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.

April 26, 2017
IssuerIchigo Office REIT Investment Corporation (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 Business Administration
Tel: +81-3-3502-4891

Earnings and Dividend Forecast Revisions for the October 2017 Fiscal
Period and Forecast for the April 2018 Fiscal Period
Ichigo Office REIT is revising up its October 2017 earnings and dividend forecast that
was announced in the December 15, 2016 release “Financial Report for the October
2016 Fiscal Period.”
April 2017 earnings will be announced on June 14, 2017. The current April 2017
forecast is unchanged.
1. October 2017 Earnings and Dividend Forecast RevisionDividendper Share(JPY)

OperatingRevenue(JPY million)

Operating
Profit(JPY million)

Recurring
Profit(JPY million)

Net
Income(JPY million)

Previous Announced
Forecast (A)

7,333

3,328

2,591

2,590

1,920

Current Amended
Forecast (B)

7,462

3,450

2,707

2,706

1,930

Difference (B) - (A)+128+121+115+115+10% Change

+1.7%

+3.6%

+4.4%

+4.4%+0.5%

Number of shares outstanding at the end of the October 2017 fiscal period: 1,532,287 shares
The forecast presented above is based on certain preconditions set out below in“Preconditions for the October 2017 Earnings and Dividend Forecast.” The actual
operating revenue, operating profit, recurring profit, net income, and dividend per share
may vary due to changes in circumstances such as asset acquisitions and dispositions,tenant turnover, unexpected maintenance and repair costs and other expenses, changes
in interest rates, and the issuance of new shares. These forecasts should not be construed
as a guarantee of such performance or results. Ichigo Office REIT will make a forecast
revision should there be a substantial discrepancy between the forecast and actual
operating results.

12. October 2017 Earnings and Dividend Forecast Revision Rationale
Ichigo Office REIT is raising its earnings and dividend forecast to reflect strong
operating results and the impact of the strategic portfolio restructuring (“StrategicRestructuring”) announced in today’s release “Acquisition of Three Office Assets andSale of Four Non-Office Assets.”
Ichigo Office REIT continues to execute on its strategy to drive stable dividend growth(Stage VI, Growth Strategy Roadmap). By acquiring three Tokyo office assets andselling four earnings-volatile Tokyo non-office assets (three serviced apartments andone retail asset), the Strategic Restructuring will increase the stability and quality ofIchigo Office REIT’s portfolio. Because the office assets have higher occupancy and ahigher NOI yield than the non-office assets being sold, the Strategic Restructuring will
also increase Ichigo Office REIT’s earnings.
Operating revenue is expected to exceed the previous forecast by JPY 128 million,
comprised of a JPY 49 million rental income increase due to the Strategic Restructuring,a JPY 82 million rental income increase from the current portfolio, JPY 8 million fromlease termination penalties received, and a JPY 11 million decrease in operating revenue
due to lower utilities income from tenants.
Operating expenses are expected to exceed the previous forecast by JPY 7 million,
comprised of a JPY 33 million decrease in rental expenses offset by a JPY 41 million
increase in asset management fees. The JPY 33 million decrease in rental expenses isdriven by a JPY 20 million decrease from the Strategic Restructuring, a JPY 45 million
decrease in utilities expenses, and a JPY 32 million increase in maintenance repair costs
and service provider fees. Operating profit is therefore expected to increase by JPY 121million.
Non-operating expenses are expected to increase c. JPY 4 million, comprised of a JPY 8million increase in up-front financing fees from the new loans to be executed in May
2017, partially offset by a JPY 3 million decrease in interest expenses from lower
interest rates on the new loans. As a result, recurring profit and net income are each
forecast to increase by JPY 115 million.
Ichigo Office REIT therefore expects to raise its October 2017 dividend by JPY 10 toJPY 1,930 per share and pay total dividends of JPY 2,957 million. The dividend
forecast assumes JPY 200 million of negative goodwill amortization and a dividend
reserve reversal of JPY 50 million that reflects capital gains on asset sales.

23. April 2018 Earnings and Dividend Forecast Rationale
Dividendper Share(JPY)

Operating
Revenue(JPY million)

Operating
Profit(JPY million)

Recurring
Profit(JPY million)

NetIncome(JPY million)

7,338

3,551

2,735

2,735

1,940

7,462

3,450

2,7072,706

1,930

Difference (B) - (A)-123+101+28+28+10% Change

‐1.6%

+2.9%

+1.0%

+1.0%

+0.5%

Previous AnnouncedApril 2018
Forecast (A)Current Amended
October 2017
Forecast (B)

Number of shares outstanding at the end of the April 2018 fiscal period: 1,532,287 shares
The forecast presented above is based on certain preconditions set out below in“Preconditions for the April 2018 Earnings and Dividend Forecast.” The actual
operating revenue, operating profit, recurring profit, net income, and dividend per share
may vary due to changes in circumstances such as asset acquisitions and dispositions,tenant turnover, unexpected maintenance and repair costs and other expenses, changes
in interest rates, and the issuance of new shares. These forecasts should not be construed
as a guarantee of such performance or results. Ichigo Office REIT will make a forecast
revision should there be a substantial discrepancy between the forecast and actual
operating results.
4. April 2018 Earnings and Dividend Forecast Rationale
April 2018 operating revenue is expected to decrease by JPY 123 million versus
October 2017, because a JPY 13 million increase from the Strategic Restructuring isexpected to be offset by a JPY 94 million decrease in rental income, a JPY 35 million
seasonal decrease in utilities income from tenants, and a JPY 8 million decrease in leasetermination penalties received.
Operating expenses are expected to decrease by JPY 225 million versus October 2017
due to a JPY 67 million decrease in rental expenses from seasonal variation in utilities
expenses and lower maintenance repair costs and service provider fees and a JPY 159
million decrease in asset management fees. Operating profit is thus expected to increaseby JPY 101 million.
Ichigo Office REIT expects a JPY 73 million increase in non-operating expenses versus
October 2017, primarily due to an increase in up-front financing fees of an existing loan
maturing October 31, 2017 which will be refinanced. As a result, recurring profit andnet income are each forecast to increase by JPY 28 million.
Ichigo Office REIT therefore expects to raise its April 2018 dividend by JPY 10 to1,940 per share and pay total dividends of JPY 2,972 million. The dividend forecast
assumes JPY 200 million of negative goodwill amortization and a dividend reserve
reversal of JPY 38 million that reflects capital gains on asset sales.

3Preconditions for October 2017 Earnings and Dividend Forecast
Preconditions
PeriodOctober 2017: May 1, 2017 – October 31, 2017 (184 days)

Number ofAssets

 85 assets after the Strategic Restructuring. The forecast assumes there will be no
additional acquisitions or sales through October 31, 2017.

Number ofShares 1,532,287 shares issued and outstanding as of todayOperating
Revenue

OperatingExpenses Rental income is calculated conservatively based on lease contracts that are in effect asof today while taking into consideration such factors as historical rents, thecompetitiveness of the properties, and market conditions.
 Total occupancy: 97.1% as of October 31, 2017
• Among rental expenses, Ichigo Office REIT’s principal operating expenses (other thandepreciation – see below) are calculated based on historical data while taking into
consideration variable expenses.
• Property and city planning taxes: JPY 595 million. The prorated property and city
planning taxes related to the Strategic Restructuring will be included in the acquisition
cost and shall be excluded from operating expenses.
• Building maintenance and repair expenses: JPY 128 million. However, expenses foreach period may differ significantly from these estimated amounts for reasons
including the variability of maintenance and repair expenses, costs due to unexpectedbuilding damage, etc.
• Service provider expenses including property management fees: JPY 664 million.
• Depreciation: JPY 925 million. Depreciation has been calculated using the straight-line
method and includes the depreciation of forecast future capital expenditures in thedepreciation amount.
• Performance fees: JPY 165 million

Non-Operating • Interest expenses: JPY 532 million
Expenses• Borrowing-related expenses: JPY 211 million
Loans• Total borrowings: JPY 103,193 million as of October 31, 2017

Dividend perShare The dividend forecast assumes that distributions will comply with the dividend
distribution policy stipulated in Ichigo Office REIT’s Articles of Incorporation.
 Dividends for the October 2017 period are forecast to be the total of unappropriatedretained earnings of JPY 2,706 million, JPY 200 million of negative goodwill
amortization, and a JPY 50 million dividend reserve reversal.
 The dividend is subject to change due to such factors as tenant turnover, propertychanges, unexpected maintenance and repair costs and other expenses, fluctuations ininterest rates, and the issuance of additional shares.

Dividend in
Excess ofEarnings perShare Ichigo Office REIT does not plan on making any dividend distribution in excess ofearnings.

Other This forecast assumes that there are no material revisions to laws and regulations, thetax system, accounting standards, listing rules of the Tokyo Stock Exchange, and rulesof the Investment Trusts Association, Japan, and no material changes in the state of theeconomy and real estate market conditions.

4Preconditions for April 2018 Earnings and Dividend Forecast
Preconditions
PeriodNumber ofAssets
Number ofShares

April 2018: November 1, 2017 – April 30, 2018 (181 days)
 85 assets after the Strategic Restructuring. The forecast assumes there will be noadditional acquisitions or sales through April 30, 2018.
 1,532,287 shares issued and outstanding as of today

OperatingRevenue Rental income is calculated conservatively based on lease contracts that are in effect asof today while taking into consideration such factors as historical rents, thecompetitiveness of the properties, and market conditions.
 Total occupancy: 96.8% as of April 30, 2018

OperatingExpenses• Among rental expenses, Ichigo Office REIT’s principal operating expenses (other thandepreciation – see below) are calculated based on historical data while taking into
consideration variable expenses.
• Property and city planning taxes: JPY 589 million. The prorated property and city
planning taxes related to the Strategic Restructuring will be included in the acquisition
cost and shall be excluded from operating expenses.
• Building maintenance and repair expenses: JPY 110 million. However, expenses foreach period may differ significantly from these estimated amounts for reasons
including the variability of maintenance and repair expenses, costs due to unexpectedbuilding damage, etc.
• Service provider expenses including property management fees: JPY 651 million.
• Depreciation: JPY 918 million. Depreciation has been calculated using the straight-line
method and includes the depreciation of forecast future capital expenditures in thedepreciation amount.
• Performance fees: zero

Non-Operating • Interest expenses: JPY 526 million
Expenses
Borrowing-related expenses: JPY 289 million
Loans• Total borrowings: JPY 103,151 million as of April 30, 2018

Dividend perShare The dividend forecast assumes that distributions will comply with the dividend
distribution policy stipulated in Ichigo Office REIT’s Articles of Incorporation.
 Dividends for the April 2018 period are forecast to be the total of unappropriatedretained earnings of JPY 2,735 million, JPY 200 million of negative goodwill
amortization, and a JPY 38 million dividend reserve reversal.
 The dividend is subject to change due to such factors as tenant turnover, propertychanges, unexpected maintenance and repair costs and other expenses, fluctuations ininterest rates, and the issuance of additional shares.

Dividend inExcess ofEarnings perShare Ichigo Office REIT does not plan on making any dividend distribution in excess ofearnings.

Other This forecast assumes that there are no material revisions to laws and regulations, thetax system, accounting standards, listing rules of the Tokyo Stock Exchange, and rulesof the Investment Trusts Association, Japan, and no material changes in the state of theeconomy and real estate market conditions.

5

Post-Strategic Restructuring – Base EPS & DPS(JPY)

Dividend Reserve Reversal
Base EPS

Dividend Per Share
1,904302

1,602

October 2016

Post-Strategic Restructuring
1,930

1,910

164

1,940155242

1,766(+98)

1,668(+66)

April 2017
(Forecast)

October 2017
(Forecast)

1,785(+19)

April 2018
(Forecast)* Base EPS = EPS excluding capital gains on asset sales
Figures in parentheses are the difference versus previous fiscal period.

6