Ichigo REIT October 2014 Fiscal Period
Corporate Presentation
December 18, 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 throughhonest and committed management.

© 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.

October 2014 Financial Results
 Operating Revenues Up & Dividend Beats Forecast
 9 Consecutive Periods of Dividend Growth – No. 1 vs. All J-REITs
 Consistent >95% Occupancy
 Lengthening Debt at Lower Cost
 Value-Add Driving Higher Occupancy

Accelerating Growth Ichigo REIT Growth Strategy
 Strategic Restructuring to Focus on Mid-Size Offices
 Strategic Restructuring: Asset Acquisitions & Sales
 Improved Portfolio Quality – Higher NOI, Higher Occupancy
 78% Office, 75% Tokyo Metropolitan Area Portfolio
 Acquisitions and Sales Portfolio Outcome
 Strengthened Lender Base – Now Borrowing from All 3 Megabanks
 Strengthened Financial Base April 2015 Dividend Forecast
 Operating EPS Growth

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

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

6

Operating Revenues Up & Dividend Beats Forecast
October 2014 Dividend: 1,547 yen (+17 yen vs. May 2014)(million yen)
April 2014 Actual

Operating Revenue

4,637

October 2014 Actual

4,615

Initial Forecast

4,531

Difference

Major Factors for Variation+84

Rental revenue: -14 (Of w hich -2 due to sale of Ichigo Kudan
Minami Building)
Other rental revenue: +43(e.g., tenant lease termination penalty, etc.)
Sales gain from sales of Ichigo Kudan Minami Building +57
Rental expenses: -45(Of w hich -20 due to increase in utilities expense;-15 due to the settlement of asset sold in April 2014 period; )Other operating expenses: -11

Operating Profit

2,187

2,139

2,112

+26

Recurring Profit

1,307

1,410

1,483

-73

Net Income

1,306

1,409

1,482

-73

Non-operating expense: -98 (Loan-related expense -120, Interest
on debt +22)

New ly reserved 57 million yen of capital gains and used 235 mm
yen of existing dividend reserve, resulting in a net dividend reserve
decrease of 177 mm yen (Dividend Reserve: 13,338 million yen asof Oct 2014)

1,541 yen

1,547 yen

1,530 yen

+17 yenNo. of assets

71

70

－

－

－

No. of tenants

520

513

－

－

－

Leasable area

170,445㎡

170,306㎡

－

－

－

5.5%

5.6%

－

－

－

Dividend per ShareNOI yield© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

7

9 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

1,541
yen

1,547
yen

April 2013

October 2013

April 2014

October 2014

* 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.

8

Consistent >95% Occupancy
95.7% Occupancy (October-End)
Face Rents Still Bottoming, but Decreased Incentives Offsetting
Occupancy and Rent per Tsubo
100%
98.3%
98.1%

Average Rent (O+Z)
Average Rent (R)Office (O)

94.7%

96.3%

93.2%

92.3%

24,000

98.2%

98.0%

95.6%

95.2%

95.1%
94.6%

94.7%
94.5%

90.5%

Residence (R)Other (Z)

97.4%

97.9%
96.2%
96.0%
95.5%

97.0%
96.2%
95.7%

(yen)

20,000
92.3%

90%

Total

16,00014,00013,90013,90013,70013,70013,60080%
11,90011,70011,70011,70012,00011,90070%

12,0008,000

No. of Assets
April 2012

October 2012

April 2013

October 2013

April 2014

October 2014

Office (O)

41

41

40

41

42

41

Residence (R)

18

18

18

18

18

18

Other (Z)

8

8

8

9

11

11

To tal

67

67

66

68

71

70

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

9

Lengthening Debt at Lower Cost (1)Completed JPY 6.5B Repayment of GE Loan in August 2014
 New borrowing of JPY 6.5B from SMBC-led syndicate
 Extended loan maturity and reduced total portfolio interest rate by 0.16%■ Distribution of Repayment Dates (as of August 1,2014, after execution of GE refinancing)(million yen)
20,00015,000Extended loan maturity with refinancing of GE loan
10,15810,000

7,530

6,825

6,685

5,900

5,366

6,500

6,422

5,000

3,607

2,430
2,430

0
Oct-14Apr-15Oct-15

Apr-16Oct-16

Apr-17Oct-17

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

Oct-18Apr-19Oct-1910

Lengthening Debt at Lower Cost (2)Decreased Average Debt Cost from 2.62% to 1.53% since October 2011
2.80%

2.62%

2.62%

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

Loan Fixed-to-Floating ratio

2.60%
Merger(Nov 2011)

Fixed:72.9%

Syndicated loans from
Aozora Bank

2.40%

Floating:27.1%

2.35%
2.34%

2.26%

2.23%

2.20%

2.00%

Nearly halved
costDecreaseof debt:
1.09%
from 2.62% to 1.09%

Comprehensive
Refinancing

Sale of COI
Shinbashi
Building(Apr 2014)

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

1.80%

GE Loan Refinancing(Aug 2014)

1.80%

1.88%

1.82% 1.81%

1.78%

1.78%

1st Accretive Follow-On

1.69%

Public Offering (May 2013)

1.69%

1.60%
1.53%

1.40%
Oct 2011

Apr 2012

Oct 2012

Apr 2013

Oct 2013© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

Apr 2014

Oct 2014

11

Value-Add Driving Occupancy (1)Rapidly Increasing Occupancy via Renovations & Aggressive Marketing
Ichigo Hakozaki Building (Office)Ichigo Hanzomon Building (Office)

100%

100%

100.0%

92.5%

90%

90%

80%

80%

77.2%

76.1%
70%

70%

62.2%

64.1%
60%

60%
14/04

14/05

14/06

14/07

14/08

14/09

Renovated elevator hall and restrooms
on vacant floors
 Private room viewings after value-add
renovations

New lease of 259 tsubo (+35.9%)

14/10

14/04

14/05

14/06

14/07

14/08

14/09

14/10

 Renovated office kitchenette andrestrooms on vacant floors
 Provided detailed asset information tobrokers to support their sales efforts

New lease of 190 tsubo (+30.3%)© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

12

Value-Add Driving Occupancy (2)Asset Name

Ichigo Kanda Ogawamachi Building

Asset Name

Ichigo Jimbocho Building

Asset Type

OfficeAsset Type

OfficeAddress

Chiyoda-ku, Tokyo

Address

Chiyoda-ku, Tokyo

Leasable Area

2,258.72m2 (683.3 tsubo)

Leasable Area

1,889.54m2

Structure

S / SRCB1F / 10F

Structure

S / RC

Occupancy

68.8% (as of October 31, 2014)

Occupancy

77.8% (as of October 31, 2014)

B2F / 11F

Ichigo Layout Office in building;vacancy arose on a different floor

Existing tenant on 3 floors (200 tsubo)
moved out

- Renovated entrance, elevator hall, and signage- Held a viewing event and following up with potential tenants with aview to rapid lease-up(571.6 tsubo)- New lease of two floors (85 tsubo) in November 2014
- Improved additional floor as Ichigo Layout Office andcurrently marketing to acquire a new tenant with higher rent

■ Renovation of Common spaces (Entrance/ Hallway/ Signage)

Ichigo Layout Office is a newservice that provides a fully fitted
office to accelerate move-in andreduce tenant costs.
© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

13

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

14

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

Stage III2013/10

Stage IV

2014/45th period post merger

2014/10

6th period post merger

2015/47th period post merger

Goal

Enhance Profitability

Stage V
2015/10

8th period post merger

Increase Size & Scale■ Financing Strategy
・Strengthen financial base via PO・Strengthen lender base・Obtain credit rating

Plan

Accretive Growth Cycle

Foundation for Growth

Obtain Credit Rating■ Organic Growth Strategy
・Strategic leasing of individual
properties
・Asset value enhancements
・Promote Ichigo brand■ External Growth Strategy
・Continuously acquire assets
through PO・Improve portfolio with asset sales
・Deploy Sponsor’s warehousing
capability■ Financing Strategy
・Obtain credit rating
・Strengthen financial base via PO・Increase potential for new borrowing(collateral consolidation and noncollateralized borrowing)■ Organic Growth Strategy
・Improve lease conditions for assets
with growth potential
・Promote Ichigo brand■ External Growth Strategy
・Acquire assets via new borrowing
・ Build a mid-size asset portfolio
centered around offices with highpotential to contribute to bothearnings growth and stability
・Make full use of Ichigo Group’s
acquisition and bridge fundcapability

2016/49th period post merger

2016/1010th period post merger

Further Increase Dividend
and Solidify Market Position■ Financing Strategy
・Consider bond issuance・Improve credit rating■ Organic Growth Strategy
・Improve profit structure as portfolio
size increases
・Strengthen Ichigo brand awareness■ External Growth Strategy
・Acquire assets via new borrowing
・ Build a mid-size asset portfolio
centered on offices with highpotential to contribute to bothearnings growth and stability

Drive Further GrowthNote: Growth outcomes may differ from this plan and are not guaranteed.
© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

15

Strategic Restructuring to Focus on Mid-Size Offices
Acquisition of 11 Assets (JPY 26.7B Office/Retail, 99% Occupancy) &Sale of 15 Assets (JPY 16.5B Residential)
Acquisitions and Sales Objectives

1

Build portfolio centered on
mid-size offices with abalance of stability andgrowth potential

2

Acquire quality assets andincrease returns throughstrong sponsorship andcapabilities of Ichigo Group

3

Drive earnings by leveraging
Ichigo’s accumulated
investment experience andcapabilities in mid-size office4

Strengthen financial position■ Focus on office assets with ability to add value to support earnings
growth■ Make full use of Ichigo Group capabilities to maximize acquisition
opportunities and flexibly acquire high-quality assets■ Work closely with Ichigo Group Holding’s Real Estate Services
Division, which provides customer service support, and strengthen
Ichigo REIT environmental, architectural, and leasing operations■ Acquire high-occupancy, high-NOI assets and keep them that way
by effectively deploying accumulated management know-how■ Enhance profitability by leveraging Ichigo’s differentiated leasing
capabilities such as Ichigo layout office, track record of value-add
renovation, and Ichigo and building-specific branding■Strengthen lender base and move to uncollateralized borrowing© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

16

Strategic Restructuring: Asset Acquisitions
8 Office, 3 Retail• Total acquisition price: JPY 26.7B• 7 assets acquired via sponsor pipeline of Ichigo Group• Average occupancy: 99.0% (as of October 31, 2014)
AcquisitionPrice(million yen)Apprasal Value(million yen)

NOI Yield

Occupancy

SellerShibuya-ku, Tokyo

5,900

5,940

4.2%

90.6%

Ichigo Group

OfficeShinagawa-ku, Tokyo

3,850

3,920

5.1%

100.0%

Ichigo Group

Ichigo Takadanobaba
Building (O-53)

OfficeShinjuku-ku, Tokyo

1,580

1,630

5.3%

100.0%

Ichigo Group

Ichigo Omiya Building(O-54)

OfficeSaitama City, Saitama

3,430

3,520

6.6%

99.2%

Ichigo Group

Ichigo Sagamihara Building(O-55)

OfficeSagamihara City, Kanagawa

1,174

1,190

6.7%

100.0%

Domestic TMK

Ichigo Ofuna Building(O-56)

OfficeKamakura City, Kanagawa

2,000

2,030

6.0%

96.8%

Domestic GK

Ichigo Sendai East Building(O-57)

OfficeSendai City, Miyagi

1,840

1,890

6.5%

100.0%

Ichigo Group

Ichigo Kumamoto Building(O-58)

OfficeKumamoto City, Kumamoto

1,450

1,460

7.3%

100.0%

Domestic KK

Lions Square Kawaguchi(Z-12)

Other(Retail)

Kawaguchi City, Saitama

2,430

2,500

5.7%

100.0%

Ichigo Group

Ichigo Shin-Yokohama
Arena-Dori Building (Z-13)

Other(Retail)

Yokohama City, Kanagawa

1,700

1,730

5.7%

100.0%

Ichigo Group

Ichigo Kamata Building(Z-14)

Other(Retail)

Ota-ku, Tokyo

1,400

1,410

5.4%

100.0%

Domestic TMK

26,75427,220

Average 5.6%

Average 99%

Type

Location

Ebisu Green Glass(O-51)

OfficeIchigo Omori Building(O-52)

Asset

Total

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

17

Strategic Restructuring: Asset Sales
15 Residential• Total sale price: JPY16.5B• Buyer: Ichigo Group in bulk sale
Asset Type

Asset

Location(million yen)

Sale PriceAppraisal Value(million yen)

ForeCity Roppongi (R-01)

Residence

Minato-ku, Tokyo

1,570

1,480

ForeCity Azabujuban (R-02)

Residence

Minato-ku, Tokyo

1,135

1,140

ForeCity Azabujuban No.2 (R-03)

Residence

Minato-ku, Tokyo

1,224

1,210

ForeCity Shirokanedai (R-05)

Residence

Minato-ku, Tokyo

750

756

ForeCity Akihabara (R-07)

Residence

Chiyoda-ku, Tokyo

2,191

2,120

Sweet One Court (R-08)

Residence

Chuo-ku, Tokyo

655

690

ForeCity Sasazuka (R-10)

Residence

Shibuya-ku, Tokyo

959

938

Gran Presso Kawadacho (R-11)

Residence

Shinjuku-ku, Tokyo

500

519

ForeCity Sakurashinmachi (R-12)

Residence

Setagaya-ku, Tokyo

716

795

ForeCity Shinkamada (R-13)

Residence

Ota-ku, Tokyo

990

1,020

ForeCity Nakaochiai (R-14)

Residence

Shinjuku-ku, Tokyo

335

372

ForeCity Tomigaya (R-15)

Residence

Shibuya-ku, Tokyo

1,650

1,660

ForeCity Ryogoku (R-16)

Residence

Sumida-ku, Tokyo

1,080

1,080

ForeCity Toyosu (R-17)

Residence

Koto-ku, Tokyo

1,785

1,770

ForeCity Nishihonmachi (R-18)

Residence

Osaka City, Osaka

980

1,040

16,52016,520Total*Appraisal Value is as of October 31, 2014

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

18

Improved Portfolio Quality – Higher NOI, Higher Occupancy

Items

As of April 30, 2014

As of October 31, 2014

Post-Transactions

Total

71

70

66

Office42

41

49

Residence

18

18

－

Other

11

11

17

Total

114,391

114,062

123,818

Office75,50975,18096,404

Residence

20,00520,005－

Other

18,877

18,877

27,414

Appraisal Value (million yen)

113,034

114,182

124,882

170,445.35㎡

170,306.22㎡

187,432.69㎡

Occupancy

96.0%

95.7%

96.2%

NOI Yield

5.5%

5.6%

5.7%

LTV (Based on Book Value)

45.3%

45.2%

45.5%

LTV (Based on Appraisal Value)

49.9%

49.0%

48.9%

18.6

19.2

20.4

# of Assets

Acquisition Price(million yen)

Leasable Area

Average Age (years)

1: Figures of Leasable area, Occupancy, NOI Yield, and Average Years after acquisitions and sales are calculated based on portfolio assets as of October 31, 2014,
taking15 residential asset sales and 11 asset acquisitions through PO into account.
2: LTV after acquisitions and sales are calculated based on interest-bearing debt and total assets as of October 31, 2014, taking sales of 15 residential asset s andacquisition of 11 assets through PO into account.
3: “Other” in Post-Transactions includes 3 serviced apartments© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

19

78% Office & 75% Tokyo Metropolitan Area Portfolio
As of October 31, 2014

By UsePortfolio Overview
No. of Assets

Other
22%

66

Total Acquisition Price 123,818 mm yen
Total Appraisal Value

124,882 mm yen

Leasable Area

187,432 m2

Occupancy

Sapporo5
1%

Office78%

By Price

96.2%

Tokyo
Metro
Area
929
75%

0~JPY1B
10%

Sendai23
2%

JPY3B~
39%
JPY1B~2B
36%

Nagoya122
10%

JPY2B~3B
15%

Kansai65
5%

Fukuoka

By AgeOthers84
6%30 years~
20%

6
1%

Acquisition Price (bn yen)and % of portfolio

20~30 years
37%

0~10 years
24%

10~20 years
19%

Average:20.4 years© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

20

Acquisitions and Sales Portfolio Outcome
Higher Office Weighting, Higher NOI Yield, Higher Occupancy-JPY 17B+JPY 27B(11 assets)

Portfolio Size
JPY 114B(15 assets)*All Residence

Strategic Restructuring toFocus on Mid-Size Office(70 assets)
NOI yield: 5.6%
Occupancy: 95.7%

Oct 2014

Office Weighting: 66%  78%

Asset Acquisitions
Dec 2014 ~ Jan 2015 (Expected)

Asset Sales
Dec 2014

Portfolio Size
JPY124B(66 assets)

Increased Portfolio+JPY 9.8B

NOI yield: 5.7% (+0.1%)
Occupancy: 96.2% (+0.5%)

Post-Transactions* Based on Acquisition (Sales) Price© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

21

Strengthened Lender Base – Now Borrowing from All 3 Megabanks
As of April 30, 2014
Bank of Fukuoka
2%

Shinsei Trust *2
2%
Kagawa Bank
2%

As of January 9, 2015

ORIX Bank
2%

ORIX Bank
2%

MetLife Alico3%

Shinsei Trust *1
5%

SMBC
21%

Tokyo Star 5%
Prudential LPS
6%Resona Bank
8%
Shinsei Bank
10%

Bank of Fukuoka 2%

MetLife
Alico
3%
KagawaTokyo Star
Bank
3%
3%

SMBC
22%

Shinsei Trust *1
5%

Aozora Bank
12%

Mizuho Bank
3%
Mizuho Trust
7%

BTMU
3%

Shinsei
Trust *2
2%

GE JapanCorporation
12%

Mizuho Bank
9%

Prudential LPS
6%

Mizuho Trust
4%

Resona Bank
10%

Shinsei Bank
13%

Aozora Bank
13%

1: Source of funds 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.

22

Strengthened Financial Base
Increasing Financial Stability via Refinancings and POs
 Working towards cross-collateralization and non-collateralization, which increaseacquisition capacity, lower debt costs, and strengthen credit rating

Transactions

Repayment of existingloans

New loans
Loans fromnew banks

Results

LTV leveling acrossloan portfolio

Strengthened lender
base

Cross-collateralization
Non-collateralization

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

Lowered debt cost23

April 2015 Earnings Forecast(million yen)
April 2014
Actual (A)Operating Revenue

4,615

April 2015
Forecast (B)4,973(B) - (A)357

Operating Expenses

2,476

2,694

218

Operating Profit

2,139

2,278

139

Non-Operating Income

1

2

0

Non-Operating Expenses

730

1,015

284

Recurring Profit

1,410

1,265

-145

Net Income

1,409

1,264

-145

177

537

359

1,587

1,802

209

1,547 yen

1,590 yen

Dividend Reserve Reversal
Total Dividend
Dividend per Share

Major Factors for Variation in Net Income
Rental revenue increase due to asset acquisitions +804; Decrease due to asset
sales -417 (Of which -400 is due to sales in April 2015 period )Decrease in retal revenue decrease of existing assets -90 (rental revenue -33, tenantlease termination penalty and other income -43, utilities -18, others) Increase in sales
gain +60
Rental expense increase due to asset acquisitions -297, Decrease due to assets
sold +164 (Of which +142 is due to sales in April 2015 period +142)
Increase in SG&A -84 (Management fee, other Operating Expenses)

Decrease in interest expenses due to repayment of existing loans and refinancing+40
Decrease in financing-related expenses due to repayment of existing loans -296
Decrease in expenses to issue new shares -28(April 2015 Fiscal Period) PO/Loan-related 290, Asset sale 236-* The April 2015 dividend forecast assumes that the maximum of 8,320 shares is issued from the underwriter third-party allotment
held in tandem with the public offering of 95,680 shares.
© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

24

Operating EPS Growth
Strengthened Asset Management Capability Driving Operating EPS Growth
April 2014 (Actual)

October 2014 (Actual)

April 2015 (Forecast)

75 yen61 yenCapital gains, etc.

122 yen
113 yen

One-off financingrelated cost effect397 yen

147 yen

1,419
1,272
yen

yen

EPS

Operating EPS

1,541
yen

Dividend Per Share

1,486
1,373
yen

yen

EPS

Operating EPS

1,547
yen

1,515

1,590
yen

yen

1,118
yen

Dividend Per ShareEPS

Operating EPS

Dividend Per Share* Operating EPS: Earnings per share excluding the effects of one-off financing-related costs (refinancing up-fronts, etc.)© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

25

Appendix: Loan Details and Leasing & Portfolio Data

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

26

January 9, 2015 (Expected) Loan Details (1)Borrowing
Aozora Bank Syndicate Loan

LenderAozora Bank, Ltd.; Shinsei Bank, Limited; ORIX Bank Corporation

Kagawa Bank Loan

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
The Kagawa Bank, Ltd.

Shinsei Trust Loan

Shinsei Trust & Banking Co., Ltd. (funded by Ichigo Group)

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

SMBC & Mizuho Trust Bank
Syndicate Loan I (Term Loan 2)
SMBC
Syndicate Loan I (Term Loan 4)
Shinsei Bank Syndicate Loan I

Shinsei Bank Syndicate Loan II
SMBC Syndicate Loan II (Term Loan 1)

Sumitomo Mitsui Banking Corporation;
Mizuho Trust & Banking Co., Ltd.; Aozora Bank, Ltd.; Shinsei Bank, Limited;
Resona Bank, Limited.
Sumitomo Mitsui Banking Corporation; Mizuho Trust & Banking Co., Ltd.;
Resona Bank, Limited; The Tokyo Star Bank, Limited
Shinsei Bank, Limited; MetLife inc.; Prudential Mortgage Asset Holdings 1
Japan LPS; Shinsei Trust & 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 Investment LPS managed by AXA Real Estate Investment
Managers Japan KK)
Sumitomo Mitsui Banking Corporation; Shinsei Bank, Limited; Resona Bank,
Limited.; Aozora Bank, Ltd.

Balance(million yen)

Borrowing Rate

Drawdown Date

Maturity Date

4,525

1.60269%

August 31, 2012

February 27, 2015

4,999

1.29364%

May 09, 2012

April 30, 2015

4,502

1.19364%January 31, 2013

October 31, 2015

1,344

1.37091%

November 30, 2010

November 30, 2015

1,100

2.85000%

January 30, 2013

November 30, 2015

1,827

1.91575%

May 09, 2012

April 30, 2017

4,502

1.64777%

January 31, 2013

October 31, 2017

4,809

1.74777%

January 31, 2013

November 30, 2017

3,332

1.76429%

March 18, 2013

March 16, 2018

3,672

1.79372%

June 03, 2013

May 31, 2018

SMBC Syndicate Loan II (Term Loan 2)

Sumitomo Mitsui Banking Corporation; Mizuho Bank; Shinsei Bank; Aozora
Bank

3,980

1.46856%

December 10, 2013

November 30, 2018

Resona Bank Syndicate Loan

Resona Bank; The Bank of Fukuoka

2,000

1.09364%

April 30, 2014

April 30, 2019

6,495

1.07000%

August 01, 2014

July 31, 2019

1,500

0.81758%

December 15, 2014

June 15, 2018

1,500

TBD

January 09, 2015

June 15, 2018

5,500

1.03369%

December 15, 2014

December 16, 2019

5,500

1.26750%

December 10, 2014

December 10, 2020

61,091TBD

SMBC Syndicate Loan II (Term Loan 3)

SMBC Syndicate Loan II (Term Loan 5)

SMBC Syndicate Loan II (Term Loan 7)

SMBC Syndicate Loan II (Term Loan 6)

SMBC Syndicate Loan II (Term Loan 4)
Total

Sumitomo Mitsui Banking Corporation;
Mizuho Bank; Resona Bank, Limited.; Shinsei Bank, Limited; Aozora Bank,
Ltd.; The Kagawa Bank, Ltd.; ORIX Bank Corporation
Sumitomo Mitsui Banking Corporation;
Mizuho Bank; Aozora Bank, Ltd.; Shinsei Bank, Limited; The Bank of TokyoMitsubishi UFJ, Ltd.; Resona Bank, Limited; The Kagawa Bank, Ltd.; ORIX
Bank Corporation
Sumitomo Mitsui Banking Corporation;
Mizuho Bank; Aozora Bank, Ltd.; Shinsei Bank, Limited; The Bank of TokyoMitsubishi UFJ, Ltd.; Resona Bank, Limited; ORIX Bank Corporation
Sumitomo Mitsui Banking Corporation;
Mizuho Bank; Aozora Bank, Ltd.; Shinsei Bank, Limited; The Bank of TokyoMitsubishi UFJ, Ltd.; Resona Bank, Limited
Sumitomo Mitsui Banking Corporation;
Mizuho Bank; Aozora Bank, Ltd.; Shinsei Bank, Limited; The Bank of TokyoMitsubishi UFJ, Ltd.; Resona Bank, Limited© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

27

January 9, 2015 (Expected) Loan Details (2)■ Distribution of Repayment Dates(million yen)
20,00015,00010,000

9,517
7,530
6,581
4,450

5,000

5,900

6,422
5,431

5,417

4,310
2,430

1,765

0
Oct 2014 April 2015 Oct 2015 April 2016 Oct 2016 April 2017 Oct 2017 April 2018 Oct 2018 April 2019 Oct 2019 April 2020 Oct 2020 April 2021

■ Fixed-to-Floating Rate Ratio

Fixed: 74.1%

Floating:
25.9%© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

Fixed rate increase vsOctober 2014

+ 1.2%
28

October 31, 2014 Loan Details (1)Borrowing

LenderBalance(million yen)

Borrowing Rate

Drawdown Date

Maturity Date

Aozora Bank Syndicate Loan

Aozora Bank, Ltd.; Shinsei Bank, Limited; ORIX Bank Corporation

5,184

1.60269%

August 31, 2012

February 27, 2015

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

Sumitomo Mitsui Banking Corporation;
Mizuho Trust & Banking Co., Ltd.; Aozora Bank, Ltd.; Shinsei Bank,
Limited; Resona Bank, Limited.

4,999

1.29364%

May 9, 2012

April 30, 2015

SMBC
Syndicate Loan I (Term Loan 3)

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

6,814

1.19364%January 31, 2013

October 31, 2015

Kagawa Bank Loan

The Kagawa Bank, Ltd.

1,358

1.40455%

November 30, 2010

November 30, 2015

Shinsei Trust Loan

Shinsei Trust & Banking Co., Ltd. (funded by Ichigo Group)

1,100

2.85000%

January 30, 2013

November 30, 2015

5,333

1.91575%

May 9, 2012

April 30, 2017

6,814

1.64777%

January 31, 2013

October 31, 2017

4,834

1.74777%

January 31, 2013

November 30, 2017

3,349

1.76429%

March 18, 2013

March 16, 2018

3,672

1.79372%

June 3, 2013

May 31, 2018

SMBC & Mizuho Trust Bank
Syndicate Loan I (Term Loan 2)
SMBC
Syndicate Loan I (Term Loan 4)
Shinsei Bank Syndicate Loan I

Shinsei Bank Syndicate Loan II
SMBC Syndicate Loan II (Term Loan 1)

Sumitomo Mitsui Banking Corporation;
Mizuho Trust & Banking Co., Ltd.; Aozora Bank, Ltd.; Shinsei Bank,
Limited; Resona Bank, Limited.
Sumitomo Mitsui Banking Corporation; Mizuho Trust & Banking Co.,
Ltd.; Resona Bank, Limited; The Tokyo Star Bank, Limited
Shinsei Bank, Limited; MetLife inc.; Prudential Mortgage Asset
Holdings 1 Japan LPS; Shinsei Trust & 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 Investment LPS managed by AXA Real
Estate Investment Managers Japan KK)
Sumitomo Mitsui Banking Corporation; Shinsei Bank, Limited;
Resona Bank, Limited.; Aozora Bank, Ltd.

SMBC Syndicate Loan II (Term Loan 2)

Sumitomo Mitsui Banking Corporation; Mizuho Bank; Shinsei Bank;
Aozora Bank

3,980

1.46856%

December 10, 2013

November 30, 2018

Resona Bank Syndicate Loan

Resona Bank; The Bank of Fukuoka

2,000

1.09364%

April 30, 2014

April 30, 2019

SMBC Syndicate Loan II (Term Loan 3)

Sumitomo Mitsui Banking Corporation;
Mizuho Bank; Resona Bank, Limited.; Shinsei Bank, Limited; Aozora
Bank, Ltd.; The Kagawa Bank, Ltd.; ORIX Bank Corporation

6,495

1.07000%

August 1, 2014

July 31, 201955,9361.52000%

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

29

October 31, 2014 Loan Details (2)■ Distribution of Repayment Dates(million yen)
20,00015,000

10,15810,000

7,530

6,762

6,622

5,900

5,271

6,422

5,000

3,607

2,430

0
Oct 2014

April 2015

Oct 2015

April 2016

Oct 2016

April 2017

Oct 2017

April 2018

Oct 2018

April 2019Oct 2019■ Fixed-to-Floating Rate Ratio

Fixed: 72.9%

Floating:
27.1%© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

Fixed rate increase vsApril 2014

+ 11.5%30

Unrealized Portfolio Gains: Appraisal Value > Book Value
Unrealized Gains of JPY 1.75B (+ JPY 1.74B vs. April 2014)(million yen)
140,000

2.00%
Book Value

Appraisal
Value
Appraisal
Value

Porf olio %Unrealized Gain/Loss

1.55%

0.01%
130,000

0.00%-1.57%
120,000-2.00%-2.95%-2.85%-3.88%

111,050

114,182
113,022 113,034 112,433
109,305

110,000-4.00%
104,143

100,101

104,164

103,310

101,087

100,369

100,000-6.00%

90,000-8.00%

80,000-10.00%
Apr-12Oct-12

Apr-13Oct-13Apr-14Oct-142014年10月期(67 assets)(67 assets)(66 assets)(68 assets)(71assets)(70assets)© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

31

Lease Turnover
Change in Leased Area (Office + Other)as a Result of New Contracts and Contract Terminations

Occupancy (as of October 2014)

Asset Type

Contract
Terminations

UpwardNo.

Area

Office +Other

21

Residence

71

4,583 ㎡

Rent (for entire
period)Change from
Previous Rent

- 115 mm yen－（㎡）

10,0008,000

2,327 ㎡

- 57 mm yen

100.0%
Terminations

New Contracts

Occupancy

7,914

98.0%

－

6,171

Total

92

6,910 ㎡

- 172 mm yen

－

6,000

Office +
Other

7

762 ㎡

+25 mm yen+10.6%

4,000

Residence

27

859 ㎡

+21 mm yen

+3.8%

Total

34

1,621 ㎡

+46 mm yen

+7.4%

95.6%
95.0%
93.9%

3,852

5,084
94.7%

3,932

95.4%

4,592
94.0%

2,000

92.0%
91.5%

0

90.0%
April 2012

Flat
New
Contracts

Office +
Other

3

452 ㎡

+9 mm yen－

Residence

12

443 ㎡

+10 mm yen

－

Total

15

895 ㎡

+19 mm yen－

October 2012

April 2013

October 2013

April 2014

October 2014

2,000

88.0%

3,270

4,000

4,439

4,942

86.0%

4,583

6,000

Downward

96.0%

84.0%

6,275

Office +Other

15

3,377 ㎡

+73 mm yen-13.8%

Residence

28

826 ㎡

+21 mm yen

-7.3%

Total

43

4,203 ㎡

+94 mm yen-12.4%

8,000

82.0%

8,315
10,000© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

80.0%

32

Incentives
Change in Leased Area (Office + Other)as a Result of New Contracts and Contract Terminations

Rent Income Loss due to Free Rent
(Office + Other)(million yen)

# of months

6.0
Average of Metropolitan Area
4,500

Average of Regional Cities

Loss from Free Rent
Free Rent Ratio

5.0

0.0%

Actual Rent Income

5.0

-1.0%
-1.5%

-0.7%

-1.5%

-2.0%

4.0

3.1

3.1

27

-3.7%

3.9
3.9

41

4,000

4.0

73

3.6

3.0

2.5

3.0
2.7

5.0%

59

142

55

3,500

3,984
3,741

2.0

2.0

2.0

3,912

3,785

3,614

3,579

October 201249 assets

April 2013
48 assets

3,000

10.0%

1.0

2,500

0.0
April 2012

October 2012

April 2013

Total Average:
Tokyo Metropolitan Area Average:
Other Regional Cities Average:

October 2013

April 2014

October 2014

15.0%
April 201249 assets

October 201350 assets

April 201453 assets

October 201452 assets

2.8 months
2.7 months
3.0 months© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

33

Total Leased Area

New Leases/ Floor space
expansion

Lease Terminations-6,910m2

Asset Sale

-475m2+6,720m2

163,628 m2

162,963m2

April 2014

October 2014

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

34

Total Leased Area by Asset Class(m2)
End of April 2014

Lease
Terminations

End of October 2014

Change in
Existing Assets

Office110,278-3,262

-

-437

4,364

110,943+1,102

Residence

27,358-2,327

-38

-

2,128

27,121

-237

Other

25,992-1,321--

228

24,898-1,093

Total

163,628-6,910

-38

-475

6,720

162,963-228

SA Ginza*

New
Contracts

Asset Sale

*The decrease in Leased Area for reflects change between the beginning and ending of fiscal period October 2014 at Ichigo Serviced
Apartments Ginza© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

35

97.5% of Lease Renewals at Existing Rent or Higher(# of tenants / million yen)

UpwardDownward

Flat

Asset TypeNo.

Leased Areas

Rent(Entire Period)

Change from
Previous Rent

Office + Other

0

－

－

－

Residence

1

33 m2

+1 million yen+17.7%

Total

1

33 m2

+1 million yen+17.7%

Office + Other

3

2,915 m2

-4 million yen-5.5%

Residence

12,618 m2

-3 million yen

-7.6%

Total

4

5,533 m2

-7 million yen-6.1%

Office + Other

107

22,885 m2－－

Residence

48

1,529 m2

－

－

Total

155

24,414 m2－－

Renewedleases160/686

Other
699/2,835

Upward1/1

Downward
4/110

Flat
(195Flat/ 799)
155/575© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

36

Renewals at Reduced Rents Decreasing
Rental reduction (Office + Other)

(m2)

7,000

6,000

Reduced area
Reduction rate

5,945

10.00%

5,000

4,539
3,844

4,000

0.00%

3,304
2,915

3,000

2,000

1,000

2,211

- 5.2
%

-13.4
%

- 12.5
%

-15.9
%

- 5.5
%

-10.00%- 18.2%0-20.00%April 2012

October 2012

April 2013

October 2013

April 2014

October 2014

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

37

Change in Net Monthly Rent vs. April 2014 Period

Lease Terminations
Terminations

New Tenants-29 mm yen+27 mm yen

Revisions-1 mm yen

Change by tenant movements

Asset Sales-2 mm yen
Change bycontract renewal-1 mm yen

- 2 mm yen

Change byasset sale

- 2 mm yen

657 mm yen

663 mm yen
Change during the period-6 mm yen(-0.3%)End of April 2014

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

End of October 201438

Change in Monthly Rent by Asset Type(million yen)
End of April
2014

Lease
Terminations

New
Contracts

Office

453

-14

16

Residence

99

-9

Other

111

Total

663

End ofOctober 2014

Changes

Changesfrom Existing
Assets

-2

451

-1

+1

0

0

98

-2

-2

-0

0

0

108

-3

-3

-1

0

-2

657

-6

-4

Downward

Asset
Acquisitions

0

-1

0

9

0

-1

-5

2

0

-29

27

0

Upward

Asset
Sales

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

39

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%

19.21%

15.69%

15.45%
14.58%

15.00%
13.63%

10.57%

14.54%

15.09%

13.66%
14.54%

14.03%
12.01%

12.15%

9.78%

10.95%

10.00%

8.84%

8.91%
8.90%

7.40%
6.74%

7.12%

8.31%
6.09%

8.42%
8.19%
6.83%

5.00%

* Rent gap is premium in % of current rent vs. market rent (market rent from CBRE Co., Ltd).
0.00%
April 2012
October 2012
April 2013
October 2013
April 2014
© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

October 201440

Highly Diversified Tenant Mix
As of October 31, 2014

Tenant Profiles
by Sector* Based on # of Tenants

Other
Real Estate 6%
3%
Education
Welf are 3%
3%

Finance6%

Total Number of Tenants: 500
Service*26%

Top 5 Tenants
13.3% by Area
12.9% by Rental Income

Manufacturing
9%

IT
16%

Restaurant,
Hotel
12%
Retail16%* “Service” includes advertising agencies, consulting firms, accounting firms,
law firms, HR firms, beauty salons, and domestic and foreign government
offices, etc.
© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

41

Increased Tenant Satisfaction
Regular Tenant Satisfaction Survey to Understand Tenant Needs
 Results drive building improvements, value-add enhancements, and tenantfocused capital expenditures
Overview
Date of Survey

August 2014

No. of Assets

53

Research Company

INTAGE Inc.

No. of Distributed Surveys

473

Respondents

General Affairs Personnel of the Tenant

Response Rate

84.2%

Satisfaction Survey Results
Satisfied

2014年
Results

Somewhat Satisfied Neither Satisfied or Dissatisfied

20.1%

Somewhat Dissatisfied Dissatisfied

53.6%

18.5%

7.0% 0.8%

2011年
Results

14.5%

57.6%

19.1%

6.9% 1.9%

2009年
Results

15.1%

57.1%

17.9%

8.0% 1.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

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

90%

100%
42

Mid-Size Office Market Trend
Office Rent by Size (Tokyo Central 3 Wards)

Office Rent of Ichigo REIT-Owned Offices
3.0%

120

Total
Tokyo
Other Regional Areas

Large scale (Tokyo Central 3 Wards)
Large size (Tokyo Central 3 Wards)
2.0%

Mid size (Tokyo Central 3 Wards)
Ichigo REIT (Tokyo Central 3 Wards)

100

1.0%

0.0%

80

-1.0%

-2.0%

60

-3.0%

-4.0%

40
2008/04

2009/04

2010/04

2011/04

2012/04

2013/04

2014/04-5.0%
Apr-07

Apr-08Apr-09Apr-10

Apr-11

Apr-12

Apr-13Apr-14(Reference) Data released by Sanko Estate Co., Ltd.
(Note) Tokyo Central 3 wards refers to Chiyoda-ku, Chuo-ku, Minato-ku (Ichigo REIT assets excludes newly acquired and sold assets)(Note) Large scale refers to buildings area of standard floors with over 200 tsubo; Large size refers to those of 100 to 200 tsubo; Mid size refers to those of<100 tsubo.
(Note) The vertical axis shows the index with the basis of FY April 2008 as 100.
© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

43

October 2014 Portfolio (Pre-PO & Asset Sale)
As of October 31, 2014

By UsePortfolio Overview
No. of Assets

Other
17%

70

Total Acquisition Price 114,062 mm yen
Total Appraisal Value

114,182mm yen

Leasable Area

170,306 m2

Occupancy

Sapporo0.5
1%

Office66%

By Price

95.7%

Tokyo
Metro
Area
85.5
75%

Kansai
7.4
6%

0~1B
15%

Sendai
0.5
1%

3B~
31%

Nagoya
12.2
11%

2~3B
14%

Other
7.0
5%

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

1~2B
40%

By Age30 years~
20%

Fukuoka

0.6
1%

Residence17%

0~10 years
27%

20~30 years
29%
10~20 years
24%

Average:19.2 years© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

44

Portfolio Details (1)As of October 31, 2014

Use

OfficeNo.

Property

Area

Address

AcquisitionPrice(mm yen)Book Value(mm yen)

NRA (m 2)

Occupancy(%)

Oct 2014 Appraisal
Value(mm yen)

Cap rate(%)

O-02

Ichigo Nishisando Building

Central Tokyo

Yoyogi, Shibuya-ku, Tokyo

3,254

3,448

4,564.63

93.6%

2,640

4.9%

O-03

Ichigo Mita Building

Central Tokyo

Shiba, Minato-ku, Tokyo

2,740

2,767

4,097.63

100.0%

2,826

4.9%

O-04

Ichigo Nanpeidai Building

Central Tokyo

Nanpeidaicho, Shibuya-ku, Tokyo

1,920

1,943

1,925.24

90.0%

1,890

4.2%

O-05

Ichigo Hanzomon Building

Central Tokyo

Hayabusacho, Chiyoda-ku, Tokyo

1,550

1,544

2,080.37

92.5%

1,590

4.6%

O-06

Ichigo Hijirizaka Building

Central Tokyo

Mita, Minato-ku, Tokyo

1,200

1,224

1,947.90

100.0%

1,280

5.1%

O-07

Ichigo Shibuya Kamiyamacho Building Central Tokyo

Kamiyamacho, Shibuya-ku, Tokyo

1,505

1,451

1,321.54

100.0%

1,650

4.5%

O-08

Ichigo Akasaka 5 Chome Building

Central Tokyo

Akasaka, Minato-ku, Tokyo

735

733

687.78100.0%

742

4.4%

O-09

Ichigo Shibakoen Building

Central Tokyo

Shiba, Minato-ku, Tokyo

1,100

1,115

1,602.29

100.0%

1,040

5.0%

O-10

Ichigo Ebisu-Nishi Building

Central Tokyo

Ebisu-nishi, Shibuya-ku, Tokyo

1,917

1,920

1,484.39

100.0%

1,962

4.7%

O-11

Ichigo Ginza 612 Building

Central Tokyo

Ginza, Chuo-ku, Tokyo

1,773

1,770

1,392.24

100.0%

1,860

4.6%

O-12

Ichigo Uchikanda Building

Central Tokyo

Uchikanda, Chiyoda-ku, Tokyo

1,140

1,145

1,378.82

100.0%

1,050

5.0%

O-14

Ichigo Yotsuya 4 Chome Building

Central Tokyo

Yotsuya, Shinjuku-ku, Tokyo

550

534

780.64

81.8%

559

4.8%

O-15

Ichigo Tameike Building

Central Tokyo

Akasaka, Minato-ku, Tokyo

580

559

494.14100.0%

577

4.5%

O-16

Ichigo Jimbocho Building

Central Tokyo

Kanda Jinbocho, Chiyoda-ku, Tokyo

1,820

1,825

1,889.54

77.8%

1,960

4.8%

O-17

Ichigo Hakozaki Building

Central Tokyo

Nihonbashi Kakigaracho, Chuo-ku, Tokyo

1,150

1,180

2,387.34

100.0%

1,010

5.1%

O-18

Ichigo Kudan 2 Chome Building

Central Tokyo

Kudan Minami, Chiyoda-ku, Tokyo

763

743

1,288.31

100.0%

831

4.9%

O-19

Ichigo Kudan 3 Chome Building

Central Tokyo

Kudan Minami, Chiyoda-ku, Tokyo

844

842

1,302.43

100.0%

780

5.0%

O-20

Ichigo Gotanda Building

Central Tokyo

Higashi-Gotanda, Shinagawa-ku, Tokyo

5,060

4,978

5,346.76

100.0%

5,370

5.2%

O-21

Ichigo Shin-Yokohama Building

Tokyo Metro Area Shinyokohama, Kohoku-ku, Yokohama City, Kanagawa

1,816

1,779

4,029.77

100.0%

1,733

5.6%

O-22

Ichigo Minami-Ikebukuro Building

Tokyo Metro Area Minami-Ikebukuro, Toshima-ku, Tokyo

1,460

1,409

1,491.51

100.0%

1,480

4.7%

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

45

Portfolio Details (2)As of October 31, 2014

Use

OfficeNo.

Property

Area

Address

AcquisitionPrice(mm yen)Book Value(mm yen)

NRA (m 2)

Occupancy(%)

Oct 2014 Appraisal
Value(mm yen)

Cap rate(%)

O-23

Ichigo Nakano North Building

Tokyo Metro Area Arai, Nakano-ku, Tokyo

764

775

1,250.85

88.9%

806

5.5%

O-24

Ichigo Eitai Building

Tokyo Metro Area Eidai, Koto-ku, Tokyo

1,490

1,488

2,608.05

100.0%

1,140

5.5%

O-25

Ichigo Yokosuka Building

Tokyo Metro Area Wakamatsu-cho, Yokosuka City, Kanagawa

971

966

2,187.44

91.4%

931

6.0%

O-26

Ichigo Ikejiri Building

Tokyo Metro Area Ohashi, Meguro-ku, Tokyo

2,030

2,010

2,385.69

100.0%

2,000

5.1%

O-27

Route Ikebukuro Building

Tokyo Metro Area Ikebukuro, Toshima-ku, Tokyo

639

631

1,261.91

100.0%

656

5.1%

O-28

Ichigo Nishi-Gotanda Building

Central Tokyo

765

754

1,311.21

100.0%

743

5.1%

O-29

Ichigo Kichijoji Building

Tokyo Metro Area Kichijoji Honcho, Musashino-shi, Tokyo

2,160

2,283

4,259.73

93.5%

2,240

5.5%

O-33

Ichigo Meieki Building

Four Major Cities Meieki, Nakamura-ku, Nagoya City, Aichi

837

790

2,063.52

100.0%

726

5.5%

O-34

Ichigo Sakae Building

Four Major Cities Sakae, Naka-ku, Nagoya City, Aichi

4,705

4,698

3,928.12

100.0%

5,042

5.3%

O-35

Ichigo Sendai Chuo Building

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

510

523

2,378.07

90.7%

427

6.0%

O-37

Ichigo Marunouchi Building

Four Major Cities Marunouchi, Naka-ku, Nagoya City, Aichi

6,710

6,345

8,009.11

94.3%

6,710

5.1%

O-38

Ichigo Toyamaeki-Nishi Building

Other Regional Cities Jinzuhonmachi, Toyama City, Toyama

1,650

1,587

8,601.71

96.2%

1,680

6.6%

O-39

Ichigo Mirai-Shinkin Building

Other Regional Cities Niagemachi, Oita City, Oita

1,158

1,148

3,551.46

87.8%

1,200

6.5%

O-40

Ichigo Saga Building

Other Regional Cities Ekimae-Chuo, Saga City, Saga

659

704

2,786.43

95.3%

677

6.9%

O-42

Ichigo Takamatsu Building

Other Regional Cities Kotobukicho, Takamatsu City, Kagawa

3,010

2,744

6,329.33

100.0%

3,070

7.0%

O-44

Akita Sanno 21 Building

Other Regional Cities Sanno, Akita City, Akita

560

565

3,497.88

90.2%

571

7.7%

O-46

Ichigo Kanda-Nishikicho Building

Central Tokyo

Kandanishikicho, Chiyoda-ku, Tokyo

2,130

2,097

2,523.09

100.0%

2,400

4.5%

O-47

Ichigo Akiharaba North Building

Central Tokyo

Sotokanda, Chiyoda-ku, Tokyo

5,500

5,484

6,250.53

100.0%

5,960

5.0%

O-48

Ichigo Sakaisuji Honmachi Building Four Major Cities Honmachi, Chuo-ku, Osaka-shi, Osaka

1,940

1,916

3,729.29

100.0%

2,140

5.1%

O-49

Ichigo Kanda Ogawamachi Building Central Tokyo

Kanda-Ogawamachi, Chiyoda-ku, Tokyo

2,210

2,215

2,258.72

68.8%

2,260

4.8%

O-50

Ichigo Hatchobori Building

Shintomi, Chuo-ku, Tokyo

1,905

1,926

2,697.36

100.0%

2,290

5.1%

75,18074,576

115,362.77

96.2%

76,499Central Tokyo

Nishigotanda, Shinagawa-ku, Tokyo

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

46

Portfolio Details (3)As of October 31, 2014

Use

Residence

No.

Property

Area

Address

AcquisitionPrice(mm yen)Book Value(mm yen)

NRA (m 2)

Occupancy(%)

Oct 2014 Appraisal
Value(mm yen)

Cap rate(%)

R-01

ForeCity Roppongi

Central Tokyo

Roppongi, Minato-ku, Tokyo

1,730

1,678

1,663.87

94.5%

1,480

4.7%

R-02

ForeCity Azabujuban

Central Tokyo

Mita, Minato-ku, Tokyo

1,140

1,097

1,111.20

93.8%

1,140

4.6%

R-03

ForeCity Azabujuban No.2

Central Tokyo

Mita, Minato-ku, Tokyo

1,250

1,211

1,177.20

97.2%

1,210

4.6%

R-04

Bureau Takanawadai

Central Tokyo

Shirokanedai, Minato-ku, Tokyo

1,360

1,309

1,677.88

100.0%

1,010

4.7%

R-05

ForeCity Shirokanedai

Central Tokyo

Shirokanedai, Minato-ku, Tokyo

824

784

927.90

97.5%

756

4.7%

R-06

B-Site Hamamatsucho

Central Tokyo

Hamamatsucho, Minato-ku, Tokyo

R-07

ForeCity Akihabara

Central Tokyo

Kanda Sakumacho, Chiyoda-ku, Tokyo

R-08

Suite One Court

Central Tokyo

R-09

B-site Ginza East

Central Tokyo

R-10

ForeCity Sasazuka

Central Tokyo

R-11

Gran Presso Kawadacho

Central Tokyo

R-12

ForeCity Sakurashinmachi

Tokyo Metro Area Sakurashinmachi, Setagaya-ku, Tokyo

R-13

ForeCity Shinkamata

Tokyo Metro Area Shinkamada, Ota-ku, Tokyo

R-14

ForeCity Nakaochiai

Central Tokyo

Nakaochiai, Shinjuku-ku, Tokyo

R-15

ForeCity Tomigaya

Central Tokyo

Tomigaya, Shibuya-ku, Tokyo

R-16

ForeCity Ryogoku

R-17

ForeCity Toyosu
ForeCity Nishihonmachi

Four Major Cities Nishihonmachi, Nishi-ku, Osaka City, Osaka

927

Subtotal - Residence

20,005

R-18

701

678

821.84100.0%

577

4.8%

2,520

2,411

3,452.29

100.0%

2,120

4.8%

Irifune, Chuo-ku, Tokyo

786

747

1,030.54

90.4%

690

4.8%

Shintomi, Chuo-ku, Tokyo

946

913

1,020.14

81.7%

797

4.8%

Sasazuka, Shibuya-ku, Tokyo

1,050

1,009

1,452.61

100.0%

938

4.8%

Kawadacho, Shinjuku-ku, Tokyo

592

592

667.16

94.2%

519

4.8%

932

890

1,182.96

92.5%

795

4.8%

1,040

978

1,756.33

96.3%

1,020

5.0%

435

438

599.30100.0%

372

4.9%

1,341

1,325

2,105.94

93.4%

1,660

4.7%

Tokyo Metro Area Midori, Sumida-ku, Tokyo

1,080

1,024

1,572.39

100.0%

1,080

4.9%

Tokyo Metro Area Shinonome, Koto-ku, Tokyo

1,349

1,319

3,058.24

100.0%

1,700

5.0%

897

2,675.88

100.0%

1,040

5.3%

19,30927,953.67

97.0%

18,904© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

47

Portfolio Details (4)As of October 31, 2014

Use

Other

No.

Property

Area

Address

AcquisitionPrice(mm yen)Book Value(mm yen)

NRA (m 2)

Occupancy(%)

Oct 2014 Appraisal
Value(mm yen)

Cap rate(%)

Z-01

Falcon Shinsaibashi Building

Four Major Cities

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

3,410

3,127

5,760.79

87.3%

2,810

5.2%

Z-02

Fiesta Shibuya

Central Tokyo

Udagawacho, Shibuya-ku, Tokyo

1,970

1,986

1,185.85

90.7%

2,010

4.5%

Z-03

Burg Omori

Tokyo Metro Area

Omorikita, Ota-ku, Tokyo

3,218

3,182

5,345.62

82.2%

2,910

6.0%

Z-04

Pagoda Asakusa

Tokyo Metro Area

Kaminarimon, Taito-ku, Tokyo

1,640

1,607

2,091.26

100.0%

1,740

5.0%

Z-05

Regalo Building

Tokyo Metro Area

Haramachida, Machida City, Tokyo

1,310

1,298

2,183.65

86.5%

1,400

5.4%

Z-06

Ichigo Yokohama-Nishiguchi Building

Tokyo Metro Area

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

903

902

1,264.26

100.0%

936

5.4%

Z-07

El Centro Sapporo

Four Major Cities

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

558

553

1,162.52

100.0%

528

5.8%

Z-08

Daimyo Balcony

Four Major Cities

Daimyo, Chuo-ku, Fukuoka City, Fukuoka

638

611

765.61100.0%

615

5.4%

Z-09

Konami Sports Club Izumi Fuchu

Other Regional Cities

Fuchucho, Izumi-shi, Osaka

1,210

1,189

3,733.68

100.0%

1,330

6.2%

Z-10

Ichigo Shibuya Bunkamura-Dori Building

Central Tokyo

Udagawa-cho, Shibuya-ku, Tokyo

2,400

2,482

778.77100.0%

2,730

3.9%

Z-11

Twicere Yokohama Isogo (Retail Section) Tokyo Metro AreaMori, Isogo-ku, Yokohama City, Kanagawa

1,620

1,606

2,717.77

100.0%

1,770

5.7%

Subtotal - Other

18,877

18,54826,989.78

92.3%

18,779Total (70 Assets)

114,062

112,433

170,306.22

95.7%

114,182© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

48

April 2015 Scheduled Acquisitions
As of October 31, 2014

Use

OfficeOther

No.

Property

Area

Address

AcquisitionPrice(mm yen)Acquisition
Date

NRA (m 2)

Occupancy(%)

AppraisalValue(mm yen)

Cap rate(%)

O-51

Ebisu Green GlassCentral Tokyo

Ebisu-Minami, Shibuya-ku, Tokyo

5,900

2014/12/10

3,159.27

90.6%

5,940

4.1%

O-52

Ichigo Omori Building

Central Tokyo

Minami-Ooi, Shinagawa-ku, Tokyo

3,850

2014/12/15

3,624.22

100.0%

3,920

4.9%

O-53

Ichigo Takadanobaba Building

Central Tokyo

Takadanobaba, Shinjuku-ku, Tokyo

1,580

2014/12/15

1,606.92

100.0%

1,630

4.7%

O-54

Ichigo Omiya Building

Tokyo Metro Area

Miyacho, Omiya-ku, Saitama City, Saitama

3,430

2014/12/10

6,249.54

99.2%

3,520

5.7%

O-55

Ichigo Sagamihara Building

Tokyo Metro Area

Sagamihara, Chuo-ku, Sagamihara City, Kanagawa

1,174

2015/01/09

2,959.38

100.0%

1,190

6.0%

O-56

Ichigo Ofuna Building

Tokyo Metro Area

Ofuna, Kamakura City, Kanagawa

2,0002014/12/15

2,364.67

96.8%

2,030

5.8%

O-57

Ichigo Sendai East Building

Other Regional Cities

Miyagino, Miyagino-ku, Sendai City, Miyagi

1,840

2014/12/10

5,213.09

100.0%

1,890

6.3%

O-58

Ichigo Kumamoto Building

Other Regional Cities

Karashimacho, Chuo-ku, Kumamoto City, Kumamoto 1,450

2014/12/15

4,499.08

100.0%

1,460

6.3%

Z-12

Lions Square Kawaguchi

Tokyo Metro Area

Motogo, Kawaguchi City, Saitama

2,430

2014/12/15

7,788.09

100.0%

2,500

5.1%

Z-13

Ichigo Shin-Yokohama Arena-Dori Building Tokyo Metro Area

Shin-Yokohama, Kohoku-ku, Yokohama City, Kanagawa
1,700

2014/12/15

1,971.34

100.0%

1,730

5.5%

Z-14

Ichigo Kamata Building

Nishi-Kamata, Ota-ku, Tokyo

1,400

2015/01/09

2,124.68

100.0%

1,410

5.1%

Tokyo Metro Area

Newly Acquired (11 Assets)Subtotal

26,754

41,560.28

99.0%

27,220Total of 66 Assets = Assets owned as of Oct 31, 2014 (70) - Sold Assets (15)+ Acquired Assets (11)123,818

187,432.69

96.2%

124,882© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

49

Acquisition: Ebisu Green Glass (O-51)

Acquisition Price

5,900 million yen

Appraisal Value

5,940 million yen

NOI Yield

4.2%

Asset Type

OfficeAddress

Ebisu-Minami, Shibuya-ku, Tokyo

Leasable Area

3,159.27m2

Structure

S

Construction Date

Oct 2009

Occupancy

90.6%

B1F / 9F

Location & Features
・ 4-minute walk from Yamanote Line and 2-minute walkfrom Hibiya Line of Ebisu Station
・ An area attracting wide variety of companies, especiallyIT, after opening of Yebisu Garden Place・High visibility on the corner of Komazawa Dori・ No pillars on large open floors; 2.65-meter high ceiling.
・ Equipped with high-spec IT network and a robust
security system to meet the needs of IT industry tenants
・ Eco-friendly features including solar panels and rainwater recycling system© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

50

Acquisition: Ichigo Omori Building (O-52)

Acquisition Price

3,850 million yen

Appraisal Value

3,920 million yen

NOI Yield

5.1%

Asset Type

OfficeAddress

Minami-Ooi, Shinagawa-ku, Tokyo

Leasable Area

3,624.22m2

Structure

S / SRC

Construction Date

Jul 1992

Occupancy

100%

B1F / 8F

Location & Features
・ Conveniently located to both JR Omori and JR Omori
Kaigan Stations offering excellent CBD and Haneda
Airport access・ Near large-scale shopping facilities such as Omori
Belport・ With Haneda Airport expanding and globalizing, CBD
and retail shift underway
・ Architectural glass curtain wall with great lighttransmission
・ Café and convenience store on the first floor• Common area fully renovated in 2007.

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

51

Acquisition: Ichigo Omiya Building (O-54)

Acquisition Price

3,430 million yen

Appraisal Value

3,520 million yen

NOI Yield

6.6%

Asset Type

OfficeAddress

Miyacho, Omiya-ku, Saitama City,
Saitama

Leasable Area

6,249.54m2

Structure

RC

Construction Date

Nov 1986

Occupancy

99.2%

B1F / 7F

Location & Features
・ 9-minute walk from Omiya Station served by both JRand private railways.
・ Located at the heart of Saitama City within Saitama
Prefecture’s largest commercial and business district.
Steady demand for office leases from local companies
as well as branch offices of major companies
・ Good access facing major road with 63 parking spaces.
・ Well-configured and sub-dividable with a large floor
plate© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

52

Acquisition: Ichigo Sendai East Building (O-57)

Acquisition Price

1,840 million yen

Appraisal Value

1,890 million yen

NOI Yield

6.5%

Asset Type

OfficeAddress

Miyagino, Miyagino-ku, Sendai City,
Miyagi

Leasable Area

5,213.09m2

Structure

S

Construction Date

Sep 2008

Occupancy

100%

5F

Location & Features
・ Convenient train and car access, 3-minute walk from
JR Tsutsujigaoka Station and 15-minute walk from JR
Sendai Station and at the corner of Miyagino-dori, amajor Sendai traffic artery・ On the east side of Sendai station, an area where
redevelopment is in progress. Tokyo Metro Tozai Linewill be in service from 2015. In light of this, new hotels,
retail stores, and offices are starting to or planning to
open. Quickly becoming very active area.
・ Large, well-configured space on each floor. High 2.8
meter ceilings
・ 64 parking spaces are available, responding to tenantcommute needs© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

53

Acquisition: Ichigo Takadanobaba Building (O-53)

Acquisition Price

1,580 million yen

Appraisal Value

1,630 million yen

NOI Yield

5.3%

Asset Type

OfficeAddress

Takadanobaba, Shinjuku-ku, Tokyo

Leasable Area

1,606.92m2

Structure

SRC

Construction Date

Sep 1993

Occupancy

100%

B1F / 7F

Location & Features
・ 3- minute walk from Takadanobaba Station on the JR
Yamanote Line, Tokyo Metro Tozai Line, and Seibu
Shinjuku Line・ Offices are in demand from companies and branchesof companies wanting to keep office rent low
・ Medium-sized floor plate and 2.55 meter ceilings. The
building is highly competitive compared to otherbuildings in the area for its high specification.
・ The first floor is occupied by an Italian restaurant, andthe 2nd to 6th floor are leased as offices© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

54

Acquisition: Ichigo Sagamihara(O-55) & Ichigo Ofuna Building (O-56)
Ichigo Sagamihara(O-55)
Acquisition Price

1,174 million yen

Appraisal Value

1,190 million yen

NOI Yield

6.7%

Asset Type

OfficeAddress

Sagamihara, Chuo-ku, Sagamihara
City, Kanagawa

Leasable Area

2,959.38m2

Structure

SRC

Construction Date

May 1989

Occupancy

100%

7F

Ichigo Ofuna Building (O-56)
Acquisition Price

2,000 million yen

Appraisal Value

2,030 million yen

NOI Yield

6.0%

Asset Type

OfficeAddress

Ofuna, Kamakura City, Kanagawa

Leasable Area

2,364.67m2

Structure

RC

Construction Date

Apr 1973

Occupancy

96.8%© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

B1F / 8F

55

Acquisition: Ichigo Kumamoto(O-58) & Lions Square Kawaguchi (Z-12)
Ichigo Kumamoto(O-58)
Acquisition Price

1,450 million yen

Appraisal Value

1,460 million yen

NOI Yield

7.3%

Asset Type

OfficeAddress

Karashimacho, Chuo-ku, Kumamoto
City, Kumamoto

Leasable Area

4,499.08m2

Structure

S / SRC

Construction Date

Mar 1991

Occupancy

100%

Acquisition Price

2,430 million yen

Appraisal Value

2,500 million yen

NOI Yield

5.7%

Asset Type

Other (Retail)

Address

Motogo, Kawaguchi City, Saitama

Leasable Area

7,788.09m2

Structure

S / SRC

Construction Date

Jul 1998

Occupancy

100%

12F

Lions Square Kawaguchi (Z-12)© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

6F

56

Acquisition: Ichigo Shin-Yokohama (Z-13) & Ichigo Kamata (Z-14)
Ichigo Shin-Yokohama Arena-Dori (Z-13)

Ichigo Kamata Building(Z-14)

Acquisition Price

1,700 million yen

Appraisal Value

1,730 million yen

NOI Yield

5.7%

Asset Type

Other (Retail)

Address

Shin-Yokohama, Kohoku-ku,
Yokohama City, Kanagawa

Leasable Area

1,971.34m2

Structure

S 6F

Construction Date

Oct 2001

Occupancy

100%

Acquisition Price

1,400 million yen

Appraisal Value

1,410 million yen

NOI Yield

5.4%

Asset Type

Other (Retail)

Address

Nishi-Kamata, Ota-ku, Tokyo

Leasable Area

2,124.68m2

Structure

SRC

Construction Date

Jul 1986

Occupancy

100%(Expected to be acquired on January 9, 2015)© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

B1F / 6F

57

Appendix: About Ichigo REIT

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

58

Shareholder Composition
As of October 31, 2014

Number of Shares by Shareholder Type

Major Shareholders
Name

Shares #Share %

1

Ichigo Trust Pte. Ltd.

360,060

35%

2

Trust & Custody Service Bank, Ltd., Securities Investment Trust
Account

106,634

10%

3

Japan Trustee Service Bank, Trust Account

96,3569%

4The Master Trust Bank of Japan, Trust Account

84,791

8%

5

NOMURA BANK (LUXEMBOURG) S.A.

45,381

4%

6

BARCLAYS CAPITAL SECURITIES LIMITED

44,963

4%

7

MORGAN STANLEY & CO. INTERNATIONAL PLC

26,483

3%

8

The Nomura Trust and Banking Co., Ltd.

26,1483%

9

BNYM SA/NV FOR BNYM CLIENT ACCOUNT MPCS JAPAN

25,406

2%

10

JP MORGAN CHASE BANK 380180

13,204

1%

829,426

81%

Total

Domestic
Individuals &Others
115,801

Foreign
Corporations &Individuals
563,590

Financial
Institutions
334,008

Domestic
Corporations
12,924

Number of Shareholders by Type
Financial
Institutions
27

Domestic
Corporations
131

Foreign
Corporations &Individuals
118

Domestic
Individuals &Others
11,241© 2014 Ichigo Real Estate Investment Advisors Co., Ltd. Ichigo Real Estate Investment Corporation All rights reserved.

59

Ichigo REIT Overview
As of October 31, 2014

Name

Ichigo Real Estate Investment Corporation (Ichigo REIT)

Securities Code8975

Address

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

Executive Director

Yoshihiro Takatsuka

Portfolio

70 properties

Portfolio Value

114,062 million yen (based on acquisition price)

Fiscal Periods

May 1 – October 31 and November 1 – April 30

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.

60

Ichigo Branding (1)Striving to Enhance Recognition by Branding and Adding Value to Ichigo
Buildings and Improving Service Quality
 Updating building names to reflect their current status as Ichigo REIT 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.

61

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.

62

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 of
Ichigo REIT 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 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.
These materials have been created by the management of Ichigo REIT and Ichigo Real Estate Investment Advisors Co., Ltd.
(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.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.

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