目次

Presentation Material
4th Fiscal Period(Ended June 30, 2018)

marimo Regional Revitalization REIT, Inc.

(Securities Code: 3470)
1

01First Public Offering
Since Listing2

Summary of 1st Public Offering

Summary of Offering and Change in Investment Unit Price
Steady increase in the investment unit priceand implementation of the first public offering since listing
December 5, 2017(%)

Type ofoffering
Total
amount ofoffering
Number of
newly
issuedinvestment
units
Issue pricePrimary offering andthird-party allotment
Primary offering:
Third-party allotment:

Total:

4,142 million yen
196 million yen
4,338 million yen

150.0

NAV per unit: 119,105 yen

140.0

Issue price at PO: 109,005 yenPrimary offering:
Third-party allotment:

Total:

39,500 units
1,872 units
41,372 units

Issuance resolution date
January 4, 2018
111,300 yen
End of 4th FP

130.0

114,300 yen
Comparison with the price atlisting

120.0

Pricing date
January 15, 2018
111,800 yen

Issue price at IPO: 92,000 yen

109,005 yen
110.0

Issuance
resolution
dateHighest price:120,100 yen
Comparison with the price at listing:+47.4％+40.2％

BPS: 91,266 yen

At listing
81,500 yen

January 4, 2018
100.0

Pricing date

January 15, 2018

Subscription
periodJanuary 16 toJanuary 17, 2018

90.0

Deliverydate~~

At listing
REIT Index:
1869.32

End of 4th FP
REIT Index:

1764.6480.0
marimo Regional

January 23, 2018

Revitalization REIT
マリモ地方創生リート
End of July
2016

End of December
2016

End of June
2017

Comparison with the index at listing:
TSE REIT index
東証REIT指数-5.6％

End of December
2017(1) The TSE REIT index is indexed to the closing price of the investment unit price of July 29, 2016 (the listing date). NAV per unit and BPS (net assets per unit) are as of the end of the 2nd FP (June 30, 2017).
(2) NAV per unit is calculated with the following formula: (Net assets – Total dividends + Unrealized gain) / Number of investment units issued and outstanding. The same applies hereafter.
(3) Acquisition price is the transaction price of each property (not including consumption tax, regional consumption tax, transaction fees or other expenses) rounded down to the nearest million yen. The same applies hereafter.

End of June
20183

Summary of 1st Public Offering

Summary of Newly Acquired Assets
Secured profitability and stability through regional investment centering on properties developed and owned by the sponsors
Number of properties

Total acquisition priceTotal appraisal value at acquisition

7 properties

7.70 billion yen

8.416 billion yen

Average building age

Average appraisal NOI yield

Average appraisal NOI yield after depreciation

8.9 years

6.2%

5.0%

Newly acquired asset

Location

ArtizA Kamimaezu II

Naka Ward,
Nagoya City, Aichi

ArtizA Chiyoda

Naka Ward,
Nagoya City, Aichi
Chuo Ward,
Kumamoto City,
Kumamoto
Sasebo City,
Nagasaki

MRR Itoshima

Building
exterior

Acquisition Appraisal value
at acquisition
price(million yen) (million yen)Appraisal
NOI yield(%)

Acquisition
channel

720

761

5.3

Developed bysponsor

980

1,070

5.3

Developed bysponsor

2,120

2,280

6.8 Warehousing

990

1,260

7.4 Warehousing

Itoshima City,
Fukuoka

900

970

6.0 Warehousing

MRR Akita

Akita City, Akita

840

875

6.7 Warehousing

Supercenter TRIAL Togitsu
Store (land ownership interests)

Togitsu Town, NishiSonogi County,
Nagasaki

1,150

1,200

5.0 Warehousing

MRR Kumamoto
MRR Sasebo

Preferential Negotiation Rights for Sales Transactions(1) Average building age is the weighted average of the building ages as of October 31, 2017 by acquisition price. Similar calculation methods are used hereafter (however, the reference date for building age is indicated separately for each).
(2) (Average) appraisal NOI yield refers to the ratio of (total) net operating income based on the direct capitalization method indicated in the real estate appraisal report (appraisal NOI) against the (total) acquisition price. The same applies hereafter.
(3) (Average) appraisal NOI yield after depreciation refers to the ratio of the amount in which the total of actual or expected depreciation of all assets is deducted from (total) appraisal NOI against (total) acquisition price. The same applies hereafter.
(4) Acquisition price is the transaction price of each property (not including consumption tax, regional consumption tax, transaction fees or other expenses) rounded down to the nearest million yen. The same applies hereafter.
(5) Appraisal value at acquisition refers to the appraisal value indicated in each of the real estate appraisal reports dated October 31, 2017.
(6) ACTY Kumamoto changed its name to MRR Kumamoto on June 1, 2018 with an aim to establish a brand image of marimo REIT.

4

Highlights of Acquired Properties■ MRR Kumamoto
Location

1-9-25 Minamikumamoto, Chuo Ward,
Kumamoto City, Kumamoto

Acquisition price

2,120 million yen

Appraisal value

2,300 million yen

Appraisal NOI yield

6.7%

Constructed

Commercial building, etc.: October 2008
Parking lot building: January 1986

No. of parking spaces

259◆ Renaissance (listed on TSE 1st section)

Marimo’s for-sale condominium(under construction)

The Kumamoto Gardens

Kumamoto Castle
Kumamoto-jō Shiyakushomae
StationKumamoto
City Hall●

TaikouBridgeKarashimacho Station
Gofukumachi Station

Kumamoto
University Hospital

Yotsugi Bridge
Choroku Bridge
Kumamoto
StationRight axis: Operating income (million yen)

Left axis: Sales (million yen)

50,00040,00030,00020,00010,0000

Fiscal 2011

Fiscal 2013

Fiscal 2015

Fiscal 2017

◆ Don Quijote (its parent company, Don Quijote Holdings Co., Ltd., is listed on TSE 1st
section)
10,000
8,000
6,000
4,000
2,000
0

Left axis: Sales (100 million yen)

Right axis: Operating income (100 million yen)

500
400
300
200
100
0

2008年度
2009年度
2010年度
2011年度
2012年度
2013年度
2014年度
2015年度
2016年度
2017年度Fiscal
2008
Fiscal
2010
Fiscal
2012
Fiscal
2014
Fiscal2016

Fiscal 2009

Shin-Suizenji Station

Gionbashi Station

5,000
4,000
3,000
2,000
1,000
0

2008年度
2009年度
2010年度
2011年度
2012年度
2013年度
2014年度
2015年度
2016年度
2017年度Fiscal
2008
Fiscal
2010
Fiscal
2012
Fiscal
2014
Fiscal2016

Fiscal 2009

Kumamoto Castle
Park

Residential
property:
44 units

Main tenant

Fiscal 2011

Fiscal 2013

Fiscal 2015

Fiscal 2017

(Note) The sales and operating income of Don Quijote Holdings Co., Ltd. is indicated.

●
Sports club (Renaissance)

Shirakawa Bridge

MRR Kumamoto

Multistory parking lot:
259 spaces

ClinicOfficeGeneral discount store, beauty salon, etc.

Tasakibashi Station
Shin-Yoyasu
BridgeMinami-Kumamoto Station

Change in the Total Population and Number of Households in Kumamoto City
Heisei Station(persons)

740,000

Property descriptions

Population

Number of households

335,000
325,000

730,000

320,000
315,000

725,000

It is a complex facility comprised of residences (44 units), offices (7 sections), a
retail facility (6 tenants) and a large multistory parking lot (259 spaces). Stableprofitability is expected going forward as the main tenants in the retail facility,
Renaissance and Don Quijote, have performed very stably in recent years.

(households)

330,000

735,000

The property is located in an urban district within approximately 1 km of thecenter of Kumamoto City where there is a mix of offices and residences nearby.
It faces the Hamasen By-pass on a main arterial road heading south from
Kumamoto City (National Road 104 and National Road 266) and access by car
is excellent.

310,000

720,000

305,000
2012 2013年2013 2014年
2014 2015年
2015
2016
2017
2012年
2016年
2017年

世帯数
Source: Prepared by the asset manager人口
based on Kumamoto
City’s “Population Estimates andPopulation Trends.”* “Appraisal value” and “Appraisal NOI yield” are as of June 30, 2018. The
same applies hereinafter.
(Note) The image is a an architectural rendering of The Kumamoto Gardens, which is to beconstructed based on an urban redevelopment project plan as of June 30, 2018, and of theentire project, in which marimo REIT is involved. Marimo REIT has no specific plans toacquire the property, and there is no guarantee that it may be acquired in the future.

Source: Prepared by the asset manager based on the websites of Renaissance Inc. and Don
Quijote Holdings Co., Ltd.

Trade Area Population of Minamikumamoto, Chuo Ward, Kumamoto City
Outline of The Kumamoto Gardens (Note) Located in Sakuramachi, Chuo Ward in the center of Kumamoto City
 Excellent convenience of Kumamoto City’s Sakuramachi District Class 1
Urban Area Redevelopment Project which comprises of a diversity offacilities such as a bus terminal, retail facility (retail and restaurants), cinema
complex and hotel public facility (tentative name: Kumamoto Castle Hall)

Population within 5 km radius: 390,986 persons(Up 1.6% from 2012)
Source: Prepared by the asset manager based on “National Census Results for 2010 and2015” on the portal site of official statistics of Japan (e-Stat)(http://www.e-stat.go.jp/)5Highlights of Acquired Properties■ Supercenter TRIAL Togitsu Store (land ownership interests)

Nagayo Port
Discount Drug Cosmos Togitsu Shop
Togitsu Kita Elementary School

Supercenter TRIAL Togitsu Store(land ownership interests)
Marimo’s for-sale condominium

Togitsu
Port
Location
Acquisition price3613 Shinkai, Hinamigo, Togitsucho,
Nishisonogi County, Nagasaki

Polestar Togitsu Seaside Terrace

Togitsu Junior High School
Marimo’s for-sale condominium

Polestar Togitsu

1,150 million yen

Appraisal value

1,200 million yen

Appraisal NOI yield

5.0%

Constructed-

No. of parking spaces

224

Togitsu Elementary School
Yamada Denki Tecc Land
Togitsu store

Togitsu Town Hall

AEON Togitsu
Shopping Center

Nagayo Town Hall
Nagasaki HokuyodaiHigh School

Marimo’s for-sale condominium

Polestar Togitsu Nibankan

Nagasaki Universityof Foreign Studies

Property descriptions
Togitsucho, Nishisonogi County is a town on the border with Nagasaki City, and the subject land is located approximately 10 km to the north ofNagasaki Station. The property stands on National Route 206, which is a main arterial road for local residents. Having a large 12-hour
weekday traffic volume of 24,000 to 29,000 vehicles as well as 224 parking spaces and excellent visibility among others, it is an ideal location
for a roadside retail store with good accessibility.

Innovative initiatives by TRIAL Company
With an aim of transforming distribution systems using technologies under the slogan of "distribution information revolution," TRIAL Company, Inc.
("TRIAL") has increased the number of supermarket stores by capitalizing on the know-how it possesses as an IT firm.
Supercenter Trial Island City Store opened in Fukuoka in February this year is installed with smart cameras originally developed by TRIAL,
which are capable of analyzing consumer trends, as well as smart cameras based on Vieureka platform developed by Panasonic, which arecapable of analyzing customer movements. Based on the analysis of these 700 cameras in total, the store further enhances customer
satisfaction by seeking easier-to-find display, improving product lineup and preventing stockouts. It has also introduced carts with tablet
payment function developed jointly with Remmo, to eliminate the waiting time at the casher. With these technologies, it has become a smart
store which realized Japan’s first "smart shopping experience."

NagayoStation(Note) Concerning Marimo’s for-sale condominiums, there are no specific plans for marimo REIT to acquire theproperties as of the date of this document and there is no guarantee it can acquire them in the future.

Main tenant
The main business of the TRIAL Group is a retail business centering onsupercenters. By having functions of logistics, product development andproduction within the group, it has increased both sales and the number ofstores through realization of a low-cost structure.
400(billion yen)

350

Sales
No. of stores(Stores)

300
250

Cloud
Store entrance

200
Scan a pre-paid card
Sales floor

Sending
only theresults

Scan the barcodes of
products and put them in the
cart

Press a button at thepayment area

Viewing

Casher150
100
50

ClientStore(FY)*Excerpted from “NEWS RELEASE” of TRIAL Company, Inc. dated February 13, 2018. The above-mentioned smart cameras, etc. are notintroduced at Supercenter TRIAL Togitsu Store.

Source: Excerpt from the website of TRIAL Company, Inc.

6

Highlights of Acquired Properties■ MRR Itoshima
Kyushu University
New Campus

ArtizA series in Fukuoka City
Track record of developing 4 for-rent condominium buildings
Shikanoshima Island

Hakata Bay
Nokonoshima Island

Fukuoka City Hall Fukuoka Prefectural
Government Office

Nishitetsu-Fukuoka (Tenjin) Station

Hakata Station
Fukuoka
AirportSusenji Station

Nishi-Kyushu Expressway(Fukuoka Maehara Road)

Fukuoka City

Itoshima
City

Location

5-23-6 Takata, Itoshima City, Fukuoka

Acquisition price

900 million yen

Appraisal value

982 million yen

Appraisal NOI yield

6.0%

Constructed

July 2008

No. of parking spaces

136

Property descriptions

Change in the Total Population and Number of Households
in Itoshima City
(persons)(households)

101,000
100,000
99,00098,00097,00096,00095,00041,00040,00039,00038,00037,00036,00035,000

2012年
2013年
2014年
2015年
2016年
2017年
2012
2013
2014
2015
2016
2017

Population

Itoshima CityMRR Itoshima●

SusenjiElementary
SchoolSusenji
StationNumber of households

Source: Prepared by the asset manager based on Itoshima City’s“Population Estimates and Population Trends.”

The property is located in a popular residential area with excellent access to the city center of near by Fukuoka City for which it is a commuter town. The
population of Itoshima City has increased since part of the campus of Kyushu University (32,000 students) relocated from Fukuoka City in 2014 andresidences, retail facilities and such are rapidly developing. National Road 202 which the property adjoins is the only arterial road running east and west
in Itoshima City, so there is much traffic during both day and night.

Hatae
Elementary School

Hatae Station

Nishi Ward,
Fukuoka City

Along the road is a commercial area with various supermarkets, hardware stores, drug stores, gas stations, leading fast fashion shops, restaurants,
entertainment facilities, etc. The property is a commercial complex whose tenants are a DVD rental shop, karaoke parlor and internet cafe, and theparking area is large with 136 spaces.

7Highlights of Acquired Properties■ MRR Sasebo■ MRR Akita

Property descriptions

Property descriptions

The property is located approx. 2.4 km southeast of Sasebo Station on the JR Sasebo Line andMatsuura Railway Nishi-Kyushu Line. It is a complex-type shopping center with 131 parking spaces andis comprised of 5 tenants (a sports shop, 100 yen shop, fishing gear shop, restaurant and real estate
broker). The shop composition gives it a strong specialty feel overall.

National Road 13 which is in front of the property is the largest main arterial road within a 7 km radius,
and because Prefectural Road 56 which intersects the nearby road is also a main arterial road with muchautomobile traffic, the location has excellent access by car coming from every direction in the trade area.
The property is land with leasehold interest and commercial complex of an amusement facility with 149
parking spaces in an area with the most roadside shops in Akita City. The 3 tenants on the land are aused automobile dealer (Gulliver; Construction completed in February 2017), a men’s wear shop (Aoki;
Construction completed in March 2017) and a conveyor belt sushi restaurant (Kurasushi; Construction
completed in March 2017) and the land and building for the amusement facility is leased to Sega World.

Location

978-6 Yamatocho,
Sasebo City, Nagasaki

Acquisition price

990 million yen

Appraisal value

1,270 million yen

Marimo’s for-sale condominiums

Polestar Tokiwa Tower Residence
Polestar Sakae Tower Residence

Appraisal NOI yieldNaka-Sasebo Station
Sasebo-Chuo Station
Marimo’s for-sale condominium

Polestar Central City Sasebo
Sasebo Gobangai
Sasebo Station

MRR Sasebo

7.4%

Constructed

April 2008

No. of parking spaces

131

Sasebo Minato IC

Akita Prefectural
Government Office
Kawashiri
Elementary School
Kyokunan
Elementary School●●

Sasebo Port

YabaseSports Park Akita City Hall
Akita Prefectural
Gymnasium

Hiu
Station●Akita Station
Marimo’s for-sale condominium

Polestar Hodonotorimachi
Akita Minami
Junior High School
Chikuzan
Elementary School

Ugo-Ushijima Station

Akita Minami
High school(Note) Regarding each of marimo’s for-sale condominiums, marimo REIT has no specific plans for acquisitions, nor is there
any guarantee that it may be acquired in the future.

Osumi
Elementary School
Akita University of Art

1-1-16 Barajima, Akita City,
Akita

Acquisition price

840 million yen (Note)

Appraisal value

879 million yen (Note)

Appraisal NOI yield

6.7%

Constructed

April 1994

No. of parking spaces

149

Sensyu Park

MRR Akita

National Institute of Technology,
Sasebo College

Location

Jonan
Junior High School
Ushijima
Elementary School(Note 1) While there are 4 buildings on the site, only 1building is included in the trust beneficiaryinterest in trust property owned by marimo REIT.
The remaining 3 buildings are owned by the
party leasing the land from the trustee.
(Note 2) Regarding each of marimo’s for-salecondominiums, marimo REIT has no specificplans for acquisitions, nor is there any guaranteethat it may be acquired in the future.

8

Highlights of Acquired Properties■ ArtizA Chiyoda■ ArtizA KamimaezuⅡ
Location

17-30 Fujimicho, Naka Ward,
Nagoya City, Aichi

Location

4-4-22 Chiyoda, Naka Ward,
Nagoya City, Aichi

Acquisition price

720 million yen

Acquisition price

980 million yen

Appraisal value

770 million yen

Appraisal value

1,080 million yen

Appraisal NOI yield

5.3%

Appraisal NOI yield

5.3%

ConstructedFebruary 2016

Constructed

September 2017

No. of leasable units

30 single units and
20 compact units

No. of leasable units

78 single units

Occupancy rate

94.7%

Occupancy rate

93.7%

Property descriptions
The property is located a 7-minute walk from Kamimaezu Station on the Nagoya Municipal Subway
Meijo Line and Tsurumai Line which is only 2 stations (approximately 3 minutes) away from Sakae
Station, the center of the Sakae area which is Nagoya’s leading commercial district, and so proximity to
the city center is excellent.
There are many mid- to high-rise apartment buildings, office buildings, etc. along the arterial road in thearea. With a convenience store to the west side across the road at the front, a supermarket located an
approx. 3-minute walk to the east and the Osu Shopping Street within 1 km which is Nagoya’s greatest
shopping street, the area is very convenient with many shops selling daily goods, clothing and general
goods as well as restaurants.

Property descriptions
The Chiyoda area is located in the southeast section of Naka Ward, Nagoya City. It prospered as the
Sakae district, Nagoya City’s central commercial area, and as an area in front of a temple in the past,and it is adjacent to the Osu district which is currently being revitalized with shops targeting younger
generations and electronics stores. The property is an 8-minute walk from Tsurumai Station on the
Nagoya Municipal Subway Tsurumai Line. The living environment is excellent as there are convenientfacilities such as supermarkets nearby.

NagoyaCastle(persons)(households)

2,320,000

1,080,000

Ozone Station

Meijo Line

Change in the Total Population and Number of Households in Nagoya City

Meitetsu Seto Line

Marimo’s for-sale condominiums
Osu Shopping
District

1,060,000

2,300,000

Sakuradori Line

Kamimaezu Station

Marimo’s for-sale condominiums

Polestar The Residence

Nagoya Station

1,040,000
2,280,000

Oimatu Park

Polestar Ozone Ekimae

Nagoya City Hall
Aichi Prefectural
Government Office

Naka Ward Office

Fushimi Station

Chikusa
Naka Police Station

ImaikeStationTsurumai Station

Nagoya City Science Museum

1,020,000

Osu Kannon
TempleKamimaezu
Station2,260,000

1,000,000

ArtizA KamimaezuⅡ●●

ArtizA Chiyoda

Tsurumai Station

ArtizA Chiyoda

Higashi Betsuin Station

2,240,000

980,000
2012
2012年

2013
2013年

2014
2014年

2015
2015年

2016
2016年

2017
2017年

GokisoStationKanayama
StationYaguma-dori Street

Population

Number of households

Source: Prepared by the asset manager based on Nagoya City’s “Population Estimates and Population Trends.”

ArtizA
KamimaezuⅡ●

Higashi-Honganji Nagoya Betsuin
Shimochaya Park●
MaxValu

Nagoya Broadcasting Network
Higashi-Betsuin
Station(Note) Regarding each of marimo’s for-sale condominiums, marimo REIT has no specific plans for acquisitions, nor isthere any guarantee that it may be acquired in the future.

9

02

Summary of Financial Resultsfor 4th Fiscal Period10

4th Fiscal Period

Financial Highlights (period ended June 2018)

Financial outcome

Portfolio status

LTV to total assets

Dividends per unit

end of 3rd FP

end of 4th FP

Forecasts for the 4th FP (1)Results of the 4th FP

49.5%→47.8%

3,425 yen→3,441 yen

Investment unit priceAsset size

end of 3rd FP

end of 4th FP

end of 3rd FP

111,700 yen→114,300 yen 16.825
NAV per unit
end of 3rd FP

end of 4th FP

120,709 yen→121,786 yen

end of 4th FP
billion yen→24.525 billion yen

Average building age (2)end of 3rd FP

end of 4th FP

13.9 years→13.0 years(1) The forecast for the 4th Fiscal Period is the forecast announced on February 19, 2018 (includes dividends in excess of earnings).
(2) Each of the average building age is the weighted average of the building ages as of the end of 3rd FP or the end of 4th FP by acquisition price.

11

4th Fiscal Period

Forecasts and Results (period ended June 2018)
Forecasts for the
4th FP (1)(a)
Operating revenue(million yen) (2)Operating income(million yen) (2)Ordinary income(million yen) (2)Net income(million yen) (2)Dividends per unit (yen)(excluding dividends in excess ofearnings)…①

Dividends in excess of earnings
per unit (yen)…②

Dividends per unit (yen)…①＋②(including dividends in excess of earnings)

Results of
the 4th FP(b)

Factors (unit: million yen)
Variation(b)-(a)

1,033

1,057

＋24

461

472

＋11

Operating revenue+24

Increase in leasebusiness revenue
Increase in utilities
expenses
Cancellation penalty, etc.

+3
+6
+6

(MRR Sasebo)

390

395

＋5

389

394

＋5

Increase in otherincome+9(Income from key money,
restoration costs, etc.)

Operating expenses
Expenses for changing
signboards-13-2(MRR Kumamoto)

2,940

2,982

＋42

485

459

-26

3,425

3,441

＋16

Increase in repair costs
Increase in advertisingexpenses
Increase in otherexpenses-2-6-3(Note) + indicates net income increasing factor- indicates net income decreasing factor(1) Announced on February 19, 2018
(2) Rounded down to the nearest specified unit

12

5th Fiscal Period (ending December 2018) and 6th Fiscal Period (ending June 2019)

Earnings Forecasts (Note 1)

Operating revenue(million yen) (2)Operating income(million yen) (2)Ordinary income(million yen) (2)Net income(million yen) (2)4th Fiscal Period
ended June2018

5th Fiscal Period
ending December
2018

Variation

6th Fiscal Period
ending June
2019

Variation

Results (A)Forecast (B)(B)-(A)

Forecast (C)(C)-(B)

1,057
472

1,086

+29

467

-4

1,086
461

±0
-6

395

391

-3

387

-4

394

390

-3

386

-4

Assumptions for the forecasts
for the 5th FP and 6th FP

Forecast for the 5th FP
Operating revenue＋29

Increase from absence of per-day
rent of properties acquired in the 4th
FP (Jan. 1 to Jan. 22)＋29

Operating expenses-33

Increase in repair costs
Increase of asset management fee
Increase in other expenses

-13
-18
-1

Forecast for the 6th FP
Operating expenses
Decrease in repair costs
Increase of fixed asset tax and city
planning tax of properties acquired in
the 4th FP
Decrease in other expenses

-6
+19
-26

+1

(Note) + indicates net income increasing factor- indicates net income decreasing factor

Dividends per unit (yen)(excluding dividends in excess ofearnings)…①

Dividends in excess of net
incomeper unit (yen)…②

2,982

2,953

-29

2,918

-35

(Comparison of steady basis dividend per unit)

3,404 yen

459

473

+14

486

+13

Dividends per unit (yen)…
①＋②(including dividends in excess ofearnings)

Reference

3,441

3,426

-15

(1) The forecasts for the 5th Fiscal Period and 6th Fiscal Period do not guarantee actual results.
(2) Rounded down to the nearest specified unit

3,404

-22

+15 yen3,389 yen

Steadybasis
第4期予算（注3)before public
offering

Steadybasis
第6期予算
after public
offering

Announced August
14, 2017
Forecast for 4th FP

Announced August17, 2018
Forecast for 6th FP

13

Dividends per Unit

Forecasts and Results
Dividends per unit (including dividends in excess of earnings)

3,462

3,394

3,431

3,425

3,441

3,426

3,404

3,231
544 yen544 yen

485 yen459 yen473 yen

486 yen2,941 yen

2,850 yen

2,887 yen

2,940 yen

2,982 yen

2,953 yen

2,918 yen

2nd FP
results

3rd FP
forecasts

3rd FP
results

4th FP
forecasts

4th FP
results

5th FP
forecasts

6th FP
forecasts

Dec. 2018

June 2019521 yen520 yen977
576
451 yen2,711 yen

432 yen545 yen

125 yen
1st FP
forecasts

1st FP
results

Dec. 2016

2nd FP
forecasts

June 2017

Dec. 2017

June 2018(1) We do not guarantee the achievement of forecasts for 5h FP and 6th FP.

14

03

Management Resultsfor 4th Fiscal Period

154th Fiscal Period

Pursuing Increase of Asset Value (1)Efforts for Improving Customer Satisfaction■Replacement of gas-powered water heater(ArtizA Sobudai and ArtizA Tsuzuki Chuo Koen)■Repair of exterior walls of shop (MRR Omuta)■Installation of delivery box (ArtizA Tsuzuki Chuo Koen)■Promotion of leasing
Some rooms were decorated with interior design and small articles,
creating spaces like model rooms to increase appeal to potential
renters.

Efforts for Increasing Revenues■Increase of revenue by bringing inbase station antenna for cellphones(ArtizA Hakataeki-Minami)
Base station for cellphones and such was brought onto the rooftop. Increase in income is expected.

■Renovation (ArtizA Tsuzuki Chuo Koen)
BeforeAfter

BeforeAfter

16

4th Fiscal Period

Pursuing Increase of Asset Value (2)Change in Target Downtime (within 60 days)
Achievement Ratio

Efforts for Reducing Cost
■ Installation of LED lighting in common areas

70.0%(Tarumiekimae Gold Building, MRR Sasebo and MRR Itoshima (partial))

59.7%

58.4%

60.0%

48.9%

9%
7件

50.0%
40.0%

31.7%

30.0%
62%

Environmental
conservation

20.0%

E C O

48件
Cost
reduction

1st FP

2nd FP

3rd FP

4th FP

71%
55件

Increase/Decrease in Residential Rent
3rd Fiscal Period

Increasein rent

Decreasein rent
No change

4th Fiscal Period
Decreasein rent

14.3%
7 cases

No change

8.2% 10.2%
6.1%
6.1% 3 cases4 cases5 cases
3 cases

6.1%
3 cases Increase

39/49
cases

Change from the 1st FP to 4th FP

Increasein rent

13.4%
11 cases
7.3% 3.7%
3 casescases
66.1% cases

100.0%

5 cases

80.0%

69.4%
79.6%
34 cases cases
39 cases

13.4%

14.3%
6.1%

15.6%

29.3%

Increase
29.3%
47/82
29.3% 24 cases
24 cases
cases

60.0%
53.7%
44 cases
cases■Increase■Increase of more than 5%■Increase of 5% or less
■No change■Decrease■Decrease of more than 5%■Decrease of 5% or less

57.3%
47 cases

22.0%

40.0%
20.0%

■Increase■Increase of
more than 5%■Increase of 5% or less
■No change■Decrease■Decrease of more than 5%■Decrease of 5% or less

13.0%
26.8%

0.0%

79.6%

71.4%

57.3%

51.2%

1st FP
第1期
ended
2016年12月期
Dec. 2016

2nd FP
第2期
ended
2017年6月期
Jun. 2017

Increase
増額

3rd FP
第3期
ended
2017年12月期
Dec. 2017

No change
据置4th FP
第4期
ended
2018年6月期
Jun. 2018

Decrease
減額

17Maintaining Stable Average Occupancy Rate
Average occupancy rate for entire portfolio during fiscal periods
1st FP 98.6％

3rd FP 98.7％

2nd FP 98.6％

4th FP 98.4％

100.0%
99.0%
98.0%
97.0%
96.0%
95.0%
94.0%
93.0%
92.0%
91.0%
90.0%
2016年
Aug. 2016年
Sep. 2016年
Oct. 2016年
Nov. 2016年
Dec. 2017年
Jan. 2017年
Feb. 2017年
Mar. 2017年
Apr. 2017年
May 2017年
Jun. 2017年
Jul. 2017年
Aug. 2017年
Sep. 2017年
Oct. 2017年
Nov. 2017年
Dec. 2018年
Jan. 2018年
Feb. 2018年
Mar. 2018年
Apr. 2018年
May 2018年
Jun.
2016
8月

2016
9月

2016
10月

2016
11月

2016
12月

2017
1月

2017
2月

2017
3月

2017
4月

2017
5月

2017
6月

レジデンス
Residential

商業施設
Retailproperties

Facilities (2)

2017
7月

2017
8月

2017
9月

2017
10月

ホテル/オフィス
Hotels/Offices

2017
11月

2017
12月

2018
1月

2018
2月

2018
3月

2018
4月

2018
5月

2018
6月

ポートフォリオ全体
Entire portfolio

1st FP(Dec. 2016)

2nd FP(June 2017)

3rd FP(Dec. 2017)

End of December

End of June

End of December

End ofJanuary

End ofFebruary

End ofMarch

End ofApril

End ofMay

End ofJune

Residential properties

96.9

96.6

97.2

95.7

95.4

96.0

94.7

94.2

94.9

Retail Facilities

100.0

100.0

100.0

100.0

100.0

99.7

99.7

99.7

99.7

Hotels/Offices

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Entire portfolio

98.6

98.4

98.7

98.7

98.6

98.6

98.2

98.0

98.3

Occupancy rate (%)(1)

4th FP(June 2018)(1) For 1st to 3rd FPs, occupancy rates at the end of the fiscal period are indicated; and for 4th FP, those at the end of the month are indicated.
(2) Average occupancy rate for retail facilities was 100.0% at any time between August 2016 and February 2018.

18

4th Fiscal Period

Financial Status (fiscal period ended June 2018)【unit: million yen】

LenderSyndicate of lenders arranged

Balance ofborrowings at
end of 3rd FP

Amountrepaid in
4th FP

New
Balance of
Floating or
borrowings in borrowings at
Interest rate
fixed
4th FP
end of 4th FP

640

640

ー

500

500

ー

by Sumitomo Mitsui Banking

・Sumitomo Mitsui Banking

・The Hiroshima Bank・Sumitomo Mitsui Trust Bank・The Bank of Fukuoka

3,330

3,330

3,500

3,500

1,462.5

・Shinsei Bank

15

4,840

・Resona Bank・The Higo BankNEW

1M TIBOR＋0.2%

Jun. 1 2017

Jun. 1 2018 (Note)

3M TIBOR＋0.2%

Aug. 1 2017

Aug. 1 2018 (Note)

3M TIBOR＋0.6％
0.86669%145
9,432.5

Total

1,155

Aug. 1 2016

Aug, 2 2021

1.09908%

Aug. 1 2023

4,840

3M TIBOR＋0.6％

Feb. 1 2021

The Chugoku
Bank 3.8%

145

4,985 13,262.5

Feb. 1 2019

(Note) Early repayment was implemented on January 23, 2018.

Average remaining period

2.96 years

51.0%

Sumitomo
Mitsui Banking
25.3%

Unsecured &unguaranteed

Jan. 23 2018

3M TIBOR＋0.2%

LTV to total assets

Diversification status of lenders

Remarks

Aug. 1 2019

1,447.5
Floating

・The Chugoku Bank

Resona Bank
5.2%

Maturity date

fixed・The Mie Bank

The Higo Bank
4.3%

Floating

Borrowing
date

50.0%
50.0%

49.8%

49.5%

Average interest rate

49.0%

Shinsei Bank
8.9%

47.8%

48.0%

The Mie Bank
10.4%

The Bankof Fukuoka
10.6%

The
Hiroshima
Bank
20.4%
Sumitomo Mitsui
Trust Bank 11.2%

0.76％
Long-term debt ratio

47.0%

46.0%
1st FP
Ended Dec.
2016

2nd FP
Ended Jun.2017

3rd FP
Ended Dec.
2017

4th FP
Ended Jun.
2018

100％
19

4th Fiscal Period

IR Activities
Focused on presentation for individual investors in an effort to spread awarenessIR Activities in the 4th Fiscal Period (Jan. to Jun. 2018)
1. SMBC Nikko Securities
J-REIT Seminar (Fukuoka)

February 23 (Friday)

2. Real Estate Sustainability & Energy-Efficiency Diffusion
20th Re-Seed Seminar (Tokyo)

February 23 (Friday)

3. Tokyo Stock Exchange, Nikkei Radio and Pronexus
J-REIT Fan 2018 (Tokyo)

February 24 (Saturday)

4. ARES
Nation-Wide J-REIT Promotion Caravan (Hiroshima)

March 1 (Thursday)

5. SMBC Nikko Securities
J-REIT Seminar (Niigata)

March 8 (Thursday)

6. Nikko Investor Relations
Joint IR for individual investors (Nagoya)March 17 (Saturday)

7. Nihon Securities Journal
Joint IR for individual investors (Osaka)

April 18 (Wednesday)

8. Nihon Securities Journal
Joint IR for individual investors (Nagoya)May 28 (Monday)

IR Activities Scheduled for the 5th Fiscal Period (Jul. to Dec. 2018)
1. SMBC Nikko Securities IR for individual investors (Nagasaki)

September 6 (Thursday)

6. Radio Nikkei The Money

October 9 (Tuesday)

2. SMBC Nikko Securities J-REIT Seminar (Sapporo)

September 12 (Wednesday)

7. SMBC Nikko Securities J-REIT Fair (Tokyo)

October 20 (Saturday)

3. ARES J-REIT Fair (Tokyo)

September 21 and 22 (Friday and Saturday)

8. Daiwa J-REIT Caravan (Fukuoka)

November 22 (Thursday)

4. Nomura Securities IR for individual investors (Tokyo)

September 25 (Tuesday)

9. Tokyo Stock Exchange, Nikkei Radio and Pronexus
J-REIT Fan 2018 Autumn (Tokyo)

November 24 (Saturday)

5. ARES Nation-Wide J-REIT Promotion Caravan (Tenjin)

September 28 (Friday)

10. SMBC Nikko“Property Conference Tokyo 2018” (Tokyo)

December 6 (Thursday)

20Change in Investment Unit Price and Dividend Yield
Change in investment unit price*Indexed with the closing price on July 29, 2016 set as 100.

150.0
140.0
130.0
120.0

Highest priceDec. 5, 2017
120,100 yen

End of 2nd FP
June 30, 2017
93,400 yen

End of 1st FP
Dec. 30, 2016
80,900 yen

End of 4th FP
Jun. 29, 2018
114,300 yen

110.0

End of 3rd FP
Dec. 29, 2017
111,700 yen

100.0

Issuance
resolution dateJan. 4, 2018
111,300 yen

Pricing dateJan. 15, 2018
111,800 yen

90.0
80.0

June 30, 2017
1,694.36

Dec. 30, 2016
1,855.83

marimo Regional
マリモ地方創生リート
Revitalization REIT

End of Dec.2016

1st FPTSEREIT index
東証REIT指数

End of Jun. 2017

2nd FP

Jun. 29, 2018
1,764.64

Dec. 29, 2017
1,662.92

End of Dec. 2017

3rd FP

End of Jun. 2018

4th FP

Change in dividend yield
9.0%
8.5%
8.0%
7.5%
7.0%
6.5%
6.0%
5.5%
5.0%
4.5%
4.0%
3.5%
3.0%

Dec. 30, 2016
8.52%

Jun. 30, 2017
7.38%

Jun. 29, 2018
5.99% (Note)

Dec. 28, 2017
4.17%

Jun. 29, 2018
4.03%

Jun. 30, 2017
3.87%

Dec. 30, 2016
3.52%

Dividend yield of marimo
マリモ地方創生リート分配金利回り
Regional Revitalization REIT
End of Dec.2016

Dec. 29, 2017
6.14%

Average dividend yield of J-REITs
Jリート平均分配金利回り

End of Jun. 2017

End of Dec. 2017

(Note) Calculated by dividing the sum of forecast dividends of 3,425 yen for the 4th FP and 3,426 yen for the 5th FP by the closing price on June 29, 2018.

End of Jun. 2018

21

04

Future Initiatives

22External Growth

Points in Selecting Roadside Retail Facilities
Points to consider
upon selection(1) Number of parking spaces(2) Location along arterial roads/traffic volume(3) Resistance to e-commerce

Stability of cash flows

Since regional areas are largely dependent on automobiles, we assume that people go shopping by
car after work and go to resorts or go shopping on weekends with families by car.
Number of cars owned per household
As of March 31, 2017

Tokyo metropolitan area

Regional areas

0.702

1.216

Source: Statistics by Automobile Inspection & Registration
Information Association (announced on August 15, 2017)(Example) Traffic volume in thesurrounding areas of MRR Sasebo
24-hour traffic
volume of motor
vehiclesCongestion
benchmark

Closest point

50,742

1.71

Prefectural average

9,876

0.73

Attributes of existing tenants
Home appliances
31.7%

Discount store
12.4%

E-commerce resistance
52.4% of existing tenants

Sports club
10.4%

(Example) Number of parking
spaces of existing facilities
Facility name

No. ofparking
spacesMRR Kumamoto

259

MRR Sasebo131

MRR Itoshima

136

MRR Akita

149

Supercenter TRIAL Togitsu Store(land with leasehold interest)

224

Amusement 7.2%

Explanation on congestion benchmark
1.00 orlower

No congestion and traffic is smooth.

1.25～
1.75

Not only during the peak hours butcongestion is also likely to occur at anaccelerated pace during other hours
around the peak time.

2.00 orhigherChronic congestion, with around 70% of
the 12-hour daytime period seeing
congestion.

Source: Road Traffic Census FY2015
Source: Prepared based on in-house documents

Closely check the number of parking spaces

Closely check the traffic volume and congestion benchmark

Supermarket
6.1%
Other retail
10.0%

Services
5.2%

Apparel
6.0%
Drug store
1.6%

MedicalDrinking and 5.2%
eating2.6%
Convenience store
1.7%*Part of “Other retail” and “Supermarket” have been reclassified into “Discountstore” from September 14, 2018 to subdivide the attribute of existing tenants.

Closely check e-commerce resistance23External Growth

Expand Size of Portfolio【unit: billion yen】

100 (target)

Asset size has expanded approximately 1.5 times in the about one year and six months
since listing through public offering and other events.

1) Collaborate with marimo which has 7 bases nationwide, and share property informationthat comes from all over Japan

50.0

2) Acquire properties by utilizing the sponsors’ warehousing function and preferential
negotiation rights for sales transactions

50.0 (target)
3) Gain property information by utilizing supporting companies (regional financial institutions, etc.)

25.47524.52516.81016.825

0.64

0.015

50.0

7.7

16.17016.17016.17016.81016.82524.525

As of listing(July 29, 2016)

1st FP

2nd FP

3rd FP

4th FP(Dec. 2016)(June 2017)(Dec. 2017)(June 2018)

3 years
from listing(August 2019)5 years
from listing(August 2021)

Aiming for enhancing unitholder value with the expansion of asset size.
End of 1st FP

Dividend per unit (yen)NAV per unit (yen)End of 2nd FP

End of 3rd FP

End of 4th FP

977

3,462

3,431

3,441

Variation fromforecast ＋69.6％

Variation fromforecast ＋7.2％

Variation fromforecast ＋1.1％

Variation fromforecast ＋0.5％

119,105

120,709

121,786

Variation fromprevious FP ＋4.8％

Variation from
Previous FP ＋1.3％

Variation fromprevious FP ＋0.9％

113,679

5th FP
forecast

6th FP
forecast

3,426

3,404

－

－

(1) Asset size for August 2019 and August 2021 indicate our targets and no actual change in the size of the portfolio is guaranteed.
(2) We do not guarantee the achievement of forecasts for the 5th FP and 6th FP.

24

External GrowthPreferential Negotiation Rights for Sales Transactions: Location of properties for which preferential
negotiation rights for sales transactions areheld
Hokkaido

Preferential negotiation rights for sales transactions
Developed bysponsorDeveloped bysponsorHokkaido: Location of properties
developed by sponsors

Chubu

ArtizA Higashi-Shimada
Location: Okayama City,
Okayama
Constructed: December 2016
Units: 52

Hotel Resol Kyoto Kawaramachi
Sanjo (1)Location: Kyoto City, Kyoto
Constructed: March 2018
Units: 144

Properties developed by sponsors

ChugokuTohokuNiigata

Yamanashi

ToyamaShizuoka

Ishikawa

Gifu

Fukui

Aichi

Location

Main type

Hiroshima City, Hiroshima

Hotel (2)228

Jun. 201830

Feb. 2019(scheduled)54

Sep. 2019(scheduled)

Constructed

Iwate

Akita

Miyagi

Yamagata Fukushima

NaganoTottori

Shimane

Kanto

Okayama

Hiroshima

Ibaragi

Tochigi

Gunma

Saitama

Chiba

Tokyo

Yamaguchi

Units/
Guestrooms

Aomori

Kanagawa
Kansai

Nagoya City, Nagoya
Takasaki City, Gunma
Osaka City, Osaka
Nagoya City, Aichi

Residential
Residential
Residential
Residential

91

Jan. 2020(scheduled)40

Feb. 2020(scheduled)(1) The hotel was previously indicated as "(tentative name) Resol Hotel Kyoto," but now is officially named
as "Hotel Resol Kyoto Kawaramachi Sanjo."(2) The property is owned by a special purpose company with equity investment by Marimo Co., Ltd.
(3) There are no plans for marimo REIT to acquire the properties as of the date of this document and there
is no guarantee it can acquire them in the future.

Shiga

Kyoto

Hyogo

Osaka

Mie

Nara

Shikoku
KagawaKyushuFukuoka

Saga

Nagasaki

Oita

Kumamoto

Miyazaki

Tokushima
Ehime
Kochi

Wakayama

Okinawa
Okinawa

Kagoshima

25

05

Appendix26

Basic Principle of marimo REIT
Basic principle = “Strengthen Japan from regional areas”
Regional revitalization
marimo REIT’s idea on regional revitalization is to create regional societies where nationwide
people can live their unique lifestyle pleasantly while having hope for their region’s future by
reducing the “monocentric concentration in Tokyo.”Creation of employment

Revitalization of regional economy

Revitalization of “towns” through investing in regional real estate
marimo Regional Revitalization REIT, Inc.

Expertise inreal estate development
and urban redevelopment

Provide property information (Note)

The Mie Bank

Marimo Co., Ltd.

Kansai Urban Banking

Your family bank
The Michinoku Bank

The Hiroshima BankThe Tokyo Star Bank

The Ashikaga BankThe Chugoku BankReBITA Inc.

(Note) The Michinoku Bank, The Chugoku Bank, The Hiroshima Bank and The Ashikaga Bank are to provide property information voluntarily at their own discretion.

27

Overview of the Sponsor, Marimo
Company name
Headquarters
address
Established

Marimo Co., Ltd.

Global operation

Japan, China, Malaysia, etc.

Net sales(Non-consolidated)

Employees
Business description(Including businessdescription of subsidiaries)

Since foundation in 1970,
1-17-23, Kougokita, Nishi Ward, Hiroshima
September 1, 1970

50.7 billion yen (as of July 31, 2017)
215 (as of July 31, 2017)
Planning, development, designing, supervising and sales
business of for-sale residential properties, real estate
securitization business and sales of overseas for-salecondominiums

Urban
redevelopment business (Note)

Domestic for-rentcondominium business

Achieved surplus for 47
consecutive fiscal periods
Track record of for-sale condominium
development(as of May 31, 2018)379 structures with 24,463 units in 133
cities over 43 prefectures nationwide
Income property
direction business

The Kumamoto Gardens(Note) The graphic of the urban redevelopment project is the rendering of The Kumamoto Gardens, which is scheduled to be constructed based on the urban redevelopment project as of June 30,2018 in which Marimo is involved, and the entire said project.
There are no plans for marimo REIT to acquire the properties as of the date of this document and there is no guarantee it can acquire them in the future.

28

System of Sponsor and Supporting Companies
marimo Regional Revitalization REIT, Inc.
Preferential provision of property
information
Granting of preferential negotiationrights for sales

Provision of property information (Note)

Warehousing function
CM support
PM operations

Financialadvisory andassistance

Leasing support
Support for regeneration of owned
assetsFixed rent-type ML

Ratio of investment in the asset
manager

Same-boat investment

Marimo HD: 96.0%
The Mie Bank: 2.5%
The Michinoku Bank: 1.5%

Support for securing personnel

Licensing of trademark
SponsorSupporting companies

The Mie Bank

Marimo Co., Ltd.

Your family bank
The Michinoku BankThe Tokyo Star BankReBITA Inc.

The Chugoku Bank

The Hiroshima Bank

Kansai Urban Banking

The Ashikaga Bank

(Note) The Michinoku Bank, Chugoku Bank, The Hiroshima Bank and The Ashikaga Bank shall provide property information voluntarily upon the discretion of each.

29Portfolio List (as of June 30, 2018)
Investment ratio by region(based on acquisition price)

Investment ratio by type(based on acquisition price): Marimo headquarters and branches: Supporting companies

Office8.2%

Residential
43.2%

Hotel
3.0%

Koshinetsu/Hokuriku/
Kanto(excluding Tokyo
metropolitan area)
0.9%
Kinki
2.0%
Chugoku/
Shikoku
13.0% Tokai
14.2%

Retail
45.6%

Average remaining lease period(based on rent)

15 years toless than
20 years
8.3%

20 yearsor more8.4%

Less than
5 years
20.0%

Tokyo metropolitan
area 14.6%

Ratio ofregional areas: Retail facilities: Residential properties: Offices

Kyushu/Okinawa
40.7%: Hotels: Shinkansen network: Airports

85.4%

The Michinoku Bank

Hokkaido/Tohoku
14.6%

Composition ratio of types of leaseagreements (based on rent)

Normal lease26.9 %

Fixed-term
land lease13.2 %
Koshinetsu Branch
The Ashikaga Bank

Average
Remaininglease periodTokyo Branch
The Tokyo Star Bank

9.6
Chubu Branchyears
10 years toless than
15 years
31.0%

The Mie Bank

5 years toless than
10 years
32.4%

Fixed-termbuilding lease59.9 %

Kyushu Branch
Headquarters

The Chugoku Bank

Yokohama Branch
Kansai Branch

The Hiroshima Bank
Kansai Urban
Banking Corporation*”Property No.” on the map of Japan indicates a number given to each property in marimo REIT’s portfolio, which is acombination of categories for “investment target” and “investment ratio by region.” As to “investment target,” R refers
to residential properties, C to retail facilities, H to hotels and O to offices, while p refers to regional areas and t to
Tokyo metropolitan area. For property names, please refer to “Portfolio List” on page 31.

30

Portfolio List (fiscal period ended June 2018)
Property No.
Rp-01

Property name
ArtizA Sendai Kakyoin

Acquisition
priceBook value at the Appraisal value at Appraisal value at Terminal capitalization Terminal capitalization
end of 4th FP
the end of 3rd FP the end of 4th FP rate at the end of 3rd FP rate at the end of 4th FP

Appraised
NOI yield

Location

Category

Sendai City, Miyagi

Residential
properties

2,730

2,706

3,630

3,640

5.5%

5.5%

7.5%

400

399

522

525

5.2%

5.2%

6.9%

Rp-02

ArtizA Kamimaezu

Nagoya City, Aichi

Residential
properties

Rp-03

ArtizA Hakata PREMIER

Fukuoka City,
FukuokaResidential
properties

1,060

1,041

1,230

1,240

5.3%

5.2%

6.7%

ArtizA Hakataeki-Minami

Fukuoka City,
FukuokaResidential
properties

500

494

557

564

5.2%

5.1%

6.4%

640

650

659

667

5.0%

4.9%

5.0%

Rp-04
Rp-05

ArtizA Higashi-Betsuin

Nagoya City, Aichi

Residential
properties

Rp-06

ArtizA KamimaezuⅡ

Nagoya City, Aichi

Residential
properties

720

739

-

770

-

5.0%

5.3%

ArtizA Chiyoda

Nagoya City, Aichi

Residential
properties

980

1,006

-

1,080

-

4.9%

5.3%

Rt-01

ArtizA Ikejiri

Setagaya Ward,Tokyo

Residential
properties

610

613

681

681

4.2%

4.2%

4.6%

Rt-02

ArtizA Tsuzuki Chuo Koen

Yokohama City,
Kanagawa

Residential
properties

1,050

1,082

1,100

1,100

5.2%

5.2%

6.0%

ArtizA Kawasaki EAST

Kawasaki City,
Kanagawa

Residential
properties

780

783

885

886

5.4%

5.4%

6.7%

ArtizA Sobudai

Zama City,
Kanagawa

Residential
properties

1,130

1,148

1,290

1,290

5.4%

5.4%

6.8%

Omuta City, Fukuoka

Retailfacilities

1,265

1,250

1,280

1,280

6.6%

6.6%

7.0%

Tarumiekimae Gold Building

Kobe City, Hyogo

Retailfacilities

500

488

524

538

6.2%

6.1%

6.5%

Foodaly Aoba StoreMiyazaki City,
Miyazaki

Retailfacilities

250

240

400

405

6.4%

6.3%

10.3%

Yamada Denki Tecc Land Mihara Store

Mihara City,
Hiroshima

Retailfacilities

2,000

1,949

2,690

2,730

6.4%

6.3%

8.7%

Cp-05

Yamada Denki Tecc Land Togitsu Store

Nishi-Sonogi County,
Nagasaki

Retailfacilities

950

938

1,100

1,120

6.5%

6.4%

7.9%

Cp-06

Seven-Eleven Kofu Aioi 1-chome Store(land ownership interests)

Kofu City,
Yamanashi

Retailfacilities

220

223

220

220

7.0%

7.1%

6.6%

MRR Kumamoto

Kumamoto City,
Kumamoto

Retailfacilities

2,120

2,182

-

2,300

-

5.9%

6.7%

Cp-08

MRR Sasebo

Sasebo City,
Nagasaki

Retailfacilities

990

1,009

-

1,270

-

5.8%

7.4%

Cp-09

MRR Itoshima

Itoshima City,
Fukuoka

Retailfacilities

900

914

-

982

-

5.4%

6.0%

Rp-07

Rt-03
Rt-04
Cp-01
Cp-02
Cp-03
Cp-04

Cp-07

MRR Omuta

Cp-10

MRR Akita

Akita City, Akita

Retailfacilities

840

852

-

879

-

6.8%

6.7%

Cp-11

Supercenter TRIAL Togitsu Store(land ownership interests)

Nishi-Sonogi County,
Nagasaki

Retailfacilities

1,150

1,170

-

1,200

-

5.0%

5.0%

Hp-01

ROUTE INN Ichinomiya Ekimae

Ichinomiya City, Aichi

Hotels

740

709

838

841

6.1%

6.1%

6.9%

Op-01

MRR Delta Building

Hiroshima City,
Hiroshima

Offices

1,200

1,187

1,280

1,280

5.8%

5.7%

6.4%

Op-02

PLEAST Hakata Gion Building

Fukuoka City,
Fukuoka

Offices

800

783

975

983

5.2%

5.1%

6.1%

24,52524,56919,861

28,471--

6.7%

Total / average

25

properties(Note) Appraisal NOI yield is calculated as: Appraisal NOI at the end of 4th FP/Acquisition price.

【Unit: million yen】

31

Photos of Properties
Residential properties (11 properties)
ArtizA Sendai Kakyoin

ArtizA Kamimaezu

ArtizA Hakata PREMIER

ArtizA Hakataeki-Minami

ArtizA Higashi-Betsuin

ArtizA Ikejiri

ArtizA Tsuzuki Chuo Koen

ArtizA Kawasaki EAST

ArtizA Sobudai

ArtizA KamimaezuⅡ

ArtizA Chiyoda

Hotels (1 property)

Retail facilities (11 properties)
MRR Omuta

Tarumiekimae Gold Building

Foodaly Aoba Store

Yamada Denki Tecc Land
Togitsu Store

Yamada Denki Tecc Land
Mihara StoreMRR Kumamoto

Seven-Eleven Kofu Aioi 1-chome
Store (land ownership interests)

MRR Sasebo

ROUTE-INN Ichinomiya
EkimaeOffices (2 properties)
MRR Delta Building

MRR Itoshima

MRR Akita

Supercenter TRIAL Togitsu Store(land ownership interests)

PLEAST Hakata Gion
Building

32

Balance of Individual Properties (1)Investment area

Regional area

Property no.

Rp-01

August 1,
2016

Acquisition date

Rp-05

August 1,
2016

August 1,
2016

August 1,
2016

Rt-01

Rt-03

Rt-04

ArtizA
HigashiBetsuin

ArtizA
ArtizA Ikejiri Tsuzuki Chuo
Koen

Rt-02

ArtizA
Kawasaki
EAST

ArtizA
Sobudai

June 1,
2017

August 1,
2016

August 1,
2016

August 1,
2016

August 1,
2016(million yen)

2,730

400

1,060

500

640

610

1,050

780

1,130

Investment ratio

(%)

11.1

1.6

4.3

2.0

2.6

2.5

4.3

3.2

4.6

(Note 1)(million yen)

2,706

399

1,041

494

650

613

1,082

783

1,148

(Note 1)2(m )9,810.37

1,096.48

3,804.39

1,691.50

1,336.50

641.16

3,731.75

3,055.80

5,703.73

Leased area

(Note 1)2(m )9,159.37

1,071.56

3,675.08

1,666.88

1,336.50

568.12

3,374.00

3,055.80

5,430.50

Occupancy rate

(Note 1)

(%)

93.4

97.7

96.6

98.5

100.0

88.6

90.4

100.0

95.2

181 days

181 days

181 days

181 days

181 days

181 days

181 days

181 days

181 days(thousand yen)

130,403

17,62648,23023,26922,39417,50041,431

30,07353,639Lease business revenue
Other lease businessrevenue(3) Total lease business expenses(thousand yen)

123,783

17,36945,98821,861

21,093

16,59339,76830,07351,909

6,619

257

2,242

1,408

1,300

907

1,662

－

1,729

27,4803,442

13,138

6,098

5,795

5,319

10,796

3,886

15,711

Management fees

9,303

1,328

3,952

2,134

2,092

1,769

3,795

1,062

5,235

Taxes and public dues

7,693

1,338

3,268

1,559

1,619

767

2,867

2,318

3,730

Utility costs

975

144

502

363

158

141

244

－

474

Repair costs

8,528

121

4,759

1,577

569

2,346

3,465

151

5,226

Insurance fees

493

70

190

78

101

42

195

130

327

220

225

220

220

225

225

225

225

225

265

213

246

164

1,029

27

3

－

491

Leasable area

(1) Number of operating days
(2) Total lease business revenue

Balance(Note 2)

Tokyo metropolitan area
Rp-04

Acquisition price

Period-end book value
Leasing
information

Rp-03

ArtizA
ArtizA Sendai
ArtizA
ArtizA Hakata
HakataekiKakyoin
Kamimaezu PREMIER
Minami

Property namePrice
information

Rp-02

Trust fees
Other lease business
expenses(4) NOI ( = (2) – (3) )(thousand yen)

102,923

14,18435,091

17,17016,59812,18030,634

26,18637,928(5) Depreciation(6) Lease business income( = (4) – (5) )(7) Capital expenditures(thousand yen)

30,160

4,403

16,305

7,019

6,569

2,462

3,331

5,367

10,047(thousand yen)

72,762

9,780

18,786

10,15010,0299,718

27,303

20,81827,881(thousand yen)

350

－

137

－

－

－

15,205

6,727

8,343

(8) NCF ( = (4) – (7) )(thousand yen)

102,572

14,18434,954

17,17016,59812,18015,42919,45829,585(Note 1) Figures are as of the end of the 4th Fiscal Period.
(Note 2) The balance is for the 4th Fiscal Period.

33

Balance of Individual Properties (2)Investment area
Property no.

Property nameAcquisition date
Acquisition pricePrice
information

Balance(Note 2)

Cp-02

Cp-03

Cp-04

(%)

5.2

2.0

1.0

8.2

3.9

0.9

3.0

4.9

3.3

(Note 1)(million yen)

1,250

488

240

1,949

938

223

709

1,187

783

Leasable area

(Note 1)2(m )6,485.11

678.57

1,729.30

11,579.19

5,998.15

904.273,860.81

3,053.57

1,931.47

Leased area

(Note 1)

(m2)

6,485.11

678.57

1,729.30

11,579.19

5,998.15

904.273,860.81

3,053.57

1,931.47

Occupancy rate

(Note 1)

(%)

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.00(1) Number of operating days
(2) Total lease business revenue(thousand yen)
Lease business revenue
Other lease businessrevenue

181 days
56,18456,133181 days
21,122
19,434181 days
16,30816,308181 days**

181 days**

181 days
7,800
7,800

181 days**

181 days
56,40451,041181 days
30,00030,000

51

1,687

－

－

－

－

－

5,363

－

(3) Total lease business expenses

10,961

3,640

3,255

*

18,624

5,212

Management fees

2,333

1,324

489

*

3,714

2,319

Taxes and public dues
Utility costs
Repair costs
Insurance fees
Trust fees
Other lease business
expenses

4,893
78
1,070
163
225

723
1,281
13
27
220

1,111
－
－
45
220

8,732
－
－
376
220

3,033
－
－
239
225

296
－
－
－
220

3,974
－
－
180
225

5,066
5,704
3,401
247
220

2,391
－
98
114
220

2,196

49

1,388

15

3,853

15

－

271

69

7,033

*

37,77924,787－

10,844

14,711

6,802

*

7,033

*

23,067

17,984

－

－

*

7,033

Investment ratio
Period-end book value

Leasing
information

Regional area
Cp-05
Cp-06
Hp-01
Op-01
Op-02
SevenEleven Kofu
YamadaYamadaAioi 1-chome ROUTE-INN
MRR
Tarumiekimae
Foodaly
Denki Tecc Denki Tecc
MRR Delta PLEAST HakataStore
Ichinomiya
Omuta Gold Building Aoba Store Land Mihara Land Togitsu
Building
Gion Building(land
EkimaeStore
Store
ownership
interests)
August 1,
August 1,
August 1,
August 1,
August 1,
August 1,
August 1,
August 1,
August 1,
2016
2016
2016
2016
2016
2016
2016
2016
2016
1,265
500
250
2,000
950
220
740
1,200
800
(million yen)
Cp-01

(thousand yen)

(4) NOI ( = (2) – (3) )(thousand yen)

45,223

17,482

13,052(5) Depreciation(6) Lease business income( = (4) – (5) )(7) Capital expenditures(thousand yen)

14,699

4,951

3,963

(thousand yen)

30,523

12,5309,088(8) NCF ( = (4) – (7) )(thousand yen)

3,004

166

－

(thousand yen)

42,21917,315

13,052***
18,695

*

766

*

234

*
6,268

*
－

846
*

*

6,371

－

31,40824,787* Figures are undisclosed as the consent of the tenant could not be obtained. Furthermore, while the tenant of Yamada Denki Tecc Land Mihara Store is Marimo Co., Ltd., there is an item of concern in thecontract with the end tenant and so the figures are undisclosed as consent of the end tenant could not be obtained.
(Note 1) Figures are as of the end of the 4th Fiscal Period. Furthermore, the leasable area and leased area of Yamada Denki Tecc Land Mihara Store and Yamada Denki Tecc Land Togitsu Store include the areas of the
1F automobile garage (piloti-type parking lot section under the building) and the warehouse building.
(Note 2) The balance is for the 4th Fiscal Period.

34

Balance of Individual Properties (3)Investment area

Regional area

Property no.

Price
information

Cp-08

Cp-09

Cp-10

Cp-11

Property name

ArtizA
KamimaezuⅡ

ArtizA Chiyoda

MRR
Kumamoto

MRR
SaseboMRR
Itoshima

MRR
Akita

Acquisition date

January 23,
2018

January 23,
2018

January 23,
2018

January 23,
2018

January 23,
2018

January 23,
2018

January 23,
2018

Acquisition price(million yen)

720

980

2,120

990

900

840

1,150

Investment ratio

(%)

2.9

4.0

8.6

4.0

3.7

3.4

4.7

(Note 1)(million yen)

739

1,006

2,182

1,009

914

852

1,170

Leasable area

(Note 1)2(m )1,557.90

2,062.06

11,157.71

5,070.01

2,842.78

8,416.10

13,719.74

Leased area

(Note 1)(m2)

1,475.27

1,931.46

11,157.71

4,872.23

2,842.78

8,416.10

13,719.74

Occupancy rate

(Note 1)

(%)

94.7

93.7

100.0

96.1

100.0

100.0

100.0

159 days

159 days

159 days

159 days

159 days

159 days

159 days

20,38028,861

103,467

54,84836,18428,304*

19,37025,544

91,92542,86429,49828,304

*

1,010

3,317

11,542

11,984

6,685

－

－

3,559

8,463

32,615

14,173

10,350

2,492

*

1,957

7,409

13,505

4,805

2,735

849

*

Taxes and public dues

－

－

－

0

－

－

－

Utility costs

162

164

15,254

6,053

6,377

－

－

Repair costs

825

－

2,821

2,880

802

258

－

Insurance fees

82

106

540

223

78

30

－

196

196

218

196

218

196

196

335

586

275

14

139

1,158

60

(thousand yen)

16,821

20,39770,852

40,67525,83325,811*(5) Depreciation(6) Lease business income( = (4) – (5) )(7) Capital expenditures(thousand yen)

6,175

9,170

19,790

6,390

3,090

911

－

(thousand yen)

10,645

11,22751,061

34,28522,742

24,900*(thousand yen)

－

－

2,640

5,667

2,400

－

－

(8) NCF ( = (4) – (7) )(thousand yen)

16,821

20,397

68,21235,00723,43325,811*(1) Number of operating days
(2) Total lease business revenue(thousand yen)

Lease business revenue
Other lease businessrevenue(3) Total lease business expenses(thousand yen)Management fees

Balance(Note 2)

Cp-07

Supercenter
TRIAL TogitsuStore(land ownershipinterests)

Period-end book value

Leasing
information

Rp-07

Rp-06

Trust fees
Other lease business
expenses(4) NOI ( = (2) – (3) )* Figures are undisclosed as the consent of the tenant could not be obtained.
(Note 1) Figures are as of the end of the 4th Fiscal Period.
(Note 2) The balance is for the 4th Fiscal Period.

35

Residential Properties and Retail Facilities

Market Data
Standard Deviation of Rate of Change of Rent Level
by Real Estate Type(%)

Corporate Service Index and Consumer Price Index(2000 = 100)
(%)

3
105
2.5
100
2
95
1.5
90
1
85
0.5
80
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

Residential
properties

Retail facilities

Hotels

Offices

Offices

Retail facilities

HotelsResidential
properties

Source: Prepared by the asset manager based on the Bank of Japan’s Corporate Service Index
and the Statistic Bureau’s (Ministry of Internal Affairs and Communications) Consumer
Price Index (from 2000 to 2017).

Source: Prepared by the asset manager based on the Bank of Japan’s Corporate Service Index
and the Statistic Bureau’s (Ministry of Internal Affairs and Communications) Consumer
Price Index

Change in Annual Sales of Various Retailers

Change in Sales in the Retail Industry Overall and in Daily
Necessities

(%)
150

(trillion yen)144

(trillion yen)
50
Convenience
Stores

140

45

142

40
140

35
30

130

138

25
Drug stores

120

136

20
15

134

10

110
Hardware stores
Supermarkets

100

Department stores

132

5
0

130
2007

2008

2009

2010

2011

Retail industry total (right axis)

90
2010

2011

2012

2013

2014

2015

2016

2017

Source: Prepared by the asset manager based on data from the Ministry of Economy, Trade andIndustry’s Current Survey of Commerce, Japan DIY Industry Association and Japan
Association of Chain Drug Stores’ FY2017 Japan Drug Store Survey (2010 = 100).

2012

2013

2014

2015

2016

2017

Textiles, apparel and personal effects

Food and beverage
Source: Prepared by the asset manager based on the Ministry of Economy, Trade and Industry’s
Current Survey of Commerce and Commercial Sales Value by Type of Business andComparison with Previous Year (fiscal year, period and month).

36

Offices

Vacancy Rate and Contracted Rents
Rent continue to increase in major cities and vacancy rates also continue to decline
Sapporo City
Vacancy rate

Hiroshima City

Assumed contracted rents

Vacancy rate

Assumed contracted rents(yen)

7.0% 6.2%

(yen)

6.0%

13,9006.5%
13,36013,4004.6%

5.0%

7.0% 6.5%

12,94012,59012,9003.7%

4.0%

12,09012,4003.3%

11,900
3.0%

2.3%

2.0%

10,9000.7%

0.5% 0.4%

10,4000.3%

0.0%

10,350

4.5%

10,200

9,900

2.5%

9,400

2.0%

Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q4 of Q1 of
fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal
2014 2014 2015 2015 2016 2016 2017 2017 2017 2018

3.9%
3.2% 3.3%

3.0%

5.8%

5.0%

Assumed contracted rents

13,4004.7%

13,00012,600

4.0%
3.0%
2.0%
1.0%

12,27011,640
11,2502.4%
11,4002.1%
10,92011,00010,55010,28010,6001.0%
10,0700.6% 0.5%
0.4% 10,200
11,800

9,800
9,400

0.0%
Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q4 of Q1 of
fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal
2014 2014 2015 2015 2016 2016 2017 2017 2017 2018

9,690

9,300
Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q4 of Q1 of
fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal
2014 2014 2015 2015 2016 2016 2017 2017 2017 2018

Vacancy rate

9.0%
8.0%
7.0%
6.0%

12,200

3.2%

9,640

9,450

Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q4 of Q1 of
fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal
2014 2014 2015 2015 2016 2016 2017 2017 2017 2018

5.0%
4.0%
3.0%
2.0%
1.0%
0.0%

Assumed contracted rents
(yen)

10.0%
13,59013,27012,94013,800

6.0%

9,750

Nagoya City(yen)

7.0% 6.4%

2.8%2.8% 2.9%

9,740

9,600

Fukuoka City
Vacancy rate

9,920

9,900

Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q4 of Q1 of
fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal
2014 2014 2015 2015 2016 2016 2017 2017 2017 2018

Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q4 of Q1 of
fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal
2014 2014 2015 2015 2016 2016 2017 2017 2017 201810,25010,06010,0503.0%

9,8209,940

10,44010,5005.0%

3.5%

10,67010,6505.1%

4.0%

11,08010,89010,65011,4001.1%

1.0%

11,52010,800

6.0%
5.5%

10,94010,89010,9506.0%

12,80012,7008.1%
12,70012,55012,60012,45012,500
6.2%
12,40012,3005.2%
12,30012,20012,1004.4% 4.2% 4.1%
12,05012,1003.9%
11,950
3.4%
12,00011,8502.5% 11,900
11,7501.8% 11,800 11,700
11,70011,60011,500Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q4 of Q1 of
Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q4 of Q1 of
fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal
fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal
2014 2014 2015 2015 2016 2016 2017 2017 2017 20182014 2014 2015 2015 2016 2016 2017 2017 2017 2018

Source: Prepared by the asset manager based on “Japan Office Market View” of CBRE, K.K. (Cited grade B data for assumed contracted rents for Nagoya City)37

Hotels

Number of Lodging Foreign Travelers/Occupancy Rate
Number of lodging foreign travelers in Japan
Comparison between regional areas and Tokyo
metropolitan area

Steady performance of occupancy
rate of business hotels

Total Number of Lodgers by Year(2016 to 2017; unit: thousand people)

Occupancy Rate by Facility Type(Thousand people)

60,00080.0%

Up 16.0％

75.7%
72.5%

79.2%

78.7%

79.5%

74.2%

74.4%

75.3%

60.3%

59.7%

60.5%

56.0%

56.9%

37.0%

37.1%

37.5%

2015

2016

2017

77.3%
72.1%

69.5%

50,000

70.0%

67.3%

40,00060.0%

Up 5.5％30,00020,000

57.4%
54.8%

48.0%

52,96523,731

10,00025,037
40.0%
35.5%
33.4%

0

Regional areas

2016

57.5%

54.0%

52.3%

50.0%
45,654

55.2%

35.2%

Tokyo metropolitan area

2017

Regional areas: All areas other than the Tokyo metropolitan area
Tokyo metropolitan area: Tokyo, Chiba, Kanagawa and Saitama prefectures
Source: Prepared by the asset manager based on “Overnight Travel Statistics Survey” by
the Japan Tourism Agency, Ministry of Land, Infrastructure, Transport and Tourism

30.0%
2012

2013

2014

Total

RyokanResort hotels

Business hotels

City hotels

38

B-to-C EC Market Size in Japan
Scale of B-to-C EC market and composition ratio of each business sector

Changes in scale of B-to-C EC market and EC ratio*EC ratio is for the retail sector

2016
A. Retail sector

8,004.3 billion yen(EC ratio

B. Service-related sector

2017

Growth rate

8,600.8 billion yen

5.43% )

(EC ratio

5,353.2 billion yen

5.79% )

5,956.8 billion yen

20,0007.5%

5.43

18,0004.75

16,00011.3%

1,778.2 billion yen

1,947.8 billion yen

9.5%

3.85

14,00010,0005

4.37

12,000C. Digital-related sector

5.79% 6

2.84

3.17

4

3.40

16,505 3

8,000

Total

15,135.8 billion yen

16,505.4 billion yen

9.1%

6,000

7,788

8,459

9,513

11,166

12,797

13,7752

15,136

4,000

0

(1)

Food products, beverages, liquor(2)Home electrical appliances, AV equipment, PC/peripheral equipment, etc. (not including online games)(3)

Books, video/music software (not including e-publishing in books)(4)

Cosmetics, pharmaceutical products(5)

Sundries, furniture, interior(6)

Clothing, accessories, etc.

(7)

Automobiles, motorcycles, auto parts, etc.

(8)

Office products/stationery(9)

OthersB. Service-related sector

1

2,000

A. Retail sector

0
2010

2011

2012

2013

2014

Scale of EC market (billion yen)

2015

2016

2017

EC ratio (%)

Source: “FY2017 Survey of Infrastructure Development Status for Data-driven Society in Japan (ECommerce Market Survey)” by Information Economy Division, Commerce and Information
Policy Bureau, Ministry of Economy, Trade and Industry

The scale of the B-to-C EC market is on an expanding trend,
but the EC ratio for the retail sector is 5.79%

C. Digital-related sector(1)

Travel Service(1)

E-publishing (e-books, e-magazines)(2)

Food service(2)

Fee-based music streaming(3)

Ticket sale(3)

Fee-based video streaming(4)

Financial service(4)

Online games(5)

Beauty service(5)

Others(6)

Others (medical, insurance, housing-related, education, etc.)(Note) Business to consumer e-commerce is abbreviated as “B-to-C EC.”
Source: “FY2017 Survey of Infrastructure Development Status for Data-driven Society in Japan (E-Commerce Market Survey)”
by Information Economy Division, Commerce and Information Policy Bureau, Ministry of Economy, Trade and Industry

39

Dividends in Excess of Earnings
Policy on dividends in excess of earnings
Verify the most appropriate cash management from various aspects including capital expenditures, economic
environment, real estate market conditions, financial status, repayment of borrowings and funds for acquiring
new properties

 marimo REIT decides whether or not it will execute dividends in excess of earnings
and the amount for the respective fiscal period after verifying the following (1) and (2)Verification (2) Amount of dividends in excess of earnings

Verification (1) Execute or not(Execute when the following conditions are met)

30% of depreciation or less and 75% of payout ratio* or less
(The figure is the actual amount of the 4th FP)

4th FP
results*Total amount of dividends (including dividends in excess of earnings)＝75.0%Net income + depreciation
Retained earnings
151 million yen(Of which, retained earnings
for repair 9 million yen)

Real estateappraisal value atthe end of FP
28,471 million yen

Total planned
amount of capital
expenditure for the
next FP
115 million yen

Total book valueof real estate, etc.
24,569 million yen

Depreciation
212 million
yen

Capital expenditure
51 million yen

30% or less

Net income
394 million
yen

Dividends inexcess of earnings
60 million yen

Dividends ofearnings
394 million
yen(Note ) The above figures are as of the end of the 4th FP and do not indicate the ratio of distribution to net income or depreciation, or the ratio of dividends in excess of earnings.
Dividends in excess of earnings may change in amount or may not be implemented due to economic conditions, trends in the real estate market, and the state of finances and the portfolio.

Distribution40

Balance Sheet and Statement of Income
for the 4th Fiscal Period
Statement of Incomefor 4th fiscal period

Balance Sheet for the 4th Fiscal Period (June 30, 2018)
Liabilities

AssetsCash and deposits
Cash and deposits in trust

Operating revenue

Current liabilities

Current assets
931,688

Operating accounts payable

1,966,582

Short-term loans payable

Lease business revenue
147,348－

Operating accounts receivable

7,430

Current portion of long-term loans payable

175,000

Prepaid expenses

35,118

Accrued expenses

116,626

Deferred tax assets

16

Consumption taxes receivable
Other

130,174
323

Total current assets

3,071,334

Non-current assets

Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust(636,970)
10,418,095
265,363

Accumulated depreciation(19,389)

Structures in trust, net

245,974

Machinery and equipment in trust

114,331

Accumulated depreciation(10,439)

Machinery and equipment intrust, net

103,892

Tools, furniture and fixtures in trust

7,510

Accumulated depreciation(1,114)Tools, furniture and fixtures intrust, net

6,395Land in trust

13,790,968

Total property, plant and equipment

24,565,326

4,221

Software3,541

Total intangible assets

7,762

Investments and other assets
Guarantee deposits

10,000

Lease and guarantee deposits in trust

13,500Long-term prepaid expenses

50,115

Total investments and other assets

73,615

Total non-current assets

57,7701,057,848

Operating expenses
Expenses related to rent business

447,063

Asset management fee

79,465

Accrued consumption taxes－

Asset custody fee

1,349

Advances received

169,145

Administrative service fees

12,886

Current portion of tenant leasehold and security
deposits in trust

51,817

Directors’ compensations

2,400

7,022

Taxes and dues

9,354

Other operating expenses

33,255

Total operating expenses

585,775

667,910Non-current liabilities
Long-term loans payable

13,087,500

Operating income

Tenant leasehold and security deposits in trust

1,301,219

Non-operating income

Asset retirement obligations
Other

18,222
193

Total non-current liabilities
Total liabilities

14,407,134
15,075,045

Net assets
Unitholders’ equity
Unitholders’ capital

12,412,622

Deduction from unitholders’ capital
Allowance for temporary difference
adjustments
Other deduction from unitholders’capital
Total deduction from unitholders’capitalIntangible assets
Leasehold rights in trust

Total operating revenue

1,000,078

950

Total current liabilities
11,055,066

Other lease business revenue

Income taxes payable

Other

Property, plant and equipment

From January 1, 2018
to June 30, 2018

Unitholders’ capital, net

Interest income

12

Insurance income

384

Total non-operating income

396

Non-operating expenses
Interest expenses

48,386

Borrowing related expenses

22,433

Amortization of investment unit
issuance expenses

5,629

Other
(3,092)(133,086)(136,179)
12,276,443

Surplus472,073

Total non-operating expenses

419
76,868

Ordinary income

395,601

Net income before income taxes

395,601

Income taxes - current
Income taxes - deferred
Total income taxes

952
(1)
951

Unappropriated retained earnings(undisposed loss)

394,697

Net income

Total surplus

394,697

Retained earnings brought forward

47

12,671,141

Unappropriated retained earnings(undisposed loss)

394,697

Total unitholders’ equity
Total net assets
Total liabilities and net assets

394,650

12,671,141
27,746,186

24,646,705

Deferred assets
Investment unit issuance expenses
Total deferred assets
Total assets

28,14628,146
27,746,186

41

Status of Investment Unitholders (as of end of June 2018)
Ratio of Unitholders by Number(8,507 unitholders in total)
Securities
companies
0.3％
Other domestic
entities
1.5％

Rank

Foreigncompanies, etc.
Financial
0.6％
institutions

Ratio of Investment Units by Number(132,340 units in total)

Foreign companies, etc.
3.6％

Securities
companies
2.1％

Other
domestic
entities
17.0%

Financial
institutions
24.4％

Individuals,
others53.0%

Number ofinvestment
units

Ownershipratio

1Marimo Co., Ltd.

13,950

10.5%

2

The Master Trust Bank of Japan, Ltd.
(trust account)

9,025

6.8%

3

Trust & Custody Services Bank, Ltd.
(securities investment trust account)

8,998

6.8%

4

Japan Trustee Services Bank, Ltd.
(trust account)

7,337

5.5%

5

The Nomura Trust and Banking Co., Ltd.
(investment trust account)

4,052

3.1%

6

CHASE MANHATTANBANK GTS CLIENTSACCOUNT ESCROW

1,342

1.0%

7

Sekai Shindo-kyo Syokyakuhikiatekin

1,034

0.8%

8

An individual

1,000

0.8%

8

An individual

1,000

0.8%

10

Ueda Yagi Tanshi Co., Ltd.

839

0.6%

48,577

36.7%

0.2％

Individuals,
others97.4％

Name of unitholder

Total(Note)(Note) Calculated by dividing the 48,577 investment units owned by the top 10 unitholders by the 132,340
investment units issued and outstanding, and rounded to the first decimal place.

42

Disclaimer► This material is solely intended to provide information and is not intended to seek or solicit investments or to serve as arecommendation to buy or to sell.
For those interested in the investment units of marimo Regional Revitalization REIT, Inc., please direct requests to securities
companies. The final decision on investment should be made based on your own judgements and responsibility.
► This material is not a disclosure document or a management report based on the Financial Instruments and Exchange Act, theAct on Investment Trusts and Investment Corporations, listing regulations of the Tokyo Stock Exchange or regulations of theInvestment Trusts Association nor is it based on other related laws, regulations or rules.
► Numerical numbers in this material are rounded down to the nearest units stated and ratios are rounded to the first decimal
place when they are indicated without any other specification.
► Data, analyses, etc., in this material are based on performance in a specific period in the past, and are not guarantees of actual
future investment results, changes, etc. In addition, the forward-looking statements contained in this material do not guarantee
future performance.
Furthermore, analyses, judgments and other opinions of marimo Regional Revitalization REIT, Inc. and Marimo AssetManagement Co., Ltd. contained in this material merely represent opinions as of the preparation date. Different views may exist
and the opinions may be changed in the future.
It should also be noted that with real estate investment trusts there is a risk that, owing to fluctuations in the prices andprofitability of the real estate under management, the actual value may decrease to a value below that of the principal sum
invested.
► The information provided in this material is not audited and there are no warranties regarding the accuracy and completenessof the information.
Furthermore, please note in advance that the contents are subject to change or deletion without prior notice.
► Neither marimo Regional Revitalization REIT, Inc. nor Marimo Asset Management Co., Ltd. accept any responsibility of any
kind for the consequences of investment activities or any acts carried out on the basis of this material.
► Any reproduction or alternative use of the content indicated in this material without prior permission is prohibited.
► Marimo Asset Management Co., Ltd. is a Financial Instruments Business Operator as stated in the Financial Instruments andExchange Act (No. 2885 issued by the Director-General of the Kanto Finance Bureau (Kinsho) and a member of the Investment
Trusts Association).
For inquiries concerning the materials: Contact IR Dept.at Mail: info@marimo-am.co.jp

43Regional areas have hidden potential

44