8th Fiscal Period (Ended June 30, 2020)

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

marimo Regional Revitalization REIT, Inc.
marimo Regional
Revitalization
REIT,
Inc. 8th
FPManagement
Presentation Material(AssetManager)
MarimoAssetCo., Ltd.l 1

Table of Contents
Overview of Second Public Offering3

Summary of Financial Results for
8th Fiscal Period

7

Management Results for 8th Fiscal Period

14

Newly Acquired Properties and Asset Size

20

● Overview of Second Public Offering andChange in Investment Unit Price● Overview of Newly Acquired Assets● Portfolio Changes● 8th Fiscal Period Financial Highlights● Impact of COVID-19● Investment Strategies for Post-COVID-19● 8th Fiscal Period Forecasts and Results● 9th Fiscal Period and 10th Fiscal Period
Earnings Forecasts● Changes in Dividends per Unit and NAV● Pursuing Increase of Asset Value (1)● Pursuing Increase of Asset Value (2)● Maintaining Stable Average Occupancy Rate
● Financial Status (8th Fiscal Period)● IR Activities● ArtizA Tsurumai● ArtizA Awajieki-higashi● ArtizA Matsumoto● MRR Akita Ⅱ● MRR Ichihara (land ownership interests)● K’s Denki Kitamoto Store (land ownership interests)● Steady Expansion of Asset Size
● Sponsor Pipeline● Portfolio List (1)● Portfolio List (2)Copyright © Marimo Asset Management Co., Ltd.

Appendix● Property Introduction (1)● Property Introduction (2)● Overview of marimo REIT
● Basic Principle of marimo REIT
● System of Sponsor and Supporting
Companies● Overview of the Sponsor, Marimo● Introduction of Marimo group● ESG Initiatives● 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● Portfolio Map● Photos of Properties● Balance of Individual Properties (1)● Balance of Individual Properties (2)● Balance of Individual Properties (3)● Balance of Individual Properties (4)● Balance Sheet and Statement of Income
for the 8th Fiscal Period● Status of Investment Unitholders● Disclaimer

31

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 2

01

Overview of Second
Public Offering

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 3

Overview of Second Public Offering and Change in
Investment Unit Price
Steadily increased the investment unit price and conducted the second public offering
Exceeds TSE REIT Index by(%)

Type ofoffering

Primary offering andthird-party allotment

170.0

As of the end of 6th FP
NAV per unit: 125,547 yen(Note 1)

160.0
Total amountof offering

2,554 million yen

Pricing date
January 14, 2020

39.3%

128,800 yen
Comparison with theprice at listing＋58.0%

150.0(includes third-party allotment)

140.0
Number of
newly issued
investment
units

20,340 units(includes third-party allotment)

130.0

At listing(July 29, 2016)
81,500 yen
June 30, 2020
106,600 yen
Comparison with theprice at listing＋30.8%

120.0
110.0

Propertyacquisition
price4,950 million yen

100.0
90.0

Issue price

125,580 yen

80.0July 29, 2016
TSE REIT Index
1,869.32pt

June 30, 2020
TSE REIT Index
1,666.83pt（-10.8%）

70.0
Propertyacquisitionand delivery
date

January 21, 2020

60.0
marimo Regional Revitalization REIT~~

TSE REIT Index(Note 2)50.0
Same-boat
investment
ratio

10.5%
(before 2nd public offering 10.5%)

End ofDec. 2016(Note 1)
(Note 2)

Copyright © Marimo Asset Management Co., Ltd.

End ofJun. 2017

End ofDec. 2017

End ofJun. 2018

End ofDec. 2018

End ofJun. 2019

End ofDec. 2019

End ofJun. 2020

NAV per unit is calculated with the following formula: (Net assets – Total dividends + Unrealized gain) / Number of investment units issued
and outstanding. The same shall apply hereinafter.
The graph shows change over time and is based on the closing price of the TSE REIT Index on the Tokyo Stock Exchange on July 29, 2016,
where the closing price is adjusted so that it becomes the same as marimo REIT’s investment unit price at the time of listing of 81,500 yen .

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 4

Overview of Newly Acquired Assets (Note 1)(as of the acquisition date)
Secured profitability and stability through regional investment centering on properties developed and owned by the sponsors
Total acquisition price (Note 2)

Total appraisal value (Note 3)

Ratio of unrealized gain (Note 4)

4,950 million yen

5,727 million yen

15.7%

Average building age (Note 5)

Average appraisal NOI yield (Note 6)

Average appraisal NOI yield after
depreciation (Note 7)

9.2 years

5.6%

4.7%

Asset type
Residential
property
Residential
property
Residential
property

Retail facility
Retail facility

Retail facility

Newly acquired assets

Location

Nagoya City,
Aichi
Osaka City,
ArtizA Awajieki-higashi
Osaka
Matsumoto City,(Note 8)ArtizA Matsumoto
NaganoAkita City,MRR Akita Ⅱ(Note 8) Akita
MRR Ichihara (landIchihara City,
ownership interests) (Note 8) Chiba
ArtizA Tsurumai

K’s Denki Kitamoto Store(land ownership interests)

Kitamoto City,
SaitamaAcquisition
price(million yen)Appraisal value(million yen)Appraisal
NOI yield(%)

Constructed

Acquisition channel(Note 9)(Note 10)

430

468

5.0

Feb. 2019 Developed by sponsor

1,180

1,290

5.0

Oct. 2019 Developed by sponsor

640

665

7.0

Mar. 1998

Warehousing

970

994

7.1

(1) Mar. 2004
(2) Apr. 1985

Warehousing

700

1,190

5.0

-

Warehousing

1,030

1,120

4.9

-

Asset manager’s
independentacquisition channel

4,950

5,727

5.6

-

-

(Note 8)

Total
(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)(Note 10)-

“Newly acquired assets” are the 6 properties that marimo REIT acquired on January 21, 2020, and “owned assets” are properties that marimo REIT owns other than the newly acquired assets. The same shall apply hereinafter.
Acquisition price is the sales price recorded in each sale and purchase agreement for trust beneficiary interest in the assets owned or acquired, rounded down to the nearest million yen. The same shall apply hereinafter.
Appraisal value is the appraisal value indicated in each of the real estate appraisal reports dated November 30, 2019 for newly acquired assets.
Ratio of unrealized gain is the ratio of unrealized gain as of the relevant date divided by the total book value amount. Moreover, unrealized gain is the amount obtained when subtracting the total acquisition price from the total realestate appraisal value as recorded in the real estate appraisal reports dated November 30, 2019, for each newly acquired assets. Please note that there is no guarantee that this unrealized gain will arise.
Average building age is the weighted average of the building ages as of November 30, 2019, by acquisition price. If multiple buildings exist on a single property, the age of the building with the largest gross floor area is used to
calculate the age of the property.
(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.
Average appraisal NOI yield after depreciation refers to the ratio of the total amount calculated when appraisal NOI is subtracted by the amount of actual or expected depreciation of all assets, against total acquisition price at eachpoint in time.
(Tentative name) ArtizA Matsumoto, (Tentative name) MRR Akita II, (Tentative name) MRR Ichihara (land ownership interests), and (Tentative name) MRR Kitamoto (land ownership interests) changed their names to ArtizA
Matsumoto, MRR Akita II, MRR Ichihara (land ownership interests), and K’s Denki Kitamoto Store (land ownership interests), respectively . The same shall apply hereinafter.
As there are two buildings on the property of MRR Akita II, two dates are listed for construction completion.
Properties developed by the sponsor are described as “Developed by sponsor,” properties owned at one point by the sponsor (properties utilizing the sponsor’s warehousing function) are described as “Warehousing,” andproperties scheduled to be acquired through the asset manager’s own channel are described as “Asset manager’s independent acquisition channel.”

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 5

Portfolio Changes
 Changes in Portfolio Indicators
End of
7th FP
Number ofproperties

Investment Ratio by Type (based on acquisition price)

Newly acquired
assets25

6

End of
8th FP
31

As of the end of 7th FP

As of the end of 8th FP

Offices
8.0%

Offices
6.7%

Hotels3.0%

Total acquisition
price

25,005

4,950

29,95529,4795,727

35,542Average appraisal
NOI yield

6.7%

5.6%

6.6%

Average appraisal
NOI yield after
depreciation

4.9%

4.7%

5.0%

(million yen)

(Note 1)

Average building age

Average occupancy
rate

Residential
RetailResidential
Retail14.2 years

98.8%

9.2 years

98.1%

98.1%

Investment Ratio by Region (based on acquisition price)
As of the end of 8th FP

Tokyo
metropolitan
area 14.3%

Kinki
2.0%

Kyushu/Okinawa
39.9%

Chugoku/
Shikoku
15.6%

Tokai
13.9%

49.3%

－

48.5%

Focusing on
profitability

Residential
45.2%

Residential
45.2%

Koshinetsu/
Hokuriku/Kanto(excluding Tokyo
metropolitan area)
2.1%

Tokyo
metropolitan
area 17.7%

Focusing on
diversificationof areas

Kyushu/Okinawa
33.3%

Kinki
5.6%

(Note 2) (Note 3)

LTV to total assets

90.8%

Focusing on
stability

As of the end of 7th FP

14.1
years

Retail45.6%

Hotels2.5%

89.1%(million yen)

Total appraisal value

Retail43.9%

Hokkaido/
Tohoku 14.3%

Chugoku/
Shikoku
13.0%
Tokai
13.1%

Hokkaido/
Tohoku 15.2%

Tokyo metropolitan area
Regional areas (areas other than Tokyo metropolitan area)(Note 1) Total appraisal value indicated for End of 7th FP is the total amount of the appraisal value indicated in the real estate appraisal reports dated December 31, 2019 for owned assets, thevalue indicated for newly acquired assets is the total amount of the appraisal value indicated in the real estate appraisal reports dated November 30, 2019 for newly acquired assets, andthe value indicated for End of 8th FP is the total amount of the appraisal value indicated in the real estate appraisal reports dated June 30, 2020 for owned assets and newly acquired
assets.
(Note 2) Average occupancy rate for End of 7th FP is the occupancy rate for owned assets as of December 31, 2019, the rate for newly acquired assets is the rate as of November 30, 2019, andthe rate for End of 8th FP is the rate as of June 30, 2020.
(Note 3) Of the acquired assets, ArtizA Awajieki-higashi was completed in October 2019 and is currently being leased up. In terms of ArtizA Awajieki-higashi, for the period between January 21, 2020,
and the end of June 2020, the trustee of the property and Marimo Co., Ltd. have concluded a fixed-rent master lease agreement which details that Marimo Co., Ltd. shall pay the trustee theequivalent of 95% of rent of the expected rental income during full occupancy regardless of the amount of rent that Marimo Co., Ltd. collects from the end tenant, and for the purposes ofcalculating the average occupancy rate, the actual occupancy rate will be applied for AritzA Awajieki-higashi when its occupancy rate exceeds 95% and 95% will be applied based on the fixedrent master lease agreement when its occupancy rate falls below 95%. Hereinafter, the same shall apply to the average occupancy rate including ArtizA Awajieki-higashi.

Copyright © Marimo Asset Management Co., Ltd.

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

02

Summary of Financial Resultsfor 8th Fiscal Period

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 7

8th Fiscal Period

Financial Highlights (period ended June 2020) The impact of the COVID-19 is minor and the impact on dividends is limited
 Newly acquired 6 properties through the second public offering and both asset size and dividends havegrown.
 LTV to total assets improved by 0.8%, realizing financial stability.
85% UP fromthe time oflisting

Asset size
End of 8th FP

End of 7th FP

25.005 billion yen→ 29.955

End of 8th FP

End of 7th FP
billion yen

Dividends per unit

0.9%
UP

128,027 yen→ 134,365

Net assets per unit●

Results of the 8th FP→ 3,494

Forecasts for the 8th FP (Note 1)

3,463 yen

Ratio of unrealized gain (Note 2)

yen
Highestsince
listing

20.0%→ 20.7

%

yen
3.8%
UP

End of 8th FP

End of 7th FP

94,355 yen→ 97,905

LTV to total assets

End of 8th FP

End of 7th FP

Increasing for
7 consecutive
fiscal periods

NAV per unit

yen
0.8%
DOWN

End of 8th FP→ 48.5End of 7th FP

49.3%

%

(Note 1) The forecast for the 8th Fiscal Period is the forecast announced on February 18, 2020 (includes dividends in excess of earnings).
(Note 2) “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 is rounded to the first decimal
place. The figure does not guarantee the amount of profit calculated with the ratio.

Copyright © Marimo Asset Management Co., Ltd.

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

Impact of COVID-19
Dealt most requests with rent payment deferral,
so the impact on dividends is limited
Investment Ratio by Type (based on rent)

Investment Ratio by Type (based on rent)

Tenant marimo REIT dealt with

Tenants who requested
for rent reduction

3.6%

27.1%

(1) Dealt most with partial payment deferral ofmonthly rent
(2) Dealt with tenants who suspended theirbusinesses by partially providing free rent

・Restaurants
4・Service
6・Retail
8
Total 18

Policy in dealing
with tenants

Offices
7.8%

Decide policy by considering thefollowing factors

Residential
42.8%(Note)

Retail + Hotels
49.4%

・ Recent earnings
・ Rate of decrease in sales
・ Financial status
・ Type of agreement
・ Days closed
・ Hotel rent analysis(Occupancy rate, RevPAR, etc.)
・ Impact on operation of marimo
REIT⇒ No tenants received rent
reduction
Offices
7.8%

Residential
42.8%

Retail + Hotels
49.4%

All retail facilities and hotels have fixed-rentlease agreements(Note) The pie charts on this page are created to show “Investment Ratio by Type (based on rent)” and differ from the pie charts on page 6, which show “Investment Ratio by Type(based on acquisition price)”.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 9

Investment Strategies for Post-COVID-19
Strategically invest by taking advantage of the characteristics of the diversified REIT
while based on properties developed by the sponsor
Pre-COVID-19(Investment criteria)

Post-COVID-19•

Invest in properties that are expected to have relatively
stable leasing demand and rent level and also canmaintain competitiveness in comparison withneighboring competitive properties

Proactively consider those developed by sponsor
and those acquired from external parties as stableassets•Invest in properties in locations rated highly based on
trade area analysis, properties with promising
management stability and asset value, and properties
that have major tenants closely related to daily living in
the region and expected to have stable purchasedemand, by considering the location conditions, visibility,competition status in the surroundings and other factors

While the number of players investing in retailfacilities is declining nationwide, pay attention totenants with flexible price and stable sales, andconsider aggressive acquisitions

Invest in properties in locations where accommodation
demand can be expected, such as in front of stations,airports, tourist destinations, business districts,
downtown areas, and near transportation hubs such as
terminal stations

Adopt a negative attitude in considering hotels while
paying close attention to the operating status andsupply/demand trends in the area

Invest in properties located within a 5-minute walk fromthe nearest station or located in business districts
Invest in properties with a certain degree of liquidity andhave a high degree of corporate concentration andstrong demand from tenants

Select areas with high office needs and makeinvestment by carefully selecting properties whileconsidering the impacts of working from home, etc.

Residential
properties

Retailfacilities•
Hotels•
Offices•

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 10

8th Fiscal Period

Forecasts and Results (period ended June 2020)(million yen)

8th FP

8th FP

Variation

Forecasts (Note 1)(A)

Results(B)(B) - (A)(million yen)

Operating revenue (Note 2)

1,257

1,265

+8

Operating income (Note 2)

563

571

+7

461

468

+7

467

+7

Ordinary income (Note 2)

460

Net income (Note 2)

Factors
Operating revenue+8

Increase in rent

+3

(PLEAST Hakata Gion Building: Switched from subleasing
the entire building to individual leases)(ArtizA Awajieki-higashi: Occupancy rate exceeded therent guarantee (95% occupancy))

Increase in other income+7(Income from key money, restoration costs, etc.)

Decrease in utilities revenue(MRR Kumamoto, MRR Itoshima etc.)-4

Increase in income other thanthose listed above+2

Operating expenses

0

Increase in repair costs-8

Reduction in utilities expenses+6(ArtizA Kamimaezu, MRR Sasebo, etc.)

EPU UP 1.6%

(MRR Kumamoto, MRR Itoshima, etc.)(yen)

Dividends per unit
(excluding dividends
in excess of earnings) (1)3,014

Dividends in excess ofearnings per unit (2)449

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

3,063
431

+49
-18

(Note 3)

3,494

3,463

(Note 1) Announced on February 18, 2020
(Note 2) Rounded down to the nearest specified unit

Copyright © Marimo Asset Management Co., Ltd.

DPU UP 0.9%+31Reduction in outsourcing
expenses+2(ArtizA Awajieki-higashi, etc.)

Reduction in insurance fees
Increase in expenses other thanthose listed above+1

Non-operating expenses-1

Increase in borrowing related
expenses-1(Note 3)
Payout ratio before adjustment
76.0%
Payout ratio after adjustment
75.0%
Dividend ratio (against ratio of depreciation) 27.0%-1(Note) + indicates net income
increasing factor- indicates net income
decreasing factor

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 11

9th Fiscal Period (ending December 2020) and 10th Fiscal Period (ending June 2021)

Earnings Forecasts (Note 1)
8th FP

9th FP

Variation

10th FP

Variation

Results (A)Forecasts (B)( B ) - ( A)

Forecasts (C)(C) - (B)Operating revenue (Note 2)

1,265

1,283

+17

1,283

0

Operating income (Note 2)

571

575

+4

563

-11

(million yen)

Ordinary income (Note 2)

468

471

+2

461

-10

Net income (Note 2)

467

470

+2

460

-10

(yen)

Dividends per unit
(excluding dividends in excess ofearnings) (1)3,063

Dividends in excess ofearnings per unit (2)431

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

3,494(Note 1)
(Note 2)

3,082
425

+19

3,015
449

-6

The forecasts for the 9th Fiscal Period and 10th Fiscal Period
do not guarantee actual results.
Rounded down to the nearest specified unit

+24

(Note 4)(Note 3)

3,507

-67

+13

3,464

-43

(Note 3)(Note 4)

Payout ratio before adjustment
76.1%
Payout ratio after adjustment
75.0%
Dividend ratio (against ratio of depreciation) 26.7%

Payout ratio before adjustment
75.6%
Payout ratio after adjustment
75.0%
Dividend ratio (against ratio of depreciation) 28.0%

Assumptions for the forecasts
for the 9th FP and 10th FP

Forecasts for 9th FP
Operating revenue
Increase in rent
Increase in rental income
Increase in income otherthan the above(million yen)

+17

(due to rent calculated ona daily basis for six
properties acquired in theprevious fiscal period)

Operating expenses
Increase in utilities expenses
Increase in asset management fee
Reduction in outsourcing expenses
Reduction in repair costs
Increase in expenses other than those
above

+7
+5
+5

13
-11
-10
+5
+5
-2

Forecasts for 10th FP
Operating expenses-11

Increase in fixed asset tax
Reduction in utilities expenses
Increase in repair costs
Increase in expenses other than those
above

-15
+9
-8
+3

Non-operating expenses+1

Increase in investment unit issuance
expenses
Increase in borrowing related expenses+5-4(Note) + indicates net income
increasing factor- indicates net income
decreasing factor

Reference(Comparison with normalized dividends per unit)

3,464 yen
+64 yen3,400 yenNormalized dividends
Normalized dividends
第4期予算（注3)
第6期予算
beforepublic offeringafter
public offering
Announced on
Announced on
August 19, 2019
August 19, 2020
Forecasts for 8th FP
Forecasts for 10th FP

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 12

Changes in Dividends per Unit and NAV
Stable dividends and steady growth of EPU

 Changes in Dividends per Unit(yen)

+31 yen (+0.9%)

Dividends in excess ofearnings per unit

3,462

3,431

3,441

3,445

3,494

3,504

3,463

3,494

3,507

3,464

521

544

459

460

499

496

449

431

425

449

2,941

2,887

2,982

2,985

2,995

3,008

3,014

3,063

3,082

3,015

予想
Forecasts

予想
Forecasts

Dividends per unit
(excluding dividends inexcess of earnings)

977

EPU
(Dividends of earnings per unit)

432+49 yen (+1.6%)

545

Results
実績

Results
実績

Results
実績

Results
実績

Results
実績

Results
実績

Forecasts
予想

Results
実績

Results
実績

1st FP 2nd FP 3rd FP 4th FP 5th FP 6th FP 7th FP

8th FP

9th FP

10th FP

Dec. 2016

Jun. 2020

Dec. 2020

Jun. 2021

Jun. 2017

Dec. 2017

Jun. 2018

Dec. 2018

Jun. 2019

 NAV per Unit

Dec. 2019

NAV increased for seventh consecutive period
since listing
134,365(yen)

140,000
135,000

128,027130,000

125,547

125,000
119,105

120,000
115,000

120,709

121,786

122,535

3rd FP
Dec. 2017

4th FP
Jun. 2018

5th FP
Dec. 2018

113,679

110,000
105,000
100,000
0

1st FP
Dec. 2016

2nd FP
Jun. 2017

6th FP
Jun. 2019

7th FP
Dec. 2019

8th FP
Jun. 2020(Note) The forecasts for the 9th Fiscal Period and 10th Fiscal Period do not guarantee actual results.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 13

03Management Resultsfor 8th Fiscal Period

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 14

Pursuing Increase of Asset Value (1)Efforts for increasing income and reducing costs■Efforts for Increasing Income
 Construct of new parking lot (MRR Akita II)

 Increase in rent by applying solid wood flooring→ A new parking lot was constructed on the site after removing the(ArtizA Hakataeki-Minami)

Beforebuilding which led to increase in rent (leasing the entire parking lot)After

 Implementation of subleasing of motorbike parking
space (ArtizA Awajieki-higashi)→ space for 5 bikes out of spaces for 7 bikes are the subject

Before

(4)
(3)
(2)
(1)

After

 Increase in rent associated with leasing to new tenant(5)

Anticipating an increase in income by approximately
2 million yen (anticipation per period)(MRR Sasebo)

 Increase in rent associated with renewal of contracts
with existing tenants (MRR Kumamoto, MRR Delta Building)■Efforts for Reducing Costs
 Reconsidering building maintenance agreement (MRR Kumamoto) Reconsidering elevator maintenance agreement (ArtizA Sobudai) Introduction of electronic breaker (ArtizA Sobudai, ArtizA Kamimaezu)

Copyright © Marimo Asset Management Co., Ltd.

Anticipating cost reduction by approximately
1.5 million yen (anticipation per period)

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 15

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

Efforts for Improving Customer Satisfaction● Implemented painting work on exterior wall of parking ... MRR Kumamoto● Installed disaster response vending machines ………... MRR Kumamoto● Implemented elevator repair work ………………………… ArtizA Sobudai

(%)

100
80

58.4

60
40

59.7

48.9

55.2

58.5

67.0

43.6

31.7

20
0
第1期
1st FP
Painting work on
exterior wall of parking

Disaster response
vending machines

第2期
2nd
FP 第3期
3rd FP 第4期
4th FP 第5期
5th FP

第6期
6th FP

第7期
7th FP

第8期
8thFP

Elevator repair work

Increase/Decrease in Residential Rent
7th Fiscal Period

8th Fiscal Period

8.5%
13.2%
6.6%9 cases 14 cases
7 cases

3.8%
11.3% 2 cases 17.0%
9 cases
6 cases

56.6%
30 cases

80.0

Increase 34.0% 5047.2%
cases

Increase 2139.6%
cases
30/53
cases

(%)
100.0

15.1%
16 cases

15.1%
8 cases

28.3%
15 cases
28.3%
15 cases

Change from the 1st FP to 8th FP

Increase

Increase of more than 5%
Increase of 5% or less

No change
Decrease

37.7%
40 cases
37.7%
40 cases

50/106cases

36 cases

60.0

26.8

22.0

40.0
20.0

13.0 14.3 13.4 14.5 13.4 15.1 15.1
15.6 6.1
21.6
29.3 23.6
28.3
37.7

71.4
51.2

79.6
64.9
57.3 61.8
56.6

47.2

0.0
1st FP 2nd FP 3rd FP 4th FP 5th FP 6th FP 7th FP 8th FP

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

Copyright © Marimo Asset Management Co., Ltd.

Increase

No Change

Decrease

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 16

Maintaining Stable Average Occupancy Rate
Average occupancy rate for entire portfolio during fiscal periods
2nd FP
98.6%

1st FP
98.6%

3rd FP
98.7%

4th FP
98.4%

6th FP
98.6%

5th FP
98.4%

7th FP
99.1%

8th FP
98.5%

100.0%
100%
95.0%
90.0%

PLEAST Hakata Gion Building switched from subleasing the entire building
to individual leases due to the rent gap.

～
～
85.0%
0%

2016年
Aug.
8月

2016

2016年
10月

2016年
Dec.
12月

2016

2017年
2月

2017年
4月

2017年
2017年
Jun.
6月
8月
2017
Residential
レジデンス
properties

2017年
10月

2017年
2018年
Dec.
12月
2月
2017
Retail
商業施設
Facilities

2018年
4月

2018年
Jun.
6月
2018

ホテル
Hotels

2018年
8月

2018年
10月

2018年
Dec.
12月
2018

2019年
2月

オフィス
Offices

2019年
4月

2019年
Jun.
6月
2019

2019年
8月

2019年
10月

2019年
Dec.
12月
2019

2020年
2月

2020年
4月

2020年
Jun.
6月
2020

ポートフォリオ全体
Entire portfolio

1st FP

2nd FP

3rd FP

4th FP

5th FP

6th FP

7th FP

8th FP(Dec. 2016)(Jun. 2017)(Dec. 2017)(Jun. 2018)(Dec. 2018)(Jun. 2019)(Dec. 2019)(Jun. 2020)

End ofDecember

End ofJune

End ofDecember

End ofJune

End ofDecember

End ofJune

End ofDecember

End of End of End of End of End of End of
Jan.
Feb.
Mar.
Apr.
May
Jun.

Residential
properties

96.9

96.6

97.2

94.9

93.9

98.8

97.2

96.4

96.5

97.3

95.0

93.8

94.5

Retailfacilities

100

100

100

99.7

100

98.8

99.5

99.7

99.9

99.9

99.9

99.9

99.9

Hotels

100

100

100

100

100

100

100

100

100

100

100

100

100

Offices

100

100

100

100

100

100

100

100

100

100

92.0

92.0

92.0

Entireportfolio

98.6

98.4

98.7

98.3

98.1

98.9

98.8

98.8

99.0

99.2

98.3

98.0

98.1

Occupancyrate(%) (Note)(Note) For 1st to 7th FPs, occupancy rates at the end of the fiscal period are indicated; and for 8th FP, those at the end of the month are indicated.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 17

Financial Status (period ended June 2020)(million yen, rounded down to nearest specified unit)
Balance ofBalance ofNew
Amount repaid borrowings
borrowings at borrowings
in 8th FP
at end of 8th
end of 7th FP
in 8th FP
FP

LenderFloating
or fixed

Interest rate

Syndicate of lenders arranged
by Sumitomo Mitsui Banking

3,500

－

－

3,500

・Sumitomo Mitsui Banking

1,402

－

15

1,387

4,840

－

－

4,840

Floating

3M TIBOR
+0.6%

2,015

－

－

2,015

Floating

3M TIBOR+0.6%

・Sumitomo Mitsui Trust Bank・The Mie Bank・Shinsei Bank

Maturity date

0.86669%

Aug. 2, 2021

1.09908%

Aug. 1, 2023
Jan. 23, 2018

Feb. 1, 2021

Aug. 1, 2022
Aug. 1, 2019

2,015

－

－

2,015

Floating

3M TIBOR
+0.8%

－

2,140

－

2,140

Floating

3M TIBOR+0.6%

Jan. 21, 2020

January 21, 2023

－

110

110

－

Floating

1M TIBOR+0.2%

Jan. 21, 2020

January 21, 2021

13,7722,250

125

15,897

・The Bank of Fukuoka

Remarks

Aug. 1, 2016

Fixed

・The Hiroshima Bank

Borrowing dateAug. 1, 2024

Unsecured &unguaranteed

・Aozora Bank・Resona Bank・The Higo Bank・The Chugoku Bank・Sumitomo Mitsui Banking
Total

LTV to Total Assets
50.5%
50.0%

50.0%

49.8%
49.5%

49.1%

Average Interest Rate

0.78%

49.3%

48.5%

48.5%
47.8%

Diversification Status of Lenders
3.6%
5.0%

3.1%

Sumitomo Mitsui Banking

23.3%

47.7%

Long-term Debt Ratio

5.7%

The Mie Bank

8.7%

Shinsei Bank
The Bank of Fukuoka

48.0%

100.0%

47.5%
47.0%
～

～

46.5%
0%

The Hiroshima Bank
Sumitomo Mitsui Trust Bank

49.5%
49.0%

*

End of End of End of End of End of End of End of End of
1st FP 2nd FP 3rd FP 4th FP 5th FP 6th FP 7th FP 8th FP

Copyright © Marimo Asset Management Co., Ltd.

9.3%

20.5%

Aozora Bank
Resona Bank

9.8%

The Higo Bank

10.9%

The Chugoku Bank

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 18

IR Activities
IR Activities in the 8th Fiscal Period (Jan. to Jun. 2020)
IR for foreign institutional investors(1) Teleconference for foreign institutional investors(Hong Kong
(Singapore

4)3)

IR for Japanese institutional investors(1) 7th Fiscal Period Financial (Tokyo)
Results Briefing(2) Visitation to Japaneseinstitutional investors

Feb. 20(Nationwide)

Feb. to Mar.

IR seminar for individual investors(2) Change in foreign investors, etc.
→ The ratio of foreign investors holding investment units isincreasing(1) Company information session on web for individual
investors (SMBC Nikko Securities)→ Video distribution period: May 12-Aug. 31
URL: https://www.irmovie.jp/nir2/?conts=marimo_202005_7Dsk

7.0%

5.0%

6.0%
5.0%
4.0%

3.6%
2.1%

4.8%

3.5%
2.9%

2.0%
1.5%

3.0%
2.0%
1.0%

0.4%

0.5%

1st FP

2nd FP 3rd FP

0.6%

0.6%

0.6%

0.6%

0.7%

4th FP

5th FP

6th FP

7th FP

0.5%

0.0%
8th FP

Ratio of unitholders by number
Ratio of investment units by number

Copyright © Marimo Asset Management Co., Ltd.

Video on seminar

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 19

04

Newly Acquired Properties
and Asset Size

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 20

ArtizA TsurumaiDeveloped by sponsor

Property characteristics and highlights•••

The property is located approximately a 4-minute walk from Tsurumai Station on the JR
Chuo Main Line and approximately a 5-minute walk from Tsurumai Station on the Nagoya
City Subway Tsurumai Line, and thus has two stations on two lines available for use. The
area offers excellent convenience with several retail facilities within walking distance.
The building is new and was completed in February 2019. It has sufficient facility
specifications as a condominium for singles, and as the area has high demand from singles,
stable occupancy is expected.
The Chiyoda area where the property is located is an area that is expected to have relatively
stable residential demand, given its proximity to the city center and its high convenience.

Location(Japanese addressing system)

5-17-23 Chiyoda, Naka Ward, Nagoya City,
Aichi Prefecture

Acquisition price430 million yen

Appraisal value

468 million yen

Appraisal NOI yield

4.9%

Occupancy rate
(as of June 30, 2020)

100.0%

Site area

213.21 m2

Completion dateFebruary 2019

Structure

Reinforced concrete structure, flat roof, 11 floors

Copyright © Marimo Asset Management Co., Ltd.

Population and Number of Households
in All of Nagoya City

(thousands of people)

Number of
1,118
households
世帯数（右軸）1,103(right axis)

Population
人口（左軸）(left axis)

2,350

1,088

(thousands of households)
1,120

(%)

1,100

100.0

1,080

80.0

1,073

2,300

1,058
1,046

1,060

1,034

2,250

1,023
2,277

2,200

2,314 2,320 2,328
2,296 2,305

2,271
2,267

2,150
0
0

Change in Occupancy Rate

100.0
96.7
86.7

98.7 96.7 100.0

76.7

60.0

50.0

1,040
1,020
1,000

0
980

40.0
20.0
0.0

2012 2013 2014 2015 2016 2017 2018 2019
Nagoya City “Population Estimate” (October 1 of each year)

2019

Mar. Apr. May Jun. Jul. Aug.Sep. Oct. Nov.Dec. Jan. Feb. Mar. Apr. May Jun.

2020

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 21

ArtizA Awajieki-higashi



•

•
•

•

Developed by sponsor

Property characteristics and highlights
The property is located approximately a 6-minute walk from JR-Awaji Station on the JR Osaka
Higashi Line, which started service in March 2019. It is also within walking distance from Awaji
Station on two other lines: the Hankyu Kyoto Line and Hankyu Senri Line. The building has excellent
access to the city center.
The building is new and was completed in October 2019. It has sufficient facility specifications as acondominium for singles, and as the area has high demand from singles, stable occupancy is
expected.
As redevelopments such as the elevation of Awaji Station on the Hankyu Line, the connection of
Awaji Station on the Hankyu Line and JR Line, opening of the Utashima Toyosato Line which is amajor road connecting eastern area and western area to Shin-Osaka Station are scheduled,
Population and number of households
there is potential that development in the area will increasingly continue.
Income was stable during the period from January 21, 2020, to June 30, 2020, due to rent
in all of Osaka City
guarantee from the sponsor (equivalent to 95% of expected rental income during full occupancy).
Number ofPopulation(thousands of

人口（左軸）(left axis)

people)Location(Japanese addressing system)

7-1-29 Sugahara, Higashiyodogawa Ward, Osaka
City, Osaka Prefecture

2,800

Acquisition price

1,180 million yen

2,700 1,332

Appraisal value

1,300 million yen

2,650

Appraisal NOI yield

5.0%

Occupancy rate
(as of June 30, 2020)

98.9%

Site area

856.49 m2

Completion date

October 2019

Structure

Reinforced concrete structure, flat roof, 14 floors

Copyright © Marimo Asset Management Co., Ltd.

2,750

Change in Occupancy Rate

世帯数（右軸）

households(right axis)

1,339 1,345 1,355

1,374 1,393

100.0 100.0(%)

1,416 1,438 1,500 100.0

1,400
1,300

80.0

2,740
2,600 2,674 2,679 2,680 2,691 2,702 2,713 2,727
1,200
2,550
2,50000.0

43.1

Rent above
the guarantee

14.3

20.0

2012 2013 2014 2015 2016 2017 2018 201998.9 98.9

87.0

Rent guarantee: 95%

60.0
40.0

1,100076.0

0.0

Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun.
2019

2020

Source: Osaka City “Population Estimate” (October 1 of each year)

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 22

ArtizA Matsumoto

Warehousing

ArtiaA MatsumotoProperty characteristics and highlights
•
•
•

•
•

The property is located approximately a 6-minute walk from Matsumoto Station on both the JR
Shinonoi Line and Oito Line.
As there is a bus terminal in front of the Matsumoto Station, people can take the bus around
Matsumoto City, in addition to the express bus going towards Shinjuku and Nagoya.
Matsumoto City, where the property is located, is a highly popular area, having ranked 2nd in the“2019 Places to Live in the Hokuriku/Koshinetsu Area.” The area also has a rich history as a castle
town, and the Kaichi Elementary School, which is in the school district that the property belongs to,is a popular school in the city known for its history.
Stable demand is expected as convenience facilities such as convenience stores, clinics, and post
offices are within walking distance.
As a result of implementation of an ordinance that includes height restrictions after the constructionof the property completed, construction of buildings of the same scale as the property will not beallowed in the future. This has given the property a distinct advantage in the area.

Location(Japanese addressing system)
Acquisition priceAppraisal value
Appraisal NOI yield
Occupancy rate
(as of June 30, 2020)
Site area
Completion date
Structure(Note) Regarding each of marimo’s for-sale condominiums, marimo REIT
has no specific plans for acquisitions, nor is there any guaranteethat it can be acquired in the future as of the date of this document.
2019 Places to Livein the Hokuriku/Koshinetsu Area Rankings

1-1-28 Oote, Matsumoto City, Nagano Prefecture
640 million yen
667 million yen
7.0%
78.5%
1,528.65 m2 (Note)
March 1998
Reinforced concrete structure, flat roof, 10 floors(Note) The measured area of the land is 1,668.51 m 2, and this area includes thesetback portion (50.65 m 2).

Copyright © Marimo Asset Management Co., Ltd.

Population and Number of Households
in Matsumoto City

(thousands ofpeople)250

1stKanazawa City,
Ishikawa Prefecture

2ndMatsumoto City,
Nagano Prefecture

230

3rd

Niigata City,
Niigata Prefecture

210
190

4th

Hokuto City,
Yamanashi Prefecture

5th

Joetsu City,
Niigata Prefecture

Source: seikatsu-guide.com “Ranking Places that
People Want to Live by Region”

Number ofhouseholds
世帯数（右軸）(right axis)

Population

人口（左軸）(left axis)

105.2(thousands of
105.8 households)
106.0

104.5
103.7
104.0

103.0
102.5
101.9
101.3
243.7

102.0
243.3

242.4

241.9 241.4

240.6

239.7 238.9
100.0

170

150
0

2012

2013

2014

2015

2016

2017

2018

2019

98.0
0

Source: Matsumoto City “Matsumoto City Statistics” (October 1 for each year)

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 23

MRR Akita Ⅱ

Warehousing
It takes approximately 15 minutes to get from Akita Station to MRR by vehicle

MRR Akita II© OpenStreetMap contributors

Property characteristics and highlights•••

National Route 13, which faces the property, is a main arterial road, and Prefectural Road 56 thatcrosses the national road nearby is also a main arterial road with high vehicle traffic. With these twomain arterial roads nearby, the property is easily approachable from various directions of the
trading area.
In addition to MRR Akita, a property owned by marimo REIT, there are many complex facilities andretail stores in the area, and the high vehicle traffic from National Route 13 also makes
the location highly sought after for commercial needs in Akita City.
The property is comprised of two tenants (a sporting goods store and a men’s wear shop), and as
both tenants have high credit ratings as major players in their respective industries, stable revenues
can be expected because they have been continuously open for a long period.

Location(Japanese addressing system)
Acquisition priceAppraisal value
Appraisal NOI yield
Occupancy rate
(as of June 30, 2020)
Site area
Completion date
Structure
Number of parking spaces

1-4-63 Barajima, Akita City, Akita Prefecture
970 million yen
1,040 million yen
7.4%
100%
2

14,902.48 m
March 2004/April 1985
Steel framed structure, alloy plated steel sheet roof,
1 floor
Steel framed structure, galvanized steel sheet roof,
2 floors
254

Copyright © Marimo Asset Management Co., Ltd.

The Barajima commercial area has manylarge retail stores (shops with an area of
1,000 m2 or greater) with 14 facilities locatedwithin a radius of 1 km. As for business
type, there are many large specialty storessuch as furniture and home appliancestor es, and r oadsi de r etai l fa ci l i ti es
concentrate in the area.

National Road 13 is the main arterial roadwith the most vehicle traffic within a 7-km
radius (Congestion benchmark: 1.64)
Prefectural Road 56 is also a main arterial
road of the trading area with much vehicle
traffic (Congestion benchmark: 1.37)

Traffic Volume in the Surrounding Areas of MRR Akita II
24-hour traffic
Congestion
volume ofbenchmarkmotor vehicles
Neighboring
areas

43,692

1.64

Prefectural
average

4,695

0.49

Source: Road Traffic Census FY2015

Explanation on congestion benchmark～1.00

No congestion and traffic is smooth.

1.25～
1.75

Not only during peak hours. Congestion is
likely to occur at an accelerated pace duringother hours around the peak time also.

2.00～

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

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 24

MRR Ichihara(land ownership interests)

Warehousing

Land for lifestyle-oriented retail stores in a detached residential area

MRR Ichihara(land ownership interests)

Property characteristics and highlights•••

This property is located approximately 5.8 km from JR Goi Station in the center of downtown Ichihara
City. There are schools and parks, etc., in the neighboring area, and the property serves as land forthe community-based roadside stores in a residential district.
An urban planned road is set to operate in the area and will likely open in the next two to three years.
Once completed, the property will be easily accessible from the urban planned road connecting thearea south to the JR Uchibo Line's Anegasaki Station to the area south to the Goi Station, which is
expected to attract customers from the southern part of the JR Uchibo Line. The future prospects ofthe property are high.
Tenants are primarily stores used on a daily basis, including Shimamura (clothing), KOMERI (homecenter), Nishimatsuya (children's goods), Sendo (grocery store), and Yac's (drugstore).

Location

6-7 Chigusa, Ichihara City, Chiba Prefecture

Acquisition price

700 million yen

Appraisal value

1,190 million yen

Appraisal NOI yield

5.0%

Number of parking spaces

295 (total)

Copyright © Marimo Asset Management Co., Ltd.

Nishimatsuya(children's goods)
40 parking spots

KOMERI(home center)35 parking spots

An urban planned road isscheduled to open in the next
two to three years

Sendo(grocery store)
80 parking spots

Shimamura(clothing)
70 parking spots

MRR Ichihara(land ownership interests)

Yac's(drugstore)
70 parking spots

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 25

K’s Denki Kitamoto Store

Asset manager’s
independentacquisition channel(land ownership interests)

Land for retail facility along National Route 17 that opened in January 2020
Sponsor has developed 22 Polestar Series apartments in Saitama Prefecture

K’s Denki Kitamoto Store(land ownership interests)■Property characteristics and highlights
•

•
•
•
•

There is a well-developed transportation network stretching from the southeast to the northwest, with railways
such as JR Takasaki Line and the JR Joetsu Shinkansen Line, and roads such as National Route 17
and bypass roads, as well as the former Kyu-nakasendo Road (Prefectural Route 164).
The location enjoys strong commercial demand since it is easily approachable by car from the trade area thatstretches widely from the southeast to northwest along National Route 17, a main arterial road.
In the commercial zone, while there are no shopping malls that attract large numbers of customers from widearea, a commercial zone has been formed by roadside stores along National Route 17.
In recent years, the development of the surrounding roads (Ageo Bypass) has progressed and the property is
expected to continue attracting solid demand for commercial land.
Stable occupancy is expected as long-term fixed leasehold agreements for business-use have been concluded
with tenants.

Location

4-46 Fukai, Kitamoto City, Saitama Prefecture

Acquisition price

1,030 million yen

Appraisal value

1,120 million yen

Appraisal NOI yield

4.9%

Number of parking spaces

136(Note) Regarding each of marimo’s for-sale condominiums,
marimo REIT has no specific plans for acquisitions, nor
is there any guarantee that it can be acquired in the
future as of the date of this document.
It has a larger warehouse space than usual and can be used as a distribution center for existing stores in
the neighboring area and as an EC distribution center. With the dominance of multiple stores includingthese existing stores, it is expected that competition will accelerate within the commercial zone.

Business Results of K’s Holdings Corporation(million yen)

Operating income(right axis)

Sales (leftSales(left axis)
axis)

800,000(million yen)

50,00040,00030,00020,00010,0000600,000
400,000
200,000
0
FY2010FY2012FY2011FY2014FY2013

FY2016FY2015FY2018FY2017FY2019Source: Compiled by the asset manager based on K’s Holdings Corporation’s website

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 26

Steady Expansion of Asset Size
A total of six assets were acquired for 4,950 million yen,and the asset size expanded to 29,955 million yen
Acquired 6
properties

50,000Sold 1 property(million yen)
Acquired 1
property

50,000Seven-Eleven Kofu Aioi
1-chome Store(land ownership interests)

ArtizA Tsurumai, etc.

Acquired 7
properties

29,95530,000
6 properties
acquiredthroughsecond public
offering

ArtizA Higashi-Shimada

MRR Kumamoto, etc.
Floor expansion
at 1 property

24,52525,00024,525Acquired 1
property
MRR Omuta floor
expansion

Aiming tofurther
expand asset
size

25,22525,005

700

-220

4,950

7 properties
acquiredthroughfirst public
offering

20,0007,700ArtizA Higashi-Betsuin

16,17016,17016,810640

16,82515

At listing

End of 1st FP
Dec. 2016

End of 2nd FP
Jun. 2017

End of 3rd FP
Dec. 2017

15,0000

Copyright © Marimo Asset Management Co., Ltd.

End of 4th FP
Jun. 2018

End of 5th FP
Dec. 2018

End of 6th FP
Jun. 2019

End of 7th FP Assets acquired End of 8th FP
through second
Dec. 2019
Jun. 2020
public offering

5 years fromlisting

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 27

Sponsor Pipeline
Properties developed by sponsors
Location: Minoo City, Osaka
Main type: Retail
Constructed: Jan. 2019

Acquired in the second public
offering
Properties developed by sponsors
Location: Osaka City, Osaka
Main type: Residential
Units: 91 (1K)
Constructed: Oct. 2019

The sponsor isdeveloping residential
properties, retailfacilities,
hotels, and student
dormitories all around
Japan.

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

Property under sponsor’s urban
redevelopment projects
MIRAKITA CITY HIMEJI
Location: Himeji City, Hyogo
Main type: Retail (sectional)
Constructed: Jan. 2019

Properties developed by sponsors
Location: Kofu City, Yamanashi
Main type: Residential
Units: 67 (1R, etc.)
Constructed: Mar. 2022 (Scheduled)

Properties developed by sponsors
Location: Kobe City, Hyogo
Main type: Residential (student
dormitory)
Units: Undetermined
Constructed: Feb. 2023 (Scheduled)

Properties developed by sponsors
Location: Kumamoto City, Kumamoto
Main type: Residential
Units: 48 (1LDK)
Constructed: Oct. 2021 (Scheduled)

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

Properties developed by sponsors
Location: Takayama City, Gifu
Main type: Hotel
Units: 139
Constructed: Dec. 2020 (Scheduled)

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

Acquired in the second public
offering
Properties developed by sponsors
Location: Nagoya City, Aichi
Main type: Residential
Units: 30 (1K)
Constructed: Feb. 2019

(Note) 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.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 28

Portfolio List (1) (8th Fiscal Period)
Property
No.

Property name

Rp-01 ArtizA Sendai Kakyoin
Rp-02 ArtizA Kamimaezu
Rp-03 ArtizA Hakata Premium
Rp-04 ArtizA Hakataeki-Minami
Rp-05 ArtizA Higashi-Betsuin

Residential properties

Rp-06 ArtizA Kamimaezu Ⅱ
Rp-07 ArtizA Chiyoda
Rp-08 ArtizA Higashi-Shimada
Rt-01

ArtizA Ikejiri

Rt-02

ArtizA Tsuzuki Chuo Koen

Rt-03

ArtizA Kawasaki East

Rt-04

ArtizA Sobudai

Rp-09 ArtizA Tsurumai
Rp-10 ArtizA Awajieki-higashi
Rp-11 ArtizA Matsumoto

Location

Sendai City,
Miyagi
Nagoya City,
Aichi
Fukuoka City,
Fukuoka
Fukuoka City,
Fukuoka
Nagoya City,
Aichi
Nagoya City,
Aichi
Nagoya City,
Aichi
Okayama City,
Okayama
Setagaya Ward,Tokyo
Yokohama City,
Kanagawa
Kawasaki City,
Kanagawa
Zama City,
Kanagawa
Nagoya City,
Aichi
Osaka City,
Osaka
Matsumoto City,
NaganoAcquisition price(million yen)Book value at
end of fiscal
period(million yen)(Note 1)

Appraisalvalue(million yen)

2,730

2,591

400

Terminal
capitalization
rate

Appraisal NOI
yield

Constructed(Note 2)

Occupancy
rate (Note 3)

3,790

5.3%

7.5%

Jan. 2009

92.1%

384

547

5.0%

6.9%

Mar. 2014

90.9%

1,060

985

1,260

5.2%

6.8%

Feb. 2006

96.6%

500

471

564

5.1%

6.5%

Jun. 2006

97.1%

640

624

677

4.9%

5.1%

Feb. 2016

98.1%

720

716

770

5.0%

5.3%

Feb. 2016

100.0%

980

970

1,110

4.7%

5.2%

Sep. 2017

98.7%

700

704

731

5.2%

5.4%

Dec. 2016

94.2%

610

604

735

4.0%

4.8%

Mar. 2014

100.0%

1,050

1,077

1,150

5.0%

6.1%

Apr. 1989

95.2%

780

763

934

5.2%

6.7%

Mar. 1998

100.0%

1,130

1,166

1,350

5.2%

6.9%

Feb. 1993

95.2%

430

444

468

4.6%

4.9%

Feb. 2019100.0%

1,180

1,210

1,300

4.6%

5.0%

Oct. 2019

98.9%

640

659

667

5.9%

7.0%

Mar. 1998

78.5%(Note 1): “Book value at end of fiscal period” refers to the book value as of June 30, 2020. The same applies hereafter.
(Note 2): “Constructed” refers to the date of new construction of the main building as recorded on the registry. The same applies hereafter.
(Note 3): “Occupancy rate” refers to the figure obtained by dividing the total leased area indicated on each lease agreement concluded with the tenants of each asset as of June 30,
2020, by the building’s (or in the case of land ownership interests, the land’s) leasable area determined by marimo REIT, which is then rounded to the first decimal place. The
same applies hereafter.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 29

Portfolio List (2) (8th Fiscal Period)

Retail Facilities

Property No.

Property nameTerminal
capitalization
rate

Appraisal NOI
yield

ConstructedOccupancy
rate

1,130

6.3%

6.0%

Mar. 2005 (Note 1)

100.0%

500

471

552

6.1%

6.7%

Jun. 2008

100.0%

250

224

396

6.3%

10.1%

Apr. 2009100.0%

2,000

1,874

2,750

6.3%

8.7%

Sep. 2008

100.0%

950

913

1,120

6.4%

8.0%

May 1981

100.0%

2,120

2,150

2,480

5.9%

7.2%

(1) Oct. 2008
(2) Jan. 1986 (Note 2)

98.7%

990

984

1,290

5.8%

7.5%

Apr. 2008

100.0%

900

908

979

5.4%

6.0%

Jul. 2008

100.0%

Akita City, Akita

840

852

878

6.9%

6.7%

Apr. 1994

100.0%

Supercenter TRIAL TogitsuStore(land ownership interests)

Nishi-Sonogi
County,Nagasaki

1,150

1,170

1,210

5.0%

5.0%

-

100.0%MRR Akita Ⅱ

Akita City, Akita

970

984

1,040

6.8%

7.4%

(1) Mar. 2004
(2) Apr. 1985 (Note 2)

100.0%MRR Ichihara(land ownership interests)
K’s Denki Kitamoto Store(land ownership interests)

Ichihara City,
Chiba
Kitamoto City,
SaitamaIchinomiya City,
Aichi
Hiroshima City,
Hiroshima
Fukuoka City,
Fukuoka

700

717

1,190

-

5.0%

-

100.0%

1,030

1,047

1,120

4.5%

4.9%

-

100.0%

740

671

834

6.1%

6.9%

May 2008

100.0%

1,200

1,142

1,290

5.7%

6.4%

Nov. 2002

100.0%

800

756

1,230

5.0%

7.6%

Aug. 2008

79.4%

29,95529,44135,542

-

6.6%

-

98.1%

Cp-02

Tarumiekimae Gold Building

Cp-03

Foodaly Aoba Store

Cp-04

Yamada Denki Tecc Land
Mihara Store

Cp-05

Yamada Denki Tecc Land
Togitsu Store

Cp-07

MRR Kumamoto

Cp-08

MRR Sasebo

Cp-09

MRR Itoshima

Cp-10

MRR Akita

Cp-11

Cp-12

Hotels Hp-01

Appraisalvalue(million yen)

1,196

MRR Omuta

Ct-02

Omuta City,
Fukuoka
Kobe City,
Hyogo
Miyazaki City,
Miyazaki
Mihara City,
Hiroshima
Nishi-Sonogi
County,Nagasaki
Kumamoto City,
Kumamoto
Sasebo City,
Nagasaki
Itoshima City,
FukuokaBook value at
end of fiscal
period(million yen)

1,265

Cp-01

Ct-01

Location

Acquisition price(million yen)

Route-Inn Ichinomiya Ekimae

Op-01

MRR Delta Building

Op-02

PLEAST Hakata Gion Bldg.

OfficesTotal

31 properties(Note 1): As multiple buildings exist on the property, the date of construction of the building with the largest gross floor area is recorded.
(Note 2): As two buildings exist on the property, the date of construction of each building is recorded.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 30

05

Appendix

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 31

Property Introduction (1)Tarumiekimae Gold Building (maintaining stable occupancy rate as many of the tenants are clinics)
Area determined to be redeveloped
The property

Area under Redevelopment Preparatory
Association

Area already redeveloped

Area already redeveloped

Tarumi Station

Source: Geospatial Information Authority of Japan’s aerial photographprocessed by the asset manager

Location

Appraisal NOI
yield

Occupancy rate

Kobe City, Hyogo

6.7% (Note 1)

100% (Note 1)

Acquisition priceAppraisal value

Completion date

500 million yen

552 million yen (Note 1)

Jun. 2008

Occupancy rate of the property
100%

Number of passengers getting on and off
at Sanyo-Tarumi Station■ Property descriptions
5,700
5,400
5,100

5,112

5,115

2010

2011

5,227

2012

5,603

5,567

5,638

2015

2016

2017

5,356
5,241
2013

2014

1st FP・ Approximately 350m northeast of Tarumi Station on the JR Sanyo Main Line and Sanyo-Tarumi Station on
the Sanyo Electric Railway (approximately a 5-minute walk)・ With many medium-rise shop/office buildings, etc., the neighboring area has much pedestrian traffic.
・ In addition, the area also have financial institutions, and favorable access from the station creates an
excellent commercial district environment.
・ With bus stop also located nearby, the location offers good access even for elderly people
・ Population of approximately 1.52 million (Kobe City as of June 1, 2020)(Note 1) “Appraisal NOI yield”, “Occupancy rate” and “Appraisal value” are the figures as ofthe end of June 2020.

Copyright © Marimo Asset Management Co., Ltd.

100%

100%

100%

100%

100%

100%

100%

100%
80%
60%
40%
20%
0%

2nd FP

3rd FP

4th FP

5th FP

6th FP

7th FP

8th FP

Tenants
3rd floor

2nd floor
1st floor

Clinic(ophthalmology)

Contact lenssellerClinic(gastroenterology)
Pharmacy

Pharmacy
officeClinic(psychosomatic)

Clinic (orthopedics)

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 32

Property Introduction (2)PLEAST Hakata Gion Building (switched to individual leases, appraisal value increased
by approximately 20% from the previous fiscal period)
Office market in Fukuoka City remains favorable
Unit (yen)Assumed Contracted Rents (Note 1)
16,450(unit price per tsubo)
15,19016,00012,000

11,250

Increase byapproximately 56%
over the five years of2015 to 2020

6,000
4,000

Appraisal NOI yield

6.2% → 7.6%

Occupancy rate

79.4 % (end of June 2020)
800 million yen

Appraisal value

1,020 million yen → 1,230 million yen

Completion dateAug. 2008

Copyright © Marimo Asset Management Co., Ltd.

1

0

0.4

0.4

0.2

0
2016

2017

2018

2019

2020

2015
2016
2017
2018
2019
2020
2015年
2016年
2017年
2018年
2019年
2020年

(Note 1) Prepared by the asset manager based on CBRE’s “Japan Office Market Review”◆ Subleasing the entire building(until April 26, 2020)◆ Individual leases(April 27, 2020 and thereafter)
10th floor(approximately 60 tsubo)・ The property is located approximately 130 meters 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, accessing thecity 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.

■After April 27, 2020
・ Switched to individual leases
・ Current tenants continued to lease the 1st through 7th floors
・ Tenants have occupied the 9th floor
・ Tenants have been decided for the10th floor, and looking for tenants for the
8th floor (asking rent: 16,000 yen per tsubo)

1.0

0.5

■ Property descriptions■(until April 26, 2020)
・ Subleasing the entire building・ Unit rent: 8,450 yen per tsubo
・ Expiration of fixed-term lease agreement: April 26, 2020

2
1.5

2,000

2015

Acquisition price

2.4

3
2.5

8,000

Fukuoka City, Fukuoka(Note 1)

Vacancy rates also
declined over thefive years of 2015
to 2020

3.5

10,000Location

Vacancy Rate

4.7

412,27010,5505
4.5

13,59014,000

Unit (%)

Potential forincrease

9th floor(approximately 60 tsubo)

8th floor(approximately 60 tsubo)

Tenants decided
Occupied
Looking for tenants (asking rent
16,000 yen per tsubo)

7th Floor Tenant(succession)

6th Floor Tenant(succession)

1st to 10th floors

5th Floor Tenant(succession)(approximately
585 tsubo)

4th Floor Tenant

Total rent

3rd Floor Tenant

5 million yen per month(8,540yen per tsubo)(succession)(succession)

2nd Floor Tenant(succession)

1st Floor Tenant(succession)

1st to 7th floors(approximately 405 tsubo)
Total rent

5.05

Approximately
million yen
per month(12,467 yen per tsubo)
Unit rent increase byapproximately

46%

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 33

Overview of marimo REIT – Portfolio Building Policy –Type
Investment
ratio

Investment area classification【Regional cities】
70% ormore

Regional
areas

Retailfacilities

Hotels

Offices

Parking
properties

●

●

●

●

●

●

●

(Note)[Other regions]Tokyo
metropolitan area

Cities with, inprinciple,
populations of
200,000 people ormore other thanthose in the Tokyo
metropolitan area

Residential
properties

Nationwide
regions other thanregional cities andTokyo
metropolitan area

Tokyo, Kanagawa, Chiba and Saitama
prefectures

●

●

●

Minimum investment amount(based on acquisition price per property)

300 million
yen or more

200 million
yen or more

Maximum investment amount(based on acquisition price per property)

Up to 25% of asset size after property acquisition

Ratio of land ownership interests

Up to 15% of asset size after property acquisition

30% or less

300 million
yen or more

500 million
yen or more

200 million
yen or more

(Note) Even if a city has a population of less than 200,000 people, a city with a population slightly less than this may be treated as a regional city in consideration of the industrial situation,
demographics and other various circumstances.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 34

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

Expertise inreal estate development
and urban redevelopment(Note) The Michinoku Bank, The Chugoku Bank, The Hiroshima Bank and The Ashikaga Bank are to provide property information voluntarily at their own discretion.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 35

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

Provide property information

Warehousing function
CM support
PM operations
Leasing support
Support for regeneration of
owned assets

Financialadvisory andassistance

Fixed rent-type ML
Same-boat investment
Support for securing personnel

Licensing of trademark
SponsorSupporting companies

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 36

Overview of the Sponsor, Marimo
Company nameHistory of Marimo

Marimo Co., Ltd.
Sep. 1970

Headquarters
address

Oct. 1990

1-17-23, Kougokita, Nishi Ward, Hiroshima
Jan. 2009
Aug. 2009

Established

September 1, 1970

Apr. 2010
Jan. 2014

Global operation
Net sales(Nonconsolidated)
Business
description(Including businessdescription of subsidiaries)

Japan, China

41.5 billion yen (as of July 31, 2019)
Planning, development, designing, supervising andsales business of for-sale residential properties, realestate securitization business, environmental
hygiene business, and sales of overseas for-salecondominiums

Track record of for-sale condominium development(as of June 30, 2020)
409 structures with 26,745 units
in over 44 prefectures nationwide
Copyright © Marimo Asset Management Co., Ltd.

Established AI Architectural Design Co., Ltd.
(currently Marimo Co., Ltd) in Hiroshima City
Completed construction of “Grandeur Tosu,” the firstfor-sale condominium
Started the Condominium Restoration Project(purchase and resale)
Established a local entity in Shanghai, China
Joined “Keyaki Avenue First-class Urban
Redevelopment Project” (Wakayama City) as thefirst urban redevelopment project
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

Oct. 2015

Established Marimo Consulting Co., Ltd.
Made Yurick Home Co., Ltd. a subsidiary

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 in the same month)

Jan. 2018

marimo Regional Revitalization REIT, Inc. conducted
1st public offering

Jan. 2020

marimo Regional Revitalization REIT, Inc. concluded
2nd public offeringmarimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 37

Introduction of Marimo group
Current major business development by Marimo

For-sale condominium
business

By continuing to enter even into regional
cities where other companies do notadvance into and providing high-quality
residences, contribute to realization of living
in downtown and compact city.

Urban redevelopment
business

Contribute to revitalization of downtown
areas in regional cities by utilizing theenthusiasm for “energizing the regional
areas” and the know-how cultivated in thefor- sale condominium business.

Income property
business

Improve sustainability of profit by not only
supplying properties as the sponsor ofmarimo Regional Revitalization REIT, Inc.,but also by implementing renovation of
stores, residences and offices as well as
their leasing.

Overseas for-salecondominium businessConducted sales of residences with interior
design in overseas market. Developed“Polestar Garden” series and sold all of
2,113 units in China. Developed a
condominium business in Kuala Lumpur,
Malaysia as well.

Kumamoto City,
Kumamoto

Shibuya Ward,Tokyo

The Kumamoto Gardens

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

Copyright © Marimo Asset Management Co., Ltd.

Marimo Group’s SDGs Declaration■ Ebisu-Nishi
Ichome Building
・ Acquired a narrow land
which is difficult to be
developed as a single site
along with the adjacentland, after negotiatingwith the owner of theadjacent land.
・ Constructed a retailbuilding on the site andinvited DAIICHIKOSHO,the leading company inthe karaoke industry, as a
new tenantmarimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 38

ESG Initiatives
Marimo Group’s Initiatives

Environment

Conducted bymarimo REIT

■Initiatives to reduce environmental burden
In addition to promoting the efficient use of energy in our owned
assets by adopting LED lighting, using thermal insulation paint, andinstalling electronic breaker, the Group is endeavoring to reduce CO2
emissions through energy conservation.

SocialConducted bySponsor■Support for School Construction in Emerging Nations(construction costs, backpacks, stationary, etc.)* (1) Bour Secondary School Cambodia* (2) Au Ampil Elementary
School, Cambodia* (3) Muan Mue SecondaryNew
School, Laos

■Nonprofit Organization (NPO) Hiroshima Hirogaru
Deai-no-Hiroba JUNOALL
Adopted LED lighting
for emergency lights(MRR Kumamoto)

Installed electronic breaker(ArtizA Kamimaezu)(ArtizA Sobudai)

JUNOALL is an organization that supports people who arelooking for partner to marry with, and has a proven track record
across Japan. Marimo Co., Ltd. agrees with this objective, andsupports the establishment and the activities of the NPO
Hiroshima Hirogaru Deai-no-Hiroba JUNOALL in Hiroshima.

Governance■Human resources development training
Implemented training for full-time officers and employees on following topics
・ Monthly: “Report of cases of leakage of personal information, etc.”
・ As needed: "Training by lawyer (twice a year), ” “Personal information protection training by outside experts”, etc.

■Sponsors’ same-boat investments
Same-boat investments are conducted in order to share the profits between marimo REIT’s unitholders and Marimo Group.
・ Marimo Co., Ltd. holds 16,031 investment units of marimo REIT (ratio: 10.5%). (as of June 30, 2020)
Copyright © Marimo Asset Management Co., Ltd.

Photo for reference

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 39

B-to-C EC Market Size in Japan
Scale of B-to-C EC (Note 1) Market and Composition Ratioof Each Business Sector

A. Retail sector

2017

2018

8,600.8 billion yen

9,299.2 billion yen(EC ratio 5.79%)

B. Service- related
sector5,956.8 billion yen

C. Digital-related
sector

1,947.8 billion yen

Total

16,505.4 billion yen(EC ratio 6.22%)
6,647.1 billion yen
2,038.2 billion yen

Growth
rate
8.12%
11.6%
4.6%

Changes in Scale of B-to-C EC Market andEC Ratio (Note 2)*EC ratio is for the retail sector
200,000
20,000180,000
18,0009.0%(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)

Others(1)

Travel service(2)

Food service(3)

Ticket sale

(4)

Financial service(5)

Beauty service

(6)

4.75

5

17,984.5 4

3.85

120,000
12,000

2.84

3.17

3.40

3

80,0008,000
12,797

9,513

7,788
8,459

15,135.8

216,505.4

13,774.6

11,1661

2,000
20,000Food products, beverages, liquor

B. Service- related sector

4.37

4,000
40,000

(1)

7
6

5.43

140,000
14,00060,0006,000

A. Retail sector

6.22
5.79

160,000
16,000100,000
10,00017,984.5 billion yen(%)(billion yen)

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(E-Commerce Market Survey)”
by Information Economy Division, Commerce and Information Policy Bureau, Ministryof Economy, Trade and Industry

C. Digital-related sector

Others (medical, insurance, housing-related,education, etc.)(1)

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

Fee-based music streaming(3)

Fee-based video streaming(4)

Online games(5)

Others

The scale of the B-to-C EC market is on an expanding trend,
but the EC ratio in 2018 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-Commerce Market Survey)” by Information Economy
Division, Commerce and Information Policy Bureau, Ministry of Economy, Trade and Industry

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 40

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

0
Residential properties

Retail facilities

Hotels

Offices
Offices

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 2019).

HotelsResidential 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(%)(trillion yen)(trillion yen)
50

Convenience
stores150
140

Retail facilities

Drug stores

146

45

144

40

142

35

140

30

130

138

25
136

20

120

134

15

110
Hardware stores
Supermarket

100

～
～
2010

2011

2012

2013

2014

2015

2016

2017

2018

5

130
128

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Retail industry total (right axis)

Textiles, apparel and personal effects

Food and beverage

2019

Source: Prepared by the asset manager based on data from the Ministry of Economy, Trade and Industry’s
Current Survey of Commerce, Japan DIY Industry Association and Japan Association of Chain DrugStores’ FY2019 Japan Drug Store Survey (2010 = 100).

Copyright © Marimo Asset Management Co., Ltd.

132

0

Department stores

90

10

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

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 41

Offices

Vacancy Rate and Contracted Rents
Rent continues to increase in major cities and vacancy rates turned to decline again
Sapporo City
Vacancy rate

Hiroshima City
Vacancy rate

Assumed contracted rents(Unit: %)6(Unit: yen)
16,0005

15,00015,170

4

14,54013,68013,97014,0003.7

13,3603.3
12,59012,09010,890 11,520
12,00011,08011,000 10,650(Unit: yen)
13,0005

12,000

2.3

2
1.1
0.7

1

0.9 0.8 0.9
0.5

0.4

0.3

0

11,0003.2 3.3

3.0

2.8

3.0

3.2
2.8

3
2.1
1.8
2

～
～
9,000

7,000

～
～

0

6,000

Q1 of Q3 of 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 fiscal fiscal
2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020

Q1 of Q3 of 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 fiscal fiscal
2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020

Fukuoka City
Vacancy rate
(Unit: %)(Unit: yen)5

16,00015,000

4

3.2

6
5
4

12,9402.4

12,0002.1

11,250 12,270
10,920 11,640

11,000 10,550

2
1.0
1

13,59014,00013,0003

Vacancy rate

0.6

0.4 0.5

0.6
0.2

0

14,500
4.4

4.2 4.1

3.4

13,25012,450 12,900
12,70013,00012,50012,0001.2

1.0 1.0

11,95012,10012,30012,05011,85011,5000.6～～

11,0000
Q1 of Q3 of 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 fiscal fiscal
2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020

13,70013,500

3.9

9,000

～
～

14,15014,000

1.8
2
1

8,000
Q1 of Q3 of 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 fiscal fiscal
2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020

(Unit: yen)

5.2

3

10,0000.4

Assumed contracted rents(Unit: %)16,45015,85015,19014,48017,0004.7

Q1 of Q3 of 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 fiscal fiscal
2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020

Nagoya City

Assumed contracted rents

6

9,000
8,000

1

10,000Q1 of Q3 of 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 fiscal fiscal
2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020

11,60011,87010,89011,42010,670
10,2509,920
10,440 10,540
10,06010,000 9,740

3.9
4

13,0003

Assumed contracted rents(Unit: %)6
5.1

10,500Q1 of Q3 of 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 fiscal fiscal
2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020

Q1 of Q3 of 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 fiscal fiscal
2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020

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. 8th FP Presentation Material l 42

Hotels

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

Steady performance of occupancy rateof business hotels

Total Number of Lodgers by Year(2016 to 2019; thousand people)

Occupancy Rate by Facility Type(Thousand people)

90,00080.0%

UP 70.9%

77.3%

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

80.2%

79.5%

75.5%

75.8%

72.1%
69.5%

80,000

70.0%

67.3%

70,00060,000UP 58.5%

50,00054.8%

30,00020,00045,65452,96560,042

55.2%

52.3%

50.0%

78,039

62.7%

57.4%

60.0%

40,000

61.2%

57.5%

58.3% 58.5%

54.0%

48.0%

10,00023,731

25,03728,547

37,617040.0%

Regional
地方areas
2016
2016年

2017
2017年

Tokyo metropolitan
area
東京圏
2018
2018年

2019
2019年

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 andTourism

Copyright © Marimo Asset Management Co., Ltd.

39.6%

2018

2019

30.0%
2012

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

35.2%

38.8%

2013

2014
Total

RyokanResort hotels

Business hotels

City hotels

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 43

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 andfunds for acquiring new properties■marimo REIT decides whether it will execute dividends in excess of earnings and the amount for therespective fiscal period after verifying the following (1) and (2)Verification (1) Execute or not

Verification (2) Amount of dividends in excess of earnings(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 8th FP)*Total amount of dividends (including dividends in excess of earnings)
Net income + depreciation

8th FP results＝75.0%(million yen)(million yen)

Real estateappraisal value atthe end ofcurrent FP
35,542

Total planned
amount of capital
expenditure for the
next FP
169
Total book valueof real estate,etc.
29,441Retained earnings 136

56.1%

Capital expenditure 41

16.9%

Depreciation
243

Dividends in excess of
30% or less

Net income
467

earnings

Dividends ofearnings
467

65

27.0%

Distribution(Note) The above figures are as of the end of the 8th 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. 8th FP Presentation Material l 44

Portfolio Map (as of June 30, 2020)
Investment Ratio by Type(based on acquisition price)
Offices
6.7%

Residential
45.2%

Hotels2.5%

Investment Ratio by Region(based on acquisition price)
Tokyo metropolitan area
17.7%

Residential
RetailKinki 5.6%

90.8%

Kyushu/Okinawa
33.3%

Koshinetsu/Hokuriku/
Kanto (excluding Tokyo
metropolitan area)
2.1%

Portfolio PML Value: 1.3%
(Simple average across all
J-REITs: 2.8%)

Ratio ofregional areas

82.3%

Retail
45.6%

Aim to create a diversified
portfolio nationwide to reducerisk from disasters

Chugoku/
Shikoku 13.0%
Hokkaido/
Tohoku 15.2%

Tokai 13.1%

All retail facilities and hotels have fixed-rent lease agreements
Average Remaining Lease
Period (based on rent) (*)

20 years or more
5.5%
15 years to lessthan 20 years
16.9%

Less than
5 years
32.8%

Composition Ratio of Typesof Lease Agreements(based on rent)
Fixed-term
land lease
17.5%

Normal lease
29.3%: Residential properties: Retail facilities: Offices

Averageremaining lease
periodRatio offixed-termbuilding lease/land lease

9.2 years

70.7%
5 years toless than
10 years
44.8%: Hotels

Fixed-termbuilding
lease
53.2%

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

* “Property No.” on the map of Japan indicates a number given to each property in marimo
REIT’s portfolio, which is a combination of categories for “investment target” and “investment
ratio by region. For property names, please refer to “Portfolio List” on page 29/30. ”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.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 45

Photos of Properties (fiscal period ended June 2020)
Residential properties (15 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 Kamimaezu II

ArtizA Tsurumai

ArtizA Awajieki-higashi

ArtizA Matsumoto

Retail facilities (13 properties)
MRR Omuta

Tarumiekimae Gold Building

Foodaly Aoba Store

Yamada Denki Tecc Land
Togitsu Store

Yamada Denki Tecc Land
Mihara StoreMRR Kumamoto

Hotels (1 property)
MRR Sasebo

MRR Ichihara(land ownership interests)

Route-Inn Ichinomiya Ekimae

Offices (2 properties)
MRR Delta Building
MRR Itoshima

MRR Akita

Supercenter TRIAL Togitsu Store(land ownership interests)

MRR Akita II

K’s Denki Kitamoto Store(land ownership interests)
PLEAST Hakata Gion Bldg.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 46

Balance of Individual Properties (1) (Period ended June 30, 2020)
Investment area

Regional area

Property no.

Rp-01

Rp-03

Rp-04

Rp-05

Rp-06

Rp-07

Rp-08

ArtizA HigashiBetsuin

ArtizA
Kamimaezu II

ArtizA Chiyoda

ArtizA HigashiShimada

Property name

ArtizA Sendai
Kakyoin

ArtizA
Kamimaezu

ArtizA Hakata
Premium

ArtizA
HakataekiMinami

Acquisition dateAug. 1, 2016

Aug. 1, 2016

Aug. 1, 2016

Aug. 1, 2016

Jun. 1, 2017

Jan. 23, 2018

Jan. 23, 2018

Jan. 4, 2019(million yen)

2,730

400

1,060

500

640

720

980

700

(%)

9.1

1.3

3.5

1.7

2.1

2.4

3.3

2.3

(Note 1)(million yen)

2,591

384

985

471

624

716

970

704

(Note 1)2(m )9,810.37

1,096.48

3,804.39

1,691.50

1,336.50

1,557.90

2,062.06

1,809.60(Note 1)(m2)

9,039.58

996.803,675.08

1,642.38

1,311.75

1,557.90

2,035.94

1,705.20(Note 1)

(%)

92.1

90.9

96.6

97.1

98.1

100.0

98.7

94.2

Acquisition price
Price
Investment ratio
information

Period-end bookvalue
Leasable area

Leasing
Leased area
information

Occupancy rate(1) Number of operating days
(2) Total lease business(thousand yen)revenue
Lease business revenue
Other lease businessrevenue(3) Total lease business(thousand yen)expenses
Management fees
Taxes and public dues
Balance(Note 2)

Rp-02

182

182

182

182

182

182

182

182

133,201

18,41649,50423,24822,50725,52235,46426,357125,721

14,69147,765

22,12822,22524,24534,01525,566

7,480

3,725

1,738

1,119

282

1,277

1,449

791

25,113

10,977

10,985

5,150

4,654

6,144

7,930

6,192

10,437

3,624

3,451

1,715

1,477

2,185

2,501

3,002

7,706

1,346

3,312

1,583

1,620

1,753

2,577

1,800

Utility costs

868

130

403

305

177

176

175

157

Repair costs

5,374

5,473

3,237

1,146

195

1,074

925

349

Insurance fees

337

48

130

53

65

65

86

66

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

220

225

220

220

225

225

225

225

169

128

230

125

893

662

1,438

591

(thousand yen)

108,088

7,439

38,51818,09817,852

19,37827,534

20,164(5) Depreciation(6) Lease business income( = (4) – (5) )(7) Capital expenditures(thousand yen)

30,122

4,524

17,192

7,328

6,569

6,238

9,170

7,622

(thousand yen)

77,965

2,914

21,325

10,76911,283

13,14018,364

12,542(thousand yen)

1,119

1,469

1,478

1,512

－

－

－

－

(8) NCF ( = (4) – (7) )(thousand yen)

106,968

5,969

37,03916,586

17,852

19,37827,534

20,164(Note 1) Figures are as of the end of the 8th Fiscal Period.
(Note 2) The balance is for the 8th Fiscal Period.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 47

Balance of Individual Properties (2) (Period ended June 30, 2020)
Investment area
Property no.

Price
information

Leasing
information

Region
Cp-01

Rp-11

Cp-02

Cp-03

Cp-04

Property name

ArtizA Tsurumai

ArtizA Awajiekihigashi

ArtizA
Matsumoto

MRR Omuta

TarumiekimaeGold Building

Foodaly Aoba
Store

Yamada Denki
Tecc Land
Mihara Store

Acquisition dateJan. 21, 2020

Jan. 21, 2020

Jan. 21, 2020

Aug. 1, 2016

Aug. 1, 2016

Aug. 1, 2016

Aug. 1, 2016

Acquisition price(million yen)

430

1,180

640

1,265

500

250

2,000

Investment ratio

(%)

1.4

3.9

2.1

4.2

1.7

0.8

6.7

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

444

1,210

659

1,196

471

224

1,874

Leasable area

(Note 1)(m2)

841.502,180.10

3,012.53

6,485.11

678.57

1,729.30

11,579.19

Leased area

(Note 1)(m2)

841.502,155.81

2,365.94

6,485.11

678.57

1,729.30

11,579.19

Occupancy rate

(Note 1)

(%)

100.0

98.9

78.5

100.0

100.0

100.0

100.0

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

162(thousand yen)

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

Balance(Note 2)

Rp-10

Rp-09

162

162

182

182

182

182
*

12,88135,94924,51749,85920,987

16,30812,72834,234

23,64449,804

19,43416,308

*

153

1,714

872

54

1,552

－

－

1,667

7,333

6,397

10,987

3,328

3,580

*

937

6,591

3,247

2,254

1,176

489

*

Taxes and public dues

－

－

－

4,694

715

1,109

8,566

Utility costs

110

276

414

82

1,162

－

－

Repair costs

33

44

2,163

1,420

－

－

－

Insurance fees

7

12

15

113

18

55

257

Trust fees

200

200

200

225

220

220

220

Other lease business expenses

377

208

356

2,197

34

1,706

17

(4) NOI ( = (2) – (3) )(thousand yen)

11,214

28,61618,11938,872

17,65812,728*(5) Depreciation(thousand yen)

3,386

7,687

5,552

14,661

4,981

3,922

18,695(6) Lease business income ( = (4) – (5) ) (thousand yen)

7,828

20,92812,567

24,21012,6768,805*(7) Capital expenditures(thousand yen)

－

－

1,691

－

－

－

－

(8) NCF ( = (4) – (7) )(thousand yen)

11,214

28,616

16,42838,872

17,65812,728**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 the contract 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 8th Fiscal Period. Furthermore, the leasable area and leased area of Yamada Denki Tecc Land Mihara 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 8th Fiscal Period.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 48

Balance of Individual Properties (3) (Period ended June 30, 2020)
Investment area
Property no.

Region
Cp-05

Cp-09

Cp-10

Cp-11

Cp-12
MRR Akita II

Property nameYamada Denki
Tecc Land
Togitsu Store

MRR
Kumamoto

MRR Sasebo

MRR Itoshima

MRR Akita

Acquisition dateAug. 1, 2016

Jan. 23, 2018

Jan. 23, 2018

Jan. 23, 2018

Jan. 23, 2018

Jan. 23, 2018

Jan. 21, 2020

(million yen)

950

2,120

990

900

840

1,150

970

(%)

3.2

7.1

3.3

3.0

2.8

3.8

3.2

913

2,150

984

908

852

1,170

984

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

Leasable area

(Note 1)(m2)

5,998.15

11,157.71

5,070.01

2,842.78

8,416.10

13,719.74

5,587.25

Leased area

(Note 1)(m2)

5,998.15

11,018.04

5,070.01

2,842.78

8,416.10

13,719.74

5,587.25

Occupancy rate

(Note 1)(%)

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

Other lease business revenue(3) Total lease business expenses

100.0
182

Lease business revenue(thousand yen)Management fees

98.7
182

100.0
182

100.0
182

100.0
182

100.0
182

100.0
162

*

115,12255,01839,07331,200*37,276*

104,687

48,82632,85531,200*37,276－

10,435

6,191

6,217

－

－

－

*

42,13019,643

11,413

4,045

*

1,615

*

13,907

6,226

3,293

913

*

1,333

3,033

10,753

4,462

2,139

1,565

3,074

－

Utility costs－

11,759

5,083

5,417

－

－

－

Repair costs

－

4,978

3,481

233

117

－

65

Insurance fees

163

431

164

61

23

－

17

Trust fees

225

250

225

250

225

225

200

Taxes and public dues
Balance(Note 2)

Cp-08

Supercenter
TRIAL TogitsuStore(land ownershipinterests)

Price
Investment ratio
information

Leasing
information

Cp-07

3,853

50

－

17

1,200

－

－

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

72,99235,37527,65927,154*35,660(5) Depreciation(thousand yen)

6,303

20,735

6,568

3,411

917

－

6,161

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

52,25728,80624,24826,237*29,498(7) Capital expenditures(thousand yen)－

25,312

－

－

－

－

－

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

47,67935,37527,65927,154*35,660

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 8th Fiscal Period. Furthermore, the leasable area and leased area of Yamada Denki Tecc Land Mihara 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 8th Fiscal Period.

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 49

Balance of Individual Properties (4) (Period ended June 30, 2020)
Investment area
Property no.

RegionOp-01

Property name

Route-Inn
Ichinomiya
EkimaeMRR Delta
Building

Acquisition dateAug. 1, 2016 Aug. 1, 2016 Aug. 1, 2016 Aug. 1, 2016 Aug. 1, 2016 Aug. 1, 2016 Aug. 1, 2016 Jan. 21, 2020 Jan. 21, 2020

Acquisition price
Price
Investment ratio
information

Period-end book value (Note 1)
Leasable area
Leasing
Leased area
information

Occupancy rate

Op-02

Rt-01

Rt-02

PLEAST
ArtizA
Hakata Gion ArtizA Ikejiri Tsuzuki Chuo
Bldg.
Koen

Rt-03

Rt-04

Ct-01

ArtizA
Kawasaki
EAST

ArtizA
Sobudai

Ct-02
K’s Denki
MRR Ichihara
Kitamoto(landStore (landownershipownership
interests)
interests)(million yen)

740

1,200

800

610

1,050

780

1,130

700

(%)

2.5

4.0

2.7

2.0

3.5

2.6

3.8

2.3

3.4

(million yen)

671

1,142

756

604

1,077

763

1,166

717

1,047

1,030

(Note 1)(m2)

3,860.81

3,053.57

1,931.47

641.16

3,731.75

3,055.80

5,703.73

18,326.76

11,451.00(Note 1)2(m )3,860.81

3,053.57

1,533.75

641.163,554.01

3,055.80

5,430.50

18,326.76

11,451.00(Note 1)

(%)

100.0

100.0

79.4

100.0

95.2

100.0

95.2

100.0

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

182(thousand yen)

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

100.0

182

182

182

182

182

182

162

162

*

56,24832,736

18,49841,48130,31053,845

18,961**

51,322

32,072

17,49039,45730,06052,34018,961

*

－

4,925

664

1,008

2,023

250

1,504

－

－

*

14,878

9,101

3,407

10,195

6,054

11,872

311

*

*

3,691

2,828

1,822

3,555

3,430

4,142

111

*

3,930

5,050

2,497

873

2,872

2,310

3,729

－

－

Utility costs

－

5,100

1,020

225

273

－

441

－

－

Repair costs

－

382

2,320

205

3,135

－

2,708

－

－

Insurance fees

123

168

78

29

132

89

222

－

－

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

225

220

220

225

225

225

225

200

200
－

Taxes and public dues

Balance(Note 2)

Tokyo metropolitan area

Hp-01

－

264

137

27

－

－

401

－

(thousand yen)*

41,36923,63515,091

31,28524,25541,972

18,649*(5) Depreciation(6) Lease business income( = (4) – (5) )(7) Capital expenditures(thousand yen)

10,824

14,847

6,802

2,476

3,612

5,010

7,723

－

－

(thousand yen)*

26,522

16,832

12,614

27,673

19,24434,24818,649*(thousand yen)

－

－

－

－

1,544

－

7,046

－

－

(8) NCF ( = (4) – (7) )(thousand yen)*
41,369* Figures are undisclosed as the consent of the tenant could not be obtained.
(Note 1) Figures are as of the end of the 8th Fiscal Period.
(Note 2) The balance is for the 8th Fiscal Period.

23,63515,091

29,741

24,25534,926

18,649*Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 50

8th Fiscal Period Balance Sheet andStatement of Income(unit: thousand yen)

Statement of Income
for the 8th Fiscal Period

Balance Sheet for the 8th Fiscal Period(June 30, 2020)
AssetsCurrent 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
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

921,559
2,160,966
11,03554,31459,542－
3,207,419

12,939,840(1,490,003)
11,449,837
324,513(44,438)
280,074
118,437(21,759)
96,67834,803(7,388)27,414
17,584,254
29,438,259
3,712
1,179
4,891
63,611
16
10,00013,50087,12829,530,279
28,95828,95832,766,657

Copyright © Marimo Asset Management Co., Ltd.

Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Accrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Current portion of tenant leasehold andsecurity 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’ capital
Allowance for temporary difference
adjustments
Other deduction from unitholders’capital
Total deduction from unitholders’capitalUnitholders’ capital, net
Surplus
Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

124,8024,870,000
147,565944－
200,580
48,121
6,849
5,398,864
11,027,500
1,373,594
18,300163
12,419,558
17,818,422

14,869,979(7,724)(381,753)(389,477)
14,480,501
467,732
467,732
14,948,234
14,948,234
32,766,657

From January 1, 2020 toJune 30, 2020

Operating revenue
Lease business revenue
Other lease business revenue
Gain on sales of real estate properties
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
Reversal of distributions payable
Interest on refund
Insurance income
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Amortization of investment unit issuance
expenses
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 forward
Unappropriated retained earnings(undisposed loss)

1,210,246
55,433－
1,265,679
520,645
107,749
1,595
13,2172,400
15,33733,320694,266
571,413
14
275
－
315
605
60,76532,358
10,295
103,419
468,599
468,599946(2)
943
467,65576
467,732

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 51

Status of Investment Unitholders(Fiscal Period Ended June 30, 2020)
Ratio of Unitholders by Number(9,800 unitholders in total)(Note 1)

Financial
institutions

Rank

Name of unitholder

Number of
Ownership
investment units
ratio

1

Marimo Co., Ltd.

16,031

10.5%

2

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

12,303

8.1%

3Japan Trustee Services Bank, Ltd.
(trust account)

9,421

6.2%

4

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

6,017

3.9%

5

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

2,538

1.7%

6

Mitsubishi UFJ Morgan Stanley Securities
Co., Ltd.

2,149

1.4%

7

Yonezawa Shinkin Bank

2,000

1.3%

8

DFA INTERNATIONAL REAL ESTATESECURITIES PORTFOLIO

1,915

1.3%

9

BNY FOR GCM CLIENT ACCOUNTS (E) ISG

1,908

1.2%

10

Ueda Yagi Tanshi Co., Ltd.

1,755

1.1%

Total

56,03736.7%(0.5% → 0.5%)

Foreigncompanies, etc.

(0.7% → 0.5%)
Other domestic
entities(1.5% → 1.6%)

Individuals,
others(97.3% → 97.4%)

Ratio of Investment Units by Number(152,680 units in total)
Foreigncompanies, etc.

(5.0% → 4.8%)
Other domestic
entities(15.5% → 16.9%)(Note 1)
Individuals,
othersFinancial
institutions(33.1% → 29.2%)(Note 2)(46.4% → 49.1%)(Note 1) The ratio for financial institutions includes the ownership ofsecurities companies.

Copyright © Marimo Asset Management Co., Ltd.

(Note 2) Calculated by dividing the 56,037 investment units owned by the top 10 unitholders by the 152,680
investment units issued and outstanding and rounding to the first decimal place.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 52

▼This material is solely intended to provide information and is not intended to seek or solicit investments or to serve as a recommendation
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, the Act on
Investment Trusts and Investment Corporations, listing regulations of the Tokyo Stock Exchange or regulations of the Investment 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 Asset Management Co.,
Ltd. contained in this material merely represent opinions as of the preparation date. Different views may exist and the opinions may bechanged in the future.
Also, the real estate investment trust may interpose the investment principal due to changes in the price and profitability of real estate
operated.
It should also be noted that with real estate investment trusts there is a risk that, owing to fluctuations in the prices and profitability of thereal 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 completeness of theinformation.

▼

Neither marimo Regional Revitalization REIT, Inc. nor Marimo Asset Management Co., Ltd. accept any responsibility of any kind for theconsequences of investment activities or any acts carried out on the basis of this material.

▼

Disclaimer

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. 8th FP Presentation Material l 53

MEMO

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 54

MEMO

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 55

Regional areas have hidden potential

Copyright © Marimo Asset Management Co., Ltd.

marimo Regional Revitalization REIT, Inc. 8th FP Presentation Material l 56