Building a richer future together[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

May 20, 2016
REIT Issuer
Ichigo Office REIT Investment Corporation (8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-office.co.jp/english
Asset Management Company
Ichigo Real Estate Investment Advisors Co., Ltd.
Representative: Wataru Orii, President & Representative Statutory Executive Officer
Inquiries: Hiroto Tajitsu, Head of Administration & Statutory Executive Officer
Tel: 03-3502-4891

New Loans and Interest Rate Swaps
Ichigo Office REIT decided today to borrow funds via new loans and is entering into interest
rate swap agreements to fix and lock-in the low interest rates on the loans.
1. Reason for New Loans
In the current Stage V Lay Foundation for Sustainable Dividend Growth (November 2015 –October 2016) of its multi-year growth strategy, Ichigo Office REIT is executing on its action
plan to “Increase portfolio size and scale and be smart in portfolio restructuring” to drive
earnings growth for Ichigo Office REIT shareholders.
Consistent with this growth strategy, Ichigo Office REIT is acquiring eight assets as announced
in the May 9, 2016 release “Acquisition of Eight Office Assets” using funds from the recent
public offering and today’s borrowings and also cash-on-hand.
2. Loan Details
Syndicate Loan VI-A
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms

Sumitomo Mitsui Banking Corporation; MizuhoBank, Ltd.; The Bank of Tokyo-Mitsubishi UFJ,Ltd.; Shinsei Bank, Limited; Aozora Bank, Ltd.;The Bank of Fukuoka; Nishi-Nippon City Bank,Ltd.; Resona Bank, Limited
5,850 million yen
Asset acquisition and related costs
May 24, 2016
May 31, 20221
2,925,000 yen of the principal will be repaid on
each Partial Principal Repayment Date; theremainder will be repaid in full on the Principal
Repayment Date.

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Partial Repayment Date

Interest Rate
Interest Payment Date

Collateralized

Final business day of January, April, July, andOctober following the Loan Date (the firstpayment date will be July 29, 2016 and the lastpayment date will be the same as the Principal
Repayment Date)
1M JPY TIBOR + 0.60 % (p.a.)2
Final business day of each month following theLoan Date (the first payment date will be June30, 2016 and the last payment date will be thesame as the Principal Repayment Date)No

Syndicate Loan VI-B
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms

Partial Repayment Date

Interest Rate
Interest Payment Date

Collateralized

Sumitomo Mitsui Banking Corporation; MizuhoBank, Ltd.; The Bank of Tokyo-Mitsubishi UFJ,Ltd.; Shinsei Bank, Limited; Aozora Bank, Ltd.;The Bank of Fukuoka; Nishi-Nippon City Bank,Ltd.; Resona Bank, Limited
5,850 million yen
Asset acquisition and related costs
May 24, 2016
November 30, 20221
2,925,000 yen of the principal will be repaid on
each Partial Principal Repayment Date; theremainder will be repaid in full on the Principal
Repayment Date.
Final business day of January, April, July, andOctober following the Loan Date (the firstpayment date will be July 29, 2016 and the last
payment date will be the same as the Principal
Repayment Date)1M JPY TIBOR + 0.63 % (p.a.)2
Final business day of each month following theLoan Date (the first payment date will be June30, 2016 and the last payment date will be thesame as the Principal Repayment Date)
No

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In the event the date is not a business day, repayment shall be made on the next business day.
If the next business day is the following month, then the repayment shall be made on theprevious business day.
2
From May 24, 2016 until June 29, 2016, the interest rate of Syndicate Loan VI-A is 0.63790%
and that of Syndicate Loan VI-B is 0.66790%. As described in Section 3 below, the interest
rate is fixed as a result of the interest rate swaps.
3. Interest Rate Swap(a) Reason
To fix the interest payment amount of Syndicate Loan VI-A and Syndicate Loan VI-B
and hedge against a rise in interest rates.

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(b) Swap Details
Syndicate Loan VI-A
Counterparty
Notional Principal

Mizuho Bank, Ltd.
5,850 million yen (Amortized by 2,925,000 yen
on each Partial Principal Repayment Date)
Contract Date
May 20, 2016
Commencement Date
May 24, 2016
Termination Date
May 31, 20221
Interest RateFixed Interest Rate: 0.70500%
Floating Interest Rate: 1M JPY TIBOR + 0.60%
Final business day of each month following theInterest Payment Date
Loan Date (the first payment date will be June30, 2016 and the last payment date will be thesame as the Principal Repayment Date)(Note) The effect of the interest rate swap is to fix the interest rate of the above loan at0.70500%.
1In the event the date is not a business day, repayment shall be made on the next business day.
If the next business day is the following month, then the repayment shall be made on theprevious business day.
Syndicate Loan VI-B
Counterparty
Notional Principal

Sumitomo Mitsui Banking Corporation
5,850 million yen (Amortized by 2,925,000 yen
on each Partial Principal Repayment Date)
Contract Date
May 20, 2016
Commencement Date
May 24, 2016
Termination Date
November 30, 20222
Interest Rate
Fixed Interest Rate: 0.75000%
Floating Interest Rate: 1M JPY TIBOR + 0.63%
Interest Payment Date
Final business day of each month following theLoan Date (the first payment date will be June30, 2016 and the last payment date will be thesame as the Principal Repayment Date)(Note) The effect of the interest rate swap is to fix the interest rate of the above loan at
0.75000%.
2In the event the date is not a business day, repayment shall be made on the next business day.
If the next business day is the following month, then the repayment shall be made on theimmediate previous business day.

4. Earnings Outlook
The impact of the new loans on Ichigo Office REIT’s earnings and dividend forecasts for theOctober 2016 and April 2017 fiscal periods is minimal. Therefore, there is no revision to Ichigo
Office REIT’s earnings and dividend forecast announced on May 9, 2016.
5. OtherRisks related to this loan have no material impact on the “Investment Risks” described in thelatest Securities Report submitted May 9, 2016.

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Reference: Ichigo Office REIT Loan Details
Outstanding Loan Balance (as of May 24, 2016)(million yen)
Before Today’s
Transactions

After Today’s
Transactions

Short-term bank borrowings

00

0Long-term bank borrowings(due within one year)1271

294

23

Long-term bank borrowings

86,087

97,764

11,676

Total bank borrowings

86,35898,058

11,700000

86,35898,058

11,70000086,358

98,058

11,700Bond issuanceTotal bank borrowings and bondissuance
Other interest-bearing
liabilities
Total interest-bearing
liabilities
1Change

Long-term bank borrowings due within one year increase slightly after today’stransactions due to a small amount of loan amortization on today’s loans.

Lender Distribution (as of May 24, 2016)

Kagawa Bank
2%
ORIX Bank
3%
Bank of Fukuoka
3%

Nishi-Nippon CityBank
1%

Resona Bank
10%

SMBC
26%

Aozora Bank
10%

Mizuho Bank
17%

Shinsei Bank
14%
BTMU
12%

Mizuho Trust
2%

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Loan Repayment Date Distribution (as of May 24, 2016)
Before Today’s Transactions(million yen)
20,00015,00010,000

9,563

8,938

9,574

10,233
9,139

9,129

7,263
6,527
5,867
5,000

3,853

3,849

Oct 2022

Apr 2023

9,633

9,623

Oct 2022

Apr 2023

1,5500
Apr 2016

Oct 2016

Apr 2017

Oct 2017

Apr 2018

Oct 2018

Apr 2019

Oct 2019

Apr 2020

Oct 2020

9,563

9,574

Apr 2020

Oct 2020

Apr 2021

Oct 2021

Apr 2022

9,139

9,129

Oct 2021

Apr 2022

After Today’s Transactions(million yen)
20,00015,00010,000

8,938

10,233

7,263
6,527
5,867
5,000

1,5500
Apr 2016

Oct 2016

Apr 2017

Oct 2017

Apr 2018

Oct 2018

Apr 2019

Oct 2019

5Apr 2021

Weighted Average Interest Rate and Loan Term
(Loan Term, Year)(Interest Rate)

5.0

2.5%
Weighted Average Interest Rate
Average Loan Term
2.0%

4.3 years
1.80%

4.2 years

1.69%
1.53%

4.0

3.8 years

3.7 years

3.0

1.5%
1.23%
2.7 years

2.6 years

1.19%

1.14%

2.6 years

1.07%

1.0%

2.0

0.5%

1.0

0.0

0.0%
October 2013

April 2014

October 2014

April 2015

October 2015

April 2016

After New Loans(Note 1) Average Interest Rate is a weighted average based on the outstanding loan amount.
(Note 2) Average Loan Term is a weighted average based on the outstanding loan amount.

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