December 19, 2018
To All Concerned Parties
Real Estate Investment Trust Securities Issuer
1-1-21 Toranomon, Minato-ku, Tokyo
marimo Regional Revitalization REIT, Inc.
Representative: Takashi Kitagata, Executive Director(Securities Code: 3470)
Asset Manager
Marimo Asset Management Co., Ltd.
Representative: Takashi Kitagata, CEOContact:
Katsuhiro Shimada, Financial Management Officer
TEL: +81-3-6205-4755

Notice Concerning Revision of Operating and Dividend Forecasts for the Fiscal Period Ending June 2019
marimo Regional Revitalization REIT, Inc. (“marimo REIT”) announces the following revision of the operating anddividend forecasts (the “Forecasts”) for the fiscal period ending June 2019 (from January 1, 2019 to June 30, 2019)
announced in “(REIT) Financial Report for the Fiscal Period Ended June 2018” dated August 17, 2018.
1. Revision of Operating and Dividend Forecasts for the Fiscal Period Ending June 2019
Dividends
per unit

Dividends
per unit(including
dividends
in excess ofearnings)(excluding
dividends
in excess ofearnings)

Dividends
in excess ofearnings
per unit

Operatingrevenue

OperatingincomeOrdinaryincomeNet
incomePrevious forecasts
(A)

1,086
million yen

461
million yen

387
million yen

386
million yen

3,404
yen

2,918
yen

486
yen

Revised forecasts(B)
Amount ofincrease (decrease)(B−A)
Rate ofincrease (decrease)

1,111
million yen

467
million yen

391
million yen

390
million yen

3,455
yen

2,953
yen

502
yen

24
million yen

6million yen

4million yen

4million yen

51
yen

35
yen

16
yen

2.2%

1.4%

1.2%

1.2%

1.5%

1.2%

3.3%

(Reference) Fiscal period ending June 2019
Forecast number of investment units issued and outstanding at end of period: 132,340 units; Forecast net income per unit: 2,953 yen(Note 1) The revision of the operating and dividend forecasts for the fiscal period ending June 2019 is the revision at this point in time.
Accordingly, the actual figures may vary. The forecasts are not a guarantee of the amount of dividends and dividends in excess ofearnings.
(Note 2) The forecasts may be revised in the event a discrepancy above a certain level from the forecasts above is expected.
(Note 3) Monetary figures are rounded down to the nearest specified unit. Percentage figures are rounded to the first decimal place.

2. Reason for Revision
The revision is mainly attributable to the acquisition of real estate trust beneficiary right (ArtizA Higashi-Shimada)(the “Acquisition”) and the borrowing of funds with the Acquisition announced in “Notice Concerning Acquisition ofDomestic Real Estate Trust Beneficiary Right” and “Notice Concerning Borrowing of Funds” separately announced
today being taken into account, resulting in change in the assumptions underlying the forecasts for the fiscal period
ending June 2019 (6th fiscal period) (from January 1, 2019 to June 30, 2019) and the operating and dividend
forecasts thus being revised.
There is no revision of the operating and dividend forecasts for the fiscal period ending December 2018 (5th fiscalperiod) at this point in time.
* This material is distributed to the Kabuto Club (the press club of the Tokyo Stock Exchange), the press club of theMinistry of Land, Infrastructure, Transport and Tourism, and the press club for construction trade publications of theMinistry of Land, Infrastructure, Transport and Tourism* Website of marimo REIT: https://www.marimo-reit.co.jp/en/1Assumptions Underlying the Operating Forecasts for the Fiscal Period Ending June 2019
ItemAccounting
periodAssets undermanagement

Operatingrevenue

OperatingexpensesNon-operating
expenses

Loans

Investment
units
Dividends
per unit(excludingdividends
in excess ofearnings)

Assumptions● Fiscal period ending June 2019 (6th fiscal period) (from January 1, 2019 to June 30, 2019) (181 days)● The assumption is that marimo REIT will continue to hold real trust beneficiary rights to 25 properties held
as of December 19, 2018 (the “portfolio assets”) through to the end of the fiscal period ending June 2019,
and that marimo REIT will acquire real estate trust beneficiary right (ArtizA Higashi-Shimada) on January 4,
2019 (the “Asset to be Acquired”) and continue to hold such through to the end of the fiscal period ending
June 2019.
● In actual practice, change may arise due to acquisition of new properties, disposition of portfolio properties,etc.
● Operating revenue from leasing of the portfolio assets is calculated on the basis of rent, etc. stated in lease
contracts in effect as of December 19, 2018, historical data, etc. Operating revenue from leasing of the Asset tobe Acquired is calculated on the basis of the content of lease contracts provided by the current beneficiary, etc.
and past tenants, market trends, etc. as well as the content of lease contracts scheduled to be in effect on thescheduled acquisition date, and by taking into account various factors such as the assumed occupancy rate andrent fluctuation projections based on post-acquisition tenant move-in/move-out and rent level projections.
● The assumption is that there will be no delinquent or unpaid rent by tenants.
● Of operating expenses from leasing, which are the main operating expenses, the expenses other thandepreciation are calculated on the basis of historical data, etc. and by reflecting the factors causing
fluctuation in expenses.
● Operating income from leasing after operating expenses from leasing (including depreciation) are deducted(excluding gain on sales of real estate properties) is expected to be 631 million yen for the fiscal period
ending June 2019.
● In general, fixed asset tax, city planning tax, etc. are calculated on a pro rata basis and reimbursed at thetime of acquisition with the previous beneficiary, etc. upon transactions of real estate, etc. For the asset tobe acquired in the Acquisition, the amount equivalent to the reimbursement is included in the cost ofacquisition and thus not expensed for the fiscal period ending June 2019. Accordingly, fixed asset tax, cityplanning tax, etc. for fiscal year 2020 are expensed starting from the fiscal period ending June 2020. For theportfolio assets plus the Asset to be Acquired for a total of 26 properties, the amount of the effect in thecase that fixed asset tax, city planning tax, etc. are expensed for the full period is expected to be 83 million
yen for the fiscal period ending June 2020. Furthermore, the amount of the effect of the acquisition of theAsset to be Acquired is expected to be 1 million yen for the fiscal period ending June 2020.
● Repair expenses for buildings based on medium- to long-term repair plans formulated by the Asset Manager
are expected to be 33 million yen for the fiscal period ending June 2019. Furthermore, emergency repair
expenses possibly arising from unforeseeable factors causing building damage, etc., the amount generally
varying materially from fiscal year to fiscal year and not being an amount that arises periodically, etc. may
result in repair expenses for each accounting period differing materially from the forecast amount.
● Depreciation is calculated by the straight-line method inclusive of incidental expenses, etc. and is expected
to be 222 million yen for the fiscal period ending June 2019.
● Interest expenses and other borrowing related expenses are expected to be 70 million yen for the fiscal
period ending June 2019.
● Amortization of investment unit issuance expenses is expected to be 5 million yen for the fiscal period
ending June 2019.
● The assumption is that, with the acquisition of the Asset to be Acquired, a total amount of 700 million yen
will be borrowed on January 4, 2019 (the “New Borrowing”) for allocation to part of the funds foracquisition of the Asset to be Acquired and incidental expenses. (For details on the New Borrowing, pleaserefer to “Notice Concerning Borrowing of Funds” dated today.)● The assumption is that total interest-bearing liabilities will be 13,787 million yen at the end of the fiscal
period ending June 2019.
● The assumption is the total number of investment units issued and outstanding as of December 19, 2018 of132,340 units.
● The assumption is that there will be no change in the number of investment units due to issuance of new
investment units, etc. through to the end of the fiscal period ending June 2019.
● Dividends per unit (excluding dividends in excess of earnings) is calculated based on the assumption that
distribution will be in accordance with the policy on distribution of cash provided in marimo REIT’s Articlesof Incorporation.
● Dividends per unit (excluding dividends in excess of earnings) may vary due to various factors, such as
fluctuation in rent revenue accompanying change in assets under management, change in tenants or otherevent, or incurrence of unexpected repairs.

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Item

Dividends
in excess ofearnings
per unit

Assumptions● Dividends in excess of earnings per unit is calculated in accordance with the policy provided in marimo
REIT’s Articles of Incorporation and the management guidelines that are the internal rules of the AssetManager.
● Distribution in excess of earnings is calculated based on the assumption that the sum total amount oftaxation and accounting discrepancies are distributed as allowance for temporary difference adjustments forthe purpose of tax reduction.
● As of December 19, 2018, marimo REIT deems there to be no specific concerns of substantial deteriorationin the external economic environment, real estate market conditions and financial status of marimo REIT.
● For the fiscal period ending June 2019, there are high needs to retain certain funds to respond in the eventthat opportunities to acquire new properties as investments serving to enhance the income-producing
potential of the portfolio or such arise, but in light of marimo REIT’s financial status, projected likelihood ofrefinancing borrowings, etc., the view is that it is not in a state that calls for prioritized allocation of funds toreducing interest-bearing liabilities, etc. in the concerned period.
● Depreciation for the portfolio assets is expected to be 222 million yen for the fiscal period ending June 2019.
Meanwhile, the 6-month average amount of the total amount of the estimated amount of emergency repair
expenses, estimated amount of short-term repair expenses and estimated amount of long-term repair
expenses (each falling under the category of renewal expenses (capital expenditures)) stated in theengineering report for the portfolio assets is 60 million yen. In addition, the planned amount of repairs(those falling under the category of capital expenditures) currently assumed by marimo REIT is no more than
59 million yen for the fiscal period ending June 2019. Therefore, even if an amount equivalent to the funds
expected as reserve for the purpose of future capital expenditures for maintaining the function of buildings,etc. or working capital, etc., and certain funds in preparation for investment that would serve to enhance
the income-producing potential of the portfolio as described above are retained from the cash and deposits
on hand in an amount equivalent to depreciation on the last day of each accounting period, there is still
expected to be residual free cash flows.
● In light of the above, as of December 19, 2018, execution of distribution in excess of earnings is deemed tobe reasonable for the fiscal period ending June 2019. As such, for the fiscal period ending June 2019, total
dividends in excess of earnings is expected to be 66 million yen of which total dividends of allowance fortemporary difference adjustments is 1 million yen and other distribution in excess of earnings is 65 million
yen (Note 1). In this case, the concerned total dividends in excess of earnings is expected to be the amountequivalent to 29.8% of the depreciation expected to be incurred in the concerned accounting period, andpayout ratio (Note 2) is expected to be 74.5%.
(Note 1) Distribution in excess of earnings shall be executed only when total appraisal value of real estate, etc. held as at the endof the accounting period (refers to the appraisal value in the real estate appraisal report with the end of the accounting
period as the date of value that was obtained for real estate, etc. held by marimo REIT) exceeds total book value of realestate, etc. for the concerned accounting period plus total planned capital expenditures (refers to the total amount ofreserve for capital expenditures) for the concerned accounting period’s next period, but after also considering otheroptions, such as utilization for repair expenses and capital expenditures and allocation to funds for repayment ofborrowings or acquisition of new properties. To that end, distribution in excess of earnings is not executed even in the6th fiscal period (fiscal period ending June 2019) regardless of the forecast above in the event that such conditions arenot met.
In addition, as of December 19, 2018, marimo REIT adopts the policy of distributing an amount decided by marimo REIT
each accounting period that is not to exceed the amount provided in the rules of The Investment Trusts Association,Japan (“JITA”), no more than the amount equivalent to 30% of depreciation for the concerned accounting period andwithin the scope not to exceed payout ratio of 75% as cash in excess of earnings. Accordingly, the distribution in excess ofearnings may not take place or the amount of dividends in excess of earnings may decrease in the fiscal period ending
June 2019 in the event of conflict with these limits.
Moreover, in the event substantial deterioration in the external economic environment, real estate market conditions,financial status of marimo REIT, etc. newly arise in the future, the policy as of December 19, 2018 to execute distribution
in excess of earnings as part of cash management in the fiscal period ending June 2019 may be changed and there may
also be cases where the distribution in excess of earnings may not take place or the amount of dividends in excess ofearnings may decrease even in the fiscal period ending June 2019. For instance, each accounting period’s limits on theamount of dividends in excess of earnings like those above may be revised in the case large-scale additional
incorporation of new assets or other factors lead to large fluctuation in the revenue and expense structure of theportfolio or such newly arising; in the case of material change in the financial environment, real estate investment trust
market conditions, etc.; or in other cases in the period up to when the distribution in excess of earnings for theconcerned accounting period is ultimately executed.
(Note 2) “Payout ratio” refers to the ratio of total dividends including distribution in excess of earnings to the amount of net
income plus depreciation. The same shall apply hereinafter.

Other● The assumption is that there will be no amendment of laws and regulations, tax systems, accounting
standards, listing regulations, JITA rules, etc. that will impact the forecast figures above.
● The assumption is that there will be no unforeseen material change in general economic trends, real estatemarket conditions, etc.

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