6th Fiscal Period (Ended June 30, 2019)

Presentation Material
Securities Code: 3470
Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc.
marimo Regional Revitalization
REIT,MarimoInc. 6thAssetFP Presentation(Asset Manager)
ManagementMaterialCo., Ltd.l 1

Table of Contents
Summary of Financial Results for
6th Fiscal Period3 6th Fiscal Period Financial Highlights
 6th Fiscal Period Forecasts and Results
 7th Fiscal Period and 8th Fiscal Period Earnings Forecasts
 Dividends per Unit Forecasts and Results

Management Results for 6th Fiscal
Period8 External Growth: ArtizA Higashi-Shimada Pursuing Increase of Asset Value (1) Pursuing Increase of Asset Value (2) Pursuing Increase of Asset Value (3) Maintaining Stable Average Occupancy Rate 6th Fiscal Period Financial Status
 6th Fiscal Period IR Activities
 Change in Investment Unit Price and Dividend Yield

Future Initiatives
 External Growth Sponsor Pipeline
 External Growth Expand Size of Portfolio

Copyright © Marimo Asset Management Co., Ltd.

17

Appendix20

 Property Introduction (1) PLEAST Hakata Gion Building Property Introduction (2) MRR Akita Portfolio Map
 Portfolio PML Value Portfolio List (1) Portfolio List (2) Photos of Properties Basic Principle of marimo REIT Overview of the Sponsor, Marimo
 Sponsor: Marimo 50th anniversary
 System of Sponsor and Supporting Companies Points in Selecting Roadside Retail Facilities
 B-to-C EC Market Size in Japan
 Residential Properties and Retail Facilities Market Data Offices Vacancy Rate and Contracted Rents
 Hotels Number of Lodging Foreign Travelers/Occupancy
Rate Dividends in Excess of Earnings
 Balance Sheet and Statement of Income for the 6th
Fiscal Period
 Balance of Individual Properties (1) Balance of Individual Properties (2) Balance of Individual Properties (3) Balance of Individual Properties (4) Status of Investment Unitholders
 Disclaimer

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 2

01

Summary of Financial Resultsfor 6th Fiscal Period

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 3

6th Fiscal Period

Financial Highlights (period ended June 2019)
 Acquisition of property developed by Marimo by exercising preferential negotiation rights for sales
transactions (ArtizA Higashi-Shimada Acquisition price: 700 million yen)
 NAV per unit increased for five consecutive fiscal periods (Comparison with end of 1st FP +10.4％)
 Maintaining a stable occupancy rate of around 98% since listing

Asset size
end of 5th FP

Dividends per unit

(Note 1)end of 6th FP→25.225

24.525 billion yen

Ratio of unrealized gain
end of 5th FP

Forecasts for the 6th FP (Note 2)

billion yen(Note 3)end of 6th FP→18.1％

16.6％

NAV per unit
end of 5th FP(Note 4)end of 6th FP→125,547yen

122,535 yen

Results of the 6th FP

3,455 yen→

3,494 yen

Average occupancy rate
end of 5th FP

end of 6th FP→98.6%

98.4%

Upward rent revision ratio
end of 5th FP(Note 5)end of 6th FP→64.4%

61.8%(Note 1) “Asset size” is calculated as the total acquisition price (rounded down to the nearest million yen) of each property comprising the portfolio. The same applies hereafter.
(Note 2) The forecast for the 6th Fiscal Period is the forecast announced on February 18, 2019 (includes dividends in excess of earnings).
(Note 3) “Ratio of unrealized gain” is calculated by dividing the difference between the total appraisal value and total book value by the total book value, and rounded to the first decimal place. The figure does not guarantee theamount of profit calculated with the ratio.
(Note 4) “NAV per unit” is calculated with the following formula: (Unitholders’ capital – Total dividends + Unrealized gain) / Number of investment units issued and outstanding. The same applies hereafter.
(Note 5) “Upward rent revision ratio” is calculated by dividing the number of rents revised upward/downward upon rent revision concerning new contracts of residential properties (12 properties) for each fiscal period, by the total
number of new contracts for each fiscal period. The same applies hereafter.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 4

6th Fiscal Period

Forecasts and Results (period ended June 2019)(million yen)

Forecasts for the
6th FP (Note 1)(a)Results of
the 6th FP(b)

Variation(b)-(a)

1,111

1,121

＋9

Operating revenue (Note 2)

Operating income (Note 2)

Ordinary income

Net income(Note 2)

(Note 2)

Dividends per unit (yen)(excluding dividends in excess of earnings)(1)

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

467
391
390

2,953

471
397
396

2,995

＋3
＋5
＋5

＋42

502

499

-3

3,455

3,494

＋39

Factors (unit: million yen)
Operating revenue+9

Increase in other income+8(Income from key money,
restoration costs, etc.)

Increase in parking
income+1

Operating expenses-5

Increase in outsourcing
expenses
Decrease in advertisingexpenses
Decrease in expenses
other than those above

-10
+2
+3

(Note) + indicates net income increasing factor- indicates net income decreasing factor(Note 1) Announced on February 18, 2019
(Note 2) Rounded down to the nearest specified unit

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 5

7th Fiscal Period (ending December 2019) and 8th Fiscal Period (ending June 2020)

Earnings Forecasts (Note 1)(million yen)

Operating revenue (Note 2)

Operating income (Note 2)

6th Fiscal Period
ended June2019

7th Fiscal Period
ending December
2019

Variation

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

8th Fiscal Period
ending June
2020

Variation

Forecast (C)(C)-(B)

Assumptions for the forecasts
for the 7th FP and 8th FP (unit: million yen)

Forecast for the 7th FP
Operating revenue
Decrease in rent (part of MRR Omuta, etc.)

Decrease in other income

1,121
471

1,105
468

-15
-2

1,100
469

-5
+0

(Income from key money, restoration costs, etc.)＋2Operating expenses+12

Decrease in outsourcing expenses
Decrease in repair costs

＋9
＋6
-2
-1

Increase in expenses other than those above

Net income (Note 2)

Dividends per unit (yen)(excluding dividends in excess ofearnings) (1)Dividends in excess of earnings
per unit (yen) (2)

397

385

-13

385

-0

396

384

-12

384

-0

2,995
499

2,903
497

-92
-2

2,902
498

-1
+1

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

Non-operating expenses-7

Increase in borrowing related expenses
Increase in interest expenses-6-1

Forecast for the 8th FP
Operating revenue-5

Decrease in rent (part of MRR Kumamoto, etc.)
Decrease in rental income (Seven-Eleven Kofu)

-1
-7
-4
＋2
＋7

Decrease in utilities revenue
Increase in parking income
Increase in other income(Income from key money, restoration costs,
etc.)

Decrease in other income-2

Operating expenses+6

Increase in outsourcing expenses

-3
＋2
＋7

Decrease in expenses for general meeting of unitholders

3,494

3,400

-94

+0

Decrease in income other than the above

Non-operating expenses
Increase in interest expenses(Note 1) The forecasts for the 7th Fiscal Period and 8th Fiscal Period do not guarantee actual results.
(Note 2) Rounded down to the nearest specified unit

Copyright © Marimo Asset Management Co., Ltd.

3,400

-7
-10

Increase in income other than the above

Increase in expenses for general meeting of unitholders

Ordinary income (Note 2)

-15

-1
-1

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

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 6

Dividends per Unit

Forecasts and Results
Dividends per Unit (including dividends in excess of earnings)(Unit: yen)

3,494
3,462
3,231

3,394

3,431

3,425

3,441

3,426

3,445 3,455

3,400 3,400

544

544

485

459

473

460

502

499

2,941

2,850

2,887

2,940

2,982

2,953

2,985

2,953

実績
2nd
FP
results

予想
3rd
FP
forecasts

実績
3rd
FP
results

予想
4thFP
forecasts

実績
4th
FP
results

予想
5thFP
forecasts

実績
5th
FP
results

予想
6thFP
forecasts

521

497

498

2,995

2,903

2,902

6th実績
FP
results

予想
7thFP
forecasts

予想
8th
FP
forecasts

520

977
576
451

2,711

432
545

125
1st予想
FP
forecasts

実績
1st
FP
results

Dec. 2016

予想
2nd
FP
forecasts

June 2017

Dec. 2017

June 2018

Dec. 2018

June 2019

Dec. 2019 June 2020

(Note 1) We do not guarantee the achievement of forecasts for 7th FP and 8th FP.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 7

02Management Resultsfor 6th Fiscal Period

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 8

External Growth- ArtizA Higashi-Shimada (Acquired on January 4, 2019) Acquisition of property developed by the sponsor by exercising preferential negotiation rights for sales transactions
Track record of developing 12 Polestar-series forsale condominiums in Okayama City (Note 1)

Okayama Prefectural Museum
Okayama Prefectural Museum of Art
Okayama Korakuen

Okayama Station

Bic Camera
ICONTNICOT

Okayama Orient Museum

Momotaro-dori Street

Okayama Castle

Takashimaya
Shiyakushosuji Street

AEONMALL OKAYAMA

Hayashibara Museum of Art

Kencho-dori Street

Akura-dori Street

Kita Ward Office
Okayama City Office

Okayama Prefectural Government

Yanagawa-suji Street

ArtizA Higashi-Shimada

Okayama Prefectural LibraryTenmayaProperty Location

Appraisal NOI yield

Occupancy rate

Okayama City, Okayama

5.3％ (Note 2)

98.1％ (Note 2)

Acquisition priceAppraisal value

Completion date

700 million yen

730 million yen (Note 2)

Dec. 2016

Property typeExclusive area (for a unit)

No. of Units

1K, 1LDK

34.8 m2

52

Continuing to maintain a high occupancy rate
Bike space■Property description

Can be used as a bike space (9 rooms)

 The property is located approximately 900 meters southwest of Okayama Station on the JR Sanyo MainLine/Sanyo Shinkansen (approximately

a 12-minute walk).
 The central-Okayama office district and “AEON MALL Okayama” (one of the largest shopping mall in West Japan) are within walking distance.
 Completed two years ago, the property possesses due quality in its interior, facilities and such, and expects persistent residential demandmainly for rental housing provided by companies, etc.
(Note 1) 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 as of the date of this document.
(Note 2) “Appraisal NOI yield,” “Occupancy rate” and “Appraisal value” indicate figures as of June 30, 2019. The same applies hereinafter.

Copyright © Marimo Asset Management Co., Ltd.

（％）

101.0
100.0
99.0
98.0
97.0
96.0
95.0
94.0
93.0
92.0
91.0
90.0

Commenced operation at
marimo REIT
(January 4, 2019～)
2018年 2018年 2018年 2018年 2018年 2018年 2019年 2019年 2019年 2019年 2019年 2019年
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
End of
7月末
8月末
9月末
10月末
11月末
12月末
1月末
2月末
3月末
4月末
5月末
6月末
Jul.
2018 Aug.
2018 Sep.
2018 Oct.
2018 Nov.
2018 Dec.
2018 Jan.
2019 Feb.
2019 Mar.
2019 Apr.
2019 May
2019 Jun.
2019

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 9

Pursuing Increase of Asset Value (1)Renovation work (Case of ArtizA Sobudai for 3LDK 66.69 m2)■Overview of Property
Property Location

Appraisal NOI yield

Completion date

Zama City, Kanagawa

6.8％

Feb. 1993

Property typeExclusive area (for a unit)

Units

3LDK,２LDK＋S

66.69～73.16 m2

81 (residential units)

After

Before■Rent (targeted units)

88,000 yen↓

Bathroom

Bathroom

Fitted door

Fitted door

CorridorCorridor

92,000 yen(+4.5%)■Details of Value Enhancement
Renewal of washbasin and bathtub, replacement of floors, adoption of
LED lighting at kitchen, exchange of doorknob at entrance, painting offittings, etc.

■Point of Value Enhancement

Optimization

Compressed costs by avoiding construction work for adopting
flooring in tatami rooms and conducted construction work in linewith the demand in the surrounding area as certain demand fortatami rooms is expected in the surrounding area according to theresults of the interview with real estate agents in the neighborhoodof the property

CosteffectivenessConducted value enhancement work by postponing excessive
construction work and focusing on cost performance

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 10

Pursuing Increase of Asset Value (2)Efforts for increasing income and reducing cost
■Efforts for Increasing Income■Efforts for Reducing Cost
 Advertising expenses (Change structure of Assetmanagement report)

 MRR Delta Building Installation of rental bikes (Peacecle)

・Reduction of the number ofcolor pages
・Monochrome printing oflegal pages, etc.

 ArtizA Higashi-Betsuin Installation of vending machines ArtizA Kamimaezu Change of security camera (purchase upon renewal)

 ArtizA Ikejiri Installation of rooftop mobile
phone base stations
 ArtizA Sendai Kakyoin Commencement of partial
subleasing of motorbike parking space ArtizA Higashi-Shimada Switching electric power company to a new company
 ArtizA Hakataeki-Minami Introduction of electronic breaker ArtizA Hakata PREMIER Introduction of electronic breaker Administrative service fees Revision of the content of outsourcing business, etc.

Assuming an increase in income by approximately
340,000 yen in total (per period)
Copyright © Marimo Asset Management Co., Ltd.

Assuming cost reduction by approximately 4.2 million yen in
total (per period)
marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 11

Pursuing Increase of Asset Value (3)Change in Target Downtime (within 60 days)
Achievement Ratio

Efforts for Improving Customer Satisfaction●Exchange of air conditioner・・・・・ArtizA Hakata PREMIER, ArtizA Hakataeki-Minami●Rooftop waterproofing work・・・・・・・・・・・・・・・・・・ ROUTE INN Ichinomiya Ekimae●Renewal work of air conditioner・・・・・・・・・・・・・・・・・・・・・・・・ MRR Delta Building

(％)

100
80

58.4
60
40

59.7

48.9

43.6

31.7

55.2

20
0
Exchange of air conditioner

Rooftop waterproofing work

Renewal work of air conditioner

1st FP
第1期

2nd
FP
第2期

3rd
FP
第3期

4th
FP
第4期

5th
FP
第5期

6th FP
第6期

Increase/Decrease in Residential Rent
6th Fiscal Period

5th Fiscal Period

13.4%
18 cases
9.0%
9.0%
12 cases
12 cases
4.5%
6 cases

14.5%
8 cases
9.1%
5 cases 12.7%
5.5%
7 cases
23.6% 3 cases
13 cases
Increase

34/55
23.6%
13 cases cases
49.1%
27 cases
61.8%
34 cases

Increase

21.6％
29 cases
21.6%
29 cases

Increase
87/134cases

Change from the 1st FP to 6th FP
(%)
100.0
80.0
60.0

26.8

15.6

14.3
6.1

71.4

79.6

第2期
2nd
FP

第3期
3rd
FP

13.4

14.5

13.4

29.3

23.6

21.6

57.3

61.8

64.9

第4期
4th FP

第5期
5th FP

第6期
6th
FP

22.0

40.0
20.0

13.0

51.2

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

56.0%
75 cases

0.0
第1期
1st
FP

Decrease
Decrease of more than 5%
Decrease of 5% or less

Copyright © Marimo Asset Management Co., Ltd.

64.9%
87 cases

Increase
増額No措置changeDecrease
減額

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 12

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

2nd FP

3rd FP

4th FP

5th FP

6th FP

98.6％

98.6％

98.7％

98.4％

98.4％

98.6％

100.0%
100 %

95.0%

90.0%

Occupancy rate of residential properties increased
Reached the highest level ever of 98.8%

～
～
85.0%
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. 2018年
Jul. 2018年
Aug. 2018年
Sep. 2018年
Oct. 2018年
Nov. 2018年
Dec. 2019年
Jan. 2019年
Feb. 2019年
Mar. 2019年
Apr. 2019年
May 2019年
Jun.
8月
9月
10月 2016
11月 2016
12月 2017
1月
2月
3月
4月
5月
6月
7月
8月
9月
10月
1月
2月
3月
4月
5月
6月
7月
8月
9月
10月
1月
2月
3月
4月
5月
6月
2016
2016
2016
2017
2017
2017
2017
2017
2017
2017
2017
2017 11月
2017 12月
2017 2018
2018
2018
2018
2018
2018
2018
2018
2018
2018 11月
2018 12月
2018 2019
2019
2019
2019
2019
2019

Residential
レジデンス
properties

Retail

商業施設
Facilities(Note 2)

Hotels/Offices
ホテル/オフィス

ポートフォリオ全体
Entireportfolio（注2）

1st FP

2nd FP

3rd FP

4th FP

5th FP

6th FP(Dec. 2016)(June 2017)(Dec. 2017)(June 2018)(Dec. 2018)(June 2019)

End ofDecember

End ofJune

End ofDecember

End of June

End ofDecember

End ofJan.

End ofFeb.

End ofMar.

End ofApr.

End ofMay

End ofJune

Residential
properties

96.9

96.6

97.2

94.9

93.9

93.9

95.5

96.8

96.7

96.9

98.8

Retail Facilities

100

100

100

99.7

100

100

100

100

100

98.8

98.8

Hotels/Offices

100

100

100

100

100

100

100

100

100

100

100

Entire portfolio

98.6

98.4

98.7

98.3

98.1

98.0

98.6

99.0

98.9

98.3

98.9

Occupancy rate(%) (Note 1)(Note 1) For 1st to 5th FPs, occupancy rates at the end of the fiscal period are indicated; and for 6th FP, those at the end of the month are indicated.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 13

Financial Status (period ended June 2019)(unit: million yen, rounded down to nearest specified unit)
Balance of Amount
Balance of FloatingNewborrowings
borrowings
repaidinborrowingsorat end of 5that end of
6th FP
in 6th FP
fixedFP
6th FP

LenderSyndicate of lenders arranged
by Sumitomo Mitsui Banking

3,330

－

－

3,330 Floating

・Sumitomo Mitsui Banking
・The Hiroshima Bank・Sumitomo Mitsui Trust Bank

3,500

－

－

3,500

Interest
rate

Borrowing Maturity
date
date

3M
TIBOR
＋0.6％

Aug. 1,
2019

0.86669%

・The Mie Bank

1,432

15

－

・The Higo Bank

Aug. 1,2023

Jan. 23,2018

Feb. 1,2021

Jan. 4,2019

Aug. 1,
2019

4,840

－

－

4,840 Floating

3M
TIBOR
＋0.6%

－

－

700

700 Floating

1M
TIBOR
＋0.2％

13,10215700 13,787

・Sumitomo Mitsui Banking

Diversification Status of Lenders

49.5%

49.1%
47.8% 47.7%

47.5%
46.5%
End of End of End of End of End of End of
1st FP 2nd FP 3rd FP 4th FP 5th FP 6th FP

1.09908%

・The Chugoku Bank

50.0% 49.8%

49.5%

Aug. 2,
2021

1,417

・Resona Bank

The Bank ofFukuoka
9.3%
The Mie
Bank
10.1%

50.5%

48.5%

Aug. 1,
2016

・Shinsei Bank

ResonaBank
The Higo 3.6%
Bank
4.1%
The
ChugokuBank
5.0%
ShinseiBank
9.2%

LTV to Total Assets

Fixed

・The Bank of Fukuoka

Total

Remarks

Unsecured &unguaranteed

Average Interest Rate

0.76％
Long-term Debt Ratio

94.9％

※

Details of Refinancing (conducted on Aug. 1)

Aozora Bank
3.6%
Sumitomo
Mitsui Banking
23.9%

The
Hiroshima
Bank
20.3%
Sumitomo Mitsui
Trust Bank
10.8%

Long-term loans
3,330 million yen(3 years)Long-term loans
2,015 million yen(3 years)

Borrowing date: August 1, 2019
Floating or fixed: Floating
Interest rate: 3M TIBOR＋0.6%
Collateral: Unsecured &unguaranteed

Short-term loans
700 million yen(approximately
7 months)

Long-term loans
2,015 million yen(5 years)

Borrowing date: August 1, 2019
Floating or fixed: Floating
Interest rate: 3M TIBOR＋0.8%
Collateral: Unsecured &unguaranteed(Note) The above graph shows diversification status as of August 1, 2019, after the new lender (Aozora Bank) joined.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 14

IR Activities
Focused on IR for institutional investors in addition to IR for individual investors

IR Activities in the 6th Fiscal Period (Jan. to Jun. 2019)⑧①②

1. Seminar for individual investors hosted by
Nihon Securities Journal (Sapporo)

Apr. 22 Mon.

③

2. ARES Nation-Wide J-REIT Promotion
Caravan (Fukuoka)

May 13 Mon.

3. ARES Nation-Wide J-REIT Promotion
Caravan (Osaka)

May 16 Thu.

Focusing on IR for institutional investors with an
aim to expand the investor base
Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 15

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.

End of 1st FP
80,900 yen

140.0
130.0

End of 2nd FP
93,400 yen

At listing
81,500 yen

Highest priceJun. 25, 2019122,600 yen

End of 5th FP
104,100円

End of 4th FP
114,300 yen

150.0
End of 3rd FP
111,700 yen

End of 6th FP
117,000 yen
Comparison with the price at listing＋43.6％

120.0
110.0
100.0

90.0
80.0

～
～

End of 1st FP
1,855.83

At listing
1,869.32

End of 2nd FP
1,694.36

End of 3rd FP
1,662.92

marimo Regional
Revitalization REIT

0
End of Dec. 2016

1st FP

End of Jun. 2017

2nd FP

End of Dec. 2017

3rd FP

End of 5th FP
1,774.06

End of 4th FP
1,764.64

End of Jun. 2018

4th FPTSE REIT index

End of 6th FP
1,938.82
Comparison with the priceat listing＋3.7％

End of Dec. 2018

5th FP

End of Jun. 2019

6th FP

Change in Dividend Yield
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%

8.52%

7.38%
6.15%

6.02%

6.67%

5.89%

8.46%

3.41%

(Note)

3.87%

3.52%

4.17%

4.04%

4.16%

3.88%

Dividend yield of marimo Regional Revitalization REIT
Average dividend yield of J-REITs

End of Dec. 2016

End of Jun. 2017

End of Dec. 2017

End of Jun. 2018

End of Dec. 2018

End of Jun. 2019

(Note) As for “Dividend yield of marimo Regional Revitalization REIT”, the dividend yield until the 5th FP is calculated by dividing the sum of final dividend for 2 fiscal periods by the closing price atthe end of the period. The dividend yield for the 6th FP is calculated by dividing the sum of final dividend of 3,494 yen for the 6th FP and forecast dividend of 3,400 yen for the 7th FP by theclosing price on June 30, 2019. “Average dividend yield of J-REITs” is prepared by the asset manager based on Prop Tech plus Inc.’s “J-REIT Market Monthly Report”.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 16

03

Future Initiatives

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 17

External GrowthSponsor Pipeline
Properties developed by sponsors
Location: Minoo City, Osaka
Main type: Retail
Constructed: Dec. 2019
(Scheduled)
Properties developed by sponsors
Location: Osaka City, Osaka
Main type: Residential
Units:
91 (1K)
Constructed: Oct. 2019
(Scheduled)

Properties developed by sponsors
Location: Nagano City, Nagano
Main type: Hotel
Units:
117
Constructed: Sep. 2020
(Scheduled)

Property under sponsor’s urban
redevelopment projects

Properties developed by sponsors
Location: Takasaki City, Gunma
Main type: Residential
Units:
54 (1LDK)
Constructed: Feb. 2020
(Scheduled)

MIRAKITA CITY HIMEJI
Location: Himeji City, Hyogo
Main type: Retail(sectional)
Constructed: Jan. 2019
Properties developed by sponsors
Location: Hiroshima City,

Properties developed by sponsors
Location: Takayama City, Gifu
Main type: Hotel
Units:
139
Constructed: Jan. 2021
(Scheduled)

Hiroshima

Main type: Hotel
Units:
224
Constructed: Jul. 2022
(Scheduled)

Properties developed by sponsors
Location: Kumamoto City,
Kumamoto
Main type: Residential
Units:
48
Constructed: Mar. 2021
(Scheduled)

Properties developed by sponsors
Location: Nagoya City, Aichi
Main type: Residential
Units:
40 (1K)
Constructed: Feb. 2020
(Scheduled)

Properties developed by sponsors
Location: Nagoya City, Aichi
Main type: Residential
Units:
30 (1K)
Constructed: Feb. 2019

(Note 1) As to properties developed by sponsors, 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 themin the future.
(Note 2) The content of this page has been partially revised in accordance with the press release disclosed on October 8, 2019 (“Notice Concerning Waiver of Preferential Negotiation Rights
for Sales Transactions Regarding Property Acquisition”).

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 18

External Growth

Expand Size of Portfolio
Aim for medium- to long-term external growth and securement of stable revenues
1) Collaborate with marimo which has 6 bases nationwide, and share property information that comes fromall over Japan
2) Acquire properties by utilizing properties developed by the sponsors as well as their warehousing
functions and preferential negotiation rights for sales transactions
3) Gain property information by utilizing supporting companies (regional financial institutions, etc.)
7 new properties
Floor expansion
1 new property
at 1 property

50.0 (Target) (Note 1)
1 new property【unit: billion yen】

24.78

ArtizA Higashi-Shimada

MRR Kumamoto etc.

ArtizA Higashi-Betsuin

16.81
16.17

MRR Omuta

24.53

16.83

7.7

0.02

24.53

25.23
0.7

0.64
Acquisition
withborrowings

Acquisition
with cashon handAcquisition
with POandborrowings

Acquisition
withborrowings

2nd FP

3rd FP

4th FP

5th FP

6th FP(June 2017)(Dec. 2017)(June 2018)(Dec. 2018)(June 2019)～～

1st FP(Dec. 2016)

5 years
from listing

Aiming for enhancing unitholder value with the expansion of asset size.
Dividend per Unit (yen)

4,000
3,500
3,000

NAV per Unit (yen) Comparison with end of 1st FP +10.4

3,462

3,431

3,441

3,445 3,494 3,400

End
of 2nd FP
第2期末Endof 3rd FP
第3期末End
of 4th FP
第4期末End
of 5th FP
第5期末End
of 6th FP
第6期末Result実績

Result実績

Result実績

Result実績

Result実績

End第7期
of 7th FP
Forecast
予想(Note 2)

3,400
End第8期
of 8th FP
Forecast
予想(Note 2)130,000
125,000
120,000
115,000
110,000

113,679
End of 1st
第1期末
FP
実績
Result119,105 120,709 121,786

122,535

End of 2nd
第2期末
FP
実績
ResultEnd of 5th
第5期末
FP
実績
ResultEnd of 3rd
第3期末
FP
実績
ResultEnd of 4th
第4期末
FP
実績
Result％125,547

End of 6th
第6期末
FP
実績
Result(Note 1) The figure for 5 years from listing indicates our target and no actual change in the size of the portfolio is guaranteed.
(Note 2) We do not guarantee the achievement of forecasts for the 7th FP and 8th FP.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 19

04

Appendix

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 20

Property Introduction (1)PLEAST Hakata Gion Building
Office market in Fukuoka City remains favorable(Note 1) Unit (%)
Unit (yen) Assumed Contracted Rents
15,190
9 8.4
16,00014,00012,000(Note 1)

Vacancy Rate(unit price per tsubo)

13,5908

12,270
11,25010,5509,830 10,070

6.4

7
6

4.7

10,00058,000
4Location
Appraisal NOI yield

Fukuoka City, Fukuoka

6,000

6.1％ (Note 1)

4,000

Occupancy rate

100％

Acquisition price

800 million yen

Appraisal value

1,000 million yen

Completion dateAug. 2008

2

2,000

2014

2015

Copyright © Marimo Asset Management Co., Ltd.

2016

2017

2018

2019

2013

2014

2015

2016

2017

2018

2019

Population of Fukuoka City is gradually increasing
Change in Population of Fukuoka City

(Note 2)

1,560
1,538

1,540

1,525
1,512

1,520
1,497

1,500
1,480

Points・Contract period is from April 27, 2015 to April 26, 2020
・Leased area is 1931.47 m2（approximately 584 tsubos）
・Market rent in the surrounding area is on an upward trend

0.4 0.202013

Unit (thousand yen)・The property is located approximately 130m southwest of Gion Station on the Fukuoka City Subway Kuko
Line(approximately a 1-minute walk).
・As Gion Station is only one stop from Hakata Station or around 6 to 7 minutes on foot, access to the city
center is extremely easy.
・There are many retail stores and restaurants around the neighboring area
・The neighboring area belongs to a commercial district with many medium-rise office buildings, etc.

1.0

1

0

■Property descriptions

2.4

3

1,483

1,470

1,460
1,440
1,420
2013

2014

2015

2016

2017

2018

(Note 1) Source: Prepared by the asset manager based on CBRE’s “Japan OfficeMarket Review”(Note 2) Source: Prepared by the asset manager based on the data posted on thewebsite of Fukuoka City

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 21

Property Introduction (2)MRR Akita (1 tenant leasing the building & 3 tenants on the land)
The distance from Akita Station to MRR Akita is approximately 2.6
km in a straight line and approximately 15 minutes by vehicle
UNIQLO(clothingstore)MRR Akita

Aoyama(men’s wear shop)
XEBIO(sporting goods store)

SEGA (leisure) AOKI (men’s wear shop)
Kurasushi (restaurant) Gulliver (used automobile
dealer)

Aeon(GMS)
Shimamura
Seria(100-yen (clothing
store) Nitori
shop)(furniture store)

Yabase Sports Park

Sensyu Park
Akita City Hall
Akita Prefectural
Gymnasium
Akita Prefectural
Government Office Commercial area
Akita Stationin front of station

Kawashiri
Elementary School

Akita Minami
Junior HighSchoolKyokunan
Elementary School

Toys“R”Us(toy shop)
ROUND ONE(leisure)

Chikuzan
Elementary School
Barajima
commercial area

Hotel Komachi(hotel with natural
hot spring)

Jonan Junior HighSchool
Ugo-Ushijima
Ushijima Elementary
StationSchoolAkita Minami High School© OpenStreetMap contributors■Property descriptions

Magnified map of Barajima commercial area
Roadside shops centering on chain stores are being operated
in the surrounding area of MRR Akita

・The property is located approximately 1.4 km northwest of Ugo-Ushijima Station on the JR Uetsu Main Line・The property faces National Route 13 with a width of approximately 23 m on the southwest side
・Roadside retail stores and restaurants are located around the neighboring area
・Located within a 3 km radius from the city center around Akita Prefectural Government Office and JR Akita Station,
the property offers excellent accessibility
・The property is located in an area with high traffic volume mainly on the national road and where strong demand forretail stores is expected

Location

Appraisal NOI yield

Occupancy rate

Akita City, Akita

6.7％

100％

Acquisition priceAppraisal value

Completion date

840 million yen

879 million yen

Apr. 1994

Copyright © Marimo Asset Management Co., Ltd.

Akita University of Art

Osumi
Elementary
SchoolBarajima commercial area has many large
retail stores (shops with an area of 1,000
m2 or more) with 13 facilities locatedwithin a radius of 1 km radius. As forbusiness type, there are many large
specialty stores such as furniture andhome appliance stores, and roadside retailfacilities concentrate in the area.

National Road 13 is the largest main
arterial road within a 7 km radius（Congestion benchmark: 1.64）(Note)
Prefectural Road 56 is also a main
arterial road with much automobile
traffic(Congestion benchmark: 1.37) (Note)(Note) Fiscal 2015 Road Traffic Census General Traffic Volume Survey Results(For the explanation of the congestion benchmark, please refer to page 32)

Environment surrounding Akita City
Akita City has population of 306,668 with 136,736
households (as of June 1, 2019)

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 22

Portfolio Map (as of June 30, 2019)
Investment ratio by type(based on acquisition price)
Focusing on
stability

Office
7.9%
Hotel
2.9%

Investment ratio by region(based on acquisition price)

Koushinetsu/Hokuriku/Kanto(excluding Tokyo
metropolitan area) 0.9%

Tokyo
metropolitan area
14.2%

Residential

44.8%
Residential
Retail

Kinki
2.0%

85.8%

89.1%

Focusingonprofitability

Chugoku/
Shikoku
15.5%

Retail44.3%

Average remaining lease period（※）(based on rent)
20 years or
more
8.5%

15 years toless than 20
years
8.4%

Kyushu/Okinawa
39.6%

Ratio ofRegional areas

Aim to create a diversified
portfolio nationwide to
reduce risk from disasters

Less than
5 years
34.9%

Hokkaido/
Tohoku
14.2%

Tokai
13.8%

Composition ratio of types of leaseagreements (based on rent)

Normal lease
20.4%

Fixed-term
land lease
13.4%
Rp-08

Ratio offixed-termbuilding/landlease

Average
Remaining
Lease period

8.9 years

79.6%
5 years toless than 10
years
48.2%

* “Average remaining lease period” is the average (weighted average) obtained by:(Monthly rent (yen) x Remaining years)/Monthly rent (yen).

Copyright © Marimo Asset Management Co., Ltd.

Fixed-termbuilding
lease
66.2%

*”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 25/26.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 23

Portfolio PML Value
PML value of portfolio dispersed nationwide 1.4％
・Portfolio PML Value（PML = Probable Maximum Loss）⇒Indicates the probable maximum loss caused by earthquakes for all properties
Therefore, the lower the PML value is, the lower the building damage caused by earthquakes will be

Kyushu area
9,970 million yen
Rp-03 ArtizA Hakata PREMIER
5.1％
Rp-04 ArtizA Hakataeki-Minami
3.9％
Cp-01 MRR Omuta
8.5％
Cp-03 Foodaly Aoba store
4.9％
Cp-05 Yamada Denki Tecc Land Togitsu
Store
13.6％
Cp-07 MRR Kumamoto
8.9％
Cp-08 MRR Sasebo
0.5％
Cp-09 MRR Itoshima
5.9％
Cp-11 Supercenter TRIAL Togitsu Store(land ownership interests)－
Op-02 PLEAST Hakata Gion Building
3.5％

Kinki area
500 million yen
Cp-02 Tarumiekimae Gold Building 13.7％

Koushinetsu, Hokuriku and Kita-Kanto area

Hokkaido and Tohoku area
3,570 million yen
Rp-01 ArtizA Sendai Kakyoin
4.4％
Cp-10 MRR Akita
10.0％

Tokyo metropolitan area
3,570 million yen

220 million yen
Cp-01 Seven-Eleven Kofu Aioi 1-chome
Store (land ownership interests)

Rt-01 ArtizA Ikejiri
8.2％
Rt-02 ArtizA Tsuzuki Chuo Koen
6.7％
Rt-03 ArtizA Kawasaki EAST
8.6％
Rt-04 ArtizA Sobudai
8.6％

Tokai area
3,480 million yen
Rp-02 ArtizA Kamimaezu

Chugoku and Shikoku area
3,200 million yen
Rp-07 ArtizA Higashi-Shimada
3.1％
Cp-04 Yamada Denki Tecc Land Mihara Store
1.9％
Op-01 MRR Delta Building
5.3％

6.6％
Rp-05 ArtizA Higashi-Betsuin
7.9％
Rp-06 ArtizA Kamimaezu II
6.9％
Rp-07 ArtizA Chiyoda
6.3％
Hp-01 ROUTE INN Ichinomiya Ekimae
4.0％(Note) The figures in “Portfolio PML Value” indicate the PML value for the entire portfolio based on the “Portfolio Seismic Risk Analysis Review Report for 24 Properties” as of August 2019 prepared by Tokio Marine & Nichido
Risk Consulting Co., Ltd. As for Seven-Eleven Kofu Aioi 1-chome Store (land ownership interests) and Supercenter TRIAL Togitsu Store (land ownership interests), only the land ownership interests are owned and thebuildings are not owned. Therefore, they are not included in the calculation of PML value for the entire portfolio.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 24

Portfolio List (1) (fiscal period ended June 2019)(unit: million yen)
Property No.

Location

Property nameCategory

Acquisition
Price

Book value

Appraisal value(Comparison with endof previous fiscal
period)Terminal
capitalization rate

Appraisal NOI yield

Rp-01 ArtizA Sendai Kakyoin

Sendai City,
Miyagi

Residential
Properties

2,730

2,650

3,710（+70）

5.4%

7.5%

Rp-02 ArtizA Kamimaezu

Nagoya City,
Aichi

Residential
Properties

400

392

535（+10）

5.1%

6.9%

Rp-03 ArtizA Hakata Premium

Fukuoka City,
FukuokaResidential
Properties

1,060

1,018

1,250（－）

5.2%

6.7%

Rp-04 ArtizA Hakataeki-Minami

Fukuoka City,
FukuokaResidential
Properties

500

483

564（－）

5.1%

6.4%

Rp-05 ArtizA Higashi-Betsuin

Nagoya City,
Aichi

Residential
Properties

640

637

675（+7）

4.9%

5.1%

Rp-06 ArtizA Kamimaezu II

Nagoya City,
Aichi

Residential
Properties

720

729

770（－）

5.0%

5.3%

Rp-07 ArtizA Chiyoda

Nagoya City,
Aichi

Residential
Properties

980

988

1,090（－）

4.8%

5.2%

RP-08 ArtizA Higashi-Shimada

Okayama City,
OkayamaResidential
Properties

700

719

730（－）

5.2％

5.3%

Rt-01 ArtizA Ikejiri

Setagaya Ward,Tokyo

Residential
Properties

610

608

710（+28）

4.1%

4.7%

Rt-02 ArtizA Tsuzuki Chuo Koen

Yokohama City,
Kanagawa

Residential
Properties

1,050

1,080

1,120（+20）

5.1%

6.0%

Rt-03 ArtizA Kawasaki East

Kawasaki City,
Kanagawa

Residential
Properties

780

773

903（+17）

5.3%

6.7%

Rt-04 ArtizA Sobudai

Zama City,
Kanagawa

Residential
Properties

1,130

1,171

1,320（+30）

5.3%

6.8%

Residential
Properties

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 25

Portfolio List (2) (fiscal period ended June 2019)(unit: million yen)
Property No.

Category

Acquisition
Price

Book value

Appraisal NOI yield

Cp-01 MRR Omuta

Omuta City,
Fukuoka

Retailfacilities

1,265

1,221

1,280（－）

6.5%

6.9%

Cp-02 Tarumiekimae Gold Building

Kobe City, Hyogo

Retailfacilities

500

481

547（+5）

6.1%

6.6%

Cp-03 Foodaly Aoba StoreMiyazaki City,
Miyazaki

Retailfacilities

250

232

395（－）

6.3%

10.0%

Cp-04 Yamada Denki Tecc Land Mihara Store

Mihara City,
Hiroshima

Retailfacilities

2,000

1,911

2,730（－）

6.3%

8.7%

Cp-05 Yamada Denki Tecc Land Togitsu Store

Nishi-Sonogi
County,Nagasaki

Retailfacilities

950

926

1,120（－）

6.4%

7.9%

Kofu City,
Yamanashi

Retailfacilities

220

223

220（－）

7.2%

6.6%

Cp-07 MRR Kumamoto

Kumamoto City,
Kumamoto

Retailfacilities

2,120

2,147

2,380（+80）

5.9%

6.9%

Cp-08 MRR Sasebo

Sasebo City,
Nagasaki

Retailfacilities

990

997

1,270（－）

5.8%

7.4%

Cp-09 MRR Itoshima

Itoshima City,
Fukuoka

Retailfacilities

900

915

965（+10）

5.4%

5.9%

Cp-10 MRR Akita

Akita City, Akita

Retailfacilities

840

854

879（－）

6.8%

6.7%

Nishi-Sonogi
County,Nagasaki

Retailfacilities

1,150

1,170

1,200（－）

5.0%

5.0%

Hp-01 Route-Inn Ichinomiya Ekimae

Ichinomiya City,
Aichi

Hotels740

693

853（+12）

6.0%

6.9%

Op-01 MRR Delta Building

Hiroshima City,
Hiroshima

Offices

1,200

1,171

1,280（－）

5.7%

6.4%

Op-02 PLEAST Hakata Gion Bldg.

Fukuoka City,
Fukuoka

Offices

800

769

1,000（－）

5.0%

6.1%

26
properties

25,22524,97029,496

Retail Cp-06 Seven-Eleven Kofu Aioi 1-chome Storefacilities(land ownership interests)

Cp-11

HotelsLocation

Property nameAppraisal value(Comparison with end Terminal capitalizationof previous fiscal
rate
period)Supercenter TRIAL Togitsu Store(land ownership interests)

Offices

Total / Average

Copyright © Marimo Asset Management Co., Ltd.

-

6.7%

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 26

Photos of Properties (fiscal period ended June 2019)
Residential properties (12 properties)
ArtizA Sendai Kakyoin

ArtizA Kamimaezu

ArtizA Hakata Premium

ArtizA Hakataeki-Minami

ArtizA Higashi-Betsuin

ArtizA Chiyoda

ArtizA Higashi-Shimada

ArtizA Ikejiri

ArtizA Tsuzuki Chuo Koen

ArtizA Kawasaki East

ArtizA Sobudai

ArtizA KamimaezuⅡ

Retail facilities (11 properties)

Hotels (1 property)

MRR Omuta

Tarumiekimae Gold Building

Foodaly Aoba Store

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

Route-Inn Ichinomiya Ekimae

Yamada Denki Tecc Land
Togitsu Store

Yamada Denki Tecc Land
Mihara StoreMRR Kumamoto

MRR Sasebo

Offices (2properties)
MRR Delta Building

MRR Itoshima

MRR Akita

Copyright © Marimo Asset Management Co., Ltd.

Supercenter TRIAL Togitsu Store(land ownership interests)

PLEAST Hakata Gion Bldg.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 27

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 Mirai BankYour family bank
The Minchinoku 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. Furthermore, Kansai Urban
Banking Corporation merged with The Kinki Osaka Bank, Ltd. on April 1, 2019 and became Kansai Mirai Bank, Ltd.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 28

Overview of the Sponsor, Marimo
Company name

Headquarters
address
Established
Global operation
Net sales(Non-consolidated)
Business
description(Including businessdescription ofsubsidiaries)

History of Marimo

Marimo Co., Ltd.
1-17-23, Kougokita, Nishi Ward, Hiroshima

Sep. 1970

Established AI Architectural Design Co., Ltd.
(currently Marimo Co., Ltd) in Hiroshima City

Oct. 1990

Completed construction of “Grandeur Tosu,” thefirst for-sale condominium

Jan. 2009

Started the Condominium Restoration Project(purchase and resale)Aug. 2009

Established a local entity in Shanghai, China

Apr. 2010

Joined “Keyaki Avenue First-class Urban Redevelopment
Project” (Wakayama City) as the first urban redevelopment
project

Jan. 2014

Launched income property direction business on afull scale

Mar. 2014

Launched domestic for-rent condominium business

Jun. 2015

Established Marimo Asset Management Co., Ltd.
Established GM Associe Co., Ltd.

Aug. 2015

Made Prec Co., Ltd. (currently Marimo House Co.,
Ltd.) a subsidiary through M&A

Oct. 2015

Established Marimo Consulting Co., Ltd.
Made Yurick Home Co., Ltd. a subsidiary through M&A

Jul. 2016

Listing of marimo Regional Revitalization REIT, Inc.

Nov. 2016

Reorganized into a group with Marimo Holdings
Co., Ltd. as the holding company

May 2017

Began sales of 532 units out of 1,260 units in 18 buildings at“Shangya Yuan” in the 1st FP in China (All units were sold out inthe same month)

Jan. 2018

marimo Regional Revitalization REIT, Inc.
conducted public offering

September 1, 1970
Japan, China, Malaysia, etc.

43.0 billion yen (as of July 31, 2018)
Planning, development, designing, supervising and sales
business of for-sale residential properties, real estate
securitization business and sales of overseas for-salecondominiums

Track record of for-sale condominium
development(as of June 30, 2019)395 structures with 25,610 units inover 44 prefectures nationwide
Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 29

Marimo Co., Ltd. will mark its 50th anniversary in 2020
Marimo established as a design office becomes a comprehensive real estate developer

Current major business development by Marimo group Domestic for-salecondominium businessWe supply residences required in each land by
carefully examining the necessary specification andquality for each region.
Supplied 395 buildings and 25,610 units nationwide
Hiroshima City,
Hiroshima

Miyazaki City, Miyazaki■Polestar Miyazaki The Residence Urban redevelopment
business

Contributed to the revitalization of city center by utilizing
the know-how gained in for-sale condominium businessand accumulating track records in many regional cities

・Kumamoto City’s Sakuramachi District Class 1
Urban Area Redevelopment Project

 REIT business

Shibuya Ward, Tokyo■Polestar Ujina Kaigan Harbor View

■Polestar Sakae Tower Residence■Polestar Tokiwa Tower Residence

・ Sakae/Tokiwa District Category 1 Urban
Redevelopment Project “Suncle”

Improved not only real estate value throughthe renovation of retail stores, residences andoffices but also profitability and sustainability
by implementing own leasing■Ebisu-Nishi
Itchome Building

Hiroshima
City,
Hiroshima・Also acquired a narrow
land which is difficult to be
developed at a single site
after negotiating with theowner of the adjacent land
・Constructed a retailbuilding on the site andinvited DAIICHIKOSHO,the leading company in the
karaoke industry, as a new
tenant Overseas business

Sasebo City, Nagasaki

Kumamoto City,
Kumamoto■The Kumamoto Gardens

 Income property
direction business■Hotel Vista
Hiroshima
・Selected Vista HotelManagement Co., Ltd. as
the managementcompany・Developed a limitedservice hotel that can
respond also to tourism,
events, etc. whiletargeting mainly
business users

Conducted sales of residences with interior design inoverseas market. Developed “Polestar Garden” series with a
total of 12 for-sale condominiums and 853 units in China
China■Polestar Garden

・First project developed in Suzhou Industrial Park（853 units）

China■Shangya Yuan

・ Second project currently in progress inWujiang District (1,260 units)

Provided support including the supply of properties as a sponsor of marimo Regional Revitalization REIT, Inc.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 30

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

Provision of property information

CM support
PM operations

Financialadvisory andassistance

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

Kansai Mirai Banking

The Hiroshima Bank

The Ashikaga Bank

(Note) As for the ratio of investment in the asset manager, Marimo HD holds 100% as of the end of June 2019 after acquiring the portion held by The Mie Bank and The Michinoku Bank from both banks in March 2019.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 31

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 end of Mar. 2018
Tokyo metropolitan area

Regional areas

0.696

1.214

Source: Statistics by Automobile Inspection & Registration
Information Association (announced on August 15, 2018)(Example) Traffic volume in the surrounding areas of
MRR Sasebo
24-hour traffic volume
of motor vehicles

Congestion
benchmark

Closest point

50,742

1.71

Prefectural average

9,876

0.73

Attributes of existing tenants
Home appliances
32.2%

Discount store
12.6%

E-commerce resistance
51.5% of existing tenants

Sports club
10.5%

(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

1.00 or lower

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 or higher

Chronic 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

Copyright © Marimo Asset Management Co., Ltd.

Amusement 7.3%

Explanation on congestion benchmark

Closely check the traffic volume and congestion benchmark

Supermarket
6.2%
Other retail
10.2%

Services
5.2%

MedicalDrinking and 5.3%
eating2.7%
Convenience store
1.7%*Part of “Other retail” and “Supermarket” have been reclassified into
“Discount store” from September 14, 2018 to subdivide the attribute ofexisting tenants.
Apparel
6.1%

Closely check e-commerce resistancemarimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 32

B-to-C EC Market Size in Japan
Scale of B-to-C EC Market and Composition Ratio of Each Business Sector
2017

A. Retail sector

20188,600.8 billion yen(EC ratio

9,299.2 billion yen

5.79% )

(EC ratio

6.22% )

Growthrate

8.12%

5,956.8 billion yen

6,647.1 billion yen

11.6%

C. Digital-related sector

1,947.8 billion yen

2,038.2 billion yen

4.6%

16,505.4 billion yen*EC ratio is for the retail sector（%）

20,0006.22

17,984.5 billion yen

9.0%

6

5.43

14,000

4.37

4.75

5

17,985 4

3.85

12,00010,000

2.84

3.17

3.40

3

8,000

A. Retail sector

6,000

(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)

Others7

5.79

18,00016,000

B. Service-related sector

Total

Changes in Scale of B-to-C EC Market and EC Ratio (Note 2)

4,000

12,797

9,513

7,788

11,166

8,459

15,1362

16,505

13,775

1

2,000
0

0
2010

2011

2012

2013

2014

Scale of EC market (billion yen)

2015

2016

2017

2018

EC Ratio (%)(Note 2) EC ratio indicates the ratio of e-commerce market size against the transaction amount of all
types of commerce (commerce market size)
Source: “FY2018 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

B. Service-related sector

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.)

The scale of the B-to-C EC market is on an expanding trend,
but the EC ratio for the retail sector is 6.22%(Note 1) Business to consumer e-commerce is abbreviated as “B-to-C EC.”
Source: “FY2018 Survey of Infrastructure Development Status for Data-driven Society in Japan (E-CommerceMarket Survey)” by Information Economy Division, Commerce and Information Policy Bureau, Ministryof Economy, Trade and Industry

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 33

Residential Properties and Retail Facilities

Market Data
Corporate Service Index and Consumer Price Index (2000 = 100)

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

（%）

3

105

2.5
100
2
95
1.5
90

1

85

0.5
0
Residential
Properties

Retailfacilities

Hotels80

Offices2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Offices

RetailHotelsResidential

facilities

Source: Prepared by the asset manager based on the Bank of Japan’s Corporate Service Index and theStatistic Bureau’s (Ministry of Internal Affairs and Communications) Consumer Price Index(from 2000 to 2018).

properties

Source: Prepared by the asset manager based on the Bank of Japan’s Corporate Service Index and theStatistic 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

Convenience
Stores(trillion yen)50

(trillion yen)
146

45

144

40

142

140

35
130

Drug stores

140

30

138

25
120

136

20

134

15
110
100

～
～

Hardware stores
Supermarkets

132

5

130

0
Department stores

90

128

2007

2008

2009

2010

Retail industry total (right axis)

2010
2011
2012
2013
2014
2015
2016
2017
2018
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 Associationof Chain Drug Stores’ FY2017 Japan Drug Store Survey (2010 = 100).

Copyright © Marimo Asset Management Co., Ltd.

10

2011

2012

2013

2014

2015

2016

Textiles, apparel and personal effects

2017

2018

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).

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 34

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

％

(yen)

％

6

15,000

6
13,9705
4

13,68014,0003.7

3.3

13,000(yen)

3.9
3.2 3.3 3.0

12,0902.3

3
2

12,0001.1

1
0

0.7 0.5

0.3

0.9 0.8

11,00010,890Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of
fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal
2015 2015 2016 2016 2017 2017 2018 2018 201911,0802

Vacancy rate

Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of
fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal
2015 2015 2016 2016 2017 2017 2018 2018 2019

5

9,000

0

8,500

4
3
2
1

14,48014,0003.2

10,550 10,920

Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of
fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal
2015 2015 2016 2016 2017 2017 2018 2018 201911,25011,64012,27012,94015,1905
4

0.6 0.4 0.5

04.4 4.2

4.1 3.9

13,0003.4
1.8

2

12,00012,90012,70012,45012,30012,10012,05011,95011,85011,500～～0
Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of
fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal
2015 2015 2016 2016 2017 2017 2018 2018 201913,2501.2 1.0

1

2,000
0

Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of
fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal
2015 2015 2016 2016 2017 2017 2018 2018 201913,500

5.2

3

4,000

0.2

Assumed contracted rents(yen)

12,500

6,000

1.0

6

13,5908,000

2.1

10,060Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of
fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal
2015 2015 2016 2016 2017 2017 2018 2018 2019

Vacancy rate

10,0002.4

10,250
9,920
9,740

～
～

％

16,00012,00010,5009,500

Assumed contracted rents

4.7

10,540

Nagoya City

(yen)

6

10,67010,440

1

Fukuoka City％

10,89011,00010,00010,000～～9,000

2.8 3.0 2.8

3.2

311,52010,65011,42011,500

4

12,59012,0005.1

513,360Assumed contracted rents

11,000Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of
fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal
2015 2015 2016 2016 2017 2017 2018 2018 2019

Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of Q3 of Q1 of
fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal fiscal
2015 2015 2016 2016 2017 2017 2018 2018 2019

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)

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 35

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 2018; unit: thousand people)

Occupancy Rate by Facility Type

80.0%

(Thousand people)

UP 31.5％

75.7%
72.5%

79.2%

78.7%

79.5%

79.9%

74.2%

74.4%

75.3%

75.3%

60.3%

59.7%

60.5%

61.1%

56.0%

56.9%

37.0%

37.1%

37.5%

2015

2016

2017

77.3%
72.1%

69.5%

70,000
70.0%

67.3%

60,00050,000UP 20.3％

40,00030,000

60.0%

57.4%
54.8%

45,65452,96555.2%

60,042
52.3%

50.0%

20,00023,731

10,00025,037

54.0%

40.0%

Regional
地方areas2016年
2016Tokyo metropolitan
area
東京圏
2017年
2017

2018年
2018

35.5%

33.4%

～
～

Source: Prepared by the asset manager based on “Overnight Travel Statistics Survey” by
the Japan Tourism Agency, Ministry of Land, Infrastructure, Transport and Tourism

Copyright © Marimo Asset Management Co., Ltd.

35.2%

39.0%

30.0%
2012

Regional areas: All areas other than the Tokyo metropolitan area
Tokyo metropolitan area: Tokyo, Chiba, Kanagawa and Saitama prefectures

58.3%

48.0%

28,547

0

57.5%

2013

2014
Total

RyokanResort hotels

Business hotels

2018年

City hotels

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 36

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 6th FP)

6th FP
results*Total amount of dividends (including dividends in excess of earnings)＝74.8%Net income + depreciation
Retained earnings
107 million yen

Real estateappraisal value atthe end of FP
29,496 million yen

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

Total book valueof real estate, etc.
24,970 million yen(Of which, retained earnings
for repair 12 million yen)

Depreciation
221 million
yen

Capital expenditure
48 million yen

30% or less

Net income
396 million
yen

Dividends inexcess of earnings
66 million yen

Dividends ofearnings
396 million
yen

Distribution(Note) The above figures are as of the end of the 6th 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.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 37

Balance Sheet and Statement of Income
for the 6th Fiscal Period
Statement of Income
for the 6th fiscal period

Balance Sheet for the 6th Fiscal Period (June 30, 2019)
Current assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust,net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust,net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
SoftwareTotal intangible assets
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Guarantee deposits
Lease and guarantee deposits in trust
Total investments and other assets
Total non-current assets
Deferred assets
Investment unit issuance expenses
Total deferred assets
Total assets

1,086,844
1,935,258
7,729
29,236
5,121－
3,064,189

11,649,518(1,050,836)
10,598,682
270,705(31,442)
239,262
118,437(15,911)
102,525
24,066(2,770)21,296
14,004,270－
24,966,037
3,967
2,360
6,327
25,26914
10,00013,50048,78325,021,148
16,887
16,887
28,102,226

Copyright © Marimo Asset Management Co., Ltd.

Liabilities
Current liabilities
Operating accounts payable
Short-term loans
Current portion of long-term loans
payableAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Current portion of tenant leasehold
and security deposits in trust
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Tenant leasehold and security
deposits in trust
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’capitalAllowance for temporary
difference adjustments
Other deduction fromunitholders’ capital
Total deduction fromunitholders’ capital
Unitholders’ capital, net
Surplus
Unappropriated retained
earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

119,623700,000
3,360,000
133,554899－
177,164
49,321
24,8594,565,423
9,727,500
1,239,750
18,261
43
10,985,555
15,550,97812,412,622(5,342)(252,456)(257,799)
12,154,823
396,424
396,424
12,551,247
12,551,247
28,102,226

From January 1, 2019 toJune 30, 2019

Operating revenue
Lease business revenue
Other lease business revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensations
Taxes and dues
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Interest on refund
Insurance income
Total non-operating income
Non-operating expenses
Interest expenses
Borrow ing related expenses
Amortization of investment unit issuance
expenses
Other
Total non-operating expenses
Ordinary income
Net income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Retained earnings brought forw ard
Unappropriated retained earnings(undisposed loss)

1,066,125
54,9081,121,033
490,041
98,145
1,396
14,131
2,400
10,91632,422649,455
471,578
14
－
1,258
1,272
50,80919,1285,629－
75,567397,283
397,283902(1)
900396,38241
396,424

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 38

Balance of Individual Properties (1) (Ended June 30, 2019)
Regional area

Investment area
Property no.

Rp-01

Rp-02

Rp-03

Property name

ArtizA Sendai
Kakyoin

ArtizA
Kamimaezu

ArtizA Hakata
Premium

Acquisition dateAug. 1, 2016

Aug. 1, 2016

Aug. 1, 2016

Acquisition price

Price
Investment ratio
information
Period-end book value (Note 1)

Aug. 1, 2016

Jun. 1, 2017

Jan. 23, 2018

Jan. 23, 2018

Jan. 4, 2019

400

1,060

500

640

720

980

700

10.8

1.6

4.2

2.0

2.5

2.9

3.9

2.8

392
1,096.48
1,096.48

1,018
3,804.39
3,707.19

483
1,691.50
1,691.50

637
1,336.50
1,287.00

729
1,557.90
1,493.66988
2,062.06
2,062.06719
1,809.60
1,774.80

100

97.4

100

96.3

95.9

100

98.1

(million yen)

(Note 1)

(m2)

Occupancy rate (Note 1)

(%)

98.8

(1) Number of operating days

Balance(Note 2)

Rp-08

2,730
2,650
9,810.37
9,696.37(2) Total lease business revenue
Lease businessrevenue
Other lease businessrevenue(3) Total lease business expenses

Rp-07

Rp-06

(%)

(m2)

Leasing Leased area
information

Rp-05(million yen)

(Note 1)

Leasable area

Rp-04

ArtizA HigashiArtizA Hakataeki- ArtizA HigashiArtizA
ArtizA Chiyoda
Kamimaezu II
MinamiBetsuin
Shimada181 days(thousand yen)(thousand yen)

181 days

181 days

181 days

178 days

133,587

181 days
18,066181 day
48,525181 days
22,944

22,28523,06135,151

26,674125,970

17,76547,154

21,66621,16421,98034,36525,198

7,616

300

1,370

1,277

1,121

1,080

785

1,476

28,164

3,575

10,674

6,915

5,806

8,531

6,956

5,061

Management fees

12,842

1,455

3,897

2,232

1,884

4,249

2,223

3,633

Taxes and public dues

7,684

1,341

3,261

1,561

1,619

1,751

2,573

－

Utility costs

922

151

426

345

167

180

184

167

Repair costs

5,979

289

2,518

1,981

941

1,552

279

511

Insurance fees

242

39

114

43

73

59

85

10

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

220

225

220

220

225

225

225

219

273

73

237

531

894

512

1,373

517

14,49037,85016,02816,47914,52928,195

21,613(thousand yen)

105,423(5) Depreciation(6) Lease business income(thousand yen)

29,887

4,453

16,486

7,075

6,569

6,238

9,170

7,622

(thousand yen)

75,535

10,037

21,363

8,953

9,910

8,291

19,025

13,990(7) Capital expenditures(thousand yen)

4,105

895

9,363

2,471

－

－

－

－

(8) NCF ( = (4) – (7) )(thousand yen)

101,317

13,59428,487

13,557

16,47914,52928,195

21,613( = (4) – (5) )(Note 1) Figures are as of the end of the 6th Fiscal Period.
(Note 2) The balance is for the 6th Fiscal Period.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 39

Balance of Individual Properties (2) (Ended June 30, 2019)
Investment area
Property no.

Cp-01
MRR
Omuta

TarumiekimaeGold Building

Foodaly Aoba
Store

Acquisition dateAug. 1, 2016

Aug. 1, 2016

Aug. 1, 2016

Acquisition price(million yen)

Period-end book value (Note 1)(million yen)

1,265

(%)

950

220

1.0

7.9

3.8

0.9

1,911
11,579.19
11,579.19926
5,998.15
5,998.15

223
904.27904.27

100

100

100

100

100

(m2)

Occupancy rate (Note 1)

(%)

87.3
181 days(thousand yen)

2,000

Aug. 1, 2016

232
1,729.30
1,729.30(Note 1)

Lease business revenue

Aug. 1, 2016

Aug. 1, 2016

2.0

(m2)

(2) Total lease business revenue

250

Cp-06

481
678.57678.57(Note 1)

(1) Number of operating days

500

Cp-05

Seven-Eleven Kofu
Yamada Denki
Yamada Denki
Aioi 1-chome Store
Tecc Land Mihara Tecc Land Togitsu(land ownership
Store
Store
interests)

5.0
1,221
6,485.11
5,658.66

Leasable area

181 days

181 days

181 days

181 days

181 days

53,721

21,10916,308

*

*

7,800

53,673

19,43416,308

*

*

7,800

48

1,674

－

－

－

－

10,169

5,034

3,581

*

*

768

Management fees

2,266

1,199

489

*

*

234

Taxes and public dues

4,783

719

1,110

8,681

3,033

294

Utility costs

79

1,277

－

－

－

－

Repair costs

66

1,550

－

－

－

－

Insurance fees

544

31

53

466

298

－

Trust fees

225

220

220

220

225

220

Other lease business revenue(3) Total lease business expenses

Balance(Note 2)

Cp-02

Property namePrice
information Investment ratio
Leasing Leased area
information

Regional area
Cp-03
Cp-04

(thousand yen)

Other lease business expenses

2,203

36

1,708

19

3,853

19

(4) NOI ( = (2) – (3) )(thousand yen)

43,552

16,074

12,726

*

*

7,031

(5) Depreciation(thousand yen)

14,768

4,947

3,922

18,6956,303－(6) Lease business income ( = (4) – (5) )(thousand yen)

28,783

11,127

8,803

*

*

7,031

(7) Capital expenditures(thousand yen)

－

3,440

－

－

－

－

(8) NCF ( = (4) – (7) )(thousand yen)

43,552

12,634

12,726

*

*

7,031

* 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 6th 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 6th Fiscal Period.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 40

Balance of Individual Properties (3) (Ended June 30, 2019)
Investment area
Property no.

Cp-07

Cp-11

MRR
Kumamoto

MRR
SaseboMRR
Itoshima

MRR
Akita

Acquisition dateJan. 23, 2018

Jan. 23, 2018

Jan. 23, 2018

Jan 23, 2018

Jan. 23, 2018

Period-end book value (Note 1)(million yen)

2,120

990

900

840

1,150

8.4

3.9

3.6

3.3

4.6

997
5,070.01
5,070.01915
2,842.78
2,842.78854
8,416.10
8,416.10

1,170
13,719.74
13,719.74

100

100

100

100

(%)
(million yen)

(Note 1)

(m2)

(Note 1)

(m2)

2,147
11,157.71
11,157.71

Occupancy rate (Note 1)

(%)

100

Leasing
Leased area
information

Cp-10

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

181 days(thousand yen)

181 days

181 days

181 days

181 days

118,441

55,59340,47332,133

Lease business revenue

104,381

49,28832,855

32,101*Other lease business revenue

14,060

6,305

7,617

32

－

(3) Total lease business expenses

Balance(Note 2)

Cp-08

Supercenter
TRIAL TogitsuStore(land ownershipinterests)

Price
information Investment ratio
Leasable area

Regional area
Cp-09

(thousand yen)*

44,647

16,79912,5784,266*Management fees

14,019

6,085

3,067

963

*

Taxes and public dues

10,774

4,492

2,145

1,568

3,075

Utility costs

16,371

5,098

6,564

－

－

Repair costs

2,213

545

118

277

－

Insurance fees

967

316

413

33

－

Trust fees

250

225

250

225

225

Other lease business expenses

51

36

19

1,200

－

(4) NOI ( = (2) – (3) )(thousand yen)

73,79438,79427,894

27,866*(5) Depreciation(thousand yen)

19,904

6,559

3,328

994

－

(6) Lease business income ( = (4) – (5) )(thousand yen)

53,88932,23524,566

26,872*(7) Capital expenditures(thousand yen)

4,958

－

3,453

－

－

(8) NCF ( = (4) – (7) )(thousand yen)

68,83538,79424,44027,866** Figures are undisclosed as the consent of the tenant could not be obtained.
(Note 1) Figures are as of the end of the 6th Fiscal Period.
(Note 2) The balance is for the 6th Fiscal Period.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 41

Balance of Individual Properties (4) (Ended June 30, 2019)
Investment area
Property no.

ArtizA Ikejiri

ArtizA Tsuzuki
Chuo Koen

ArtizA Kawasaki
East

ArtizA
SobudaiAug. 1, 2016

Aug. 1, 2016

Aug. 1, 2016

Property name

MRR Delta
Building

Acquisition dateAug. 1, 2016

Aug. 1, 2016

Aug. 1, 2016

Aug. 1, 2016

Period-end book value (Note 1)

740

1,200

800

610

1,050

780

1,130

(%)

2.9

4.8

3.2

2.4

4.2

3.1

4.5

693
3,860.81
3,860.81

1,171
3,053.57
3,053.57

769
1,931.47
1,931.47

608
641.16641.16

1,080
3,731.75
3,668.33

773
3,055.80
3,055.80

1,171
5,703.73
5,703.73(million yen)

(Note 1)

(m2)

(Note 1)

(m2)

Occupancy rate (Note 1)(%)(2) Total lease business revenue

100
181 days(thousand yen)

Lease business revenue
Other lease business revenue(3) Total lease business expenses

Rt-04(million yen)

(1) Number of operating days

(thousand yen)Management fees

100

100

100

98.3
181 days

100
181 days

100

181 days

181 days

181 days

181 days*

56,04230,00017,84041,98230,07351,901*

51,09230,00017,06039,49730,07349,975

－

4,950

－

780

2,484

－

1,925

*

15,470

5,518

4,572

13,0283,674

20,466

*

3,803

2,319

2,383

5,065

1,062

6,440

3,951

5,058

2,443

774

2,876

2,313

3,720

Utility costs

－

5,517

－

149

262

－

493

Repair costs

－

429

218

967

4,186

－

8,720

Insurance fees

204

179

174

45

109

73

186

Trust fees

225

220

220

225

225

225

225

Taxes and public dues

Balance(Note 2)

Rt-01

PLEAST
Hakata Gion
Bldg.

Acquisition price

Leasing Leased area
information

Tokyo metropolitan area
Rt-02
Rt-03

Op-02

Route-Inn
Ichinomiya
EkimaePrice
information Investment ratio
Leasable area

Regional area
Op-01

Hp-01

－

262

142

27

304

－

680

(4) NOI ( = (2) – (3) )(thousand yen)*

40,572

24,481

13,26828,953

26,39931,435(5) Depreciation(thousand yen)

10,776

14,594

6,802

2,462

3,460

5,301

10,754(6) Lease business income ( = (4) – (5) )(thousand yen)*

25,977

17,67910,80525,49321,097

20,681(7) Capital expenditures(thousand yen)

5,750

7,182

－

－

995

－

5,844

(8) NCF ( = (4) – (7) )(thousand yen)*

33,39024,481

13,26827,95826,39925,590

Other lease business expenses* Figures are undisclosed as the consent of the tenant could not be obtained.
(Note 1) Figures are as of the end of the 6th Fiscal Period.
(Note 2) The balance is for the 6th Fiscal Period.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 42

Status of Investment Unitholders (as of end of June 2019)
Ratio of Unitholders by Number(8,491 unitholders in total)

Name of unitholder

Rank

Financial

Number of
Ownership
investment
ratio
units

institutions（0.4％ → 0.5％）
ForeignCompanies, etc.

1

Marimo Co., Ltd.

13,950

10.5%

2

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

9,996

7.6％

3

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

8,908

6.7％

4

Japan Trustee Services Bank, Ltd.
(trust account)

7,233

5.5％

5

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

4,166

3.1％

6

Mitsubishi UFJ Securities Holdings Co., Ltd.

1,786

1.3％

7

JPMorgan Securities Japan Co., Ltd

1,686

1.3％

8

Morgan Stanley MUFG Securities Co., Ltd.

1,178

0.9％

9

BNY FOR GCM CLIENT ACCOUNTS （E） BD

1,132

0.9％

10

The ICHII SHINKIN BANK

1,091

0.8％

51,12638.6%（0.6％ → 0.6％）
Otherdomestic
entities（1.6％ → 1.5％）

Individuals,
others（97.4％ → 97.4％）

Ratio of Investment Units by Number(132,340 units in total)
ForeignCompanies, etc.
（2.9％ → 3.5％）
Other domestic
entities（16.1％ → 15.7％）(Note 1)

Financial

institutions（29.0％ → 30.6％）

Individuals,
others（52.0％ → 50.2％）

Total(Note 2)

(Note 1) The ratio for financial institutions includes the ownership of securities companies.

Copyright © Marimo Asset Management Co., Ltd.

(Note) Calculated by dividing the 51,126 investment units owned by the top 10 unitholders by the 132,340 investment
units issued and outstanding, and rounded to the first decimal place.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 43

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.
Asset Manager: Marimo Asset Management Co., Ltd. (Financial Instruments Business Operator (No. 2885 issued by the DirectorGeneral of the Kanto Finance Bureau (Kinsho)) and a member of the Investment Trusts Association)
For inquiries concerning the materials: IR Department, Marimo Asset Management Co., Ltd.
Mail: info@marimo-am.co.jp
Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 44

MEMO

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 45MEMO

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 46

MEMO

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 47

Regional areas have hidden potential

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 6th FP Presentation Material l 48