Make The World
More Sustainable

Ichigo Office REIT
Semi-Annual Report (Audited)
27th Fiscal Period
November 1, 2018 – April 30, 2019

Ichigo Office REIT Investment Corporation
Imperial Hotel Tower, 1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo 100-0011–1–

Message from Management
Dear Shareholders,
We extend our gratitude to all of you for your trust.
For the April 2019 fiscal period, Ichigo Office focused on organic growth through sustaining high occupancy andproactive negotiations to increase rents, as well as conducting a strategic acquisition and sale of assets aimed to drive
shareholder value.
We acquired two mid-size offices (Ichigo Minami Otsuka Building and Ichigo Nogizaka Building, total acquisition
price 6.0 billion yen) in December 2018 as part of our strategic acquisition and sales. Both assets are located in central
Tokyo and can expect ongoing rental growth. At the same time, we sold two retail assets. As a result, Ichigo Office’s
AUM (assets under management) at the end of the fiscal period was 85 assets, with a total acquisition price of 203
billion yen.
We also deployed our value-add capex capabilities to expand our tailored leasing activities via our Ichigo Layout
Office and Ichigo Lounge high-quality office spaces. Both provide comfortable working environments which
supports the recent changes in Japan’s work habits by offering a flexible layout to suit the diverse needs of our tenants.
Through these measures to increase tenant satisfaction, occupancy was over 99% throughout the fiscal period.
In terms of financing policies, we issued our third Investment Corporation Bond, and we continue to borrow longterm and at fixed rates in order to hedge future interest rate risk.
As a result of these actions, Ichigo Office’s April 2019 results were operating revenue of 8,451 million yen, operating
profit of 4,510 million yen, recurring profit of 3,733 million yen, and net income of 3,732 million yen. Base EPS,
which is earnings per share minus capital gains per share, was 2,000 yen, and continues to grow. As we distributed
the capital gains from the aforementioned asset sale, the dividend per share was 2,255 yen, marking eighteenconsecutive periods of dividend growth, ranking Ichigo Office No.1 among all J-REITs.
Ichigo Office aims to drive sustainable growth and maximize shareholder value through growth investments thatreflect a full understanding of and responsiveness to the market environment.
Ichigo Office’s name comes from the ancient Japanese proverb, Ichigo Ichie, literally meaning “One lifetime, one
encounter.” We will continue to embrace this philosophy of sincerity and service. We work to build strong long-term
relationships to support the success of our clients, shareholders, and all stakeholders.
Thank you so much for your continued support.
Yoshihiro Takatsuka, Executive Director
Ichigo Office REIT Investment Corporation
Hiroshi Iwai,
President and Representative Statutory Executive Officer
Ichigo Investment Advisors Co., Ltd.

–2–

Asset Management Overview

1 Historical Investment Performance
23rd Fiscal Period 24th Fiscal Period 25th Fiscal Period 26th Fiscal Period 27th Fiscal Period
From November 1,
2016 to April 30, 2017

Operating Revenue

From May 1, 2017 to
October 31, 2017

From November 1,
2017 to April 30, 2018

From May 1, 2018 to
October 31, 2018

From November 1,
2018 to April 30, 2019

million yen

7,352

7,530

9,062

7,632

8,451

(Real Estate Rental Income)million yen(7,314)(7,530)(7,467)(7,632)(7,782)

Operating Expenses

million yen

3,974

4,009

3,876

3,886

3,940

(Real Estate Rental Expenses)

million yen(2,959)(3,004)(3,008)(2,993)(2,990)Operating Profit

million yen

3,378

3,521

5,185

3,745

4,510

Recurring Profit

million yen

2,616

2,796

4,442

2,958

3,733

Net Income

million yen

2,615

2,796

4,441

2,980

3,732

Total Assets

million yen

210,573

217,585

219,028

221,807

225,678(Note 1)

(Period-on-Period Change)
Net Assets(Period-on-Period Change)%(-0.2)

(3.3)

(0.7)

(1.3)

(1.7)

million yen

101,911

101,761

103,245

103,217

103,863%(-0.3)(-0.1)(1.5)(-0.0)(0.6)

million yen

67,67567,67567,67567,67567,675

Number of Shares Outstanding

shares1,532,287

1,532,287

1,532,287

1,532,287

1,532,287

Net Assets per Shareyen

66,50966,411

67,38067,361

67,783

million yen

2,946

2,957

3,009

3,086

3,455

Dividend per Share

yen

1,923

1,930

1,964

2,014

2,255

(Payable Dividend per Share)yen(1,923)(1,930)(1,964)(2,014)(2,255)(Dividend per Share in Excess of
Earnings)

yen

(―)

(―)

(―)

(―)

(―)

Shareholders’ Equity

Total Dividends

Ratio of Recurring Profit to Total
Assets(Note 2)%

1.2(2.5)

1.3(2.6)

2.0(4.1)

1.3(2.7)

1.7 (3.4)

Return on Equity(Note 2)%2.6(5.2)

2.7(5.4)

4.3(8.7)

2.9(5.7)

3.6 (7.3)

Shareholder Equity Ratio(Note 2)

%

48.4

46.8

47.1

46.5

46.0

%

(-0.1)(-1.6)(0.4)(-0.6)(-0.5)

%

112.7

105.8

67.7

103.5

92.6

(Period-on-Period Change)
Dividend Payout Ratio(Note 3)

Other Reference Information
Number of Assets

assets

82

85

82

85

85

Number of Tenants at Period-End

tenants

897

918

891

923

921

Total Leasable Aream2

253,545.89

262,751.74

255,487.63

263,440.38

264,762.27

Occupancy at Period-End

%

98.6

98.1

99.0

99.2

99.3

Depreciation

million yen

923

927

914

857

857

Capital Expenditures

thousand yen

570,887446,991

395,979

453,299442,533

NOI (Net Operating Income)(Note 2)

million yen

5,279

5,454

5,373

5,496

5,648

FFO (Funds from Operations) per
Share(Note 2)

yen

2,285

2,430

2,454

2,489

2,558

days

181

184

181

184

181

Number of Days in the Period(Note 1) Operating revenue, etc. do not include consumption tax or local consumption tax (hereinafter “consumption taxes”).
(Note 2) The indicators stated are calculated using the formulas below. Figures in parentheses are annualized values.
Ratio of Recurring Profit toTotal Assets

Recurring Profit / (Total Assets at Beginning of Period + Total Assets at End of Period) ÷ 2

Return on Equity

Net Income / (Net Assets at Beginning of Period + Net Assets at End of Period) ÷ 2

Shareholder Equity Ratio

Net Assets at End of Period / Total Assets at End of Period

NOI

Real Estate Rental Income – Real Estate Rental Expenses + Depreciation

FFO per Share(Net Income + Depreciation + Loss on Retirement of Non-Current Assets + Expenses for Asset Retirement Obligations ±Gain (Loss) on Sales of Assets ± Extraordinary Profit (losses) / Number of Shares Outstanding(Note 3) Dividend Payout Ratio is calculated using the formula below and rounded down to the nearest unit:
Dividend per Share (not including dividend per share in excess of profits) / Net Income per Share–3–

2 Summary of Operating Results for the Fiscal Period Ending April 30, 2019(1) Overview
In the fiscal period ending April 30, 2019, Ichigo Office’s 27th fiscal period, Ichigo Office worked to increase its attractiveness as a
specialized office REIT focusing on mid-size offices by selling two retail assets and acquiring two mid-sized offices in return. Ichigo
Office also strengthened its organic growth potential. Key action items during the period were: 1) driving increased asset value andinvestment efficiency through value-add capex (Note) and 2) further development of the Ichigo Office brand. Ichigo Office seeks toconstruct a portfolio specializing in mid-sized offices which can generate both earnings stability and earnings growth.
(Note) “Value-add capex” is capital expenditure that enhances the competitiveness and profitability of Ichigo Office assets.

(2) Market Environment and Investment Performance(i) Market Environment
During the current fiscal period, the Japanese economy was able to maintain its steady growth trend although exports and manufacturing
were affected by the economic conditions overseas. Going forward, negative impact from the consumption tax increase scheduled in
October 2019 is a concern, but domestic demand is expected to grow steadily, supported by monetary easing and government
expenditures. There are also concerns about the future of the global economy, which may be affected by the U.S policy changes,
multinational trade disputes, and further turmoil caused by BREXIT.
In the real estate market, cap rates should continue to be low, as demand remains quite strong from both domestic and overseas investors,
backed by the favorable financing environment.
Meanwhile, in the office leasing market, vacancies continues to be limited in Central Tokyo, leading to robust demand for larger officespace and new supply, and strong growth in rents. In particular, the supply/demand balance for the mid-size offices in which Ichigo
Office specializes continues to be tight.
(ii) Investment Performance
In order to pursue a robust mid-size office portfolio and maximize shareholder value, Ichigo Office conducted strategic acquisitions andsales of assets, by selling the Ichigo Machida East Building and Ichigo Shin Yokohama Arena Dori Building (total sale price for two
assets: 3,600 million yen) and acquiring the Ichigo Minami Otsuka Building (acquisition price: 2,780 million yen) and Ichigo Nogizaka
Building (acquisition price: 3,315 million yen) in return. Ichigo Office also sold a section of the underlying land of Ichigo Toyama
Building (sale price: 12 million yen); therefore, the number of assets owned at period-end was 85 assets (total acquisition price: 203,017
million yen).
Ichigo office has focused on NOI growth, and worked to raise both rents and occupancy in order to increase the profitability of its assets.
During the current fiscal period, Ichigo Office took various actions to enhance the competitiveness and profitability of its assets, such as
the Ichigo Lounge, a shared lounge and conference space available only to tenants, designed for comfort and functionality, in the Ichigo
Uchi Honmachi Building. As a result of such efforts, the occupancy for the overall portfolio at period-end was 99.3%.
(Note) Ichigo Lounge is Ichigo Office’s original leasing strategy to increase tenant satisfaction by providing a high-quality shared work
space designed to support tenants to communicate and collaborate.

(3) Financing
During the current fiscal period, Ichigo Office borrowed a total of 5,866 million yen from banks in November 2018 and April 2019 andissued its third Investment Corporation Bond (1,000 million yen) to repay loans that came due in those months (a total of 6,867 millionyen). It also borrowed 3,000 million yen in new loans to acquire the Ichigo Minami Otsuka Building and the Ichigo Nogizaka Building.
To maintain a stable financial base, Ichigo Office works to diversify repayment dates and is prudent about interest rate risks.

–4–(4) Earnings and Dividends
As a result of the management initiatives above, Ichigo Office recorded an operating revenue of 8,451 million yen, operating profit of
4,510 million yen, recurring profit of 3,733 million yen and net income of 3,732 million yen for the fiscal period. With respect todividends, the dividend policy set out in Article 37 of the Articles of Incorporation of the Investment Corporation stipulates that theamount of dividends shall exceed the amount equivalent to 90% of distributable earnings as provided for in Article 67-15, Paragraph 1of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957 including subsequent amendments, hereinafter the “Special
Measures Taxation Act”).
Ichigo Office has voluntary reserves for temporary difference adjustments and dividends. Of these voluntary reserves, it uses temporary
difference adjustments of 105 million yen or more every period based on the revised Rules on Real Estate Investment Trusts and Real
Estate Investment Corporations in 2015 (hereinafter the “Rules of the Investment Trust Association, Japan”). Similarly, Ichigo Office
may use dividend reserves from the standpoint of stabilizing the dividend level, taking cash flows into account.
However, because Ichigo Office also has a tax loss carried forward (Note), mainly due to the loss on sales of real estate posted when assets
were transferred in the past for the purpose of improving portfolio quality, it may internally reserve profits if it has total net gains onsales of real estate assets and other profits from operations.
For this period, Ichigo Office has decided to distribute 3,455 million yen, which is the total amount of unappropriated retained earnings(3,733 million yen) and the reversal of reserves for temporary difference adjustments (105 million yen) minus gain on sales of real estatetransferred to dividend reserves in compliance with J-REIT conduit rules (382 million yen). As a result, the dividend per share was 2,255
yen.
(Note) The balance of tax losses carried forward owned by Ichigo Office is approximately 1.0 billion yen, and the expiration of the tax losses carrying forward period is the fiscal period
ending April 30, 2022. Restrictions regarding the maximum reduction of losses able to be included in deductible expenses will not be applied.

3 Issuance of New Shares
Increases and decreases in the total number of shares outstanding and the total amount of shareholders’ equity for the most recent five
years are as follows:
Date

Remarks

Number of Shares Outstanding(shares)
Increase/decrease

Balance

Shareholders’ Equity(million yen)
Increase/decrease

Notes

Balance

December 3, 2014

Public Offering

95,6801,122,003

7,679

33,462(Note 1)

December 24, 2014

Greenshoe

8,320

1,130,323

667

34,130(Note 2)

May 1, 2015

Public Offering

271,700

1,402,023

23,41857,548(Note 3)

May 27, 2015

Greenshoe

14,3001,416,323

1,232

58,781(Note 4)

May 23, 2016

Public Offering

110,166

1,526,489

8,449

67,230(Note 5)June 22, 2016

Greenshoe

5,798

1,532,287

444

67,675(Note 6)(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

Ichigo Office issued new shares via public offering at an issue price of 83,167 yen per share (underwriting price of 80,266 yen) for the purpose of raising funds to acquire new
assets.
Ichigo Office issued new shares via a third-party allotment (Greenshoe) at an issue price of 80,266 yen per share for the purpose of repaying loans.
Ichigo Office issued new shares via public offering at an issue price of 89,212 yen per share (underwriting price of 86,192 yen) for the purpose of raising funds to acquire new
assets.
Ichigo Office issued new shares via a third-party allotment (Greenshoe) at an issue price of 86,192 yen per share for the purpose of repaying loans.
Ichigo Office issued new shares via public offering at an issue price 79,365 yen per share (underwriting price of 76,695 yen) for the purpose of raising funds to acquire new assets.
Ichigo Office issued new shares via a third-party allotment (Greenshoe) at an issue price of 76,695 yen per share for the purpose of repaying loans.

–5–Share Price Performance
The table below shows the high and low prices (closing prices) on the Tokyo Stock Exchange REIT market, where Ichigo Office lists
its shares, for each period.
23rd Fiscal Period
From November 1, 2016 toApril 30, 201724th Fiscal Period
From May 1, 2017 to
October 31, 2017

25th Fiscal Period
From November 1, 2017 toApril 30, 2018

26th Fiscal Period
From May 1, 2018 to
October 31, 201827h Fiscal Period
From November 1, 2018 toApril 30, 2019High

77,200 yen

77,000 yen

83,600 yen

93,800 yen

106,200 yen

Low

63,100 yen

63,000 yen

73,900 yen

81,600 yen

91,300 yen

4 Dividends
With respect to dividends in the current fiscal period, the dividend distribution policy set out in Article 37 of the Articles of Incorporationof the Investment Corporation stipulates that the amount of dividends shall exceed the amount equivalent to 90% of distributable earnings
as provided for in Article 67-15, Paragraph 1 of the Special Measures Taxation Act. Based on this policy, Ichigo Office has decided to
pay a total dividend of 3,455 million yen, which is the entire amount (except for fractions in which the dividend per share is less than
one yen) of unappropriated retained earnings of 3,733 million yen, plus 105 million yen, which is the reversal of reserves for temporary
difference adjustments, minus 382 million yen, which is gain on sales of real estate transferred to dividend reserves in compliance with
J-REIT conduit rules. As a result, the dividend per share came to 2,255 yen.
23rd Fiscal Period
From November 1,
2016 to April 30,
2017

24th Fiscal Period
From May 1, 2017
to October 31, 2017

25th Fiscal Period
From November 1,
2017 to April 30,
2018

26th Fiscal Period
From May 1, 2018
to October 31, 2018

27th Fiscal Period
From November 1,
2018 to April 30,
2019

Unappropriated Retained Earnings

thousand yen

2,615,831

2,797,644

4,442,764

2,981,724

3,733,149

Retained Earnings for Dividend
Reservethousand yen

1,407

1,220

848

698

93

Total Dividends

thousand yen

2,946,587

2,957,313

3,009,411

3,086,026

3,455,307(1,923)(1,930)(1,964)(2,014)(2,255)2,946,587

2,957,313

3,009,411

3,086,026

3,455,307(2,255)(Dividend per Share)

yen

Distributable Earnings

thousand yen(Distributable Earnings per Share)yen(1,923)(1,930)(1,964)(2,014)thousand yen

―

―

―

―

―

yen

(―)

(―)

(―)

(―)

(―)

Of the Total Refund of Capital, Total
Distribution from Reserves for
Temporary Difference Adjustment

thousand yen

―

―

―

―

―

(Of the Refund of Capital per Share,
Distribution from Reserves for
Temporary Difference Adjustment per
Share)

yen

(―)

(―)

(―)

(―)

(―)

Of the Total Refund of Capital, Total
Distribution from the Distribution
Associated with a Decrease in
Investment for Tax Purposes

thousand yen

―

―

―

―

―

(Of the Refund of Capital per Share,
Distribution from the Distribution
Associated with a Decrease in
Investment for Tax Purposes)

yen

(―)

(―)

(―)

(―)

(―)

Total Refund of Capital(Refund of capital per share)–6–5 Investment Policies and Strategies(1) Asset Acquisitions (Acquisition-Driven Growth)
Ichigo Office invests in real estate mainly located in central Tokyo, the Tokyo metropolitan area, major regional cities and prefectural
capitals whose primary use is as offices, as well as real estate-backed securities related to these assets. In particular, Ichigo Office builds
a portfolio specializing in mid-size offices with a focus on growth potential while securing earnings stability, given that both stability
and growth potential can be expected in mid-size offices and that the replacement of assets in the portfolio in a mobilized manneraccording to the market conditions is also possible because the absolute number of assets is large and there are numerous opportunities
for acquisition.
When acquiring assets, Ichigo Office works to obtain quality investment information at an early stage and promote an arm’s lengthtransaction, using information from Ichigo Investment Advisors Co., Ltd., the asset management company (hereinafter the “AssetManager”) of Ichigo Office, based on the Asset Manager’s own network. In addition, based on the sponsor support agreement with
Ichigo Inc., Ichigo Office also promotes steady external growth, taking advantage of the warehousing function of Ichigo Inc. Ichigo
Office also strives to improve the quality of the portfolio through asset replacements by considering sales of assets with limited roomfor organic growth.

(2) Portfolio Management (Organic Growth)
In the management and operation of the assets owned, Ichigo Office strengthens their competitiveness by establishing the “Ichigo Office”
brand through the active promotion of the following initiatives that will lead to the strengthening of the earnings power of individual
assets.
- Provide differentiated Ichigo Layout Office and Ichigo Lounge high-quality office spaces- Increase asset value and investment returns via value-add capex- Maintain and drive earnings growth with a focus on tenant satisfaction- Minimize downtime at re-tenanting and free-rent periods(3) Financing Strategy
For the refinancing of existing loans, Ichigo Office will take advantage of the low-interest-rate environment by fixing borrowing rates
and promoting the extension and diversification of borrowing periods. With respect to the long-term issuer rating it has acquired fromJapan Credit Rating Agency, Ltd., Ichigo Office will strengthen its financial base and expand its cash flows while diversify financing
using investment corporation bonds, with the aim of further improving the current rating of “A (Outlook: Stable).”–7–

6 Significant Subsequent Events(1) Asset Acquisition
The sales and purchase agreements for the following asset has been made in accordance with the guidelines specified in Ichigo Office’s
Articles of Incorporation.
Ichigo Hakata East Building(Note 1)
Acquisition Price(Note 2)
Location
Legal Form of Asset
Property Right
Contract Date
Closing Date
Seller(Note 1)
(Note 2)2,250,000,000 yen
1-13-6 Hakataeki Higashi, Hakata-ku, Fukuoka
Trust beneficiary interest in real estate (juekiken)
Land: Freehold
Building: Freehold
May 29, 2019
May 31, 2019
Kichijoji Holdings GK

After the acquisition by Ichigo Office, the building name will be changed from “Takeyama Hakata Building” to “Ichigo Hakata East Building”.
The acquisition price is the sales value of the trust beneficiary interest in real estate that does not include expenses for acquisition, the amount equivalent to settled fixed asset
taxes and city planning taxes, and the amount equivalent to consumption taxes.

(2) Asset Sale
The purchase and sales agreements for the following asset has been made in accordance with the guidelines specified in Ichigo Office’s
Articles of Incorporation.
Ichigo Fiesta Shibuya Building
Sales Price(Note 1)
Book value(Note 2)
Location
Legal Form of Asset(Note 3)
Contract Date
Closing Date
Buyer
(Note 1)
(Note 2)
(Note 3)2,400,000,000 yen
1,960,027,000 yen
3-10 Udagawacho, Shibuya-ku, Tokyo
Trust beneficiary interest in real estate (juekiken)
May 29, 2019
May 30, 2019
Hakata GK

The sale price is the transaction price of the trust beneficiary interest in real estate (juekiken) and does not include expenses for transfer, the amount equivalent to settled fixed
asset taxes and city planning taxes, and the amount equivalent to consumption taxes. In the 28th fiscal period (from May 1, 2019 to October 310, 2019), gain on sales of realestate of approximately 440,477 thousand yen is expected to be recorded.
The book value is the price as of April 30, 2019.
The legal form of asset has changed from real estate to trust beneficiary interest in real estate (juekiken) on the closing date, and the trust benefiary interest has been transferredto the buyer.

–8–Ichigo Office Overview

1 Shares and Shareholders’ Equity
Number of Authorized Shares

23rd Fiscal Period
April 30, 201724th Fiscal Period
October 31, 2017

25th Fiscal Period
April 30, 2018

26th Fiscal Period
October 31, 2018

27th Fiscal Period
April 30, 2019

shares

14,000,000

14,000,000

14,000,000

14,000,000

14,000,000

Number of Shares
Outstanding

shares1,532,287

1,532,287

1,532,287

1,532,287

1,532,287

Shareholders’ Equity

millionyen

67,67567,67567,67567,67567,675

Number of Shareholders

persons

19,32718,32816,994

14,705

13,0912 Major Shareholders
Major shareholders as of April 30, 2019 are as follows:
Name

Ratio of Shares Held to Total Numberof Shares Issued (%) (Note)

SharesIchigo Trust Pte. Ltd.

344,190

The Master Trust Bank of Japan, Trust Account

256,060

22.46
16.71

Japan Trustee Services Bank, Ltd., Trust Account

188,956

12.33

NOMURA BANK (LUXEMBOURG) S.A.

75,1904.90

Morgan Stanley MUFG Securities Co., Ltd.

68,218

4.45

The Nomura Trust and Banking Co., Ltd., Investment Trust Account46,185

3.01

Trust & Custody Service Bank, Ltd., Securities Investment Trust Account45,645

2.97

GOLDMAN SACHS INTERNATIONAL

31,2332.03

BNYM SA/NV FOR BNYM FOR BNY GCM CLIENT ACCOUNTSM LSCB RD

25,3001.65

STATE STREET BANK AND TRUST COMPANY 505012
Total

19,1531.24

1,100,130

71.79(Note) The ratio of shares held to the total number of shares issued is rounded down to the first decimal place.

3 Executive Director and Supervisory Directors(1) Ichigo Office’s directors and auditor as of April 30, 2019 are as follows:
Title

Executive Director

Supervisory Directors

Accounting Auditor

Name of Director

Other Major Positions

Total Compensation
During the Current Fiscal
Period(thousand yen)

Yoshihiro Takatsuka

R’s Consulting KK, Representative Director
Oct Advisors Inc., Director and Partner

2,160

Takaaki Fukunaga

Fukunaga CPA Office, Representative
Global Solutions Consulting Co., Ltd., Representative Director
GreenOak Investment Management KK, external Corporate Auditor
AWP Ticket Guard Small Amount & Short Term Insurance Co., Ltd., external
Corporate Auditor
PP Japan Co., Ltd., Corporate Auditor
Retailer’s Sphere Co., Ltd., Corporate Auditor
GMO Registry, Inc., external Corporate Auditor

1,440

Masahiro Terada

City-Yuwa Partners, Partner

1,440

Grant Thornton Taiyo LLC―(Note) The Executive and Supervisory Directors do not own shares of Ichigo Office under either their own name or another person’s name.

–9–

8,460

(2) Policy for Determining Dismissal or Non-Reappointment of Accounting Auditor
The Board of Directors will determine the dismissal of the accounting auditor pursuant to the provisions of the Act on Investment Trusts
and Investment Corporations and the refusal to reappoint the accounting auditor, taking various factors into consideration, including thequality of the audit and compensation for the audit.

4 Asset Management Company, Asset Custodian, and Administrative AgentsThe asset management company, asset custodian, and administrative agents as of April 30, 2019 are as follows:
Asset Management Company

Ichigo Investment Advisors Co., Ltd.

Asset Custodian
Administrative Agent (Administration)
Administrative Agent (Accounting)Mizuho Trust Banking & Co., Ltd.

Administrative Agent (Transfer Agent)
Administrative Agent (Special Accounts)

Sumitomo Mitsui Trust Bank, Limited

Administrative Agent (Special Accounts)

Mitsubishi UFJ Trust and Banking Corporation

Administrative Agent (Investment Corporation Bonds)

Sumitomo Mitsui Bankng Corporation

Administrative Agent (Investment Corporation Bonds)

MUFG Bank, Ltd.

– 10 –

Assets under Management

1 Asset Composition

Trust BeneficiaryInterest in Real Estate(juekiken)(Note 3)(Note 2)
(Note 3)

Book Value(million yen)(Note 2)(Note 1)

Real Estate(Note 1)

26th Fiscal Period (as of October 31, 2018)

Area

Asset Type

27th Fiscal Period (as of April 30, 2019)

Ratio to Total Assets(%)

Book Value(million yen)(Note 2)

Ratio to Total Assets(%)

Central Tokyo

8,742

3.9

8,726

3.9

Tokyo Metropolitan Area

4,038

1.8

4,028

1.8

Four Major Regional Cities

10,563

4.8

10,497

4.7

Central Tokyo

105,335

47.5

108,549

48.1

Tokyo Metropolitan Area

40,69918.3

40,55818.0

Four Major Regional Cities

17,422

7.9

17,388

7.7

Other Regional Cities

10,814

4.9

10,723

4.8

Subtotal

190,506

89.1

200,472

88.8

Deposits and Other Assets

28,521

10.9

25,205

11.2

Total Assets

219,028100.0

225,678

100.0

Areas are defined as follows:
Central Tokyo:
Chiyoda, Minato, Chuo, Shinjuku, Shibuya and Shinagawa Wards
Tokyo Metropolitan Area: Tokyo (excluding the six wards above) and Kanagawa, Chiba and Saitama Prefectures
Four Major Regional Cities: Osaka, Nagoya, Fukuoka and Sapporo
Other Regional Cities:
Regional cities other than the above (prefectural capitals, etc.)
Book Value is the amount recorded on the balance sheet as of the closing date (for real estate and the trust beneficiary interest in real estate, the book value after depreciation).
Construction in progress and construction in progress in trust are not included in the subtotal of real estate and the trust beneficiary interest in real estate.
Land leasehold rights in trust held together with buildings in trust are stated in the section on the trust beneficiary interest in real estate by adding them to buildings in trust, etc.

2 Major Assets Owned
The table below is a summary of the major assets owned by Ichigo Office as of April 30, 2019 (top ten assets in terms of book value).
Asset NameBook Value(million yen)
(Note 1)

Leasable Area(m2)

Leased Area(m2)

Occupancy(%)(Note 2)

Ratio to Total Rent
Revenue(%)

Asset Type

Ichigo Jingumae Building

7,413

4,510.04

4,510.04

100.0

2.6

Ebisu Green Glass

5,832

3,159.27

3,159.27

100.0

2.1

OfficeOfficeIchigo Marunouchi Building

5,808

8,009.11

8,009.11

100.0

3.0

OfficeIchigo Akihabara North Building

5,576

6,250.53

6,250.53

100.0

2.8

OfficeIchigo Ikenohata Building

5,140

5,504.15

5,504.15

100.0

2.1

OfficeIchigo Sasazuka Building

4,895

6,425.29

6,425.29

100.0

2.4

OfficeIchigo Gotanda Building

4,860

5,346.39

5,346.39

100.0

2.7

OfficeIchigo Sakae Building

4,689

3,928.12

3,928.12

100.0

2.8

OfficeIchigo Higashi Ikebukuro Building

4,614

4,472.00

4,472.00

100.0

2.1

OfficeIchigo Nihonbashi East Building

4,547

4,216.97

4,216.97

100.0

1.9

Office53,37951,821.87

51,821.87

100.0

24.3

Total
(Note 1)
(Note 2)

Book Value does not include construction in progress or construction in progress in trust.
Occupancy is the ratio of the Leased Area within the Leasable Area of the real estate or real estate in trust as of period-end. The ratio is rounded off to the first decimal place.

– 11 –

3 Portfolio Overview
Details of Portfolio Assets
The table below shows the details of assets owned by Ichigo Office as of April 30, 2019.
Asset Name

Location

Form of Ownership

LeasableArea(m2)

Appraisal
Value at
Period-end(million yen)
(Note 1)

Book Value at
Period-end(million yen)
(Note 2)O-02 Ichigo Nishisando Building

Yoyogi, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

4,564.63

3,280

3,363

O-03 Ichigo Mita Building

Shiba, Minato-ku, Tokyo

Trust beneficiary interest in real estate

4,119.63

3,580

2,725

O-04 Ichigo Nanpeidai Building

Nanpeidaicho, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

1,925.24

2,600

1,917

O-05 Ichigo Hanzomon Building

Hayabusacho, Chiyoda-ku, Tokyo

Trust beneficiary interest in real estate

2,080.37

1,940

1,510

O-06 Ichigo Hijirizaka Building

Mita, Minato-ku, Tokyo

Trust beneficiary interest in real estate

1,947.90

1,440

1,220

Ichigo Shibuya Kamiyamacho
O-07
Building

Kamiyamacho, Shibuya-ku, Tokyo

Real estate

1,321.54

1,860

1,373

O-08 Ichigo Akasaka 5 Chome Building

Akasaka, Minato-ku, Tokyo

Real estate

683.86826

720

O-09 Ichigo Shibakoen Building

Shiba, Minato-ku, Tokyo

Real estate

1,602.29

1,130

1,100

O-10 Ichigo Ebisu Nishi Building

Ebisu-Nishi, Shibuya-ku, Tokyo

Real estate

1,484.39

2,480

1,925

O-11 Ichigo Ginza 612 Building

Ginza, Chuo-ku, Tokyo

Trust beneficiary interest in real estate

1,387.09

2,030

1,777

O-12 Ichigo Uchikanda Building

Uchikanda, Chiyoda-ku, Tokyo

Real estate

1,378.83

1,210

1,122

O-14 Ichigo Yotsuya 4 Chome Building

Yotsuya, Shinjuku-ku, Tokyo

Trust beneficiary interest in real estate780.64576

510

O-15 Ichigo Tameike Building

Akasaka, Minato-ku, Tokyo

Real estate494.14688

524

O-16 Ichigo Jimbocho Building

Kanda Jimbocho, Chiyoda-ku,
Tokyo

Trust beneficiary interest in real estate

1,891.01

2,380

1,809

O-17 Ichigo Hakozaki Building

Nihonbashi Kakigaracho, Chuo-ku,
Tokyo

Trust beneficiary interest in real estate

2,387.34

1,150

1,147

O-18 Ichigo Kudan 2 Chome Building

Kudan Minami, Chiyoda-ku, Tokyo

Trust beneficiary interest in real estate

1,288.31

936

733

O-19 Ichigo Kudan 3 Chome Building

Kudan Minami, Chiyoda-ku, Tokyo

Trust beneficiary interest in real estate

1,302.43851

822

O-20 Ichigo Gotanda Building

Higashi Gotanda, Shinagawa-ku,
Tokyo

Trust beneficiary interest in real estate

5,346.39

6,260

4,860

O-21 Ichigo Shin Yokohama Building

Shin Yokohama, Kohoku-ku,
Yokohama

Trust beneficiary interest in real estate

4,021.32

1,920

1,700

O-22 Ichigo Minami Ikebukuro Building

Minami Ikebukuro, Toshima-ku,
Tokyo

Trust beneficiary interest in real estate

1,491.51

1,660

1,380

O-23 Ichigo Nakano North Building

Arai, Nakano-ku, Tokyo

Trust beneficiary interest in real estate

1,250.85885

739

O-24 Ichigo Eitai Building

Eitai, Koto-ku, Tokyo

Real estate

2,605.54

1,270

1,469

O-26 Ichigo Ikejiri Building

Ohashi, Meguro-ku, Tokyo

Real estate

2,385.69

2,230

1,954

O-27 Ichigo Nishi Ikebukuro Building

Ikebukuro, Toshima-ku, Tokyo

Real estate

1,261.91

957

604

O-28 Ichigo Nishi Gotanda Building

Nishi Gotanda, Shinagawa-ku,
Tokyo

Trust beneficiary interest in real estate

1,329.06

826

759

O-29 Ichigo Kichijoji Building

Kichijoji Honcho, Musashino City,
Tokyo

Trust beneficiary interest in real estate

4,210.87

2,810

2,200

O-34 Ichigo Sakae Building

Sakae, Naka-ku, Nagoya

Real estate

3,928.12

6,490

4,689

O-37 Ichigo Marunouchi Building

Marunouchi, Naka-ku, Nagoya

Real estate

8,009.11

7,700

5,808

O-38 Ichigo Toyamaeki Nishi Building

Jinzu Honmachi, Toyama City,
ToyamaTrust beneficiary interest in real estate

8,601.71

1,730

1,494

O-39 Ichigo Mirai Shinkin Building

Niagemachi, Oita City, Oita

Trust beneficiary interest in real estate

3,551.46

1,310

1,153

O-42 Ichigo Takamatsu Building

Kotobukicho, Takamatsu City,
KagawaTrust beneficiary interest in real estate

6,329.33

3,500

2,357

O-46 Ichigo Kanda Nishikicho Building

Kanda-Nishikicho, Chiyoda-ku,
Tokyo

Trust beneficiary interest in real estate

2,523.09

2,930

2,004

O-47 Ichigo Akihabara North Building

Sotokanda, Chiyoda-ku, Tokyo

Trust beneficiary interest in real estate

6,250.53

6,970

5,576

Ichigo Sakaisuji Honmachi
O-48
Building

Honmachi, Chuo-ku, Osaka

Trust beneficiary interest in real estate

3,729.35

2,320

1,787

Ichigo Kanda Ogawamachi
O-49
Building

Kanda-Ogawamachi, Chiyoda-ku,
Tokyo

Trust beneficiary interest in real estate

2,295.57

2,480

2,195

O-50 Ichigo Hatchobori Building

Shintomi, Chuo-ku, Tokyo

Trust beneficiary interest in real estate

2,697.36

2,620

1,814

O-51 Ebisu Green Glass

Ebisu Minami, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

3,159.27

6,720

5,832

O-52 Ichigo Omori Building

Minami Oi, Shinagawa-ku, Tokyo

Trust beneficiary interest in real estate

3,585.92

4,230

3,796

O-53 Ichigo Takadanobaba Building

Takadanobaba, Shinjuku-ku, Tokyo

Trust beneficiary interest in real estate

1,606.92

1,890

1,586

O-54 Ichigo Omiya Building

Miyacho, Omiya-ku, Saitama City,
SaitamaTrust beneficiary interest in real estate

6,180.68

4,020

3,625

O-55 Ichigo Sagamihara Building

Sagamihara, Chuo-ku, Sagamihara
City, Kanagawa

Trust beneficiary interest in real estate

2,960.81

1,250

1,220

O-56 Ichigo Ofuna Building

Ofuna, Kamakura City, Kanagawa

Trust beneficiary interest in real estate

2,364.71

2,480

1,945

– 12 –

Asset Name

Location

Form of Ownership

LeasableArea(m2)

Appraisal
Value at
Period-end(million yen)
(Note 1)

Book Value at
Period-end(million yen)
(Note 2)

O-57 Ichigo Sendai East Building

Miyagino, Miyagino-ku, Sendai,
MiyagiO-58 Ichigo Kumamoto Building

Karashimacho, Chuo-ku, Kumamoto
City, Kumamoto

Trust beneficiary interest in real estate

4,507.59

1,580

1,472

O-59 Ichigo Jingumae Building

Jingumae, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

4,510.04

8,050

7,413

Maruyamacho, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

2,789.86

5,140

3,670

O-61 Ichigo Hiroo Building

Hiroo, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

3,510.44

4,580

4,002

O-62 Ichigo Sasazuka Building

Sasazuka, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

6,425.29

5,620

4,895

O-63 Ichigo Nihonbashi East Building

Nihonbashi Bakurocho, Chuo-ku,
Tokyo

Trust beneficiary interest in real estate

4,216.97

5,470

4,547

O-64 Ichigo Sakurabashi Building

Hatchobori, Chuo-ku, Tokyo

Trust beneficiary interest in real estate

2,971.22

3,000

2,576

O-65 Ichigo Shinkawa Building

Shinkawa, Chuo-ku, Tokyo

Trust beneficiary interest in real estate

2,312.03

2,870

2,387

O-66 Ichigo Kudan Building

Kanda Jimbocho, Chiyoda-ku,
Tokyo

Trust beneficiary interest in real estate

3,090.65

3,480

3,218

O-67 Ichigo Higashi Gotanda Building

Higashi Gotanda, Shinagawa-ku,
Tokyo

Trust beneficiary interest in real estate

4,548.10

4,180

3,661

O-68 Axior Mita

Mita, Minato-ku, Tokyo

Trust beneficiary interest in real estate

2,369.82

2,260

1,752

O-69 Ichigo Higashi Ikebukuro Building

Higashi Ikebukuro, Toshima-ku,
Tokyo

Trust beneficiary interest in real estate

4,472.00

5,070

4,614

O-60

Ichigo Shibuya Dogenzaka
Building

Trust beneficiary interest in real estate

5,205.49

2,100

1,674

O-70 Koriyama Big-i (Office Section)

Ekimae, Koriyama City, Fukushima

Trust beneficiary interest in real estate

3,433.07

2,110

1,488

O-71 Ichigo Kawasaki Building

Higashi Tamachi, Kawasaki-ku,
Kawasaki City, Kanagawa

Trust beneficiary interest in real estate

3,710.17

2,130

1,777

O-72 Ichigo Shibuya East Building

Higashi, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

1,041.36

1,570

1,351

O-73 Ichigo Ningyocho Building

Nihonbashi Horidomecho, Chuo-ku,
Tokyo

Trust beneficiary interest in real estate

1,769.09

1,580

1,482

O-74 Ichigo Nishi Honmachi Building

Awaza, Nishi-ku, Osaka

Trust beneficiary interest in real estate

6,152.00

2,450

2,143

O-75 Ichigo Hakata Building

Gionmachi, Hakata-ku, Fukuoka

Trust beneficiary interest in real estate

2,423.86

1,500

1,365

O-76 Ichigo Nishiki First Building

Nishiki, Naka-ku, Nagoya

Trust beneficiary interest in real estate

3,324.70

2,100

1,976

O-77 Ichigo Ikenohata Building

Ikenohata, Taito-ku, Tokyo

Trust beneficiary interest in real estate

5,504.15

5,390

5,140

O-78 Ichigo Ikebukuro East Building

Higashi Ikebukuro, Toshima-ku,
Tokyo

Trust beneficiary interest in real estate

3,118.69

3,240

2,985

O-79 Ichigo Motoazabu Building

Motoazabu, Minato-ku, Tokyo

Trust beneficiary interest in real estate

1,329.96

2,050

1,905

O-80 Ichigo Otsuka Building

Minami Otsuka, Toshima-ku, Tokyo

Trust beneficiary interest in real estate

3,679.70

2,940

2,728

O-81 Ichigo Nagoya Building

Meieki, Nakamura-ku, Nagoya

Trust beneficiary interest in real estate

4,930.30

3,850

3,483

O-82 Ichigo Fushimi Building

Nishiki, Naka-ku, Nagoya

Trust beneficiary interest in real estate

4,155.57

2,450

2,330

O-83 Ichigo Nishiki Building

Nishiki, Naka-ku, Nagoya

Trust beneficiary interest in real estate

2,006.78

1,430

1,292

O-84

Ichigo Minami Morimachi
Building

Matsugaecho, Kita-ku, Osaka

Trust beneficiary interest in real estate

2,521.51

1,140

1,014

O-85

Ichigo Shibuya Udagawacho
Building

Udagawacho, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

1,491.48

4,060

3,595

Nishi Gotanda, Shinagawa-ku,
Tokyo

Trust beneficiary interest in real estate

3,689.88

3,280

3,110

O-86 Win Gotanda Building
O-87 Ichigo Hongo Building

Hongo, Bunkyo-ku, Tokyo

Trust beneficiary interest in real estate

2,722.58

2,390

2,299

O-88 Oimachi Center Building

Oi, Shinagawa-ku, Tokyo

Trust beneficiary interest in real estate

2,751.08

1,910

1,699

O-89 Win Gotanda Building 2

Osaki, Shinagawa-ku, Tokyo

Trust beneficiary interest in real estate

3,433.16

3,530

3,308

O-90 MIF Building

Uchikanda, Chiyoda-ku, Tokyo

Trust beneficiary interest in real estate

1,690.33

2,330

2,207

O-91 Ichigo Uchi Honmachi Building

Uchi Honmachi, Chuo-ku, Osaka

Trust beneficiary interest in real estate

3,004.07

2,110

1,994

O-92 Ichigo Minami Otsuka Building

Minami Otsuka, Toshima-ku, Tokyo

Trust beneficiary interest in real estate

3,127.84

3,080

2,875
3,334

O-93 Ichigo Nogizaka Building

Akasaka, Minato-ku, Osaka

Trust beneficiary interest in real estate

2,175.88

3,580

Z-02

Ichigo Fiesta Shibuya Building

Udagawacho, Shibuya-ku, Tokyo

Real estate

1,185.85

2,210

1,960

Z-09

Konami Sports Club Izumi Fuchu

Fuchucho, Izumi City, Osaka

Trust beneficiary interest in real estate

1,185.85

2,210

1,960

Z-10

Ichigo Shibuya Bunkamura Dori
Building

Udagawacho, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

3,733.68

1,440

1,083

Z-11

Twicere Yokohama Isogo (Retail
Section)Mori, Isogo-ku, Yokohama

Trust beneficiary interest in real estate778.77

3,220

2,462

Z-12

Lions Square Kawaguchi

Motogo, Kawaguchi City, Saitama

Trust beneficiary interest in real estate

2,717.77

1,880

1,509

Z-13

Ichigo Shin Yokohama Arena Dori
Building

Shin Yokohama, Kohoku-ku,
Yokohama

Trust beneficiary interest in real estate

7,788.09

2,520

2,370

Z-14

Ichigo Kamata Building

Nishi Kamata, Ota-ku, Tokyo

Trust beneficiary interest in real estate

Total(Note 1)
(Note 2)

2,124.68

1,520

1,444

264,762.27

234,805

200,472

The appraisal value at period-end is the value appraised by the real estate appraisers of Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., The Tanizawa Sogo
Appraisal Co., Ltd. and Rich Appraisal Institute under the Articles of Incorporation of Ichigo Office and the Regulation on Accounting of Investment Corporations (Cabinet
Office Order No. 47 of 2006 including subsequent amendments).
The book value at period-end does not include construction in progress or construction in progress in trust.

– 13 –

The following shows the status of rental activity at Ichigo Office assets in the 26th and 27th Periods:
26th Fiscal Period
From May 1, 2018 to October 31, 2018
Asset Name

Number of
Tenants at
Period-end(tenants)

Occupancy at
Period-end(%)(Note 2)

(Note 1)

RentalIncome(thousandyen)

27th Fiscal Period
From November 1, 2018 to April 30, 2019

Ratio to Total
RentalIncome (%)

Number of
Tenants at
Period-end(tenants)

Occupancy at
Period-end(%)(Note 2)

(Note 1)

RentalIncome(thousandyen)

Ratio to Total
RentalIncome (%)

O-02 Ichigo Nishisando Building

16

100.0

133,262

1.7

16

100.0

132,420

1.7

O-03 Ichigo Mita Building

10

100.0

123,059

1.6

9

100.0

122,778

1.6

O-04 Ichigo Nanpeidai Building

13

100.0

77,620

1.0

13

100.0

79,4631.0

O-05 Ichigo Hanzomon Building

7

100.0

60,421

0.8

6

100.0

59,9200.8

O-06 Ichigo Hijirizaka Building

6

100.0

59,055

0.8

6

100.0

58,9200.8

Ichigo Shibuya Kamiyamacho
Building

4

100.0

52,588

0.7

4

100.0

52,0840.7

O-08 Ichigo Akasaka 5 Chome Building

9

100.0

29,122

0.4

9

100.0

28,181

0.4

O-09 Ichigo Shibakoen Building

5

100.0

48,915

0.6

4

100.0

36,8690.5

O-10 Ichigo Ebisu Nishi Building

8

100.0

70,320

0.9

8

100.0

70,3420.9

O-11 Ichigo Ginza 612 Building

24

96.5

65,063

0.9

25

100.0

64,6960.8

O-12 Ichigo Uchikanda Building

8

100.0

42,488

0.6

8

81.1

46,267

0.6

O-14 Ichigo Yotsuya 4 Chome Building

10

100.0

21,034

0.3

10

100.0

20,6520.3

O-15 Ichigo Tameike Building

5

80.6

19,192

0.3

6

100.0

20,2800.3

O-07

O-16 Ichigo Jimbocho Building

7

92.6

69,757

0.9

8

100.0

75,2631.0

O-17 Ichigo Hakozaki Building

7

100.0

54,437

0.7

7

100.0

54,4000.7

O-18 Ichigo Kudan 2 Chome Building

1

100.0

30,432

0.4

1

100.0

27,4870.4

O-19 Ichigo Kudan 3 Chome Building

5

100.0

35,837

0.5

5

100.0

35,6100.5

O-20 Ichigo Gotanda Building

14

100.0

208,149

2.7

14

100.0

208,035

2.7

O-21 Ichigo Shin Yokohama Building

14

97.7

75,194

1.0

14

97.7

79,9571.0

O-22 Ichigo Minami Ikebukuro Building

10

100.0

53,107

0.7

10

100.0

53,577

0.7

O-23 Ichigo Nakano North Building

6

90.8

39,244

0.5

6

100.0

37,947

0.5

O-24 Ichigo Eitai Building

10

100.0

65,481

0.9

10

100.0

63,8720.8

O-26 Ichigo Ikejiri Building

5

100.0

81,889

1.1

5

100.0

82,307

1.1

O-27 Ichigo Nishi Ikebukuro Building

1

100.0

26,387

0.3

1

100.0

31,5400.4

O-28 Ichigo Nishi Gotanda Building

9

100.0

33,943

0.4

9

100.0

34,1280.4

O-29 Ichigo Kichijoji Building

14

100.0

111,068

1.5

13

100.0

114,171

1.5

O-34 Ichigo Sakae Building

19

100.0

219,398

2.9

19

100.0

219,207

2.8

O-37 Ichigo Marunouchi Building

23

100.0

235,874

3.1

23

100.0

232,704

3.0

O-38 Ichigo Toyamaeki Nishi Building

15

98.5

117,837

1.5

14

97.5

123,741

1.6

O-39 Ichigo Mirai Shinkin Building

21

95.4

79,227

1.0

21

95.4

78,6631.0

O-42 Ichigo Takamatsu Building

13

98.7

155,880

2.0

13

97.3

152,182

2.0

O-46 Ichigo Kanda Nishikicho Building

10

100.0

93,051

1.2

10

100.0

91,843

1.2

O-47 Ichigo Akihabara North Building

1

100.0

214,519

2.8

1

100.0

214,327

2.8

Ichigo Sakaisuji Honmachi
O-48
Building

17

100.0

93,258

1.2

17

100.0

93,086

1.2

Ichigo Kanda Ogawamachi
Building

9100.0

81,596

1.1

9

100.0

81,6691.0

O-50 Ichigo Hatchobori Building

7

100.0

92,399

1.2

7

100.0

91,702

1.2

O-49

O-51 Ebisu Green Glass

2

100.0

162,634

2.1

2

100.0

161,993

2.1

O-52 Ichigo Omori Building

9

100.0

132,597

1.7

8

100.0

131,656

1.7

O-53 Ichigo Takadanobaba Building

8

100.0

61,833

0.8

8

100.0

62,4740.8

O-54 Ichigo Omiya Building

30

99.0

154,884

2.0

30

100.0

159,472

2.0

O-55 Ichigo Sagamihara Building

13

100.0

60,462

0.8

13

100.0

60,1280.8

O-56 Ichigo Ofuna Building

9

100.0

94,222

1.2

9

100.0

94,134

1.2

O-57 Ichigo Sendai East Building

11

97.9

101,436

1.3

10

95.5

102,104

1.3

O-58 Ichigo Kumamoto Building

31

100.0

86,189

1.1

31

97.5

86,633

1.1

O-59 Ichigo Jingumae Building

7

100.0

191,727

2.5

7

100.0

203,500

2.6

Ichigo Shibuya Dogenzaka
O-60
Building

9100.0

126,656

1.7

9

100.0

125,778

1.6

O-61 Ichigo Hiroo Building

5

100.0

133,128

1.7

5

100.0

133,903

1.7

O-62 Ichigo Sasazuka Building

6

100.0

181,472

2.4

6

100.0

183,552

2.4

O-63 Ichigo Nihonbashi East Building

7

100.0

148,804

1.9

7

100.0

147,325

1.9

O-64 Ichigo Sakurabashi Building

6

100.0

81,855

1.1

6

100.0

83,403

1.1

O-65 Ichigo Shinkawa Building

6

100.0

69,008

0.9

6

100.0

76,013

1.0

O-66 Ichigo Kudan Building

9

100.0

103,114

1.4

9

100.0

103,195

1.3

O-67 Ichigo Higashi Gotanda Building

18

100.0

124,046

1.6

18

100.0

130,131

1.7

O-68 Axior Mita

12

100.0

67,235

0.9

12

100.0

68,1390.9

O-69 Ichigo Higashi Ikebukuro Building

20

100.0

150,960

2.0

20

100.0

160,056

2.1– 14 –

26th Fiscal Period
From May 1, 2018 to October 31, 2018
Asset Name

Number of
Tenants at
Period-end(tenants)

Occupancy at
Period-end(%)(Note 2)

(Note 1)

RentalIncome(thousandyen)

27th Fiscal Period
From November 1, 2018 to April 30, 2019

Ratio to Total
RentalIncome (%)

Number of
Tenants at
Period-end(tenants)

Occupancy at
Period-end(%)(Note 2)

(Note 1)

RentalIncome(thousandyen)

Ratio to Total
RentalIncome (%)

O-70 Koriyama Big-i (Office Section)

14

100.0

103,609

1.4

14

100.0

103,118

1.3

O-71 Ichigo Kawasaki Building

17

100.0

88,260

1.2

17

100.0

90,846

1.2

O-72 Ichigo Shibuya East Building

3

100.0

42,273

0.6

3

100.0

41,9300.5

O-73 Ichigo Ningyocho Building

8

100.0

46,228

0.6

8

100.0

46,542

0.6

O-74 Ichigo Nishi Honmachi Building

31

100.0

110,048

1.4

31

100.0

106,512

1.4

O-75 Ichigo Hakata Building

28

100.0

53,063

0.7

28

100.0

52,9680.7

O-76 Ichigo Nishiki First Building

4

89.7

24,251

0.3

5

100.0

69,106

0.9

O-77 Ichigo Ikenohata Building

7

100.0

157,575

2.1

7

100.0

162,527

2.1

O-78 Ichigo Ikebukuro East Building

3

100.0

91,548

1.2

3

100.0

94,4601.2

O-79 Ichigo Motoazabu Building

3

100.0

53,485

0.7

3

100.0

53,1470.7

O-80 Ichigo Otsuka Building

7

100.0

92,321

1.2

7

100.0

91,265

1.2

O-81 Ichigo Nagoya Building

36

100.0

146,376

1.9

36

100.0

150,447

1.9

O-82 Ichigo Fushimi Building

38

87.9

88,391

1.2

39

94.6

88,075

1.1

O-83 Ichigo Nishiki Building

23

100.0

49,490

0.6

23

100.0

49,1730.6

O-84 Ichigo Minami Morimachi Building

12

100.0

47,740

0.6

12

100.0

47,353

0.6

Ichigo Shibuya Udagawacho
O-85
Building

8

100.0

86,566

1.1

8

100.0

85,0301.1

O-86 Win Gotanda Building

11

100.0

113,204

1.5

11

100.0

111,474

1.4

O-87 Ichigo Hongo Building

7

100.0

81,630

1.1

7

100.0

82,031

1.1

O-88 Oimachi Center Building

8

100.0

73,205

1.0

8

100.0

72,9420.9

O-89 Win Gotanda Building 2

9

100.0

95,396

1.2

9

100.0

106,084

1.4

O-90 MIF Building

6

88.3

58,718

0.8

7

100.0

60,9800.8

O-91 Ichigo Uchi Honmachi Building

16

96.3

9,933

0.1

16

90.7

58,6180.8

O-92 Ichigo Minami Otsuka Building

―

―

―

―

9

100.0

53,0890.7

O-93 Ichigo Nogizaka Building

―

―

―

―

5

100.0

54,1390.7

Z-02 Ichigo Fiesta Shibuya Building

10

100.0

68,703

0.9

10

100.0

70,7690.9

Z-03 Ichigo Burg Omori(Note 3)

―

―

3,625

0.0

―

―

―

―

Z-05 Ichigo Machida East Building

10

100.0

66,6710.9――

18,367

0.2

Ichigo Sapporo Minami 2 Nishi 3
Z-07
Building(Note 3)

―

―

808

0.0

―

―

―

―

Z-08 Ichigo Daimyo Balcony(Note 4)

―

―

575

0.0

―

―

―

―

Z-09 Konami Sports Club Izumi Fuchu

1

100.0

63,000

0.8

1

100.0

63,0000.8

Z-10

Ichigo Shibuya Bunkamura Dori
Building

4

100.0

75,827

1.0

4

100.0

75,868

1.0

Z-11

Twicere Yokohama Isogo (Retail
Section)8

100.0

81,421

1.1

8

100.0

81,953

1.1

3

100.0

123,562

1.6

3

100.0

121,997

1.6(Note 5)Z-12 Lions Square Kawaguchi
Ichigo Shin Yokohama Arena Dori
Z-13
Building(Note 5)

5

100.0

78,396

1.0――

21,0160.3

Z-14 Ichigo Kamata Building

2

100.0

54,047

0.7

2

100.0

53,516

0.7

923

99.2

7,632,352

100.0

921

99.3

7,782,261

100.0

Total
(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)In the column “Number of Tenants at Period-end,” the total number of tenants who have concluded a lease contract with Ichigo Office or the trustee as the lessor is stated. If amaster lease contract has been concluded with a master leasing company other than Ichigo Office, the number of tenants is counted as one.
“Occupancy Rate at Period-end” is the ratio of the Leased Area within the Leasable Area of the real estate or real estate in trust as of period-end. The ratio is rounded off to thefirst decimal place.
The asset was sold on March 30, 2018.
The asset was sold on April 20, 2018.
The asset was sold on December 20, 2018.

Details of Renewable Energy Power Generation Equipment
N/A

Details of PPP and PFI
N/ADetails of Investments in Securities
N/A– 15 –

4 Status of Other Assets
Trust beneficiary rights whose major asset is real estate are included in “3. Portfolio Overview” above, and major specified assets inwhich the Investment Corporation invests as of April 30, 2019 are as follows.

Contract Value and Market Value of Specified Transactions
The table below shows the contract value and fair value of a specified transaction at Ichigo Office as of April 30, 2019.
Classification
Transactions Other than Market
Transactions

Type

Contract Amount (thousand yen)
(Note 1)

Interest rate swap (pay fixed,
receive floating)
Total(Note 1)
(Note 2)Market Value (thousand yen)

Exceeding One Year (Note 1)(Note 2)

98,976,297

84,626,332―

98,976,297

84,626,332―

The contract amount of interest rate swap is based on the notional principal.
Since the above transaction meets the specific matching criteria of the Accounting Standard for Financial Instruments, the statement of market value is omitted.

5 Assets by Country and Region
All Ichigo Office assets are located in Japan.

– 16 –

Capital Expenditures

1 Schedule of Capital Expenditures
The major renovation-related capital expenditures planned as of April 30, 2019 are as described below. The payment amount for thescheduled work below includes the amount classified as accounting expenses.
Expected Payment Amount (thousand yen)
Asset Name
(Location)

Purpose

PeriodIchigo Toyamaeki Nishi Building(Toyama City, Toyama)

Air Conditioning Upgrade

From September 2019
to October 2019

Ichigo Hakata Building (Hakataku,Fukuoka)

Exterior Wall Renovation

Ichigo Kawasaki Building(Kawasaki City, Kanagawa)Ichigo Uchikanda Building(Chiyoda-ku, Tokyo)

Amount Paid in the
Fiscal Period under
Review

Amount Already Paid

42,481――

From February 2020
to March 2020

27,763――

Elevator Upgrade

From March 2020
to April 2020

27,670――Renovation to Leasable
Space

From May 2019
to May 2019

16,900――Total Amount2 Capital Expenditures during the Current Fiscal Period
Capital expenditures during the current fiscal period amounted to 442,533 thousand yen, and construction work of a total of 581,382
thousand yen were conducted, combined with repair expenses of 138,848 thousand yen.

3 Cash Reserves for Long-Term Repair and Maintenance Plans
Based on each asset’s long-term repair and maintenance plans, Ichigo Office reserves funds for future large-scale repairs and renovations
from cash flow during each fiscal period as follows.
(Thousand yen)

Balance of Reserves at
Beginning of Period
Gains
Reversals
Amount Brought Forward
to Next Period

23rd Fiscal Period
From November 1, 2016
to April 30, 201724th Fiscal Period
From May 1, 2017 to
October 31, 2017

25th Fiscal Period
From November 1, 2017
to April 30, 2018

26th Fiscal Period
From May 1, 2018 to
October 31, 2018

27th Fiscal Period
From November 1, 2018
to April 30, 2019927,259

1,094,211

1,183,437

1,255,148

1,537,351

892,636

794,999

707,271

833,530

642,828

725,683

705,773635,561

551,326

688,314

1,094,211

1,183,437

1,255,148

1,537,351

1,491,865– 17 –

Expenses and Liabilities

1 Details of Operating Expenses(Thousand yen)

26th Fiscal Period
From May 1, 2018 to October 31, 2018

27th Fiscal Period
From November 1, 2018 to April 30, 2019a. Asset Management Fees

765,737b. Asset Custody Fees

14,761

807,440
14,872c. Administrative Service Fees

47,641

43,293d. Directors’ Compensation

5,040

5,040

e. Other Operating Expenses

60,47479,328

Total

893,654949,974

2 Borrowings
The table below shows borrowings as of April 30, 2019.
Lender

Loan
Date

SMBC

Balance at
Period-end(million yen)

1,547

－

483

－

1,063

－

Mizuho Bank

773－

Resona Bank

1,000

－

1,000

－

SMBC

1,471

1,470

Mizuho Bank

1,275

1,274

Resona Bank

883

882

883

882

883

882

Shinsei Bank
Aozora Bank

Bank of
Fukuoka

Shinsei Bank

December
10, 2013

April 30,
2014

August 1,
2014

Aozora Bank

Long-Term
Loans

Balance at
Period-start(million yen)

The Kagawa
Bank

490

490

ORIX Bank

490

490

SMBC

1,227

1,225

Mizuho Bank

1,227

1,225

Aozora Bank

785

784

785

784

Resona Bank

589

588

MUFG Bank

785

784

SMBC

1,227

1,225

Mizuho Bank

1,227

1,225

Aozora Bank

785

784

785

784

Resona Bank

589

588

MUFG Bank

785

784

2,127

2,127

1,998

1,998

ORIX Bank

400

400

SMBC

674

673

Shinsei Bank

Shinsei Bank

December
10, 2014

December15, 2014

Aozora Bank
Shinsei Bank

Mizuho Bank
Shinsei BankMUFG Bank

February27, 2015

April 30,
2015

611

610

642

642

550

549

Average
Interest Rate(%)

– 18 –

Repayment
Date

Repayment
Terms

November30, 2018(Note 3)

0.969

April 26,2019

(Note 4)

1.070

July 31,2019(Note 5)

December
10, 2020(Note 6)

December16, 2019(Note 7)

August 31,
2020

Lump-sum
repayment

November29, 2019(Note 8)Use

Collaterized(Note 15)

No
(No Guarantee)(Note 1)

1.468
(Note 2)

(Note 2)

1.267
(Note 2)

1.033
(Note 2)

1.142
(Note 2)

1.148
(Note 2)

Lender

Loan
Date

Balance at
Period-end(million yen)

SMBC

1,374

1,372

Mizuho Bank

1,251

1,249

1,312

1,311

MUFG Bank

1,126

1,124

SMBC

1,960

1,958

Mizuho Bank

1,960

1,958

Aozora Bank

591

591

Shinsei Bank

774

773

1,632

1,630

Shinsei BankMUFG Bank

April 30,
2015

May 7,
2015

Resona Bank

1,368

1,366

Bank of
Fukuoka448

448

ORIX Bank

448

448

SMBC

1,960

1,958

Mizuho Bank

1,960

1,958

Aozora Bank

591

591

774

773

1,632

1,630

Shinsei BankMUFG Bank

May 7,
2015

Resona Bank

1,368

1,366

Bank of
Fukuoka448

448

ORIX Bank

448

448

1,590

1,589

SMBC

Long-term
Loans

Balance at
Period-start(million yen)Mizuho Trust

287

286

Resona Bank

574

573

Aozora Bank

September
30, 2015

Average
Interest Rate
(%)

1.185
(Note 2)1.275
(Note 2)

1.347
(Note 2)

0.985

574

573

1,071

1,070

ORIX Bank

287

286

496

496

955

955

0.662

894

893

0.612

The Kagawa
Bank
SMBC

September
30, 2015
September
30, 2015

SMBC

1,442

1,441

Mizuho Bank

1,044

1,043

895

894

MUFG BankMay 9,
2016

Shinsei Bank
SMBC
Mizuho BankMUFG BankMay 9,
2016

Shinsei Bank
SMBC

497

497

1,442

1,441

1,044

1,043

895

894

497

497

1,791

1,789

Mizuho Bank

895

894

MUFG Bank

696

695

597

596

497

497

497

497

497

497

348

347

Shinsei Bank
Aozora Bank
Bank of
Fukuoka
Nishi-Nippon
City Bank
Resona BankMay 24,2016– 19 –

Repayment
Terms

May 29,2020(Note 9)May 7, 2021

(Note 10)

November 8,
2021(Note 10)

Use

Collaterized(Note 15)

No
(No Guarantee)(Note 1)

Mizuho BankMUFG Bank

Repayment
Date(Note 2)0.808
(Note 2)0.858
(Note 2)0.705
(Note 2)

March 31,2021

March 31,2020
September
30, 2019(Note 11)

Lump-sum
repayment(Note 12)

May 31,
2022(Note 13)

November30, 2022(Note 13)

May 31,
2022(Note 14)

Lender

Loan
Date

SMBC

Balance at
Period-end(million yen)

Average
Interest Rate
(%)

1,791

1,789

895

894

MUFG Bank

696

695

Shinsei Bank

597

596

497

497

497

497

497

497

348

347

1,000

－

0.452

1,000

1,000

0.845

500

500

0.675

500

500

0.708

1,100

1,100

1,000

1,000

900

900

400

400

2,000

2,000

215

215

May 24,
2016

Bank of
Fukuoka
Nishi-Nippon
City Bank
Resona Bank
SMBC
SMBC
Development
Bank of Japan
Development
Bank of Japan
SMBC
Mizuho Bank
Shinsei Bank
Resona Bank
Development
Bank of Japan

November2, 2016
November2, 2016
November
2,2016
November
2,2016May
10,2017May
10,2017May
10,2017May
10,2017May
10,2017

SMBC
Mizuho Bank

340

340

MUFG Bank

283

283

237

237

Shinsei Bank

135

135

Bank of
Fukuoka

195

195

ORIX Bank

195

195

SMBC

633

633

Mizuho Bank

508

508

Resona BankMUFG Bank

November
7, 2017

425

425

356

356

Shinsei Bank

201

201

Aozora Bank

257

257

SMBC

352

352

1,352

1,352

901

901

Shinsei Bank

901

901

Resona Bank

448

448

Resona Bank

November
7, 2017Mizuho Trust
Aozora Bank

April 27,
2018

SMBC

400

400

Mizuho Bank

350

350

300

300

300

300

225

225

200

200

225

225

Shinsei BankMUFG Bank
Bank of
Fukuoka
The Kagawa
Bank
Nishi-Nippon
City BankMay 9,
2018– 20 –

Repayment
Date

Repayment
Terms

November30, 2022(Note 14)

Use

Collaterized(Note 15)

No
(No Guarantee)(Note 1)

Mizuho Bank

Aozora Bank

Long-term
Loans

Balance at
Period-start(million yen)

0.750
(Note 2)

(Note 2)0.852
(Note 2)0.852
(Note 2)0.852
(Note 2)0.852
(Note 2)

0.871

0.761
(Note 2)

0.948
(Note 2)0.990
(Note 2)0.795
(Note 2)

April 26,
2019
October 31,
2023
September
30,2021January 31,
2022
November11, 2024
November11, 2024
November11, 2024
November11, 2024
May 10,2023

Lump-sum
repayment
Lump-sum
repayment
Lump-sum
repayment
Lump-sum
repayment
Lump-sum
repayment
Lump-sum
repayment
Lump-sum
repayment
Lump-sum
repayment

October 31,
2023

Lump-sum
repayment

October 31,
2025

Lump-sum
repayment

April 30,2026

Lump-sum
repayment

April 30,2024

Lump-sum
repayment(Note 4)

Lender

Loan
Date

Balance at
Period-end(million yen)

SMBC

835

835

Mizuho Bank

491

491

Shinsei Bank

Average
Interest Rate
(%)

393

393
393

Aozora Bank

393

393

Resona Bank

294

294

147

147

500

500

0.632

400

400

0.632

1,000

1,000

400

400

0.712

200

200

0.712

SMBC

－

954

Mizuho Bank

－

773

－

483

－

656

－

830

－

570

－

250

－

400

－

400

－

300

－

250

－

1,000

－

1,000

－

1,000

103,400

105,324

103,400

105,324

June 15,
2018

The Kagawa
Bank
SMBC
Mizuho Bank
SMBC
Mizuho Bank
Shinsei Bank

Shinsei Bank

September
28,2018
September
28,2018
October
31,2018
October
31,2018
October
31,2018

November30, 2018

Aozora Bank
SMBC
Aozora Bank

December21, 2018

SMBC
Mizuho Bank
Development
Bank of Japan

December28, 2018

MUFG Bank
Shinsei Bank
SMBC
Resona Bank
Bank of
Fukuoka
Subtotal
Total

April 26,
2019
April 26,
2019
April 26,
2019

Repayment
Date

Repayment
Terms

November11, 2024

Lump-sum
repayment

February
29,2024
February
29,2024
April
30,2026
April
30,2026
April
30,2026

Lump-sum
repayment
Lump-sum
repayment
Lump-sum
repayment
Lump-sum
repayment
Lump-sum
repayment

Use

Collaterized(Note 15)

No
(No Guarantee)(Note 1)393

MUFG Bank

Long-term
Loans

Balance at
Period-start(million yen)

0.860
(Note 2)

0.962
(Note 2)0.975
(Note 2)0.907
(Note 2)0.850
(Note 2)0.867
(Note 2)0.867
(Note 2)0.867
(Note 2)September
30, 2026

Lump-sum
repayment

September
30, 2026

Lump-sum
repayment

April 30,2026

Lump-sum
repayment

September25, 2026
September25, 2026
September25, 2026

Lump-sum
repayment
Lump-sum
repayment
Lump-sum
repayment(Note 1) Average Interest Rate indicates a weighted average of interest rates during the period based on the number of days, and it is rounded down to the stated unit.
(Note 2) To avoid interest rate risk, an interest rate swap agreement has been signed separately to fix the interest rates, and the weighted average interest rate during the period after theeffect of the interest rate swap is stated.
(Note 3) The remaining balance was repaid on November 30, 2018.
(Note 4) The remaining balance was repaid on April 26, 2019.
(Note 5) 4 miilion yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The entire amount of the balance at period-end is included in long-term borrowings due within one year.
(Note 6) 3 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The balance at period-end includes long-term borrowings due within one year of 13 million yen.
(Note 7) 3 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The entire amount of the balance at period-end is included in long-term borrowings due within one year.
(Note 8) 1 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The entire amount of the balance at period-end is included in long-term borrowings due within one year.
(Note 9) 2 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The balance at period-end includes long-term borrowings due within one year of 10 million yen.
(Note 10) 4 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The balance at period-end includes long-term borrowings due within one year of 18 million yen.
(Note 11) 2 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The balance at period-end includes long-term borrowings due within one year of 9 million yen.
(Note 12) 0.4 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The entire amount of the balance at period-end is long-term borrowings due within one year.
(Note 13) 1 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The balance at period-end includes long-term borrowings due within one year of 7 million yen.
(Note 14) 2 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The balance at period-end includes long-term borrowings due within one year of 11 million yen.
(Note 15) The proceeds are used for acquisition of assets and/or beneficiary rights of real estate in trust and repayment of loans.

– 21 –

3 Investment Corporation Bonds
The status of investment corporation bonds outstanding as of April 30, 2019 is as follows:
Date ofIssuance

Balance at
Period-start(million yen)

Balance at
Period-end(million yen)Interest Rate(%)

Redemption
Date

Redemption
MethodFirst unsecured investment
corporation bonds

September 22,
2017

1,200

1,200

0.900

September 22,
2027

Lump-sum
repayment

Second unsecured investment
corporation bonds

April 26, 2018

1,000

1,000

0.900

April 26, 2028

Lump-sum
repayment

Third unsecured investment
corporation bonds

November 29,
2018

－

1,000

0.750

November 28,
2025

Lump-sum
repayment

2,200

3,200

Total
(Note 1)
(Note 2)The proceeds are used for repaying existing loans.
A ranking pari passu among Ichigo Office investment corporation bonds is attached.

4 Short-Term Investment Corporation Bonds
N/A

5 Share Options
N/A– 22 –

Use

Colltarized(Note 1)No(No
guarantee)

Acquisitions and Sales during the Fiscal Period

1Acquisitions and Sales of Real Estate and Asset-Backed Securities, Infrastructure Assets,
and Infrastructure-Related Assets
Acquisitions
Asset Name

Date

Sales

Price
(million yen)Book Value(million yen)

Gain (loss)
on Sales(million yen)

2,947

650

―

―

―

―

―

4

18

Price
(million yen)

Date

(Note 1)

(Note 1)――

December 20,
2018

Ichigo Minami Otsuka Building

December 21,
2018

2,780

―

Ichigo Nogizaka Building

December 28,
2018

3,315

―

―

―

February 21,
2019

24

Ichigo Machida East Building・
Ichigo Shin Yokohama Arena Dori Building

Ichigo Toyamaeki Nishi Building (Portion)(Note 1)
(Note 2)
(Note 3)―3,600
(Note 2)

(Note 3)Acquisition and sales prices exclude incidental expenses such as fees and property, city planning, and consumption taxes.
Sales Price is the total sale price of the two assets, because the buyer did not provide consent to disclose each asset’s sales price.
Price includes 11million yen of compensation to Ichigo Office from the buyer

2 Acquisition and Sales of Other Assets
Assets other than the assets acquired shown above are mostly bank deposits and bank deposits in trust.

3 Review of Asset Values (Appraisal Values)(1) Real EstateTransaction

Asset NameTransaction
Date

Sale

Ichigo Machida East Building

December 20,2018

Sale

Ichigo Shin Yokohama Arena
Dori Building

December 20, ,2018

Transaction Price(million yen)Appraisal Value(million yen)

(Note 1)

(Note 2)―
(Note 2)―
(Note 2)

1,550

Appraiser

Date of
Appraisal

The Tanizawa Sōgō Appraisal Co.,
Ltd.

October 31, 2018

1,780 Daiwa Real Estate Appraisal Co., Ltd.

October 31, 2018

Acquisition Ichigo Minami Otsuka Building

December 21, 2018

2,780

3,080 Daiwa Real Estate Appraisal Co., Ltd. November 1, 2018

Acquisition Ichigo Nogizaka Building

December 28, 2018

3,315

3,510

The Tanizawa Sōgō Appraisal Co.,Ltd.

November 1, 2018

Ichigo Toyamaeki Nishi
Building (Portion)

February 21,2019

12

9

The Tanizawa Sōgō Appraisal Co.,Ltd.

December 1, 2018

Sale
(Note 1)
(Note 2)
(Note 3)

Transaction Prices exclude incidental expenses such as fees and property, city planning, and consumption taxes.
The appraisal above is carried out by applying the “Appraisal of Value of Real Estate for Securitization in Chapter 3 of the Specific Standards of the Japanese Real EstateAppraisal Standards.”
The total sale price of the two assets is 3,600 million yen, unit sales price is undisclosed, because the buyer did not provide consent to disclose each asset’s sales price.

(2) Other
For assets that require a transaction price investigation pursuant to Article 201 of the Act on Investment Trusts and Investment
Corporations and were not part of the list shown above, Ichigo Office entrusted the price inspection to Grant Thornton Taiyo LLC. For
the inspection period of November 1, 2018 to April 30, 2019, the transactions subject to price verification were three interest rate swaps.
With respect to the price verification of these interest rate swaps, all related research work was outsourced, including identification of
the transaction counterparties, currency, interest rates, maturity, and other relevant transaction information.

– 23 –

4 Transactions with Related Parties(Note 1)

(1) Transactions
N/A(2) Amount of Fees Paid
N/A
(Note 1)

Related Parties are as defined in Article 123 of the Enforcement Ordinance of the Investment Trust and Investment Corporation Law and Article 26 Paragraph 27 of the Regulationof the Investment Trust Association, Japan.

5 Transactions between the Asset Management Company and its Other Businesses
While Ichigo Investment Advisors Co., Ltd., the Asset Management Company of Ichigo Office, concurrently engages in operations of
the Type II Financial Instruments Business, Real Estate Brokerage Business, and Real Estate Syndication Business, there are no
applicable transactions.

– 24 –

Financial Statements

1 Assets, Liabilities, Principal, Profit and Loss
Please refer to “II. Balance Sheet,” “III. Income Statement,” “IV. Statement of Changes in Net Assets,” “V. Notes to Financial
Statements,” and “VI. Statement of Dividends” later in this report.

2 Changes in Method of Depreciation
N/A

3 Changes in Method of Real Estate and Infrastructure Assets Appraisal
N/A

Other

1 Ichigo Office Shares Held by Asset Management Company
Details of Ichigo Office shares held by Ichigo Investment Advisors Co., Ltd., the Asset Management Company, are as follows:(1) Transactions
Date

Number of Shares Acquired (shares)

Number of Shares Sold (shares)

Number of Shares Held (shares)

November 1, 2011

(Note)1,200

―

1,400

Cumulative total

1,400

―

1,400

(Note) Reflects a 7-for-1 share split with November 1, 2011 as the effective date.

(2) Status of Holdings
Number of Shares Heldat Period-end (shares)

Value of Shares Heldat Period-end(thousand yen)(Note)

Ratio of Total
Outstanding Shares (%)

17th Fiscal Period (November 1, 2013 to April 30, 2014)

1,400

86,1000.1

18th Fiscal Period (May 1, 2014 to October 31, 2014)

1,400

117,180

0.1

19th Fiscal Period (November 1, 2014 to April 30, 2015)

1,400

125,7200.1

20th Fiscal Period (May 1, 2015 to October 31, 2015)

1,400

117,040

0.1

21st Fiscal Period (November 1, 2015 to April 30, 2016)

1,400

116,760

0.1

22nd Fiscal Period (May 1, 2016 to October 31, 2016)

1,400

98,9800.1

23rd Fiscal Period (November 1, 2016 to April 30, 2017)

1,400

88,3400.1

24th Fiscal Period (May 1, 2017 to October 31, 2017)

1,400

103,040

0.1

25th Fiscal Period (November 1, 2017 to April 30, 2018)

1,400

113,820

0.1

26th Fiscal Period (May 1, 2018 to October 31, 2018)

1,400

129,640

0.1

27th Fiscal Period (November 1, 2018 to April 30, 2019)

1,400

143,6400.1(Note) The Value of Shares Held at Period-end is calculated by multiplying the Number of Shares Held by the share price at period-end.

– 25 –

2 Notices
N/A

3 Disclosure of Affiliated Foreign Real Estate Holding Companies
N/A

4 Disclosure of Assets Owned by Affiliated Foreign Real Estate Holding Companies
N/A

5 OtherIn this document, whole numbers are rounded down and ratios are rounded off, unless otherwise specified.

– 26 –

1. Financial Statements(1) Balance Sheet
Previous fiscal period(As of October 31, 2018)
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
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture, and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant, and equipment
Intangible assets
Leasehold rights in trust
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total non-current assets
Deferred assets
Bond issuance expenses
Total deferred assets
Total Assets– 28 –(Thousand Yen)
Current fiscal period(As of April 30, 2019)

9,323,086
13,229,574
5,208
410,582
231,965
2,258
23,202,676

10,021,971
13,654,840
15,125428,834–
2,257
24,123,029

7,235,000(1,482,991)
5,752,008
26,834(22,864)
3,969
283,903(132,565)
151,337
52,176(40,337)
11,83817,425,755
42,869,885(6,557,635)*1 36,312,249
62,165(27,454)
34,710518,515(245,132)
273,383
171,689(97,101)
74,588133,082,735
754
193,123,333

7,260,271(1,592,792)
5,667,479
26,834
ሺ23,865)2,968
286,757
ሺ143,999)
142,757
56,422
ሺ42,887)
13,535
17,425,755
42,835,577(7,099,173)
35,736,403
62,204(29,425)
32,778574,386(261,965)
312,420
192,509(110,073)
82,435
136,560,928
980
195,978,444

4,494,579
4,494,579

4,494,579
4,494,579

10,000890,520
63,335
963,856
198,581,769

10,000970,693
69,4491,050,142
201,523,165

22,812
22,812
221,807,258

31,846
31,846225,678,041

Previous fiscal period(As of October 31, 2018)
Liabilities
Current Liabilities
Operating accounts payable
Long-term loans (due within one year)
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Long-Term Liabilities
Investment corporation bonds
Long-term borrowings
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Asset retirement obligations
Other
Total long-term liabilities
Total Liabilities
Net Assets
Shareholders’ Equity
Shareholders’ capital
SurplusCapital reserve surplus
Discretionary reserves
Reserve for dividends
Reserve for temporary difference adjustments
Total discretionary reserves
Unappropriated retained earnings (undisposed loss)
Total surplus
Total Shareholders’ Equity
Total Net Assets
Total Liabilities and Net Assets– 29 –(Thousand yen)
Current fiscal period(As of April 30, 2019)

719,409
14,270,145
591,670
4,140
605
95,224
1,451,818
34,324
17,167,337

642,683
16,198,215
613,798
18,834605
223,3031,476,410
22,10319,195,954

2,200,000
89,130,111
1,579,794
8,414,582
4,443
93,652
101,422,583
118,589,920

3,200,000
89,126,332
1,605,062
8,595,090
10,104
81,735
102,618,324
121,814,279

67,675,274

67,675,274

20,566,420

20,566,420

2,254,373

2,254,373*3 9,739,544*3 9,634,544

11,993,917
2,981,724
35,542,062
103,217,337*2 103,217,337
221,807,258

11,888,917
3,733,149
36,188,487
103,863,761*2 103,863,761
225,678,041

(2) Income Statement(Thousand yen)Previous fiscal period(May 1, 2018 to
October 31, 2018)
Operating Revenues
Rental revenues
Other rental revenues
Gain on sales of real estate
Total operating revenue
Operating Expenses
Rental expenses
Asset management fee
Asset custody fee
Administrative service fees
Directors' compensation
Other operating expenses
Total operating expenses
Operating Profit
Non-Operating Revenues
Interest income
Reversal of distribution payable
Insurance payment income
Interest on tax refund
Other
Total non-operating revenues
Non-operating expenses
Interest expenses
Borrowing expenses
Amortization of bond issuance expenses
Other
Total non-operating expenses
Recurring Profit
Extraordinary Profit
Insurance proceeds
Total extraordinary profit
Extraordinary Losses
Loss on reduction of non-current assets
Total extraordinary losses
Pre-tax income
Income taxes - current
Total income taxes
Net Income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

Current fiscal period(November 1, 2018 toApril 30, 2019)*1 6,947,280*1 7,150,026*1 685,072*1 632,235

7,632,352*2 668,975*1 2,993,236*12,990,685

765,737
14,76147,641
5,040
60,474
3,886,891
3,745,461

807,440
14,872
43,293
5,040
79,3283,940,659
4,510,578

113
868
2,126
3,108

109
1,873
27,129661
439
30,213537,655
251,361
1,241
790,258
2,958,311

535,727
269,9742,021
12
807,735
3,733,055*3 154,024-

154,024*4 130,854

130,854
2,981,480
605
605
2,980,875
848
2,981,724– 30 –

8,451,237

3,733,055
605
605
3,732,450
698
3,733,149

(3) Statement of Changes in Net Assets
Previous fiscal period (May 1, 2018 to October 31, 2018)(Thousand yen)
Shareholders’ equity
SurplusDiscretionary reserves

Shareholders’capitalBalance at beginning of period

Capital reserve
surplusDividend reserve

20,566,420

659,446

67,675,274

Temporary
Total discretionary
difference
reserves
adjustment reserve
9,901,966

10,561,413

Changes during the period
Increase in dividend reserve

1,594,926

Release from temporary
difference adjustment reserve

1,594,926(162,422)(162,422)

Dividends
Net Income
Total changes during the period
Balance at period-end––

1,594,926(162,422)

1,432,504

67,675,274

20,566,420

2,254,373

9,739,544

11,993,917

Shareholders’ equity
Surplus
Unappropriatedretained earnings(undisposed loss)
Balance at beginning of period

Totalshareholders’equityTotal surplus

Total net assets

4,442,764

35,570,598

103,245,872

103,245,872(1,594,926)

–

–

–

162,422–––

Dividends(3,009,411)(3,009,411)(3,009,411)(3,009,411)

Net Income

2,980,875

2,980,875

2,980,875

2,980,875

Changes of items during period
Provision of reserve fordividends
Release from temporary
difference adjustment reserve

Total changes during period(1,461,039)(28,535)(28,535)(28,535)

Balance at period-end

2,981,724

35,542,062

103,217,337

103,217,337– 31 –

Current fiscal period (November 1, 2018 to April 30, 2019)(Thousand yen)
Shareholders’ equity
SurplusDiscretionary reserves

Shareholders’capitalBalance at beginning of period

Capital reserve
surplusDividend reserve

20,566,420

2,254,373

67,675,274

Temporary
Total discretionary
difference
reserves
adjustment reserve
9,739,544

11,993,917(105,000)(105,000)

Changes during the period
Release from temporary
difference adjustment reserve
Dividends
Net Income
Total changes during the period
Balance at period-end

–

–

–

(105,000)(105,000)

67,675,274

20,566,420

2,254,373

9,634,544

11,888,917

Shareholders’ equity
Surplus
Unappropriatedretained earnings(undisposed loss)
Balance at beginning of period

Totalshareholders’equityTotal surplus

Total net assets

2,981,724

35,542,062

103,217,337

103,217,337

105,000–––

Dividends(3,086,026)(3,086,026)(3,086,026)(3,086,026)

Net Income

3,732,450

3,732,450

3,732,450

3,732,450

751,424

646,424

646,424

646,424

3,733,149

36,188,487

103,863,761

103,863,761

Changes of items during period
Release from temporary
difference adjustment reserve

Total changes during period
Balance at period-end– 32 –

(4) Statement of Dividends
Previous fiscal period(May 1, 2018 to
October 31, 2018)
I. Unappropriated Retained Earnings
II. Discretionary Reserve Reversal
Reversal of Temporary Difference
Adjustment Reserve
III. Total Dividends(Dividend per share)
IV. Discretionary Reserves
Provision to Dividend Reserve
V. Retained Earnings Carried Forward

Current fiscal period(November 1, 2018 toApril 30, 2019)

2,981,724,275 yen

3,733,149,050 yen

105,000,000 yen

105,000,000 yen

3,086,026,018 yen(2,014 yen)

3,455,307,185 yen(2,255 yen)–
698,257 yen

382,748,608 yen
93,257 yen

Method for calculating the amount of dividends The dividend policy set out in Article 37 The dividend policy set out in Article 37of the Articles of Incorporation of theof the Articles of Incorporation of theInvestment Corporation stipulates that
Investment Corporation stipulates thatthe amount of dividends shall exceed
the amount of dividends shall exceed
90% of “profit available for dividend” as 90% of “profit available for dividend” asprovided for in Article 67-15, Paragraph provided for in Article 67-15, Paragraph
1 of the Act on Special Measures
1 of the Act on Special Measures
Concerning Taxation. Based on thisConcerning Taxation. Based on thispolicy, the decision was made topolicy, the decision was made to
distribute, as dividends, 3,086,026,018 distribute, as dividends, 3,455,307,185
yen, which was the entire amountyen, which was the entire amountexcluding the fractional portion where
excluding the fractional portion where
the amount of dividends per investment the amount of dividends per share wasunit was less than 1yen fromless than 1 yen from the amount after
3,086,724,275 yen, which was theadding 105,000,000 yen of the reversal
amount after adding 105,000,000 yen of of the temporary difference adjustment
the reversal of the temporary difference reserve to 3,733,149,050 yen of
adjustment reserve to 2,981,724,275 yen unappropriated retained earnings, andof unappropriated retained earnings. As a transferring 382,748,608 yen of gain on
result, the dividend per share was 2,014 sales of real estate to dividend reserves,
yen.
within J-REIT conduit rules. As a result,the dividend per share was 2,255 yen.

– 33 –

(5) Cash Flow Statement(Thousand yen)Previous fiscal period(May 1, 2018 to
October 31, 2018)
Cash flows from operating activities
Pre-tax income
Depreciation
Interest income
Interest expense
Loss on retirement of non-current assets
Insurance proceeds
Loss on reduction of non-current assets
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in accrued consumption taxes
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable
Increase (decrease) in advances received
Decrease due to sales of property, plant, and equipmentin trust
Other
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Cash flows from operations
Cash flows from investing activities
Purchase of property, plant, and equipment
Purchase of property, plant, and equipment in trust
Proceeds from tenant leasehold and security deposits
Repayments from tenant leasehold and security
deposits
Proceeds from tenant leasehold and security deposits intrust
Repayments from tenant leasehold and security
deposits in trust
Cash flows from investments
Cash flows from financing activities
Increase in long-term borrowings
Decrease in long-term borrowings
Proceeds from bond issuance
Dividends paid
Cash flows from financing
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period– 34 –

Current fiscal period(November 1, 2018 toApril 30, 2019)

2,981,480
857,196(113)
537,655
269(154,024)
130,854
1,178(231,965)(5,340)1,314(295,611)
66,38775,778(194,899)

3,733,055
857,127(109)535,727(9,917)
231,965(18,251)(80,172)
128,078
6,879
22,12824,592–

2,952,724

493,724
4,263,885
113(545,938)(605)
3,717,454

24,184
8,408,013
109(521,033)(605)
7,886,484(26,504)(7,864,015)
11,923(43,895)(6,690,269)
29,858(199,014)(4,243)785,265

1,927,715(794,282)(1,814,216)(8,086,626)(6,595,051)

7,446,000(4,633,329)(3,008,722)(196,051)(4,565,222)
27,051,869*1 22,486,646

8,866,000(6,941,709)
988,943(3,085,786)(172,552)
1,118,880
22,486,646*1 23,605,527

(6) Notes to Financial Statements(Going concern note)
N/A(Summary of Significant Accounting Policies)
1. Method of depreciation of fixed(1) Property, plant, and equipment (including assets in trust)
assetsThe depreciation of property, plant, and equipment is calculated using the straight-line
method.
The useful lives of assets are as stated below.
Buildings: 1 to 63 years
Structures: 2 to 20 years
Machinery and equipment: 1 to 15 years
Tools, furniture and fixtures: 1 to 15 years(2) Long-term prepaid expenses
The depreciation of long-term prepaid expenses is calculated using the straight-line method.
2. Accounting for deferred assets

Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized equally over the period up to theredemption.

3. Standards for recognition ofrevenues and expenses

Accounting for fixed asset taxes, etc.
Of the amount of fixed asset taxes, city planning taxes and depreciable asset taxes imposed onreal estate owned that was assessed and determined, the amount corresponding to the relevant
computation period is expensed as expenses in the rental business.
The amount corresponding to fixed asset taxes for the first fiscal year that the Investment
Corporation should incur associated with the acquisition of real estate or trust beneficiaryinterests in real estate is not expensed, but is included in the acquisition costs of the realestate.
The amount corresponding to fixed asset taxes that was included in the acquisition costs ofreal estate for the previous fiscal period was 24,346 thousand yen, whereas for the current
fiscal period is 639 thousand yen.

4. Method of hedge accounting(1) Method of hedge accounting
In cases where the interest rate swaps meet the conditions for special treatment, special
treatment is adopted.
(2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items: Interest on loans(3) Hedging policy
The Investment Corporation conducts derivative transactions to hedge the risks set out in the
Articles of Incorporation based on the risk management regulations.
(4) Method for assessing the effectiveness of hedging
The evaluation of the effectiveness of interest rate swaps is omitted because they meet therequirements for special treatment.

5. Scope of funds on the cash flow
statement

Funds (cash and cash equivalents) on the cash flow statement consist of cash on hand, cash
held in trust, bank deposits and bank deposits held in trust that can be withdrawn at any time,and short-term investments, with a maturity of 3 months or less from the date of acquisition,
which are readily convertible to cash and contain only an insignificant risk of value
fluctuation.

6. Other significant matters serving as (1) Accounting for trust beneficiary interests in real estate
the basis for preparing financial
For trust beneficiary interests in real estate, all trust assets and liabilities as well as allstatements
income generated and expenses incurred in trusts are recorded in the relevant accounts on
the balance sheet and the income statement.
The following material items of the trust accounts recorded in the relevant accounts arelisted separately on the balance sheet.
(i) Cash and deposits in trust(ii) Buildings in trust; structures in trust; machinery and equipment in trust; tools, furnitureand fixtures in trust; land in trust; construction in progress in trust; and land leasehold
rights in trust(iii) Tenant leasehold and security deposits in trust(2) Accounting for consumption taxes
The accounting for consumption taxes is tax exclusive. Non-deductible consumption taxes
on assets are included in the acquisition costs of individual assets.

– 35 –

(Notes to accounting standards not yet applied)- “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29 on March 30, 2018, Accounting Standards Board of Japan)- “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30 on March 30, 2018,
Accounting Standards Board of Japan)(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) in the United States
jointly developed comprehensive accounting standards for revenue recognition, and “Revenue from Contracts with Customers” wasissued in May 2014 (IFRS 15 in IASB and Topic 606 in FASB). Given that IFRS 15 and Topic 606 would be applied from a businessyear starting on or after January 1, 2018 and after December 15, 2017, respectively, the Accounting Standards Board of Japan (ASBJ)
developed comprehensive standards for revenue recognition and published the Accounting Standard for Revenue Recognition with the
Implementation Guidance.
The basic policy of ASBJ for the development of accounting standards for revenue recognition is believed to set the accounting
standards from the perspective of comparability between financial statements, which is one of the benefits of promoting consistency
with IFRS 15, with the incorporation of the basic principles of IFRS 15 as a starting point, and if there are items that should beconsidered in practices implemented in Japan, to add alternative handlings to the extent to which comparability is not impaired.
(2) Planned date of application
The Accounting Standard for Revenue Recognition, etc. will be applied at the beginning of the fiscal period ending October 2021.
(3) Impact of applying the accounting standard, etc.
The amount of the impact of applying the Accounting Standard for Revenue Recognition, etc. on the financial statements is currently
under review.
(Notes to Balance Sheet)*1. Amount of advanced depreciation of property, plant, and equipment
Amount of advanced depreciation of property, plant, and equipment acquired with insurance proceeds(Thousand yen)Previous fiscal period
Current fiscal period(As of October 31, 2018)(As of April 30, 2019)
130,854–*2. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporation(Thousand yen)
Current fiscal period
Previous fiscal period(As of October 31, 2018)(As of April 30, 2019)50,00050,000*3. Provision and reversal of temporary difference adjustment reserves
Previous fiscal period (As of October 31, 2018)

Initial amount

Balance at
beginning of
periodAmountAmountBalance at end
reserved during reversed duringof period
periodperiod(Thousand yen)
Reasons forprovision andreversal

Gain onAppropriation
Negative
10,432,940
9,901,966
162,422
9,739,544–
to dividends
goodwill (Note)(Note) The initial amount of gain on negative goodwill is the amount previously transferred from gain on negative goodwill to thetemporary difference adjustment reserves account. For the current fiscal period, 162,422,000 yen, which is greater than the
fixed reversal amount of 105,000,000 yen was reversed from the reserve.
Current fiscal period (As of April 30, 2019)

Initial amount

Balance at
beginning of
periodAmountAmountBalance at end
reserved during reversed duringof period
periodperiod(Thousand yen)
Reasons forprovision andreversal

Gain onAppropriation
Negative
10,432,940
9,739,544
105,000
9,634,544–
to dividends
goodwill (Note)(Note) The initial amount of gain on negative goodwill is the amount previously transferred from gain on negative goodwill to thetemporary difference adjustment reserves account. For the current fiscal period, 105,000,000 yen was reversed from thereserve.

– 36 –

(Notes to Income Statement)*1. Details of real estate rental income

A.

Real estate rental revenue
Rental Revenues
Rental revenue
Common area charges
Parking lot rental revenue
Facility use charges
Other rental revenue
Utilities revenue
Other(Thousand yen)Previous fiscal period(May 1, 2018 to
October 31, 2018)

Current fiscal period(November 1, 2018 toApril 30, 2019)

5,676,610
937,777
278,461
54,431

6,947,280

5,837,627
973,385
281,238
57,773685,072

580,820
51,415638,126
46,945

Total real estate rental revenue
B.

C.

Real estate rental expenses
Rental expenses
Service provider expenses
Utilities
Trust fees
Depreciation
Repair expenses
Taxes and public dues
Non-life insurance expenses
Other rental expenses

7,632,352

668,128
642,997
34,127857,196
117,337
619,297
11,88042,2717,150,026

632,235
7,782,261

668,737
611,250
34,176857,127
138,848
624,886
14,12941,529Total real estate rental expenses

2,993,236

2,990,685

Net rental income(A-B)

4,639,115

4,791,576– 37 –

*2. Details of real estate sales (Thousand yen)Previous fiscal period (May 1, 2018 to October 31, 2018)
N/A
Current fiscal period (November 1, 2018 to April 30, 2019)
Ichigo Toyamaeki Nishi Building
Real estate sale revenue
Real estate sale cost
4,734
Other real estate sale expenses
1,250

24,170Gain on real estate sales

18,185（Note）Real estate sale revenue includes 11,800 thousand yen of compensation to Ichigo Office from the buyer.
Ichigo Machida East Building, Ichigo Shin Yokohama Arena Dori Building
Real estate sale revenue
3,600,000
Real estate sale cost
2,947,990
Other real estate sale expenses
1,219
Gain on real estate sales
650,789（Note）Sale Price is the total sale price of the two assets, because the buyer did not provide consent to disclose each asset’s
sale price.
*3. Details of insurance income
Previous fiscal period (May 1, 2018 to October 31, 2018)
Insurance proceeds associated with the restoration work of air-conditioning equipment due to hail damage to the Ichigo Higashi
Ikebukuro Building in July 2017 is posted as insurance income.
Current fiscal period (November 1, 2018 to April 30, 2019)
N/A*4. Details of loss on reduction of non-current assets
Previous fiscal period (May 1, 2018 to October 31, 2018)
The loss on reduction of fixed assets is a value that is directly reduced from the acquisition cost of property, plant, and equipment
newly acquired using insurance proceeds associated with the restoration work of air-conditioning equipment due to hail damage tothe Ichigo Higashi Ikebukuro Building in July 2017, and its breakdown is as follows:
Current fiscal period (November 1, 2018 to April 30, 2019)
N/A
Previous fiscal period(May 1, 2018 to
October 31, 2018)
Buildings in trust(Thousand yen)
Current fiscal period(November 1, 2018 toApril 30, 2019)

130,854–(Statement of Changes in Net Assets)
Previous fiscal period(May 1, 2018 to
October 31, 2018)
Total number of authorized shares and total number ofshares issued and outstanding
Total number of authorized shares
Total number of shares issued and outstanding

14,000,000 shares
1,532,287 shares– 38 –

Current fiscal period(November 1, 2018 toApril 30, 2019)

14,000,000 shares
1,532,287 shares

(Notes to Statement of Dividends)
Previous fiscal period (May 1, 2018 to October 31, 2018)

Current fiscal period (November 1, 2018 to April 30, 2019)

By applying the transitional measures of Paragraph 3 of the
Supplementary Provisions of the “Regulation on Accountings ofInvestment Corporations” (Cabinet Office Order No. 27 of 2015),
an amount of 10,432,940,000 yen, which was the remainingbalance of gain on negative goodwill was transferred to thetemporary difference adjustment reserve account, and planned toreverse a minimum of 200,000,000 yen starting from the 23rd
fiscal period, as stated on the statement of dividends for the 22nd
fiscal period. But the policy has been changed to reversing aminimum of 105,000,000 yen starting from the 24th fiscal period.
For this fiscal period, 105,000,000 yen will be reversed.

By applying the transitional measures of Paragraph 3 of the
Supplementary Provisions of the “Regulation on Accountings ofInvestment Corporations” (Cabinet Office Order No. 27 of 2015),
an amount of 10,432,940,000 yen, which was the remainingbalance of gain on negative goodwill was transferred to thetemporary difference adjustment reserve account, and planned toreverse a minimum of 200,000,000 yen starting from the 23rd
fiscal period, as stated on the statement of dividends for the 22nd
fiscal period. But the policy has been changed to reversing aminimum of 105,000,000 yen starting from the 24th fiscal period.
For this fiscal period, 105,000,000 yen will be reversed.

(Notes to Cash Flow statement)*1. Relationship between cash and cash equivalents at the end of the fiscal period and items shown on the Balance Sheet(Thousand yen)
Current fiscal period
Previous fiscal period(May 1, 2018 to(November 1, 2018 to
October 31, 2018)
April 30, 2019)
Cash and deposits
Cash and deposits in trust
Miscellaneous deposits

9,323,086
13,229,574(66,014)

10,021,971
13,654,840(71,283)

Cash and cash equivalents

22,486,646

23,605,527(Notes to lease transactions)Operating lease transactions(Lessee)Previous fiscal period(As of October 31, 2018)(Thousand yen)
Current fiscal period(As of April 30, 2019)

Outstanding lease charges
One year or lessOver one year

69,171
1,100,267

71,344
1,104,527

Total

1,169,439

1,175,871(Lessor)Previous fiscal period(As of October 31, 2018)(Thousand yen)
Current fiscal period(As of April 30, 2019)

Outstanding lease charges
One year or lessOver one year

6,866,159
2,580,555

6,951,018
2,139,885

Total

9,446,715

9,090,904– 39 –

(Notes to Financial Instruments)
1. Matters concerning the status of financial instruments(1) Policy for handling financial instruments
Ichigo Office manages its assets by investing mainly in specified assets such as real estate with the aim of securing stable earnings in
the medium to long terms. It raises funds primarily through the issuance of investment units, the borrowing of bank loans and theissuance of investment corporation bonds. Derivative transactions are used for the purpose of mitigating the risk of future fluctuationsin interest rates, and not for trading or speculative purposes. Ichigo Office also invests surplus funds carefully in consideration of safety
and liquidity so as not to bear excess risks, taking the financial environment and cash management into full consideration.
(2) Description of financial instruments and associated risks, and risk management structure
Funds raised from loans and investment corporation bonds are used for the purchase of real estate and trust beneficiary interests in realestate and the repayment of loans, and they are exposed to the liquidity risk on the dates of repayment and redemption. Ichigo Office
not only works to reduce the liquidity risk through the diversification of financing and the decentralization of repayment dates andlenders by controlling LTV in the range that is deemed appropriate, but also manages the liquidity risk in terms of the way the asset
management company formulates a cash management plan. Loans with floating interest rates are exposed to the risk of fluctuations ininterest rates, but LTV is managed appropriately to limit the impact of rising market interest rates on the operations of Ichigo Office.
(3) Supplementary explanation of matters concerning the market value, etc. of financial instruments
In addition to values based on market prices, the market value of financial instruments includes values based on reasonable calculations
when there is no market price. Because certain preconditions, etc. are adopted in the calculation of the values concerned, there may becases where the values concerned will vary when different preconditions, etc. are adopted.
2. Matters concerning the market value, etc. of financial instruments
The carrying amount on the balance sheet on October 31, 2018, the market value, and the difference between the carrying amount andthe market value were as follows.
Financial instruments whose market value is deemed to be extremely difficult to determine are not included in the table below (see(Note2)), and those that are not material are omitted.
(Thousand yen)
Carrying valueMarket value
Difference(1) Cash and deposits
9,323,086
9,323,086–(2) Cash and deposits in trust
13,229,574
13,229,574–
Total assets

22,552,661

22,552,661(3) Long-term borrowings (due within one year)

14,270,145

14,287,507

17,362(4) Investment corporation bonds

2,200,000

2,188,441(11,558)(5) Long-term borrowings
Total liabilities–

89,130,111

89,715,450

585,339

105,600,256

106,191,399

591,143–––(6) Derivative transactions(Note 1) Matters concerning the calculation method of the market value of financial instruments(1) Cash and deposits (2) Cash and deposits in trust
The book value is used as the market value because the market values of these items are almost equal to their book values
since they are settled within a short period of time.
(3) Long-term borrowings (due within one year) (5) Long-term borrowings
The market value of long-term loans with fixed interest rates is calculated by discounting the present value by an interest
rate that is assumed if the total amount of principal and interest is borrowed in similar new loans. The market value of longterm loans with floating interest rates is based on the book value because the market value is approximately equal to the bookvalue due to the situation in which the interest rate is renewed periodically. For some long-term loans with floating interest
rates that are subject to the special treatment of interest rate swaps (see “Notes to Derivative Transactions” below), the present
value is calculated by discounting the combined total of principal and interest translated at the logically estimated rates for
similar loans.
(4) Investment corporation bonds
The market value of investment corporation bonds is calculated by discounting it based on the reference values announced
by the Japan Securities Dealers Association.
(6) Derivative transactions
Please refer to “Notes to Derivative Transactions” below.

– 40 –

The carrying amount on the balance sheet on April 30, 2019, the market value, and the difference between the carrying amount and themarket value were as follows:
Financial instruments whose market value is deemed to be extremely difficult to determine are not included in the table below (see(Note2)), and those that are not material are omitted.
(Thousand yen)
Carrying valueMarket value
Difference(1) Cash and deposits
10,021,971
10,021,971–(2) Cash and deposits in trust

13,654,840

13,654,840–

23,676,811

23,676,811–(3) Long-term borrowings (due within one year)

16,198,215

16,219,339

21,124(4) Investment corporation bonds

3,200,000

3,215,916

15,916

89,126,332

90,079,373

953,041

108,524,547

109,514,630

990,082

Total assets(5) Long-term borrowings
Total liabilities(6) Derivative transactions–––(Note 1) Matters concerning the calculation method of the market value of financial instruments(1) Cash and deposits (2) Cash and deposits in trust
The book value is used as the market value because the market values of these items are almost equal to their book values
since they are settled within a short period of time.
(3) Long-term borrowings (due within one year) (5) Long-term borrowings
The market value of long-term loans with fixed interest rates is calculated by discounting the present value by an interest
rate that is assumed if the total amount of principal and interest is borrowed in similar new loans. The market value of longterm loans with floating interest rates is based on the book value because the market value is approximately equal to the bookvalue due to the situation in which the interest rate is renewed periodically. For some long-term loans with floating interest
rates that are subject to the special treatment of interest rate swaps (see “Notes to Derivative Transactions” below), the present
value is calculated by discounting the combined total of principal and interest translated at the logically estimated rates for
similar loans.
(4) Investment corporation bonds
The market value of investment corporation bonds is calculated by discounting it based on the reference values announced
by the Japan Securities Dealers Association.
(6) Derivative transactions
Please refer to “Notes to Derivative Transactions” below.
(Note 2) Financial instruments whose market value is deemed to be extremely difficult to determine(Thousand yen)
Current fiscal period(As of April 30, 2019)

Previous fiscal period(As of October 31, 2018)

Classification(1) Tenant leasehold and security deposits
1,579,794
1,605,062(2) Tenant leasehold and security deposits in trust
8,414,582
8,595,090(1) (2) Tenant leasehold and securities deposits deposited by lessees in leasehold assets and tenant leasehold and securities
deposits in trust are not subject to the disclosure of market values because it is deemed to be extremely difficult to rationallyestimate future cash flows given that they do not have a market price and that it is difficult to determine the substantive
deposit period of lessees from when they move in until they vacate the asset.
(Note 3) Maturity profile of monetary receivables after the fiscal period-end date (October 31, 2018)
Due after 1
Due after 2
Due after 3
Due withinyear but
years but
years but
1 year
within 2 years within 3 years within 4 years(Thousand yen)
Due after 4
years butwithin 5 years

Due after
5 years

Cash and deposits

9,323,086

–

–

–

–

–

Cash and deposits in trust

13,229,574

–

–

–

–

–

22,552,661

–

–

–

–

–

Maturity profile of monetary receivables after the fiscal period-end date (April 30, 2019)
Due after 1
Due after 2
Due after 3
Due withinyear but
years but
years but
1 year
within 2 years within 3 years within 4 years
Cash and deposits
10,021,971–––

Due after 4
years butwithin 5 years

Total

Cash and deposits in trust
Total(Thousand yen)
Due after
5 years––

13,654,840

–

–

–

–

–

23,676,811

–

–

–

–

–

– 41 –

(Note 4) Maturity profile of investment corporation bonds and long-term loans after the fiscal period-end date (October 31, 2018)(Thousand yen)
Due after 1
Due after 2
Due after 3
Due after 4
Due within
Due after
year but
years but
years but
years but
1 year
5 years
within 2 years within 3 years within 4 years within 5 years
Long-term borrowings(due within one year)

14,270,145

–

–

–

–

–

–

–

–

–

–

2,200,000–
14,270,145

18,493,568
18,493,568

19,941,293
19,941,293

19,292,000
19,292,000

14,223,250
14,223,250

17,180,000
19,380,000

Investment corporation bonds
Long-term borrowings
Total

Maturity profile of investment corporation bonds and long-term loans after the fiscal period-end date (April 30, 2019)(Thousand yen)
Due after 1
Due after 2
Due after 3
Due after 4
Due within
Due after
year but
years but
years but
years but
1 year
5 years
within 2 years within 3 years within 4 years within 5 years
Long-term borrowings
16,198,215
–
–
–
–
–
(due within one year)
Investment corporation bonds
Long-term borrowings
Total

–

–

–

–

–

3,200,000–
16,198,215

19,897,332
19,897,332

19,317,000
19,317,000

19,266,000
19,266,000

7,500,000
7,500,000

23,146,000
26,346,000(Securities)
Previous fiscal period (As of October 31, 2018)
N/A
Current fiscal period (As of April 30, 2019)
N/A– 42 –

(Notes to Derivative Transactions)
1. Non-hedge accounting derivatives
Not applicable in the previous fiscal period (ended October 31, 2018) and the current fiscal period (ended April 30, 2019).
2. Hedge accounting derivatives
Previous fiscal period (As of October 31, 2018)
Method of hedge
accounting

Type of derivativetransaction

Contract amount
Main hedged item

Over one year

(Thousand yen)Calculation
Marketmethod ofvaluemarket value

Interest rate swap
transaction
Long-term
94,051,106
83,675,111 (Note)–(pay fixed, receive
borrowings
floating)(Note) Interest rate swaps accounted under the special treatment method are processed together with the hedged items (in this case, along-term borrowing). Therefore, their market values are included in the market values of (3) Long-term borrowings (due within
one year) (5) long-term borrowings payable in (Note 1) of “Notes to financial instruments, 2. Matters concerning the market
value, etc. of financial instruments” above.
Special treatment ofinterest rate swaps

Current fiscal period (As of April 30, 2019)
Method of hedge
accounting

Type of derivativetransaction

Contract amount
Main hedged item

Over a year

(Thousand yen)Calculation
Marketmethod ofvaluemarket value

Interest rate swap
transaction
Long-term
98,976,297
84,626,332 (Note)–(pay fixed, receive
borrowings
floating)(Note) Interest rate swaps accounted under the special treatment method are processed together with the hedged items (in this case,long-term borrowings). Therefore, their market values are included in the market values of (3) Long-term borrowings (due within
one year) (5) long-term borrowings payable in (Note 1) of “Notes to financial instruments, 2. Matters concerning the market
value, etc. of financial instruments” above.
Special treatment ofinterest rate swaps(Notes to retirement benefits)
Previous fiscal period (As of October 31, 2018)
N/A
Current fiscal period (As of April 30, 2019)
N/A– 43 –

(Notes to Tax Accounting)
1. Breakdown of deferred tax assets and liabilities by major cause
Previous fiscal period(As of October 31, 2018)
Deferred tax assets
Valuation difference of assets transferred at merger
5,838,345
Asset retirement obligations
1,031
Tax loss carried forward
336,476
Other
163
Subtotal
Valuation allowance(Thousand yen)
Current fiscal period(As of April 30, 2019)
5,728,673
1,078
335,94247

6,176,016(6,176,016)

6,065,742(6,065,742)

–

–

–

–

Total deferred tax assets
Deferred tax assets (net)

2. Breakdown of tax rate differences between the statutory tax rate and the effective tax rate by major cause
Previous fiscal period
Current fiscal period(As of October 31, 2018)(As of April 30, 2019)
Statutory tax rate
(Adjustment)
Deductible dividend distribution
Change in valuation allowance
Other

31.51%

31.51%(31.11%)(0.40%)
0.02%(28.86%)(2.65%)
0.02%

0.02%

0.02%

Effective tax rate
(Notes to share of profit and loss of entities accounted for using the equity method)
Previous fiscal period (May 1, 2018 to October 31, 2018)
N/A
Current fiscal period (November 1, 2018 to April 30, 2019)
N/A(Notes to Related Party Transactions)
1. The parent company and principal shareholders of Ichigo Office
Not applicable in the previous fiscal period (from May 1, 2018 to October 31, 2018) and the current fiscal period (from November 1,
2018 to April 30, 2019)
2. Affiliated companies
Not applicable in the previous fiscal period (from May 1, 2018 to October 31, 2018) and the current fiscal period (from November 1,
2018 to April 30, 2019)
3. Fellow subsidiaries
Not applicable in the previous fiscal period (from May 1, 2018 to October 31, 2018) and the current fiscal period (from November 1,
2018 to April 30, 2019)
4. Directors and principal individual shareholders
Not applicable in the previous fiscal period (from May 1, 2018 to October 31, 2018) and the current fiscal period (from November 1,
2018 to April 30, 2019)– 44 –

(Asset Retirement Obligations)
Previous fiscal period (May 1, 2018 to October 31, 2018)
The statement is omitted because the total amount of asset retirement obligations is not material.
Current fiscal period (November 1, 2018 to April 30, 2019)
The statement is omitted because the total amount of asset retirement obligations is not material.
(Notes to Rental Assets)
Ichigo Office owns rental assets mainly in the six wards of central Tokyo, other Tokyo metropolitan areas, the four largest cities andother major cities for the purpose of earning stable rental revenues. The carrying amounts, increase (decrease) during the period, andmarket values of these rental assets are as follows:(Thousand yen)
Current fiscal period
Previous fiscal period
Use(May 1, 2018 to(November 1, 2018 to
October 31, 2018)
April 30, 2019)
Carrying amount
Balance at the beginning of period
Office176,647,062

Increase (decrease) during period

183,798,045

7,150,982

5,843,224

Balance at period-end

183,798,045

189,641,269

Market value at period-end

212,888,000

222,015,000

Carrying amount
Other

Balance at the beginning of period

13,859,917

13,819,112

Increase (decrease) during period(40,805)(2,988,339)

Balance at period-end

13,819,112

10,830,773

Market value at period-end

16,310,000

12,790,000

Balance at the beginning of period

190,506,980

197,617,158

Increase (decrease) during period

7,110,177

2,854,885

197,617,158

200,472,043

Carrying amount
Total

Balance at period-end

Market value at period-end
229,198,000
234,805,000(Note 1) The carrying amounts represent the amounts after deducting the accumulated depreciation from the acquisition costs.
(Note 2) The major increase in rental assets during the previous fiscal period was due to the acquisition of trust beneficiary interests inreal estate of three assets (7,514,322 thousand yen), and the major decrease was due to depreciation.
The major increase during the current fiscal period was due to the acquisition of trust beneficiary interests in real estate of two
assets (6,222,103 thousand yen), and the major decrease was due to sales of trust beneficiary interest in real estate of two assets(2,947,990 thousand yen), a partial sale of a trust beneficiary interest in real estate of one asset (4,734 thousand yen) anddepreciation.
(Note 3) The market value at the end of the period was based on the appraisal value or investigation value estimated by external realestate appraisers.
The details of real estate rental income is stated in “Income Statement.”– 45 –

(Segment Information)
The segment information is omitted because Ichigo Office has only one segment of the real estate rental business.
(Related Information)
Previous fiscal period (May 1, 2018 to October 31, 2018)
1. Information by product and service
The statement is omitted because operating revenue from external customers in a single product and service category comprises morethan 90% of operating revenue on the Income Statement.
2. Information by region(1) Operating revenue
The statement is omitted because operating revenue from external customers in Japan comprises more than 90% of operating revenue
on the income statement.
(2) Property, plant and equipment
The statement is omitted because the amount of property, plant and equipment located in Japan comprises more than 90% of theamount of property, plant and equipment on the balance sheet.
3. Information by main customer
The statement is omitted because all operating revenue from a single external customer comprises less than 10% of operating revenue
on the income statement.
Current fiscal period (November 1, 2018 to April 30, 2019)
1. Information by product and service
The statement is omitted because operating revenue from external customers in a single product and service category comprises morethan 90% of operating revenue on the income statement.
2. Information by region(1) Operating revenue
The statement is omitted because operating revenue from external customers in Japan comprises more than 90% of operating revenue
on the income statement.
(2) Property, plant and equipment
The statement is omitted because the amount of property, plant and equipment located in Japan comprises more than 90% of theamount of property, plant and equipment on the balance sheet.
3. Information by main customer
The statement is omitted because all operating revenue from a single external customer comprises less than 10% of operating revenue
on the income statement.
(Notes to Per-Share Information)
Current fiscal period(November 1, 2018 toApril 30, 2019)

Previous fiscal period(May 1, 2018 to
October 31, 2018)

Net assets per share (yen)67,361
67,783
Net income per share (yen)
1,945
2,435
(Note 1) Net income per share is calculated by dividing net income by the daily weighted average number of shares. Diluted net
income per share is not stated because there are no diluted shares.
(Note 2) The basis for calculating net income per share is as follows.
Current fiscal period(November 1, 2018 toApril 30, 2019)

Previous fiscal period(May 1, 2018 to
October 31, 2018)
Net Income(Thousand yen)

2,980,875

3,732,450

Amount not attributable to common shareholders(Thousand yen)–－

Net income attributable to common shareholders(Thousand yen)

2,980,875

3,732,450(Shares)

1,532,287

1,532,287

Average number of shares during period– 46 –

(Notes to Significant Subsequent Events)
1. Acquisition of assets
Ichigo Office acquired the following assets based on the basic policy for asset management set forth in the Articles of Incorporation.
Ichigo Hakata East Building (Note 1)
Acquisition Price (Note 2)
Location
Legal form of asset
Type of ownership
Contract dateClosing dateSeller2,250,000,000 yen
1-13-6 Hakataeki Higashi, Hakata-ku, Fukuoka
Trust beneficiary interest in real estate (juekiken)
Land: Freehold
Building: Freehold
May 29, 2019
May 31, 2019
Kichijoji Holdings GK(Note 1) After the acquisition, Ichigo Office will change the building name from “Takeyama Hakata Building” to “Ichigo Hakata East
Building”.
(Note 2) The acquisition price is the transaction price of the trust beneficiary interest (juekiken) and does not include expenses foracquisition, the amount equivalent to settled fixed asset taxes and city planning taxes, and the amount equivalent to
consumption taxes.
2. Sales of assets
Ichigo Office sold the following assets based on the basic policy for asset management set forth in the Articles of Incorporation.
Ichigo Fiesta Shibuya Building
Sales Price (Note 1)
Book value (Note 2)
Location
Legal form of asset (Note 3)
Contract dateClosing date
Buyer

2,400,000,000 yen
1,960,027,000 yen
3-10 Udagawacho, Shibuya-ku, Tokyo
Trust beneficiary interest in real estate (juekiken)
May 29, 2019
May 30, 2019
Hakata GK(Note 1) The sales price is the transaction price of the trust beneficiary interest (juekiken) and does not include expenses for acquisition,
the amount equivalent to settled fixed asset taxes and city planning taxes, and the amount equivalent to consumption taxes.
In the 28th fiscal period (from May 1, 2019 to October 31, 2019), a gain on sale of real estate of approximately 440,477,000
yen is expected to be recorded.
(Note 2) The book value is the price as of April 30, 2019.
(Note 3) The legal form of asset has been changed from real estate to trust beneficiary interest in real estate (juekiken) on the closing
date, and the trust beneficiary interest has been transferred to the buyer.

– 47 –

(7) Supplementary Schedules(i) Securities Held(a) Equities
N/A(b) Securities other than equities
N/A(ii) Contract value and market value of derivative transactions and forward exchange contracts(Thousand yen)Contract amount (Note 1)

Classification

Type

Transactions other than market
transactions

Interest rate swap
(pay fixed, receive floating)

Exceeding 1 year
98,976,297

Market value (Note 2)

84,626,332

–

–
Total
98,976,297
84,626,332(Note 1) The contract amount of interest rate swap is based on the notional principal.
(Note 2) Since the above transaction meets the specific matching criteria of the Accounting Standard for Financial Instruments, thestatement of market value is omitted.

(iii) Real estate held(Thousand yen)
Asset type7,235,000

25,271–7,260,271

1,592,792

109,800

5,667,479

Structures

26,834––

26,83423,865

1,001

2,968

Machinery and equipment

283,903

2,854–

286,757

143,999

11,434

142,757

52,176

4,245–

56,42242,8872,549

13,535Land

17,425,755––

17,425,755––

17,425,755

Buildings in trust

42,869,885

933,451

967,759

42,835,577

7,099,173

691,074

35,736,403(Note)

Structures in trust

62,165345

306

62,20429,425

2,248

32,778(Note)

518,515

69,236

13,365574,386

261,965

24,540312,420(Note)

171,689

22,878

2,058

192,509

110,073

14,47882,435(Note)

133,082,735

5,606,453

2,128,261

136,560,928––

136,560,928(Note)

754

980

754

980

–

–

980

201,729,417

6,665,717

3,112,506

205,282,627

9,304,183

857,127

195,978,444

4,494,579––

4,494,579––

4,494,579

4,494,579––

4,494,579––

4,494,579

206,223,996

6,665,717

3,112,506

209,777,207

9,304,183

857,127

200,473,023

fixtures

Machinery and equipmentin trust
Tools, furniture, andfixtures in trust
Land in trust
Construction in progress intrust
Subtotal
Land leasehold rights in
Intangible

Remarks

Buildings

Tools, furniture, andProperty,plant, andequipment

Balance atBalance at end
Increase during
Decrease
beginning ofof current
periodduring period
current period
periodAccumulated depreciation or
accumulated amortization
Balance at end
Depreciation or of current
periodamortization
during period

trust

assetsSubtotal
Total(Note) The major increase during the current fiscal period was due to the acquisition of trust beneficiary interests in real estate of two
assets (6,222,103,000 yen), and the major decrease was due to sales of trust beneficiary interest in real estate of two assets(2,947,990,000 yen), a partial sale of a trust beneficiary interest in real estate of one asset (4,734,000 yen) and depreciation.
(iv) Other assets held
N/A

– 48 –

(v)Investment corporation bonds outstanding(Thousand yen)
Date ofissuance

Balance at
Decrease
Balance atperiod-start during period period-end

Interest rate Redemption
(%)
date

First unsecured
investment corporation
bonds

September
22, 2017

1,200,000–

1,200,000

0.900

September
22, 2027

Second unsecured
investment corporation
bonds

April 26,2018

1,000,000–

1,000,000

0.900

April 26,
2028

Third unsecured
investment corporation
bonds

November29, 2018––

1,000,000

0.750

November28, 2025

Use

Security(Note 1)

Unsecured/
unguaranteed

Total–
2,200,000–
3,200,000––––(Note 1) The proceeds are used for repaying existing loans.
(Note 2) A ranking pari passu among Ichigo Office investment corporation bonds is attached.
(Note 3) The maturity profile of investment corporate bonds for each year within five years after the balance sheet date is as follows.
(Thousand yen)
Due after 1 year but Due after 2 years Due after 3 years Due after 4 years
Due within 1 year
within 2 years
but within 3 years but within 4 years but within 5 years
Investment corporation bonds

–

–

–

–

–

(vi) Loans outstanding
Lender

1,547,150－

1,547,150－

Shinsei Bank

483,500－

483,500－

1.468

Aozora Bank

1,063,680－

1,063,680－(Note 2)

Mizuho Bank

773,590－773,590－

Resona Bank

1,000,000－

1,000,000－

Bank of Fukuoka

1,000,000－

1,000,000－

SMBC

1,471,952

－

1,875

1,470,077

Mizuho Bank

1,275,717

－

1,625

1,274,092

Resona Bank

883,187－1,125

882,062

Shinsei Bank

883,187－1,125

882,062

Aozora Bank

883,187－1,125

882,062

The Kagawa Bank

490,657－625

490,032

ORIX Bank

490,657－625

490,032

SMBC

1,227,400

－

1,562

1,225,837

Mizuho Bank

1,227,420

－

1,562

1,225,837

Aozora Bank

785,550－

1,000

784,550

1.267

Shinsei Bank

785,550－

1,000

784,550(Note 2)

Resona Bank

589,170－750

588,420

MUFG Bank

785,550－

1,000

784,550SMBC

LongTerm
Loans

Decrease
Average
Balance at Increase during
Balance atduring periodinterest rate
period-start
periodperiod-end(%)(Thousand(Thousand yen) (Thousand yen)(Thousand yen)
(Note 1)yen)

– 49 –

0.969

1.070
(Note 2)

Repayment
date

Repayment
terms

November 30,
2018(Note 3)

April 26,2019

(Note 4)

July 31,2019(Note 5) (Note 15)

December 10,
2020(Note 6)

Use

CollateralizedNo(No guarantee)

Lender

LongTerm
Loans

Decrease
Average
Balance at Increase during
Balance atduring periodinterest rate
period-start
periodperiod-end(%)(Thousand(Thousand yen) (Thousand yen)(Thousand yen)
(Note 1)
yen)

SMBC

1,227,400

－

1,562

1,225,837

Mizuho Bank

1,227,420

－

1,562

1,225,857

Aozora Bank

785,550－

1,000

784,550

1.033

Shinsei Bank

785,550－

1,000

784,550(Note 2)

Resona Bank

589,170－750

588,420

MUFG Bank

785,550－

1,000

784,550

Aozora Bank

2,127,000－－

2,127,000

Shinsei Bank

1,998,000－－

1,998,000

ORIX Bank

400,000－－

400,000

SMBC

674,287－816

673,471

Mizuho Bank

611,486－740

610,746

1.148

Shinsei Bank

642,887－778

642,109(Note 2)

MUFG Bank

550,338－666

549,672

SMBC

1,374,312

－

1,384

1,372,928

Mizuho Bank

1,251,180

－

1,260

1,249,920

1.185

Shinsei Bank

1,312,746

－

1,322

1,311,424(Note 2)

MUFG Bank

1,126,062

－

1,134

1,124,928

SMBC

1,960,182

－

1,974

1,958,208

Mizuho Bank

1,960,182

－

1,974

1,958,208

Aozora Bank

591,828－596

591,232

Shinsei Bank

776,526－

782

775,744

1.347

MUFG Bank

1,632,492

－

1,644

1,630,848(Note 2)

Resona Bank

1,366,368

－

1,376

1,364,992

Bank of Fukuoka

448,836－452

448,384

ORIX Bank

1.142(Note 2)448,836－452

448,384

SMBC

1,960,182

－

1,974

1,958,208

Mizuho Bank

1,960,182

－

1,974

1,958,208

Aozora Bank

591,828－596

591,232

Shinsei Bank

774,540－

780

773,760

1.275

MUFG Bank

1,632,492

－

1,644

1,630,848(Note 2)

Resona Bank

1,368,354

－

1,378

1,366,976

Bank of Fukuoka

448,836－452

448,384

ORIX Bank

448,836－452

448,384– 50 –

Repayment
date

Repayment
terms

December 16,
2019(Note 7)

August 31,
2020

Lump-sum
repayment

November 29,
2019(Note 8)May 29,2020(Note 9)November 8,
2021(Note 10)

May 7,
2021(Note 10)

Use

Collateralized(Note 15)No
(No guarantee)

Lender

1,590,792

－

1,601

1,589,191

Mizuho Trust

287,220－289

286,931

Resona Bank

574,441－578

573,863

Aozora Bank

574,441－578

573,863Mizuho Bank

1,071,191

－

1,078

1,070,113

ORIX Bank

287,220－289

286,931

MUFG Bank

496,750－500

496,250

The Kagawa Bank

955,000－－

955,000

0.662

SMBC

894,150－900

893,250

0.612

SMBC

1,442,750

－

1,450

1,441,300

Mizuho Bank

1,044,750

－

1,050

1,043,700

0.808

MUFG Bank

895,500－

900

894,600(Note 2)

Shinsei Bank

497,500－

500

497,000

SMBC

1,442,750

－

1,450

1,441,300

Mizuho Bank

1,044,750

－

1,050

1,043,700

0.858

MUFG Bank

895,500－

900

894,600(Note 2)

Shinsei Bank

497,500－

500

497,000

1,791,000

－

1,800

1,789,200

Mizuho Bank

895,500－

900

894,600

MUFG Bank

696,500－

700

695,800

Shinsei Bank

597,000－

600

596,400

0.705

Aozora Bank

497,500－

500

497,000(Note 2)

Bank of Fukuoka

497,500－

500

497,000

Nishi-Nippon City Bank

497,500－

500

497,000

SMBC

SMBC

LongTerm
Loans

Decrease
Average
Balance at Increase during
Balance atduring periodinterest rate
period-start
periodperiod-end(%)(Thousand(Thousand yen) (Thousand yen)(Thousand yen)
(Note 1)
yen)

0.985
(Note 2)

348,250－350

347,900

1,791,000

－

1,800

1,789,200

Mizuho Bank

895,500－

900

894,600

MUFG Bank

696,500－

700

695,800

Shinsei Bank

597,000－

600

596,400

0.750

Aozora Bank

497,500－

500

497,000(Note 2)

Bank of Fukuoka

497,500－

500

497,000

Nishi-Nippon City Bank

497,500－

500

497,000

Resona Bank

348,250－350

347,900

SMBC

1,000,000－

1,000,000－

SMBC

1,000,000－－

1,000,000

500,000－－

500,000

0.675

500,000－－

500,000

0.708

SMBC

1,100,000－－

1,100,000

Mizuho Bank

1,000,000－－

1,000,000

Shinsei Bank

900,000－－

900,000

Resona Bank

400,000－－

400,000

Resona BankSMBC

Development Bankof Japan
Development Bankof Japan– 51 –

0.452
0.845(Note 2)0.852
(Note 2)0.852
(Note 2)0.852
(Note 2)0.852
(Note 2)

Repayment
date

Repayment
terms

March 31,2021

(Note 11)

Use

Collateralized

March 31, Lump-sum
2020
repayment
September 30,(Note 12)2019

May 31,
2022(Note 13)

November 30,
2022(Note 13)

May 31,
2022(Note 14) (Note 15)

November 30,
2022(Note 14)

April 26,2019

(Note 4)

October 31,
2023

Lump-sum
repayment

September 30,
2021
January 31,
2022
November 11,
2024
November 11,
2024
November 11,
2024
November 11,
2024

Lump-sum
repayment
Lump-sum
repayment
Lump-sum
repayment
Lump-sum
repayment
Lump-sum
repayment
Lump-sum
repaymentNo(No guarantee)

LenderDevelopment Bankof Japan

LongTerm
Loans

Decrease
Average
Balance at Increase during
Balance atduring periodinterest rate Repayment
period-start
periodperiod-end(%)(Thousanddate(Thousand yen) (Thousand yen)(Thousand yen)
(Note 1)yen)
May 10,2,000,000
2,000,000 0.871
－
－
2023

SMBC

215,000－－

215,000

Mizuho Bank

340,000－－

340,000

MUFG Bank

283,000－－

283,000

Resona Bank

237,000－－

237,000

Shinsei Bank

135,000－－

135,000

Bank of Fukuoka

195,000－－

195,000

ORIX Bank

195,000－－

195,000

SMBC

633,000－－

633,000

Mizuho Bank

508,000－－

508,000

MUFG Bank

425,000－－

425,000

0.948

Resona Bank

356,000－－

356,000(Note 2)

Shinsei Bank

201,000－－

201,000

Aozora Bank

257,000－－

257,000

SMBC

352,000－－

352,000

Mizuho Trust

1,352,000－－

1,352,000

Aozora Bank

901,000－－

901,000

Shinsei Bank

901,000－－

901,000

Resona Bank

448,000－－

448,000

SMBC

400,000－－

400,000

Mizuho Bank

350,000－－

350,000

Shinsei Bank

300,000－－

300,000

MUFG Bank

300,000－－

300,000

Bank of Fukuoka

225,000－－

225,000

The Kagawa Bank

200,000－－

200,000

Nishi-Nippon City Bank

225,000－－

225,000

SMBC

835,000－－

835,000

Mizuho Bank

491,000－－

491,000

Shinsei Bank

393,000－－

393,000

MUFG Bank

393,000－－

393,000

Aozora Bank

393,000－－

393,000

Resona Bank

294,000－－

294,000

The Kagawa Bank

147,000－－

147,000

SMBC

500,000－－

500,000

0.632

Mizuho Bank

400,000－－

400,000

0.632

1,000,000－－

1,000,000

Mizuho Bank

400,000－－

400,000

0.712

Shinsei Bank

200,000－－

200,000

0.712

SMBC

－

954,000－

954,000

Mizuho Bank－

773,000－

773,000

0.975

Shinsei Bank－

483,000－

483,000(Note 2)

Aozora Bank－

656,000－

656,000

SMBC– 52 –

0.761(Note 2)0.990
(Note 2)0.795
(Note 2)0.860
(Note 2)

0.962
(Note 2)

Repayment
terms

Use

Collateralized

Lump-sum
repayment

October 31,
2023

Lump-sum
repayment

October 31,
2025

Lump-sum
repayment

April 30,2026

Lump-sum
repayment

No(Note 15) (No guarantee)
April 30,2024

Lump-sum
repayment

November 11, Lump-sum
2024
repayment

February 29,
2024
February 29,
2024
April 30,
2026
April 30,
2026
April 30,2026

Lump-sum
repayment
Lump-sum
repayment
Lump-sum
repayment
Lump-sum
repayment
Lump-sum
repayment

September 30, Lump-sum
2026
repayment

Lender

LongTerm
Loans

Decrease
Average
Balance at Increase during
Balance atduring periodinterest rate Repayment
period-start
periodperiod-end(%)(Thousanddate(Thousand yen) (Thousand yen)(Thousand yen)
(Note 1)
yen)

SMBC

－

830,000－

830,000

0.907

Aozora Bank－

570,000－

570,000(Note 2)

SMBC－

250,000－

250,000

Mizuho Bank－

400,000－

400,000

Development Bankof Japan－

400,000－

400,000

MUFG Bank－

300,000－

300,000

Shinsei Bank－

250,000－

250,000

SMBC－

1,000,000－

1,000,000

Resona Bank－

1,000,000－

1,000,000

Bank of Fukuoka－

1,000,000－

1,000,000

103,400,256

8,866,000

6,941,709

105,324,547

Total

0.850
(Note 2)0.867
(Note 2)0.867
(Note 2)0.867
(Note 2)

Repayment
terms

Use

Collateralized(Note 15)No
(No guarantee)

September 30, Lump-sum
2026
repayment

April 30,2026

Lump-sum
repayment

September 25, Lump-sum
2026
repayment
September 25, Lump-sum
2026
repayment
September 25, Lump-sum
2026
repayment(Note 1) Average Interest Rate indicates a weighted average of interest rates during the period based on the number of days, and it isrounded down to the stated unit.
(Note 2) To avoid interest rate risk, an interest rate swap agreement has been signed separately to fix the interest rates, and the weighted
average interest rate during the period after the effect of the interest rate swap is stated.
(Note 3) The remaining balance was repaid on November 30, 2018.
(Note 4) The remaining balance was repaid on April 26, 2019.
(Note 5) 4 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due
date.
The entire amount of the balance at period-end is included in long-term borrowings due within one year.
(Note 6) 3 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due
date.
The balance at period-end includes long-term borrowings due within one year of 13 million yen.
(Note 7) 3 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due
date.
The entire amount of the balance at period-end is included in long-term borrowings due within one year.
(Note 8) 1 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due
date.
The entire amount of the balance at period-end is included in long-term borrowings due within one year.
(Note 9) 2 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due
date.
The balance at period-end includes long-term borrowings due within one year of 10 million yen.
(Note 10) 4 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due
date.
The balance at period-end includes long-term borrowings due within one year of 18 million yen.
(Note 11) 2 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due
date.
The balance at period-end includes long-term borrowings due within one year of 9 million yen.
(Note 12) 0.4 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the lastdue date.
The entire amount of the balance at period-end is long-term borrowings due within one year.
(Note 13) 1 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due
date.
The balance at period-end includes long-term borrowings due within one year of 7 million yen.
(Note 14) 2 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due
date.
The balance at period-end includes long-term borrowings due within one year of 11 million yen.
(Note 15) The proceeds are used for acquisition of assets and/or beneficiary rights of real estate in trust and repayment of loans.
(Note 16) The total amounts of long-term loans to be repaid for each year within five years after the balance sheet date are as follows.
(Thousand yen)
Due after 1 year Due after 2 years Due after 3 years Due after 4 years
Due within 1 year
but within 2 years but within 3 years but within 4 years but within 5 years
Long-term borrowings
due within one year

16,198,215

–

–

–

–

Long-term borrowings–

19,897,332

19,317,000

19,266,000

7,500,000

16,198,215

19,897,332

19,317,000

19,266,000

7,500,000

Total– 53 –