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.

Issuer

Ichigo Office REIT Investment Corporation (8975)

1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo Representative: Yoshihiro Takatsuka, Executive Director www.ichigo-office.co.jp/english

April 28, 2017

Asset Management Company

Ichigo Investment Advisors Co., Ltd.

Representative: Wataru Orii, President

Inquiries: Hiroto Tajitsu, Head of Business Administration Tel: +81-3-3502-4891

Loan Repayment

Ichigo Office REIT today completed a loan repayment (JPY 3,601 million) using proceeds from the asset sale announced in the April 26, 2017 release "Acquisition of Three Office Assets and Sale of Four Non-Office Assets."

  1. Reason for Repayment

    Reduce overall interest expense by repaying a loan with a relatively high interest rate.

  2. Repayment Details

    SMBC Syndicate Loan II (Term Loan 1)

    Lenders SMBC, Shinsei Bank,

    Resona Bank, Aozora Bank Outstanding Balance before Repayment JPY 3,601 million Repayment Amount JPY 3,601 million Outstanding Balance after Repayment None

    Date of Repayment April 28, 2017

    Borrowing Rate 1.79% (fixed)

    Collateralized No

    Original Date of Loan June 3, 2013

    Loan Maturity Date May 31, 2018

  3. Earnings Outlook

The impact of this repayment on Ichigo Office REIT's earnings and dividend forecasts for the April 2017, October 2017, and April 2018 fiscal periods is minimal, and therefore the forecasts are unchanged.

Reference: Loan Composition after Repayment

Outstanding Loan Balance (as of April 28, 2017)

(JPY million)

Before Repayment (A)

After Repayment (B)

Change

(B) - (A)

Short-term bank loans

-

-

-

Long-term bank loans (due within one year)

9,884

9,866

‐18

Long-term bank loans

90,034

86,451

-3,582

Total bank loans

99,919

96,317

‐3,601

Bond issuance

-

-

-

Total bank loans and bond issuance

99,919

96,317

‐3,601

Other interest-bearing liabilities

-

-

-

Total interest-bearing liabilities

99,919

96,317

-3,601

Note: The Before Repayment amounts also reflect some loan amortization payments conducted today.

Loan Maturity Distribution (as of April 28, 2017) Before Repayment

20,000

(JPY million)

15,000

10,000

8,938

9,563 9,574

10,233

9,639 9,629 9,633 9,623

6,5276,867

7,263

5,000

700

0

1,000

Apr 2017 Oct 2017 Apr 2018 Oct 2018 Apr 2019 Oct 2019 Apr 2020 Oct 2020 Apr 2021 Oct 2021 Apr 2022 Oct 2022 Apr 2023 Oct 2023

After Repayment

20,000

(JPY million)

15,000

10,000

8,938

9,563 9,574

6,8677,263

10,233

9,639 9,629 9,633 9,623

5,000

2,949

700

0

1,000

Apr 2017 Oct 2017 Apr 2018 Oct 2018 Apr 2019 Oct 2019 Apr 2020 Oct 2020 Apr 2021 Oct 2021 Apr 2022 Oct 2022 Apr 2023 Oct 2023

Ichigo Office REIT Investment Corporation published this content on 28 April 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 28 April 2017 06:09:20 UTC.

Original documenthttp://www.ichigo-office.co.jp/module/_newsPdfReit/494/IchigoOffice_20170428_Loan_Repayment_ENG.pdf

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