Financing Policy

Basic Policy

Ichigo Green will maintain and implement a well-planned, flexible financial strategy for the purpose of generating a stable stream of profits and achieving the solid growth of the portfolio over time.

Equity Strategy	When issuing additional shares, Ichigo Green will take into account such factors as the ratio of total debt to total assets ("the interest-bearing debt ratio") and the property acquisition plan while paying due attention to the potential share dilution (i.e., impact on dividends and net assets per share).
Debt Strategy	Debt Financing Policy Ichigo Green will cap the interest-bearing debt ratio at 70% of total assets. However, the leverage ratio may temporarily exceed 70% when acquiring new assets. Bank Loan Financing Policy Ichigo Green will continually strive to control overall interest costs. Interest rate risks will be managed by such steps as maintaining a balance between short-term and long-term loans, and the use of fixed and floating interest rate facilities. Ichigo Green will seek to mitigate refinancing risks by staggering loan maturation dates across multiple bank relationships. Ichigo Green will maintain funding flexibility by establishing bank lines of credit and other borrowing facilities. When selecting a lender(s), Ichigo Green will negotiate terms and conditions (interest rates, maturities, collateral, and fees) with multiple banks, then make a decision based on the overall merits. Lenders will be limited to qualified institutional investors as defined in Article 2-3-1 of the Financial Instruments and Exchange Law (but limited to institutional investors as provided in Article 67-15-1 of the Special Taxation Measures Law (1957 Law No. 26, including subsequent revisions)). Ichigo Green may pledge fund assets as loan collateral, as appropriate.

Equity Strategy

When issuing additional shares, Ichigo Green will take into account such factors as the ratio of total debt to total assets ("the interest-bearing debt ratio") and the property acquisition plan while paying due attention to the potential share dilution (i.e., impact on dividends and net assets per share).

Debt Strategy

Debt Financing Policy

Ichigo Green will cap the interest-bearing debt ratio at 70% of total assets. However, the leverage ratio may temporarily exceed 70% when acquiring new assets.
Bank Loan Financing Policy
- Ichigo Green will continually strive to control overall interest costs. Interest rate risks will be managed by such steps as maintaining a balance between short-term and long-term loans, and the use of fixed and floating interest rate facilities. Ichigo Green will seek to mitigate refinancing risks by staggering loan maturation dates across multiple bank relationships.
- Ichigo Green will maintain funding flexibility by establishing bank lines of credit and other borrowing facilities.
- When selecting a lender(s), Ichigo Green will negotiate terms and conditions (interest rates, maturities, collateral, and fees) with multiple banks, then make a decision based on the overall merits. Lenders will be limited to qualified institutional investors as defined in Article 2-3-1 of the Financial Instruments and Exchange Law (but limited to institutional investors as provided in Article 67-15-1 of the Special Taxation Measures Law (1957 Law No. 26, including subsequent revisions)).
Ichigo Green may pledge fund assets as loan collateral, as appropriate.

Excess Dividend Distribution and Share Buybacks

As a basic dividend policy, Ichigo Green will strive to distribute to its shareholders a dividend in excess of earnings in the amount equivalent to 40% of depreciation during each earnings reporting period.
In doing so, Ichigo Green will also strive to maintain sufficient financial flexibility to fund the capital expenditure and plant improvements required in our long-term maintenance plan, and also future plant acquisitions.
In accordance with Article 8-2 of our Articles of Incorporation, Ichigo Green may buy back our own shares that are traded on the Tokyo Stock Exchange. Share buybacks have the same economic effect as excess dividend distribution.