Ichigo Preserves and Improves Real Estate[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

November 2, 2017Issuer
Ichigo Office REIT Investment Corporation (“Ichigo Office,” 8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-office.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, PresidentInquiries: Hiroto Tajitsu, Head of Business Administration
Tel: +81-3-3502-4891

New Loans and Interest Rate Swaps
Ichigo Office decided today to borrow funds via new loans and to enter into interest rate
swaps to lock-in the interest rates on its new loans.
1. Reason for New Loans and Interest Rate Swaps
To repay an existing loan (JPY 3.98 billion) and hedge against any future rise in interest
rates. For details of the loan to be repaid, please refer to “Existing Loan” below.
2. Loan and Interest Rate Swap Details
Term Loan IX-A & SwapLender
Loan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized

SMBC, Mizuho Bank, BTMU, Resona Bank,
Shinsei Bank, Bank of Fukuoka, ORIX Bank
JPY 1.6 billion
Repayment of existing loanNovember 7, 2017
October 31, 2023
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.60% (p.a.)1
The final day of each month following the Loan Date(the first payment date will be November 30, 2017
and the last payment date will be the same as thePrincipal Repayment Date)
NoSwap Details
Counterparty
Contract Date
Fixed Interest Rate

Mizuho Bank
November 2, 2017
0.76125%

1

1

As a result of the interest rate swap, the interest rate for Term Loan IX-A is fixed at
0.76125%. However, the interest rate for the payment on the first payment date will be
0.63147%, because the period from November 7, 2017 through November 29, 2017 isless than a month.

Term Loan IX-B & Swap
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized

SMBC, Mizuho Bank, BTMU, Resona Bank,Shinsei Bank, Aozora Bank
JPY 2.38 billion
Repayment of existing loanNovember 7, 2017
October 31, 2025
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.72% (p.a.)2
The final day of each month following the Loan Date(the first payment date will be November 30, 2017
and the last payment date will be the same as thePrincipal Repayment Date)
No

Swap Details
Counterparty
Contract Date
Fixed Interest Rate
2Mizuho Bank
November 2, 2017
0.94875%As a result of the interest rate swap, the interest rate for Term Loan IX-B is fixed at0.94875%. However, the interest rate for the payment on the first payment date will be0.75147%, because the period from November 7, 2017 through November 29, 2017 isless than a month.

Notes:The base rate for the loans will be JPY TIBOR as published by the Japanese Bankers
Association (JBA) two business days before each interest payment date. For current JPY
TIBOR rates, please visit the JBA’s website: www.jbatibor.or.jp/english/rate
In the event the interest payment date is not a business day, payment shall be made on theprevious business day.

2Existing Loan (to be repaid)
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms

Partial Repayment Date

Interest Rate
Interest Payment Date

Collateralized

SMBC, Mizuho Bank, BTMU, Resona Bank,
Shinsei Bank, Aozora Bank, Bank of Fukuoka,
ORIX Bank
JPY 3.98 billion (original loan amount: JPY 4.0billion)
Asset acquisition
May 7, 2015
November 7, 2017
JPY 2,000,000 of the principal has been repaid on
each Partial Principal Repayment Date; theremainder will be repaid in full on the Principal
Repayment Date.
Final business day of January, April, July, andOctober following the Loan Date (the first payment
date was July 31, 2015 and the last payment date willbe the same as the Principal Repayment Date)
1M JPY TIBOR + 0.70% (p.a.)
Final business day of each month following the LoanDate (the first payment date was May 29, 2015
and the last payment date will be the same as thePrincipal Repayment Date)No

3. Earnings Outlook
The impact of the new loans and the interest rate swaps on Ichigo Office’s April 2018
and October 2018 period earnings has already been reflected in Ichigo Office’s earnings
forecast announced in the October 30, 2017 release “Earnings Forecast Revision for theApril 2018 Fiscal Period and Earnings Forecast for the October 2018 Fiscal Period.”
4. OtherRisks related to these loans have no material impact on the “Investment Risks”
described in the latest Financial Report submitted July 25, 2017.

3

Reference: Loan and Bond Composition after New Loans
Outstanding Loan and Bond Balance (as of November 7, 2017)
BeforeNew Loans(A)(JPY million)

AfterNew Loans(B)

Change(B) - (A)Short-term bank loans–––

Long-term bank loans(due within one year)

13,661

9,681-3,980Long-term bank loans

88,52092,500+3,980Total bank loans

102,181

102,181–Bond issuance

1,200

1,200

–

103,381

103,381–

Other interest-bearing liabilities–––

Total interest-bearing liabilities

103,381

103,381–

Total bank loans and bondissuance

Distribution of Loan and Bond Maturities (as of November 7, 2017)
Before New Loans
Long-Term Bank Loans
Bonds
9,314

8,938
6,867

9,574

10,233(JPY million)
9,639

9,629

9,633

9,623

7,263

4,549
3,400

3,000

1,200
Apr2018

Oct2018

Apr2019

Oct2019

Apr2020

Oct2020

Apr2021

Oct2021

Apr2022

Oct2022

Apr2023

Oct2023

Apr2024

Oct
2024

Apr2025

Oct
2025

Oct2027

After New Loans(JPY million)

Long-Term Bank Loans (Existing Loans)Long-Term Bank Loans (New Loans)
Bonds
9,314
6,867
4,958

9,574

10,233

9,639

9,629

9,633

9,623

7,263
4,600

4,549

3,400

1,600

2,380

3,000

Apr2018

Oct2018

Apr2019

Oct2019

Apr2020

Oct2020

Apr
2021

Oct
2021

Apr
2022

Oct
2022

4

Apr
2023

Oct
2023

1,200
Apr2024

Oct
2024

Apr
2025

Oct
2025

Oct2027