Ichigo Preserves and Improves Real Estate[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.

December 26, 2018
IssuerIchigo Office REIT Investment Corporation (“Ichigo Office,” 8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-office.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, PresidentInquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4891

New Loan and Interest Rate Swap
Ichigo Office decided today to borrow funds via a new loan (“Term Loan XVII”) andenter into an interest rate swap to lock-in the interest rate on the loan.
1. Reason for New Loan and Interest Rate Swap
The new loan will be used to acquire the Ichigo Nogizaka Building, as announced in theDecember 14, 2018 release “Acquisition of Two Office Assets and Sale of Two NonOffice Assets.”
Ichigo Office is fixing the interest rate on the new loan via a swap in order to hedge
against any future rise in interest rates.
2. Loan and Interest Rate Swap Details
Term Loan XVII
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized
1

SMBC, Mizuho Bank, Shinsei Bank, MUFG Bank,Development Bank of JapanJPY 1.6 billion
Asset acquisition and related costs
December 28, 2018
April 30, 2026 (7.3 year loan term)
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.65% (p.a.)1
Final day of each month following the Loan Date(the first payment date will be January 31, 2019 andthe last payment date will be the same as thePrincipal Repayment Date)
NoThe swap will fix the interest rate for Term Loan XVII at 0.85000%. However, theinterest rate for the payment on the first payment date (from December 28, 2018
through January 31, 2019) will be 0.71273%.

1

Swap Details
Counterparty
Contract Date
Fixed Interest Rate

Mizuho Bank
December 26, 2018
0.85000%

Notes:The base rate for the loans will be JPY TIBOR as published by the Japanese Bankers
Association (JBA) two business days before each interest payment date. For current JPY
TIBOR rates, please visit the JBA’s website: www.jbatibor.or.jp/english/rate
In the event the interest payment date is not a business day, payment shall be made on theprevious business day.
3. Earnings Outlook
The impact of the new loan and interest rate swap on Ichigo Office’s April 2019 andOctober 2019 fiscal period earnings has already been reflected in the forecasts presented inIchigo Office’s December 14, 2018 release “October 2018 Fiscal Period Earnings.”
4. OtherRisks related to the loan have no material impact on the “Investment Risks” described in
the latest Financial Report submitted July 26, 2018.

2

Reference: Loan and Bond Composition after New Loan
Outstanding Loan and Bond Balance(JPY million)
BeforeNew Loan(A)After
New Loan(B)Change(B) - (A)Short-term bank loans–––

Long-term bank loans(due within one year)

12,875

12,875–Long-term bank loans

90,92392,523+1,600Total bank loans

103,798

105,398+1,6003,200

3,200–

106,998

108,598+1,600

Other interest-bearing liabilities–––

Total interest-bearing liabilities

106,998

108,598+1,600

Bonds
Total bank loans and bonds

3

Distribution of Loan and Bond Maturities
Before New Loan
■ Bank Loans (Floating Rate)
10,233
9,574■ Bank Loans (Fixed Rate)
9,639

9,629

9,633

■ Bonds(JPY million)

9,623

8,814
7,263

6,554

6,346

1,000
4,600

7,859
3,000

6,370

4,266
2,900

2,380

4,954

2,000

Apr
2019

892

955

Oct
2019

Apr
2020

900
Oct
2020

Apr
2021

Oct
2021

Apr2022

Oct2022

Apr2023

Oct2023

Apr2024

1,200

1,000

Oct
2027

Apr
2028

600Oct2024

Apr2025

Oct2025

Apr2026

Oct2026

Apr2027

After New Loan
■ Bank Loans (Floating Rate)
9,574

10,233■ Bank Loans (Fixed Rate)
9,639

9,629

9,633

■ New Loan

■ Bonds(JPY million)

9,623

8,814

8,154

7,263

1,600

6,346

1,000
4,600

7,859
3,000

4,266

6,370
2,900

2,380

4,954

2,000

Apr
2019

892

955

Oct
2019

Apr
2020

900
Oct
2020

Apr
2021

Oct
2021

Apr2022

Oct
2022

Apr
2023

Oct
2023

4

Apr
2024

1,200

1,000

Oct2027

Apr2028

600
Oct
2024

Apr2025

Oct2025

Apr2026

Oct2026

Apr
2027