Make The World
More Sustainable[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 14, 2019
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: Hiroshi Iwai, President
Inquiries: Hiroto Tajitsu, Head of Administration
Tel: +81-3-3502-4891

Earnings Forecast Revision for the October 2019 Fiscal Period andEarnings Forecast for the April 2020 Fiscal Period
Ichigo Office is revising up its October 2019 earnings forecast announced on
December 14, 2018, and is also announcing its April 2020 earnings forecast.
1. October 2019 Earnings Forecast Revision(JPY million)

Operating
Revenue

Operating
ProfitRecurring
ProfitNet
IncomeDividendper Share(JPY)Previous Forecast (A)

7,708

3,897

3,067

3,067

2,070

New Forecast (B)

8,266

4,357

3,537

3,536

2,140Difference (B) - (A)+558+459+469+469+70% Change+7.2%+11.8%+15.3%+15.3%+3.4%

Net Income per Share: JPY 2,308 (1,532,287 shares outstanding at period-end)
Note: The new forecast reflects a JPY 440 million gain on sale on the Ichigo Fiesta
Shibuya Building on May 30, 2019. Without the gain on sale, the forecast Net Incomeper Share would be JPY 2,021.
2. April 2020 Earnings Forecast

April 2020 Forecast(JPY million)

OperatingRevenue

Operating
ProfitRecurring
ProfitNet
IncomeDividendper Share(JPY)

7,789

3,9253,105

3,105

2,095

Net Income per Share: JPY 2,026 (1,532,287 shares outstanding at period-end)
1

The forecasts presented above are based on the preconditions set out below in“Preconditions for the October 2019 and April 2020 Earnings Forecasts.” The actual
operating revenue, operating profit, recurring profit, net income, and dividend 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 therefore not be construed asa guarantee of such results. Ichigo Office will revise the forecast should a substantial
discrepancy emerge between the forecast and actual operating results.
3. Reason for October 2019 Earnings Forecast Revision
Ichigo Office is revising up its earnings forecast to reflect the impact of an asset saleand acquisition and strong operating results.
Specifically, since its previous earnings forecast announcement, Ichigo Office sold theIchigo Fiesta Shibuya Building on May 30, 2019.1 The asset sale will generate a gain onsale of JPY 440 million in the October 2019 period.2 With operating results also robust,Ichigo Office is revising up its October 2019 earnings forecast.
From the JPY 440 million gain on sale, JPY 362 million will be retained to fund growthinvestments. Ichigo Office will continue to work to drive higher earnings forshareholders via value-add capex and asset acquisitions such as its acquisition of theIchigo Hakata East Building on May 31, 2019.
1For details, please refer to the May 29, 2019 release “Acquisition of Office Asset(Ichigo Hakata East Building) and Sale of Retail Asset (Ichigo Fiesta ShibuyaBuilding).”2
Calculated as sale price including property and city planning taxes minus book value
and expected sale-related expenses.

2Preconditions for the October 2019 and April 2020 Earnings Forecast
Period October 2019: May 1, 2019 – October 31, 2019 (184 days)
 April 2020: November 1, 2019 – April 30, 2020 (182 days)

Number ofAssets

 85 assets

Number ofShares 1,532,287 shares issued and outstanding as of the date of this report

OperatingRevenue Rental income is calculated conservatively based on lease contracts that are in effectas of April 30, 2019 while taking into consideration such factors as historical rents,
the competitiveness of the properties, and market conditions.
 Total occupancy: 98.3% as of October 31, 2019 and 98.5% as of April 30, 2020
 Gains on sale: JPY 440 million for October 2019

OperatingExpenses• Depreciation: JPY 838 million for October 2019 and JPY 837 million for April
2020. Depreciation has been calculated using the straight-line method and includes
the depreciation of forecast future capital expenditures.
• Property, city planning, and depreciable asset taxes: JPY 653 million for October
2019 and JPY 655 million for April 2020. Prorated property and city planning taxes
related to acquisitions are included in acquisition cost.
• Building maintenance and repair expenses: JPY 132 million for October 2019 andJPY 137 million for April 2020. However, expenses may differ significantly fromthese estimated amounts for reasons including the variability of maintenance andrepair expenses, one-time costs due to unexpected building damage, etc.
• Service provider expenses, including property management fees: JPY 663 millionfor October 2019 and JPY 664 million for April 2020
• Performance fees: None for October 2019 and JPY 16 million for April 2020
• Rental expenses, Ichigo Office’s principal operating expenses (other thandepreciation, see above), are calculated based on historical data adjusted for any
anticipated changes.
• Actual operating expenses may differ significantly from these assumptions due tounforeseeable factors.

Non-Operating
Expenses
Interest-Bearing
Liabilities

Dividend• Interest expenses on loans and bonds: JPY 546 million for October 2019 and JPY
537 million for April 2020
• Other borrowing-related expenses: JPY 274 million for October 2019 and JPY 282
million for April 2020
• Loans and bonds: JPY 108,458 million outstanding as of October 31, 2019 and JPY
108,399 million outstanding as of April 30, 2020 The dividend forecast assumes that dividends will comply with the dividend
distribution policy stipulated in Ichigo Office’s Articles of Incorporation.
 Total dividends for the October 2019 period are forecast to be JPY 3,279 million(unappropriated retained earnings (i.e., Net Income) of JPY 3,536 million plus JPY
105 million of negative goodwill amortization, minus a JPY 362 million provisionfrom gains on sale to the dividend reserve, subject to the reserve complying with JREIT conduit requirements). Ichigo Office does not expect to pay any corporate tax,
because it can offset any potential tax liability with loss carry-forwards.
 Total dividends for April 2020 are forecast to be JPY 3,210 million (unappropriatedretained earnings (i.e., Net Income) of JPY 3,105 million plus JPY 105 million ofnegative goodwill amortization).
 The dividend is subject to change 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.
3

Dividend in
Excess ofEarnings

 Ichigo Office does not plan on paying any dividend in excess of earnings.
 This forecast assumes that there are no material revisions to laws and regulations,the tax system, accounting standards, listing rules of the Tokyo Stock Exchange,
and rules of the Investment Trusts Association, Japan, and no material changes inthe state of the economy and real estate market conditions.

OtherReference
Dividend and Base EPS
Base EPS
Release from Dividend Reserve and Negative Goodwill Reserve
Gains on Sale

Dividend

1,923
241

1,682

April 2017

(JPY)

2,255

2,140

186

5069

2,095

69

1,930
106

1,964
107

2,014

1,824

1,857

1,945

2,000

2,021

2,026

October 2017

April 2018

October 2018

April 2019

October 2019
(Forecast)April 2020
(Forecast)69

Base EPS = EPS – Capital gains469