Ichigo Office(8975)

Strategic Portfolio Restructuring
April 25, 2018

Ichigo Office REIT Investment Corporation (8975)
Ichigo Investment Advisors Co., Ltd.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

www.ichigo-office.co.jp/english

This material is a summary of the following four releases detailing
Ichigo Office’s strategic portfolio restructuring:“Sale of Two Retail Assets (Ichigo Sapporo Minami 2 Nishi 3 Building,
Ichigo Daimyo Balcony),” March 16, 2018
“Sale of Retail Asset (Ichigo Burg Omori Building),” March 29, 2018
“Acquisition of Two Office Assets (Win Gotanda Building 2, MIFBuilding),” April 25, 2018
“Earnings Forecast Revision for the October 2018 Fiscal Period andEarnings Forecast for the April 2019 Fiscal Period,” April 25, 2018

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

2© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Strategic Portfolio Restructuring Objectives
Focus Ichigo Office’s Portfolio on High-Quality Office Assets &Grow Shareholder Value− Focus on Central Tokyo assets with upside potential− Increase Office weighting as specialized Office REIT
− NAV per Share +1.5% on 3 Asset Sales & 2 Asset Acquisitions
Pre-StrategicRestructuring

Post-StrategicRestructuring

ChangePortfolio Size

85 assets, JPY 197B

84 assets, JPY 198B

-1 asset, +JPY 1B

Office Weighting

90.6%

92.9%

+2.3%

Tokyo Metro Area
Weighting

79.6%

80.3%

+0.7%

Central Tokyo
Weighting

55.1%

57.6%

+2.5%

NAV per ShareJPY 81,358

JPY 82,539+JPY 1,181 (+1.5%)

Generating Gains on Sales in Strong Sellers’ Market− Sales at 1.4X book value and 1.4X appraisal value− Gains on sale of JPY 1.6 billion deployed for growth investments
such as today’s asset acquisitions© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

4

Strategic Portfolio Restructuring Overview
Gains on Sale Significantly Exceeded Unrealized Gains
Proceeds Deployed for Growth Investments in Central Tokyo Offices
Asset Acquisitions (Central Tokyo Offices)

Asset Sales (Retail)

StrategicRestructuring

Ichigo Sapporo Minami 2 Ichigo Daimyo Balcony
Nishi 3 Building(Fukuoka)(Hokkaido)

Asset TypeIchigo Burg Omori(Ota-ku, Tokyo)

3 Retail Assets

Win Gotanda Building 2(Shinagawa-ku, Tokyo)

Asset TypeMIF Building(Chiyoda-ku, Tokyo)

2 Mid-Size Offices

Total Sale Price

JPY 6.0B

Total Acquisition Price

JPY 5.5B

Total Appraisal Value

JPY 4.2B

Total Appraisal Value

JPY 5.8B

NOI Yield

4.5%

Forecast NOI Yield

4.6%

Average Occupancy

93.3%

Average Occupancy

100%

Total Book Value

JPY 4.2B© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

5Strategic Restructuring Supporting Base EPS & DPS GrowthNegative Goodwill Reserve Release
Base EPS

Dividend(JPY)

1,930(+7)

1,940(+10)

1,952(+12)

1,974(+22)

106

106

6969

1,682

1,824(+142)

1,834(+10)

1,883(+49)

1,905(+22)

April 2017

October 2017

April 2018
Forecast

October 2018
Forecast

April 2019
Forecast

1,923241

Base EPS = EPS - Capital Gains
Parentheses show change versus previous fiscal period© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

6

Execution on Growth Strategy Roadmap
Investing for Growth in Shareholder Value+1.5% NAV per Share on Asset Sales & Acquisitions

Maximize Shareholder
Value

Generate Funds for
Growth Investments

Base EPS GrowthBase EPS:
October 2017 (Actual) JPY 1,824
October 2018 (Forecast) JPY 1,883 (+3.2%)

Sell 3 Retail Assets
JPY 1.6B Gains on Sale

Growth Investments
Acquire 2 Central Tokyo Offices© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

7

Acquisition: Win Gotanda Building 2 (O-89)
5th Acquisition in Gotanda, Central Tokyo Area Seeing Strong Demand
Asset Overview
Acquisition Price

JPY 3.30B

Appraisal Value

JPY 3.48B

NOI Yield

4.7%

Asset TypeOffice

Location

4-1-12 Osaki, Shinagawa-ku, Tokyo

Leasable Area

3,433.16m2

Structure

SRC/RC B1F/9F

Date Built

March 1993

Occupancy

100% (as of 2018/3/31)

Location and Features•A mid-size office building located within a 5minute walk from Gotanda Station on the JR
Yamanote Line, the Toei Subway Asakusa Line,and the Tokyu Ikegami Line, and immediately
adjacent to Osaki Hirokoji Station on the Tokyu
Ikegami Line.

•A growing number of IT start-ups have moved
into Gotanda in recent years because ofrelatively lower rents relative to Shibuya andEbisu and the availability of many officebuildings in close proximity to the train station.

•Each floor has a standard floor plate of 120
tsubo (396m2) with ceiling heights of 2.6m, andis equipped with individual air conditioning units
and raised access floors, therefore catering to
the demands of diverse tenants.

•The first floor is occupied by a convenience
store and the upper floors are occupied by officetenants, including telecommunications
companies and building managementcompanies.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

8Acquisition: MIF Building (O-90)
Mid-Size Office Bordering Otemachi with Excellent Central Tokyo Access
Asset Overview
Acquisition Price

JPY 2.20B

Appraisal Value

JPY 2.32B

NOI Yield

4.6%

Asset TypeOffice

Location

1-6-6 Uchikanda, Chiyoda-ku, Tokyo

Leasable Area

1,690.33m2

Structure

SRC B1F/9F

Date Built

January 1991

Occupancy

100% (as of 2018/3/31)

Location and Features•A mid-size office building located within
a 4-minute walk from Otemachi Station on theMarunouchi Line and a 6-minute walk fromKanda Station on the JR Yamanote Line.

•As a secondary market to the major Otemachi
and Marunouchi business areas, Uchikanda
offers a combination of smooth and convenient
access at reasonable rents, thus catering to adiverse range of tenants.

•Each floor has a standard floor plate of 80 tsubo(264m2) and is shaped in such a way that it canaccommodate a variety of layouts. Each floor isalso equipped with individual air conditioning
units and raised access floors, therefore cateringto the demands of diverse tenants.

•A convenience store occupies the first floor andthe upper floors are occupied by office tenants
including media, pharmaceutical, andmanufacturing companies.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

9Notesp. 4 Calculations• Tokyo Metro Area Weighting: Weighting of assets located in Tokyo, Kanagawa Prefecture, Chiba Prefecture, andSaitama Prefecture (acquisition price-based)• Central Tokyo Weighting: Weighting of assets located in Chiyoda-ku, Minato-ku, Chuo-ku, Shinjuku-ku, Shibuya-ku,
and Shinagawa-ku (acquisition price-based)• NAV = (Net Assets + Unrealized Gains/Losses) / Total Shares Outstanding (Period-End) Pre-Strategic Restructuring Unrealized GainsOctober 2017 Fiscal Period-End Appraisal Value minus October 2018 Fiscal Period-End Forecast Book Value Post-Strategic Restructuring Unrealized Gains
Portfolio Assets (82 assets): October 2017 Fiscal Period-End Appraisal Value minus October 2018 Fiscal PeriodEnd Forecast Book Value※Acquisition Assets: Appraisal Value at Acquisition minus October 2018 Fiscal Period-End Forecast Book Valuep. 5 Calculations• Asset Sale NOI Yield = Annual NOI (October 2017 fiscal period annualized) divided by the sale price of the asset• Asset Sale Average Occupancy is as of February 28, 2018
• Asset Sale Book Value = Forecast book value as of the sale date calculated by IIA• Asset Acquisition Forecast NOI Yield = Forecast annual NOI calculated by IIA divided by acquisition price• Asset Acquisition Average Occupancy is as of March 31, 2018

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

10Disclaimer
These materials are for informational purposes only, and do not constitute or form a part of, and should not be construed as, anoffer to sell or a solicitation of an offer to buy any securities of Ichigo Office REIT Investment Corporation (“Ichigo Office”).
These materials may contain forward-looking statements regarding the intent, belief or current expectations of management ofIchigo Office with respect to financial condition and future results of operations. These statements are based on certain
assumptions founded on currently available information. Accordingly, such statements are subject to risks, uncertainties andassumptions and there is no assurance as to actual financial conditions or results of operations. Actual results may vary fromthose indicated in the forward-looking statements. Accordingly, please refrain from solely relying on these statements.
These materials have been created by the management of Ichigo Office and Ichigo Investment Advisors Co., Ltd. (IIA) with thebelief that the information contained is accurate. However, there is no assurance given as to the accuracy, certainty, validity orfairness of any such information. Please note that the content of these materials is subject to revision or retraction without priornotice.
This document is a translation. If there is any discrepancy between the Japanese version and the English translation, theJapanese version shall prevail. No copying or reproduction of these materials or part of these materials is allowed withoutobtaining prior consent from Ichigo Office and IIA.

Ichigo Office REIT IR Desk
TEL：03-3502-4891
IR_Office@ichigo.gr.jp
www.ichigo-office.co.jp/english
Ichigo is Japan’s first zero-carbon listed real estate company. We are taking
responsibility for our environmental footprint by offsetting our carbon emissions
and investing in low-carbon technologies such as solar energy.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

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