions are included in acquisition
cost.
• Building maintenance and repair expenses: JPY 116 million. However, expenses
may differ significantly from these estimated amounts for reasons including thevariability of maintenance and repair expenses, one-time costs due to unexpectedbuilding damage, etc.
• Service provider expenses, including property management fees: JPY 703 million• Performance fees: JPY 670 million.
• Rental expenses, Ichigo Office’s principal operating expenses (other thandepreciation, see above), are calculated based on historical data adjusted for anyanticipated changes.
• Actual operating expenses may differ significantly from these assumptions due tounforeseeable factors.

Non-OperatingExpenses• Interest expenses on loans and bonds: JPY 498 million• Other borrowing-related expenses: JPY 279 million

Interest-Bearing
Liabilities• Loans and bonds: JPY 114,907 million outstanding as of October 31, 2023

Dividend The dividend forecast assumes that dividends will comply with the dividend
distribution policy stipulated in Ichigo Office’s Articles of Incorporation.
 Total dividends for the October 2023 period are forecast to be JPY 3,203 million(unappropriated retained earnings (i.e., Net Income) of JPY 3,098 million plus JPY
105 million of negative goodwill amortization, subject to J-REIT conduitrequirements).
 The dividend is subject to change due to changes in circumstances such as asset
acquisitions and dispositions, tenant turnover, unexpected maintenance and repair
costs and other expenses, changes in interest rates, and the issuance of new shares.

Dividend in
Excess ofEarnings

 Ichigo Office does not plan on paying any dividend in excess of earnings.

3Other This forecast assumes that there are no material revisions to laws and regulations,the tax system, accounting standards, listing rules of the Tokyo Stock Exchange,and rules of the Investment Trusts Association, Japan, and no material changes inthe state of the economy and real estate market conditions.

4