Ichigo REIT April 2014 Fiscal Period
Corporate Presentation
June 17, 2014

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

© 2014Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

www.ichigo-reit.co.jp/english

© 2014 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© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

Growth Strategy Progress Growth Strategy Roadmap
 Revenues, Net Income, and Dividend All Beat Forecast
 8C
Consecutiveti P
Periodsi d off Di
Dividend
id d G
Growthth – No.
N 1 vs. All JJ-REITs
REIT
 96% Occupancy
 2nd Accretive Follow-On Public Offering Improved Portfolio Quality
 Unrealized Portfolio Gains: Appraisal Value > Book Value Organic Growth Strategy- Proprietary Leasing Capability- New Tenant Leases to Increase NOI- Operational Improvements- Systematic CAPEX- Across-the-Board Actions to Drive Profitability
 External Growth Strategy- Strong Acquisition Pipeline Financial Strategy- Strengthened Financial Base- StrengthenedStthd LenderL d B
Base – SMBC N
Now M
Main
i L
Lenderd- Decreased Cost of Debt
 October 2014 Dividend Forecast
 October 2014 On-Going Basis Dividend

Appendix: Loan Details / Leasing & Portfolio Data / About Ichigo REIT
© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

5

Growth Strategy Progress© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

6

Growth Strategy Road Map
Stage I/II
2011/10

Stage III2013/10

Stage IV

2014/45th period post merger

2014/10

6th period post merger

Goal

Enhance Profitability

2015/47th period post merger

Stage V
2015/10

8th period post merger

2016/49th period post merger

2016/1010th period post merger

Increase Size & Scale
Further Increase Dividend■ Financing Strategy
・Strengthen financial base via PO
S e g e lendere de base・Strengthen
・Obtain credit rating

Pllan

Accretivve Grow
wth CycleeFoundaation 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© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

■ 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 stability

7

Revenues, Net Income, and Dividend All Beat Forecast
April 2014 Dividend: 1,541 yen (+4 yen vs. March 2013)(million yen)

Category

Oct 2013
ActualApr 2014
ActualInitial Forecast

Difference

Major Factors for Variation
Other rental revenue: +45(Changes in water, heating, and light income,fees from contract breaches/terminatioins)

Operating Revenue

4,572

4,637

4,590

+47

Operating Income

2,293

2,187

2,205

-18

Ordinary Income

1,490

1 307
1,307

1 300
1,300

+7
7

Increase in rental expenses: -36(Changes in water, heating, and light expense)
Other rental expenses: -27(Consumption tax not subject to tax reduction due to sale of
COI Shinbashi Building)+7

Decrease in operating expenses: -25(Financing expenses: +2, Expenses on issuing shares: +23)

Net Income

Dividend per Share

1,489

1,306

1,299

Newly reserved 54 mm yen of capital gains and used
329 mm yen of existing dividend reserve
reserve, resulting in a
net dividend reserve decrease of 275 mm yen(Dividend Reserve: 13,613 million yen as of Apr. 2014)

1,537 yen

1,541 yen

1,530 yen

+11 yenNo. of properties

68

71

－

－

－

N off ttenants
No.
t

497

520

－

－

－

Leasable area

167,869 m

2

170,445 m

－

－

－

5.6%

5.5%

－

－

－

NOI yield

2© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

88 Consecutive Periods of Dividend Growth – No. 1 vs. All J-REITs

737 yen(*)

April 2010899 yen((*))

October 2010979 yen
(*)

1,031
yen
(*)

April 2011

October 2011

1,219
yen

April 2012

1,387
yen

October 2012

1,494
,
yen

1,537
yen

1,530
yen

April 2013

October 2013

April 2014
(Forecast)

1,541
yen
y

April 2014
(Actual)* Adjusted to reflect stock split on November 1, 2011

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

9

96% Occupancy
Occupancy and Rent per Tsubo
(yen)

100%
Average Rent (O+Z)

98.3%
98
3%
98.1%

97.4%

Average Rent (R)

94.7%
93.2%

Office

96.3%
92.3%
90.5%

Residence

98 2%
98.2%

98 0%
98.0%

95.6%

95.2%

95.1%
94.6%

94.7%
94.5%

24,000
97.9%
96.2%
96.0%
95.5%

20,000

90%

Other
Total

16,00014,00013,90013,90013,70013,70080%
11,90011,70011,70011,70012,00070%

12,0008,000

No. of properties
April 2012

October 2012

April 2013

October 2013

April 2014

Office

41

41

40

41

42

Residence

18

18

18

18

18

Other

8

8

8

9

11

Total

67

67

66

68

71

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

10

2nd Accretive Follow-On Public Offering••

Higher Porfolio Quality and Financial Stability
Oct. 2013

Apr. 2014

Difference

Lower LTV(Book Value)

%
48.8%

45.3%
%

-3.5%
%

Higher Occupancy

95.2%

96.0%

+0.8%

Lower Building Age (years)

20.9

18.6

-2.3

Bigger Portfolio (million yen)
(Total Acquisition Price)

112,366

114,391+2,025Acquired Assets (Dec. 10, 2013)
Property Name
Ichigo Kanda
Ogawamachi Building(O-49)
Ichigo Hatchobori
Building(O-50)
Ichigo Shibuya
Bunkamura-dori Building((Z-10))
Twicere Yokohama Isogo(Retail Section) (Z-11)

Type

AddressNOI Yield (*2)

NOI Yield After
Depreciation

Occupancy

OfficeChiyoda-ku Tokyo
Chiyoda-ku,

2 210
2,210

2 280
2,280

5 1%
5.1%

4 4%
4.4%

100 0%
100.0%

OfficeChuo-ku, Tokyo

1,905

2,190

6.2%

4.9%

100.0%

Other(Retail)

Shibuya-ku, Tokyo

2,400

2,540

4.4%

4.3%

100.0%

Other(Retail)

Isogo-ku, Yokohama
City, Kanagawa

1,620

1,670

6.1%

4.8%

100.0%

8,135

8,680

Average
5.4%

Average
4.6%

Average100.0%

Total•

Acquisition Price Appraisal Value(*1)(million yen)(million yen)

Sold Asset ((Apr.
p 30,, 2014))
Property Name
COI Shinbashi Building(O-01)Type

OfficeSelling PriceAppraisal Value(*3)

Profit of Sale(million yen)(million yen)(million yen)

6,151

6,040

54

Address

Minato-ku, Tokyo(*1) Appraisal value at the time of acquisition (*2) NOI is the direct capitalization NOI vs. appraisal value at acquisition (*3) As of the end of theOctober 2013 fiscal period© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

11

Improved Portfolio Quality
As of November 1, 2011
(at the Merger)

Items

As of April 30, 2014

As of October 31, 2013

Total

71

68

71

Office45

41

42

Residence

18

18

18

Other

8

9

11

Total

107 978
107,978

112 366
112,366

114 391
114,391

Office74,32577,50475,509Residence

20,00520,00520,005

Other

13,647

14,857

18,877104,902109,305

113,034-2,685-1,745+12

175,984.91 ㎡

167,869.53 ㎡

170,445.35 ㎡

Occupancy

91.6%

95.2%

96.0%

NOI Yield

5.7%

5.6%

5.5%

LTV (Based on Book Value)

49.1%

48.8%

45.3%

LTV (Based on Appraisal Value)

55 7%
55.7%

54 5%
54.5%

49 9%
49.9%

20.5

20.9

18.6

# of
AssetsAcquisition Price(million yen)Appraisal Value(million yen)
Unrealized Gains / Losses(million yen)
Leasable Area

Average Age (years)© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

12Unrealized Portfolio Gains: Appraisal Value > Book Value
Unrealized gains turn positive: 12 million yen(million yen)

140,000

2.0%
End-of -term Book Value
End-of -term Appraisal Value
Depreciation Rate

0.0%

130,000

0.0%
-1.6%

120,000
-3.0%

-2.0%

-2.8%

-3.9%

111,050

110,000
104,143
100,000

100,101

104,164

113,022 113,034
109,305-4.0%

103,310101 087
101,087

100,369-6.0%

90 00090,000-8.0%
8 0%80,000-10.0%
April 2012

October 2012

April 2013

October 2013

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

April 201413

Organic Growth Strategy

Proprietary Leasing CapabilityStrengthening leasing via joint work with Ichigo Group’s Real Estate Services
Division Direct leasing via specialized asset teams
 Strengthened relationships with brokers and other intermediaries
 Customized leasing reflecting the specific characteristics of each asset

Ichigo REIT

Property Management
Company
Leasing contact

Asset Management
Company

Contract advising(Ichigo(I
hi R
Reall E
Estatet t
Investment)

Ichigo Group Holdings

Active tenantdevelopment

Real Estate Services(Office, residence, and retail)New gglobal tenant acquisitionq Specialized global leasing team Native English services focused on the specialized needs of global businesses operating in Japang LayoutyOffices tailored to g
global businesses to speedpmove-in and lower tenant costs
 Ichigo© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

14

Organic Growth Strategy

New Tenant Leases to Increase NOI
Case 1. Pagoda Asakusa (Retail)New contract at 10% higher rent as a result of researching the tenant needs inthe target
g area Conducted on-street interviews to distil local area needs
 Made sales calls with detailed proposals to target companies
 Brought in hot yoga studio via direct leasing

Case 2. Ichigo Ginza 612 Building (Office)Changed retail tenant mix, anticipating
redevelopment in the area

Ichigo Ginza 612 Building & Redevelopment of Neighboring Area
Ichigo Ginza 612
Building

 Area has high future potential
 New contract with restaurant at 26% higher rent

Gi
Ginza
6-chome
6 hDistrict
Di t i t 10 C
Category
t
1U
Urban
b
Redevelopment Project© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

15

Organic Growth Strategy

Operational Improvements
Case 3. Ichigo Nishisando Building (Office)
Increased Occupancy by 12.4%
Oct. 2012 81.2% → April 2014 93.6% via new lease of 2,151.5㎡
 Added value— Renovated common spaces on vacant floors (restroom, office kichenette, elevator hall)— New building and tenant signage— RenovatedRt d exteriort i wallsll andd updatedd t d airi conditioning
diti i systemst More aggressive selling— Private room viewings after value-add renovations— Provided detailed asset information to brokers to support their sales efforts— Joined building viewings to meet potential tenants in person
Refurbishment of the common area

New building signage© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

16

Organic Growth Strategy

Systematic CAPEX

Systematic CAPEX within depreciation allowance High-return value-add projects that bring out the special characteristics of each asset— Renewed façades, new signage, LED light implementation, etc.

(mm yen)

700

Change in CAPEX

CAPEXⅡ

600

591

CAPEXⅠ
Depreciation

514

Special entrance sign
(Burg Omori )

555
510

506

500

External LED lightinggg(Fiesta Shibuya)

400

28
38
300

61
200

58

60

320
100

208

171

355

152

0
Apr. 2012(Actual)Oct. 2012(Actual)Apr. 2013(Actual)Oct. 2013(Actual)Apr. 2014(Actual)CAPEXⅠ：Mid-long term building/facility maintenance
CAPEXⅡ：Value-add to mprove competitiveness (includes earthquake-resistant construction)© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

17

Organic Growth Strategy

Across-the-Board Actions to Drive ProfitabilityMore profitable serviced apartment master leases
Ichigo Serviced Apartments Ginza (former B-Site Ginza EAST) Aiming for increased profitability by changing master lease contracts from fixed-rent contracts tomore profitablefpass-through contracts.
 Striving to win more long-stay customers from abroad with an eye towards further globalization ofcompanies in Tokyo and the Tokyo Olympic Gamespof business opportunitiesppin accordance with the implementationpof the Act on National
 Expansion
Strategic Special Zones (a special provision of the Hotel Business Law)
 Opened in January 2014 after refurbishment and changing the building name to Ichigo Serviced
Apartments Ginza

Lower-cost, higher-quality building maintenance

Ichigo Serviced Apartments Ginza Ad

 Changed building maintenance companies for 30 assets
since 20132013, cutting 19 million yen per year Ichigo Group company hired for 24 of the 30 assets to drive both
higher quality and lower cost Striving for further improvements in management quality© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

18

External Growth Strategy

Strong Acquisition PipelineSponsor Ichigo Group Holdings (IGH) increasing support backed by 16.5 billion yen
public offering 6.1 billion yyen expectedpto be used for bridge
g funds for Ichigo
g REIT asset acquisitionsq IGH real estate investment in FY14/2 expanded to 47 billion yen 5 assets (totaling 12.4 billion yen) out of 7 Ichigo REIT acquired in 2013 were via IGH bridge funds



Ichigo Group proprietary acquisition channels very effective amidst competition
 Ichigo REIT asset management very active acquisition activity— Considered 1,600
1 600 assets in the past year
year, 370 assets in the 3 months from March to May 2014
2014,
60% of which came through Ichigo's proprietary channels
 Focusing on acquisition via proprietary channels and direct negotiation to increase speed and certainty— REIT asset manager acquired 8 assets worth 14.3 billion
yen in the 3 months from March to May 2014

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

19

Financial Strategy

Strengthened Financial Base
Increasing financial stability via refinancing and POs
 Also working towards cross-collateralization and decollateralization, which increaseacquisitionqcapacity,py lower debt costs, and strengthengcredit ratingg
2nd Accretive PO

Actions in
April 2014
period→ Partial repayment ofexisting loans

Results

LTV leveling acrossloan portfolio

Sale of COI
Shinbashi Building→ Partial repayment
p yofexisting loans

Strengthened lenderbase

New lenders via
refinancing

Lowered debt cost

Lowered debt cost

CrossCollateralization
Lowered debt cost

Acquire credit
ratingDecollateralization© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

20

Financial Strategy

Strengthened Lender Base – SMBC Now Main Lender

As of April 30
30, 2014

As of October 31,
31 2013
Shinsei Trust *2
2%

Kagawa Bank
2%
MetLife Alico
3%

ORIX Bank
2%

Shinsei Trust *2
2%
Kagawa Bank
2%

Fukuoka Bank
2%

ORIX Bank
2%

MetLife Alico
3%

GE JapanCorporation
21%

Tokyo Star Bank
5%
Shinsei Trust *1
1
5%

Shinsei Trust *1
5%

SMBC
21%

Tokyo Star Bank
5%

Prudential LPS
6%
Mizuho Bank
2%
Mizuho Trust
7%

SMBC
17%

Prudential LPS
6%

Aozora Bank
12%

Mizuho Bank
3%
Mizuho Trust
7%

Shinsei Bank
9%

Aozora Bank
10%
Resona Bank
9%

GE JapanCorporation
12%

Resona Bank
8%
Shinsei Bank
10%

1: Source of fund is an Investment LPS managed by AXA Real Estate Investment Managers Japan KK
2: Source of funds is Ichigo Group© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

21

Financial Strategy

Decreased Cost of Debt
Reducing cost of debt via repayment of higher cost existing loans
Average debt cost: -0.11% vs. October 2013
2.80%
2.62%

2.62%

Syndicated loans (Term Loans 1&2) fromSMBC and Mizuho Trust

2.60%
M
Merger（Nov 2011）

Syndicated loans from
Aozora Bank

2.40%
2.35%
2.34%
2.26%

2.20%

2.00%

2.23%

Comprehensive
Refinancing

Decreased overall
cost of debt by
0.93%

Sale of COI Shinbashi
Building (April 2014)

1.88%

1.82%

1.81%

1.80%

1.80%

1.78%

1.78%

1 69%
1.69%

1.60%
1st Accretive Follow-On
Public Offering June 2013)

1.40%
October 2011

April 2012

October 2012

2nd Accretive Follow-On
Public Offering (Nov 2013)

April 2013

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

October 2013

April 201422

October 2014 Earnings Forecast(million yen)
Category

Operatingpg Revenue

Apr. 2014
Actual (A)Oct. 2014
Forecast (B)(B) - (A)

4,637

4,531

(106)

Operating Expenses

2,449

2,419

(30)

Operating Income

2,187

2,112

(75)

Non-Operating Income

2

3

+1

Non-Operating Expenses

883

632

(251)

Ordinary Income

1,307

1,483

+176

Net Income

1,306

1,482

+176

275

90

(185)

1,581

1,572

(9)

1,541 yen

1,530 yen

Dividend Reserve Reversal

Total Dividend
Dividend

Major Factors for Variation in Net Income
Increase due to Acquisitions: +78, Increase in Number of Ichigo Assets: +75,
Decrease due to Sales of Shinbashi Asset: -205,, Decrease in Sales Profit: -54
Increase in Expenses on Ichigo Assets: -25, Decrease due to Sales of Shinbashi
Asset): +61, Increase due to Asset Acquisition in June 2013: -33, Increase in Asset
Acquisition in December 2013: -47, Decrease in Changes inNumber of Ichigo
Assets: -7)
Decrease in SG&A (d(duee to Sales of Shinbashi Asset)
Asset): +55

Decrease in Interest Expenses due to Repayment of Existing Loans andRefinancing: +73
Decrease in Financing-related Expense due to Repayment of Existing Loans: +150
Decrease in Expenses to Issue Shares: +26(Oct.2014 Fiscal Period) Profit from Sales of Ibaraki: 30; Profit from Sales of
Shinbashi: 54; Other:6)-© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

23

October 2014 On-Going Basis Dividend
On-going dividend decreased due to sale of COI Shinbashi Building
Working to recover ASAP via a broad array of NOI-increasing activities
April 2014 Actual
On-Going Basis-1 yen

1,220
1
220
yen

Net Profit Per ShareExcluding Capital Gains

1,540 yen

1,530 yen

Early
Termination
Penalty
Income,Original State
Repair Income,
etc.

+321円

Dividend
Reserve for
One-Off P&L(including
capital gains
and PO-related
expenses)

October 2014 Forecast
On-Going Basis+88 yenDividend
Reserve for
One-Off P&L(including
capital gains
and PO-related
expenses)

April
2014
(Actual)

1,541
yen

Divident Per Share

1,444
yen

On-Going Basis
Dividend

Net Profit Per ShareExcluding Capital Gains

October
2014(Forecast)

1,530
yen

Dividend Per Share

On-Going Basis
Dividend* On-Going Basis Dividend: Dividend excluding the impact of one-off income and expenses including early termination penalty income
and tenant “return to original state” repair income© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

24Appendix: Loan Details and Leasing & Portfolio Data

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

25

April 30, 2014 Loan Details
As of April 30, 2014

Further room to lower debt costs
Borrowing

LenderBalance(million yen)

Borrowing Rate

Drawdown Date

Maturity Date

5 219
5,219

1 60269%
1.60269%

August 31
31, 2012

February 27
27, 2015

5,013

1.31182%

May 09, 2012

April 30, 2015

6,912

1.21182%January 31, 2013

October 31, 2015

GE Japan Loan

Aozora Bank, Ltd.; Shinsei Bank, Limited; ORIX Bank
Corporation
Sumitomo Mitsui Banking Corporation;
Mizuho Trust & Banking Co., Ltd.; Aozora Bank, Ltd.;
Shinsei Bank, Limited; Resona Bank, Limited.
Sumitomo Mitsui Banking Corporation; Mizuho Bank,
Ltd.; Mizuho Trust & Banking Co., Ltd.; Resona Bank,
Limited; Aozora Bank, Ltd.; The Tokyo Star Bank,
Limited; ORIX Bank
GE Japan Corporation

6,500

2.43786%

November 30, 2010

November 30, 2015

Kagawa Bank Loan

The Kagawa Bank, Ltd.

1,372

1.41727%

November 30, 2010

November 30, 2015

1,100

2.85000%

January 30, 2013

November 30, 2015

5,442

1.91575%

May 09, 2012

April 30, 2017

6,912

1.64777%

January 31, 2013

October 31, 2017

4,884

1.74777%

January 31, 2013

November 30, 2017

3 383
3,383

1 76429%
1.76429%

M h 18March
18, 2013

M h 16March
16, 2018

3,681

1.79372%

June 03, 2013

May 31, 2018

Aozora Bank Syndicate Loan
SMBC & Mizuho Trust Bank
Syndicate Loan I (Term Loan 1)
SMBC
Syndicate Loan I (Term Loan 3)

Shinsei Trust & Banking Co., Ltd. (funded by Ichigo
Shinsei Trust Loan
Group)
Sumitomo Mitsui Banking Corporation;
SMBC & Mizuho Trust Bank
Mizuho Trust & Banking Co., Ltd.; Aozora Bank, Ltd.;
Syndicate Loan I (Term Loan 2)
Shinsei Bank, Limited; Resona Bank, Limited.
Sumitomo Mitsui Banking Corporation; Mizuho Trust &SMBC
Banking Co., Ltd.; Resona Bank, Limited; The Tokyo
Syndicate Loan I (Term Loan 4)
Star Bank
Bank, Limited
Shinsei Bank, Limited; MetLife Alico, Prudential
Mortgage Asset Holdings 1 Japan LPS; Shinsei Trust &Shinsei Bank Syndicate Loan I
Banking Co., Ltd. (funded by Investment LPS managed
by AXA Real Estate Investment Managers Japan KK)
Prudential Mortgage Asset Holdings 1 Japan LPS;
Shinsei Trust & Banking Co., Ltd. (funded by
Shi
ShinseiiB
BankkS
Syndicatedi t L
Loan II
Investment LPS managed by AXA Real Estate
Investment Managers Japan KK)
Sumitomo Mitsui Banking Corporation; Shinsei Bank,SMBC Syndicate Loan II (Term Loan 1)
Limited; Resona Bank, Limited.; Aozora Bank, Ltd.
Sumitomo Mitsui Banking Corporation; Mizoho Bank;SMBC Syndicate Loan II (Term Loan 2)
Shinsei Bank;; Aozora Bank
Resona Bank Syndicate Loan
Resona Bank; The Bank of Fukuoka

3,990

1.46856%

December 10, 2013

November 30, 2018

2,000

1.11182%

April 30, 2014

April 30, 2019

Total

56,4091.68855%© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

26

Expansion in Net Leased Area
Lease Turnover as of April 2014
Asset Type

Contract
terminations

UpwardFlat
New contracts

Downwar

No.

Leased Area

Rent
(for entire period)

Change from
Previous Rent

Office + Other

21

3,270 ㎡

-83 mm yen－

Residence

58

1,880 ㎡

-47 mm yen

－

Total

79

5,150 ㎡-130 mm yen－

Office + Other

7

745 ㎡

+22 mm yen

10.2%

Residence

18

697 ㎡

+17 mm yen

2.9%

Total

25

1,442 ㎡

+39 mm yen

6.8%

Office + Other

7

1,187 ㎡

+20 mm yen－

Residence

8

261 ㎡

+6 mm yyen

－

Total

15

1,448 ㎡

+26 mm yen－

Office + Other

10

2 000 ㎡
2,000

+38 mm yen

-28
28.0%
0%

Residence

35

1,039 ㎡

+26 mm yen

-4.8%

Total

45

3,039 ㎡

+64 mm yen-20.0%© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

27

Decreased Free Rent Incentives
Change in Average Number of Months Offered as Free Rent
(Office + Other)

Change in Leased Area (Office + Other)as a Result of New Contracts and Contract Terminations
10 00010,000100 0%
100.0%

6.0
Average of Metropolitan Area

Contract Terminations
8,000

7,914

New Contracts

98.0%

Occupancy Rate

Average of Regional Cities

5.0
5.0

6,171
6,000

4,000

95 0%
95.0%
93.9%

3,852

5 084
5,084
94.7%

95 6%
95.6%

3,932

2,000

96.0%

40
4.0

4.0
94.0%

92.0%

3.9
3.9

3.1

3.1

3.0

3.6

91 5%
91.5%

25
2.5

0
（㎡）

90.0%
13th Period(2012/4)

14th Period(2012/10)

15th Period(2013/4)

16th Period(2013/10)-2,000-3,270
3 270

2.0

2.0

88.0%

-4,000-6,000

2.0

17th Period(2014/4)

10
1.0
86.0%

-4,439-4,94284.0%-8,0008 000

0.0
13th Term(2012/4)-6,27514th Term(2012/10)

15th Term(2013/4)

16th Term(2013/10)

17th Term(2014/4)

82 0%
82.0%

-8,315-10,000

80.0%

Average Free Rent (O+Z)
Tokyo Metropolitan Area: 2.0 months (-1.9 months vs. Oct.2013)
Regional Cities:
2.5 months (-1.1 months vs. Oct.2013)
Total Average:
2.2 months (-1.4 months vs. Oct 2013)© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

28

3,785㎡ Expansion in Total Leased Area

Asset Acquisitions
Lease Terminations-5,150m2

Asset Sale

▲5,405㎡

New Leases+8,411m2+5,929m2

159,843 m2

163,628m2

End of October 2013

End of April 2014

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

29

Increased Leased Area Across All Asset Types(m2)

End of October 2013

Lease
Terminations

Asset Sale*

Office (O)109,920-3,195-4,944

Residence (R)27,702-1,880

Other (Z)22,220Total

159,843

New
Contracts

Asset
Acquisitions

End of April 2014

3,583

4,915

110,278

+358

+387

-461

1,997

-

27,358

-344

+117

-74

-

349

3,497

25,992+3,772+275-5,150-5,405

5,929

8,411

163,628+3,785+779

ChangeChange in
Existing Assets*The decrease in Leased Area for Residence includes a change in the Master Lease company and leasing terms at Ichigo Serviced
Apartments Ginza, rather than an actual asset sale.

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

30

95% of Lease Renewals at Existing Rent(# of tenants / million yen)

No.

Leased Areas

Rent(entire period)

Change from
Previous Rent

Office + Other

1

161 m2+0.4 mm yen+25.0%

Residence

1

1 332 m2
1,332

+21 mm yen+70 9%+70.9%

Total

2

1,493 m2

+21 mm yen+68.3%

Office + Other

9

2 211 m2
2,211

-10
10 mm yen

-18.2%
18 2%

Residence

3

33 m2

-16 mm yen-27.6%

Toal

12

2 244 m2
2,244

-26
26 mm yen

-23.2%
23 2%

Office + Other

136

25,994 m2－－

Residence

59

5 386 m2
5,386

－

－

Total

195

31,380 m2－－

Asset Type

UpwardDownward

Flat© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

Renewedleases（209 / 941)

Other
(632 /2,609)

Upward (2 / 30)
Downward(12 / 112)

Flat
(195 / 799)

31

Renewals at Reduced Rents Decreasing
(m2)

7,000

6,000

Reduced Rent Lease Renewals (Office + Other)

5,945

5 000
5,000

4,539
3,844

4,000

3,304
3,000

2,211
2,000
,

1,000

0
13th Term(2012/4)

14th Term(2012/10)

15th Term(2013/4)

16th Term(2013/10)© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

17th Term(2014/4)

32

+19MM Change in Net Monthly Rent vs. Oct. 2013 Period

Asset Acquisitions
and Sales
Lease Terminations
Terminations-22 mm yen

Revisions

New Tenants-1 mm yen

＋19 mm yen+23 mm yen
Change bycontract renewal

Change byasset turnover-1 mm yen

+19 mm yen

Change by tenant movements＋1 mm yen

663 mm yen

644 mm yen
Change during the period+19 mm yen(+3%)

End of October 2013

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

End of October 201433

Change in Monthly Rent by Asset Type(million yen)
Lease

End ofTermination
October 2013

New
Contractss

UpwardDownward

Asset
Acquisitions

Asset
Sales

End of April
2014

Changes

Changes from
Existing
Assets

Office

459

-14

13

0

-2

26

-30

453

-6

-2

Residence

98

-8

8

3

-3

0

0

99

+1

+1

Other

87

-0

1

0

-0

23

0

111

+24

+1

Total

644

-22

23

4

-4

49

-30

663

+19

0

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

34

Reduced Rent Gap in All Areas

25.00%
Central Tokyo
Tokyo Metropolitan Area
Four Major Cities
Other Regional Cities
All

20.12%
20.00%
19.02%
17.47%

19.48%
15.45%

15.00%
14.54%
13 63%
13.63%
10.00%

10.57%

19 21%
19.21%
15.69%
14.58%
14.54%

8.90%

5.00%

13.66%
12.01%
12.15%

9.78%
7.40%

15.09%

8.91%

6.74%

7.12%

Apr.2013

Oct.2013

10.95%
8.31%
6.09%

0.00%
Apr.2012

Oct.2012

Apr.2014* Rent gap is premium in % of current rent vs. market rent (market rent from CBRE Co., Ltd).

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

35

Highly Diversified Tenant Mix
As of April 30, 2014

Tenant Profiles (Office and Other)

Residential Tenant Profiles

by Sector

by Counterparty* Based on # of Tenants

Other
Real Estate 6%
3%
Ed
Educationti
Welf are 3%
3%

Corporate
28

Service*
26%

Finance
6%

Manufacturing
9%

Individual72%(Total # of tenants: 789)

by Gender

by AgeIT
16%

Restaurant,,
Hotel
12%
Retail16%50s
7%Female
42%

Male
58%

Other
4%

20s
33%

40s
18%
30s
38%

(Total number of tenants: 508)
Top 5 Tenants: 16.2% (by Area)* “Service” includes advertising agencies, consulting firms, accounting firms,
law firms, HR firms, beauty salons, and domestic and foreign government
offices, etc.

* Excludes serviced apartments (Bureau Takanawadai, B-Site Hamamatsucho,
Ichigo Service Apartments Ginza) and restaurants.

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

36

75% of Portfolio in Tokyo Metropolitan Area
As of April 30, 2014

By UsePortfolio Overview
No of Assets
No.

Other
17%

71

Total Acquisition Price 114,391 mm yen
Total Appraisal Value

113,034 mm yen

Leasable Area

170,445 m2

Occupancy

96.0%

Sapporo0.5
1%

Office66%

By Price
Tokyo
Metro
Area
85.9
75%

Kansai
7.4
7%Sendai0.5
1%

3 bn yen~
30%

Nagoya12.2
11%2~3 bn yen
14%

Other
6.9
6%
Fukuoka

0.6
1%

Residence
17%

By Region
Acquisition Price (bn yen)and % of portfolio

0~1 bn yen
16%

1~2 bn yen
40%

By Age30 years~
20%

20~30 years
29%

0~10 years
28%

10~20
10
20 years
23%

Average:18.6 years© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

37

Portfolio Details (1)As of April 30, 2014
Use

OfficeNo.

Property

Area

Address

O-02

Ichigo Nishisando Building

Central Tokyo

Yoyogi, Shibuya-ku, Tokyo

AcquisitionPrice(mm yen)

3,254

Book Value(mm yen)

3,262

NRA (m2)

4,564.63

Occupancy
(%)

93.6%

Apr 2014 Appraisal
Value(mm yen)2,655

Cap rate
(%)

5.0%

O 03
O-03

I hi Mit
IchigoMita B
Building
ildi

C t lT
CentralTokyok

Shib Mi
Shiba,
Minato-ku,
t k T
Tokyo
k

2 740
2,740

2 773
2,773

4 097 63
4,097.63

100 0%
100.0%

2 768
2,768

5 0%
5.0%

O-04

Ichigo Nanpeidai Building

Central Tokyo

Nanpeidaicho, Shibuya-ku, Tokyo

1,920

1,950

1,925.24

100.0%

1,820

4.4%

O-05

Ichigo Hanzomon Building

Central Tokyo

Hayabusacho, Chiyoda-ku, Tokyo

1,550

1,547

2,080.37

62.2%

1,580

4.8%

O-06

Ichigo Hijirizaka Building

Central Tokyo

Mita, Minato-ku, Tokyo

1,200

1,225

1,947.90

100.0%

1,260

5.2%

O-07

Ichigo Shibuya Kamiyamacho Building

Central Tokyo

Kamiyamacho, Shibuya-ku, Tokyo

1,505

1,460

1,321.54

100.0%

1,625

4.6%

O 08
O-08

I hi Ak
IchigoAkasaka
k 5 ChChome B
Building
ildi

C t lT
CentralTokyokAk
Akasaka,k Mi
Minato-ku,
t k Tokyo
T k

735

735

687 78687.78

87 6%
87.6%

738

4 5%
4.5%

O-09

Ichigo Shibakoen Building

Central Tokyo

Shiba, Minato-ku, Tokyo

1,100

1,117

1,602.29

100.0%

1,030

5.1%

O-10

Ichigo Ebisu-Nishi Building

Central Tokyo

Ebisu-nishi, Shibuya-ku, Tokyo

1,917

1,924

1,484.39

100.0%

1,941

4.8%

O-11

COI Ginza 612

Central Tokyo

Ginza, Chuo-ku, Tokyo

1,773

1,772

1,393.35

94.4%

1,850

4.7%

O-12

Ichigo Uchikanda Building

Central Tokyo

Uchikanda, Chiyoda-ku, Tokyo

1,140

1,147

1,378.82

100.0%

1,050

5.0%

O 13
O-13

Ichigo Kudan-Minami
Kudan Minami Building

Central Tokyo

Kudan Minami Chiyoda
Kudan-Minami,
Chiyoda-ku,
ku Tokyo

387

378

490 91490.91

89 0%
89.0%

406

4 8%
4.8%

O-14

Ichigo Yotsuya 4 Chome Building

Central Tokyo

Yotsuya, Shinjuku-ku, Tokyo

550

537

780.64

81.8%

553

4.9%

O-15

Ichigo Tameike Building

Central Tokyo

Akasaka, Minato-ku, Tokyo

580

562

494.14100.0%

577

4.5%

O-16

Ichigo Jimbocho Building

Central Tokyo

Kanda Jinbocho, Chiyoda-ku, Tokyo

1,820

1,826

1,889.54

92.6%

1,920

4.9%

O-17

Ichigo Hakozaki Building

Central Tokyo

Nihonbashi Kakigaracho, Chuo-ku, Tokyo

1,150

1,180

2,386.11

64.1%

1,070

5.1%

O-18

Ichigo Kudan 2 Chome Building

Central Tokyo

Kudan Minami,
Minami Chiyoda-ku
Chiyoda-ku, Tokyo

763

740

1 288 31
1,288.31

100 0%
100.0%

812

5 0%
5.0%

O-19

Ichigo Kudan 3 Chome Building

Central Tokyo

Kudan Minami, Chiyoda-ku, Tokyo

844

843

1,302.43

80.8%

796

5.1%

O-20

Ichigo Gotanda Building

Central Tokyo

Higashi-Gotanda, Shinagawa-ku, Tokyo

5,060

4,996

5,346.76

95.3%

5,200

5.4%

O-21

Ichigo Shin-Yokohama Building

Tokyo Metro Area

Shinyokohama, Kohoku-ku, Yokohama City, Kanagaw a

1,816

1,789

4,029.77

94.3%

1,752

5.6%

O-22

Ichigo Minami-Ikebukuro Building

Tokyo Metro Area

Minami-Ikebukuro, Toshima-ku, Tokyo

1,460

1,422

1,491.51

100.0%

1,430

4.9%

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

38

Portfolio Details (2)As of April 30, 2014
Use

OfficeNo.

Property

Area

Address

AcquisitionPrice(mm yen)Book Value(mm yen)

NRA (m 2)

Occupancy(%)

Apr 2014 Appraisal
Value(mm yen)

Cap rate(%)

O-23

Ichigo Nakano North Building

Tokyo Metro Area

Arai, Nakano-ku, Tokyo

764

774

1,250.85

100.0%

781

5.6%

O-24

Ichigo Eitai Building

Tokyo Metro Area

Eidai, Koto-ku, Tokyo

1,490

1,491

2,608.05

100.0%

1,130

5.6%

O-25

Ichigo Yokosuka Building

Tokyo Metro Area

Wakamatsu-cho, Yokosuka City, Kanagawa

971

971

2,186.60

91.5%

912

6.2%

O-26

Ichigo Ikejiri Building

Tokyo Metro Area

Ohashi, Meguro-ku, Tokyo

2,030

2,011

2,385.69

100.0%

1,980

5.2%

O-27

Route Ikebukuro Building

Tokyo Metro Area

Ikebukuro, Toshima-ku, Tokyo

639

635

1,261.91

100.0%

644

5.2%

O-28

Ichigog Nishi-Gotanda BuildinggCentral TokyoyNishigotanda,g, Shinagawa-ku,g, Tokyo
y

765

757

1,311.21,

100.0%

754

5.2%

O-29

Ichigo Kichijoji Building

Tokyo Metro Area

Kichijoji Honcho, Musashino-shi, Tokyo

2,160

2,290

4,224.34

95.1%

2,230

5.5%

O-33

Ichigo Meieki Building

Four Major Cities

Meieki, Nakamura-ku, Nagoya City, Aichi

837

800

2,063.52

79.2%

809

5.7%

O-34

Ichigo Sakae Building

Four Major Cities

Sakae, Naka-ku, Nagoya City, Aichi

4,705

4,701

3,928.12

97.2%

4,985

5.3%

O-35

Ichigo Sendai Chuo Building

Other Regional Cities Chuo, Aoba-ku, Sendai City, Miyagi

510

525

2,378.07

93.3%

429

6.0%

O 37
O-37

Ichigo Marunouchi Building

Four Major Cities

6 710
6,710

6 404
6,404

8 009 098,009.09

100 0%
100.0%

6 620
6,620

5 2%
5.2%

O-38

Ichigo Toyamaeki-Nishi Building

Other Regional Cities Jinzuhonmachi, Toyama City, Toyama

1,650

1,608

8,601.71

96.2%

1,660

6.7%

O-39

Ichigo Mirai-Shinkin Building

Other Regional Cities Niagemachi, Oita City, Oita

1,100

1,085

3,247.06

96.1%

1,110

6.6%

O-40

Ichigo Saga Building

Other Regional Cities Ekimae-Chuo, Saga City, Saga

659

713

2,786.43

92.5%

672

7.0%

O-42

Ichigo Takamatsu Building

Other Regional Cities Kotobukicho, Takamatsu City, Kagawa

3,010

2,789

6,329.33

100.0%

3,030

7.1%

O-44

Akita Sanno 21 Building

Other Regional Cities Sanno, Akita City, Akita

560

570

3,497.88

92.1%

568

7.7%

O-46

Ichigo Kanda-Nishikicho Building

Central Tokyo

Kandanishikicho, Chiyoda-ku, Tokyo

2,130

2,109

2,523.09

100.0%

2,340

4.6%

O-47

Ichigo Akiharaba North Building

Central Tokyo

Sotokanda, Chiyoda-ku, Tokyo

5,500

5,505

6,250.53

100.0%

5,810

5.1%

O-48

Ichigo Sakaisuji Honmachi Building

Four Major Cities

Honmachi, Chuo-ku, Osaka-shi, Osaka

1,940

1,932

3,729.29

100.0%

2,100

5.2%

O-49

Ichigo Kanda Ogawamachi Building

Central Tokyo

Kanda-Ogawamachi, Chiyoda-ku, Tokyo

2,210

2,210

2,217.26

100.0%

2,260

4.9%

O-50

Ichigo Hatchobori Building

Central Tokyo

Shintomi, Chuo-ku, Tokyo

1,905

1,937

2,697.36

100.0%

2,250

5.2%

75,50975,022

115,471.45

95.5%

75,907

Marunouchi Naka-ku,
Marunouchi,
Naka ku Nagoya City
City, Aichi

Subtotal - Offic e© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

39

Portfolio Details (3)As of April 30, 2014
Use

Residence

No.

Property

Area

Address

AcquisitionPrice(mm yen)Book Value(mm yen)

NRA (m2)

Occupancy(%)

Apr 2014 Appraisal
Value(mm yen)

Cap rate(%)

R-01

ForeCity Roppongi

Central Tokyo

Roppongi, Minato-ku, Tokyo

1,730

1,682

1,663.87

96.8%

1,440

4.9%

R-02

ForeCity Azabujuban

Central Tokyo

Mita, Minato-ku, Tokyo

1,140

1,101

1,111.20

95.8%

1,100

4.8%

R-03

ForeCity Azabujuban No.2

Central Tokyo

Mita, Minato-ku, Tokyo

1,250

1,216

1,177.20

97.2%

1,180

4.8%

R-04

Bureau Takanawadai

Central Tokyo

Shirokanedai, Minato-ku, Tokyo

1,360

1,314

1,677.88

100.0%

992

4.8%

R-05

ForeCity Shirokanedai

Central Tokyo

Shirokanedai, Minato-ku, Tokyo

824

787

927.90

97.5%

756

4.8%

R-06

B-Site Hamamatsucho

Central Tokyo

Hamamatsucho, Minato-ku, Tokyo

701

678

821.84100.0%

566

4.9%

R-07

ForeCity Akihabara

Central Tokyo

Kanda Sakumacho, Chiyoda-ku, Tokyo

2,520

2,417

3,452.29

100.0%

2,090

4.9%

R-08

Suite One Court

Central Tokyo

Irifune, Chuo-ku, Tokyo

786

749

1,030.54

96.7%

679

4.9%

R-09

B-site Ginza East

Central Tokyo

Shintomi, Chuo-ku, Tokyo

946

914

1,020.14

85.4%

794

4.9%

R-10

ForeCity Sasazuka

Central Tokyo

Sasazuka, Shibuya-ku, Tokyo

1,050

1,011

1,452.61

100.0%

920

4.9%

R-11

Gran Presso Kawadacho

Central Tokyo

Kawadacho, Shinjuku-ku, Tokyo

592

594

667.16

85.6%

511

4.9%

R-12

ForeCity Sakurashinmachi

Tokyo Metro Area

Sakurashinmachi, Setagaya-ku, Tokyo

932

894

1,182.96

96.2%

781

4.9%

R-13

ForeCity Shinkamata

Tokyo Metro Area

Shinkamada, Ota-ku, Tokyo

1,040

983

1,756.33

98.1%

993

5.1%

R-14

ForeCity Nakaochiai

Central Tokyo

Nakaochiai, Shinjuku-ku, Tokyo

435

439

599.30100.0%

365

5.0%

R-15

ForeCity Tomigaya

Central Tokyo

Tomigaya, Shibuya-ku, Tokyo

1,341

1,329

2,105.94

96.0%

1,620

4.8%

R-16

ForeCity Ryogoku

Tokyo Metro Area

Midori, Sumida-ku, Tokyo

1,080

1,029

1,572.39

100.0%

1,060

5.0%

R-17

ForeCity Toyosu

Tokyo Metro Area

Shinonome, Koto-ku, Tokyo

1,349

1,326

3,058.24

100.0%

1,680

5.1%

R-18

ForeCity Nishihonmachi

Four Major Cities

Nishihonmachi, Nishi-ku, Osaka City, Osaka

927

905

2,675.88

100.0%

1,030

5.4%

Subtotal - Residence

20,005

19,37527,953.67

97.9%

18,557© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

40

Portfolio Details (4)As of April 30, 2014
Use

Other

No.

Property

Area

AcquisitionPrice(mm yen)Address

Book Value(mm yen)

NRA (m 2)

Occupancy(%)

Apr 2014 Appraisal
Value(mm yen)

Cap rate(%)

Z-01

Falcon Shinsaibashi Building

Four Major Cities

Higashi-Shinsaibashi, Chuo-ku, Osaka City, Osaka

3,410

3,146

5,760.79

100.0%

2,760

5.3%

Z-02

Fiesta Shibuya

Central Tokyo

Udagawacho, Shibuya-ku, Tokyo

1,970

1,987

1,193.29

90.8%

2,000

4.6%

Z-03

Burg Omori

Tokyo Metro Area

Omorikita, Ota-ku, Tokyo

3,218

3,196

5,345.62

88.4%

2,935

6.0%

Z-04

Pagoda Asakusa

Tokyo Metro Area

Kaminarimon, Taito-ku, Tokyo

1,640

1,612

2,091.26

100.0%

1,720

5.2%

Z-05

Regalo Building

Tokyo Metro Area

Haramachida, Machida City, Tokyo

1,310

1,305

2,183.65

86.5%

1,390

5.6%

Z-06

Ichigo Yokohama-Nishiguchi Building

Tokyo Metro Area

Minami-Saiw ai, Nishi-ku, Yokohama City, Kanagaw a

903

903

1,264.26

100.0%

923

5.5%

Z-07

El Centro Sapporo

Four Major Cities

Minami 2 jo Nishi, Chuo-ku, Sapporo City, Hokkaido

558

552

1,185.53

100.0%

514

5.9%

Z-08

Daimyo Balcony

Four Major Cities

Daimyo, Chuo-ku, Fukuoka City, Fukuoka

638

615

765.61100.0%

608

5.5%

Z-09

Konami Sports Club Izumi Fuchu

Other Regional Cities Fuchucho, Izumi-shi, Osaka

1,210

1,201

3,733.68

100.0%

1,320

6.3%

Z-10

Ichigo Shibuya Bunkamura-Dori Building

Central Tokyo

Udagawa-cho, Shibuya-ku, Tokyo

2,400

2,485

778.77100.0%

2,670

4.0%

Z 11
Z-11

Twicere Yokohama Isogo (Retail Section)

Tokyo Metro Area

Mori Isogo
Mori,
Isogo-ku,
ku Yokohama City
City, Kanagawa

1 620
1,620

1 617
1,617

2 717 77
2,717.77

100 0%
100.0%

1 730
1,730

5 8%
5.8%

Subtotal - Other

18,877

18,62427,020.23

96.2%

18,570

Total

114,391

113,022

170,445.35

96.0%

113,034© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

41

Ichigo Branding (1)Striving to enhance recognition by branding and adding value to Ichigo
buildings and improving service quality
 Updatingpg building
g names to reflect their current status as Ichigo
g REIT p
portfolio assets
 Improving the safety, comfort, and aesthetics of assets with Ichigo’s building technology© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

42

Ichigo Branding (2)Providing high-quality tenant services that reflect Ichigo’s hospitality values
 Ichigo’s Property Management Standard Ichigo leasing and tenant materials
Ichigo’s Property Management Standard

Sample Ad and Pamphlet

Leasing Information (Ichigo Group HP)© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

43

Appendix: About Ichigo REIT

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

44

Shareholder Composition
As of April 30, 2014

Number of Shares by Shareholder Type

Major Shareholders
Name

Shares #Share %

1

Ichigo Trust Pte. Ltd.

360,060

35%

2

The Master Trust Bank of Japan, Trust Account77,6088%

Domestic
Individuals& Others
153,814

Foreign
Corporation &Individuals
595,569

Financial
Institutions
Instittions
262,825

3

Japan Trustee Service Bank, Trust Account75,735

7%

4

Trust & Custody Service Bank, Ltd., Securities Investment
Trust Account68,983

7%

5

BARCLAYS CAPITAL SECURITIES LIMITED

44,659

4%

6

NOMURA BANK (LUXEMBOURG) S.A.

43,0874%

7The Nomura Trust and Banking Co., Ltd.

31,9973%

Number of Shareholders by Type8MORGAN STANLEY & CO
CO. INTERNATIONAL PLC

29 79329,7933%

Domestic Corporation &Corporations Individuals

9

BNYM SA/NV FOR BNYM CLIENT ACCOUNT MPCS JAPAN

25,390

2%

10

JP MORGAN CHASE BANK 380180

18,364

2%775,676

76%

Total

Domestic
Corporations
14,115

Foreign

146 114

Financial
Institutions
32

Domestic
Individuals &Others13,400© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

45

Ichigo REIT Overview
As of April 30, 2014

Name

Ichigo Real Estate Investment Corporation (Ichigo REIT)

Securities Code8975

Address

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

Executive Director

Yoshihiro Takatsuka

Portfolio

71 properties

Portfolio Value

114,391 million yen （based on acquisition price）

Fiscal Periods

May 1 – October 31 and November 1 – April 3

Asset Management Company
Name

Ichigo Real Estate Investment Advisors Co., Ltd.

President & Representative
Statutory Executive Officer

Wataru Orii

© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

46

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 with
Ichigoith respectt to
t financial
fi
i l condition
diti andd ffuturetresults
lt off operations.
ti
These
Th
statementst tt are basedbd 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 managementgof 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.
© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

47