Ichigo Preserves and Improves Real Estate

Ichigo Office REIT
Semi-Annual Report (Audited)
26th Fiscal Period
May 1, 2018 – October 31, 2018

Ichigo Office REIT Investment Corporation
Imperial Hotel Tower, 1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo 100-0011–1–

Message from Management
Dear Shareholders,
We extend our gratitude to all of you for your trust.
For the October 2018 fiscal period, Ichigo Office continued to give priority to growth investments in order to drive
shareholder value, as well as sustaining high occupancy and proactively negotiating to increase rents.
The acquisition of two mid-size offices (5.5 billion yen) was completed in May 2018 as part of the strategicacquisition and sales announced in April. Both assets are located in central Tokyo and can expect ongoing rental
growth. We also acquired a mid-size office with high leasing potential in Osaka (1.9 billion yen), using cash-on-handand debt. As a result, Ichigo Office’s AUM (assets under management) at the end of the fiscal period was 85 assets,with a total acquisition price of 199.9 billion yen.
For tailored leasing activities making full use of our value-add capex capabilities, we expanded our Ichigo Layout
Office portfolio. Our seventh Ichigo Layout Office at the Ichigo Jimbocho Building provides a comfortable working
environment to support changes in working practices, as well as installing a flexible layout to support the needs ofstartups and accommodate their expansion. Through these measures to increase tenant satisfaction, occupancy at theend of the period was 99.2%, continuing to maintaining an extremely high standard.
In terms of financing policy, we continue to focus on borrowing long-term and at fixed rates in order to hedge futureinterest rate risk. This conservative financing strategy led to a stronger credit rating from a major Japanese rating
agency.
As a result of these actions, Ichigo Office’s October 2018 results were operating revenue of 7,632 million yen,operating profit of 3,745 million yen, recurring profit of 2,958 million yen, and net income of 2,980 million yen.
Dividend per share was 2,014 yen, marking seventeen consecutive periods of dividend growth, ranking Ichigo OfficeNo.1 among all J-REITs.
Ichigo Office aims to drive sustainable growth and maximize shareholder value through growth investments thatreflect a full understanding of and responsiveness to the market environment.
Ichigo Office’s name comes from the ancient Japanese proverb, Ichigo Ichie, literally meaning “One lifetime, one
encounter.” We will continue to embrace this philosophy of sincerity and service. We work to build strong long-term
relationships to support the success of our clients, shareholders, and all stakeholders.
Thank you so much for your continued support.
Yoshihiro Takatsuka, Executive Director
Ichigo Office REIT Investment Corporation
Wataru Orii,
President and Representative Statutory Executive Officer
Ichigo Investment Advisors Co., Ltd.

–2–

Asset Management Overview

1 Historical Investment Performance
22nd Fiscal Period 23rd Fiscal Period 24th Fiscal Period 25th Fiscal Period 26th Fiscal Period
From May 1, 2016 to
October 31, 2016

Operating Revenue

From November 1,
2016 to April 30, 2017

From May 1, 2017 to
October 31, 2017

From November 1,
2017 to April 30, 2018

From May 1, 2018 to
October 31, 2018

million yen

7,090

7,352

7,530

9,062

7,632

(Real Estate Rental Income)million yen(7,074)(7,314)(7,530)(7,467)(7,632)

Operating Expenses

million yen

3,685

3,974

4,009

3,876

3,886

(Real Estate Rental Expenses)

million yen(2,921)(2,959)(3,004)(3,008)(2,993)Operating Profit

million yen

3,405

3,378

3,521

5,185

3,745

Recurring Profit

million yen

2,462

2,616

2,796

4,442

2,958

Net Income

million yen

2,462

2,615

2,796

4,441

2,980

Total Assets

million yen

210,951

210,573

217,585

219,028

221,807(Note 1)

(Period-on-Period Change)
Net Assets(Period-on-Period Change)%(15.6)(-0.2)

(3.3)

(0.7)

(1.3)

million yen

102,214

101,911

101,761

103,245

103,217%(9.5)(-0.3)(-0.1)(1.5)(-0.0)

million yen

67,67567,67567,67567,67567,675

Number of Shares Outstanding

shares1,532,287

1,532,287

1,532,287

1,532,287

1,532,287

Net Assets per Shareyen

66,706

66,50966,411

67,38067,361

million yen

2,917

2,946

2,957

3,009

3,086

Dividend per Share

yen

1,904

1,923

1,930

1,964

2,014

(Payable Dividend per Share)yen(1,904)(1,923)(1,930)(1,964)(2,014)(Dividend per Share in Excess of
Earnings)

yen

(―)

(―)

(―)

(―)

(―)

Shareholders’ Equity

Total Dividends

Ratio of Recurring Profit to Total
Assets(Note 2)%

1.3(2.5)

1.2(2.5)

1.3(2.6)

2.0(4.1)

1.3(2.7)

Return on Equity(Note 2)%2.5(5.0)

2.6(5.2)

2.7(5.4)

4.3(8.7)

2.9(5.7)

Shareholder Equity Ratio(Note 2)

%

48.5

48.4

46.8

47.1

46.5

%

(-2.7)(-0.1)(-1.6)(0.4)(-0.6)

%

118.4

112.7

105.8

67.7

103.5

(Period-on-Period Change)
Dividend Payout Ratio(Note 3)

Other Reference Information
Number of Assets

assets

85

82

85

82

85

Number of Tenants at Period-End

tenants

892

897

918

891

923

Total Leasable Aream2

257,142.35

253,545.89

262,751.74

255,487.63

263,440.38

Occupancy at Period-End

%

98.2

98.6

98.1

99.0

99.2

Depreciation

million yen

921

923

927

914

857

Capital Expenditures

thousand yen

454,851

570,887446,991

395,979

453,299

NOI (Net Operating Income)(Note 2)

million yen

5,073

5,279

5,454

5,373

5,496

FFO (Funds from Operations) per
Share(Note 2)

yen

2,204

2,285

2,430

2,454

2,489

days

184

181

184

181

184

Number of Days in the Period(Note 1) Operating revenue, etc. do not include consumption tax or local consumption tax (hereinafter “consumption taxes”).
(Note 2) The indicators stated are calculated using the formulas below. Figures in parentheses are annualized values.
Ratio of Recurring Profit toTotal Assets

Recurring Profit / (Total Assets at Beginning of Period + Total Assets at End of Period) ÷ 2

Return on Equity

Net Income / (Net Assets at Beginning of Period + Net Assets at End of Period) ÷ 2

Shareholder Equity Ratio

Net Assets at End of Period / Total Assets at End of Period

NOI

Real Estate Rental Income – Real Estate Rental Expenses + Depreciation

FFO per Share(Net Income + Depreciation + Loss on Retirement of Non-Current Assets + Expenses for Asset Retirement Obligations ±Gain (Loss) on Sales of Assets ± Extraordinary Profit (losses) / Number of Shares Outstanding(Note 3) Dividend Payout Ratio is calculated using the formula below and rounded down to the nearest unit:
Dividend per Share (not including dividend per share in excess of profits) / Net Income per Share
However, for the 22nd fiscal period, it is calculated using the formula below because new shares were issued during the period:
Total Dividends (not including dividends in excess of profits) / Net Income–3–2 Summary of Operating Results for the Fiscal Period Ending October 31, 2018
(1) Overview
In the fiscal period ending October 31, 2018, Ichigo Office’s 26th fiscal period, Ichigo Office worked to increase its attractiveness as a
specialized office REIT focusing on mid-size offices by acquiring three mid-sized offices. Ichigo Office also strengthened its organic
growth potential. Key action items during the period were: 1) driving increased asset value and investment efficiency through value-add
capex(Note) and 2) further development of the Ichigo Office brand. Ichigo Office seeks to construct a portfolio specializing in mid-sized
offices which can generate both earnings stability and earnings growth.
(Note) “Value-add capex” is capital expenditure that enhances the competitiveness and profitability of Ichigo Office assets.

(2) Market Environment and Investment Performance(i) Market Environment
During the current fiscal period, the Japanese economy continued its steady growth backed by the virtuous cycle of rising corporate andhousehold incomes leading to increased spending. Going forward, domestic demand is expected to maintain its growth trend supported
by consumer spending, with capital investments and employment continuing to improve as the economy expands under an easing
monetary environment. However, attention is required to the deceleration of domestic demand due to the potential influence of theconsumption tax increase scheduled for October 2019. As for the financial environment, long-term interest rates remain relatively low
under the Bank of Japan’s quantitative easing, so the borrowing environment remains favorable. On the other hand, a possible source ofconcern is monetary and economic policy changes by the United States and/or Europe affecting international financial markets.
In the real estate market, cap rates continue to fall, although the rate of decline has slowed as the financing environment continues to befavorable. Despite the low cap rates, demand is expected to remain strong for the time being due to severe competition in acquiring
assets of all types, making it more challenging to find good assets at reasonable prices.
Meanwhile, in the office leasing market, while a significant amount of new, large-floor office supply has become available in central
Tokyo, demand for this new supply remains robust, implying no excess in supply. Strong demand and limited vacancies mean rents canbe expected to continue to show stable growth. In particular, the supply-demand balance for the mid-size offices in which Ichigo Officespecializes continues to be tight.
(ii) Investment Performance
In order to strengthen its focus on mid-sized offices as a specialized office REIT, Ichigo Office strategically refocused its portfolio by
acquiring the Win Gotanda Building 2 (acquisition price: 3,300 million yen) and the MIF Building (acquisition price: 2,200 million yen)in May 2018 and selling three non-office retail assets. Ichigo Office also acquired the Ichigo Uchi Honmachi Building (acquisition price:
1,900 million yen), so the number of assets owned at the end of the current fiscal period was 85 assets (total acquisition price: 199,937
million yen).
By working to increase rents and occupancy, Ichigo Office has raised the profitability of its assets and grown portfolio NOI. During thecurrent fiscal period, Ichigo Office took actions to enhance the competitiveness and profitability of its assets, including the offering of
Ichigo Layout Office(Note), a flexible leasing format tailored to the needs of start-up growth companies, in the Ichigo Nagoya Building
and Ichigo Jimbocho Building. As a result of these efforts, the occupancy of the overall portfolio was 99.2% at the end of the current
fiscal period.
(Note) Ichigo Layout Office is Ichigo Office’s original leasing strategy that makes it quicker and less expensive for tenants to moveinto new offices by offering ready-made layouts with stylish designs and easy-to-use spaces (reception counters and spaces,
meeting rooms, etc.).

(3) Financing
In the current fiscal period, Ichigo Office borrowed a total of 4,546 million yen from banks in June 2018 and October 2018 to repay
loans that came due in each of those months (a total of 4,549 million yen). It borrowed 2,000 million yen in May 2018 to acquire Win
Gotanda Building 2 and MIF Building, and it borrowed 900 million yen in September 2018 to acquire Ichigo Uchi Honmachi Building.
To maintain a stable financial base, Ichigo Office diversifies repayment dates and is prudent about interest rate risk.

–4–(4) Earnings and Dividends
As a result of the management initiatives above, Ichigo Office recorded operating revenue of 7,632 million yen, operating profit of 3,745
million yen, recurring profit of 2,958 million yen and net income of 2,980 million yen for the fiscal period. With respect to dividends,
the dividend policy set out in Article 37 of the Articles of Incorporation of the Investment Corporation stipulates that the amount ofdividends shall exceed the amount equivalent to 90% of distributable earnings as provided for in Article 67-15, Paragraph 1 of the Act
on Special Measures Concerning Taxation (Act No. 26 of 1957 including subsequent amendments, hereinafter the “Special Measures
Taxation Act”).
Ichigo Office has voluntary reserves for temporary difference adjustments and dividends. Of these voluntary reserves, it uses temporary
difference adjustments of 105 million yen or more every period based on the revised Rules on Real Estate Investment Trusts and Real
Estate Investment Corporations in 2015 (hereinafter the “Rules of the Investment Trust Association, Japan”). Similarly, Ichigo Office
may use dividend reserves from the standpoint of stabilizing the dividend level, taking cash flows into account.
However, because Ichigo Office also has a tax loss carried forward (Note), mainly due to the loss on sales of real estate posted when assets
were transferred in the past for the purpose of improving portfolio quality, it may internally reserve profits if it has total net gains onsales of real estate assets and other profits from operations.
For this period, Ichigo Office has decided to distribute 3,086 million yen, which is the total amount of unappropriated retained earnings(2,981 million yen) and 105 million yen, which is the reversal of reserves for temporary difference adjustments. As a result, dividend
per share amounted to 2,014 yen.
(Note) The balance of tax losses carried forward owned by Ichigo Office is approximately 1.0 billion yen, and the expiration of the tax losses carrying forward period is the fiscal period
ending April 30, 2022. Restrictions regarding the maximum reduction of losses able to be included in deductible expenses will not be applied.

3 Issuance of New Shares
Increases and decreases in the total number of shares outstanding and the total amount of shareholders’ equity for the most recent five
years are as follows:
Date

Remarks

Number of Shares Outstanding(shares)
Increase/decrease

Balance

Shareholders’ Equity(million yen)
Increase/decrease

Notes

Balance

December 3, 2013

Public Offering

85,0001,017,823

4,929

25,289(Note 1)January 7, 2014

Greenshoe

8,500

1,026,323

492

25,782(Note 2)

December 3, 2014

Public Offering

95,6801,122,003

7,679

33,462(Note 3)

December 24, 2014

Greenshoe

8,320

1,130,323

667

34,130(Note 4)

May 1, 2015

Public Offering

271,700

1,402,023

23,41857,548(Note 5)

May 27, 2015

Greenshoe

14,3001,416,323

1,232

58,781(Note 6)

May 23, 2016

Public Offering

110,166

1,526,489

8,449

67,230(Note 7)

June 22, 2016

Greenshoe

5,798

1,532,287

444

67,675(Note 8)(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)

Ichigo Office issued new shares via public offering at an issue price of 60,157 yen per share (underwriting price of 57,997 yen) for the purpose of raising funds to acquire new
assets.
Ichigo Office issued new shares via a third-party allotment (Greenshoe) at an issue price of 57,997 yenper share for the purpose of repaying loans.
Ichigo Office issued new shares via public offering at an issue price of 83,167 yen per share (underwriting price of 80,266 yen) for the purpose of raising funds to acquire new
assets.
Ichigo Office issued new shares via a third-party allotment (Greenshoe) at an issue price of 80,266 yen per share for the purpose of repaying loans.
Ichigo Office issued new shares via public offering at an issue price of 89,212 yen per share (underwriting price of 86,192 yen) for the purpose of raising funds to acquire new
assets.
Ichigo Office issued new shares via a third-party allotment (Greenshoe) at an issue price of 86,192 yen per share for the purpose of repaying loans.
Ichigo Office issued new shares via public offering at an issue price 79,365 yen per share (underwriting price of 76,695 yen) for the purpose of raising funds to acquire new assets.
Ichigo Office issued new shares via a third-party allotment (Greenshoe) at an issue price of 76,695 yen per share for the purpose of repaying loans.

–5–Share Price Performance
The table below shows the high and low prices (closing prices) on the Tokyo Stock Exchange REIT market, where Ichigo Office lists
its shares, for each period.
22nd Fiscal Period
From May 1, 2016 to
October 31, 2016

23rd Fiscal Period
From November 1, 2016 toApril 30, 201724th Fiscal Period
From May 1, 2017 to
October 31, 2017

25th Fiscal Period
From November 1, 2017 toApril 30, 2018

26th Fiscal Period
From May 1, 2018 to
October 31, 2018

High

84,600 yen

77,200 yen

77,000 yen

83,600 yen

93,800 yen

Low

70,500 yen

63,100 yen

63,000 yen

73,900 yen

81,600 yen

4 Dividends
With respect to dividends in the current fiscal period, the dividend distribution policy set out in Article 37 of the Articles of Incorporationof the Investment Corporation stipulates that the amount of dividends shall exceed the amount equivalent to 90% of distributable earnings
as provided for in Article 67-15, Paragraph 1 of the Special Measures Taxation Act. Based on this policy, Ichigo Office has decided to
pay a total dividend of 3,086 million yen, which is the entire amount (except for fractions in which the dividend per share is less than
one yen) of unappropriated retained earnings of 2,981 million yen, plus 105 million yen, which is the reversal of reserves for temporary
difference adjustments. As a result, the dividend per share came to 2,014 yen.
22nd Fiscal Period
From May 1, 2016
to October 31, 2016

23rd Fiscal Period
From November 1,
2016 to April 30,
2017

24th Fiscal Period
From May 1, 2017
to October 31, 2017

25th Fiscal Period
From November 1,
2017 to April 30,
2018

26th Fiscal Period
From May 1, 2018
to October 31, 2018

Unappropriated Retained Earnings

thousand yen

2,463,454

2,615,831

2,797,644

4,442,764

2,981,724

Retained Earnings for Dividend
Reservethousand yen

412

1,407

1,220

848

698

Total Dividends

thousand yen

2,917,474

2,946,587

2,957,313

3,009,411

3,086,026(1,904)(1,923)(1,930)(1,964)(2,014)

2,917,474

2,946,587

2,957,313

3,009,411

3,086,026(2,014)(Dividend per Share)

yen

Distributable Earnings

thousand yen(Distributable Earnings per Share)yen(1,904)(1,923)(1,930)(1,964)thousand yen

―

―

―

―

―

yen

(―)

(―)

(―)

(―)

(―)

Of the Total Refund of Capital, Total
Distribution from Reserves for
Temporary Difference Adjustment

thousand yen

―

―

―

―

―

(Of the Refund of Capital per Share,
Distribution from Reserves for
Temporary Difference Adjustment per
Share)

yen

(―)

(―)

(―)

(―)

(―)

Of the Total Refund of Capital, Total
Distribution from the Distribution
Associated with a Decrease in
Investment for Tax Purposes

thousand yen

―

―

―

―

―

(Of the Refund of Capital per Share,
Distribution from the Distribution
Associated with a Decrease in
Investment for Tax Purposes)

yen

(―)

(―)

(―)

(―)

(―)

Total Refund of Capital(Refund of capital per share)–6–5 Investment Policies and Strategies(1) Asset Acquisitions (Acquisition-Driven Growth)
Ichigo Office invests in real estate mainly located in central Tokyo, the Tokyo metropolitan area, major regional cities and prefectural
capitals whose primary use is as offices, as well as real estate-backed securities related to these assets. In particular, Ichigo Office builds
a portfolio specializing in mid-size offices with a focus on growth potential while securing earnings stability, given that both stability
and growth potential can be expected in mid-size offices and that the replacement of assets in the portfolio in a mobilized manneraccording to the market conditions is also possible because the absolute number of assets is large and there are numerous opportunities
for acquisition.
When acquiring assets, Ichigo Office works to obtain quality investment information at an early stage and promote an arm’s lengthtransaction, using information from Ichigo Investment Advisors Co., Ltd., the asset management company (hereinafter the “AssetManager”) of Ichigo Office, based on the Asset Manager’s own network. In addition, based on the sponsor support agreement with
Ichigo Inc., Ichigo Office also promotes steady external growth, taking advantage of the warehousing function of Ichigo Inc. Ichigo
Office also strives to improve the quality of the portfolio through asset replacements by considering sales of assets with limited roomfor organic growth.

(2) Portfolio Management (Organic Growth)
In the management and operation of the assets owned, Ichigo Office strengthens their competitiveness by establishing the “Ichigo Office”
brand through the active promotion of the following initiatives that will lead to the strengthening of the earnings power of individual
assets.
- Minimize downtime between leases- Carry out value-add capex to drive higher returns- Implement environmental sustainability initiatives to grow long-term value- Build a trusted Ichigo brand(3) Financing Strategy
For the refinancing of existing loans, Ichigo Office will take advantage of the low-interest-rate environment by fixing borrowing rates
and promoting the extension and diversification of borrowing periods. With respect to the long-term issuer rating it has acquired fromJapan Credit Rating Agency, Ltd., Ichigo Office will strengthen its financial base and expand its cash flows while diversify financing
using investment corporation bonds, with the aim of further improving the current rating of “A (Outlook: Stable).”6 Significant Subsequent Events(1) Asset Acquisitions
The sales and purchase agreements for the following assets has been made in accordance with the guidelines specified in Ichigo Office’s
Articles of Incorporation.
[Ichigo Minami Otsuka Building(Note 1)]2,780,000,000 yen
Acquisition Price(Note 2)
Location
3-10-10 Minami-Otsuka, Toshima-ku, Tokyo
Legal Form of Asset
Trust beneficiary interest in real estate (juekiken)
Property Right
Land: Freehold
Building: Freehold
Contract Date
December 14, 2018
Closing Date
December 21, 2018
Domestic special purpose company
Seller(Note 3)–7–[Ichigo Nogizaka Building(Note 1)]
Acquisition Price(Note 2)
Location
Legal Form of Asset
Property Right
Contract Date
Closing Date
Seller(Note 3)(Note 1)
(Note 2)
(Note 3)After the acquisition by Ichigo Office, the building names will be changed from “Minami Otsuka Square Building” to “Ichigo Minami Otsuka Building” and from “Unizo
Nogizaka Building” to “Ichigo Nogizaka Building.”
The scheduled acquisition price is the sales value of the trust beneficiary interest in real estate that does not include expenses for acquisition, the amount equivalent to settled
fixed asset taxes and city planning taxes, and the amount equivalent to consumption taxes.
The sellers did not provide consent to disclose their names.

[Ichigo Hakata East Building(Note 1)]
Acquisition Price(Note 2)
Location
Legal Form of Asset
Property Right
Contract Date
Closing Date
Seller(Note 1)
(Note 2)3,315,000,000 yen
8-11-37 Akasaka, Minato-ku, Tokyo
Trust beneficiary interest in real estate (juekiken)
Land: Freehold
Building: Freehold
December 14, 2018
December 28, 2018
Domestic real estate company

2,250,000,000 yen
1-13-6 Hakataeki Higashi, Hakata-ku, Fukuoka
Trust beneficiary interest in real estate (juekiken)
Land: Freehold
Building: Freehold
May 29, 2019
May 31, 2019
Kichijoji Holdings GK

After the acquisition by Ichigo Office, the building name will be changed from “Takeyama Hakata Building” to “Ichigo Hakata East Building”.
The acquisition price is the sales value of the trust beneficiary interest in real estate that does not include expenses for acquisition, the amount equivalent to settled fixed asset
taxes and city planning taxes, and the amount equivalent to consumption taxes.

(2) Asset Sales
The purchase and sales agreements for the following assets has been made in accordance with the guidelines specified in Ichigo Office’s
Articles of Incorporation.
Ichigo Machida East Building
Sales Price(Note 1)
Book Value(Note 2)
Location
Legal Form of Asset
Contract Date
Closing Date
Buyer(Note 3)

Not disclosed
1,272,784,000 yen
4-5-8 Haramachida, Machida City, Tokyo
Trust beneficiary interest in real estate (juekiken)
December 14, 2018
December 20, 2018
Domestic special purpose company

Ichigo Shin Yokohama Arena Dori Building
Not disclosed
Sales Price(Note 1)
Book Value(Note 2)
1,679,745,000 yen
Location
3-7-7 Shin-Yokohama, Kohoku-ku, Yokohama
Legal Form of Asset
Trust beneficiary interest in real estate (juekiken)
Contract Date
December 14, 2018
Closing Date
December 20, 2018
(Note
3)
Buyer
Domestic special purpose company(Note 1)

(Note 2)
(Note 3)This is a sale to a single buyer in a single sales contract, and the total sale price of two assets is 3,600,000 thousand yen. The sale price is the sales value of the trust beneficiaryinterest in real estate (juekiken) that does not include expenses for transfer, the amount equivalent to settled fixed asset taxes and city planning taxes, and the amount equivalent
to consumption taxes. The sales price of individual assets is not disclosed because the buyer did not provide consent to disclose each asset’s sale price. In the 27th fiscal period(from November 1, 2018 to April 30, 2019), gain on sales of real estate of approximately 645,250 thousand yen for a total of two assets is expected to be recorded.
The book value is the price as of October 31, 2018.
The buyer did not provide consent to disclose its name.

Ichigo Toyamaeki Nishi Building(Note 1)
12,369,952 yen
Sales Price(Note 2)
Book Value(Note 3)
4,734,000 yen–8–Location
Legal Form of Asset(Note 4)
Contract Date
Closing Date
Buyer
(Note 1)
(Note 2)
(Note 3)(Note 4)This is a sale of a section of the underlying land of Ichigo Toyamaeki Nishi Building to the Toyama Prefecture. The road adjacent to the northwestern side of the building is aprefectural road subject to an urban planning project (established March 31, 1959, and amended April 27, 2005). An additional section of the underlying land also became subject
to this project on April 11, 2011. After negotiations with the Toyama Prefecture, Ichigo Office has agreed to sell the section of the land.
The sales price is the total sales price indicated in the Purchase and Sales Agreement. In addition Ichigo Office will receive a compensation of 11,800,110 yen for the closing andremoval of a paid parking lot. The compensation will be recorded in the 27th fiscal period fiscal period (from November 1, 2018 to April 30, 2019).
The book value is an estimate based upon the price as of October 31, 2018, calculated proportionate to the section’s land area.
While the asset is a trust beneficiary interest in real estate (juekiken), the trust will be cancelled before the sale and the asset’s legal form will change to real estate.

Ichigo Fiesta Shibuya Building
Sales Price(Note 1)
Book value(Note 2)
Location
Legal Form of Asset
Contract Date
Closing Date
Buyer(Note 3)(Note 1)
(Note 2)1-1-19, Jinzu Honmachi, Toyama City, Toyama
Real estate
February 21, 2019
February 21, 2019
Toyama Prefecture

2,400,000,000 yen
1,960,027,000 yen
3-10 Udagawacho, Shibuya-ku, Tokyo
Trust beneficiary interest in real estate (juekiken)
May 29, 2019
May 30, 2019
Hakata GK

The sale price is the transaction price of the trust beneficiary interest in real estate (juekiken) and does not include expenses for transfer, the amount equivalent to settled fixed
asset taxes and city planning taxes, and the amount equivalent to consumption taxes. In the 28th fiscal period (from May 1, 2019 to October 310, 2019), gain on sales of realestate of approximately 440,477 thousand yen is expected to be recorded.
The book value is the price as of April 30, 2019.

–9–

Ichigo Office Overview

1 Shares and Shareholders’ Equity
Number of Authorized Shares

22nd Fiscal Period
October 31, 2016

23rd Fiscal Period
April 30, 201724th Fiscal Period
October 31, 2017

25th Fiscal Period
April 30, 2018

26th Fiscal Period
October 31, 2018

shares

14,000,000

14,000,000

14,000,000

14,000,000

14,000,000

Number of Shares
Outstanding

shares1,532,287

1,532,287

1,532,287

1,532,287

1,532,287

Shareholders’ Equity

millionyen

67,67567,67567,67567,67567,675

Number of Shareholders

persons

18,641

19,32718,32816,994

14,7052 Major Shareholders
Major shareholders as of October 31, 2018 are as follows:
Name

Ratio of Shares Held to Total Numberof Shares Issued (%) Note

SharesIchigo Trust Pte. Ltd.

344,190

The Master Trust Bank of Japan, Trust Account267,236

22.46
17.44

Japan Trustee Services Bank, Ltd., Trust Account155,875

10.17

NOMURA BANK (LUXEMBOURG) S.A.

77,951

5.08

Morgan Stanley MUFG Securities Co., Ltd.

57,972

3.78

BCSL MARGIN TRADING A/C

56,500

3.68

Trust & Custody Service Bank, Ltd., Securities Investment Trust Account52,2403.40

The Nomura Trust and Banking Co., Ltd., Investment Trust Account48,671

3.17

GOLDMAN SACHS INTERNATIONAL

34,653

2.26

STATE STREET BANK AND TRUST COMPANY 505012
Total

20,963

1.36

1,116,251

72.84(Note) The ratio of shares held to the total number of shares issued is rounded down to the first decimal place.

3 Executive Director and Supervisory Directors(1) Ichigo Office’s directors and auditor as of October 31, 2018 are as follows:
Title

Executive Director

Supervisory Directors

Accounting Auditor

Name of Director

Other Major Positions

Total Compensation
During the Current Fiscal
Period(thousand yen)

Yoshihiro Takatsuka

R’s Consulting KK, Representative Director
Oct Advisors Inc., Director and Partner

2,160

Takaaki Fukunaga

Fukunaga CPA Office, Representative
Global Solutions Consulting Co., Ltd., Representative Director
GreenOak Investment Management KK, external Corporate Auditor
AWP Ticket Guard Small Amount & Short Term Insurance Co., Ltd., external
Corporate Auditor
PP Japan Co., Ltd., Corporate Auditor
Retailer’s Sphere Co., Ltd., Corporate Auditor
GMO Registry, Inc., external Corporate Auditor

1,440

Masahiro Terada

City-Yuwa Partners, Partner

1,440

Grant Thornton Taiyo LLC―(Note) The Executive and Supervisory Directors do not own shares of Ichigo Office under either their own name or another person’s name.

– 10 –

8,460

(2) Policy for Determining Dismissal or Non-Reappointment of Accounting Auditor
The Board of Directors will determine the dismissal of the accounting auditor pursuant to the provisions of the Act on Investment Trusts
and Investment Corporations and the refusal to reappoint the accounting auditor, taking various factors into consideration, including thequality of the audit and compensation for the audit.

4 Asset Management Company, Asset Custodian, and Administrative AgentsThe asset management company, asset custodian, and administrative agents as of October 31, 2018 are as follows:
Asset Management Company

Ichigo Investment Advisors Co., Ltd.

Asset Custodian
Administrative Agent (Administration)
Administrative Agent (Accounting)Mizuho Trust Banking & Co., Ltd.

Administrative Agent (Transfer Agent)
Administrative Agent (Special Accounts)

Sumitomo Mitsui Trust Bank, Limited

Administrative Agent (Special Accounts)

Mitsubishi UFJ Trust and Banking Corporation

Administrative Agent (Investment Corporation Bonds)

Sumitomo Mitsui Bankng Corporation

Administrative Agent (Investment Corporation Bonds)

MUFG Bank, Ltd.

– 11 –

I

Assets under Management

1 Asset Composition

Trust BeneficiaryInterest in Real Estate(juekiken)(Note 3)(Note 2)
(Note 3)

Book Value(million yen)(Note 2)(Note 1)

Real Estate(Note 1)

25th Fiscal Period (as of April 30, 2018)

Area

Asset Type

26th Fiscal Period (as of October 31, 2018)

Ratio to Total Assets(%)

Book Value(million yen)(Note 2)

Ratio to Total Assets(%)

Central Tokyo

8,766

4.0

8,742

3.9

Tokyo Metropolitan Area

4,040

1.8

4,038

1.8

Four Major Regional Cities

10,6294.9

10,563

4.8

Central Tokyo

99,88945.6

105,335

47.5

Tokyo Metropolitan Area

40,832

18.6

40,69918.3

Four Major Regional Cities

15,461

7.1

17,422

7.9

Other Regional Cities

10,886

5.0

10,814

4.9

Subtotal

190,506

87.0

197,61789.1

Deposits and Other Assets

28,521

13.0

24,19010.9

Total Assets

219,028100.0

221,807

100.0

Areas are defined as follows:
Central Tokyo:
Chiyoda, Minato, Chuo, Shinjuku, Shibuya and Shinagawa Wards
Tokyo Metropolitan Area: Tokyo (excluding the six wards above) and Kanagawa, Chiba and Saitama Prefectures
Four Major Regional Cities: Osaka, Nagoya, Fukuoka and Sapporo
Other Regional Cities:
Regional cities other than the above (prefectural capitals, etc.)
Book Value is the amount recorded on the balance sheet as of the closing date (for real estate and the trust beneficiary interest in real estate, the book value after depreciation).
Construction in progress and construction in progress in trust are not included in the subtotal of real estate and the trust beneficiary interest in real estate.
Land leasehold rights in trust held together with buildings in trust are stated in the section on the trust beneficiary interest in real estate by adding them to buildings in trust, etc.

2 Major Assets Owned
The table below is a summary of the major assets owned by Ichigo Office as of October 31, 2018 (top ten assets in terms of book value).
Asset NameBook Value(million yen)
(Note 1)

Leasable Area(m2)

Leased Area(m2)

Occupancy(%)(Note 2)

Ratio to Total Rent
Revenue(%)

Asset Type

Ichigo Jingumae Building

7,407

4,510.04

4,510.04

100.0

2.5

OfficeIchigo Marunouchi Building

5,870

8,009.11

8,009.11

100.0

3.1

OfficeOfficeEbisu Green Glass

5,839

3,159.27

3,159.27

100.0

2.1

Ichigo Akihabara North Building

5,598

6,250.53

6,250.53

100.0

2.8

OfficeIchigo Ikenohata Building

5,149

5,504.15

5,504.15

100.0

2.1

OfficeOfficeIchigo Gotanda Building

4,874

5,346.39

5,346.39

100.0

2.7

Ichigo Sasazuka Building

4,870

6,425.29

6,425.29

100.0

2.4

OfficeIchigo Sakae Building

4,693

3,928.12

3,928.12

100.0

2.9

OfficeIchigo Higashi Ikebukuro Building

4,607

4,472.00

4,472.00

100.0

2.0

OfficeIchigo Nihonbashi East Building

4,578

4,216.97

4,216.97

100.0

1.9

Office53,48951,821.87

51,821.87

100.0

24.5

Total
(Note 1)
(Note 2)

Book Value does not include construction in progress or construction in progress in trust.
Occupancy is the ratio of the Leased Area within the Leasable Area of the real estate or real estate in trust as of period-end. The ratio is rounded off to the first decimal place.

– 12 –

3 Portfolio Overview
Details of Portfolio Assets
The table below shows the details of assets owned by Ichigo Office as of October 31, 2018.
Asset Name

Location

Form of Ownership

LeasableArea(m2)

Appraisal
Value at_Period-end(million yen)
(Note 1)

Book Value at
Period-end(million yen)
(Note 2)O-02 Ichigo Nishisando Building

Yoyogi, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

4,564.63

3,170

3,373

O-03 Ichigo Mita Building

Shiba, Minato-ku, Tokyo

Trust beneficiary interest in real estate

4,121.42

3,510

2,729

O-04 Ichigo Nanpeidai Building

Nanpeidaicho, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

1,925.24

2,560

1,919

O-05 Ichigo Hanzomon Building

Hayabusacho, Chiyoda-ku, Tokyo

Trust beneficiary interest in real estate

2,080.37

1,880

1,512

O-06 Ichigo Hijirizaka Building

Mita, Minato-ku, Tokyo

Trust beneficiary interest in real estate

1,947.90

1,440

1,213

Ichigo Shibuya Kamiyamacho
O-07
Building

Kamiyamacho, Shibuya-ku, Tokyo

Real estate

1,321.54

1,810

1,382

O-08 Ichigo Akasaka 5 Chome Building

Akasaka, Minato-ku, Tokyo

Real estate

683.86

806

722

O-09 Ichigo Shibakoen Building

Shiba, Minato-ku, Tokyo

Real estate

1,602.29

1,130

1,102

O-10 Ichigo Ebisu Nishi Building

Ebisu-Nishi, Shibuya-ku, Tokyo

Real estate

1,484.39

2,440

1,929

O-11 Ichigo Ginza 612 Building

Ginza, Chuo-ku, Tokyo

Trust beneficiary interest in real estate

1,387.09

2,000

1,776

O-12 Ichigo Uchikanda Building

Uchikanda, Chiyoda-ku, Tokyo

Real estate

1,378.83

1,170

1,114

O-14 Ichigo Yotsuya 4 Chome Building

Yotsuya, Shinjuku-ku, Tokyo

Trust beneficiary interest in real estate780.64575

514

O-15 Ichigo Tameike Building

Akasaka, Minato-ku, Tokyo

Real estate494.14684

528

O-16 Ichigo Jimbocho Building

Kanda Jimbocho, Chiyoda-ku,
Tokyo

Trust beneficiary interest in real estate

1,891.01

2,290

1,813

O-17 Ichigo Hakozaki Building

Nihonbashi Kakigaracho, Chuo-ku,
Tokyo

Trust beneficiary interest in real estate

2,387.34

1,150

1,154

O-18 Ichigo Kudan 2 Chome Building

Kudan Minami, Chiyoda-ku, Tokyo

Trust beneficiary interest in real estate

1,288.31

915

735

O-19 Ichigo Kudan 3 Chome Building

Kudan Minami, Chiyoda-ku, Tokyo

Trust beneficiary interest in real estate

1,302.43851

826

O-20 Ichigo Gotanda Building

Higashi Gotanda, Shinagawa-ku,
Tokyo

Trust beneficiary interest in real estate

5,346.39

6,250

4,874

O-21 Ichigo Shin Yokohama Building

Shin Yokohama, Kohoku-ku,
Yokohama

Trust beneficiary interest in real estate

4,021.32

1,870

1,712

O-22 Ichigo Minami Ikebukuro Building

Minami Ikebukuro, Toshima-ku,
Tokyo

Trust beneficiary interest in real estate

1,491.51

1,630

1,385

O-23 Ichigo Nakano North Building

Arai, Nakano-ku, Tokyo

Trust beneficiary interest in real estate

1,250.85885

741

O-24 Ichigo Eitai Building

Eitai, Koto-ku, Tokyo

Real estate

2,605.54

1,250

1,469

O-26 Ichigo Ikejiri Building

Ohashi, Meguro-ku, Tokyo

Real estate

2,385.69

2,220

1,962

O-27 Ichigo Nishi Ikebukuro Building

Ikebukuro, Toshima-ku, Tokyo

Real estate

1,261.91

837

607

O-28 Ichigo Nishi Gotanda Building

Nishi Gotanda, Shinagawa-ku,
Tokyo

Trust beneficiary interest in real estate

1,329.06

825

762

O-29 Ichigo Kichijoji Building

Kichijoji Honcho, Musashino City,
Tokyo

Trust beneficiary interest in real estate

4,210.87

2,800

2,195

O-34 Ichigo Sakae Building

Sakae, Naka-ku, Nagoya

Real estate

3,928.12

6,480

4,693

O-37 Ichigo Marunouchi Building

Marunouchi, Naka-ku, Nagoya

Real estate

8,009.11

7,520

5,870

O-38 Ichigo Toyamaeki Nishi Building

Jinzu Honmachi, Toyama City,
ToyamaTrust beneficiary interest in real estate

8,601.71

1,750

1,515

O-39 Ichigo Mirai Shinkin Building

Niagemachi, Oita City, Oita

Trust beneficiary interest in real estate

3,551.46

1,280

1,160

O-42 Ichigo Takamatsu Building

Kotobukicho, Takamatsu City,
KagawaTrust beneficiary interest in real estate

6,329.33

3,440

2,402

O-46 Ichigo Kanda Nishikicho Building

Kanda-Nishikicho, Chiyoda-ku,
Tokyo

Trust beneficiary interest in real estate

2,523.09

2,930

2,014

O-47 Ichigo Akihabara North Building

Sotokanda, Chiyoda-ku, Tokyo

Trust beneficiary interest in real estate

6,250.53

6,970

5,598

Ichigo Sakaisuji Honmachi
O-48
Building

Honmachi, Chuo-ku, Osaka

Trust beneficiary interest in real estate

3,729.35

2,310

1,803

Ichigo Kanda Ogawamachi
O-49
Building

Kanda-Ogawamachi, Chiyoda-ku,
Tokyo

Trust beneficiary interest in real estate

2,295.57

2,460

2,191

O-50 Ichigo Hatchobori Building

Shintomi, Chuo-ku, Tokyo

Trust beneficiary interest in real estate

2,697.36

2,530

1,827

O-51 Ebisu Green Glass

Ebisu Minami, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

3,159.27

6,710

5,839

– 13 –

Asset Name

Location

Form of Ownership

LeasableArea(m2)

Appraisal
Value at_Period-end(million yen)
(Note 1)

Book Value at
Period-end(million yen)
(Note 2)O-52 Ichigo Omori Building

Minami Oi, Shinagawa-ku, Tokyo

Trust beneficiary interest in real estate

3,585.92

4,220

O-53 Ichigo Takadanobaba Building

Takadanobaba, Shinjuku-ku, Tokyo

Trust beneficiary interest in real estate

1,606.92

1,890

3,799
1,586

O-54 Ichigo Omiya Building

Miyacho, Omiya-ku, Saitama City,
SaitamaTrust beneficiary interest in real estate

6,180.68

3,990

3,637

O-55 Ichigo Sagamihara Building

Sagamihara, Chuo-ku, Sagamihara
City, Kanagawa

Trust beneficiary interest in real estate

2,960.81

1,250

1,221

O-56 Ichigo Ofuna Building

Ofuna, Kamakura City, Kanagawa

Trust beneficiary interest in real estate

2,364.71

2,410

1,953

O-57 Ichigo Sendai East Building

Miyagino, Miyagino-ku, Sendai,
MiyagiTrust beneficiary interest in real estate

5,205.49

2,100

1,694

O-58 Ichigo Kumamoto Building

Karashimacho, Chuo-ku, Kumamoto
City, Kumamoto

Trust beneficiary interest in real estate

4,507.59

1,580

1,445

O-59 Ichigo Jingumae Building

Jingumae, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

4,510.04

8,040

7,407

Ichigo Shibuya Dogenzaka
O-60
Building

Maruyamacho, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

2,789.86

5,050

3,670

O-61 Ichigo Hiroo Building

Hiroo, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

3,510.44

4,530

4,000

O-62 Ichigo Sasazuka Building

Sasazuka, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

6,425.29

5,290

4,870

O-63 Ichigo Nihonbashi East Building

Nihonbashi Bakurocho, Chuo-ku,
Tokyo

Trust beneficiary interest in real estate

4,216.97

5,470

4,578

O-64 Ichigo Sakurabashi Building

Hatchobori, Chuo-ku, Tokyo

Trust beneficiary interest in real estate

2,971.22

2,880

2,563

O-65 Ichigo Shinkawa Building

Shinkawa, Chuo-ku, Tokyo

Trust beneficiary interest in real estate

2,312.03

2,790

2,388

O-66 Ichigo Kudan Building

Kanda Jimbocho, Chiyoda-ku,
Tokyo

Trust beneficiary interest in real estate

3,090.65

3,480

3,224

O-67 Ichigo Higashi Gotanda Building

Higashi Gotanda, Shinagawa-ku,
Tokyo

Trust beneficiary interest in real estate

4,548.10

4,280

3,663

O-68 Axior Mita

Mita, Minato-ku, Tokyo

Trust beneficiary interest in real estate

2,369.82

2,190

1,760

O-69 Ichigo Higashi Ikebukuro Building

Higashi Ikebukuro, Toshima-ku,
Tokyo

Trust beneficiary interest in real estate

4,472.00

5,270

4,607

O-70 Koriyama Big-i (Office Section)

Ekimae, Koriyama City, Fukushima

Trust beneficiary interest in real estate

3,433.07

1,890

1,500

O-71 Ichigo Kawasaki Building

Higashi Tamachi, Kawasaki-ku,
Kawasaki City, Kanagawa

Trust beneficiary interest in real estate

3,710.17

2,120

1,786

O-72 Ichigo Shibuya East Building

Higashi, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

1,041.36

1,530

1,351

O-73 Ichigo Ningyocho Building

Nihonbashi Horidomecho, Chuo-ku,
Tokyo

Trust beneficiary interest in real estate

1,769.09

1,570

1,486

O-74 Ichigo Nishi Honmachi Building

Awaza, Nishi-ku, Osaka

Trust beneficiary interest in real estate

6,152.00

2,380

2,149

O-75 Ichigo Hakata Building

Gionmachi, Hakata-ku, Fukuoka

Trust beneficiary interest in real estate

2,423.86

1,500

1,371

O-76 Ichigo Nishiki First Building

Nishiki, Naka-ku, Nagoya

Trust beneficiary interest in real estate

3,324.66

2,100

1,986

O-77 Ichigo Ikenohata Building

Ikenohata, Taito-ku, Tokyo

Trust beneficiary interest in real estate

5,504.15

5,380

5,149

O-78 Ichigo Ikebukuro East Building

Higashi Ikebukuro, Toshima-ku,
Tokyo

Trust beneficiary interest in real estate

3,118.69

3,240

2,987

O-79 Ichigo Motoazabu Building

Motoazabu, Minato-ku, Tokyo

Trust beneficiary interest in real estate

1,329.96

2,020

1,899

O-80 Ichigo Otsuka Building

Minami Otsuka, Toshima-ku, Tokyo

Trust beneficiary interest in real estate

3,679.70

2,940

2,723

O-81 Ichigo Nagoya Building

Meieki, Nakamura-ku, Nagoya

Trust beneficiary interest in real estate

4,930.30

3,740

3,489

O-82 Ichigo Fushimi Building

Nishiki, Naka-ku, Nagoya

Trust beneficiary interest in real estate

4,155.57

2,450

2,339

O-83 Ichigo Nishiki Building

Nishiki, Naka-ku, Nagoya

Trust beneficiary interest in real estate

2,006.78

1,430

1,299

Ichigo Minami Morimachi
O-84
Building

Matsugaecho, Kita-ku, Osaka

Trust beneficiary interest in real estate

2,521.51

1,130

1,014

Udagawacho, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate

1,491.48

4,050

3,602

Nishi Gotanda, Shinagawa-ku,
Tokyo

Trust beneficiary interest in real estate

3,689.88

3,280

3,109

O-85

Ichigo Shibuya Udagawacho
Building

O-86 Win Gotanda Building
O-87 Ichigo Hongo Building

Hongo, Bunkyo-ku, Tokyo

Trust beneficiary interest in real estate

2,722.58

2,390

2,303

O-88 Oimachi Center Building

Oi, Shinagawa-ku, Tokyo

Trust beneficiary interest in real estate

2,751.08

1,900

1,700

O-89 Win Gotanda Building 2

Osaki, Shinagawa-ku, Tokyo

Trust beneficiary interest in real estate

3,433.16

3,490

3,318

O-90 MIF Building

Uchikanda, Chiyoda-ku, Tokyo

Trust beneficiary interest in real estate

1,690.33

2,320

2,210

O-91 Ichigo Uchi Honmachi Building

Uchi Honmachi, Chuo-ku, Osaka

Trust beneficiary interest in real estate

2,829.16

2,000

1,969

Z-02 Ichigo Fiesta Shibuya Building

Udagawacho, Shibuya-ku, Tokyo

Real estate

1,185.85

2,210

1,963

– 14 –

Asset Name

Location

LeasableArea(m2)

Form of OwnershipAppraisal
Value at_Period-end(million yen)Book Value at
Period-end(million yen)
(Note 2)

(Note 1)Z-05 Ichigo Machida East Building

Haramachida, Machida City, Tokyo

Trust beneficiary interest in real estate

2,183.65

1,550

1,272

Z-09 Konami Sports Club Izumi Fuchu

Fuchucho, Izumi City, Osaka

Trust beneficiary interest in real estate

3,733.68

1,440

1,095

Z-10

Ichigo Shibuya Bunkamura Dori
Building

Udagawacho, Shibuya-ku, Tokyo

Trust beneficiary interest in real estate778.77

3,220

2,464

Z-11

Twicere Yokohama Isogo (Retail
Section)Mori, Isogo-ku, Yokohama

Trust beneficiary interest in real estate

2,717.77

1,880

1,518

Z-12 Lions Square Kawaguchi

Motogo, Kawaguchi City, Saitama

Trust beneficiary interest in real estate

7,788.09

2,710

2,376

Ichigo Shin Yokohama Arena Dori
Z-13
Building

Shin Yokohama, Kohoku-ku,
Yokohama

Trust beneficiary interest in real estate

1,971.34

1,780

1,679

Z-14 Ichigo Kamata Building

Nishi Kamata, Ota-ku, Tokyo

Trust beneficiary interest in real estate

Total(Note 1)
(Note 2)

2,124.68

1,520

1,447

263,440.38

229,198

197,617

The appraisal value at period-end is the value appraised by the real estate appraisers of Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., The Tanizawa Sogo
Appraisal Co., Ltd. and Rich Appraisal Institute under the Articles of Incorporation of Ichigo Office and the Regulation on Accounting of Investment Corporations (Cabinet
Office Order No. 47 of 2006 including subsequent amendments).
The book value at period-end does not include construction in progress or construction in progress in trust.

The following shows the status of rental activity at Ichigo Office assets in the 25th and 26th Periods:
25th Fiscal Period
From November 1, 2017 to April 30, 2018
Asset Name

Number of
Tenants at
Period-end(tenants)

Occupancy at
Period-end(%)(Note 2)

(Note 1)

RentalIncome(thousandyen)

26th Fiscal Period
From May 1, 2018 to October 31, 2018

Ratio to Total
RentalIncome (%)

Number of
Tenants at
Period-end(tenants)

Occupancy at
Period-end(%)(Note 2)

(Note 1)

RentalIncome(thousandyen)

Ratio to Total
RentalIncome (%)

O-02 Ichigo Nishisando Building

16

95.9

128,684

1.7

16

100.0

133,262

1.7

O-03 Ichigo Mita Building

10

100.0

110,546

1.5

10

100.0

123,059

1.6

O-04 Ichigo Nanpeidai Building

13

100.0

77,574

1.0

13

100.0

77,6201.0

O-05 Ichigo Hanzomon Building

7

100.0

60,572

0.8

7

100.0

60,421

0.8

O-06 Ichigo Hijirizaka Building

6

100.0

58,915

0.8

6

100.0

59,0550.8

Ichigo Shibuya Kamiyamacho
Building

4

100.0

51,900

0.7

4

100.0

52,5880.7

O-08 Ichigo Akasaka 5 Chome Building

9

100.0

28,171

0.4

9

100.0

29,122

0.4

O-09 Ichigo Shibakoen Building

5

100.0

39,413

0.5

5

100.0

48,915

0.6

O-10 Ichigo Ebisu Nishi Building

8

100.0

63,320

0.8

8

100.0

70,3200.9

O-11 Ichigo Ginza 612 Building

25

100.0

65,508

0.9

24

96.5

65,0630.9

O-12 Ichigo Uchikanda Building

8

100.0

42,337

0.6

8

100.0

42,4880.6

O-14 Ichigo Yotsuya 4 Chome Building

10

100.0

20,292

0.3

10

100.0

21,0340.3

O-15 Ichigo Tameike Building

6

100.0

21,379

0.3

5

80.6

19,1920.3

O-07

O-16 Ichigo Jimbocho Building

7

100.0

74,007

1.0

7

92.6

69,757

0.9

O-17 Ichigo Hakozaki Building

7

100.0

54,053

0.7

7

100.0

54,437

0.7

O-18 Ichigo Kudan 2 Chome Building

1

100.0

26,820

0.4

1

100.0

30,4320.4

O-19 Ichigo Kudan 3 Chome Building

5

100.0

35,617

0.5

5

100.0

35,837

0.5

O-20 Ichigo Gotanda Building

14

100.0

188,040

2.5

14

100.0

208,149

2.7

O-21 Ichigo Shin Yokohama Building

14

97.7

78,978

1.1

14

97.7

75,1941.0

O-22 Ichigo Minami Ikebukuro Building

10

100.0

53,061

0.7

10

100.0

53,107

0.7

O-23 Ichigo Nakano North Building

7

100.0

39,873

0.5

6

90.8

39,244

0.5

O-24 Ichigo Eitai Building

10

100.0

64,119

0.9

10

100.0

65,481

0.9

O-26 Ichigo Ikejiri Building

5

100.0

80,036

1.1

5

100.0

81,8891.1

O-27 Ichigo Nishi Ikebukuro Building

1

100.0

24,097

0.3

1

100.0

26,387

0.3– 15 –

25th Fiscal Period
From November 1, 2017 to April 30, 2018
Asset Name

Number of
Tenants at
Period-end(tenants)

Occupancy at
Period-end(%)(Note 2)

(Note 1)

RentalIncome(thousandyen)

26th Fiscal Period
From May 1, 2018 to October 31, 2018

Ratio to Total
RentalIncome (%)

Number of
Tenants at
Period-end(tenants)

Occupancy at
Period-end(%)(Note 2)

(Note 1)

RentalIncome(thousandyen)

Ratio to Total
RentalIncome (%)

O-28 Ichigo Nishi Gotanda Building

9

100.0

33,390

0.4

9

100.0

33,943O-29 Ichigo Kichijoji Building

14

97.6

112,113

1.5

14

100.0

111,068

0.4
1.5

O-34 Ichigo Sakae Building

19

100.0

185,449

2.5

19

100.0

219,398

2.9

O-37 Ichigo Marunouchi Building

23

100.0

229,546

3.1

23

100.0

235,874

3.1

O-38 Ichigo Toyamaeki Nishi Building

15

98.5

116,641

1.6

15

98.5

117,837

1.5
1.0

O-39 Ichigo Mirai Shinkin Building

21

95.4

79,146

1.1

21

95.4

79,227

O-42 Ichigo Takamatsu Building

13

100.0

156,097

2.1

13

98.7

155,880

2.0O-46 Ichigo Kanda Nishikicho Building

10

100.0

88,117

1.2

10

100.0

93,051

1.2

O-47 Ichigo Akihabara North Building

1

100.0

208,877

2.8

1

100.0

214,519

2.8

Ichigo Sakaisuji Honmachi
O-48
Building

17

100.0

94,556

1.3

17

100.0

93,258

1.2

Ichigo Kanda Ogawamachi
Building

9100.0

81,109

1.1

9

100.0

81,596

1.1

O-50 Ichigo Hatchobori Building

7

100.0

90,815

1.2

7

100.0

92,399

1.2

O-51 Ebisu Green Glass

2

100.0

162,091

2.2

2

100.0

162,634

2.1

O-52 Ichigo Omori Building

9

100.0

131,069

1.8

9

100.0

132,597

1.7

O-53 Ichigo Takadanobaba Building

8

100.0

58,111

0.8

8

100.0

61,8330.8

O-54 Ichigo Omiya Building

31

100.0

147,540

2.0

30

99.0

154,884

2.0

O-55 Ichigo Sagamihara Building

13

100.0

60,001

0.8

13

100.0

60,4620.8

O-56 Ichigo Ofuna Building

9

100.0

93,907

1.3

9

100.0

94,222

1.2

O-57 Ichigo Sendai East Building

11

97.9

99,466

1.3

11

97.9

101,436

1.3

O-58 Ichigo Kumamoto Building

31

100.0

78,899

1.1

31

100.0

86,1891.1

O-59 Ichigo Jingumae Building

7

100.0

190,645

2.6

7

100.0

191,727

2.5

Ichigo Shibuya Dogenzaka
O-60
Building

9100.0

124,043

1.7

9

100.0

126,656

1.7

O-49

O-61 Ichigo Hiroo Building

5

100.0

131,171

1.8

5

100.0

133,128

1.7

O-62 Ichigo Sasazuka Building

6

100.0

176,046

2.4

6

100.0

181,472

2.4

O-63 Ichigo Nihonbashi East Building

7

100.0

147,443

2.0

7

100.0

148,804

1.9

O-64 Ichigo Sakurabashi Building

6

100.0

80,790

1.1

6

100.0

81,855

1.1

O-65 Ichigo Shinkawa Building

5

84.4

61,415

0.8

6

100.0

69,008

0.9

O-66 Ichigo Kudan Building

9

100.0

98,774

1.3

9

100.0

103,114

1.4

O-67 Ichigo Higashi Gotanda Building

18

94.3

124,103

1.7

18

100.0

124,046

1.6

O-68 Axior Mita

12

100.0

66,576

0.9

12

100.0

67,235

0.9

O-69 Ichigo Higashi Ikebukuro Building

18

92.6

143,254

1.9

20

100.0

150,960

2.0O-70 Koriyama Big-i (Office Section)

14

100.0

109,833

1.5

14

100.0

103,609

1.4

O-71 Ichigo Kawasaki Building

15

95.5

80,276

1.1

17

100.0

88,2601.2

O-72 Ichigo Shibuya East Building

3

100.0

41,638

0.6

3

100.0

42,273

0.6

O-73 Ichigo Ningyocho Building

8

100.0

46,050

0.6

8

100.0

46,2280.6

O-74 Ichigo Nishi Honmachi Building

30

98.3

106,867

1.4

31

100.0

110,048

1.4

O-75 Ichigo Hakata Building

28

100.0

52,977

0.7

28

100.0

53,0630.7

O-76 Ichigo Nishiki First Building

4

89.7

64,827

0.9

4

89.7

24,251

0.3

O-77 Ichigo Ikenohata Building

7

100.0

142,941

1.9

7

100.0

157,575

2.1– 16 –

25th Fiscal Period
From November 1, 2017 to April 30, 2018
Asset Name

Number of
Tenants at
Period-end(tenants)

Occupancy at
Period-end(%)(Note 2)

(Note 1)

RentalIncome(thousandyen)

26th Fiscal Period
From May 1, 2018 to October 31, 2018

Ratio to Total
RentalIncome (%)

Number of
Tenants at
Period-end(tenants)

Occupancy at
Period-end(%)(Note 2)

(Note 1)

RentalIncome(thousandyen)

Ratio to Total
RentalIncome (%)

O-78 Ichigo Ikebukuro East Building

4

100.0

93,003

1.2

3

100.0

91,548

1.2

O-79 Ichigo Motoazabu Building

3

100.0

53,116

0.7

3

100.0

53,4850.7

O-80 Ichigo Otsuka Building

7

100.0

90,969

1.2

7

100.0

92,321

1.2

O-81 Ichigo Nagoya Building

37

100.0

141,579

1.9

36

100.0

146,376

1.9

O-82 Ichigo Fushimi Building

40

94.8

88,110

1.2

38

87.9

88,391

1.2

O-83 Ichigo Nishiki Building

23

100.0

49,322

0.7

23

100.0

49,4900.6

O-84 Ichigo Minami Morimachi Building

12

100.0

47,713

0.6

12

100.0

47,7400.6

Ichigo Shibuya Udagawacho
O-85
Building

7

100.0

76,573

1.0

8

100.0

86,566

1.1

O-86 Win Gotanda Building

11

100.0

110,960

1.5

11

100.0

113,204

1.5

O-87 Ichigo Hongo Building

7

100.0

85,949

1.2

7

100.0

81,6301.1

O-88 Oimachi Center Building

8

100.0

66,015

0.9

8

100.0

73,2051.0

O-89 Win Gotanda Building 2

―

―

―

―

9

100.0

95,396

1.2

O-90 MIF Building

―

―

―

―

6

88.3

58,7180.8

O-91 Ichigo Uchi Honmachi Building

―

―

―

―

16

96.3

9,933

0.1

Z-02 Ichigo Fiesta Shibuya Building

9

96.1

64,484

0.9

10

100.0

68,7030.9

Z-03 Ichigo Burg Omori(Note 3)――

134,942

1.8

―

―

3,625

0.0

Z-05 Ichigo Machida East Building

10

100.0

64,375

0.9

10

100.0

66,671

0.9――

25,911

0.3

―

―

808

0.0
0.0

Z-07

Ichigo Sapporo Minami 2 Nishi 3
Building(Note 3)

Z-08 Ichigo Daimyo Balcony(Note 4)――

24,840

0.3

―

―

575

Z-09 Konami Sports Club Izumi Fuchu

1

100.0

63,000

0.8

1

100.0

63,0000.8

Z-10

Ichigo Shibuya Bunkamura Dori
Building

4

100.0

73,903

1.0

4

100.0

75,827

1.0

Z-11

Twicere Yokohama Isogo (Retail
Section)7

100.0

80,210

1.1

8

100.0

81,4211.1

Z-12 Lions Square Kawaguchi

3

100.0

118,768

1.6

3

100.0

123,562

1.6

Ichigo Shin Yokohama Arena Dori
Z-13
Building

5100.0

76,456

1.0

5

100.0

78,396

1.0

2

100.0

53,031

0.7

2

100.0

54,047

0.7

891

99.0

7,467,190

100.0

923

99.2

7,632,352

100.0Z-14 Ichigo Kamata Building
Total(Note 1)
(Note 2)
(Note 3)(Note 4)In the column “Number of Tenants at Period-end,” the total number of tenants who have concluded a lease contract with Ichigo Office or the trustee as the lessor is stated. If amaster lease contract has been concluded with a master leasing company other than Ichigo Office, the number of tenants is counted as one.
“Occupancy Rate at Period-end” is the ratio of the Leased Area within the Leasable Area of the real estate or real estate in trust as of period-end. The ratio is rounded off to thefirst decimal place.
The asset was sold on March 30, 2018.
The asset was sold on April 20, 2018.

Details of Renewable Energy Power Generation Equipment
N/A

Details of PPP and PFI
N/ADetails of Investments in Securities
N/A– 17 –

4 Status of Other Assets
Trust beneficiary rights whose major asset is real estate are included in “3. Portfolio Overview” above, and major specified assets inwhich the Investment Corporation invests as of October 31, 2018 are as follows.

Contract Value and Market Value of Specified Transactions
The table below shows the contract value and fair value of a specified transaction at Ichigo Office as of October 31, 2018.
Classification
Transactions Other than Market
Transactions

Type

Contract Amount (thousand yen)
(Note 1)

Interest rate swap (pay fixed,
receive floating)
Total(Note 1)
(Note 2)Market Value (thousand yen)

Exceeding One Year(Note 1)(Note 2)

94,051,106

83,675,111―

94,051,106

83,675,111―

The contract amount of interest rate swap is based on the notional principal.
Since the above transaction meets the specific matching criteria of the Accounting Standard for Financial Instruments, the statement of market value is omitted.

5 Assets by Country and Region
All Ichigo Office assets are located in Japan.

– 18 –

Capital Expenditures

1 Schedule of Capital Expenditures
The major renovation-related capital expenditures planned as of October 31, 2018 are as described below. The payment amount for thescheduled work below includes the amount classified as accounting expenses.
Expected Payment Amount (thousand yen)
Asset Name
(Location)

Purpose

PeriodIchigo Ofuna Building (Kamakura
City, Kanagawa)Exterior Wall Renovation

From February 2019
to March 2019

Ichigo Toyamaeki Nishi Building(Toyama City, Toyama)

Air Conditioning Upgrade

Ichigo Kanda Ogawamachi
Building (Chiyoda-ku, Tokyo)

Amount Paid in the
Fiscal Period under
Review

Amount Already Paid

51,070――From September 2019
to October 2019

42,481――

Exterior Wall Renovation

From April 2019
to May 2019

28,000――Ichigo Uchi Honmachi Building(Osaka City, Osaka)

Renovation to Leasable
Space

From February 2019
to March 2019

20,000――Ichigo Nishi Ikebukuro Building(Toshima-ku, Tokyo)

Exterior Wall Renovation

From August 2019
to September 2019

9,652

―

―

Total Amount2 Capital Expenditures during the Current Fisal Period
The major renovation-related capital expenditures during the current fiscal period are as follows. Capital expenditures during the current
fiscal period amounted to 453,299 thousand yen, and construction work of a total of 570,636 thousand yen were conducted, combinedwith repair expenses of 117,337 thousand yen.
Asset Name (Location)

PurposePayment Amount(thousand yen)

PeriodAir Conditioning Upgrade

From August 2018
to October 2018

55,027

Ichigo Toyamaeki Nishi Building (Toyama City, Toyama)

Air Conditioning Upgrade

From September 2018
to October 201844,154

Ichigo Nagoya Building (Nagoya City, Aichi)

Elevator Upgrade

From June 2018
to August 201839,850Ichigo Sasazuka Building (Shibuya-ku, Tokyo)

Other314,267

Total

453,299

3 Cash Reserves for Long-Term Repair and Maintenance Plans
Based on each asset’s long-term repair and maintenance plans, Ichigo Office reserves funds for future large-scale repairs and renovations
from cash flow during each fiscal period as follows.
(thousand yen)

Balance of Reserves at
Beginning of Period
Gains
Reversals
Amount Brought Forward
to Next Period

22nd Fiscal Period
From May 1, 2016 to
October 31, 2016

23rd Fiscal Period
From November 1, 2016
to April 30, 201724th Fiscal Period
From May 1, 2017 to
October 31, 2017

25th Fiscal Period
From November 1, 2017
to April 30, 2018

26th Fiscal Period
From May 1, 2018 to
October 31, 2018

737,838

927,259

1,094,211

1,183,437

1,255,148

892,552

892,636

794,999

707,271

833,530

703,131725,683

705,773635,561

551,326

927,259

1,094,211

1,183,437

1,255,148

1,537,351– 19 –

Expenses and Liabilities

1 Details of Operating Expenses(thousand yen)

25th Fiscal Period
From November 1, 2017 to April 30, 2018

26th Fiscal Period
From May 1, 2018 to October 31, 2018a. Asset Management Fees

723,276b. Asset Custody Fees

14,703765,737
14,761c. Administrative Service Fees

44,91447,641d. Directors’ Compensation

5,040

5,040

e. Other Operating Expenses

80,27360,474

Total

868,208

893,654

2 Borrowings
The table below shows borrowings as of October 31, 2018.
Lender

Loan
Date

SMBC
Shinsei Bank
Aozora Bank

December 10,
2013

Balance at
Period-end(million yen)

1,5
51

1,547

484

483

1,066

1,063

Mizuho Bank

775

773

Resona Bank

1,000

1,000

1,000

1,000

Bank of Fukuoka

April 30, 2014

Average
Interest Rate(%)

Repayment
Date

Repayment
Terms(Note 2)

November 30,
2018(Note 3)

0.984

April 30, 2019

Lump-sum
repayment

1.070

July 31, 2019

(Note 4)

1.468

1,473

1,471

Mizuho Bank

1,277

1,275

884

883

884

883

884

883

The Kagawa Bank

491

490

ORIX Bank

491

490

SMBC

1,228

1,227

Mizuho Bank

1,228

1,227

Aozora Bank

786

785

1.267

786

785

(Note 2)

December 10,
2020(Note 5)Resona Bank

589

589

MUFG Bank

786

785

SMBC

196

―

Mizuho Bank

245―

Aozora Bank

196

―
0.726

June 15, 2018

(Note 6)

December 16,
2019(Note 5)

Shinsei Bank

August 1, 2014

Aozora Bank

Shinsei Bank

Shinsei Bank

December 10,
2014(Note 2)

196

―

147

―

The Kagawa Bank

147―

ORIX Bank

147―

MUFG Bank

196

―

1,228

1,227

1,228

1,227

786

785

1.033

786

785

(Note 2)

Resona Bank

589

589

MUFG Bank

786

785

Resona Bank

December 15,
2014

SMBC
Mizuho Bank
Aozora Bank
Shinsei Bank

December 15,
2014– 20 –

Use

Collaterized(Note 15)No(No
guarantee)(Note 1)

SMBC
Resona Bank

Long-Term
Loans

Balance at
Period-start(million yen)

Lender

Loan
Date

Balance at
Period-end(million yen)

SMBC

344

Mizuho Bank

245―

Aozora Bank

196―

Shinsei Bank

January 09,
2015

196

―
―

ORIX Bank

147―

MUFG Bank

196―

Aozora Bank

2,127

2,127

1,998

1,998

400

400

Shinsei BankORIX Bank

February 27,
2015

Average
Interest Rate(%)

Repayment
Date

Repayment
Terms

0.726

June 15, 2018

(Note 6)

1.142

August 31,
2020

Lump-sum
repayment

November 29,
2019(Note 7)

May 29, 2020

(Note 8)

May 7, 2021

(Note 9)(Note 2)

SMBC

675

674

Mizuho Bank

612

611

1.148

643

642

(Note 2)

Shinsei Bank

April 30, 2015

MUFG Bank
SMBC
Mizuho Bank

551

550

1,375

1,374

1,252

1,251

1.185

1,314

1,312

(Note 2)

MUFG Bank

1,127

1,126

SMBC

1,962

1,960

Mizuho Bank

1,962

1,960

Aozora Bank

592

591

Shinsei Bank

775

774

1.275

1,634

1,632

(Note 2)

1,369

1,368

Shinsei BankMUFG Bank

April 30, 2015

May 7, 2015

Resona Bank
Bank of Fukuoka

449

448

ORIX Bank

449

448

SMBC

1,962

1,960

Mizuho Bank

1,962

1,960

Aozora Bank

592

591

Shinsei Bank

777

776

1.347

1,634

1,632

(Note 2)

1,367

1,366

MUFG Bank

May 07, 2015

Resona Bank
Bank of Fukuoka

449

448

ORIX Bank

449

448

1,592

1,590

SMBC

November 08,
2021(Note 9)March 31,2021

(Note 10)Mizuho Trust

287

287

Resona Bank

575

574

575

574

1,072

1,071

ORIX Bank

287

287

MUFG Bank

497

496

The Kagawa Bank

September 30,
2015

955

955

0.657

March 31,2020

Lump-sum
repayment

SMBC

September 30,
2015

895

894

0.606

September 30,
2019(Note 11)

May 31, 2022

(Note 12)

November 30,
2022(Note 12)

Aozora Bank
Mizuho Bank

September 30,
2015

0.985
(Note 2)

SMBC

1,444

1,442

Mizuho Bank

1,045

1,044

0.808

896

895

(Note 2)

MUFG Bank

May 09, 2016

Shinsei Bank
SMBC
Mizuho BankMUFG Bank
Shinsei Bank

May 09, 2016

Use

Collaterized(Note 15)No(No
guarantee)(Note 1)―

147

Resona Bank

Long-Term
Loans

Balance at
Period-start(million yen)

498

497

1,444

1,442

1,045

1,044

0.858

896

895

(Note 2)498

497

– 21 –

Lender

Loan
Date

SMBC

Balance at
Period-end(million yen)

1,792
896

895

MUFG Bank

697

696

597

597

498

497

Bank of Fukuoka

498

497

Nishi-Nippon City
Bank

498

497

Aozora BankMay 24, 2016

Resona Bank
SMBC

348

348

1,792

1,791

Mizuho Bank

896

895

MUFG Bank

697

696

Shinsei Bank

597

597

498

497

Bank of Fukuoka

498

497

Nishi-Nippon City
Bank

498

497

Aozora BankMay 24, 2016

Resona Bank

Average
Interest Rate(%)

Repayment
Date

Repayment
Terms

May 31, 2022

(Note 13)

(Note 2)

November 30,
2022(Note 13)

0.447

April 30, 2019

Lump-sum
repayment

0.845

October 31,
2023

Lump-sum
repayment

September 30,
2021

Lump-sum
repayment

0.705(Note 2)

0.750

348

348

SMBC

November 2,
2016

1,000

1,000

SMBC

November 2,
2016

1,000

1,000

Development Bankof JapanNovember 2,
2016

500

500

Development Bankof JapanNovember 2,
2016

500

500

0.708

January 31,
2022

Lump-sum
repayment

SMBC

May 10, 2017

1,000

－

0.387

October 31,
2018(Note 14)SMBC

May 10, 2017

1,100

1,100

0.852

November 11,
2024

Lump-sum
repayment

Mizuho Bank

May 10, 2017

400

－

0.387

October 31,
2018(Note 14)

Mizuho Bank

May 10, 2017

1,000

1,000

0.852

November 11,
2024

Lump-sum
repayment

Shinsei Bank

May 10, 2017

200

－

0.387

October 31,
2018(Note 14)

Shinsei Bank

May 10, 2017

900

900

0.852

November 11,
2024

Lump-sum
repayment

Resona Bank

May 10, 2017

400

400

(Note 2)

November 11,
2024

Lump-sum
repayment

Development Bankof JapanMay 10, 2017

2,000

2,000

0.871

May 10, 2023

Lump-sum
repayment

0.761

October 31,
2023

Lump-sum
repayment

SMBC

215

215

Mizuho Bank

340

340

MUFG Bank
Resona Bank
Shinsei Bank

November 07,
2017

Use

Collaterized(Note 15)No(No
guarantee)(Note 1)

1,791

Mizuho Bank
Shinsei Bank

Long-Term
Loans

Balance at
Period-start(million yen)

283

283

237

237

135

135

Bank of Fukuoka

195

195

ORIX Bank

195

195

– 22 –(Note 2)0.675

(Note 2)

(Note 2)

(Note 2)0.852

(Note 2)

Loan
Date

LenderBalance at
Period-start(million yen)

SMBC

633

633

Mizuho Bank

508

508

MUFG Bank

November 7,
2017

Resona Bank

425

0.948

356

(Note 2)

201

201

257

257

April 27, 2018

Aozora Bank

352

352

1,352

1,352

901

901

0.990
(Note 2)

Shinsei Bank

901

901

Resona Bank

448

448

SMBC

―

400

Mizuho Bank―350

Shinsei Bank―

300

MUFG Bank

―

300

0.795

―

225

(Note 2)The Kagawa Bank―

200

Nishi-Nippon City
Bank

―

225

SMBC

―

835

Mizuho Bank―

491

Shinsei Bank

―

393

―

393

May 9, 2018

Bank of Fukuoka

MUFG Bank

June 15, 2018

Aozora Bank―

393

Resona Bank―

294

The Kagawa Bank

Repayment
Date

Repayment
Terms

October 31,
2025

Lump-sum
repayment

April 30, 2026

Lump-sum
repayment

April 30, 2024

Lump-sum
repayment

0.860(Note 2)

November 11,
2024

Lump-sum
repayment

―

147

SMBC

September 28,
2018

―

500

0.635

February 29,
2024

Lump-sum
repayment

Mizuho Bank

September 28,
2018

―

400

0.635

February 29,
2024

Lump-sum
repayment

SMBC

October 31,
2018

―

1,000

0.962

April 30, 2026

Lump-sum
repayment

Mizuho Bank

October 31,
2018

―

400

0.712

April 30, 2026

Lump-sum
repayment

Shinsei Bank

October 31,
2018

―

200

0.712

April 30, 2026

Lump-sum
repayment

100,587

103,400

100,587

103,400

Subtotal
Total

Use

Collaterized(Note 15)No(No
guarantee)(Note 1)

425

Aozora Bank
Mizuho Trust

Average
Interest Rate
(%)

356

Shinsei Bank
SMBC

Long-Term
Loans

Balance at
Period-end(million yen)

(Note 2)

(Note 1)
(Note 2)Average Interest Rate indicates a weighted average of interest rates during the period based on the number of days, and it is rounded down to the stated unit.
To avoid interest rate risk, an interest rate swap agreement has been signed separately to fix the interest rates, and the weighted average interest rate during the period after theeffect of the interest rate swap is stated.
(Note 3) 5 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The entire amount of the balance at period-end is included in long-term borrowings due within one year.
(Note 4) 4 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The entire amount of the balance at period-end is included in long-term borrowings due within one year.
(Note 5) 3 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The balance at period-end includes long-term borrowings due within one year of 13 million yen.
(Note 6) The remaining balance was repaid on June 15, 2018.
(Note 7) 250 million yen was repaid on April 4, 2018, and 250 million yen was repaid on April 25, 2018.
1 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The balance at period-end includes long-term borrowings due within one year of 6 million yen.
(Note 8) 2 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The balance at period-end includes long-term borrowings due within one year of 10 million yen.
(Note 9) 4 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The balance at period-end includes long-term borrowings due within one year of 18 million yen.
(Note 10) 2 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The balance at period-end includes long-term borrowings due within one year of 9 million yen.
(Note 11) 0.4 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The entire amount of the balance at period-end is long-term borrowings due within one year.
(Note 12) 1 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The balance at period-end includes long-term borrowings due within one year of 7 million yen.
(Note 13) 2 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due date.
The balance at period-end includes long-term borrowings due within one year of 11 million yen.
(Note 14) The remaining balance was repaid on October 31, 2018.
(Note 15) The proceeds are used for acquisition of assets and/or beneficiary rights of real estate in trust and repayment of loans.

3 Investment Corporation Bonds
The status of investment corporation bonds outstanding as of October 31, 2018 is as follows:– 23 –

Date ofIssuance
First unsecured investment
corporation bonds
Second unsecured investment
corporation bonds
Total(Note 1)
(Note 2)September 22,
2017
April 26, 2018

Balance at
Period-start(million yen)

Balance at
Period-end(million yen)

1,200

1,200

1,000

1,000

2,200

2,200

The proceeds are used for repaying existing loans.
A ranking pari passu among Ichigo Office investment corporation bonds is attached.

4 Short-Term Investment Corporation Bonds
N/A

5 Share Options
N/A– 24 –

Interest Rate(%)

Redemption
Date

Redemption
Method0.900

September 22,
2027

Lump-sum
repayment

April 26, 2028

Lump-sum
repayment

0.900

Use

Colltarized(Note 1)No(No
guarantee)

Acquisitions and Sales during the Fiscal Period

1Acquisitions and Sales of Real Estate and Asset-Backed Securities, Infrastructure Assets,
and Infrastructure-Related Assets
Acquisitions
Asset Name

Date

Sales

Price
(million yen)Price(million yen)

Date

(Note)(Note)

Book Value(million yen)

Gain (loss)
on Sales(million yen)

Win Gotanda Building 2

May 9, 2018

3,300

―

―

―

―

MIF Building

May 9, 2018

2,200

―

―

―

―

Ichigo Uchi Honmachi Building

September 28,
2018

1,900

―

―

―

―

(Note) Acquisition and sales prices exclude incidental expenses such as fees and property, city planning, and consumption taxes.

2 Acquisition and Sales of Other Assets
Assets other than the assets acquired shown above are mostly bank deposits and bank deposits in trust.

3 Review of Asset Values (Appraisal Values)(1) Real EstateTransaction

Asset Name

Acquisition Win Gotanda Building 2
Acquisition MIF Building
Acquisition Ichigo Uchi Honmachi Building(Note 1)
(Note 2)

Transaction
Date

Transaction Price(million yen)Appraisal Value(million yen)

(Note 1)

(Note 2)

May 9, 2018

3,300

3,480

Appraiser

Date of
Appraisal

The Tanizawa Sōgō Appraisal Co.,Ltd.

March 1, 2018

May 9, 2018

2,200

2,320 Daiwa Real Estate Appraisal Co., Ltd.

September 28, 2018

1,900

2,000 Daiwa Real Estate Appraisal Co., Ltd. September 1, 2018

March 1, 2018

Transaction Prices exclude incidental expenses such as fees and property, city planning, and consumption taxes..
The appraisal above is carried out by applying the “Appraisal of Value of Real Estate for Securitization in Chapter 3 of the Specific Standards of the Japanese Real EstateAppraisal Standards.”(2) Other
For assets that require a transaction price investigation pursuant to Article 201 of the Act on Investment Trusts and Investment
Corporations and were not part of the list shown above, Ichigo Office entrusted the price inspection to Grant Thornton Taiyo LLC. For
the inspection period of May 1, 2018 to October 31, 2018, the transactions subject to price verification were three interest rate swaps.
With respect to the price verification of these interest rate swaps, all related research work was outsourced, including identification of
the transaction counterparties, currency, interest rates, maturity, and other relevant transaction information.

– 25 –

4 Transactions with Related Parties(Note 1)

(1) Transactions
Price, etc.(Note 2)
Acquisition Price (thousand yen)
Total Transactions

Sale Price (thousand yen)

7,400,000―

Breakdown of Transactions with Related Parties, etc.
Gotanda Holdings LLC

3,300,000 (44.6%)― (―%)

Kamakurabashi Holdings LLC

2,200,000 (29.7%)― (―%)

Total

5,500,000 (74.3%)― (―%)(2) Amount of Fees Paid
N/A
(Note 1)
(Note 2)

Related Parties are as defined in Article 123 of the Enforcement Ordinance of the Investment Trust and Investment Corporation Law and Article 26 Paragraph 27 of the Regulationof the Investment Trust Association, Japan.
The acquisition price and sale price are those stated in the purchase and sales contracts.

5 Transactions between the Asset Management Company and its Other Businesses
While Ichigo Investment Advisors Co., Ltd., the Asset Management Company of Ichigo Office, concurrently engages in operations of
the Type II Financial Instruments Business, Real Estate Brokerage Business, and Real Estate Syndication Business, there are no
applicable transactions.

– 26 –

Financial Statements

1 Assets, Liabilities, Principal, Profit and Loss
Please refer to “II. Balance Sheet,” “III. Income Statement,” “IV. Statement of Changes in Net Assets,” “V. Notes to Financial
Statements,” and “VI. Statement of Dividends” later in this report.

2 Changes in Method of Depreciation
N/A

3 Changes in Method of Real Estate and Infrastructure Assets Appraisal
N/A

Other

1 Ichigo Office Shares Held by Asset Management Company
Details of Ichigo Office shares held by Ichigo Investment Advisors Co., Ltd., the Asset Management Company, are as follows.

(1) Transactions
Date

Number of Shares Acquired (shares)

Number of Shares Sold (shares)

Number of Shares Held (shares)

November 1, 2011

(Note)1,200

―

1,400

Cumulative total

1,400

―

1,400

(Note) Reflects a 7-for-1 share split as November 1, 2011 the effective date.

(2) Status of Holdings
Number of Shares Heldat Period-end (shares)

Value of Shares Heldat Period-end(thousand yen)(Note)

Ratio of Total
Outstanding Shares (%)

17th Fiscal Period (November 1, 2013 to April 30, 2014)

1,400

86,1000.1

18th Fiscal Period (May 1, 2014 to October 31, 2014)

1,400

117,180

0.1

19th Fiscal Period (November 1, 2014 to April 30, 2015)

1,400

125,7200.1

20th Fiscal Period (May 1, 2015 to October 31, 2015)

1,400

117,040

0.1

21st Fiscal Period (November 1, 2015 to April 30, 2016)

1,400

116,760

0.1

22nd Fiscal Period (May 1, 2016 to October 31, 2016)

1,400

98,9800.1

23rd Fiscal Period (November 1, 2016 to April 30, 2017)

1,400

88,3400.1

24th Fiscal Period (May 1, 2017 to October 31, 2017)

1,400

103,040

0.1

25th Fiscal Period (November 1, 2017 to April 30, 2018)

1,400

113,820

0.1

26th Fiscal Period (May 1, 2018 to October 31, 2018)

1,400

129,6400.1(Note) The Value of Shares held at Period-end is calculated by multiplying the Number of Shares Held by the share price at period-end.

– 27 –

2 Notices(1) Shareholder Meeting
Ichigo Office’s 11th Shareholder Meeting was held on July 28, 2018. Major matters approved at the meeting are as follows:
Proposals

OutlineAmendment of the Articles of Incorporation

The Articles of Incorporation were amended to adjust the number of shares issued used in the calculation of cash
flow per share for treasury shares held at fiscal period-end by Ichigo Office or for any stock split or reverse stock
split. Cash flow per share is used for calculating the performance fee component of asset management fees paid to
the Asset Management Company.
Unnecessary articles were deleted to clarify expressions.

Appointment of one Executive Director

Yoshihiro Takatsuka was appointed as Executive Director.

Appointment of two Supervisory Directors

Takaaki Fukunaga and Masahiro Terada were appointed as Supervisory Directors.

Appointment of one Alternative Executive
Director

Keisuke Chiba was appointed as alternative Executive Director.

Appointment of one Alternative Supervisory
Director

Nagahisa Kita was appointed as alternative Supervisory Director.

(2) Board of Directors
Major matters approved by the Board of Directors are as follows:
Approval dateJune 22, 2018

Subjects

Notes

Partial changes of the asset management Changes corresponding to the amendment of the Articles of Incorporation stated in (1) above were
entrustment agreement
made as a result of the approval of the relevant proposals at the shareholder meeting.

3 Disclosure of Affiliated Foreign Real Estate Holding Companies
N/A

4 Disclosure of Assets Owned by Affiliated Foreign Real Estate Holding Companies
N/A

5 OtherIn this document, whole numbers are rounded down and ratios are rounded off, unless otherwise specified.

– 28 –

1. Financial Statements(1) Balance Sheet
Previous fiscal period(As of April 30, 2018)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property, plant, and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture, and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant, and equipment
Intangible assets
Leasehold rights in trust
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total non-current assets
Deferred assets
Bond issuance expenses
Total deferred assets
Total Assets– 30 –(Thousand Yen)
Current fiscal period(As of October 31, 2018)14,190,557
12,926,748
6,386
405,242
2,256
27,531,190

9,323,086
13,229,574
5,208
410,582
231,965
2,258
23,202,676

7,217,496(1,373,695)
5,843,800
26,385(21,744)
4,641
271,955(121,600)
150,354
50,344(37,845)
12,49817,425,755
41,255,897(5,862,784)
35,393,113
61,602(25,064)
36,538468,175(222,176)
245,998
159,839(84,185)
75,654
126,824,044
817
186,013,218

7,235,000(1,482,991)
5,752,008
26,834(22,864)
3,969
283,903(132,565)
151,337
52,176(40,337)
11,83817,425,755
42,869,885(6,557,635)*1 36,312,249
62,165(27,454)
34,710518,515(245,132)
273,383
171,689(97,101)
74,588133,082,735
754
193,123,333

4,494,579
4,494,579

4,494,579
4,494,579

10,005
891,835
63,768965,608
191,473,407

10,000890,520
63,335
963,856
198,581,769

24,05324,053
219,028,651

22,812
22,812
221,807,258

Previous fiscal period(As of April 30, 2018)
Liabilities
Current Liabilities
Operating accounts payable
Long-term loans (due within one year)
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Long-Term Liabilities
Investment corporation bonds
Long-term borrowings
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Asset retirement obligations
Other
Total long-term liabilities
Total Liabilities
Net Assets
Shareholders’ Equity
Shareholders’ capital
SurplusCapital reserve surplus
Discretionary reserves
Reserve for dividends
Reserve for temporary difference adjustments
Total discretionary reserves
Unappropriated retained earnings (undisposed loss)
Total surplus
Total Shareholders’ Equity
Total Net Assets
Total Liabilities and Net Assets– 31 –(Thousand yen)
Current fiscal period(As of October 31, 2018)

461,063
11,575,038
515,891
12,423605
390,836
1,646,717
21,698
14,624,273

719,409
14,270,145
591,670
4,140
605
95,224
1,451,818
34,324
17,167,337

2,200,000
89,012,547
1,526,885
8,358,832
3,361
56,879101,158,505
115,782,779

2,200,000
89,130,111
1,579,794
8,414,582
4,443
93,652
101,422,583
118,589,920

67,675,274

67,675,274

20,566,420

20,566,420

659,446

2,254,373*3 9,901,966*3 9,739,544

10,561,413
4,442,764
35,570,598
103,245,872*2 103,245,872
219,028,651

11,993,917
2,981,724
35,542,062
103,217,337*2 103,217,337
221,807,258

(2) Income Statement(Thousand yen)Previous fiscal period(November 1, 2017 toApril 30, 2018)
Operating Revenues
Rental revenues
Other rental revenues
Gain on sales of real estate
Total operating revenue
Operating Expenses
Rental expenses
Asset management fee
Asset custody fee
Administrative service fees
Directors' compensation
Other operating expenses
Total operating expenses
Operating Profit
Non-Operating Revenues
Interest income
Reversal of distribution payable
Insurance payment income
Other
Total non-operating revenues
Non-operating expenses
Interest expenses
Borrowing expenses
Amortization of bond issuance expenses
Total non-operating expenses
Recurring Profit
Extraordinary Profit
Insurance proceeds
Total extraordinary profit
Extraordinary Losses
Loss on reduction of non-current assets
Total extraordinary losses
Pre-tax income
Income taxes - current
Total income taxes
Net Income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)– 32 –

Current fiscal period(May 1, 2018 to
October 31, 2018)*1 6,803,488*1 6,947,280*1 663,702*1 685,072*2 1,594,926

9,062,117

7,632,352*1 3,008,519*1 2,993,236

723,276
14,703
44,9145,040
80,2733,876,727
5,185,390

765,737
14,76147,641
5,040
60,474
3,886,891
3,745,461

99
562
48,372
127
49,162

113
868
2,126
3,108

518,215
273,427760
792,404
4,442,148

537,655
251,361
1,241
790,258
2,958,311––*3 154,024––
4,442,148
605
605
4,441,543
1,220
4,442,764*4 130,854

154,024

130,854
2,981,480
605
605
2,980,875
848
2,981,724

(3) Statement of Changes in Net Assets
Previous fiscal period (November 1, 2017 to April 30, 2018)(Thousand yen)
Shareholders’ equity
SurplusDiscretionary reserves

Shareholders’capitalBalance at beginning of period

Capital reserve
surplusDividend reserve

20,566,420

659,446

67,675,274

Temporary
Total discretionary
difference
reserves
adjustment reserve
10,062,856

10,722,303(160,890)(160,890)

Changes during the period
Release from temporary
difference adjustment reserve
Dividends
Net Income
Total changes during the period
Balance at period-end

–

–

-

(160,890)(160,890)

67,675,274

20,566,420

659,446

9,901,966

10,561,413

Shareholders' equity
Surplus
Unappropriatedretained earnings(undisposed loss)
Balance at beginning of period

Totalshareholders’equityTotal surplus

Total net assets

2,797,644

34,086,368

101,761,642

101,761,642

160,890---(2,957,313)(2,957,313)(2,957,313)(2,957,313)
4,441,543

Changes during the period
Release from temporary
difference adjustment reserve
Dividends

4,441,543

4,441,543

4,441,543

Total changes during the period

Net Income

1,645,120

1,484,229

1,484,229

1,484,229

Balance at period-end

4,442,764

35,570,598

103,245,872

103,245,872– 33 –

Current fiscal period (May 1, 2018 to October 31, 2018)(Thousand yen)
Shareholders’ equity
SurplusDiscretionary reserves

Shareholders’capitalBalance at beginning of period

Capital reserve
surplusDividend reserve

20,566,420

659,446

67,675,274

Temporary
Total discretionary
difference
reserves
adjustment reserve
9,901,966

10,561,413

Changes during the period
Increase in dividend reserve

1,594,926

Release from temporary
difference adjustment reserve

1,594,926(162,422)(162,422)

Dividends
Net Income
Total changes during the period
Balance at period-end––

1,594,926(162,422)

1,432,504

67,675,274

20,566,420

2,254,373

9,739,544

11,993,917

Shareholders’ equity
Surplus
Unappropriatedretained earnings(undisposed loss)
Balance at beginning of period

Totalshareholders’equityTotal surplus

Total net assets

4,442,764

35,570,598

103,245,872

103,245,872(1,594,926)

–

–

–

162,422–––

Dividends(3,009,411)(3,009,411)(3,009,411)(3,009,411)

Net Income

2,980,875

2,980,875

2,980,875

2,980,875

Changes of items during period
Provision of reserve fordividends
Release from temporary
difference adjustment reserve

Total changes during period(1,461,039)(28,535)(28,535)(28,535)

Balance at period-end

2,981,724

35,542,062

103,217,337

103,217,337– 34 –

(4) Statement of Dividends
Previous fiscal period(November 1, 2017 toApril 30, 2018)
I. Unappropriated Retained Earnings
II. Discretionary Reserve Reversal
Reversal of Temporary Difference
Adjustment Reserve
III. Total Dividends(Dividend per share)
IV. Discretionary Reserves
Provision to Dividend Reserve
V. Retained Earnings Carried Forward

Current fiscal period(May 1, 2018 to
October 31, 2018)

4,442,764,274 yen

2,981,724,275 yen

162,422,422 yen

105,000,000 yen

3,009,411,668 yen(1,964 yen)

3,086,026,018 yen(2,014 yen)

1,594,926,730 yen
848,298 yen–
698,257 yen

Method for calculating the amount of dividends The distribution policy set out in Article The distribution policy set out in Article
37 of the Articles of Incorporation of the 37 of the Articles of Incorporation of theInvestment Corporation stipulates that
Investment Corporation stipulates thatthe amount of dividends shall exceed
the amount of dividends shall exceed
90% of “profit available for dividend” as 90% of “profit available for dividend” asprovided for in Article 67-15, Paragraph provided for in Article 67-15, Paragraph
1 of the Act on Special Measures
1 of the Act on Special Measures
Concerning Taxation. However, tax
Concerning Taxation. Based on thisincome does not arise in the current
policy, the decision was made tofiscal period as a result of offsetting
distribute, as the distribution of profits,taxable income by tax loss carried
3,086,026,018 yen, which was the entire
forward, even if the provisions of Article amount excluding the fractional portion
67-15 of the Act on Special Measures
where the amount of dividends per
Concerning Taxation are not applied. In investment unit was less than 1yen fromsuch a case, Article 37, Item 1 of the
3,086,724,275 yen, which was the
Articles of Incorporation stipulates that amount after adding 105,000,000 yen of
the amount of dividends shall be an
the reversal of the temporary difference
amount that the Investment Corporation adjustment reserve to 2,981,724,275 yen
has determined rationally. Based on this of unappropriated retained earnings. As apolicy, the decision was made to
result, dividend per share came to 2,014
distribute, as the distribution of profits, yen.
3,009,411,668 yen, which was the entire
amount excluding the fractional portion
where the amount of dividends perinvestment unit was less than 1 yen from
3,010,259,966 yen which was theamount after transferring 1,594,926,730
yen of gains on sales of real estate assets
to the reserve for dividends from
4,442,764,274 yen of unappropriatedretained earnings, and then adding
162,422,422 yen of the reversal of thetemporary difference adjustment reserve.
As a result, dividend per share came to1,964 yen.

– 35 –

(5) Cash Flow Statement(Thousand yen)Previous fiscal period(November 1, 2017 toApril 30, 2018)
Cash flows from operating activities
Pre-tax income
Depreciation
Interest income
Interest expense
Loss on retirement of non-current assets
Insurance proceeds
Loss on reduction of non-current assets
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in accrued consumption taxes
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable
Increase (decrease) in advances received
Decrease due to sales of property, plant, and equipment
Decrease due to sales of property, plant, and equipmentin trust
Other
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Cash flows from operations
Cash flows from investing activities
Purchase of property, plant, and equipment
Purchase of property, plant, and equipment in trust
Proceeds from tenant leasehold and security deposits
Repayments from tenant leasehold and security
deposits
Proceeds from tenant leasehold and security deposits intrust
Repayments from tenant leasehold and security
deposits in trust
Cash flows from investments
Cash flows from financing activities
Increase in long-term borrowings
Decrease in long-term borrowings
Proceeds from bond issuance
Dividends paid
Cash flows from financing
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period– 36 –

Current fiscal period(May 1, 2018 to
October 31, 2018)

4,442,148
914,757(99)
518,215–––
6,047
56,068(11,693)(60,648)
325,504(40,153)(211,764)
128,165
1,125,958

2,981,480
857,196(113)
537,655
269(154,024)
130,854
1,178(231,965)(5,340)1,314(295,611)
66,38775,778(194,899)–

3,097,844–

198,676
10,489,029
99(509,708)(605)
9,978,815

493,724
4,263,885
113(545,938)(605)
3,717,454(22,400)(369,221)
65,096(26,504)(7,864,015)
11,923(139,427)(199,014)

705,071785,265(507,415)(794,282)-268,296-8,086,626

7,934,000-9,528,111
988,359-2,956,168-3,561,921
6,148,597
20,903,272*1 27,051,869

7,446,000-4,633,329-3,008,722-196,051-4,565,222
27,051,869*1 22,486,646

(6) Notes to Financial Statements(Going concern note)
N/A(Summary of Significant Accounting Policies)
1. Method of depreciation of fixed(1) Property, plant, and equipment (including assets in trust)
assetsThe depreciation of property, plant, and equipment is calculated using the straight-line
method.
The useful lives of assets are as stated below.
Buildings: 1 to 63 years
Structures: 2 to 20 years
Machinery and equipment: 1 to 15 years
Tools, furniture and fixtures: 1 to 15 years(2) Long-term prepaid expenses
The depreciation of long-term prepaid expenses is calculated using the straight-line method.
2. Accounting for deferred assets

Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized equally over the period up to theredemption.

3. Standards for recognition ofrevenues and expenses

Accounting for fixed asset taxes, etc.
Of the amount of fixed asset taxes, city planning taxes and depreciable asset taxes imposed onreal estate owned that was assessed and determined, the amount corresponding to the relevant
computation period is expensed as expenses in the rental business.
The amount corresponding to fixed asset taxes for the first fiscal year that the Investment
Corporation should incur associated with the acquisition of real estate or trust beneficiaryinterests in real estate is not expensed, but is included in the acquisition costs of the realestate.
The amount corresponding to fixed asset taxes that was included in the acquisition costs ofreal estate for the current fiscal period is 24,346,000 yen.

4. Method of hedge accounting(1) Method of hedge accounting
In cases where the interest rate swaps meet the conditions for special treatment, special
treatment is adopted.
(2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items: Interest on loans(3) Hedging policy
The Investment Corporation conducts derivative transactions to hedge the risks set out in the
Articles of Incorporation based on the risk management regulations.
(4) Method for assessing the effectiveness of hedging
The evaluation of the effectiveness of interest rate swaps is omitted because they meet therequirements for special treatment.

5. Scope of funds on the cash flow
statement

Funds (cash and cash equivalents) on the cash flow statement consist of cash on hand, cash
held in trust, bank deposits and bank deposits held in trust that can be withdrawn at any time,and short-term investments, with a maturity of 3 months or less from the date of acquisition,
which are readily convertible to cash and contain only an insignificant risk of value
fluctuation.

6. Other significant matters serving as (1) Accounting for trust beneficiary interests in real estate
the basis for preparing financial
For trust beneficiary interests in real estate, all trust assets and liabilities as well as allstatements
income generated and expenses incurred in trusts are recorded in the relevant accounts on
the balance sheet and the income statement.
The following material items of the trust accounts recorded in the relevant accounts arelisted separately on the balance sheet.
(i) Cash and deposits in trust(ii) Buildings in trust; structures in trust; machinery and equipment in trust; tools, furnitureand fixtures in trust; land in trust; construction in progress in trust; and land leasehold
rights in trust(iii) Tenant leasehold and security deposits in trust(2) Accounting for consumption taxes
The accounting for consumption taxes is tax exclusive. Non-deductible consumption taxes
on assets are included in the acquisition costs of individual assets.

– 37 –

(Notes to accounting standards not yet applied)- “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29 on March 30, 2018, Accounting Standards Board of Japan)- “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30 on March 30, 2018,
Accounting Standards Board of Japan)(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) in the United States
jointly developed comprehensive accounting standards for revenue recognition, and “Revenue from Contracts with Customers” wasissued in May 2014 (IFRS 15 in IASB and Topic 606 in FASB). Given that IFRS 15 and Topic 606 would be applied from a businessyear starting on or after January 1, 2018 and after December 15, 2017, respectively, the Accounting Standards Board of Japan (ASBJ)
developed comprehensive standards for revenue recognition and published the Accounting Standard for Revenue Recognition with the
Implementation Guidance.
The basic policy of ASBJ for the development of accounting standards for revenue recognition is believed to set the accounting
standards from the perspective of comparability between financial statements, which is one of the benefits of promoting consistency
with IFRS 15, with the incorporation of the basic principles of IFRS 15 as a starting point, and if there are items that should beconsidered in practices implemented in Japan, to add alternative handlings to the extent to which comparability is not impaired.
(2) Planned date of application
The Accounting Standard for Revenue Recognition, etc. will be applied at the beginning of the fiscal period ending October 2021.
(3) Impact of applying the accounting standard, etc.
The amount of the impact of applying the Accounting Standard for Revenue Recognition, etc. on the financial statements is currently
under review.
(Notes to balance sheet)*1. Amount of advanced depreciation of property, plant, and equipment
Amount of advanced depreciation of property, plant, and equipment acquired with insurance proceeds(Thousand yen)Previous fiscal period
Current fiscal period(As of April 30, 2018)(As of October 31, 2018)―
130,854*2. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporation(Thousand yen)
Current fiscal period
Previous fiscal period(As of April 30, 2018)(As of October 31, 2018)
50,00050,000*3. Provision and reversal of temporary difference adjustment reserves
Previous fiscal period (As of April 30, 2018)

Initial amount

Balance at
beginning of
periodAmountAmountBalance at end
reserved during reversed duringof period
periodperiod(Thousand yen)
Reasons forprovision andreversal

Gain onAppropriation
Negative
10,432,940
10,062,856―
160,8909,901,966
to dividends
goodwill (Note)(Note) The initial amount of gain on negative goodwill is the amount previously transferred from gain on negative goodwill to thetemporary difference adjustment reserves account. For the previous fiscal period, 160,890,000 yen, which is greater than the
fixed reversal amount of 105,000,000 yen was reversed from the reserve.
Current fiscal period (As of October 31, 2018)

Initial amount

Balance at
beginning of
periodAmountAmountBalance at end
reserved during reversed duringof period
periodperiod(Thousand yen)
Reasons forprovision andreversal

Gain onAppropriation
Negative
10,432,940
9,901,966―
162,422
9,739,544
to dividends
goodwill (Note)(Note) The initial amount of gain on negative goodwill is the amount previously transferred from gain on negative goodwill to thetemporary difference adjustment reserves account. For the current fiscal period, 162,422,000 yen, which is greater than the
fixed reversal amount of 105,000,000 yen was reversed from the reserve.

– 38 –

(Notes to Income Statement)*1. Details of real estate rental income

A.

Real estate rental revenue
Rental Revenues
Rental revenue
Common area charges
Parking lot rental revenue
Facility use charges
Other rental revenue
Utilities revenue
Other(Thousand yen)Previous fiscal period(November 1, 2017 toApril 30, 2018)

Current fiscal period(May 1, 2018 to
October 31, 2018)

5,524,621
946,201
275,736
56,9296,803,488

5,676,610
937,777
278,461
54,431

663,702638,126
46,945597,408
66,293

Total real estate rental revenue
B.

C.

Real estate rental expenses
Rental expenses
Service provider expenses
Utilities
Trust fees
Depreciation
Repair expenses
Taxes and public dues
Non-life insurance expenses
Other rental expenses

7,467,190

691,537
590,740
33,733914,757
130,146
597,170
9,757
40,676

6,947,280

685,072
7,632,352

668,128
642,997
34,127857,196
117,337
619,297
11,88042,271

Total real estate rental expenses

3,008,519

2,993,236

Net rental income(A-B)

4,458,671

4,639,115– 39 –

*2. Details of real estate sales (Thousand yen)Previous fiscal period (November 1, 2017 to April 30, 2018)
Ichigo Burg Omori
Real estate sale revenue
Real estate sale cost
3,097,844
Other real estate sale expenses
126,5024,200,000

Gain on real estate sales
Ichigo Sapporo Minami 2 Nishi 3 Building
Real estate sale revenue
Real estate sale cost
Other real estate sale expenses

975,652

1,020,000
545,629
31,106

Gain on real estate sales
Ichigo Daimyo Balcony
Real estate sale revenue
Real estate sale cost
Other real estate sale expenses

443,263780,000
580,328
23,660Gain on real estate sales

176,010

Current fiscal period (May 1, 2018 to October 31, 2018)
N/A*3. Details of insurance income
Previous fiscal period (November 1, 2017 to April 30, 2018)
N/A
Current fiscal period (May 1, 2018 to October 31, 2018)
Insurance proceeds associated with the restoration work of air-conditioning equipment due to hail damage to the Ichigo Higashi
Ikebukuro Building in July 2017 is posted as insurance income.
*4. Details of loss on reduction of non-current assets
Previous fiscal period (November 1, 2017 to April 30, 2018)
N/A
Current fiscal period (May 1, 2018 to October 31, 2018)
The loss on reduction of fixed assets is a value that is directly reduced from the acquisition cost of property, plant, and equipment
newly acquired using insurance proceeds associated with the restoration work of air-conditioning equipment due to hail damage tothe Ichigo Higashi Ikebukuro Building in July 2017, and its breakdown is as follows:(Thousand yen)Previous fiscal period
Current fiscal period(November 1, 2017 to(May 1, 2018 toApril 30, 2018)
October 31, 2018)
Buildings in trust–

130,854(Statement of changes in net assets)
Previous fiscal period(November 1, 2017 toApril 30, 2018)
Total number of authorized shares and total number ofshares issued and outstanding
Total number of authorized shares
Total number of shares issued and outstanding

14,000,000 shares
1,532,287 shares– 40 –

Current fiscal period(May 1, 2018 to
October 31, 2018)

14,000,000 shares
1,532,287 shares

(Notes to statement of cash distribution)
Previous fiscal period (November 1, 2017 to April 30, 2018)

Current fiscal period (May 1, 2018 to October 31, 2018)

By applying the transitional measures of Paragraph 3 of the
Supplementary Provisions of the “Regulation on Accountings ofInvestment Corporations” (Cabinet Office Order No. 27 of 2015),
an amount of 10,432,940,000 yen, which was the remainingbalance of gain on negative goodwill was transferred to thetemporary difference adjustment reserve account, and planned toreverse a minimum of 200,000,000 yen starting from the 23rd
fiscal period, as stated on the statement of cash distribution for the
22nd fiscal period. But the policy has been changed to reversing aminimum of 105,000,000 yen starting from the 24th fiscal period.
For this fiscal period, 162,422,000 yen will be reversed.

By applying the transitional measures of Paragraph 3 of the
Supplementary Provisions of the “Regulation on Accountings ofInvestment Corporations” (Cabinet Office Order No. 27 of 2015),
an amount of 10,432,940,000 yen, which was the remainingbalance of gain on negative goodwill was transferred to thetemporary difference adjustment reserve account, and planned toreverse a minimum of 200,000,000 yen starting from the 23rd
fiscal period, as stated on the statement of cash distribution for the
22nd fiscal period. But the policy has been changed to reversing aminimum of 105,000,000 yen starting from the 24th fiscal period.
For this fiscal period, 105,000,000 yen will be reversed.

(Notes to cash flow statement)*1. Relationship between cash and cash equivalents at the end of the fiscal period and items shown on the Balance Sheet(Thousand yen)
Current fiscal period
Previous fiscal period(November 1, 2017 to(May 1, 2018 toApril 30, 2018)
October 31, 2018)
Cash and deposits
Cash and deposits in trust
Miscellaneous deposits

14,190,557
12,926,748(65,435)

9,323,086
13,229,574(66,014)

Cash and cash equivalents

27,051,869

22,486,646(Notes to lease transactions)Operating lease transactions(Lessee)Previous fiscal period(As of April 30, 2018)(Thousand yen)
Current fiscal period(As of October 31, 2018)

Outstanding lease charges
One year or lessOver one year

68,8101,135,214

69,171
1,100,267

Total

1,204,025

1,169,439(Lessor)Previous fiscal period(As of April 30, 2018)(Thousand yen)
Current fiscal period(As of October 31, 2018)

Outstanding lease charges
One year or lessOver one year

6,315,716
1,896,655

6,866,159
2,580,555

Total

8,212,372

9,446,715– 41 –

(Notes to financial instruments)
1. Matters concerning the status of financial instruments(1) Policy for handling financial instruments
Ichigo Office manages its assets by investing mainly in specified assets such as real estate with the aim of securing stable earnings in
the medium to long terms. It raises funds primarily through the issuance of investment units, the borrowing of bank loans and theissuance of investment corporation bonds. Derivative transactions are used for the purpose of mitigating the risk of future fluctuationsin interest rates, and not for trading or speculative purposes. Ichigo Office also invests surplus funds carefully in consideration of safety
and liquidity so as not to bear excess risks, taking the financial environment and cash management into full consideration.
(2) Description of financial instruments and associated risks, and risk management structure
Funds raised from loans and investment corporation bonds are used for the purchase of real estate and trust beneficiary interests in realestate and the repayment of loans, and they are exposed to the liquidity risk on the dates of repayment and redemption. Ichigo Office
not only works to reduce the liquidity risk through the diversification of financing and the decentralization of repayment dates andlenders by controlling LTV in the range that is deemed appropriate, but also manages the liquidity risk in terms of the way the asset
management company formulates a cash management plan. Loans with floating interest rates are exposed to the risk of fluctuations ininterest rates, but LTV is managed appropriately to limit the impact of rising market interest rates on the operations of Ichigo Office.
(3) Supplementary explanation of matters concerning the market value, etc. of financial instruments
In addition to values based on market prices, the market value of financial instruments includes values based on reasonable calculations
when there is no market price. Because certain preconditions, etc. are adopted in the calculation of the values concerned, there may becases where the values concerned will vary when different preconditions, etc. are adopted.
2. Matters concerning the market value, etc. of financial instruments
The carrying amount on the balance sheet on April 30, 2018, the market value, and the difference between the carrying amount and themarket value were as follows.
Financial instruments whose market value is deemed to be extremely difficult to determine are not included in the table below (see(Note2)), and those that are not material are omitted.
(Thousand yen)
Carrying valueMarket value
Difference(1) Cash and deposits
14,190,557
14,190,557–(2) Cash and deposits in trust
12,926,748
12,926,748–
Total assets

27,117,305

27,117,305(3) Long-term borrowings (due within one year)

11,575,038

11,591,357

16,319(4) Investment corporation bonds

2,200,000

2,193,551(6,448)89,012,547

89,787,363

774,815

102,787,585

103,572,272

784,687(5) Long-term borrowings
Total liabilities–(6) Derivative transactions–––(Note 1) Matters concerning the calculation method of the market value of financial instruments(1) Cash and deposits (2) Cash and deposits in trust
The book value is used as the market value because the market values of these items are almost equal to their book values
since they are settled within a short period of time.
(3) Long-term borrowings (due within one year) (5) Long-term borrowings
The market value of long-term loans with fixed interest rates is calculated by discounting the present value by an interest
rate that is assumed if the total amount of principal and interest is borrowed in similar new loans. The market value of longterm loans with floating interest rates is based on the book value because the market value is approximately equal to the bookvalue due to the situation in which the interest rate is renewed periodically. For some long-term loans with floating interest
rates that are subject to the special treatment of interest rate swaps (see “Notes to Derivative Transactions” below), the present
value is calculated by discounting the combined total of principal and interest translated at the logically estimated rates for
similar loans.
(4) Investment corporation bonds
The market value of investment corporation bonds is calculated by discounting it based on the reference values announced
by the Japan Securities Dealers Association.
(6) Derivative transactions
Please refer to “Notes to Derivative Transactions” below.

– 42 –

The carrying amount on the balance sheet on October 31, 2018, the market value, and the difference between the carrying amount andthe market value were as follows:
Financial instruments whose market value is deemed to be extremely difficult to determine are not included in the table below (see(Note2)), and those that are not material are omitted.
(Thousand yen)
Carrying valueMarket value
Difference(1) Cash and deposits
9,323,086
9,323,086–(2) Cash and deposits in trust
13,229,574
13,229,574–
Total assets(3) Long-term borrowings (due within one year)

22,552,661

22,552,661–

14,270,145

14,287,507

17,362(4) Investment corporation bonds

2,200,000

2,188,441(11,558)(5) Long-term borrowings

89,130,111

89,715,450

585,339

105,600,256

106,191,399

591,143

Total liabilities(6) Derivative transactions–––(Note 1) Matters concerning the calculation method of the market value of financial instruments(1) Cash and deposits (2) Cash and deposits in trust
The book value is used as the market value because the market values of these items are almost equal to their book values
since they are settled within a short period of time.
(3) Long-term borrowings (due within one year) (5) Long-term borrowings
The market value of long-term loans with fixed interest rates is calculated by discounting the present value by an interest
rate that is assumed if the total amount of principal and interest is borrowed in similar new loans. The market value of longterm loans with floating interest rates is based on the book value because the market value is approximately equal to the bookvalue due to the situation in which the interest rate is renewed periodically. For some long-term loans with floating interest
rates that are subject to the special treatment of interest rate swaps (see “Notes to Derivative Transactions” below), the present
value is calculated by discounting the combined total of principal and interest translated at the logically estimated rates for
similar loans.
(4) Investment corporation bonds
The market value of investment corporation bonds is calculated by discounting it based on the reference values announced
by the Japan Securities Dealers Association.
(6) Derivative transactions
Please refer to “Notes to Derivative Transactions” below.
(Note 2) Financial instruments whose market value is deemed to be extremely difficult to determine(Thousand yen)
Current fiscal period(As of October 31, 2018)

Previous fiscal period(As of April 30, 2018)

Classification(1) Tenant leasehold and security deposits
1,526,885
1,579,794(2) Tenant leasehold and security deposits in trust
8,358,832
8,414,582(1) (2) Tenant leasehold and securities deposits deposited by lessees in leasehold assets and tenant leasehold and securities
deposits in trust are not subject to the disclosure of market values because it is deemed to be extremely difficult to rationallyestimate future cash flows given that they do not have a market price and that it is difficult to determine the substantive
deposit period of lessees from when they move in until they vacate the asset.
(Note 3) Maturity profile of monetary receivables after the fiscal period-end date (April 30, 2018)
Due after 1
Due after 2
Due after 3
Due withinyear but
years but
years but
1 year
within 2 years within 3 years within 4 years
Cash and deposits
14,190,557–––
Cash and deposits in trust
12,926,748
–
–
–
Total

–

–

Maturity profile of monetary receivables after the fiscal period-end date (October 31, 2018)
Due after 1
Due after 2
Due after 3
Due withinyear but
years but
years but
1 year
within 2 years within 3 years within 4 years
Cash and deposits
9,323,086–––
Cash and deposits in trust
13,229,574–––

Due after 4
years butwithin 5 years
–
–

Total

27,117,305

22,552,661––– 43 ––(Thousand yen)
Due after 4
years butwithin 5 years
–
–

–

–

Due after
5 years–––(Thousand yen)–

Due after
5 years–––

(Note 4) Maturity profile of investment corporation bonds and long-term loans after the fiscal period-end date (April 30, 2018)(Thousand yen)
Due after 1
Due after 2
Due after 3
Due after 4
Due within
Due after
year but
years but
years but
years but
1 year
5 years
within 2 years within 3 years within 4 years within 5 years
Long-term borrowings(due within one year)

11,575,038

Investment corporation bonds
Long-term borrowings
Total

–

–

–

–

–

–

–

–

–

–

2,200,000–
11,575,038

16,198,215
16,198,215

19,897,332
19,897,332

19,317,000
19,317,000

19,266,000
19,266,000

14,334,000
16,534,000

Maturity profile of investment corporation bonds and long-term loans after the fiscal period-end date (October 31, 2018)(Thousand yen)
Due after 1
Due after 2
Due after 3
Due after 4
Due within
Due after
year but
years but
years but
years but
1 year
5 years
within 2 years within 3 years within 4 years within 5 years
Long-term borrowings
14,270,145
–
–
–
–
–
(due within one year)
Investment corporation bonds
Long-term borrowings
Total

–

–

–

–

–

2,200,000–
14,270,145

18,493,568
18,493,568

19,941,293
19,941,293

19,292,000
19,292,000

14,223,250
14,223,250

17,180,000
19,380,000(Securities)
Previous fiscal period (As of April 30, 2018)
N/A
Current fiscal period (As of October 31, 2018)
N/A– 44 –

(Notes to derivative transactions)
1. Non-hedge accounting derivatives
Not applicable in the previous fiscal period (ended April 30, 2018) and the current fiscal period (ended October 31, 2018).
2. Hedge accounting derivatives
Previous fiscal period (As of April 30, 2018)
Method of hedge
accounting

Type of derivativetransaction

Contract amount
Main hedged item

Over one year

(Thousand yen)Calculation
Marketmethod ofvaluemarket value

Interest rate swap
transaction
Long-term
88,187,995
84,164,297 (Note)–(pay fixed, receive
borrowings
floating)(Note) Interest rate swaps accounted under the special treatment method are processed together with the hedged items (in this case, along-term borrowing). Therefore, their market values are included in the market values of (3) Long-term borrowings (due within
one year) (5) long-term borrowings payable in (Note 1) of “Notes to financial instruments, 2. Matters concerning the market
value, etc. of financial instruments” above.
Special treatment ofinterest rate swaps

Current fiscal period (As of October 31, 2018)
Method of hedge
accounting

Type of derivativetransaction

Contract amount
Main hedged item

Over a year

(Thousand yen)Calculation
Marketmethod ofvaluemarket value

Interest rate swap
transaction
Long-term
94,051,106
83,675,111 (Note)–(pay fixed, receive
borrowings
floating)(Note) Interest rate swaps accounted under the special treatment method are processed together with the hedged items (in this case,long-term borrowings). Therefore, their market values are included in the market values of (3) Long-term borrowings (due within
one year) (5) long-term borrowings payable in (Note 1) of “Notes to financial instruments, 2. Matters concerning the market
value, etc. of financial instruments” above.
Special treatment ofinterest rate swaps(Notes to retirement benefits)
Previous fiscal period (As of April 30, 2018)
N/A
Current fiscal period (As of October 31, 2018)
N/A– 45 –

(Notes to tax effect accounting)
1. Breakdown of deferred tax assets and liabilities by major cause
Previous fiscal period(As of April 30, 2018)
Deferred tax assets
Valuation difference of assets transferred at merger
5,852,155
Asset retirement obligations
676
Tax loss carried forward
336,476
Other
347
Subtotal
Valuation allowance(Thousand yen)
Current fiscal period(As of October 31, 2018)
5,838,345
1,031
336,476163

6,189,656(6,189,656) (6,176,016(6,176,016)

–

–

–

–

Total deferred tax assets
Deferred tax assets (net)

2. Breakdown of tax rate differences between the statutory tax rate and the effective tax rate by major cause
Previous fiscal period
Current fiscal period(As of April 30, 2018)(As of October 31, 2018)
Statutory tax rate
(Adjustment)
Deductible dividend distribution
Change in valuation allowance
Use of tax loss carried forward
Other

31.74%

31.51%–%(5.34%)(26.41%)
0.02%(31.11%)(0.40%)
–%
0.02%

0.01%

0.02%

Effective tax rate
(Notes to share of profit and loss of entities accounted for using the equity method)
Previous fiscal period (November 1, 2017 to April 30, 2018)
N/A
Current fiscal period (May 1, 2018 to October 31, 2018)
N/A(Notes to related party transactions)
1. The parent company and principal shareholders of Ichigo Office
Not applicable in the previous fiscal period (from November 1, 2017 to April 30, 2018) and the current fiscal period (from May 1,
2018 to October 31, 2018)
2. Affiliated companies
Not applicable in the previous fiscal period (from November 1, 2017 to April 30, 2018) and the current fiscal period (from May 1,
2018 to October 31, 2018)
3. Fellow subsidiaries
Not applicable in the previous fiscal period (from November 1, 2017 to April 30, 2018) and the current fiscal period (from May 1,
2018 to October 31, 2018)
4. Directors and principal individual shareholders
Not applicable in the previous fiscal period (from November 1, 2017 to April 30, 2018) and the current fiscal period (from May 1,
2018 to October 31, 2018)– 46 –

(Asset retirement obligations)
Previous fiscal period (November 1, 2017 to April 30, 2018)
The statement is omitted because the total amount of asset retirement obligations is not material.
Current fiscal period (May 1, 2018 to October 31, 2018)
The statement is omitted because the total amount of asset retirement obligations is not material.
(Notes to rental assets)
Ichigo Office owns rental assets mainly in the six wards of central Tokyo, other Tokyo metropolitan areas, the four largest cities andother major cities for the purpose of earning stable rental revenues. The carrying amounts, increase (decrease) during the period, andmarket values of these rental assets are as follows:(Thousand yen)
Current fiscal period
Previous fiscal period
Use(November 1, 2017 to(May 1, 2018 toApril 30, 2018)
October 31, 2018)
Carrying amount
Balance at the beginning of period
Office177,092,732

Increase (decrease) during period

176,647,062(445,669)

7,150,982

Balance at period-end

176,647,062

183,798,045

Market value at period-end

202,980,000

212,888,000

Balance at the beginning of period

18,156,684

13,859,917

Increase (decrease) during period(4,296,766)(40,805)

Balance at period-end

13,859,917

13,819,112

Market value at period-end

16,120,000

16,310,000

Balance at the beginning of period

195,249,417

190,506,980

Increase (decrease) during period(4,742,436)

7,110,177

Balance at period-end

190,506,980

197,617,158

Carrying amount
Other

Carrying amount
Total

Market value at period-end
219,100,000
229,198,000(Note 1) The carrying amounts represent the amounts after deducting the accumulated depreciation from the acquisition costs.
(Note 2) The major decrease in rental assets during the previous fiscal period was due to sales of trust beneficiary interests in real estateof one asset (3,097,844,000 yen) and two assets (1,125,958,000 yen) as well as depreciation.
The major increase during the current fiscal period was due to the acquisition of trust beneficiary interests in real estate of three
assets (7,514,322,000 yen), and the major decrease was due to depreciation.
(Note 3) The market value at the end of the period was based on the appraisal value or investigation value estimated by external realestate appraisers.
The details of real estate rental income is stated in “Income Statement.”– 47 –

(Segment information)
The segment information is omitted because Ichigo Office has only one segment of the real estate rental business.
(Related information)
Previous fiscal period (November 1, 2017 to April 30, 2018)
1. Information by product and service
The statement is omitted because operating revenue from external customers in a single product and service category comprises morethan 90% of operating revenue on the Income Statement.
2. Information by region(1) Operating revenue
The statement is omitted because operating revenue from external customers in Japan comprises more than 90% of operating revenue
on the income statement.
(2) Property, plant and equipment
The statement is omitted because the amount of property, plant and equipment located in Japan comprises more than 90% of theamount of property, plant and equipment on the balance sheet.
3. Information by main customer
The statement is omitted because all operating revenue from a single external customer comprises less than 10% of operating revenue
on the income statement.
Current fiscal period (May 1, 2018 to October 31, 2018)
1. Information by product and service
The statement is omitted because operating revenue from external customers in a single product and service category comprises morethan 90% of operating revenue on the income statement.
2. Information by region(1) Operating revenue
The statement is omitted because operating revenue from external customers in Japan comprises more than 90% of operating revenue
on the income statement.
(2) Property, plant and equipment
The statement is omitted because the amount of property, plant and equipment located in Japan comprises more than 90% of theamount of property, plant and equipment on the balance sheet.
3. Information by main customer
The statement is omitted because all operating revenue from a single external customer comprises less than 10% of operating revenue
on the income statement.
(Notes to per-share information)
Current fiscal period(May 1, 2018 to
October 31, 2018)

Previous fiscal period(November 1, 2017 toApril 30, 2018)

Net assets per share (yen)67,38067,361
Net income per share (yen)
2,898
1,945
(Note 1) Net income per share is calculated by dividing net income by the daily weighted average number of shares. Diluted net
income per share is not stated because there are no diluted shares.
(Note 2) The basis for calculating net income per share is as follows.
Current fiscal period(May 1, 2018 to
October 31, 2018)

Previous fiscal period(November 1, 2017 toApril 30, 2018)
Net Income(Thousand yen)

4,441,543

2,980,875

Amount not attributable to common shareholders(Thousand yen)––

Net income attributable to common shareholders(Thousand yen)

4,441,543

2,980,875(Shares)

1,532,287

1,532,287

Average number of shares during period– 48 –

(Notes to significant subsequent events)
1. Acquisition of assets
Ichigo Office acquired the following assets based on the basic policy for asset management set forth in the Articles of Incorporation.
[Ichigo Minami Otsuka Building (Note 1)]
Acquisition Price (Note 2)
2,780,000,000 yen
Location
3-10-10 Minami Otsuka, Toshima-ku, Tokyo
Legal form of asset
Trust beneficiary interest in real estate (juekiken)
Type of ownership
Land: Freehold
Building: Freehold
Contract date
December 14, 2018
Closing date
December 21, 2018
Seller (Note 3)
Domestic special purpose company[Ichigo Nogizaka Building (Note 1)]
Acquisition Price (Note 2)
Location
Legal form of asset
Type of ownership
Contract dateClosing dateSeller (Note 3)

3,315,000,000 yen
8-11-37 Akasaka, Minato-ku, Tokyo
Trust beneficiary interest in real estate (juekiken)
Land: Freehold
Building: Freehold
December 14, 2018
December 28, 2018
Domestic business firm

(Note 1) After the acquisition, Ichigo Office will change the building names from “Minami Otsuka Square Building” to “Ichigo
Minami Otsuka Building” and from “Unizo Nogizaka Building” to “Ichigo Nogizaka Building.”(Note 2) The acquisition price is the transaction price of the trust beneficiary interest (juekiken) and does not include expenses foracquisition, the amount equivalent to settled fixed asset taxes and city planning taxes, and the amount equivalent to
consumption taxes.
(Note 3) The sellers did not provide consent to disclose their names.
[Ichigo Hakata East Building (Note 1)]
Acquisition Price (Note 2)
Location
Legal form of asset
Type of ownership
Contract dateClosing dateSeller (Note 3)

2,250,000,000 yen
1-13-6 Hakataeki Higashi, Hakata-ku, Fukuoka
Trust beneficiary interest in real estate (juekiken)
Land: Freehold
Building: Freehold
May 29, 2019
May 31, 2019
Kichijoji Holdings GK(Note 1) After the acquisition, Ichigo Office will change the building name from “Takeyama Hakata Building” to “Ichigo Hakata East
Building”.
(Note 2) The acquisition price is the transaction price of the trust beneficiary interest (juekiken) and does not include expenses foracquisition, the amount equivalent to settled fixed asset taxes and city planning taxes, and the amount equivalent to
consumption taxes.

– 49 –

2. Sales of assets
Ichigo Office sold the following assets based on the basic policy for asset management set forth in the Articles of Incorporation.
Ichigo Machida East Building
Sales Price (Note 1)
Book value (Note 2)
Location
Legal form of asset
Contract dateClosing date
Buyer (Note 3)

Not disclosed
1,272,784,000 yen
4-5-8 Haramachida, Machida City, Tokyo
Trust beneficiary interest in real estate (juekiken)
December 14, 2018
December 20, 2018
Domestic special purpose company

Ichigo Shin Yokohama Arena Dori Building
Sales Price (Note 1)
Not disclosed
Book value (Note 2)
1,679,745,000 yen
Location
3-7-7 Shin-Yokohama, Kohoku-ku, Yokohama
Legal form of asset
Trust beneficiary interest in real estate (juekiken)
Contract date
December 14, 2018
Closing date
December 20, 2018
Buyer (Note 3)
Domestic special purpose company(Note 1) This is a sale to a single buyer in a single sales contract, and the total transfer price of two assets is 3,600,000,000 yen. The
sales price is the transaction price of the trust beneficiary interest (juekiken) and does not include expenses for acquisition,
the amount equivalent to settled fixed asset taxes and city planning taxes, and the amount equivalent to consumption taxes.
The sales price of individual assets is not disclosed because the consent of the buyer has not been obtained. In the 27th fiscal
period (from November 1, 2018 to April 30, 2019), gain on sales of real estate of approximately 645,250,000 yen for a totalof two assets is expected to be recorded.
(Note 2) The book value is the price as of October 31, 2018.
(Note 3) The buyer did not provide consent to disclose its name.
Ichigo Toyamaeki Nishi Building (Note 1)
Sales Price (Note 2)
12,369,952 yen
Book value (Note 3)
4,734,000 yen
Location
1-1-19 Jinzu Honmachi, Toyama City, Toyama
Legal form of asset (Note 4)
Real estate
Contract dateFebruary 21, 2019
Closing dateFebruary 21, 2019
Buyer
Toyama Prefecture(Note 1) This is a sale of a section of the underlying land of Ichigo Toyamaeki Nishi Building to the Toyama Prefecture. The roadadjacent to the northwestern side of the building is a prefectural road subject to an urban planning project (as establishedMar 31, 1959, and amended April 27, 2005). An additional section of the underlying land also became subject to this project
on April 11, 2011. After negotiations with the Toyama Prefecture, Ichigo Office has agreed to sell the section of the land.
(Note 2) The sales price is the total sales price indicated in the Purchase and Sales Agreement. In addition, Ichigo Office will receive
a compensation of 11,800,110 yen for the closing and removal of a paid parking lot. The compensation will be recorded in
the 27th fiscal period (from November 1, 2018 to April 30, 2019).
(Note 3) The book value is an estimate based upon the price as of October 31, 2018, calculated proportionate to the section’s land
area.
(Note 4) The sales will be conducted after transferring the ownership of the asset to Ichigo Office as a legal form of real estate, upon
the cancellation of the trust beneficiary interest (juekiken).

– 50 –

Ichigo Fiesta Shibuya Building
Sales Price (Note 1)
Book value (Note 2)
Location
Legal form of asset
Contract dateClosing date
Buyer

2,400,000,000 yen
1,960,027,000 yen
3-10 Udagawacho, Shibuya-ku, Tokyo
Trust beneficiary interest in real estate (juekiken)
May 29, 2019
May 30, 2019
Hakata GK(Note 1) The sales price is the transaction price of the trust beneficiary interest (juekiken) and does not include expenses for acquisition,
the amount equivalent to settled fixed asset taxes and city planning taxes, and the amount equivalent to consumption taxes.
In the 28th fiscal period (from May 1, 2019 to October 31, 2019), a gain on sale of real estate of approximately 440,477,000
yen is expected to be recorded.
(Note 2) The book value is the price as of April 30, 2019.

– 51 –

3. Borrowing of loans
Ichigo Office borrowed the following loans to appropriate them for the acquisition of assets and related expenses.
[Term loan XVI]
Lender:Amount borrowed:
Interest rate:
Borrowing date:Due date:
Interest payment date:
Repayment method:
Borrowing method:

SMBC, Aozora Bank
1,400,000,000 yen
1 month JPY TIBOR + 0.68% (Note)
December 21, 2018
September 30, 2026
Final business day of each month after the date of borrowing and the due date of the principal
Lump-sum repayment on the due dateUnsecured / unguaranteed(Note) To avoid interest rate risk, Ichigo Office has entered into a separate interest rate swap agreement. The interest rate is
substantively fixed at 0.9075% due to this agreement.
[Term loan XVII]
Lender:Amount borrowed:
Interest rate:
Borrowing date:Due date:
Interest payment date:
Repayment method:
Borrowing method:

SMBC, Mizuho Bank, Shinsei Bank, MUFG Bank, Development Bank of Japan
1,600,000,000 yen
1 month JPY TIBOR + 0.65% (Note)
December 28, 2018
April 30, 2026
Final business day of each month after the date of borrowing and the due date of the principal
Lump-sum repayment on the due dateUnsecured / unguaranteed(Note) To avoid interest rate risk, Ichigo Office has entered into a separate interest rate swap agreement. The interest rate is
substantively fixed at 0.850% due to this agreement.

– 52 –

(7) Supplementary Schedules(i) Schedule of securities(a) Stocks
N/A(b) Securities other than stocks
N/A(ii) Contract value and market value of derivative transactions and forward exchange contracts(Thousand yen)Contract amount (Note 1)

Classification

Type

Transactions other than market
transactions

Interest rate swap
(pay fixed, receive floating)

Exceeding 1 year
94,051,106

Market value (Note 2)

83,675,111

–

Total
94,051,106
83,675,111–(Note 1) The contract amount of interest rate swap is based on the notional principal.
(Note 2) Since the above transaction meets the specific matching criteria of the Accounting Standard for Financial Instruments, thestatement of market value is omitted.
(iii) Summary table of schedule of real estate(Thousand yen)
Asset type

Balance atIncrease during
Decrease
beginning of
periodduring period
current period

Balance at endof current
periodAccumulated depreciation or
accumulated amortization
Depreciation oramortization
during period

Balance at endof current
Remarks
periodBuildings

7,217,496

17,504―7,235,000

1,482,991

109,296

5,752,008(Note)

Structures

26,385449―

26,834

22,864

1,120

3,969

(Note)

Machinery and equipment

271,955

11,947―283,903

132,565

10,964

151,337(Note)

Tools, furniture and fixtures

50,344

1,832―

52,17640,337

2,492

11,838(Note)

17,425,755――

17,425,755――

17,425,755

41,255,897

1,614,466

478

42,869,885

6,557,635

695,060

36,312,249(Note)

61,602562―

62,16527,4542,390

34,710(Note)

468,175

50,339―518,515

245,132

22,955273,383(Note)

159,839

11,849―171,689

97,101

12,91574,588(Note)

126,824,044

6,258,691―

133,082,735――

133,082,735(Note)

817

―

63

754

―

―

754

Land
Buildings in trust
Property, Structures in trust
plant andequipment Machinery and equipment in
trust
Tools, furniture and fixtures intrust
Land in trust
Construction in progress intrust

193,762,315

7,967,643

541

201,729,417

8,606,083

857,196

193,123,333

Intangible Land leasehold rights in trust
assetsSubtotal

Subtotal

4,494,579――

4,494,579――

4,494,579

4,494,579――

4,494,579――

4,494,579

Total

198,256,895

7,967,643

541

206,223,996

8,606,083

857,196

197,617,913(Note) The major increase in property, plant and equipment during the current fiscal period was due to the acquisition of trust beneficiaryinterests in real estate of three assets (7,514,322,000 yen), and the major decrease was due to depreciation.
(iv) Schedule of other specified assets
N/A– 53 –

(v) Schedule of investment corporation bonds(Thousand yen)
Date ofissuance

Balance at
Decrease
Balance atperiod-start during period period-end

First unsecured
investment corporation
bonds

September
22, 2017

1,200,000

Second unsecured
investment corporation
bonds

April 26,2018–

1,000,000

1,200,000–

1,000,000

Interest rate Redemption
(%)
date

Use

Security(Note 1)

Unsecured/
unguaranteed

September
22, 2027

0.900

April 26,
2028

0.900

Total
–
2,200,000–
2,200,000––––(Note 1) The proceeds are used for repaying existing loans.
(Note 2) A ranking pari passu among Ichigo Office investment corporation bonds is attached.
(Note 3) The maturity profile of investment corporate bonds for each year within five years after the balance sheet date is as follows.
(Thousand yen)
Due after 1 year but Due after 2 years Due after 3 years Due after 4 years
Due within 1 year
within 2 years
but within 3 years but within 4 years but within 5 years
Investment corporation bonds

–

–

–

–

–

(vi) Schedule of loans
Lender

1,551,150

–

4,000

1,547,150

Shinsei Bank

484,750–

1,250

483,500

Aozora Bank

1,066,430

–

2,750

1,063,680

Mizuho Bank

775,590–

2,000

773,590

Resona Bank

1,000,000––

1,000,000

Bank of Fukuoka

1,000,000––

1,000,000

SMBC

1,473,827

–

1,875

1,471,952

Mizuho Bank

1,277,342

–

1,625

1,275,717

Resona Bank

884,312–1,125

883,187

Shinsei Bank

884,312–1,125

883,187

Aozora Bank

884,312–1,125

883,187

The Kagawa Bank

491,282–625

490,657

SMBC

491,282–625

490,657

SMBC

1,228,962

–

1,562

1,227,400

Mizuho Bank

1,228,982

–

1,562

1,227,420

Aozora Bank

786,550–

1,000

785,550

Shinsei Bank

786,550–

1,000

785,550

Resona Bank

589,920–750

589,170

MUFG Bank

786,550–

1,000

785,550

SMBC

196,740–

196,740–

Mizuho Bank

245,772–

245,772–

Aozora Bank

196,620–

196,620–

Shinsei Bank

196,610–

196,610–

Resona Bank

147,437–

147,437–

The Kagawa Bank

147,477–

147,477–

ORIX Bank

147,467–

147,467–

MUFG Bank

196,630–

196,630–

SMBC

1,228,962

–

1,562

1,227,400

Mizuho Bank

1,228,982

–

1,562

1,227,420

Aozora Bank

786,550–

1,000

785,550

Shinsei Bank

786,550–

1,000

785,550

Resona Bank

589,920–750

589,170

MUFG Bank

786,550–

1,000

785,550

ORIX Bank

Long-termloans

Average
Balance atIncrease during
Decrease
Balance atinterest rate Repayment Repayment
period-start
periodduring period
period-end
(%)
date
terms
(Thousand yen) (Thousand yen) (Thousand yen) (Thousand yen)
(Note 1)

– 54 –

1.468(Note 2)

November30, 2018(Note 3)

0.984

April 30,
2019

Lump-sum
repayment

1.070(Note 2)

July 31,2019(Note 4)

1.267
(Note 2)

December
10, 2020(Note 5)0.726

June 15,2018(Note 6)1.033
(Note 2)

December16, 2019(Note 5)Use

Collateralized(Note 15)No
(No guarantee)

Lender
SMBC

344,087–

344,087–

Mizuho Bank

245,802–245,802–

Aozora Bank

196,640–

196,640–

Shinsei Bank

196,640–

196,640–

Resona Bank

147,487–

147,487–

ORIX Bank

147,487–

147,487–

MUFG Bank

196,640–

196,640–

Aozora Bank

2,127,000––

2,127,000

Shinsei Bank

1,998,000––

1,998,000

ORIX Bank

400,000––

400,000

SMBC

675,103–

816

674,287

Mizuho Bank

612,226–

740

611,486

Shinsei Bank

643,665–778

642,887

551,004–666

550,338

SMBC

1,375,696

–

1,384

1,374,312

Mizuho Bank

1,252,440

–

1,260

1,251,180

Shinsei Bank

1,314,068

–

1,322

1,312,746

MUFG Bank

1,127,196

–

1,134

1,126,062

SMBC

1,962,156

–

1,974

1,960,182

Mizuho Bank

1,962,156

–

1,974

1,960,182

Aozora Bank

592,424–596

591,828

Shinsei Bank

777,308–

782

776,526

MUFG Bank

1,634,136

–

1,644

1,632,492

Resona BankMUFG Bank

Long-termloans

Average
Balance atIncrease during
Decrease
Balance atinterest rate Repayment Repayment
period-start
periodduring period
period-end
(%)
date
terms
(Thousand yen) (Thousand yen) (Thousand yen) (Thousand yen)
(Note 1)

1,367,744

–

1,376

1,366,368

Bank of Fukuoka

449,288–452

448,836

ORIX Bank

449,288–452

448,836

SMBC

1,962,156

–

1,974

1,960,182

Mizuho Bank

1,962,156

–

1,974

1,960,182

Aozora Bank

592,424–596

591,828

Shinsei Bank

775,320–780

774,540

MUFG Bank

1,634,136

–

1,644

1,632,492

Resona Bank

1,369,732

–

1,378

1,368,354

Bank of Fukuoka

449,288–452

448,836

ORIX Bank

449,288–452

448,836

1,592,393

–

1,601

1,590,792

Mizuho Trust

287,509–289

287,220

Resona Bank

575,019–578

574,441

Aozora Bank

575,019–578

574,441

Mizuho Bank

1,072,269

–

1,078

1,071,191

ORIX Bank

287,509–289

287,220

MUFG Bank

497,250–500

496,750

The Kagawa Bank

955,000

–

–

SMBC

895,050–

SMBC

1,444,200

Mizuho Bank

1,045,800

MUFG Bank

SMBC

June 15,
2018

1.142
(Note 2)

August 31, Lump-sum
2020
repayment

1.148(Note 2)

November29, 2019(Note 7)1.185
(Note 2)

May 29,2020(Note 8)

1.347
(Note 2)

November
8, 2021(Note 9)May 7,
2021(Note 9)0.985
(Note 2)

March 31,2021

(Note 10)955,000

0.657

March 31,2020

Lump-sum
repayment

900

894,150

0.606

September
30, 2019(Note 11)

–

1,450

1,442,750

–

1,050

1,044,750

896,400–

900

895,500

0.808(Note 2)

May 31,
2022(Note 12)0.858
(Note 2)

November30, 2022(Note 12)

498,000–

500

497,500

1,444,200

–

1,450

1,442,750

Mizuho Bank

1,045,800

–

1,050

1,044,750

MUFG Bank

896,400–

900

895,500

Shinsei Bank

498,000–

500

497,500– 55 –

Collateralized(Note 15)No
(No guarantee)(Note 6)1.275
(Note 2)

SMBC

Shinsei Bank

0.726

Use

Lender

1,792,800

–

1,800

1,791,000

Mizuho Bank

896,400–

900

895,500

MUFG Bank

697,200–

700

696,500

Shinsei Bank

597,600–

600

597,000

Aozora Bank

498,000–

500

497,500

Bank of Fukuoka

498,000–

500

497,500

Nishi-Nippon CityBank

498,000–

500

497,500

SMBC

348,600–

350

348,250

1,792,800

–

1,800

1,791,000

Mizuho Bank

896,400–

900

895,500

MUFG Bank

697,200–

700

696,500

Shinsei Bank

597,600–

600

597,000

Aozora Bank

498,000–

500

497,500

Bank of Fukuoka

Resona Bank
SMBC

Long-termloans

Average
Balance atIncrease during
Decrease
Balance atinterest rate Repayment Repayment
period-start
periodduring period
period-end
(%)
date
terms
(Thousand yen) (Thousand yen) (Thousand yen) (Thousand yen)
(Note 1)0.705
(Note 2)

May 31,
2022(Note 13)0.750
(Note 2)

November30, 2022(Note 13)

Lump-sum
repayment

498,000–

500

497,500

Nishi-Nippon CityBank

498,000–

500

497,500

Resona Bank

348,600–

350

348,250

SMBC

1,000,000––

1,000,000

0.447

April 30,
2019

SMBC

1,000,000––

1,000,000

0.845(Note 2)October 31, Lump-sum
2023
repayment

Development
Bank of Japan

500,000––

500,000

0.675

September Lump-sum
30, 2021 repayment

Development
Bank of Japan

500,000––

500,000

0.708

January 31, Lump-sum
2022
repayment

SMBC

1,000,000–

1,000,000

–

0.387

October 31,(Note 14)
2018

SMBC

1,100,000––

1,100,000

0.852(Note 2)

November Lump-sum
11, 2024 repayment

Mizuho Bank

400,000–

400,000–

0.387

October 31,(Note 14)2018

Mizuho Bank

1,000,000––

1,000,000

0.852(Note 2)

November Lump-sum
11, 2024 repayment

Shinsei Bank

200,000–

200,000–

0.387

October 31,(Note 14)2018

Shinsei Bank

900,000––

900,000

0.852(Note 2)

November Lump-sum
11, 2024 repayment

Resona Bank

400,000––

400,000

0.852(Note 2)

November Lump-sum
11, 2024 repayment

Development
Bank of Japan

2,000,000––

2,000,000

0.871

May 10,2023

SMBC

215,000––

215,000

Mizuho Bank

340,000––

340,000

MUFG Bank

283,000––

283,000

Resona Bank

237,000––

237,000

0.761(Note 2)October 31, Lump-sum
2023
repayment

Shinsei Bank

135,000––

135,000

Bank of Fukuoka

195,000––

195,000

ORIX Bank

195,000––

195,000

SMBC

633,000––

633,000

Mizuho Bank

508,000––

508,000

MUFG Bank

425,000––

425,000

Resona Bank

356,000––

356,000

0.948(Note 2)October 31, Lump-sum
2025
repayment

Shinsei Bank

201,000––

201,000

Aozora Bank

257,000––

257,000– 56 –

Lump-sum
repayment

Use

Collateralized(Note 15)No
(No guarantee)

Lender

352,000––

352,000

Mizuho Trust

1,352,000––

1,352,000

Aozora Bank

901,000––

901,000

Shinsei Bank

901,000––

901,000

Resona Bank

448,000––

448,000

SMBC–

400,000–

400,000

Mizuho Bank–

350,000–

350,000

Shinsei Bank–

300,000–

300,000

MUFG Bank–

300,000–

300,000

Bank of Fukuoka–

225,000–

225,000

The Kagawa Bank–

200,000–

200,000

Nishi-Nippon City
Bank–

225,000–

225,000

SMBC–

835,000–

835,000

Mizuho Bank–

491,000–

491,000

Shinsei Bank–

393,000–

393,000

MUFG Bank–

393,000–

393,000

Aozora Bank–

393,000–

393,000

Resona Bank–

294,000–

294,000

The Kagawa Bank–

147,000–

147,000

SMBC–

500,000–

Mizuho Bank–

400,000

SMBC–

Mizuho Bank
Shinsei Bank

SMBC

Long-termloans

Average
Balance atIncrease during
Decrease
Balance atinterest rate Repayment Repayment
period-start
periodduring period
period-end
(%)
date
terms
(Thousand yen) (Thousand yen) (Thousand yen) (Thousand yen)
(Note 1)

0.990
(Note 2)

April 30,2026

Lump-sum
repayment

0.795(Note 2)

April 30,2024

Lump-sum
repayment

0.860(Note 2)

November Lump-sum
11, 2024 repayment

500,000

0.635

February29, 2024

Lump-sum
repayment–

400,000

0.635

February29, 2024

Lump-sum
repayment

1,000,000–

1,000,000

0.962(Note 2)

April 30,2026

Lump-sum
repayment–

400,000–

400,000

0.712

April 30,2026

Lump-sum
repayment–

200,000–

200,000

0.712

April 30,2026

Lump-sum
repayment

Subtotal

100,587,585

7,446,000

4,633,329

103,400,256

Total

100,587,585

7,446,000

4,633,329

103,400,256

Use

Collateralized(Note 15)No
(No guarantee)(Note 1) Average Interest Rate indicates a weighted average of interest rates during the period based on the number of days, and it isrounded down to the stated unit.
(Note 2) To avoid interest rate risk, an interest rate swap agreement has been signed separately to fix the interest rates, and the weighted
average interest rate during the period after the effect of the interest rate swap is stated.
(Note 3) 5 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due
date.
The entire amount of the balance at period-end is included in long-term borrowings due within one year.
(Note 4) 4 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due
date.
The entire amount of the balance at period-end is included in long-term borrowings due within one year.
(Note 5) 3 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due
date.
The balance at period-end includes long-term borrowings due within one year of 13 million yen.
(Note 6) The remaining balance was repaid on June 15, 2018.
(Note 7) 250 million yen was repaid on April 4, 2018, and 250 million yen was repaid on April 25, 2018.
1 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due
date.
The balance at period-end includes long-term borrowings due within one year of 6 million yen.
(Note 8) 2 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due
date.
The balance at period-end includes long-term borrowings due within one year of 10 million yen.
(Note 9) 4 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due
date.
The balance at period-end includes long-term borrowings due within one year of 18 million yen.
(Note 10) 2 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due
date.
The balance at period-end includes long-term borrowings due within one year of 9 million yen.
(Note 11) 0.4 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the lastdue date.
The entire amount of the balance at period-end is long-term borrowings due within one year.
(Note 12) 1 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due– 57 –

date.
The balance at period-end includes long-term borrowings due within one year of 7 million yen.
(Note 13) 2 million yen is repaid on the final business day every three months, and the remaining balance will be repaid on the last due
date.
The balance at period-end includes long-term borrowings due within one year of 11 million yen.
(Note 14) The remaining balance was repaid on October 31, 2018.
(Note 15) The proceeds are used for acquiring real estate and/or beneficiary rights of real estate in trust and repaying loans.
(Note 16) The total amounts of long-term loans to be repaid for each year within five years after the balance sheet date are as follows.
(Thousand yen)
Due after 1 year Due after 2 years Due after 3 years Due after 4 years
Due within 1 year
but within 2 years but within 3 years but within 4 years but within 5 years
Long-term borrowings
due within one year

14,270,145

–

–

–

–

Long-term borrowings–

18,493,568

19,941,293

19,292,000

14,223,250

14,270,145

18,493,568

19,941,293

19,292,000

14,223,250

Total– 58 –