Portfolio Building Policy

marimo REIT aims to secure both “relatively high investment yield” and “stable earnings” by building a portfolio of mainly residential and retail properties centering on regional areas, and also comprehensively investing in hotel, office, logistics and parking properties to realize contribution to its basic principle of “regional revitalization.”

(Note)	marimo REIT invests mainly in real estate in regional cities in the case of residential properties and mainly in real estate in regional areas in the case of retail and logistics properties, and also invests in real estate in the Tokyo metropolitan area in both cases. marimo REIT invests in real estate in regional areas in the case of hotel and parking properties and in real estate in regional cities in the case of office properties.

(Note)

marimo REIT invests mainly in real estate in regional cities in the case of residential properties and mainly in real estate in regional areas in the case of retail and logistics properties, and also invests in real estate in the Tokyo metropolitan area in both cases. marimo REIT invests in real estate in regional areas in the case of hotel and parking properties and in real estate in regional cities in the case of office properties.

Investment Criteria for “Residential” Properties

Investment
areas

・	Invest mainly in regional cities and also in the Tokyo metropolitan area

Investment
criteria

・	Properties that are expected to have relatively stable leasing demand and rent level not susceptible to economic conditions, have promising occupancy rate stability, and also can maintain competitiveness in comparison with neighboring competitive properties in light of the building specifications and rent settings being commensurate with the location conditions and area

Investment
targets

Single

Exclusive area
per unit of
less than 35㎡

Distance from the nearest station (or major bus stop ^{(Note 1)}) of within a 10-minute walk as a guide. However, not limited to this in the case of locations that are expected to be able to secure stable occupancy being within commuting distance of a university or other educational facility, etc. (within a 10-minute bicycle ride ^{(Note 2)}).

Compact

Exclusive area
per unit of
35㎡ or more,
but less than 50㎡

Distance from the nearest station (or major bus stop) of within a 15-minute walk as a guide. However, not limited to this in the case of locations that are expected to be regions with good living environment and high convenience in terms of daily living, such as there being supermarkets or other retail properties with potential for regional contribution in the neighborhood.

Family

Exclusive area
per unit of
50㎡ or more

marimo REIT invests in residential properties ranging widely from single type to family type ^{(Note 3)}.

(Note 1)	“Major bus stop” refers to a bus stop with regular bus service throughout the day and used for commuting to work or school on a daily basis.
(Note 2)	The time required by bicycle is calculated by the time when traveling at a speed of 250 m per minute (rounded up to the specified unit).
(Note 3)	The type of property shall be determined based on which range of exclusive area per unit that the most number of units fall under out of the three ranges: (i) less than 35㎡, (ii) 35㎡ or more, but less than 50㎡, and (iii) 50㎡ or more.

Investment Criteria for “Retail” Properties

Investment
areas

・	Invest mainly in regional areas and also in the Tokyo metropolitan area

Investment
criteria

・	Properties in locations rated highly based on trade area analysis
・	Properties with potential for regional contribution (facilities necessary for daily living and contribute to convenience for local residents) and also promising management stability and asset value
・	Properties that have major tenants from which stable revenue is expected based on lease agreements of the fixed rent type in principle and linked to convenience in terms of daily living for local residents, and properties that have major tenants closely related to daily living in the region and expected to have stable purchase demand

Investment
targets

Retail properties with potential for regional contribution

Specialty stores (SS)

Neighborhood shopping centers (NSC)

Regional shopping centers (RSC)

・	Retail properties that have various specialty stores, such as supermarket, drug store, convenience store and fitness center

・	Such specialty stores as electronics retail store
・	Medium-scale shopping centers that have several various specialty stores

・	Large-scale shopping centers that have numerous specialty stores (generally 100 tenants or more)

Location based on trade area analysis

Location with high population density of 10,000 people or more in trade area population within 1 km trade area

Location with high population density of 50,000 people or more in trade area population within 5 km trade area

Location with high population density of 200,000 people or more in trade area population within 10 km trade area

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