Make The World
More Sustainable[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, 2024
IssuerIchigo Office REIT Investment Corporation (“Ichigo Office,” 8975)
2-6-1 Marunouchi, Chiyoda-ku, Tokyo
Representative: Keisuke Chiba, Executive Director
www.ichigo-office.co.jp/en
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Hiroshi Iwai, President
Inquiries: Yuji Kamo, Head of Ichigo OfficeTel: +81-3-4485-5231

Upward Earnings Forecast Revision for the October 2024 Fiscal Period
Ichigo Office is revising up its October 2024 fiscal period earnings forecasts
announced in the April 26, 2024 release “Upward Earnings Forecast Revisions forthe April 2024 Fiscal Period & October 2024 Fiscal Period.” There is no change tothe April 2024 earnings forecast.
1. October 2024 Earnings Forecast Revision(JPY million)
Dividend
in ExcessofEarnings(JPY)

Operating
Revenue

Operating
ProfitRecurring
ProfitNet
IncomeDividendper Share(JPY)Previous Forecast (A)8,910

4,841

4,026

4,026

2,662–New Forecast (B)

9,214

4,978

4,062

4,062

2,680–

Difference (B) - (A)+304+137+35+35+18–% Change+3.4%+2.8%+0.9%

+0.9%

+0.7%

–

Net Income per Share: JPY 2,612 (1,554,934 shares outstanding at period-end)
Note: The forecasts presented above are based on the preconditions set out below in“Preconditions for the October 2024 Earnings Forecast.” The actual operating revenue,operating profit, recurring profit, net income, and dividend may vary due to changes incircumstances. These forecasts should therefore not be construed as a guarantee of suchresults. Ichigo Office will revise the forecast should a substantial discrepancy emerge
between the forecast and actual operating results.

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to an upward forecast revision, and has not been
prepared for the purpose of solicitation of investment.

12. October 2024 Earnings Forecast Revisions Rationale
Ichigo Office is revising up its October 2024 fiscal period earnings forecast to reflect
forecast increases in operating revenue, operating profit, recurring profit, net income,and dividend as a result of the asset acquisitions announced in today’s releases“Issuance of New Shares via Third-Party Allotment,” “Acquisition of Six Office
Assets,” and “New Loans for Acquisition of Office Assets.”
The assets to be acquired are mid-size office assets with earnings upside, with three
assets located in central Tokyo and three in central Fukuoka. Ichigo Office’s sponsor
Ichigo (2337) is strengthening its commitment to Ichigo Office’s growth and drivingshareholder value. Of the assets being acquired, Ichigo Office is acquiring the Ichigo
Akihabara East Building and Ichigo Hakata Meiji Dori Building by exercising thepreferential negotiation right it received to acquire underlying assets of the bridge fundcreated with the support of Ichigo and its subsidiary Ichigo Estate, and is acquiring theIchigo Hakata Gion Building, Ichigo Tenjin North Building, Ichigo Gotanda West
Building, and Ichigo Otemachi North Building from Ichigo Estate.
As a result, operating revenue, operating profit, recurring profit, net income, anddividend are expected to increase by JPY 304 million (+3.4% vs. previous forecast),
JPY 137 million (+2.8%), JPY 35 million (+0.9%), JPY 35 million (+0.9%), and JPY 18(+0.7%), respectively.
Ichigo Office has a target of consistently generating total returns to shareholders ofgreater than 8% per annum, and believes that the acquisition of high-quality mid-size
office assets with earnings upside and increasing asset values via value-add capex isessential to achieve this target.
In November 2023, Ichigo Office announced its policy to proactively deploy value-add
capex to differentiate and increase the competitive advantage of its mid-size office
portfolio.1 As a result, in the current April 2024 fiscal period there are Ichigo Officeassets which have benefited from this value-add capex and are attracting new tenants atrents significantly higher than pre-existing rents.
The asset acquisitions are being partially financed by a third-party share issuance at theprevious day’s closing share price. This approach to raising equity has the advantage
over public offerings that typically involve share price risk and discounted issuances(along with underwriter fees). The share price of this issuance has been fixed at the last
trading price, so there is no risk of the issuance price being pushed down postannouncement and share dilution increasing, as can happen with public offerings.
Ichigo Office will continue to execute on organic and acquisition-driven growthstrategies and financing to maximize shareholder value.
1

Please refer to the November 13, 2023 release “Bond Issuance to Ichigo First Callable
Unsecured Investment Corporation Bond (Subordinated and Limited to Qualified
Institutional Investors)” for details.
www.ichigooffice.co.jp/news/news_file/file/IchigoOffice_20231113_Bond_Issuance_ENG.pdf

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to an upward forecast revision, and has not been
prepared for the purpose of solicitation of investment.

2Preconditions for the October 2024 Earnings Forecasts
Period October 2024: May 1, 2024 – October 31, 2024 (184 days)

Number ofAssets Total 92 assets. 87 assets as of today plus six assets to be acquired on May 30,
2024 minus one asset from the sale of the Ichigo Kudan 2 Chome Building on
October 31, 2024

Number ofShares 1,513,367 shares issued and outstanding as of the date of this report. 1,554,934
shares assuming all new 41,567 shares will be issued via third third-party allotment
approved at today’s board meeting.

OperatingRevenue Rental income is calculated conservatively based on lease contracts that are in effectas of today while taking into consideration such factors as historical rents, thecompetitiveness of the properties, and market conditions.
 Utility income: JPY 648 million
 Total occupancy: 97.0% as of October 31, 2024
 Gain on sale of the Ichigo Kudan 2 Chome Building: JPY 1,068 million
Gain on sale estimate calculated as the Sale Price minus Book Value, Brokerage
Fees, Ichigo Investment Advisor’s Performance Fee, and other transaction expenses.

OperatingExpenses• Depreciation: JPY 943 million
Depreciation has been calculated using the straight-line method and includes thedepreciation of forecast future capital expenditures.
• Utilities expenses, including RE100 renewable energy-related expenses: JPY 685
million• Property, city planning, and depreciable asset taxes: JPY 743 million. Prorated
property and city planning taxes related to acquisitions will be recorded in theOctober 2025 fiscal period.
• Building maintenance and repair expenses: JPY 139 million. However, expenses
may differ significantly from these estimated amounts for reasons including thevariability of maintenance and repair expenses, one-time costs due to unexpectedbuilding damage, etc.
• Service provider expenses, including property management fees: JPY 770 million• NOI & Dividend Performance Fee: JPY 666 million• Rental expenses, Ichigo Office’s principal operating expenses (other thandepreciation, see above), are calculated based on historical data adjusted for any
anticipated changes.
• Actual operating expenses may differ significantly from these assumptions due tounforeseeable factors.

Non-OperatingExpenses• Expenses related to the new share issuance approved at today’s board meeting: JPY22 million• Interest expenses on loans and bonds: JPY 604 million• Other borrowing-related expenses: JPY 283 million

Interest-Bearing
Liabilities• Loans and bonds: JPY 123,757 million as of October 31, 2024 after new loans of
JPY 8.5 billion on May 30, 2024 to finance the asset acquisitions

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to an upward forecast revision, and has not been
prepared for the purpose of solicitation of investment.

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Dividend The dividend forecasts assumes that dividends will comply with the dividend
distribution policy stipulated in Ichigo Office’s Articles of Incorporation.
 Total dividends are forecast to be JPY 4,168 million (unappropriated retained
earnings (i.e., Net Income) of JPY 4,063 million plus JPY 105 million of negative
goodwill amortization, subject to J-REIT conduit requirements).
 The dividends are subject to change due to changes in circumstances such as asset
acquisitions and dispositions, tenant turnover, unexpected maintenance and repair
costs and other expenses, changes in interest rates, and the issuance of new shares.

Dividend in
Excess ofEarnings Ichigo Office does not plan on paying any dividend in excess of earnings.

Other These forecasts assume that there are no material revisions to laws and regulations,the tax system, accounting standards, listing rules of the Tokyo Stock Exchange,
and rules of the Investment Trusts Association, Japan, and no material changes inthe state of the economy and real estate market conditions.

Disclaimer: This release has been prepared for the purpose of announcing to the public certain matters relating to an upward forecast revision, and has not been
prepared for the purpose of solicitation of investment.

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