Asset Acquisitions and Sale
November 15, 2013

Ichigo Real Estate Investment CorporationIchigo Real Estate Investment Advisors Co., Ltd.

© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

www.ichigo-reit.co.jp/english

© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

Creating peace of mind throughhhonestt andd committed
itt d management.
t© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

Ichigo REIT Updated Growth Strategy
Stage I/II
2011/10

Stage III2013/10

Stage IV

2014/45th period post merger

2014/10

6th period post merger

GoalEnhance Profitability

2015/47th period post merger

Stage V
2015/10

8th period post merger

Increase Size & Scale■ Financing Strategy
・Strengthen financial base via POS e g e lendere de base・Strengthen
・Obtain credit rating

PllanAccretiv
ve Grow
wth CycleeFounda
ation for Growth

Obtain Credit Rating■ Internal Growth Strategy
・Strategic leasing of individual
propertiesp y value enhancements
・Property
・Promote Ichigo brand■ External Growth Strategy
・Continuously acquire properties
through PO・Improve portfolio with asset sales
・Deploy Sponsor’s warehousing
capability■ Financing Strategy
・Obtain credit rating
S e g e financiala c a base via
a POO・Strengthen
・Increase potential for new borrowing(collateral consolidation and noncollateralized borrowing)■ Internal Growth Strategyplease conditions for assets
・Improvewith growth potential
・Promote Ichigo brand■ External Growth Strategy
・Acquire properties via new borrowing
・Increase asset size while balancing
growth and stability・Deploy Sponsor’s warehousing
capability© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

2016/49th period post merger

2016/1010th period post merger

Further Increase Dividend■ Financing Strategy
・Consider bond issuancep o e ccredit
ed ratinga g・Improve■ Internal Growth Strategy
・Improve profit structure as asset size
increases
・Strengthen Ichigo brand awareness■ External Growth Strategy
・Acquire properties via new borrowing
・Increase asset size while balancing
growth and stability4

Acquisitions and Sale

© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

5

Acquisitions and Sale Overview• Improve portfolio quality with fully-occupied, prime location assets (3 centralTokyo, 1 Yokohama)• Increase portfolio size (+2 billion yen)
• Improve financial base (LTV lowered by 3.6%, strengthen lender base)Acquisition Properties
Property Name

TypeAddress

Acquisition Price(million yen)Apprasal Value(million yen)

NOI Yield

NOI Yield After
Depreciation

Occupancy

Building Age (years)

Ichigo Kanda Ogawamachi
Building (O-49)

OfficeChiyoda-ku, Tokyo

2,210

2,280

5.1%

4.4%

100.0%

20.2

Ichigo Hacchobori Building(O-50)

OfficeChuo-ku, Tokyo

1,905

2,190

6.2%

4.9%

100.0%

3.8

Ichigo Shibuya BunkamuraDori Building (Z-10)

Other(Retail)Shibuya-ku, Tokyo

2,400

2,540

4.4%

4.3%

100.0%

1.5

Twicere Yokohama Isogo(Z-11)

OthOther(Retail)IIsogo-ku,k Yokohama
Y k hCity, Kanagawa

1,620

1,670

6.1%

4.8%

100.0%

2.3

8,135

8,680

Average 5.4%

Average 4.6%

Average 100.0%

Tota lAverage 7.3

Sale Property
Property Name
COI Shinbashi Building(O 01)(O-01)

TypeOffice

Address

Sale Price(million yen)Apprasal Value(million yen)Book Value(million yen)

Capital Gain(million yen)

Building Age (years)

Minato-ku,, Tokyoy

6,151

5,980

6,105

4553.0© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

6

Acquisition: Ichigo Kanda Ogawamachi Building (O-49)
Acquisition Price

2,210 million yen

Appraisal Value

2,280 million yen

NOI Yield5.1%

NOI Yield After
Depreciation

4.4%

Asset TypeOfficeAddress

Kanda-Ogawamachi, Chiyoda-ku, Tokyo

Access2-minute walk from Ogawamachi
gStationon the Toei Shinjuku Line and3-minute walk from Shin Ochanomizu
Station on the Tokyo Metro Chiyoda Line

Leasable Area

2,217.44 m2Structure

S / SRC

Construction Date

Sep 1993

Occupancy

100.0%

B1F / 10F

Location・ Convenient train station access.
・ Commercial district with a concentration of retail andoffice buildings with strong tenant demand.
Features・ Location directly facing the main street and architectural
glass façade.
・Nationwide chain of men’s
men s suit shops occupies B1 to 2F
2F.

© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

To be replaced7

Acquisition: Ichigo Hatchobori Building (O-50)
Acquisition Price

1,905 million yen

Appraisal Value

2,190 million yen

NOI Yield

6.2%

NOI Yield After
Depreciation

4.9%

Asset TypeOffice

Address

Shintomi, Chuo-ku, Tokyo

Access3-minute walk from Hatchobori Stationon the JR Keiyo Line and Tokyo Metro
Hibiya Line and 6-minute walk fromShintomicho Station on the Tokyo MetroYurakucho Line

Leasable Area

2,697.18 m2StructureSConstruction DateJan 2010

Occupancy

100.0%

8FLocation
・ Conveniently located from stations on the JR Keiyo
Line, Tokyo Metro Hibiya Line, and Yurakucho Line.
・ Within walking distance to the major business districts
Marunouchi, Otemachi, Nihonbashi, and Ginza.
Features・ An architectural glass curtain wall and an entrance hallwith
ith ttwo-storytceilings.
ili・ Each floor has a well-configured 120 tsubo floor plate
and uncommonly high ceilings.

© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

8Acquisition: Ichigo Shibuya Bunkamura-Dori Building (Z-10)
Acquisition Price

2,400 million yen

Appraisal Value

2,540 million yen

NOI Yield

4.4%

NOI Yield After
Depreciation

4.3%

Asset Type

Other (Retail)

Address

Udagawa-cho, Shibuya-ku, Tokyo

Accessy Station on
3-minute walk from Shibuya
the JR Yamanote Line, Tokyu Toyoko
and Denentoshi Lines, Keio InokashiraLine, and Tokyo Metro Ginza Line

Leasable Area

778.77 m2Structure

S / RC

Construction DateMay 2012

Occupancy

100.0%B1F / 8F

Location
Station,・ The property is located to the west of Shibuya Station
one of Tokyo’s most vibrant large-scale retail andshopping areas.
Features・ Occupies a highly visible corner of Bunkamura-Dori, abustling main street.
・ BoastsBt a uniquei
aluminuml icurtaint i wallll ddesigned
id ttoattract a wide range of tenants.

© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

9Acquisition: Twicere Yokohama Isogo (Z-11)
Acquisition Price

1,620 million yenAppraisal Value

1,670 million yen

NOI Yield

6.1%NOIO Yield AfterfDepreciation

4.8%

Asset Type

Other (Retail)

AddressMori, Isogo-ku, Yokohama City,Kanagawa

Access2-minute walk from Isogo Station on theJR Negishi Line

Leasable Area

2,717.77 m2

Structure

RCConstruction Date

Jul 2009

Occupancy

100.0%

B1F / 8F

Locationg area,, a bedroom
・ Located in the Yokohama Isogo
community serving Central Tokyo and Yokohama. The
west side of Isogo Station has a concentration ofcommercial buildings.
・ Direct pedestrian access from Isogo Station.
Features
・ The property consists of ownership of the B1
B1- 3F retailfloors, and the current tenants include retail shops, aclinic, and banks.
・ A long-term fixed lease with a 1F supermarket.

© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

10Acquisitions and Sale Portfolio Outcome+8 billion yen(4 assets)
Ichigo Kanda Ogawamachi
Building-6 billion yen (1 asset)
COI Shinbashi Building

Ichigo Hatchobori Building

Portfolio Size
112 billion yen(68 assets)

Ichigo Shibuya BunkamuraDori Building
Twicere Yokohama Isogo

4 assets +8 bil yen(Average Age 7 years)

1 asset -6 bil yen

Portfolio Size
114 billibillion yen(71 assets)(Age 53 years)

Replaced Assets to Improve
Portfolio Quality
October 2013

Portfolio

Dec 10, 2013((Acquisitioncqu s t o viaa PO)O)

Apr 30, 2014
(Sale)(Sae)

・Replace assets and increase portfolio size
・Lower building age

After the Transactions

Improve Portfolio Quality
Focus on Profitability

Efffects

・New borrowing and prepayment of existing loanst lowertol
LTV andd iimprove llenderd bbaseFinancial

Improve LTV for Future Collateral
Consolidation and Non-Collateralized
Borrowing

Obtain Credit Rating© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

11

Diversified Lender Base
• Refinancing with Japanese megabanks• SMBC now Ichigo REIT’s biggest lender(As of October 31, 2013)
Mizuho Bank
2%
Shinsei Trust *2
2%
KagawaBank
2%
MetLifeTokyo Star Alico
Bank3%
5%

Shinsei Trust *1
5%
Prudential LPS
6%
Mizuho Trust
6%(As of April 30, 2013)

ORIX Bank2%

GE JapanCorporation
21%

SMBC
17%

Mizuho Bank
2%
ORIX Bank
Shinsei Trust *22%
2%
KagawaBank2%
MetLifeAlico
Shinsei 3%
Trust *1
5%
Tokyo StarBank
5%

Prudential LPS
6%

Shinsei Bank
9%
Aozora Bank
10%
Resona Bank
9%

Mizuho Trust
7%
New Loan
7%
Shinsei Bank
10%

SMBC
18%

GE JapanCorporation
12%
Aozora Bank
10%
Resona Bank
10%

※1: Source of fund is an Investment LPS managed by AXA Real Estate Investment Managers Japan KK※2: Cash funding provided by Ichigo Group© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

12Growing Dividend
Steadily Increasing Dividend via Growing Economies of Scale

April 2013 Actual

October 2013 Forecast

1,494 yen

1,490 yen

October 2013 Revised Forecast

April 2014 Forecast

1,530 yen

1,530 yen

One-Off Income

One-Off Income

1st PO Increased
Dividend

1,466
1466yen

3rd Period
Post-Merger

Acquisitions

1,490
1490yen

4th Period
Post-Merger

1,510yen

4th Period
Post-Merger© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

1,530yen

5th PeriodPost-Merger
13MEMO© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

14

Disclaimer
These materials are for informational purposes only, and do not constitute or form a part of, and should not be construed as, anoffer to sell or a solicitation of an offer to buy any securities of Ichigo Real Estate Investment Corporation (Ichigo REIT). You
should consult with a representative of a securities firm if you intend to invest in any securities of Ichigo REIT.
These materials may contain forward-looking statements regarding the intent, belief or current expectations of management ofI hi REIT withIchigo
ith respectt tot financial
fi
i l condition
diti andd ffuture
tresults
lt off operations.
tiTheseThstatementst tt are based
bd on certaint i
assumptions founded on currently available information. Accordingly, such statements are subjects 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.
y the management
gof Ichigo
g REIT and Ichigo
g Real Estate Investment Advisors Co.,, Ltd.
These materials have been created by(IRE) with the belief 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 prior notice.
No copying or reproduction of these materials or part of these materials is allowed without obtaining prior consent from Ichigo
REIT and IRE.

Contact:

Ichigo REIT IR Desk
TEL：03-3502-4891
FAX：03-3502-4894
IR REIT@ichigo-holdings
IR_REIT@ichigo
holdings.co.jp
co jp
www.ichigo-reit.co.jp/english
Ichigo Group is Japan’s first zero-carbon listed real estate company. We aretaking responsibility for our environmental footprint by offsetting our carbon
emissions as well as working with organizations to invest in low-carbon
technologies.
© 2013 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

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