Supplementary Briefing Material
January 6, 2020

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

marimo Regional Revitalization REIT, Inc.
(Asset Manager) Marimo Asset Management Co., Ltd.

Disclaimer• This material is compiled of the content announced in “Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units,”“Notice Concerning Revision of Operating and Dividend Forecasts for the Fiscal Period Ending June 2020, and Operating and Dividend Forecasts for theFiscal Period Ending December 2020,” “Notice Concerning Acquisition of Domestic Real Estate Trust Beneficiary Rights and Accompanying Commencementof Leasing” and “Notice Concerning Borrowing of Funds” dated today, organized with the addition of information incidental thereto.
The information provided in this material does not constitute disclosure documents or asset management reports pursuant to the Financial Instruments andExchange Act, the Act on Investment Trusts and Investment Corporations, or cabinet orders, cabinet office orders, regulations and rules incidental thereto. Inaddition, this material has not been prepared for the purpose of soliciting acquisition of marimo REIT investment units or other conclusion of financial
instruments transaction agreements. Investors should ensure that they have read the prospectus for the issuance of new investment units and secondaryoffering of investment units, as well as any amendments thereto, before investing and make investment decisions at their own discretion and risk. In addition,
any information on the website of marimo REIT (the “website”) on which this material is posted and any information posted on the links on the website or thematerials on the website are not intended for such purposes as seeking or soliciting investment in or recommending the trading of specific products by marimo
REIT.
• This material contains certain forward-looking statements concerning projections, as well as plans and objectives of marimo REIT’s and the Asset Manager’s
management team, on financial status, results of operations, and business; and forward-looking statements concerning future plans, management targets,strategies, etc. of marimo REIT. These forward-looking statements are based on information available to marimo REIT and the Asset Manager, and based on
certain presumptions and assumptions at this point in time made under several assumptions concerning marimo REIT’s current or future management
strategy and various internal and external environment, such as financial, economic, market, political and international affairs, surrounding marimo REIT’sbusiness. There is no guarantee that the abovementioned presumptions and assumptions are correct. Please note that such forward-looking statements thus
involve known or unknown risks and uncertainties that could cause marimo REIT’s business performance or actual results to differ materially from thoseexpressed or implied by such forward-looking statements. Therefore, this material is not a guarantee of future business performance, managementperformance, fluctuations, etc., and actual results may differ materially due to various factors.
• This material contains not only statements concerning marimo REIT, but also charts, tables, data, etc. prepared by the Asset Manager based on information
provided to marimo REIT and the Asset Manager by third parties, information announced by third parties, etc., and contains marimo REIT’s and the AssetManager’s analyses, judgments and other views concerning these. In addition, different views may exist concerning these, or marimo REIT and the AssetManager may change their views in the future.
• Although due diligence is conducted for the information provided in this material, no guarantee is made as to the accuracy and integrity of the information.
Please also note in advance that the content may be changed or abolished without prior notice.

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Enhancement of Dividends and NAV per Unit
 Rise in Normalized Dividends per Unit (Note 2)

 Changes in Dividends per Unit (Note 1)

63 yen (+1.9%)+Dividends in excess of earnings per unit(yen)Dividends of earnings per unit

4,000

3,000

3,462

3,431

3,441

3,445

3,494

3,400

3,400

3,463

3,507

521

544

459

460

499

497

498

449

433

(yen)

3,400

3,463

500

458

1,500

2,900

3,005

1,000

Dividends of earnings per unit

3,500
3,000
2,500
2,000

2,000
977

1,000

0

2,941

2,887

2,982

2,985

2,995

2,903

2,902

3,014

3,074

432

500

545

105 yen (+3.6%)+0

1st FP
2nd FP
3rd FP
4th FP
5th FP
6th FP
7th FP
8th FP
8th FP(Dec. 2016) (June 2017) (Dec. 2017) (June 2018) (Dec. 2018) (June 2019) (Dec. 2019) (June 2020) (June 2020)
forecasts
previous
revisedforecasts
forecasts

8th FP(June 2020)previous
forecasts

9th FP(Dec. 2020)
newforecasts

After the offering

 NAV per Unit (Note 3)(yen)
130,000

129,632
125,547

125,000
119,105

120,000
115,000

120,709

121,786

122,535

113,6790
110,000
1st FP(Dec. 2016)

2nd FP(June 2017)

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3rd FP(Dec. 2017)

4th FP(June 2018)

5th FP(Dec. 2018)

6th FP(June 2019)

After the offering1

Overview of Financial Status
 Main Financial Indicators After the Offering
LTV to Total Assets (Note 1)

Long-term Debt Ratio (Note 1)

Average Interest Rate (Note 1)

48.9%

100.0%

0.78%

 Status of Lenders (as at Jan. 6, 2020)

Loan syndicate with Sumitomo Mitsui Banking
as arranger

LenderSumitomo Mitsui
Banking

Balance ofloans

 Diversification Status of Lenders (as at end of Dec. 2019)

Planned new
Balance afterborrowing
the offering(Note 2) (Note 3)

3,288 million yen

The Hiroshima Bank 2,800 million yen
Sumitomo Mitsui
Trust Bank

1,490 million yen

The Bank ofFukuoka

1,387 million yen

The Mie Bank

1,367 million yen

Shinsei Bank

1,180 million yen

Resona Bank

690 million yen

The Higo Bank

570 million yen

Aozora Bank

500 million yen

53.0%

The Chugoku Bank

500 million yen

51.0%

The Mie Bank
9.9%

The Hiroshima Bank
20.3%

The Bank of Fukuoka
10.1%

16,022 million
yen

Sumitomo Mitsui Trust
Bank 10.8%

 Changes in LTV to Total Assets
55.0%

50.0%

49.8%

49.5%

49.0%
-

2,140 million
yen

Sumitomo Mitsui Banking-110 million
yen

13,772 million
yen

Sumitomo Mitsui Banking
23.9%

Shinsei Bank8.6%

Loan syndicate with
Sumitomo Mitsui Banking
as arranger

Total

The Chugoku Bank
Aozora Bank 3.6%
3.6%
The Higo Bank
4.1%
Resona Bank
5.0%.

2,250 million
yen

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47.8%

47.7%

End of
4th
FP

End of
5th
FP

49.1%

49.1%

48.9%

End of
6th
FP

End of7th
FP

After theoffering

47.0%0%
End of
1st
FP

End of
2nd
FP

End of
3rd
FP2

Portfolio Changes
 Changes in Portfolio Indicators
End of 6thFP(June 2019)
Number ofproperties
Total (planned)
acquisition price(million yen)
Total appraisalvalue(million yen)
Averageappraisal NOI
yield

Averageappraisal NOI
yield after
depreciation
Average buildingage

Assets to beacquired

Investment Ratio by Type (Note 5)

After theoffering

After acquisition of theassets to be acquired(Note 1)(Note 2)

End of June 2019

26

631

Hotel

RetailHotel

RetailOfficeOffice

Focus onprofitability

Focus onprofitability

25,225

4,950

29,955Focus onstability

Focus onstability

29,496

5,727

35,003RetailResidential

RetailResidential

Residential

Residential

Investment Ratio by Region (Note 5) (Note 6)
6.7%5.6%

6.5%

After acquisition of theassets to be acquired

End of June 2019
4.9%

4.7%

4.9%

Tokyo metropolitan area
Koshinetsu/Hokuriku 14.2%/Kanto (excluding
Kyushu/Okinawa
Tokyo metropolitan
39.6%area) 0.9%

Tokyo metropolitan area
Koshinetsu/Hokuriku 17.7%
Kyushu/Okinawa/Kanto (excluding
33.3%
Tokyo metropolitanarea) 2.1%

Kinki

14.1 years

9.2 years

13.5 years

Kinki

2.0%

5.6%

Tokai

13.8%

Tokai

13.1%

Averageoccupancy rate(Note 3) (Note 4)

98.6%

98.1%

98.8%

Chugoku/ShikokuChugoku/Shikoku

15.5%
Hokkaido/Tohoku

14.2%

Copyright © Marimo Asset Management Co., Ltd.

Hokkaido/Tohoku

13.0%
15.2%
Tokyo metropolitan area
Regional areas (regions other thanthe Tokyo metropolitan area)
3

Map of the Assets to be Acquired (Note)
Building a Diversified Portfolio Nationwide to Reduce Disaster Risk
Koshinetsu/Hokuriku/Kanto(excluding Tokyo metropolitan area)

Total Assets (to be) Acquired
Hokkaido/Tohoku

Rp-11 (Tentative name) ArtizA Matsumoto 7.0%

31 properties
Approx. 29,955 million yen
Total

Cp-12 (Tentative name) MRR Akita II 7.1%

Warehousing

Warehousing

TokaiRp-09

Tokyo metropolitan area

ArtizA Tsurumai 5.0%

(Tentative name)
MRR Kitamoto (land ownership interests)
4.9%

Ct-02

Developed by sponsor
Asset Manager’s independent pipeline

Kinki
Rp-10

Tokyo metropolitan area

ArtizA Awajieki-higashi 5.0%

Ct-01

(Tentative name)
MRR Ichihara (land ownership interests)
5.0%

Developedby sponsorResidential

RetailHotelOffice
Developed by sponsor
Warehousing

Copyright © Marimo Asset Management Co., Ltd.

4Notes
Page 1
Note 1:

The revised forecast figures for the fiscal period ending June 2020 (8th fiscal period) and the forecast figures for the fiscal period ending December 2020 (9th fiscal period) arebased on certain assumptions. For details of the assumptions, please refer to “Notice Concerning Revision of Operating and Dividend Forecasts for the Fiscal Period Ending
June 2020, and Operating and Dividend Forecasts for the Fiscal Period Ending December 2020” dated today.

Note 2:“Normalized dividends per unit” refers to the estimated amount of dividends per unit arrived at when dividends per unit before and after incorporating the assets to be acquired
are adjusted for temporary fluctuations in expenses arising from accounting for fixed asset tax, city planning tax, and other taxes and public dues (“taxes and dues”).
*Estimates are based on taxes and dues being recognized as expenses related to rent business from the time of acquisition of assets under management in the businessperiod when taxes and dues are not expensed, due to taxes and dues being included in the cost of acquisition and taxes and dues not being assessed and determined at thetime of acquisition
The earnings and dividends mentioned in these normalized dividends per unit are not intended as estimates of earnings and dividends for a specific accounting period, nor are
they meant as forecasts of earnings and dividends for a specific accounting period or such. “Normalized dividends per unit” is not an indicator specified by business accounting
standards generally accepted as fair and appropriate, nor is it audited by a financial auditor. The estimated amount should not be taken as a substitute indicator for otherindicators presented in accordance with business accounting standards generally accepted as fair and appropriate. “Normalized dividends per unit” is also not in any sense aguarantee of whether or not distribution will be made in the future and the amount thereof.

Note 3:“NAV per unit” at the end of each period is calculated by the following formula. The same shall apply hereinafter.
“NAV per unit” at end of each period = (Total net assets on balance sheet at end of period + Total appraisal value of portfolio assets at end of period − Total period-end bookvalue of portfolio assets at end of period − Total dividends at end of period) ÷ Total number of marimo REIT investment units issued and outstanding at end of period
In addition, “NAV per unit” after the offering is calculated by the following formula. The same shall apply hereinafter.
NAV per unit after the offering = (Total net assets on balance sheet at end of 6th fiscal period (ended June 2019) + Total expected amount of issue amount of the offering* +Total appraisal value** of portfolio assets at end of 6th fiscal period (ended June 2019) − Appraisal value of “Seven-Eleven Kofu Aioi 1-chome Store (land ownership interests)”− Total period-end book value of portfolio assets at end of 6th fiscal period (ended June 2019) − Total period-end book value of “Seven-Eleven Kofu Aioi 1-chome Store (landownership interests)” at end of 6th fiscal period (ended June 2019) + Total appraisal value** of the assets to be acquired − Total planned acquisition price of the assets to beacquired − Total dividends at end of 6th fiscal period (ended June 2019)) ÷ Total number of marimo REIT investment units issued and outstanding after the offering****The total expected amount of issue amount of the offering is expected to be 2,397,000,000 yen. The expected amount is calculated based on the closing price in regular
trading of marimo REIT investment units on Tokyo Stock Exchange as of December 13, 2019 (Friday) (129,100 yen) and on the presumption that issue amount is 117,906
yen per unit of marimo REIT investment units. In addition, the assumption is that SMBC Nikko Securities Inc. will subscribe and make the payment for all of the number ofinvestment units to be offered in the third-party allotment. Therefore, if the actual issue amount of the offering is lower than the abovementioned presumed amount, the total
amount of issue amount of the offering will decrease from the abovementioned amount and the actual NAV per unit after acquisition of the assets to be acquired may belower than the above. Conversely, if the actual issue amount is higher than the abovementioned presumed amount, the total amount of issue amount of the offering will
increase from the abovementioned amount and the actual NAV per unit after acquisition of the assets to be acquired may be higher than the above.
**Real estate appraisal of each portfolio asset and each asset to be acquired is outsourced to Daiwa Real Estate Appraisal Co., Ltd., Japan Valuers Co., Ltd., Japan Real
Estate Institute and The Tanizawa Sōgō Appraisal Co., Ltd. “Appraisal value” is calculated based on the real estate appraisal value stated in each real estate appraisal
report with June 30, 2019 as the date of value for portfolio assets and with November 30, 2019 as the date of value for the assets to be acquired. The same shall apply
hereinafter.
***The assumption is that SMBC Nikko Securities Inc. will subscribe and make the payment for all of the number of investment units to be offered in the third-party allotment.
NAV per unit after the offering is the expected value as of the date of this document calculated under the presumptions above, and may not necessarily match the actual
NAV per unit after the offering. The same shall apply hereinafter.
marimo REIT disposed of “Seven-Eleven Kofu Aioi 1-chome Store (land ownership interests),” a portfolio asset, on December 27, 2019. NAV per unit after the offering aboveis the figure in light of the disposition of the property.

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5Notes
Page 2
Note 1:“LTV to total assets,” “Long-term debt ratio” and “Average interest rate” after the offering refer to the figures calculated by the following formula.
LTV to total assets = (Balance of interest-bearing liabilities as of the date of this document (13,772 million yen) + Planned loan amount of the new borrowing (2,250 millionyen)) ÷ (Total assets at end of 6th fiscal period + Planned loan amount of the new borrowing + Expected amount of amount to be paid in in the offering)
Long-term debt ratio = (Balance of long-term loans (*) out of each borrowing as of the date of this document + Balance of long-term loans (*) out of the new borrowing) ÷(Balance of loans as of the date of this document + Planned loan amount of the new borrowing (2,250 million yen))
Average interest rate = (Total of each interest payable annualized by multiplying the balance of loans as of the date of this document by each applicable interest rate (annualinterest rate) (**) as of the date of this document + Total of interest payable annualized by multiplying the planned loan amount of the new borrowing (2,250million yen) by each applicable interest rate (annual interest rate) (***) assumed as of December 13, 2019) ÷ (Balance of interest-bearing liabilities as of thedate of this document (13,772 million yen) + Planned loan amount of the new borrowing (2,250 million yen))(*)“Long-term loans” refers to loans for a period from the drawdown date to the maturity date of more than one year, and includes those with a remaining period of one
year or less.
(**)
For loans with a floating rate, the interest rate may be converted into a fixed rate by entering into an interest rate swap agreement in the future, but the calculations
above are based on the floating rate that currently applies rather than calculating by taking such possibility into consideration.
(***)
The new borrowing is scheduled to be borrowing at a floating rate, but the JBA 3-month Japanese Yen TIBOR as at December 13, 2019 is used as the assumed
interest rate for the new borrowing. The interest rate may be converted into a fixed rate by entering into an interest rate swap agreement in the future, but thecalculations above are based on the assumed interest rate on the assumption that it is a floating rate rather than calculating by taking such possibility into
consideration.
Note 2: The amount stated as “new borrowing” is the maximum amount of loan amount planned as of January 6, 2020. The final total loan amount is subject to change up until
drawdown in light of such factors as the amount of proceeds from the primary offering. In addition, the planned upper limit of the borrowing is 2,250 million yen, but the actual
loan amount is to be determined by the monetary loan agreement scheduled to be concluded after the issue amount of the offering is determined, and may vary depending on
the amount of proceeds from the offering.
Note 3: For the new borrowing, the arranger has received a conditional commitment letter from the financial institutions, but no monetary loan agreement has been concluded as ofJanuary 6, 2020. Therefore, there is no guarantee that the new borrowing will actually take place, and the actual loan amount is also subject to change.
Page 3Note 1:
Note 2:
Note 3:Note 4:Note 5:

Each figure after the offering is calculated from the figures at the end of the 6th fiscal period or November 30, 2019 for the existing portfolio and the figures for the assets to beacquired, under certain presumptions, and may not necessarily match the actual figures.
marimo REIT disposed of “Seven-Eleven Kofu Aioi 1-chome Store (land ownership interests),” a portfolio asset, on December 27, 2019. The following figures are the figures inlight of the disposition of the property.
“Average occupancy rate” refers to the occupancy rate (ratio of total leased area to total leasable area) on November 30, 2019. “(Total) leasable area” refers to the (total) areathat marimo REIT considers leasable in the building (however, in cases of properties of land ownership interests, the land) of each property. “(Total) leased area” refers to the(total) area equivalent to the ownership interests of marimo REIT out of leasable area as of November 30, 2019 as shown in the lease agreements scheduled to be concluded oralready concluded between marimo REIT and tenants or the drawing of the property. The same shall apply hereinafter.
Of the assets to be acquired, “ArtizA Awajieki-higashi” was completed in October 2019 and is still being leased up as of the date of this document (the occupancy rate was
14.3% at the end of November 2019). For “ArtizA Awajieki-higashi,” the property’s trustee and Marimo Co., Ltd. plan to enter into a fixed-rent type master lease agreement forthe period from January 21, 2020 to June 30, 2020 of content that includes that, regardless of the rent that Marimo Co., Ltd. receives from end tenants, Marimo Co., Ltd. shall
pay the trustee rent equivalent to 95% of the assumed full-occupancy lease revenue. Given that, “Average occupancy rate of the assets to be acquired” and “Averageoccupancy rate after the offering” are calculated based on the assumption that the occupancy rate is 95%.
Each ratio is calculated based on the (planned) acquisition price, rounded to the first decimal place. Therefore, the sum of the ratios may not necessarily add up to the total.

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6

Notes
Note 6:“Tohoku” refers to Aomori, Iwate, Akita, Miyagi, Fukushima and Yamagata prefectures.
“Kanto (excluding Tokyo metropolitan area)” refers to Ibaraki, Tochigi and Gunma prefectures.
“Tokyo metropolitan area” refers to Tokyo, Kanagawa, Chiba and Saitama prefectures.
“Koshinetsu” refers to Yamanashi, Nagano and Niigata prefectures.
“Hokuriku” refers to Toyama, Ishikawa and Fukui prefectures.
“Tokai” refers to Shizuoka, Aichi, Gifu and Mie prefectures.
“Kinki” refers to Shiga, Kyoto, Osaka, Nara, Wakayama and Hyogo prefectures.
“Chugoku” refers to Okayama, Hiroshima, Yamaguchi, Tottori and Shimane prefectures.
“Shikoku” refers to Kagawa, Kochi, Tokushima and Ehime prefectures.
“Kyushu” refers to Fukuoka, Oita, Miyazaki, Kagoshima, Kumamoto, Nagasaki and Saga prefectures.

Page 4
Note: “Property number” is the number assigned property by property by combining the asset type classifications of “investment targets” and “investment ratio by region” for the
portfolio assets and assets to be acquired of marimo REIT. “Investment targets” are represented by R for residential, C for retail, H for hotel and O for office, while p is forregional and t is for Tokyo metropolitan area. In cases of mixed-use properties of several uses (asset types), the investment target classification is based on the asset typethat accounts for the largest percentage of lease revenue when full occupancy is assumed.

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7

Regional areas have hidden potential

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