marimo Regional Revitalization REIT, Inc.

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Investment Highlights

marimo REIT aims to secure “profitability” and “stability” by investing in residential, retail, hotel, office and parking properties, centering on regional areas, to build a diversified portfolio seeking diversification in terms of region and asset type with contribution to “regional revitalization” as a basic principle.

1 Investment in regional areas expected to have the potential to become attractive investment areas as regional revitalization initiatives are underway across Japan

marimo REIT believes that regional areas have the potential to become attractive investment areas more than ever before in light of the government stating in its long-term vision for promotion of regional revitalization that intensive support will be provided.
Investment will be made in real estate with relatively high profitability potential in regional areas expected to have the potential to become attractive investment areas with an aim to realize securing of high profitability and contribution to regional revitalization.

External Growth Strategy Internal Growth Strategy

2 Management aimed at securing “profitability” and “stability” with a diversified portfolio, centering on regional areas

Building a portfolio, centering on regional areas, with an aim to secure investment yield that is relatively higher than a portfolio investing mainly in the Tokyo metropolitan area and secure stable earnings.
Building a diversified portfolio seeking diversification in terms of asset type in that, of the wide range of investment targets, investments are mainly in residential properties (have the potential in particular for utilization of Marimo’s expertise and revenue, too, is considered relatively stable) and community-based retail properties (have the potential to lead to revitalization of towns and for opportunities to acquire through Marimo’s urban redevelopment business) but also include other properties, such as hotel, office and parking properties, with an aim to generate stable cash flows.

Portfolio Building Policy

3 Investment leveraging support from Marimo, which boasts an array of expertise in real estate in regional areas

Marimo, which is the sponsor of marimo REIT, boasts an array of expertise in the real estate market in regional areas as described below.
  • Expertise in information sourcing and analysis
    “Expertise in information sourcing and analysis” assessing the value of investment real estate by comprehensively evaluating a wide variety of real estate information gathered from all over Japan, which exceeds 10,000 cases each year (Note 1)
  • Expertise in real estate development
    “Expertise in real estate development” backed by track record in for-sale condominium development, track record in urban redevelopment (Note 2), track record in income-producing real estate development and track record in mixed-use development across Japan
  • Expertise in value enhancement
    “Expertise in value enhancement” realizing real estate value enhancement through such means as planning and executing renovation work (exclusive area portions and common area portions) and such according to the characteristics of the region, location and real estate that leads to rise in occupancy rate and rise in rent, which was accumulated through track record in condominium design across Japan
(Note 1) The total number of cases registered in Marimo’s real estate information system every time information is obtained. There may be cases where a single property is registered multiple times due to various reasons, such as information on the same property being obtained from different information providers, but no adjustment is made for such redundancy and the actual number of real estate on which information is obtained may thus be smaller than this. The same shall apply hereinafter for real estate information gathered from all over Japan.
(Note 2) In the urban redevelopment business, Marimo acquires the residential portion but the urban redevelopment project is promoted together with urban redevelopment unions, consulting companies, general contractors, etc. rather than engaging in the project entirely on its own.

Profile of Marimo

4 Provision of property acquisition opportunities from Marimo and from regional financial institutions, etc. in various regions with which there is a support agreement

Property acquisition opportunities are made available to marimo REIT and the Asset Manager as described below.

Preferential negotiation rights for sales transactions, warehousing function, preferential provision of property information and other property acquisition opportunities are made available by sponsor Marimo, which boasts a track record in the urban redevelopment business and condominium development business in regional areas across Japan.
In addition, information on properties in various regions are made available by also supporting companies, which are regional financial institutions, etc. engaged in activities entrenched in the various regions with which there is a support agreement.

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Profile of Marimo

5 Stable and sound financial strategy based on relationships with city banks and regional financial institutions in various regions as well as a dividend policy based on the characteristic of investing in regional areas.

marimo REIT aims to build a banking formation comprised of multiple financial institutions including city banks, trust banks and regional financial institutions that fully understand the characteristics of each region.
Aiming for lengthening of borrowing periods and staggering of maturity dates.
Utilize cash distribution in excess of earnings (refund of investments in capital) due to accumulation of internal reserves by posting a large amount of depreciation as a result of building a portfolio centering on regional areas where the ratio of buildings in regional areas will be higher than that for Tokyo metropolitan area in terms of overall assets.

Financial Strategy

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