Ichigo Office(8975)

Ichigo Office April 2023 Fiscal Period
Corporate Presentation
June 14, 2023

Ichigo Office REIT Investment Corporation (8975)
Ichigo Investment Advisors Co., Ltd.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

www.ichigo-office.co.jp/en

Make The World
More Sustainable© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

April 2023 Results April 2023 Highlights
 April 2023 Earnings
 April 2023 Financial Metrics
 Occupancy & Average Rent per Tsubo (3.3m2)
 Rent Trends
 Organic Growth: New Tenants at Higher Rents
 Organic Growth: Rent Renewals of Existing Tenants Leasing Case Driving Growth Via Value-Add Capex
 Driving Shareholder Value Via Strategic Portfolio Restructuring April 2023 Asset Sale: Ichigo Ikenohata Building: Ichigo’s ValueAdd Case April 2023 Asset Acquisitions: Acquired Three Assets With Growth
Potential
 Ichigo Office’s Environmental Initiatives

Appendix
 Ichigo Office ESG
 Financial & Portfolio Data Mid-Size Office Investment Opportunity About Ichigo Office Other

Ichigo Office Growth Strategy
 Ichigo Office Total Return Track Record & Ongoing KPI Ichigo Office’s Mission: Maximize Shareholder Value Access to Sponsor Ichigo’s Robust Pipeline of Office Assets
 Ichigo’s Strong Sponsor Support
 October 2023 Forecast April 2024 Forecast© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

5April 2023 Results© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

6

April 2023 Highlights
Achievements

Details• Asset acquisitions: 3 assets/JPY 8B• Asset sale: 1 asset/JPY 10.6B
Total Assets +JPY 2.9B vs. October 2022

• Acquired via own sourcing network (Ichigo Marunouchi
South Building)• Acquired leveraging sponsor support via exercisingpreferential negotiation right (Ichigo Hakataeki Higashi
Building, Fukuoka Kensetsu Kaikan)• Sold at 1.9X appraisal value (Gains on Sale JPY 4.3B)• NOI: +JPY 333M (+6.2% vs. forecast)• NOI increase from asset acquisitions• Asset cost reductions due to effective cost controls

Financing• Refinancing: JPY 9.6B
• New Loans: JPY 1.8B

• Continue extending loan maturity and hedging interest
rate risk via credit swaps (6.5 year average maturity
on new loans, 91.6% of loans have fixed rates)

Dividend

JPY 4,224(+JPY 2,172, +105.8% vs. October 2022)• +JPY 92 (+2.2%) vs. initial forecast• Recorded Gains on Sale from Ichigo Ikenohata
Building

Base EPS1

JPY 1,898(-JPY 85, -4.3% vs. October 2022)• +JPY 15 (+0.8%) vs. initial forecast• Impacted by non-deductible consumption tax fromasset sale

NAV2

JPY 96,660(-JPY 419, -0.4% vs. October 2022)• Decrease in portfolio unrealized gains: JPY 47.3B(-JPY 0.6B vs. October 2022)• Decrease in appraisal value due to large-scale retailtenant departure

FFO3

JPY 1,947(-JPY 637, -24.7% vs. October 2022)• Temporary FFO decrease due to asset sale

Acquisition-Driven
GrowthOrganic Growth

1 Base EPS calculated by deducting Gains on Sale and the impact of Gains on Sale on asset management fee
2 NAV = BPS + Net Unrealized Capital Gains per share

3 FFO = Funds From Operations© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

7

April 2023 Earnings(JPY million)
October 2022
ActualApril 2023
InitialForecast (B)April 2023
Actual (A)vs. Forecast(A) - (B)

Major Variation Factors

Operating Revenue

7,800

12,38012,253+126

Operating Profit

3,775

7,189

7,041

+148

Recurring Profit

3,001

6,390

6,251

+138

Net Income
Dividend Reserve (-)
Dividend Reserve Release (+)

Dividend

3,001

6,390

6,251

+138

–

103

103

–

105

105

105

–

Decrease in Rental Expenses -170
Increase due to asset acquisitions during fiscal period +34[Existing Assets]
Decrease in utilities expenses -124
Decrease in service provider expenses (mainly brokerage fees) -63
Increase in depreciation +18
Decrease in repair expenses -25
Decrease in other expenses -9

JPY 2,052

JPY 4,224

JPY 4,132+JPY 92

Increase in Operating Expenses (excluding Rental Expenses) +148
Increase in NOI & Dividend Performance Fee +153
Increase in Non-Operating Expenses +9
Increase in interest payment +4
Increase in borrowing-related expenses +4

EPS

JPY 1,983

JPY 1,898

JPY 1,883+JPY 15

No. Of Shares Outstanding

1,513,367

1,513,367

1,513,367

–

5,586

5,712

5,378

+333

86

88

86

+2

Occupancy (on Last Day of Period)

96.5%

95.9%

96.8%

-0.9%

Average Occupancy

95.8%

96.2%

96.5%

-0.3%

NOI
No. Of Assets

Increase in Rental Income +126
Increase due to asset acquisitions during fiscal period +88[Existing Assets]
Increase in common area services income +25(Ichigo Ofuna Building +12)
Increase in one-time income +13(Restoration expenses borne by Ichigo Mita Building Tenant +14)

Reference: Capex
April 2023 Actual 828
Reference: April 2023 Reserves (Post-Dividend)
Negative Goodwill Reserve 8,689
Dividend Reserve 3,471* NOI = Rental Income - Rental Expenses + Depreciation
No. Of Assets is as of Period-End
Base EPS calculated by deducting Gains on Sale and the impact of Gains on Sale on asset management fee© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

8

April 2023 Financial Metrics
Driving Stability Via Extending Loan Maturity and Fixing Interest Rates
April 2022

October 2022

April 2023

Dividend

JPY 2,508

JPY 2,052

JPY 4,224

NAV (per Share)

JPY 95,053

JPY 97,079

JPY 96,660

FFO (per Share)

JPY 2,408

JPY 2,584

JPY 1,947

Book Value LTV

48.8%

49.2%

48.7%

Market Value LTV

45.2%

44.7%

45.0%

Average Interest Rate

0.79%

0.81%

0.84%

Average Debt Maturity

6.9 years

7.0 years

7.0 years% Fixed Rate Loans

91.3%

91.4%

91.6%

Credit Rating (JCR)

A (Positive)

A+ (Stable)

A+ (Stable)* NAV = Net Assets + Net Unrealized Capital Gains* FFO = Net Income + Depreciation + Losses on Disposal of Fixed Assets + Liability for Asset Retirement Obligation + Losses on Asset Sales Gains on Asset Sales - Extraordinary Gains + Extraordinary Losses* Book Value LTV = Interest-Bearing Liabilities/Total Assets* Market Value LTV = Interest-Bearing Liabilities/Period-End Appraisal Value (or Appraisal Value as of Acquisition Date for Assets Acquired
During Fiscal Period)* Average Debt Maturity is as of Period-End© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

9

Occupancy & Average Rent per Tsubo (3.3m2)
Steady Occupancy for Office Sections, More Time Required for Leasing ofRetail Sections & Certain Large Office Sections
Occupancy (Office)

Average Rent per Tsubo (3.3m2)

100%
(JPY)

Office (All)Office (Central Tokyo)

18,200
97.3%

96.9%

17,900

96.6%
95.6%

95%

95.8%

18,00018,10018,100

96.0%

96.2%
95.1%

94.8%

15,10094.1%

15,00015,20015,00015,100Period-End
Occupancy
Free RentAdjusted
Occupancy
90%
Apr 2021

Oct 2021

Apr 2022

Oct 2022

Average Free-Rent Period:
October 2022
2.5 months
April 2023
2.0 months

Apr 2023
Apr 2021

All Offices
82 Assets(Central Tokyo) (45 Assets)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Oct 2021
82 Assets(45 Assets)

Apr 2022
81 Assets(44 Assets)

Oct 2022
82 Assets(44 Assets)

Apr 2023
84 Assets(44 Assets)

10

Rent Trends
Temporary Decrease in Monthly Rent Due to Tenant Departure of Large
Office Section

1,117

October 2022

New Tenants/
Increased Space

Departing Tenants/
Decreased Space

Renewals at
Higher Rent

+36

-44

-0.2

Change Due toTenant Movements-JPY 8M (-0.8%)

Change Due to
Lease Renewals-JPY 0.2M (-0.02%)

Monthly Rent

(JPY million)

1,108

April 2023

* Excludes assets acquired and sold during the April 2023 fiscal period* Change in Occupancy: 96.6% (October 2022)  96.0% (April 2023)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

11Organic Growth: New Tenants at Higher Rents
Two-Thirds of New Tenants at Higher Rents
New Tenant Rent vs. Previous Tenant Rent

Impact on Monthly Rental Income From Tenant Turnover(Office, Leased Area Basis)■ Downward■ Flat(Office)
Downward:
9 new tenants
Average
Decrease:-10.1%■ Upward

15.0%
2.6%

32.4%

26.1%

26.0%

UpwardDownward
Decrease Due to Large-Scale Retail Tenant
at the Ichigo Sakae Building+2,204

6.2%

6.4%+1,197

Flat: 3 new tenants+2,397
12.8%

67.6%

Average
Increase+18.2％+2,899-482

Upward:29 new tenants-8,248-1,154-2,215

54.8%
Average
Increase+21.5％+1,745

3,412+1,507

82.4%
67.7%

4,503

+2,879Rent
ChangeAverage
Increase+13.2％(JPY thousand)-2,298Average
Increase+13.7％-9,420-9,756

Oct 2021

Apr 2022

Oct 2022

Apr 2023

Oct 2021

Apr 2022

Oct 2022

Apr 2023 Oct 2023**Oct 2023 reflects leases in place as of June 1, 2023.
© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

12Organic Growth: Rent Renewals of Existing Tenants
Flat or Upward Rent Renewals for Over 90% of Existing Tenants
New Rent vs. Previous Rent

Change in Total Monthly Rent

(Office, Leased Area Basis)(Office)■ Downward■ Flat0.0%

0.4%

UpwardDownward■ Upward
0.7%

4.4%
Downward:
4 tenants
Decrease: -4.4%(JPY thousand)+1,223
1,264

+823

+190

823
Flat: 232 tenants

95.4%

92.7%

95.5%

772

Rent
Change

-231
625
-33
+88

93.7%

0

-121

-40

-581
Average
Increase
+9.0％

4.6%
Oct 2021

Average
Increase
+5.9％

6.9%
Apr 2022

Average
Increase+9.5％

Average
Increase+11.5％

3.8%

1.9%

Oct 2022

Apr 2023

Upward:5 tenants-856
Oct 2021

Apr 2022

Oct 2022

Apr 2023 Oct 2023**Oct 2023 reflects leases in place as of June 1, 2023.
© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

13

Leasing Case
− April 2018: Leased to drug store franchise at +41% rent increase− April 2022: Received advance lease termination notice due to change intenant store strategy− May 2023: Leased to new tenant with zero downtime despite difficult
leasing environment for large retail spaces
Global Fashion Brand

Drug Store Franchise

Global Sports Brand

2010 - 20182018 - 2023

From 2023

Ichigo Sakae Building (Nagoya City, Aichi)
・ Located in Sakae area, one of Nagoya’s prime CBD, along Otsu Dori where there is a high concentration of retail stores・ Received an advance notice from 1-2F Tenant (777.24m2, drug store) in April 2022 regarding lease termination in May 2023
・ Focused leasing activities on retail tenants capable of paying rents despite difficult leasing environment for large retail spaces
・ Successfully leased to global sports brand (no downtime), currently preparing opening of flagship store for the Chubu area(scheduled to open in Fall 2023)
Floors

1F/2F

Area

777.24m2 (235.10 tsubo)

Contract Start Date

May 2023

Downtime

None© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

14

Driving Growth Via Value-Add Capex− Increasing tenant satisfaction via common area renovations− LED installation rate in common area: 74%, reducing environmental
impact and cost
Ichigo Ningyocho Building

Entrance

Elevator Hall

Ichigo Hakata East Building

Elevator Hall

Restroom© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Ichigo Sakae Building

Elevator Hall

Restroom

Ichigo Kawasaki Building

Elevator Hall

Restroom
15

Driving Shareholder Value Via Strategic Portfolio Restructuring
Optimize Portfolio & Drive Growth in Asset & Shareholder Value
Portfolio Restructuring Since 2017
(Timing of Most Recent PO)
13 Assets
Total Sales Price JPY 31.6B(Gains on Sales JPY 8.4B)

Asset
Sales

Asset
Acquisitions

Bridge Fund

15 Assets
Total Acquisition Price JPY 39.9B
High-quality mid-size offices in Nagoya &FukuokaNOI Increase
JPY +630M p.a.

NOI Increase = Forecast NOI of acquired
assets calculated by IIA minus actual NOI ofsold assets

Portfolio Size (JPY B)

Dividend Growth (JPY)

212.1

4,224

Impact194.5

JPY 6,320M

Total Appraisal
Value

JPY 6,740M

TK Equity
Investment

JPY 38M

Exercise Period*

January 31,
2025

Underlying
Assets2

Ogaku Building+17.6B(+9.1%)

Before Portfolio
Restructuring(December 31, 2016)

Acquisition Price*+121.8%

1,904
After Portfolio
Restructuring(April 30, 2023)

Before Portfolio
Restructuring(October 2016)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

After Portfolio
Restructuring(April 2023)

Ichigo Hakata Meiji Dori Building
16

April 2023 Asset Sale

Ichigo Ikenohata Building: Ichigo’s Value-Add Case
− Asset acquisition via sponsor asset warehousing support
 Initially acquired by sponsor from global company exiting real estate business− Asset sale at 2X acquisition price (+106.6%) after managed by Ichigo
Office for 6 years− Significant increase in dividend due to gains on sale
(Impact: Dividend +JPY 2,257, +114.7%)− Investment returns due to reinvestment of proceeds from the sale
 Acquired Hakataeki Higashi Building and Fukuoka Kensetsu Kaikan frombridge fund created by sponsor offering flexibility
Acquisition andWarehousing by
SponsorSponsor Support for
Ichigo Office Flexibility Acquisition Date:
July 2015
 Acquisition Price:
JPY 5,050M

Acquisition
 Acquisition Date:
May 2016
 Acquisition Price:
JPY 5,130M
 Appraisal Value:
JPY 5,220M
 Unrealized Gains:
JPY 90M

Driving Value(Value-Add AssetManagement)

Realizing Value
Greater Than
Appraisal Value (Sale) Most Recent Fiscal
Period: October 2022
 Book Value: JPY 5,115M
 Appraisal Value:
JPY 5,600M
 Unrealized Gains:
JPY 489M(5.4X unrealized gains at
acquisition)

 Sale Date:
December 2022
 Book Value: JPY 5,111M
 Sale Price: JPY 10,600M
 Realized Gains:
JPY 4,393M(48.8X unrealized gains at
acquisition)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

17

April 2023 Asset Acquisitions

Acquired Three Assets With Growth Potential
Optimize Portfolio & Drive Growth in Asset & Shareholder Value
Ichigo Marunouchi
South Building

Ichigo Hakataeki
Higashi Building

Fukuoka Kensetsu Kaikan

Asset
Name

Acquisition Date

November 30, 2022

January 27, 2023

Area

Nagoya City, Aichi

Fukuoka City

Location

2-min walk from Marunouchi
Station on Sakura Dori
Subway Line

4-min walk from Hakata Station
on JR Kagoshima Main Line2-min walk from Higashi-Hie
Station on Fukuoka City
Subway Kuko Line

Acquisition Price

JPY 1.75B

JPY 3.5B

JPY 2.75B

Appraisal Value

JPY 1.85B

JPY 3.63B

JPY 2.81B

NOI Yield

4.8%

4.5%

4.6%

SellerThird Party(Ichigo Office Network)

GK Kizuna1 (Sponsor Support)

Financing Method

Cash-on-handCash-on-hand + Loans* NOI Yield is calculated by dividing NOI by Acquisition Price© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

18

Ichigo Office’s Environmental Initiatives− Environmental
 Tokyo Low-Carbon Small and Medium-Sized Model Building Certification(January 2023)−−−

Ichigo Jingumae Building (CO2 Rank: A3)
Ichigo Higashi Gotanda Building (CO2 Rank: A3-)
Ichigo Mita Building (CO2 Rank: A1+)

 Currently 8 assets have received this certification

Ichigo Jingumae
Building

Ichigo Higashi
Gotanda Building

Ichigo Mita
Building

19 Assets Have Received Environmental Certifications,
32.0% of Total Leasable Office Area

− Initiatives Towards Low-Carbon Society Completed transitioning all assets (excluding partially owned and co-owned
assets) to renewable electricity, including 4 assets acquired after October
2022 (Ichigo Higashi Ikebukuro 3 Chome Building, Ichigo Marunouchi South
Building, Ichigo Hakataeki Higashi Building, Fukuoka Kensetsu Kaikan)
 Renewable energy transition reduced annual CO2 emissions by 24,089 tons
(vs. 2019)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

19

Ichigo Office Growth Strategy© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

20

Ichigo Office Total Return Track Record & Ongoing KPI
Total Return Since Listing: +332.6%
Total Return(as of April period-end)

1-Year

3-Year

10-Year

Since
Listing

Ichigo Office Total Return+13.5%+54.1%+129.2%+332.6%

Ichigo Office Total Return p.a.

+13.5%+15.5%

+8.6%

+8.7%

TSE REIT Index Total Return p.a.

-1.4%

+10.1%

+5.5%

+5.6%

Ichigo Office Outperformance
vs. TSE REIT Index+14.9%

+5.4%

+3.2%

+3.1%

Ongoing KPI: Ichigo Office Total Return >8% p.a.
Total Return: Change in Share Price + Dividends (Reinvested) divided by Share Price
Since Listing: from October 12, 2005; 10-year period: from April 30, 2023; 3-year Period: from April 30, 2020; 1-year period: from April 28, 2022
Source: Bloomberg© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

21

Ichigo Office’s Mission: Maximize Shareholder Value
Actions

Outcomes

Ongoing
Value-Add- Consistently create value regardless of market
environment via proactive deployment of
Ichigo’s value-add capabilities

Smart Capital Policy
to Drive
Shareholder Value- Use retained earnings to fund growth- Execute on both growth investments & sharebuybacks

Effective Use ofSponsor Pipeline- Acquire assets with earnings upside & drive
higher NOI, dividend, and NAV via value-add© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

22

Access to Sponsor Ichigo’s Robust Pipeline of Office Assets
Growth Via Sponsor Pipeline (20 Assets, JPY 74.7B)
No.

Asset Name

Area

1

Ogaku Building*Central Tokyo

2

Ichigo Hakata Meiji Dori Building*3

Office in Chiyoda-ku, Tokyo

Central Tokyo

4

Office in Chiyoda-ku, Tokyo

Central Tokyo

5

Office in Minato-ku, Tokyo

Central Tokyo

6

Office in Minato-ku, Tokyo

Central Tokyo

7

Office in Minato-ku, Tokyo

Central Tokyo

8

Office in Shinagawa-ku, Tokyo

Central Tokyo

9

Office in Meguro-ku, Tokyo

Tokyo Metropolitan Area

10

Office in Koto-ku, Tokyo

Tokyo Metropolitan Area

11

Office in Taito-ku, Tokyo

Tokyo Metropolitan Area

12

Office in Musashino City, Tokyo

Tokyo Metropolitan Area

13

Office in Funabashi City, Chiba

Tokyo Metropolitan Area

14

Office in Sendai City, Miyagi

Other Regional Cities

15

Office in Utsunomiya City, Tochigi

Other Regional Cities

16

Office in Fukuoka City

Four Major Regional Cities

17

Office in Fukuoka City

Four Major Regional Cities

18

Office in Fukuoka City

Four Major Regional Cities

19

Office in Fukuoka City

Four Major Regional Cities

20

Office in Fukuoka City

Four Major Regional Cities

Four Major Regional Cities

Fukuoka City

Fukuoka City

Total Book Value at Acquisition &Preferential Negotiation Price: JPY 74.7B

Sendai City,
Miyagi

Chiyoda-ku,
Tokyo* Ichigo Office preferred negotiation right© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

23

Ichigo’s Strong Sponsor Support− Ichigo’s Purchase of Ichigo Office Shares Strong sponsor commitment to support further Ichigo Office growth and drive
shareholder value− Support Ichigo Office’s Value Creation Initiatives Via Pipeline of HighQuality Assets
 Ichigo strategically acquires assets from third parties and sells to Ichigo Office
at appropriate times− Sustainability Initiatives Including RE100
 Leverage Ichigo’s real estate technology and know-how to make buildings inJapan last 100 years
 Promote sustainability and transition to 100% renewable electricity acrossoperations in line with sponsor’s RE100 target— Completed transitioning all Ichigo Office assets during April 2023 fiscal period© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

24

October 2023 Forecast
Dividend Forecast to Decrease Due to Dropping Out of Gains on Sale
April 2023
Actual (B)October 2023
Forecast (A)vs. April 2023
(A) - (B)(JPY million)

Major Variation Factors (vs. April 2023)
Dropping Out of Gains on Sale -4,393

Operating Revenue

12,3808,258-4,122

Operating Profit

7,189

3,727

-3,462

Recurring Profit

6,390

2,945

-3,445Net Income

6,390

2,944

-3,445

Dividend Reserve (-)

103

–

-103

Dividend Reserve Release (+)

105

105

–

Dividend

JPY 4,224

JPY 2,015-JPY 2,209

EPS

JPY 1,898

JPY 1,945+JPY 47

No. Of Shares Outstanding

1,513,367

1,513,367

–

5,712

5,637

-75

88

88

–

Occupancy (on Last Day of Period)

95.9%

97.1%

+1.1%

Average Occupancy

96.2%

96.7%

+0.5%

NOI
No. Of Assets

Increase in Rental Income +272
Increase due to April 2023 asset acquisitions +98
Decrease due to April 2023 asset sale -46[Existing Assets]
Decrease in common area services income -81(Ichigo Sakae Building -96)
Increase in parking lot and facility use income +1
Increase in utilities income +320
Decrease in other income and one-time income -19(Dropping out of restoration expenses borne by Ichigo Mita Building tenant -14)
Increase in Rental Expenses +355
Increase due to April 2023 asset acquisitons +45
Decrease due to April 2023 asst sale -24[Existing Assets]
Increase in service provider expenses (mainly brokerage fees) +66
Increase in utilities expenses +221
Increase in fixed asset tax +20
Increase in repair expenses +19
Decrease in Operating Expenses (excluding Rental Expenses) -1,015
Decrease in NOI & Dividend Performance Fee due to revenue decrease -910
Decrease in non-deductible consumption tax due to previous period asset sale -164
Increase in Extraordinary Shareholder Meeting-related expenses +46
Decrease in Non-Operating Expenses -17
Increase in interest payment relating to new loans in April 2023 +24
Decrease in borrowing-related expenses -41
Reference: Capex
October 2023 Forecast 955
Reference: October 2023 Reserve (Post Dividend)
Negative Goodwill Reserve 8,584
Dividend Reserve 3,471* NOI = Rental Income - Rental Expenses + Depreciation
No. Of Assets is as of Period-End
Base EPS calculated by deducting Gains on Sale and the impact of Gains on Sale on asset management fee© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

25

April 2024 Forecast
Dividend Forecast to Increase Due to Continued Asset Management Stability(JPY million)
October 2023
Forecast (B)April 2024
Forecast (A)vs. October 2023
(A) - (B)Operating Revenue

8,258

8,244

-13

Operating Profit

3,727

3,779

+52

Recurring Profit

2,945

3,011

+66

Net Income

2,944

3,011

+66

Dividend Reserve (-)
Dividend Reserve Release (+)

–

–

–

105

105

–

Dividend

JPY 2,015

JPY 2,059+JPY 44EPS

JPY 1,945

JPY 1,989+JPY 44

No. Of Shares Outstanding

1,513,367

1,513,367

–

5,637

5,669

+31

88

88

–

Occupancy (on Last Day of Period)

97.1%

96.4%

-0.7%

Average Occupancy

96.7%

96.6%

-0.1%

NOI
No. Of Assets

Major Variation Factors (vs. October 2023)
Decrease in Rental Income -13
Increase in rental income +23
Decrease in utilities income -39
Decrease in Rental Expenses -31
Decrease in service provider expenses (mainly brokerage fees) -21
Decrease in utilities expenses -36
Increase in depreciation expenses +14
Increase in repair expenses +8
Decrease in Operating Expenses (excluding Rental Expenses) -34
Increase in NOI & Dividend Performance Fee due to revenue increase +22
Decrease in Extraordinary Shareholder Meeting Expenses -46
Decrease in research fees/engineer reports -3
Decrease in Non-Operating Expenses -14
Increase in interest payment +11
Decrease in borrowing-related expenses -25

Reference: Capex
April 2024 Forecast 884
Reference: April 2024 Reserve (Post Dividend)
Negative Goodwill Reserve 8,479
Dividend Reserve 3,471* NOI = Rental Income - Rental Expenses + Depreciation
No. Of Assets is as of Period-End
Base EPS calculated by deducting Gains on Sale and the impact of Gains on Sale on asset management fee© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

26

Appendix: Ichigo Office ESG© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

27

Ichigo Office’s Sustainability Commitment
Ichigo Sustainability Policy
Ichigo believes that working on behalf of society and the environment is a fundamental social responsibility and will support the sustainable growth of
Ichigo and Ichigo Office. Ichigo has thus made sustainability a key priority, and has established the following Sustainability Policy to actively work to
reduce Ichigo’s environmental impact and support sustainable outcomes.
1. Harmony With the Environment
Ichigo actively monitors and minimizes the environmental impact of its real estate operations.
2. Energy Conservation, CO2 Emissions Reduction, and Recycling
Ichigo seeks to contribute to a low-carbon, low-waste society by lowering its energy consumption, extending the useful life of its
assets, actively recycling, and reducing waste and water consumption.
3. Regulatory and Environmental Compliance
Ichigo complies with all environmental laws and regulations and Ichigo’s own independently-established environmental rules. Ichigo
also carefully monitors and complies with all applicable changes in laws and regulations.
4. Training and AwarenessIchigo promotes understanding of its Sustainability Policy and works to increase sustainability awareness among all Ichigo employees.
Ichigo will also promote sustainability in coordination with Ichigo stakeholders, seeking understanding and cooperation onsustainability from Ichigo partner companies and tenants.
5. Sustainability Performance Communication and Disclosure
Ichigo communicates this Sustainability Policy and Ichigo’s sustainability initiatives to society at large. Ichigo also obtains
certifications for its sustainability activities on an ongoing basis.
6. Green Procurement
Ichigo will implement green procurement measures, such as environmentally-friendly building materials and sustainable design, in
Ichigo’s building renovations, as well as selecting partner companies based on their environmental sustainability initiatives.

Ichigo Sustainability Structure− The Head of Ichigo Office is responsible for promoting sustainability and ensuring compliance with the Sustainability Policy.
− Quarterly meetings to monitor sustainability efforts and compliance Attended by the Heads of Sustainability, Asset Management, and Business Planning Develop sustainability goals and initiatives in coordination with sponsor Ichigo− Training and Awareness Conduct annual sustainability training for Office REIT asset management staff− Information Disclosure Disclose sustainability goals and performance and communicate to stakeholders© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

28

Ichigo Climate Positive: CO2 Reduction > Emissions
Ongoing Ichigo Clean Energy Production Growth & Renewable Energy
Transition & Carbon Offsets
CO2 Reduction vs. CO2 Emissions(tons)■ Total Ichigo Power Plant CO2 Reduction1■ Total Ichigo CO2 Emissions (Scope 1+2)

CO2 Emissions
Reduction Measures

Impact ofReduction
Measures-250-7,07098,647

95,47875,42575,80883,41259,445-34,470

54,80326,000FY20/2

FY21/2CO2 Reduction Base Year

Start RE100

FY22/2

Ongoing Initiatives
Switch to Renewable
Energy28,900 tons
Decreased Energy
Consumption
870 tons
New Initiatives
Non-Fossil Certificate
Tracking for Ichigo Power
Plants4,700 tons

FY23/2
Forecast

1 Calculated using each EPCO’s adjusted CO2 emission factor disclosed by the Ministry of Environment as a fixed constant for each period© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

29

On Track Toward Achieving 2025 RE100 Target
Ichigo RE100 Progress
FY25/2 Target

100%

FY23/2 Renewable Energy Transition Impact

CO2 Reduction

FY24/2 Target

85%
FY23/2
FY24/2 Renewable Energy
Renewable
Target
Ratio
Energy15%
Switch70%(+17% vs. FY22/2)

35,000 tons p.a.

CO2 Emissionsof Cars

× 15,200 cars p.a.

57%

13%
Non-Fossil Certificate
Tracking for Ichigo Power
PlantsIncludes all Ichigo, Ichigo Office (8975), andIchigo Hotel (3463) assets© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

30

ESG Initiatives: Environmental (1)Sustainability Initiatives Progress

GRESB Real Estate Assessment (Since 2016)− Awarded Three Stars in GRESB Rating 5 years in a row− Won Green Star designation 6 years in a row,
in recognition of its ESG-related policies andorganizational setup (the “Management Component”),
and environmental performance of assets as well as
tenant engagement (the “Performance Component”)

Transitioning to Renewable Energy
Ichigo RE Target: Sourcing 100% Renewable Electricity Across Its Operations by 2025
− In line with sponsor Ichigo joining RE100, Ichigo Office completed transitioning all
assets to renewable electricity*Excluding partially-owned and co-owned assets

Reduced Annual CO2 Emissions by 24,089 tons (vs. 2019)− 24,089 tons = 9.9X the volume of Tokyo Dome or annual emission of 10,473 cars
− Reduction rate: 89.3%© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

31

ESG Initiatives: Environmental (2)Environmental Certifications (as of June 14, 2023)− 22 Certifications (19 Assets), 32.0% of Total Leasable Area for Offices
CASBEES RankIchigoTakamatsu
Building

Tokyo Low-Carbon Smalland Medium-Sized Model Buildings

BELS

IchigoJingumae
Building

IchigoMarunouchi
Building

2 Stars (★★)

1 Star (★)

A3

A3-

A2+

Ichigo Akihabara
North Building

Ichigo Omiya
Building

Ichigo Jingumae
Building

Ichigo Higashi
Gotanda Building

Ichigo Kudan
Building

A RankA1+

DBJ Green Building
Ichigo
Ebisu
Green
Glass

IchigoSakaisuji
Honmachi
Building

IchigoSendaiEast
Building

IchigoHigashi
GotandaBuilding

3 Stars (★★★)

1 Star (★)

IchigoAkihabara
North
Building

IchigoOmori
Building

IchigoOtsukaBuilding

IchigoMita
Building

A1
IchigoNihonbashi East
Building
Ichigo Kanda
Nishikicho
Building

IchigoMirai
Shinkin
Building

Win Gotanda
Building

Win
GotandaBuilding 2© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Ichigo Hiroo Building

32

ESG Initiatives: Social
Increasing Stakeholder Satisfaction & Contributing to Society
Disaster and Emergency Readiness Emergency equipment such as elevator emergency
kits and vending machines Sandbags available at each building as flooding
measures

Ichigo Group Initiatives
 Contributing to Regional Revitalization• Ichigo works to revitalize local communities and promote regional
economic development. Ichigo’s model of preserving andimproving existing real estate creates jobs and supportsbusinesses, and our clean energy plants also support their hostcommunities by providing new and sustainable sources of income.

 Ichigo University

Elevator Emergency Kits

AED

Vending Machines as partof Disaster Recovery

 Tenant Satisfaction Surveys• Reflect tenant needs collected from periodic tenantsatisfaction surveys• Contributing to comfort and convenience of tenant
employees via introducing bike share system• Ichigo established Ichigo University in May 2013 to support
employees’ continuing education and personal growth.
• Ichigo University courses are taught by employees and external
professionals who are specialists in their fields and have deep
experience.
(Average Annual Number of Courses: 30)

OnlineIn-Person (Pre-Covid)

 Sports Initiatives

Bike Share System• As a top partner of the J.League professional soccer league, we
support the league’s mission to promote community
development. Ichigo supports outstanding athletes in weightlifting,rifle shooting, and track and field.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

33

ESG Initiatives: Governance
Global Best Practice Governance
No Fixed Fee,
Performance FeeOnly Structure

Best Practice Governance Shifted to performancelinked fee structure on
November 1, 2020 to
fully align with value
creation forshareholders
 Pro-active, dynamic
management of Ichigo
Office assets on behalfof shareholders

 Monitors Asset Management Company• All Ichigo Office Directors are Independent
Directors• Active dialogue and effective internal controls
via Board discussions led by REIT Executive
Director• Draw upon expertise of REIT Supervisory
Directors (qualified lawyers & accountants)

REIT

Asset Management Company (AMC)
 Best Practice Asset Management Structure• Half of AMC Directors (2 of 4) are Independent
Directors• Independent asset management team & bestpractice execution on behalf of Ichigo Office
REIT within AMC• Compliance and Audit are directly under the
AMC President to monitor and review criticalcompliance matters• Ensure objectivity by including third-party,
independent experts in the Investment and Risk
& Compliance Committees

Only 3 J-REITS (out of 60), including Ichigo Office (8975) and Ichigo Hotel (3463),
have both an Asset Management Company (AMC) board that has half or majority of Independent
Directors and whose AMC President does NOT serve as the Executive Director of the REIT
Independence of The Investment Corporation From AMC

Independent Directors at AMC➡ 27 of 60 J-REITs have AMC Presidents serving as➡ Only 5 Asset Management Companies have any

Executive Director of the REIT

Independent Directors

All Ichigo Office Directors are Independent

2 of 4 Ichigo Investment Advisors' Directors
are Independent* Based on research as of May 31, 2023

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

34

Appendix: Financial & Portfolio Data

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

35

Borrowing Details (1)Loan Details

Average Interest Rate and Average Remaining Loan Maturity

2.5%
2.0%

AmountMaturity

Interest
Rate

JPY 4.64B

5.0 years

0.958%(Fixed)JPY 3.28B

5.7 years

1.036%(Fixed)JPY 1.70B

9.8 years

1.609%(Fixed)JPY 700M

9.0 years

1.723%(Fixed)JPY 600M

9.0 years

1.723%(Fixed)JPY 300M

6.8 years

1.405%(Fixed)JPY 200M

6.8 years

1.405%(Fixed)Total/
JPY 11.42B
Average

6.5 years

1.184%(Average Remaining Loan Maturity Including Bonds, Years)(Interest Rate)
Average Interest Rate

5

Average Remaining Loan Maturity

3.9

3.8

3.7

4.1

4.0

4
3

1.5%

2

1.0%
0.88%

0.84%

0.5%

0.84%

0.81%

0.79%

1

Bank
Loans

0

0.0%
Apr 2021

Oct 2021

Apr 2022

Oct 2022

Apr 2023

Fixed vs. Floating Loan Ratio
6.5%

8.7%

8.7%

8.6%

8.4%

Fixed

93.5%

91.3%

91.3%

91.4%

91.6%

Floating
Fixed *
Floating* Fixed includes floating loans fixed via
interest rate swaps

Apr 2021

Oct 2021

Apr 2022

Oct 2022

Apr 2023© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

36

Borrowing Details (2)Loan Maturity Distribution (as of April 30, 2023)
Bank Loans (fixed rate including fixed via interest rate swaps)
Bank Loans (floating rate)
Bonds

11,645

9,812
8,908

8,846
7,647

8,759

1,000

7,346

(JPY million)

1,200

8,869

1,000

8,267
7,347

1,000

1,200
5,494

4,600

7,953

4,192

10,445

7,246
2,900
3,047

4,899
7,759

6,346

6,147

2,000
900

Oct
2023

5,476

Apr
2024

Oct
2024

Apr
2025

Oct
2025

600
Apr
2026

1,500

1,300

Oct
2031

Apr
2032

1,700

955
Oct
2026

Apr
2027

Oct
2027

Apr
2028

Oct
2028

Apr
2029

Oct
2029

Apr
2030

Oct
2030

Apr
2031

Oct
2032

LTV (as of April 30, 2023)
55
Book Value LTV
50

45

48.9%

Market Value LTV
48.9%

48.8%

49.2%

48.7%

48.2%

45.5%

45.6%

45.6%

45.2%

44.7%

45.0%

Oct 2020

Apr 2021

Oct 2021

Apr 2022

Oct 2022

Apr 2023

40

35© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

37

Interest-Bearing Liabilities and Ichigo Office Credit Rating
Lender Base (as of April 30, 2023)
Lender(JPY million)

AmountRatio

Credit Rating
Credit Rating Agency

Japan Credit Rating Agency (JCR)Type of Rating

Long-Term Issuer Rating

SMBC

29,52825.7%

Mizuho Bank

21,195

18.4%

SBI Shinsei Bank

13,608

11.8%

RatingA+

MUFG Bank

11,583

10.1%

Rating Outlook

StableAozora Bank

9,952

8.7%

Resona Bank

8,418

7.3%

Bank of Fukuoka

3,529

3.1%

Development Bank of Japan

3,400

3.0%

The Kagawa Bank

1,715

1.5%

Mizuho Trust

1,637

1.4%

The Bank of Yokohama

1,422

1.2%

Nishi-Nippon City Bank

1,412

1.2%

608

0.5%

108,00794.0%

ORIX Bank
Total
Bonds

AmountRatio

Unsecured Bonds No.1

1,200

1.0%

Unsecured Bonds No.2

1,000

0.9%

Unsecured Bonds No.3

1,000

0.9%

Unsecured Bonds No.4

1,200

1.0%

Unsecured Bonds No.5

1,000

0.9%

Unsecured Bonds No.6

1,500

1.3%

6,900
114,907

6.0%

Total
Total Interest-Bearing Liabilities

100%© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

38

Growing Shareholder Value: NAV(JPY)

Growing Value Via Value-Add Capex
NAV per Share Since October 2015: +37.9%
91,618BecameSpecialized Office REIT
in September 2015

84,07685,957

93,193 92,787 92,874 92,958

95,053

97,079 96,660

Apr
2022

Oct
2022

87,934

81,15576,40078,33673,493
70,117Oct
Apr
Oct
2015 2016 2016

Apr
2017

Oct
2017

Apr
2018

Oct
2018

Apr
2019

Oct
2019

Apr
2020

Oct
2020

Apr
2021

Oct
2021

Apr
2023

NAV per Share = BPS + Net Unrealized Capital Gains per Share© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

39

Trend of Portfolio Unrealized Gains
April 2023 Unrealized Gains JPY 47.3B, -JPY 0.6B vs. October 2022
(JPY million)
500,000

30%
Period-End Book Value (left axis)

Period-End Appraisal Value (left axis)

Unrealized Gains Ratio (right axis)

400,000

19.82%

21.01%

20.77%

22.25%
20.39%

23.41%

22.78%

20.53%
20%

17.13%

300,000

10%

200,000

200,472

241,167

240,131234,805
200,413

199,297

244,029

240,398
199,047

202,697

202,436

201,489

255,330

253,110

246,330

244,001

205,098

207,9510%100,000

-10%

0

-20%
Apr 2019(85 assets)

Oct 2019(85 assets)

Apr 2020(85 assets)

Oct 2020(85 assets)

Apr 2021(86 assets)

Oct 2021(86 assets)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Apr 2022(85 assets)

Oct 2022(86 assets)

Apr 2023(88 assets)

40

Lease Renewals
April 2023: Change in Monthly Rent by Asset Type((JPY million)

Downward

Asset
Acquisitions

Asset
Sale

April 30,
2023

ChangeChangeatExisting
Assets

–

–

+31

-25

1,139

-2

-8

–

–

–

–

–

31

–

–

-44

–

–

+31

-25

1,171

-2

-8

October 31,
2022

New
LeasesLease
Terminations

UpwardOffice

1,142

+36

-44

Other

31

–

Total

1,174

+36

April 2023: Lease Renewals by Asset Type
Asset Type
UpwardDownward

Flat

Total

No. OfAssetsLeased Area

Change in Rent
(Semi-Annual)

Change From
Previous Rent

Office5

1,184.75m2+JPY 3.7M+11.5%

Other

–

–

–

–

Total

5

1,184.75m2+JPY 3.7M+11.5%

Office42,841.21m2-JPY 5.1M

-4.4%

Other

–

–

–

–

Total

4

2,841.21m2-JPY 5.1M-4.4%

Office232

59,982.84m2

–

–

Other

5

2,425.40m2

–

–

Total

237

62,408.24m2––

Office241

64,008.80m2-JPY 1.3M

-0.1%

Other

5

2,425.40m2

–

–

Total

246

66,434.20m2-JPY 1.3M-0.1%© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

41

Leased Area
April 2023: Leased Area by Asset Type
October 31,
2022

((m²)
New
LeasesLease
Terminations

Asset
Acquisitions

Asset
Sale

April 30, 2023

ChangeChange at
Existing
Assets

Office248,677+7,304-8,711+8,102-5,504

249,868+1,191-1,479

Other

8,832

–

–

–

–

8,832

–

–

Total

257,510+7,304-8,711+8,102-5,504

258,701+1,191-1,479April 2023: New Leases & Lease Terminations by Asset Type
New Leases

UpwardDownward

Flat

Total

Lease Terminations
Asset
Type

No. OfAssetsLeasedArea

Total Rent
(Semi-Annual

No. OfAssetsLeasedArea

Total Rent
(Semi-Annual)

Office29

4,940m2+JPY 144.5M

Office41

8,711m2+JPY 267.2M

Other

–

–

–

Other

–

–

–

Total

29

4,940m2+JPY 144.5M

Total

41

8,711m2+JPY 267.2M

Office91,895m2+JPY 61.6M

Other

–

–

–

Total

9

1,895m2+JPY 61.6M

Office3

468m2+JPY 10.4M

Other

–

–

–

Total

3

468m2

+JPY 10.4M

Office41

7,304m2+JPY 216.7M

Other

–

–

–

Total

41

7,304m2+JPY 216.7M© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

42

Survey of New & Departing Tenants: Reason for Relocation
New Tenants

Oct 2021

Departing Tenants

Moving to a different building for larger floor space or better location

Moving to a different building for larger floor space or better location

Opening a new office

Closing office

Reducing cost or floor space

Reducing cost or moving to a different building to integrate with other divisions

Other

Other

48.6%

32.4%

13.5% 5.4%

Oct 2021

13.9%

19.4%

63.9%

Apr 2022

57.5%

22.5% 10.0% 10.0%

Apr 2022

17.4% 10.9%

69.6%

Oct 2022

55.8%

20.9%

11.6% 11.6%

Oct 2022

21.1%

60.6%

4.9%
4.9%

Apr 2023

Apr 2023

68.3%

22.0%

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

27.5%

9.1%

20.0%

2.8%

2.2%

9.1%

47.5%

5.0%

43

Rapid Re-Tenanting After Vacancies
Newly Leased and Newly Vacated Office Space (m2)
Newly Leased

Newly Vacated

Net Leased Area

11,422Average Leased Area

7.016m2

8,187(Apr 1, 2019 ~ Apr 30, 2023)

4,636

5,804

5,723

7,418

8,629

7,304

4,023
TBD1

-4,028-5,590

Average Vacated Area
-7,865m2-6,059-6,714-7,433-9,110(Apr 1, 2019 ~ Apr 30, 2023)-8,711-8,0322

April
2023

October
2023(Forecast)-10,900-12,244
April
2019

October
2019

April
2020

October
2020

April
2021

October
2021

April
2022

October
2022

Newly Leased

3.5%

4.6%

6.5%

3.2%

8.9%

4.5%

5.8%

6.5%

5.6%

TBD

Newly Vacated

3.0%

4.5%

5.9%

7.3%

9.6%

5.3%

8.6%

4.5%

6.7%

6.2%

Net Leased
Area (m2)

+608

+133

+754

-5,087-822-910-3,482+2,569-1,407TBD

1 Newly leased area for the October 2023 Period is TBD as of today, but new lease contracts for 4,918m2 of space is either in place or is expected as ofJune 1, 2023.
2 Newly vacated area for the October 2023 Period (Forecast) is based on termination notices from tenants as of June 1, 2023.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

44

Free-Rent Incentive Trends
Free Rent Incentive Trends

Rental Income Loss Due to Free Rent
(Months)

3

Tokyo Metro Area (Average)
Regional Cities (Average)

2.8(JPY million)
Loss from Free Rent

Actual Rent Income

2.7

2.3
2.2
2.0

2

122

126

75

89

6,832

6,879

6,794

6,836

6,936

Apr 2021

Oct 2021

Apr 2022

Oct 2022

Apr 2023

79

2.1
1.8

1.7
1.3

1

0

0.8

Apr 2021

Oct 2021

Apr 2022

Oct 2022

Apr 2023© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

45

Value-Add Capex to Drive Tenant Satisfaction
Capex Tailored to Tenant Needs
Maintenance Costs, Capex, and Depreciation

October 2023 Capex Plan
(JPY million)

1,200

Maintenance

CAPEX

910

910

Depreciation
972

958

900

Details

Investment

Ichigo Nishi Honmachi Building

Exterior Wall Renovation

JPY 62M

Oimachi Center Building

HVAC Upgrade

JPY 20M

Ichigo Shibakoen Building

Elevator Upgrade

JPY 18M

Ichigo Kudan 3 Chome Building

Roof Waterproofing

JPY 8M

April 2024 Capex Plan

600

955

884

828
632

300

0

Asset Name

93

82

121

129

Oct 2022

Apr 2023

Oct 2023
Forecast

Apr 2024
Forecast

Asset Name

Details

Investment

Ichigo Nishi Honmachi Building

Central Alarm System
UpgradeJPY 28M

Ichigo Hanzomon Building

Exterior Wall Renovation

JPY 27M

Ichigo Shibakoen Building

Exterior Wall Renovation

JPY 25M

Oimachi Center Building

HVAC Upgrade

JPY 20M© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

46

NOI Upside Despite Smaller Rent Gap
Approximately Half of October 2023, April 2024 Rent Renewals are
Tenants at Below-Market Rents
Distribution of Tenants by Rent Gap

Gap Between Tenant Rent and Market Rent
(Office)■ >10%■ -10% to 0%■ 0% to 10%■ Below -10%

(JPY million)

5%

All Areas

Central Tokyo

219 (22.5%)

2.20%
1.48%

207 (21.2%)
2.29%

41

0.58%

0%

54

-1.14%

51-2.01%-1.42%-2.86%-2.94%-5.98%-8.07%-5.20%-7.32%-8.84%-8.59%-10%-9.13%
Oct 2019

Apr 2020

Oct 2020

Apr 2021

Oct 2021

Apr 2022

Oct 2022

Apr 2023* Rent Gap is the difference between the total tenant rent vs the total
market rent for a standard floor plate of a building. Market rent is derived
by replacing the tenant rent with the market rent as per data provided by
CBRE, K.K.

Below-Market Rent

-5%

55
74
47

49

51

Oct 2023

Apr 2024* Based on a standard floor pate and excluding tenants that have served
notice of termination.
* Numbers in parentheses are % of total rent up for renewal in the period
as of April 30, 2023.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

47

Portfolio Growth as REIT Specializing in Mid-Size Offices
As of October 31, 2022
No. Of Assets

Total

86 assets

88 assets

Office82 assets

84 assets

Other

4 assets

4 assets

Total

JPY 209.2B

JPY 212.1B

Office

97%

97%

Other

3%

3%

Central Tokyo

55%

54%

Tokyo Metropolitan Area

25%

22%

Four Major Regional Cities

15%

18%

Other Regional Cities

6%

6%

Appraisal Value

JPY 253.1B

JPY 255.3B

Leasable Area

266,866.48m2

269,700.94m2

96.5%

95.9%

No. Of Tenants

938

998

NOI Yield

5.3%

5.4%

Portfolio Size

Area

Occupancy••

As of April 30, 2023

Portfolio percentage by area is based on acquisition price.
NOI Yield is annualized and calculated excluding assets sold in each period; NOI Yield of assets acquired in the October 2022 and April 2023 fiscal periods are
determined from the annual NOI calculated using an income approach based on appraisal value at acquisition.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

48

High Seismic Safety Level
Acquisition Guidelines− Seismic safety：Compliant with new seismic standard− Seismic PML1：Stand-alone PML of 20% or less, with a non-exceedance probability of
90% for the entire portfolio
Portfolio Assets Seismic Safety Profile (as of April 30, 2023)

Assets Built under Old SeismicStandard, but Seismic Renovation
Completed
4 Assets(Leasable Area Ratio 6.7%)

Portfolio PML

Assets Built under Old SeismicStandard, but Original
Construction Met New Earthquake
Resistance Standard2
3 Assets3.3%
as of April 30, 2023

(Leasable Area Ratio 3.2%)

Assets Built Under Old Seismic Standard, but
Seismic Renovation Completed (4 assets)
Ichigo Sakae Building, Ichigo Mita Building, Ichigo Gotanda Building,and Ichigo Higashi Ikebukuro Building

New Earthquake ResistanceStandard
79 Assets(Leasable Area Ratio 90.0%)

Assets Built Under Old Seismic Standard, but Original Construction
Met New Earthquake Resistance Standard (3 assets)2
Ichigo Ginza 612 Building, Ichigo Ofuna Building, andIchigo Nagoya Building

1 PML (Probable Maximum Loss) is the maximum expected loss from an earthquake occurring in the next 50 years, expressed as a ratio to the estimated replacement costwhere the ratio of expected loss is greater than 10%.
2 Assets evaluated as having seismic strength equivalent to the new earthquake resistance standards and for which a third-party seismic evaluation report has been obtained.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

49

Portfolio Details (1)as of April 30, 2023
Asset
Type

No.

Asset Name

O-02 Ichigo Nishisando Building

OfficeArea

Location

Acquisition
Price(JPY M)

Central Tokyo

Shibuya-ku, Tokyo

3,254

Book
Value
(JPY M)

3,330

Leasable
Area
2
(m )

Occupancy

4,523.19100%

Apr 2023 Appraisal

Oct 2022 Appraisal

Value(JPY M)

Value(JPY M)

3,260

Cap rate

3.9%

3,330

ChangeCap rate

Value(JPY M)

Cap rate

3.9%

-70

－

O-03 Ichigo Mita Building

Central Tokyo

Minato-ku, Tokyo

2,740

2,722

4,119.74

73.4%

3,640

4.0%

3,640

4.0%

－

－

O-04 Ichigo Nanpeidai Building

Central Tokyo

Shibuya-ku, Tokyo

1,920

1,880

1,925.24

100%

2,630

3.3%

2,610

3.4%

+20

-0.1%

O-05 Ichigo Hanzomon Building

Central Tokyo

Chiyoda-ku, Tokyo

1,550

1,490

2,080.37

100%

2,230

3.4%

2,130

3.5%

+100

-0.1%

O-06 Ichigo Hijirizaka Building

Central Tokyo

Minato-ku, Tokyo

1,200

1,194

1,947.90

94.1%

1,500

4.3%

1,500

4.3%

–

–

O-07 Ichigo Shibuya Kamiyamacho Building

Central Tokyo

Shibuya-ku, Tokyo

1,505

1,324

1,321.54

87.0%

1,860

3.6%

1,900

3.6%

-40

–

O-09 Ichigo Shibakoen Building

Central Tokyo

Minato-ku, Tokyo

1,100

1,089

1,602.29

86.3%

1,270

4.1%

1,270

4.1%

–

–

O-10 Ichigo Ebisu Nishi Building

Central Tokyo

Shibuya-ku, Tokyo

1,917

1,908

1,484.39

100%

2,620

3.6%

2,640

3.6%

-20

–

O-11 Ichigo Ginza 612 Building

Central Tokyo

Chuo-ku, Tokyo

1,773

1,802

1,364.56

100%

2,320

3.6%

2,320

3.6%

–

–

O-12 Ichigo Uchikanda Building

Central Tokyo

Chiyoda-ku, Tokyo

1,140

1,112

1,378.83

89.8%

1,390

4.1%

1,390

4.1%

–

–

O-14 Ichigo Yotsuya 4 Chome Building

Central Tokyo

Shinjuku-ku, Tokyo

550

494

780.64

81.8%

583

4.0%

583

4.0%

–

–

O-15 Ichigo Tameike Building

Central Tokyo

Minato-ku, Tokyo

580

496

494.14

82.8%

726

3.6%

726

3.6%

–

–

O-16 Ichigo Jimbocho Building

Central Tokyo

Chiyoda-ku, Tokyo

1,820

1,785

1,891.01

100%

2,370

3.9%

2,370

3.9%

–

–

O-17 Ichigo Hakozaki Building

Central Tokyo

Chuo-ku, Tokyo

1,150

1,125

2,389.54

100%

1,290

4.2%

1,290

4.2%

–

–

O-18 Ichigo Kudan 2 Chome Building

Central Tokyo

Chiyoda-ku, Tokyo

763

755

1,265.76

100%

1,160

4.1%

1,160

4.1%

–

–

O-19 Ichigo Kudan 3 Chome Building

Central Tokyo

Chiyoda-ku, Tokyo

844

801

1,302.43

63.2%

883

4.2%

883

4.2%

–

–

O-20 Ichigo Gotanda Building

Central Tokyo

Shinagawa-ku, Tokyo

5,060

4,769

5,346.39

89.8%

6,820

4.2%

6,780

4.3%

+40

-0.1%

O-21 Ichigo Shin Yokohama Building

Tokyo Metro Area

Yokohama

1,816

1,647

4,021.32

97.7%

1,660

4.6%

1,690

4.6%

-30

–

O-22 Ichigo Minami Ikebukuro Building

Tokyo Metro Area

Toshima-ku, Tokyo

1,460

1,333

1,491.50

100%

2,010

3.7%

1,980

3.8%

+30

-0.1%

O-23 Ichigo Nakano North Building

Tokyo Metro Area

Nakano-ku, Tokyo

764

709

1,264.11

89.0%

981

4.6%

981

4.6%

–

–

O-24 Ichigo Eitai Building

Tokyo Metro Area

Koto-ku, Tokyo

1,490

1,407

2,605.54

100%

1,470

4.5%

1,540

4.5%

-70

–

O-26 Ichigo Ikejiri Building

Tokyo Metro Area

Meguro-ku, Tokyo

2,030

1,934

2,385.69

100%

2,340

4.1%

2,320

4.1%

+20

–

O-27 Ichigo Nishi Ikebukuro Building

Tokyo Metro Area

Toshima-ku, Tokyo

639

583

1,261.91

100%

1,050

4.2%

1,050

4.2%

–

–

O-28 Ichigo Nishi Gotanda Building

Central Tokyo

Shinagawa-ku, Tokyo

765

759

1,334.68

100%

931

4.3%

911

4.3%

+20

–

O-29 Ichigo Kichijoji Building

Tokyo Metro Area

Musashino City, Tokyo

2,160

2,133

4,210.87

100%

2,870

4.6%

2,870

4.6%

–

–

O-34 Ichigo Sakae Building

Four Major Cities

Nagoya

4,705

4,711

3,928.12

97.4%

5,050

4.5%

6,070

4.7%

-1,020-0.2%

O-37 Ichigo Marunouchi Building

Four Major Cities

Nagoya

6,710

5,428

8,009.11

100%

7,960

4.0%

7,730

4.1%

+230

-0.1%

O-38 Ichigo Toyamaeki Nishi Building

Other Regional Cities Toyama City, Toyama

1,645

1,417

8,601.72

100%

1,860

5.7%

1,880

5.7%

-20

–

O-39 Ichigo Mirai Shinkin Building

Other Regional Cities Oita City, Oita

1,158

1,096

3,551.46

100%

1,400

5.7%

1,380

5.8%

+20

-0.1%

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

50

Portfolio Details (2)as of April 30, 2023
Asset
Type

OfficeNo.

Asset Name

Location

Area

Acquisition
Price(JPY M)Book
Value(JPY M)

Leasable
Area
2
(m )

Occupancy

Apr 2023 Appraisal

Oct 2022 Appraisal

Value(JPY M)

Value(JPY M)

Cap rate

Cap rate

ChangeValue(JPY M)

Cap rate

O-42 Ichigo Takamatsu Building

Other Regional Cities Takamatsu City, Kagawa

3,010

2,030

6,329.33

100%

3,990

5.9%

3,970

5.9%

+20

–

O-46 Ichigo Kanda Nishikicho Building

Central Tokyo

2,130

2,007

2,523.09

100%

3,310

3.6%

3,300

3.6%

+10

–

Chiyoda-ku, Tokyo

O-47 Ichigo Akihabara North Building

Central Tokyo

Chiyoda-ku, Tokyo

5,500

5,453

6,250.53

100%

7,780

4.2%

7,860

4.2%

-80

–

O-48 Ichigo Sakaisuji Honmachi Building

Four Major Cities

Osaka

1,940

1,688

3,729.35

93.3%

2,480

4.3%

2,470

4.3%

+10

–

O-49 Ichigo Kanda Ogawamachi Building

Central Tokyo

Chiyoda-ku, Tokyo

2,210

2,186

2,309.39

79.7%

2,400

3.9%

2,550

3.9%

-150

–

O-50 Ichigo Hatchobori Building

Central Tokyo

Chuo-ku, Tokyo

1,905

1,723

2,716.33

84.6%

2,660

4.3%

2,760

4.3%

-100

–

O-51 Ichigo Ebisu Green GlassCentral Tokyo

Shibuya-ku, Tokyo

5,900

5,738

3,159.27

100%

7,680

3.3%

7,680

3.3%

–

–

O-52 Ichigo Omori Building

Central Tokyo

Shinagawa-ku, Tokyo

3,850

3,802

3,585.93

100%

4,710

4.0%

4,700

4.1%

+10

-0.1%

O-53 Ichigo Takadanobaba Building

Central Tokyo

Shinjuku-ku, Tokyo

1,580

1,598

1,606.92

75.2%

1,940

3.8%

1,950

3.8%

-10

–

O-54 Ichigo Omiya Building

Tokyo Metro Area

Saitama City, Saitama

3,430

3,511

6,213.30

97.5%

4,300

4.9%

4,300

4.9%

–

–

1,174

1,210

2,960.81

100%

1,300

5.1%

1,310

5.1%

-10

–

2,000

2,006

2,176.47

94.3%

2,190

5.2%

2,320

5.2%

-130

–

O-55 Ichigo Sagamihara Building

Tokyo Metro Area

Sagamihara City, Kanagawa

O-56 Ichigo Ofuna Building

Tokyo Metro Area

Kamakura City, Kanagawa

O-57 Ichigo Sendai East Building

Other Regional Cities Sendai

1,840

1,544

5,205.49

100%

2,190

5.2%

2,200

5.3%

-10

-0.1%

O-58 Ichigo Kumamoto Building

Other Regional Cities Kumamoto City, Kumamoto

1,450

1,564

4,507.59

100%

1,610

5.7%

1,610

5.7%

–

–

O-59 Ichigo Jingumae Building

Central Tokyo

Shibuya-ku, Tokyo

7,200

7,414

4,510.00

100%

7,890

3.1%

7,890

3.1%

–

–

O-60 Ichigo Shibuya Dogenzaka Building

Central Tokyo

Shibuya-ku, Tokyo

3,650

3,690

2,789.86

100%

5,560

3.2%

5,530

3.3%

+30

-0.1%

O-61 Ichigo Hiroo Building

Central Tokyo

Shibuya-ku, Tokyo

3,960

3,977

3,510.44

100%

4,740

3.6%

4,740

3.6%

–

–

O-62 Ichigo Sasazuka Building

Central Tokyo

Shibuya-ku, Tokyo

4,780

4,868

6,425.29

100%

6,230

3.8%

6,240

3.8%

-10

–

O-63 Ichigo Nihonbashi East Building

Central Tokyo

Chuo-ku, Tokyo

4,700

4,314

4,216.97

100%

5,640

3.7%

5,640

3.7%

–

–

O-64 Ichigo Sakurabashi Building

Central Tokyo

Chuo-ku, Tokyo

2,500

2,533

2,971.22

100%

3,240

3.6%

3,170

3.7%

+70

-0.1%

O-65 Ichigo Shinkawa Building

Central Tokyo

Chuo-ku, Tokyo

2,360

2,385

2,312.03

100%

3,120

3.6%

3,060

3.7%

+60

-0.1%

O-66 Ichigo Kudan Building

Central Tokyo

Chiyoda-ku, Tokyo

3,190

3,268

3,090.65

100%

3,710

3.7%

3,710

3.7%

–

–

O-67 Ichigo Higashi Gotanda Building

Central Tokyo

Shinagawa-ku, Tokyo

3,660

3,634

4,548.10

100%

4,430

3.8%

4,440

3.8%

-10

–

O-68 Axior Mita

Central Tokyo

Minato-ku, Tokyo

1,800

1,693

2,369.82

100%

2,610

3.5%

2,540

3.6%

+70

-0.1%

O-69 Ichigo Higashi Ikebukuro Building

Tokyo Metro Area

Toshima-ku, Tokyo

4,570

4,618

4,437.97

87.8%

5,470

3.8%

5,470

3.8%

–

–

O-70 Koriyama Big-i (Office Section)

Other Regional Cities Koriyama City, Fukushima

1,660

1,529

3,433.07

94.1%

2,160

5.0%

2,150

5.1%

+10

-0.1%

O-71 Ichigo Kawasaki Building

Tokyo Metro Area

Kawasaki City, Kanagawa

1,750

1,815

3,871.06

87.6%

2,300

4.0%

2,290

4.0%

+10

–

O-72 Ichigo Shibuya East Building

Central Tokyo

Shibuya-ku, Tokyo

1,350

1,378

1,041.36

100%

1,620

3.3%

1,600

3.4%

+20

-0.1%

O-73 Ichigo Ningyocho Building

Central Tokyo

Chuo-ku, Tokyo

1,450

1,491

1,769.75

100%

1,680

3.8%

1,640

3.9%

+40

-0.1%

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

51

Portfolio Details (3)as of April 30, 2023
Asset
Type

OfficeNo.

Asset Name

Area

Location

Acquisition
Price(JPY M)

Book Value(JPY M)

LeasableArea(m2)

Occupancy

Apr 2023 Appraisal

Oct 2022 Appraisal

Value(JPY M)

Value(JPY M)

Cap rate

Cap rate

ChangeValue(JPY M)

Cap rate

O-74 Ichigo Nishi Honmachi Building

Four Major Cities

Osaka

2,190

2,205

6,152.00

100%

2,530

4.5%

2,520

4.5%

+10

–

O-75 Ichigo Hakata Building

Four Major Cities

Fukuoka

1,380

1,383

2,423.86

100%

1,580

4.5%

1,570

4.5%

+10

–

O-76 Ichigo Nishiki First Building

Four Major Cities

Nagoya

2,000

1,961

3,324.70

100%

2,240

4.2%

2,230

4.2%

+10

–

O-78 Ichigo Ikebukuro East Building

Tokyo Metro Area

Toshima-ku, Tokyo

3,010

2,995

3,118.69

100%

3,600

3.9%

3,520

4.0%

+80

-0.1%

O-79 Ichigo Motoazabu Building

Central Tokyo

Minato-ku, Tokyo

1,890

1,911

1,329.96

100%

2,390

3.4%

2,360

3.5%

+30

-0.1%

O-80 Ichigo Otsuka Building

Tokyo Metro Area

Toshima-ku, Tokyo

2,740

2,762

3,623.98

100%

3,240

4.0%

3,200

4.1%

+40

-0.1%

O-81 Ichigo Nagoya Building

Four Major Cities

Nagoya

3,420

3,557

4,930.30

81.6%

3,910

4.2%

3,910

4.2%

–

–

O-82 Ichigo Fushimi Building

Four Major Cities

Nagoya

2,340

2,323

4,155.60

92.2%

2,570

4.3%

2,570

4.3%

–

–

O-83 Ichigo Nishiki Building

Four Major Cities

Nagoya

1,330

1,299

2,006.78

94.3%

1,490

4.2%

1,490

4.2%

–

–

O-84 Ichigo Minami Morimachi Building

Four Major Cities

Osaka

1,040

1,088

2,521.51

100%

1,260

4.3%

1,260

4.3%

–

–

O-85 Ichigo Shibuya Udagawacho Building

Central Tokyo

Shibuya-ku, Tokyo

3,500

3,544

1,491.68

89.0%

4,180

3.0%

4,180

3.0%

–

–

O-86 Win Gotanda Building

Central Tokyo

Shinagawa-ku, Tokyo

3,100

3,102

3,689.88

100%

3,830

3.8%

3,620

3.9%

+210

-0.1%

O-87 Ichigo Hongo Building

Tokyo Metro Area

Bunkyo-ku, Tokyo

2,300

2,303

2,743.20

81.1%

2,780

4.0%

2,730

4.1%

+50

-0.1%

O-88 Oimachi Center Building

Central Tokyo

Shinagawa-ku, Tokyo

1,680

1,710

2,771.41

100%

2,100

4.0%

2,100

4.1%

–

-0.1%

O-89 Win Gotanda Building 2

Central Tokyo

Shinagawa-ku, Tokyo

3,300

3,291

3,434.69

88.7%

3,730

3.8%

3,720

3.9%

+10

-0.1%

O-90 MIF Building

Central Tokyo

Chiyoda-ku, Tokyo

2,200

2,188

1,690.27

88.3%

2,320

3.9%

2,370

3.9%

-50

–

O-91 Ichigo Uchi Honmachi Building

Four Major Cities

Osaka

1,900

1,998

3,004.07

96.1%

2,180

4.5%

2,180

4.5%

–

–

O-92 Ichigo Minami Otsuka Building

Tokyo Metro Area

Toshima-ku, Tokyo

2,780

2,875

3,129.49

100%

3,280

3.7%

3,280

3.7%

–

–

O-93 Ichigo Nogizaka Building

Central Tokyo

Minato-ku, Tokyo

3,315

3,501

2,199.35

100%

3,640

3.3%

3,620

3.4%

+20

-0.1%

O-94 Ichigo Hakata East Building

Four Major Cities

Fukuoka

2,250

2,307

2,901.99

100%

2,850

4.1%

2,800

4.2%

+50

-0.1%

O-95 Ichigo Nakameguro Building

Tokyo Metro Area

Meguro-ku, Tokyo

1,495

1,563

1,083.70

80.9%

1,580

3.6%

1,640

3.7%

-60

-0.1%

O-96 Ichigo Tachikawa Building

Tokyo Metro Area

Tachikawa City, Tokyo

3,830

3,823

4,879.78

83.1%

4,020

4.2%

4,020

4.2%

–

–

O-97 Ichigo Higashi Ikebukuro 3 Chome Building

Tokyo Metro Area

Toshima-ku, Tokyo

3,840

3,886

2,764.59

100%

3,860

3.8%

3,950

3.8%

-90

–

O-98 Ichigo Marunouchi South Building

Four Major Cities

Nagoya

1,750

1,801

1,973.27

88.3%

1,850

4.1%

1,850

4.1%

–

–

O-99 Ichigo Hakataeki Higashi Building

Four Major Cities

Fukuoka

3,500

3,507

3,596.71

96.8%

3,710

4.2%

3,630

4.4%

+80

-0.2%

O-100 Fukuoka Kensetsu Kaikan

Four Major Cities

Fukuoka

2,750

2,754

2,949.22

100%

2,880

4.3%

2,810

4.3%

+70

–

205,537

201,584

260,346.06

96.0%

248,674

Subtotal - Office249,144-470* October 2022 Appraisal Value for assets acquired in the April 2023 fiscal period show the appraisal value at time of acquisition.

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52

Portfolio Details (4)as of April 30, 2023
Asset
Type

Other

No.

Asset Name

Area

Location

Acquisition
Book Value
Price(JPY M)(JPY M)

Leasable
Area
(m 2)

Occupancy

Apr 2023 Appraisal

Oct 2022 Appraisal

Value(JPY M)

Value(JPY M)

Cap rate

Cap rate

ChangeValue(JPY M)

Cap rate

Z-09

Future IZUMIOther Regional Cities Izumi City, Osaka

1,210

1,045

3,733.66

100%

576

5.8%

576

5.8%

–

–

Z-10

Ichigo Shibuya Bunkamura Dori Building

Central Tokyo

Shibuya-ku, Tokyo

2,400

2,447

778.77

100%

3,040

3.2%

3,040

3.2%

–

–

Z-11

Twicere Yokohama Isogo (Retail Section)

Tokyo Metro Area

Yokohama

1,620

1,426

2,717.77

80.8%

1,510

5.0%

1,510

5.0%

–

–

Z-14

Ichigo Kamata Building

Tokyo Metro Area

Ota-ku, Tokyo

1,400

1,447

2,124.68

100%

1,530

4.4%

1,530

4.4%

–

–

Subtotal - Other

6,630

6,366

9,354.88

94.4%

6,656

6,656

–

Total (88 Assets)

212,167

207,951 269,700.94

95.9%

255,330

255,800-470

Reference
TK Equity
Investment

GK Kizuna1 TK Equity Interest

JPY 38M© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

53

Appendix: Mid-Size Office Investment Opportunity© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

54

Japanese Mid-Size Office Investment Opportunity (1)Rich Pool of REITable Assets
 90%+ of Japanese real estate = mid-size High liquidity

Breakdown of Buildings in Japan by Floor Area (m²)
< 500

2,000 to 5,000

1,000 to 2,000

5,000 to 10,000>10,000

Mid-Size Real Estate：94%

Broad and Deep Tenant Base
 95% of all companies have 50 employees or less
 Diverse tenant industries contributes to stable high occupancy

500 to 1,000

44%

25%

15%

10
%

3%
3%

Source: Ministry of Land, Infrastructure, Transportation andTourism (2018)

Largely Untapped by Professional Management
 High ownership by individuals and “passive owner” corporations

results in inadequate building maintenance Lacking professional building and management specifications
Breakdown of Companies by Number of Employees

Abundant Opportunities for Large-Scale Improvements Increase safety via seismic reinforcement
 Increase tenant satisfaction via value-add capex<5

6 to 20

21 to 50

> 51

% Of Companies Suited to Mid-Size Assets：96%
65%

23%

7
4%
%

Source: Small and Medium Enterprise Agency (2021)

Significant Value-Add Potential© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

55

Japanese Mid-Size Office Investment Opportunity (2)Mid-Size Office Rents More Stable Than Larger-Size Office Rents
Office Rent Trends in 5 Central Tokyo Wards (Chiyoda, Chuo, Minato, Shinjuku & Shibuya)
JPY per Tsubo (3.3m2)

60,00050,000

Grade A

40,000

Grade A-

30,00020,000

Grade B

10,000Source: CBRE

02005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Grade A refers to buildings in the 5 central wards of Tokyo (Chiyoda, Chuo, Minato, Shinjuku, and Shibuya) built no more than 11 years ago (therefore meeting current
seismic resistance standards), with leasable area greater than 21,450 square meters and total floor area greater than 33,000 square meters.
Grade A- and Grade B refers to buildings located in any of the 23 wards in Tokyo with leasable area greater than 14,850 square meters and total floor area greater than
23,100 square meters and leasable area greater than 660 square meters and total floor area between 6,600 and 23,100 square meters, respectively, and meeting current
seismic resistance standards.
© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

56

Appendix: About Ichigo Office© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

57

Specialized Office REIT
Specialized Office REIT Focusing on Mid-Size Offices, an Asset Class That
Offers Both Return Stability and Upside Potential
 Mid-size office characteristics‒ Stable cashflows supporting earnings‒ Upside earnings potential in economic upturns‒ Value-add potential due to relatively inefficient market

 Portfolio focused on Tokyo Metropolitan Area
 Driving accretive growth via value-add capex and hands-on asset management© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

58

Portfolio: 97% Office, 79% Tokyo Metropolitan Area
as of April 30, 2023
No. Of Assets
Total Acquisition PriceAppraisal Value
Leasable Area
Occupancy

88 Assets
JPY 212.2B
JPY 255.3B
269,701m2
95.9%

By Asset Type

Other
3%

Map Key
Location
Acquisition Price (JPY B)% of Portfolio

Tokyo
Metro
Area
160.9
76%

Sendai1.8
1%Nagoya22.2
10%

Office97%

By Size<JPY 1B
2%

Kansai
8.2
4%
Fukuoka
9.8
5%

JPY 1B-2B
27%

Other
8.9
4%

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

>JPY 3B
51%
JPY 2B-3B
20%

59

Highly Diversified Tenant Mix
as of April 30, 2023

Tenants by Industry

Total Number of Tenants: 997(Based on No. Of Tenants)
Education
2%
Restaurant/Hotel3%
Construction
3%

Share of Top 10 Tenants
10.7% of Leased Area
13.1% of Rental Income

Other
5%

Real
Estate4%
Finance5%Service30%

Top 10 Tenants (by Building & Leased Area)
Asset Name

Telecommunications
13%

Manufacturing
15%

Retail19%

LeasedArea(m 2)

Industry

Share

1

Ichigo Akihabara North Building

Manufacturing

6,250

2.5%

2

Ichigo Sasazuka Building

Telecommunication

3,827

1.5%

3

Ichigo Ikebukuro East Building

Service

2,964

1.2%

4

Ichigo Jingumae Building

Telecommunication

2,807

1.1%

5

Ichigo Hiroo Building

Retail

2,417

1.0%

6

Future IZUMIService

2,228

0.9%

7

Ichigo Kamata Building

Retail

1,820

0.7%

8

Ichigo Sendai East Building

Retail

1,724

0.7%

9

Ichigo Ikejiri Building

Restaurant/Hotel

1,577

0.6%

10

Future IZUMIService

1,504

0.6%

27,125

10.7%* Service: Primarily advertising, consulting, HR, accounting, legal,
beauty-related, and public entities.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Total

60

Growth Via Serving Tenants & Shareholders
Total Assets (JPY B)

4,224

Dividend (JPY)

2,508

191.0
165.6

189.8

196.9

192.5

199.9

203.2

202.3

202.3

206.1

209.2

206.1

212.1

205.4

162.7
2,014
1,904

1,706

203.0

1,923

1,930

1,964

2,255

2,150

2,163

2,230

2,132

2,185

2,052

1,740

October
April
October
April
October
April
October
April
October
April
October
April
October
April
October
April
2015
2016
2016
2017
2017
2018
2018
2019
2019
2020
2020
2021
2021
2022
2022
2023
(77 Assets) (73 Assets) (85 Assets) (82 Assets) (85 Assets) (82 Assets) (85 Assets) (85 Assets) (85 Assets) (85 Assets) (85 Assets) (86 Assets) (86 Assets) (85 Assets) (86 Assets) (88 Assets)
Accretive
PO
Transition to
Pure Office
REIT

Accretive
PO

Strategic
Restructuring

Bond
Issuance

Strategic
Restructuring

Bond
Issuance

JCR Credit
Rating A

Bond
Issuance

Bond
Issuance

Strategic
Restructuring

Strategic
Restructuring

Bond
Issuance

Share
Buyback

Bond
Issuance

Bridge Fund
TK Equity
Interest

JCR Credit
Rating A+

Strategic
Restructuring

Strategic
Restructuring

JCR Credit
Rating ADeCollateralization
Of All Loans© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

61

Acquisition-Driven Growth− Total asset acquisitions since October 2013: JPY 162.1B (expected)− JPY 88.7B (54.7%) via sponsor support
Acquisitions and Sales Since October 2013 (Cumulative, JPY B)■ Acquisition From Sponsor ■ Acquisition From Third Party■ Sale to Sponsor■ Sale to Third Party

50.9

54.4

56.3

62.4

63.9

67.7

Cumulative Total
JPY 162.1B

71.6

Acquisition
From Third
Party
73.3
(45.3%)

80.2

82.5

82.5

82.5

82.5

67.6

74.7

Acquisition
From
Sponsor
88.7(54.7%)

19.3

19.3

23.8

23.8

26.2

26.2

26.2

26.2

26.2

7.9

12.3

12.3

18.3

21.9

24.7

24.7

26.4

37.0

50.9

38.4
Acquisitions
Sales

Oct 2013~ Oct 2015

JPY 63.3B~ Oct 2021
~ Oct 2019~ Oct 2020
~ Oct 2016
~ Oct 2017~ Oct 2018
~ Apr 2023
~ Oct 2022
Dec 2020
Nov 2022
Feb 2021
Apr&May 2018
Dec 2018
Nov 2016
Apr 2020
Apr&May 2016
Dec 2014
Sale toAcquisition From
Public Offering Public Offering Acquisition From Acquisition & Acquisition & Acquisition From Acquisition From
Third Party
Third Party
Third Party
Third Party
Acquisition &Third Party
Acquisition &
Sale
Sale
Sale
Dec 2022
Sale
Apr&May 2017
Jun 2022
Sep 2018
May 2019
May 2015
Sale toAcquisition & Acquisition From Acquisition &Acquisition From
Public Offering
Third Party
Third Party
Third Party
Sale
Sale
Jan 2023
Sept 2015
Acquisition From
Transition to Pure
Office REIT
Sponsor© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

62

Ichigo Branding: Safety, Quality, Design & Tenant Service
Improve the safety, quality, and design of assets via Ichigo’s
architectural and engineering capabilities to support high tenantsatisfaction© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

63

Ichigo Branding: Ichigo Layout Office & Ichigo Lounge
Provide Differentiated Ichigo Layout Office and Ichigo Lounge High-Quality
Office Spaces
Ichigo Layout Office (Example: Ichigo Jimbocho Building, Chiyoda-ku, Tokyo)
 Generating substantially higher rents reflecting higher value for tenants
 Supporting needs of startups and accommodating expansion by offering flexible layout

Floor Plan

Flexible Layout

Windows & Natural Light

Work Space

Conversation Space

Ichigo Lounge (Example: Ichigo Higashi Ikebukuro Building, Toshima-ku, Tokyo)
 Subdivided a vacant floor to create several private offices and a shared-use space for the exclusive use of tenants
 Generated significantly higher rents by offering attractive shared-use space

Ichigo Lounge Reception
Ichigo Lounge Space© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

64

Appendix: Other© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

65

J.League Shareholder Program
Represents Two Firsts for a Shareholder Program in Japan− First Japanese company to include not just its own shareholders, but also theshareholders of the REITs and solar power producer that it manages, in its
shareholder program (73,000 shareholders total)− First company to offer shareholders free tickets to every J.League game at every
J.League club

Ichigo is deepening its partnership with the J.League and working tofurther Ichigo’s mission of promoting local community developments.
FY23/2 Special Holiday Gift
Gift set featuring food products
selected by Ichigo-sponsoredsoccer club, Tegevajaro Miyazaki

Ichigo J.League Shareholder Program Website Landing Page
© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Products from store at Ichigo
Miyako City’s Miyazaki ThanksMarket66

Ichigo Office’s Sponsor: Ichigo (2337)
Core Businesses: Asset Management, Sustainable Real Estate, Clean Energy‒ Manages Ichigo Office (8975), Ichigo Hotel (3463), and Ichigo Green (9282)‒ Sustainable Real Estate business adds value to existing buildings bydrawing upon its real estate technologies and expertise‒ Deeply committed to CSR and Sustainability
Hiromi Miyake

Ichigo(Weightlifting)(TSE Prime 2337)

Ichigo Office (8975)

Ichigo Preserves andImproves Real Estate

The word “Ichigo” comes from the ancientJapanese proverb, Ichigo Ichie, literally meaning“One lifetime, one encounter.” The phrase was
first used by a 16th century master of the tea
ceremony, Sen no Rikyu. He called upon his
disciples to give total focus and sincerity to eachact of the tea ceremony, because that particular
moment will only exist once and must be fully
lived and realized.
Ichigo embraces the Ichigo Ichie philosophy ofsincerity and service, and works to build strong
long-term relationships to support the success of
our clients, shareholders, and all stakeholders.

AssetManagement

Ichigo Investment Advisors

Ichigo Hotel (3463)
Ichigo Green (9282)

Sustainable
Real Estate

Clean Energy
Other

Ichigo Estate

CentroIchigo Owners

Storage Plus

Ichigo Marché

Ichigo Animation

Miyako City

OneFive Hotels

Ichigo ECO Energy

Ichigo Si© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

67

Sponsor/Asset Manager/REIT Relationship

Sponsor

Ichigo (TSE Prime 2337)
100% Subsidiary

Sponsor Support
Value-Add Capabilities

Asset Manager

Ichigo Investment Advisors

Financial Support(Asset Warehousing)

Asset Management

TSE-Listed
Investment
Corporations

Ichigo Office(8975)

 Specializes in mid-size offices

Ichigo Hotel(3463)

 Specializes in lodging-focused hotels

Ichigo Green(9282) Solar power producer

 Focused on the Tokyo Metropolitan Area
 88 assets, JPY 212.2B (as of Apr 30, 2023)

 Listed in November 2015 25 hotels, JPY 54.7B (as of Apr 30, 2023)

 Listed in December 2016 15 solar plants, JPY 11.4B (as of Apr 30, 2023)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

68Sustainable Growth Via Sponsor Support
Pursuing Long-Term Sustainable Growth by Leveraging Ichigo’s MarketLeading Value-Add Capabilities
Buy

Sell

Ichigo Office

Ichigo(8975)(Prime 2337)

ThirdParty
Investors

Buy

Preserve and improve real estateleveraging
Ichigo’s value-add capabilities

Real
EstateValue-Add

Buy/SellAsset Warehousing
Sell

Ichigo Office Sourcing Strengths
・ Sourcing Diversity: Ichigo Office proprietary sourcing routes + Ichigo sponsor network
・ Strong Sponsor Support: Ichigo assets fully available to Ichigo Office for acquisition
・ Stable Sourcing: Backed by Ichigo value-add capabilities, so less sensitive to market environment© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

69

Share Price (November 1, 2011 to April 30, 2023)
Source: Bloomberg(JPY)

150,000

Trading Volume

Ichigo Office

TSE REIT Index(Shares Traded)

Post-Merger High (closing): JPY 119,300 (Feb 21, 2020)
Post-Merger Low (closing): JPY 25,310 (Nov 22, 2011)
April 2023 Period Average Daily Volume: 6,966 shares (as of April 30, 2023)

Public Offering
JPY 83,167
Dec 3, 2014

125,000

Public Offering
JPY 89,212
May 1, 2015

50,000Public Offering
JPY 79,365
May 23, 2016

Public Offering
JPY 62,595
May 27, 2013

100,000

60,00040,000MergerJPY 33,500 (closing)Nov 1, 2011

75,00030,00050,00020,00025,00010,0000
2011年2012/12012年2013/12013年 2014/1
2014年
2011/112015年
2015/1

2016年
2016/1

2017年
2017/1

2018年
2018/1© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

2019年
2019/1

0
2020年
2021年
2021年
2022年
2022/12023/12021/1
2020/170

Shareholder Composition
as of April 30, 2023

Major Shareholders

Shareholdings by Shareholder TypeNo. OfShares

Name

Share

Foreign Corporations & Individuals

Non-Financial Domestic Corporations

Domestic Financial Institutions

Domestic Individuals

1

Ichigo Trust Pte. Ltd.

490,500

32.4%

2

Custody Bank of Japan, Ltd.,
Trust Bank

253,75916.8%

728,954 shares(48.2%)

757,134 shares(50.0%)

734,210 shares(48.5%)

3

The Master Trust Bank of Japan,
Trust Bank

146,915

9.7%

12,062 shares(0.8%)

11,150 shares(0.7%)

28,237 shares(1.9%)

4

Nomura Trust & Banking Co., Ltd.
Investment Trust Acccount53,184

3.5%

5

BERKELEY GLOBAL, LLC

46,7993.1%

639,799 shares(42.3%)

612,978 shares(40.5%)

583,855 shares(38.6%)

6

SMBC Nikko Securities Inc.

28,167

1.9%

132,552 shares(8.8%)

132,105 shares(8.7%)

167,065 shares(11.0%)

7

STATE STREET BANK WEST CLIENT TREATY 505234

22,301

1.5%

Apr 2022(1,513,367 shares)

Oct 2022(1,513,367 shares)*Apr 2023(1,513,367 shares)*

BNYM AS AGT/CLTS NON TREATY JASDEC

22,2309Mitsubishi UFJ Morgan Stanley Co., Ltd.

10 Ichigo Inc.
Total

*

8

* No. Of Shares Outstanding

20,482

1.5%

Shareholders by Shareholder Type

1.4%

16,5471.1%

1,100,884

72.7%

Domestic Individuals
Domestic Financial Institutions
City banks, trust banks
Regional banks
Other (including securities companies)
Non-Financial Domestic Corporations
Foreign Corporations & Individuals
Total© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Apr 30, 2023
Apr 30, 2022
Oct 31, 2022
Shareholders Shareholders Shareholders
Share15,485
15,604
19,493
97.3%
57
53
55
0.3%
7
5
5
–
9
9
8
–
41
39
42
0.2%
203
209
210
1.0%
249
259
274
1.4%
15,994
16,12520,032
100%

71

Ichigo Office Overview
Investment Corporation

as of May 1, 2023

Name

Ichigo Office REIT Investment Corporation

Securities Code8975

Address

1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo

Executive Director

Keisuke Chiba

Portfolio Assets

88 Assets

Portfolio Value

JPY 212.1B (based on acquisition price)

Fiscal Periods (Semi-Annual)November – April; May – OctoberAsset Management Company
Name

Ichigo Investment Advisors Co., Ltd.

President & Executive Officer

Hiroshi Iwai

Registration & Membership

Financial Instruments Dealer License (Investment Management Services,
Investment Advisory & Agency Services, and Type II Financial Instruments
Services): Minister of Finance, Kanto Financial Bureau #318

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

72

Disclaimer
These materials are for informational purposes only, and do not constitute or form a part of, and should not be construed as,
an offer to sell or a solicitation of an offer to buy any securities of Ichigo Office REIT Investment Corporation (“Ichigo Office”).
These materials may contain forward-looking statements regarding the intent, belief or current expectations of management of
Ichigo Office with respect to financial condition and future results of operations. These statements are based on certain
assumptions founded on currently available information. Accordingly, such statements are subject to risks, uncertainties andassumptions and there is no assurance as to actual financial conditions or results of operations. Actual results may vary fromthose indicated in the forward-looking statements. Accordingly, please refrain from solely relying on these statements.
These materials have been created by the management of Ichigo Office and Ichigo Investment Advisors Co., Ltd. (IIA) with thebelief that the information contained is accurate. However, there is no assurance given as to the accuracy, certainty, validity or
fairness of any such information. Please note that the content of these materials is subject to revision or retraction without priornotice.
This document is a translation. If there is any discrepancy between the Japanese version and the English translation, theJapanese version shall prevail. No copying or reproduction of these materials or part of these materials is allowed withoutobtaining prior consent from Ichigo Office and IIA.

Make The World
More Sustainable

Ichigo Office IR Desk (8975)
TEL：+81-3-3502-4891
E-mail: IR_Office@ichigo.gr.jp
www.ichigo-office.co.jp/en
Ichigo is Japan’s first zero-carbon listed real estate company.
We are taking responsibility for our environmental footprint by offsetting ourcarbon emissions and investing in low-carbon technologies such as solar energy.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

73