Creating peace of mind through honest and committed management.

June 16, 2015

FINANCIAL REPORT FOR THE FISCAL PERIOD ENDING APRIL 2015
(November 1, 2014 - April 30, 2015)
Ichigo Real Estate Investment Corporation (“Ichigo REIT” Tokyo Stock Exchange, 8975)
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-reit.co.jp/english
Ichigo Real Estate Investment Advisors Co., Ltd. (Ichigo REIT Asset Management Company)
Representative: Wataru Orii, President & Representative Statutory Executive Officer
Inquiries: Masanori Kubota, Statutory Executive Officer (Finance, Accounting)Telephone: +81-3-3502-4891
Submission of Financial Report (Yuka Shoken Hokokusho): July 24, 2015 (expected)
Dividend Payment: July 22, 2015 (expected)
Supplemental Material to Financial and Business Results: Yes (Corporate Presentation)
Financial and Business Results Briefing: Yes (for institutional investors and analysts)
1. Financial Results for the Fiscal Period Ending April 2015
(Monetary figures are rounded down to the nearest million yen)

(1) Earnings(million yen; period-on-period change)

Operating
Revenue

ChangeOperating
ProfitChangeRecurring
ProfitChangeNet
IncomeChangeApril 2015

5,020

8.8%

2,267

6.0%

1,005

(28.7%)

704(50.0%)

October 2014

4,615

(0.5 %)

2,139(2.2%)

1,410

7.9%

1,409

7.9%

Net Income per Share(yen)

Ratio of Net Income
to Equity

Ratio of Recurring Profit
to Total Assets

Ratio of Recurring Profit
to Operating Revenue

April 2015

634

1.1%

0.8%

20.0%

October 2014

1,373

2.3%

1.1%

30.6%

(2) Dividends
Dividend per
Share(not including
dividends in excessof earnings)

Total
Dividends

Dividend per Sharein Excess of
Earnings

Total Dividends in
Excess of Earnings

PayoutRatio

Ratio of
Dividends to
Net Assets(yen)(million yen)

(yen)(million yen)

(%)

(%)

April 2015

1,603

1,811

0

0

257.1

2.7

October 2014

1,547

1,587

0

0

112.6

2.6

(Note 1) The October 2014 dividend reflects a 177 million yen dividend reserve reversal and thus differs fromNet Income.
(Note 2) The April 2015 dividend includes a dividend reserve reversal of 1,107 million yen and thus differsfrom Net Income.
(Note 3) The Payout Ratio is rounded down to one decimal point. The April 2015 payout ratio reflects the newshare issuance and is calculated as follows: Payout Ratio = Total Dividends / Net Income x 100

(3) Assets and Equity
Total Assets(million yen)

Net Assets(million yen)

Equity Ratio(%)

Net Assets per Share(yen)

April 2015

136,160

68,56250.4

60,657

October 2014

123,668

61,09849.4

59,531

Cash Flow fromOperating Activities

Cash Flow from
Investment Activities

Cash Flow from
Financing Activities(4) Cash Flow(million yen)(million yen)(million yen)

Cash and Cash
Equivalents at End of the
Period(million yen)

April 2015

18,531(25,920)

10,355

13,453October 2014

2,923

(578)

(2,054)

10,485

2. Earnings Forecast for the Fiscal Period ending October 2015 (May 1, 2015 to October 31, 2015)(million yen; period-on-period change)

October 2015

Operating
Revenue

ChangeOperating
IncomeChangeRecurring
ProfitChangeNet
IncomeChange

6,175

23.0%

2,843

25.4%

1,828

81.9%

1,828

159.5%(yen)

Dividend per Share(not including dividends in excess of earnings)

October 2015

(Note 1)
(Note 2)

1,670

Dividend per Share in Excess of Earnings
0

The forecast Net Income per share for October 2015 is 1,290 yen.
The October 2015 dividend includes a dividend reserve reversal of 543 million yen and thus differsfrom Net Income.

2

3. Other(1) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement(i) Changes Accompanying Amendments to Accounting Standards:(ii) Changes Not Listed in (i):(iii) Changes in Accounting Estimates:(iv) Retrospective Restatement:

None
None
None
None

(2) Number of Shares Issued and Outstanding(i) The number of shares issued and outstanding (including treasury shares) was 1,026,323 shares atthe end of October 2014 and 1,130,323 shares at the end of April 2015.
(ii) There were no treasury shares at either the end of October 2014 or at the end of April 2015.
Completion Status of Auditing ProceduresThis document is not subject to the auditing requirements set forth in the Financial Instruments and Exchange
Law of Japan. The auditing procedures in accordance with those requirements have thus not been completed asof the date of the publication of this document.
Appropriate Use of Performance Forecasts and Other Matters of Special Note
The forecasts presented above are current figures based on certain preconditions. Accordingly, the actual
operating revenue, operating income, recurring profit, net income, dividend per share, and dividend per share inexcess of earnings may vary due to changes in circumstances. Moreover, these forecasts should not be construed
as a guarantee of such performance or results.
For details on preconditions, please refer to the “Preconditions for Earnings Forecast of the Fiscal Period ending
October 2015” on page 4.
This English version is a translation of the original Japanese notice and is provided solely for informational
purposes. Should there be any discrepancies between this translation and the Japanese original, the latter shallprevail.

3

Preconditions for Earnings Forecast for the Fiscal Period ending October 2015
Item

Preconditions

PeriodMay 1, 2015 – October 31, 2015 (184 days)

Portfolio Assets

 76 assets in total. 65 assets as of April 30, 2015 and the 12 assets to be newly acquired, minus 1 asset
to be sold, as announced in the release “Asset Acquisitions and Sale” on April 9, 2015. The forecast
assumes there will be no additional acquisitions or sales before the end of October 2015.
 The number of assets may change due to acquisitions or sales.

Number of Shares The forecast assumes 1,416,323 shares issued and outstanding as of June 16, 2015.

Operating Revenue Rent revenue is calculated conservatively based on lease contracts that are in effect as of April 30,
2015 while taking into consideration such factors as historical rents, the competitiveness of theproperties, and market conditions.

Operating Expenses

 Among rental activity expenses, Ichigo REIT’s principal operating expenses and expenses other thandepreciation are calculated based on historical data while taking into consideration variable expenses.
 The anticipated amount of property tax and city planning tax is 389 million yen. The prorated property
tax and city planning tax related to these acquisitions will be included in the acquisition cost and shallbe excluded from operating expenses.
 The amount for building maintenance and repair expenses is estimated to be 101 million yen.
However, expenses for each period could differ significantly from these estimated amounts for reasons
including the variability of maintenance and repair expenses, costs due to unexpected building damage,etc.
 Service provider expenses including property management fees, etc., are estimated to be 556 million
yen for the April 2015 period.
 Depreciation has been calculated using the straight-line method. Depreciation is calculated byincluding the depreciation for future additional capital expenditures in the amortization amount.
Depreciation of 825 million yen has been anticipated for the April 2015 period.
 Actual operating expenses may differ significantly from assumptions due to unforeseeable factors.

Non-operating
Expenses Interest expenses of 517 million yen are anticipated.
 Borrowing-related expenses of 463 million yen are anticipated.
 Expenses related to the new share issuance of 35 million yen are anticipated.

Borrowings

 Ichigo REIT’s balance of loans payable stands at 59,580 million yen as of April 30, 2015.
 22,500 million yen of new borrowing occurred on May 7, 2015.
 1,419 million yen from the sale of one asset on May 8, 2015 will be used for partial loan prepayment.
 SMBC Syndicate Loan I (4,047 million yen) comes due during the October 2015 period. The forecast
assumes a refinancing of the same amount.

Dividend per Share Dividends are based on the assumption that distribution will comply with the dividend distribution
policy stipulated in Ichigo REIT’s Articles of Incorporation.
 The dividend for October 2015 is assumed to be 2,371 million yen, which is the total amount ofretained earnings of 1,828 million yen plus a dividend reserve reversal of 543 million yen.
 The dividend per share is subject to change due to factors such as changes in rental revenue associatedwith tenant turnover, the occurrence of unexpected maintenance and repair costs, fluctuations ininterest rates, as well as additional share issuance.

Dividend in Excess of
Earnings per Share Ichigo REIT does not plan on making any dividend distribution in excess of earnings per share or
retained earnings.

Other Performance forecasts are based on the assumption that impactful revisions will not be made to laws
and ordinances, the tax system, accounting standards, listing rules, and rules of the Investment Trusts
Association, Japan, etc.
 Performance forecasts are also based on the assumption that there will be no unexpected materialchange in general economic trends, real estate market conditions, etc.

4Financial Statements(1) Balance Sheet(Thousand yen)
October 2014(as of October 31, 2014)

April 2015(as of April 30, 2015)

AssetsCurrent assets
Cash and deposits

4,961,374

6,339,011

Cash and deposits in trust

5,556,132

7,146,522

Operating accounts receivable

49,14736,814

Prepaid expenses

258,899

259,445

4,936

2,840

10,830,491

13,784,634

8,691,090

8,473,551

OtherTotal current assets
Fixed assets
Property, plant, and equipment
Buildings
Accumulated depreciation(764,033)(851,537)

Buildings, net

7,927,057

7,622,013

Structures
Accumulated depreciation
Structures, net

35,88232,545(13,659)(15,029)

22,222

17,515

263,899

261,009

Accumulated depreciation(62,048)(71,268)

Structures, net

201,850

189,741

58,48256,743

Accumulated depreciation(21,782)(23,816)

Fixtures, net

36,70032,926

19,555,504

18,825,582-

124

Machinery and equipment

Fixtures

Land
Construction in progress
Buildings in trust

28,462,782

29,266,605

Accumulated depreciation(3,079,859)(2,563,456)

Buildings in trust, net

25,382,922

26,703,148

Structures in trust
Accumulated depreciation
Structures in trust, net

72,64952,575(15,393)(9,136)57,25543,439Machinery and equipment in trust

255,300

333,189

Accumulated depreciation(75,535)(96,927)

Machinery and equipment in trust, net

179,765

236,262

Fixtures in trust
Accumulated depreciation
Fixtures in trust, net

677,481

254,089(209,765)(92,729)

467,715

161,359

54,108,394

63,414,448

3,206

2,120

107,942,596

117,248,682

Leasehold rights in trust

4,494,579

4,494,579

Total Intangible assets

4,494,579

4,494,579

Land in trust
Construction in progress in trust
Total property, plant, and equipment
Intangible assets5

(Thousand yen)
October 2014(as of October 31, 2014)

April 2015(as of April 30, 2015)

Investments and other assets
Tenant leasehold and security deposits

15,227

15,227Long-term prepaid expenses

375,687

603,770

Other
Total investments and other assets
Total Fixed assets
Total assets
Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable, etc.
Accrued consumption taxes, etc.
Advances received
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Asset retirement obligations
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Shareholders’ capital
SurplusCapital surplus
Dividend reserve
Unappropriated retained earnings /loss
Total surplus
Total shareholders’ equity
Total net assets
Total liabilities and net assets

6

9,482

13,587400,397

632,584

112,837,572

122,375,846

123,668,064

136,160,481

188,335
17,345,410
278,806
44,607605
133,230
749,636
13,57618,754,207

334,839
6,025,171
366,502
9,622
605
73,465
801,153
18,604
7,629,962

38,591,161
1,771,515
3,447,888
4,799
43,815,364
62,569,572

53,555,141
1,723,922
4,683,727
4,815
59,967,607
67,597,570

25,782,839

34,130,503

20,566,420
13,338,498
1,410,732
35,315,652
61,098,491
61,098,491
123,668,064

20,566,420
13,160,756
705,230
34,432,407
68,562,911
68,562,911
136,160,481

(2) Income Statement(Thousand yen)
October 2014
(May 1, 2014 to
October 31, 2014)

April 2015
(November 1, 2014 toApril 1, 2015)

Operating revenue
Rental revenue
Other rental revenue

4,080,532

4,386,495

477,585

483,980

Gain on sales of real estate

57,807150,311

Total operating revenue

4,615,924

5,020,788

1,982,518

2,133,086

383,510484,527

Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee

9,463

9,420

Administrative service fees

33,56529,316

Directors’ compensation

5,929

5,040

Other operating expenses

61,641

91,439Total operating expenses

2,476,627

2,752,829

2,139,296

2,267,958

Operating profit
Non-operating income
Interest income

1,018

1,153

Reversal of distribution payable

548

852

Insurance Income

2510Interest on tax refund

384

-

Other

-

142

1,977

2,159

Interest expenses

457,393

409,090

Borrowing related expenses

273,341806,962

Total non-operating income
Non-operating expenses

Share issuance expenses-

48,576

730,735

1,264,629

1,410,538

1,005,488

Impairment loss-

300,406

Total extraordinary losses-

300,406

1,410,538

705,082605

605

Total non-operating expenses
Recurring profit
Extraordinary loss

Income (losses) before income taxes
Income taxes – current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings/loss

7

605

605

1,409,933

704,477799

753

1,410,732

705,230

(3) Statement of Shareholders’ Equity
October 2014 (May 1, 2014 to October 31, 2014)(Thousand yen)
Shareholders’ equity

Surplus
Shareholders’capitalBalance at start of the period

25,782,839

Total
shareholders’ equity

Balance atstart of theperiodCapitalsurplusDividend
reserve

Unappropriatedretainedearnings/loss

20,566,420

13,613,797

1,307,064

35,487,282

61,270,121

61,270,121(275,298)

275,298―――(1,581,563)(1,581,563)(1,581,563)(1,581,563)

Total
surplus

Changes during the period
Reversal of dividend reserve
Dividends from surplus
Net income
Total changes during the period
Balance at end of the period

1,409,933

1,409,933

1,409,933

1,409,933――(275,298)

103,668(171,630)(171,630)(171,630)

25,782,839

20,566,420

13,338,498

1,410,732

35,315,652

61,098,491

61,098,491

April 2015 (November 1, 2014 to April 30, 2015)(Thousand yen)
Shareholders’ equity

Surplus
Shareholders’capitalBalance at start of the period

25,782,839

CapitalsurplusDividend
reserve

Unappropriatedretainedearnings/loss

20,566,420

13,338,498

1,410,732

Total
surplus35,315,652

Total
shareholders’ equity

Balance atstart of theperiod61,098,491

61,098,491

8,347,664

8,347,664

Changes during the period
Issuance of new shares

8,347,664

Reversal of dividend reserve(177,741)

Dividends from surplus
Net income

177,741―――(1,587,721)(1,587,721)(1,587,721)(1,587,721)

704,477

704,477

704,477

704,477

Total changes during the period

8,347,664―(177,741)(705,502)(883,244)

7,464,419

7,464,419

Balance at end of the period

34,130,503

20,566,420

13,160,756

705,230

34,432,407

68,562,911

68,562,911

8

(4) Cash Flow Statement(Thousand yen)
April 2015
(November 1, 2014 toApril 1, 2015)

October 2014
(May 1, 2014 to
October 31, 2014)
Cash flows from operating activities
Income before income taxes

1,410,538

705,082

Depreciation and amortization

605,639

667,704-

48,576

Impairment loss-

300,406

Interest income(1,018)(1,153)

Interest expenses

457,393

409,090

Decrease (increase) in operating accounts receivable(23,159)

12,333

Decrease (increase) in prepaid expenses

51,810(545)

Decrease (increase) in long-term advance charges

24,828(228,083)

Decrease (increase) in deposit paid

387,267-

Increase (decrease) in accrued consumption taxes

81,067(59,765)

Increase (decrease) in operating accounts payable(22,278)

37,944

Increase (decrease) in accounts payable – other(10,186)

87,696

Increase (decrease) in advances received

69,84451,517-

958,825

Decrease by sale of property, plant, and equipment in trust

377,532

15,944,448

Other, net(13,915)

41,376

Subtotal

3,395,363

18,975,454

Share issuance expenses

Decrease by sale of property, plant, and equipment

Interest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

1,018

1,153

(471,917)(444,076)

(605)

(605)

2,923,859

18,531,926

Cash flows from investment activities
Purchase of property, plant, and equipment(38,552)(31,609)

Purchase of property, plant, and equipment in trust(534,296)(27,029,280)

Increase in tenant leasehold and security deposits

57,362

20,839Decrease in tenant leasehold and security deposits(47,793)(79,173)

Increase in tenant leasehold and security deposits in trust

94,962

1,537,017

Decrease in tenant leasehold and security deposits in trust(110,432)(338,390)

Net cash provided by (used in) investment activities(578,749)(25,920,596)

Cash flows from financing activities
Increase in long-term loans payable

6,500,000

31,610,500

Decrease in long-term loans payable(6,973,312)(27,966,758)-

8,299,087

Dividends paid

(1,581,233)(1,586,939)

Net cash provided by (used in) financing activities(2,054,545)

10,355,889

Net increase (decrease) in cash and cash equivalents

290,564

2,967,220

Cash and cash equivalents at beginning of the period

10,195,262

10,485,827

Cash and cash equivalents at end of the period

10,485,827

13,453,047

Proceeds from issuance of shares

9