Ichigo Preserves and Improves Real Estate[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

June 13, 2018
IssuerIchigo Office REIT Investment Corporation (“Ichigo Office,” 8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-office.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Wataru Orii, President
Inquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4891

New Loan and Interest Rate Swap
Ichigo Office decided today to borrow funds via a new loan (“Term Loan XII”) and toenter into an interest rate swap to lock-in the interest rate on this new loan.
1. Reason for New Loan and Interest Rate Swap
The new loan, together with cash-on-hand (JPY 3 million), will be used to repay
existing floating interest rate loans (JPY 2.949 billion). Ichigo Office is fixing theinterest rate on the new loan via a swap in order to hedge against any future rise ininterest rates. The new loan’s term is six and a half years, significantly longer than theexisting loans, further strengthening Ichigo Office’s finances. For details of the loans
being repaid, please refer to “3. Existing Loans Being Repaid” below.
2. Loan and Interest Rate Swap Details
Term Loan XII
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms
Interest Rate
Interest Payment Date

Collateralized

SMBC, Mizuho Bank, Shinsei Bank, MUFG Bank,Aozora Bank, Resona Bank, The Kagawa BankJPY 2.946 billion
Repayment of existing loans
June 15, 2018
November 11, 2024
Repayment will be made in full on the Principal
Repayment Date
1M JPY TIBOR + 0.63% (p.a.)1
Final day of each month following the Loan Date(the first payment date will be June 30, 2018 and thelast payment date will be the same as the Principal
Repayment Date)
No

Swap Details
Counterparty
Contract Date
Fixed Interest Rate

Mizuho Bank
June 13, 2018
0.86000%1

1

As a result of the interest rate swap, the interest rate for Term Loan XII is fixed at
0.86000%. However, the interest rate for the payment on the first payment date (fromJune 15, 2018 through June 30, 2018) will be 0.64633%.

Notes:The base rate for the loans will be JPY TIBOR as published by the Japanese Bankers
Association (JBA) two business days before each interest payment date. For current JPY
TIBOR rates, please visit the JBA’s website: www.jbatibor.or.jp/english/rate
In the event the interest payment date is not a business day, payment shall be made on theprevious business day.
3. Existing Loans Being Repaid
SMBC Syndicate Loan II (Term Loan 5)
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms

Partial Repayment Date
Interest Rate
Collateralized

SMBC, Mizuho Bank, Aozora Bank, Shinsei Bank,MUFG Bank, Resona Bank, ORIX Bank,
The Kagawa Bank
JPY 1.474 billion(original loan amount: JPY 1.5 billion)
Repayment of existing loan
December 15, 2014
June 15, 2018
JPY 937,500 of the principal will be repaid on eachPartial Principal Repayment Date, with theremainder to be repaid in full on the Principal
Repayment Date
Final business day of January, April, July, andOctober following the Loan Date
1M JPY TIBOR + 0.70% (p.a.)
No

SMBC Syndicate Loan II (Term Loan 7)
LenderLoan Amount
Use of Proceeds
Loan Date
Principal Repayment Date
Principal Repayment Terms

Partial Repayment Date
Interest Rate
Collateralized

SMBC, Mizuho Bank, Aozora Bank, Shinsei Bank,MUFG Bank, Resona Bank, ORIX Bank
JPY 1.474 billion(original loan amount: JPY 1.5 billion)
Repayment of existing loan
January 9, 2015
June 15, 2018
JPY 937,500 of the principal will be repaid on eachPartial Principal Repayment Date, with theremainder to be repaid in full on the Principal
Repayment Date
Final business day of January, April, July, andOctober following the Loan Date
1M JPY TIBOR + 0.70% (p.a.)No2

4. Earnings Outlook
The impact of the new loan and interest rate swap on Ichigo Office’s October 2018 andApril 2019 fiscal period earnings has already been reflected in Ichigo Office’s April 25,
2018 release “Earnings Forecast Revision for the October 2018 Fiscal Period andEarnings Forecast for the April 2019 Fiscal Period” and May 23, 2018 release“Corrected: Earnings Forecast Revision for the October 2018 Fiscal Period andEarnings Forecast for the April 2019 Fiscal Period.”3Reference: Loan and Bond Composition after New Loan
Outstanding Loan and Bond Balance (as of June 15, 2018)
BeforeNew Loan(A)(JPY million)
After
New Loan(B)Change(B) - (A)Short-term bank loans–––

Long-term bank loans(due within one year)

11,5758,626-2,949Long-term bank loans

91,012

93,958+2,946

Total bank loans

102,587

102,584

-3

2,200

2,200

–

104,787

104,784-3

Other interest-bearing liabilities–––Total interest-bearing liabilities

104,787

104,784-3

Bonds
Total bank loans and bonds

Distribution of Loan and Bond Maturities (as of June 15, 2018)
Before New Loan
(JPY million)■ Bank Loans■ Bonds

9,574

10,233

9,639

9,629

9,633

9,623

8,814
6,867

7,263

4,600

4,549

3,954

3,400
2,380

2,000

Oct
2018

Apr2019

Oct2019

Apr2020

Oct2020

Apr2021

Oct
2021

Apr
2022

Oct
2022

Apr2023

Oct
2023

Apr
2024

Oct
2024

Apr2025

Oct2025

Apr2026

Oct2026

Apr2027

1,200

1,000

Oct2027

Apr2028

After New Loan(JPY million)■ Bank Loans■ Bonds

9,574

10,233

9,639

9,629

9,633

9,623

8,814
6,867

7,263
6,346
4,600

2,380

2,000

1,600

Oct
2018

3,954

Apr2019

Oct2019

Apr2020

Oct2020

Apr
2021

Oct
2021

Apr
2022

Oct
2022

Apr
2023

4Oct
2023

Apr
2024

Oct
2024

Apr
2025

Oct2025

Apr2026

Oct
2026

Apr
2027

1,200

1,000

Oct
2027

Apr2028