(REIT) Financial Report for the Fiscal Period Ended February 2019
REIT Securities Issuer:
Securities Code:
Representative:

April 17, 2019
Listing: Tokyo Stock Exchange
URL: https://xymaxreit.co.jp/en/index.html

XYMAX REIT Investment Corporation
3488
Nobuhito Inatsuki, Executive Director

Asset Management Company: XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation
Representative:
Nobuhito Inatsuki, Representative Director and President
Contact:
Tatsuya Nakayama, Head of Planning Division
TEL: +81-3-5544-6860
Scheduled date for submission of securities report:
Scheduled date for commencement of distribution payment:

May 29, 2019
May 22, 2019

Supplementary materials for financial results:
Financial results briefing session:

Yes
Yes (for institutional investors and analysts)

1.

(Amounts are rounded down to the nearest million yen)
Status of Management and Assets for the Fiscal Period Ended February 2019 (from September 1, 2018 to February 28, 2019)(1) Results of Operations(% figures are the rate of period-on-period increase (decrease))
Operating revenue
million yen
Fiscal period
ended Feb. 2019
Fiscal period
ended Aug. 2018

Operating income

million yen%

million yen

%

1,312

(4.5)

856

(4.5)

804

37.5

803

37.7

1,374

-

897

-

584

-

583

-

Fiscal period
ended Feb. 2019
Fiscal period
ended Aug. 2018

(Note 2)

(Note 3)(Note 4)

Net income%

Net income per unit

(Note 1)

Ordinary income% million yen

Ratio ofordinary income tooperating revenue

Ratio ofordinary income tototal assets

Return on equity

yen

%

%

%

3,595

3.5

2.2

61.3

4,606

2.6

1.6

42.5

At XYMAX REIT Investment Corporation (hereinafter, “XYMAX REIT”), the accounting period for the fiscal period ended August 2018 is a periodof 352 days from September 14, 2017 to August 31, 2018, but the number of days of the actual asset management period was a period of 197
days from February 16, 2018.
Net income per unit for the fiscal period ended August 2018 is calculated by dividing net income by the daily weighted average number ofinvestment units (126,587 units). In addition, net income per unit for the fiscal period ended August 2018 when calculated based on the daily
weighted average number of investment units with the date of commencement of actual management (February 16, 2018) deemed as the
beginning of the fiscal period (221,695 units) is 2,630 yen.
Return on equity and ratio of ordinary income to total assets for the fiscal period ended August 2018 are calculated using the average of equity
and average of total assets as of February 16, 2018, which is the actual asset management commencement date, and as of the end of the fiscal
period ended August 2018.
Percentage figures for operating revenue, operating income, ordinary income and net income are the rate of period-on-period increase(decrease) but are not applicable for the fiscal period ended August 2018, because it is the first fiscal period.

(2) Distribution

Fiscal period
ended Feb. 2019
Fiscal period
ended Aug. 2018
(Note 1)
(Note 2)Distribution
per unit(excluding
distribution
in excess ofearnings)
yen

Total
distribution(excluding
distribution
in excess ofearnings)
million yen

3,596
2,610

Distribution
in excess ofearnings
per unit

Total
distribution
in excess ofearnings

Payout ratio

Ratio ofdistribution to
net assetsyenmillion yen

%

%

803

0

0

100.0

3.5

583

0

0

100.0

2.6

Due to issuance of new investment units, payout ratio for the fiscal period ended August 2018 is calculated by the following formula, rounded
to one decimal place:
Payout ratio = Total distribution (excluding distribution in excess of earnings) ÷ Net income × 100
Ratio of distribution to net assets is calculated by the following formula:
Distribution per unit (excluding distribution in excess of earnings) / [(Net assets per unit at beginning of period + Net assets per unit at end of
period) ÷ 2] × 100

(3) Financial Position

Fiscal period
ended Feb. 2019
Fiscal period
ended Aug. 2018

Total assets
million yen

Net assets
million yen

36,701Equity ratio%

Net assets per unit
yen

23,38963.7

104,696

37,15023,16862.4

103,710

Net cashprovided by (used in)operating activities
million yen

Net cashprovided by (used in)investing activities
million yen

Net cashprovided by (used in)financing activities
million yen

Cash andcash equivalents
at end of period
million yen

1,486

(203)

(1,162)

3,021

448

(32,299)

34,752

2,901(4) Cash Flows

Fiscal period
ended Feb. 2019
Fiscal period
ended Aug. 20182.

Operating Forecasts for the Fiscal Period Ending August 2019 (from March 1, 2019 to August 31, 2019) andFiscal Period Ending February 2020 (from September 1, 2019 to February 29, 2020)(% figures are the rate of period-on-period increase (decrease))

Operating revenue Operating income

Ordinary income

Net income

Distribution
per unit(excluding
distribution
in excess ofearnings)

Distribution
in excess ofearnings
per unit

mn yen% mn yen% mn yen% mn yen%yen
yenFiscal period
1,296
(1.2)
704
(17.7)
659(18.0)
658(18.0)
2,947
0
ending Aug. 2019
Fiscal period
1,291
(0.4)
699
(0.8)
649
(1.6)
648
(1.6)
2,901
0
ending Feb. 2020
(Reference) Forecast net income per unit
(Forecast net income ÷ Forecast total number of investment units issued and outstanding at end of period)
Fiscal period ending August 2019: 2,947yen
Fiscal period ending February 2020: 2,901yen(Note)

Distribution per unit is calculated based on the total number of investment units issued and outstanding as of the date of this document of
223,400 units.

* Other(1) Changes in Accounting Policies, Accounting Estimates, and Retrospective Restatements
i. Changes in accounting policies accompanying amendments to accounting standards, etc.:
ii. Changes in accounting policies other than i.:iii. Changes in accounting estimates:
iv. Retrospective restatements:

None
None
None
None

(2) Total number of investment units issued and outstandingi. Total number of investment units issued and outstanding (including treasury investment units) at end of period
Fiscal period ended Feb. 2019
223,400 units
Fiscal period ended Aug. 2018
223,400 units
ii. Number of treasury investment units at end of period
Fiscal period ended Feb. 2019
0 units
Fiscal period ended Aug. 2018
(Note)

0units

For the number of investment units serving as the basis for calculation of net income per unit, please see “Notes on Per Unit Information”
on page 23.

* Presentation of Status of Implementation of Audit Procedures
At the time of disclosure of this financial report, the audit procedures for financial statements pursuant to the Financial
Instruments and Exchange Act have not been completed.
* Explanation of Appropriate Use of Operating Forecasts, and Other Matters of Special Note
The operating forecasts and other forward-looking statements contained in this document are based on information currently
available to and certain assumptions deemed reasonable by XYMAX REIT. Accordingly, the actual results of operations, etc.
may differ materially due to various factors. In addition, the forecasts are not a guarantee of the amount of distribution. For
the assumptions underlying the operating forecasts, matters of note in the use of the operating forecasts, etc., please see“Assumptions Underlying the Operating Forecasts for the Fiscal Period Ending August 2019 (from March 1, 2019 to August
31, 2019) and Fiscal Period Ending February 2020 (from September 1, 2019 to February 29, 2020)” on page 5. Accordingly,
the actual operating revenue, operating income, ordinary income, net income, distribution per unit and distribution in excessof earnings per unit may vary due to changes in the circumstances.

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
Table of Contents
1. Related Parties of the Investment Corporation ................................................................................................................................. 2
2. Management Policy and Management Status .................................................................................................................................... 2(1) Management Policy ....................................................................................................................................................................... 2(2) Management Status ....................................................................................................................................................................... 2(3) Investment Risks ........................................................................................................................................................................... 6
3. Financial Statements ........................................................................................................................................................................... 7(1) Balance Sheet ................................................................................................................................................................................. 7(2) Statement of Income ..................................................................................................................................................................... 9(3) Statement of Unitholders’ Equity ............................................................................................................................................... 10(4) Statement of Cash Distribution .................................................................................................................................................. 11(5) Statement of Cash Flows ............................................................................................................................................................. 12(6) Notes on the Going Concern Assumption .................................................................................................................................. 13(7) Notes on Matters Concerning Significant Accounting Policies ................................................................................................. 13(8) Notes on the Financial Statements ............................................................................................................................................. 14(9) Changes in Total Number of Investment Units Issued and Outstanding ................................................................................. 23
4. Changes in Directors ......................................................................................................................................................................... 23(1) Directors of the Investment Corporation ................................................................................................................................... 23(2) Directors of the Asset Management Company .......................................................................................................................... 23
5. Reference Information ...................................................................................................................................................................... 24(1) Investment Status ........................................................................................................................................................................ 24(2) Investment Assets ....................................................................................................................................................................... 25-1-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019

1. Related Parties of the Investment Corporation
Disclosure is omitted because there have been no significant changes to the “Structure of the Investment Corporation” inthe most recent securities report (submitted on November 29, 2018).

2. Management Policy and Management Status(1) Management Policy
Disclosure is omitted because there have been no significant changes to “Investment Policy,” “Investment Targets” and“Distribution Policy” in the most recent securities report (submitted on November 29, 2018).
(2) Management Status(Overview of the Fiscal Period under Review)
I. Brief History of the Investment Corporation
XYMAX REIT was incorporated under the Act on Investment Trusts and Investment Corporations (Act No. 198 of1951, as amended) (hereinafter, the “Investment Trusts Act”) with XYMAX REAL ESTATE INVESTMENT ADVISORS
Corporation (hereinafter, the “Asset Management Company”) as the organizer and investments in capital of 300
million yen (3,000 units) on September 14, 2017, and completed the registration with the Kanto Local Finance
Bureau on October 31, 2017 (Registration No. 131 with the Director-General of the Kanto Local Finance Bureau).
Later, XYMAX REIT implemented an issuance of new investment units through public offering (209,905 units) with
February 14, 2018 as the payment due date, and listed on the Real Estate Investment Trust Securities Market of Tokyo
Stock Exchange, Inc. (hereinafter, “Tokyo Stock Exchange”) on February 15, 2018 (securities code: 3488). In addition,
an issuance of new investment units through third-party allotment (10,495 units) was implemented on March 20,
2018.
These resulted in total number of investment units issued and outstanding of 223,400 units as of the last day of the
fiscal period.
XYMAX REIT utilizes the real estate management (Note 1) strengths of the XYMAX Group (Note 2) to conduct
appropriate portfolio management and thereby maximize the value of real estate with the aim of maximizing
unitholder value.
(Note 1) “Real estate management” collectively refers to property management, comprehensive building
maintenance services, and combined property management and comprehensive building maintenanceservices (including cases where contracted with such services in subleasing cases). The same shall apply
hereinafter.
(Note 2) “XYMAX Group” refers to the corporate group comprising XYMAX Corporation and its consolidated
subsidiaries and affiliates accounted for using the equity method. The same shall apply hereinafter.
II.

Management Environment
In the fiscal period under review, the Japanese economy saw real GDP growth rate fall by 0.6% (annual rate of 2.5%)
for the July to September 2018 period, affected by a series of natural disasters, before turning around with anincrease of 0.5% (annual rate of 1.9%) for the October to December 2018 period. While the trends of the capital
market have been closely observed with respect to concerns over economic slowdown brought by the U.S.-China
trade friction and other factors, the J-REIT market was recognized for its stable yield and the TSE JREIT Index also
remained strong.
Under such domestic economic circumstances, the following movements were seen in the markets of office, retailand hotel in which XYMAX REIT mainly invests.
In the office market, demand for office space continued to be robust against the backdrop of aggressive hiring bycompanies. According to “Office Market Report Tokyo Q4 2018” (Note) announced by XYMAX REAL ESTATE
INSTITUTE Corporation, “Increase and Decrease in Vacant Space” showed decrease in vacant space exceeding
increase for the sixteenth consecutive quarter since 1Q 2015 as well as continued decrease in the vacancy rate,
indicating continuation of a tight supply-demand balance.
In the retail market, according to the Current Survey of Commerce by Ministry of Economy, Trade and Industry, thesales of retail for 4Q 2018 increased by 2.0% year on year. By type of business, each of food & beverages, fabrics
apparel & accessories and machinery & equipment saw growth of around 1%. Albeit a slight growth, continuous
upward trends are anticipated.
-2-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
In the hotel market, the number of foreign visitors to Japan increased mainly from Asian countries, marked a record
high of 31.2 million in 2018, up 8.7%, according to the information released by Japan National Tourism Organization.
With such increase of inbound tourists, demand for hotel guestrooms has remained solid. On the other hand, however,the Japan Tourism Agency’s Overnight Travel Statistics Survey shows that the number of overnight guests in Japanfor 2018 remained unchanged from the previous year, and thus it is necessary to pay close attention to the trend of
the number of overnight guests.
In the real estate buy/sell market, acquisition competition has continued to intensify due to the strong investment
appetite of listed REITs, private REITs, overseas investors and domestic business corporations including real estatecompanies and also due to the favorable fund raising environment, keeping transaction prices high and expected cap
rates are on the downward trend.
(Note)For more details of the research findings, please refer to the website of XYMAX Real Estate Institute Corporation(https://soken.xymax.co.jp/)

III. Management Status
As of the last day of the fiscal period under review, XYMAX REIT had 12 properties in its portfolio. Its total acquisition
price stood at 33,040 million yen, a total leasable area at 72,701.04 m2 and total leased area at 71,936.29 m2. The
occupancy rate as of the last day of the fiscal period under review was 98.9%.
IV. Financing Status(Equity Financing)In the fiscal period under review, XYMAX REIT did not procure funds through issuance of new investment units. Asof the last day of the fiscal period under review, unitholders’ capital was 22,585 million yen.
(Debt Financing)In the fiscal period under review, XYMAX REIT conducted on December 28, 2018 an early repayment of 580 million
yen out of 2,916 million yen of short-term loans due on January 31, 2019 using the consumption tax return refundedon November 30, 2018 and cash on hand; and refinanced the remaining 2,336 million yen.
As a result, as of the last day of the fiscal period under review, the balance of loans outstanding was 11,680 million
yen.
V.

Overview of Business Performance
Business performance in the fiscal period under review resulted in operating revenue of 1,312 million yen, operating
income of 856 million yen, ordinary income of 804 million yen and net income of 803 million yen.
Concerning distribution for the fiscal period under review, pursuant to the distribution policy provided in XYMAXREIT’s Articles of Incorporation, the decision was made to distribute unappropriated retained earnings in theamount of 803,346,400 yen, which is the largest integral multiple of the total number of investment units issued andoutstanding (223,400 units) by application of special provisions for taxation on investment corporations (Article 6715 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957, as amended)). This resulted in
distribution per unit of 3,596 yen.

(Outlook for the Next Fiscal Period)
I. General Management Outlook(A) External Growth Strategy
Capture wide range of real estate disposition needs through real estate management customer base
XYMAX REIT captures real estate disposition needs from the customer base of the XYMAX Group based on a sponsor
support agreement with sponsor XYMAX Corporation with the aim to lead such needs to property acquisition
opportunities for XYMAX REIT.
(B) Internal Growth Strategy
Utilization of the real estate management insight and know-how and network of the XYMAX GroupThrough the sponsor support agreement with XYMAX Group, XYMAX REIT is provided with various real estate
management insight, know-how, databases, management systems, private fund management experience, etc. On thisbasis, XYMAX REIT can and will perform stable and efficient management.
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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019

(C) Financial Strategy
Financial management with emphasis on stability and soundness, and LTV ratio control
XYMAX REIT shall execute a financial strategy that places emphasis on stability and soundness and secure agility infund procurement, taking into consideration the securing of stable revenue over the medium to long term, steady
growth in size of assets under management and stability of management.
II.

Significant Subsequent Events
Not applicable.

III. Operating Forecasts
XYMAX REIT’s operating forecasts for the fiscal period ending August 2019 (from March 1, 2019 to August 31, 2019)and fiscal period ending February 2020 (from September 1, 2019 to February 29, 2020) are as follows:
Distribution
Distribution
per unit
in excess of(excluding
OperatingOperating
Ordinary
Net income
earnings
distribution
revenueincomeincomeper unit
in excess ofearnings)
million yen
million yen
million yen
million yen
yenyen
Fiscal period
1,296
704
659
658
2,947
0
ending Aug. 2019
Fiscal period
1,291
699
649
648
2,901
0
ending Feb. 2020
Furthermore, for the assumptions underlying the operating forecasts, please refer to “Assumptions Underlying the
Operating Forecasts for the Fiscal Period Ending August 2019 (from March 1, 2019 to August 31, 2019) and Fiscal
Period Ending February 2020 (from September 1, 2019 to February 29, 2020)” presented later in this document.
(Note)

The forecast figures above are the current forecast figures calculated under certain assumptions. Accordingly, the actual operating
revenue, operating income, ordinary income, net income, distribution per unit and distribution in excess of earnings per unit mayvary due to changes in the circumstances. In addition, the forecasts are not a guarantee of the amount of distribution.

-4-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
Assumptions Underlying the Operating Forecasts for the Fiscal Period Ending August 2019 (from March 1, 2019 to August 31,2019) and Fiscal Period Ending February 2020 (from September 1, 2019 to February 29, 2020)
Item
Accounting
periodAssets undermanagement

Operatingrevenue

Assumption
 Fiscal period ending August 2019 (3rd fiscal period)(from March 1, 2019 to August 31, 2019) (184 days)
 Fiscal period ending February 2019 (4th fiscal period)(from September 1, 2019 to February 29, 2020) (182 days) The assumption is that the real estate trust beneficiary rights held by XYMAX REIT as of today (total of
12 properties) (hereinafter, the “current portfolio assets”) will continue to be held and there will be no
acquisition of new properties other than the current portfolio assets through to the end of the fiscal
period ending February 2020 (4th fiscal period).
 Change may arise due to acquisition of new properties other than the current portfolio assets,
disposition of the current portfolio assets, etc.
 Operating revenue from leasing is calculated on the basis of various factors, such as the content of leaseagreements entered into for the current portfolio assets and past tenant and market trends, and by
taking into account various factors, such as the assumed occupancy rate and rent fluctuation
projections based on tenant move-in/move-out and rent level projections.
 Variable rent is calculated on the basis of mainly the forecast operating figures submitted by theoperator and based on the method of calculation provided in the lease agreement.
[Hotel Vista Sendai]
Fixed rent:Monthly amount of 20.0 million yen
Variable rent: The monthly variable rent shall be the amount equal to the total variable rent received
by the lessee from the sublessee (hereinafter, “variable rent from subtenant” (Note))
in the past 12 months, including said month, divided by 12.
(Note)



OperatingexpensesNon-operating
expensesInterest-bearing
liabilities
“Variable rent from subtenant” refers to the amount calculated by multiplying gross sales from the hotel
operations of the sublessee by a certain percentage. Actual effective percentage is not disclosed, because consent
for disclosure has not been obtained from the sublessee.

Fiscal period
Fiscal period
ending Aug. 2019
ending Feb. 2020
(3rd fiscal period)(4th fiscal period)
Variable rent
36million yen
36million yen
The assumption is that there will be no delinquent or unpaid rent by tenants and no gain (loss) on salesof real estate properties.
Of operating expenses, the main components are as follows (rounded down to the nearest specified
unit; the same shall apply hereinafter):
Fiscal period
Fiscal period
ending Feb. 2020
ending Aug. 2019
(4th fiscal period)(3rd fiscal period)
Expenses related to rent business [Total]
469million yen
473million yen
Management fee
84million yen
84million yen
Repair expenses
40million yen
42million yen
Property taxes
134million yen
134million yen
Depreciation
123million yen
127million yen
Other than expenses related to rent business [Total]
122million yen
118million yen
Asset management fee
77million yen
76million yen
Expenses related to rent business, which are the main operating expenses, are calculated on the basisof historical data at XYMAX REIT (historical data disclosed by the previous owner, etc. in the case of
periods for which there is no historical data at XYMAX REIT) and by taking into consideration factors
causing fluctuation in expenses.
Depreciation is calculated using the straight-line method inclusive of incidental expenses, etc.
Repair expenses are the amount necessary in each fiscal period as assumed on a property-by-property
basis by the Asset Management Company. However, repair expenses possibly increasing in amount or
additionally arising from unforeseeable factors, the amount generally tending to vary materially fromfiscal year to fiscal year and not being an amount that arises periodically, etc. may result in repair
expenses for each fiscal period differing materially from the forecast amount.
For the fiscal period ending August 2019 (3rd fiscal period), interest expenses and other borrowing
related expenses are assumed to be 45million yen.
For the fiscal period ending February 2020 (4th fiscal period), interest expenses and other borrowing
related expenses are assumed to be 50million yen.
The assumption is that total interest-bearing liabilities will be 11,680 million yen at the end of the fiscal
period ending August 2019 (3rd fiscal period) and 11,680 million yen at the end of the fiscal period
ending February 2020 (4th fiscal period). Short-term loans of 1,014 million yen and long-term loans of
2,336 million are due in the fiscal period ending February 2020. The assumption is that these will be
repaid with funds procured through loans, etc.
LTV ratio is expected to be 32.0% at the end of the fiscal period ending August 2019 (3rd fiscal period)and 32.0% at the end of the fiscal period ending February 2020 (4th fiscal period). In addition, the-5-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
Item

Assumption
following formula is used in the calculation of LTV ratio.
LTV ratio = Total interest-bearing liabilities ÷ Total assets × 100

Investment units

Distribution
per unit(excluding
distribution
in excess ofearnings)
Distribution
in excess ofearnings
per unit The assumption is the total number of investment units issued and outstanding is 223,400 units as ofthe end of the fiscal period ended February 2019 and that there will be no change in the number ofinvestment units due to issuance of new investment units, etc. through to the end of the fiscal period
ending February 2020 (4th fiscal period).
 Distribution per unit (excluding distribution in excess of earnings) and distribution in excess ofearnings per unit are calculated on the basis of the forecast total number of investment units issued
and outstanding at the end of the fiscal period ending August 2019 (3rd fiscal period) and fiscal period
ending February 2020 (4th fiscal period) of 223,400 units.
 Distribution per unit (excluding distribution in excess of earnings) is calculated based on theassumption that distribution will be in accordance with the cash distribution policy provided in XYMAXREIT’s Articles of Incorporation.
 Distribution per unit (excluding distribution in excess of earnings) may vary due to various factors,
such as fluctuation in rent revenue accompanying change in assets under management, change intenants, etc. or incurrence of unexpected repairs.
 No cash distribution in excess of earnings (distribution in excess of earnings per unit) is scheduled tobe made at this point in time.

 The assumption is that there will be no revision of laws and regulations, tax systems, accounting
Otherstandards, listing regulations provided by Tokyo Stock Exchange, rules provided by The Investment
Trusts Association, Japan, etc. that will impact the forecast figures above.
 The assumption is that there will be no unforeseen material change in general economic trends, realestate market conditions, etc.

(3) Investment Risks
Disclosure is omitted because there have been no significant changes from “Investment Risks” in the most recent
securities report (submitted on November 29, 2018).

-6-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019

3. Financial Statements(1) Balance Sheet(Unit: thousand yen)

AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property, plant and equipment
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Lease and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets-7-

1st fiscal period(As of Aug. 31, 2018)

2nd fiscal period(As of Feb. 28, 2019)943,567
1,958,065
19,92832,703572,370
2,077
3,528,713

1,161,697
1,860,121
22,951
33,557210
3,078,538

108,551(15,114)93,436
8,881,351(107,658)
8,773,693
45,459(824)
44,635
4,047
(233)
3,814
24,606,271
33,521,850

108,551(29,150)
79,4008,973,338(211,056)
8,762,281
45,459(1,597)43,862
6,452
(705)
5,747
24,606,271
33,497,562

43,50428
22,60033,507
99,63933,621,490
37,150,203

41,701
11
22,60061,336125,649
33,623,212
36,701,751

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019

(Unit: thousand yen)

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Long-term loans payable to be repaid within one year
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Tenant leasehold and security deposits in trust
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets-8-

1st fiscal period(As of Aug. 31, 2018)

2nd fiscal period(As of Feb. 28, 2019)

201,1312,916,000
106,382
1,687
181,4422,540
3,409,184

100,769
1,014,000
2,336,000
95,119836
65,039173,375883
3,786,023

9,344,000
1,228,116
10,572,116
13,981,301

8,330,000
1,196,612
9,526,612
13,312,636

22,585,746

22,585,746

583,155
583,155
23,168,901*1 23,168,901
37,150,203

803,368
803,368
23,389,114*1 23,389,114
36,701,751

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019(2) Statement of Income(Unit: thousand yen)

Operating revenue
Lease business revenue
Other lease business revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensations
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Investment unit issuance expenses
Deferred organization expenses
Business commencement expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)-9-

1st fiscal period
From: Sept. 14, 2017
To: Aug. 31, 2018

2nd fiscal period
From: Sept. 1, 2018
To: Feb. 28, 2019

*1 1,268,583*1 106,260
1,374,843*1 1,204,800*1 107,604
1,312,404*1 352,220
85,797882
12,0404,800
21,588477,330
897,512*1 333,945
79,815
835
9,902
2,400
28,778455,677
856,727

16
16

14
752
767

32,979102,607
93,42372,045
11,654
312,710584,818584,818
1,690
(28)
1,662
583,155
583,155

30,776
22,57553,351
804,142804,142838
16
855
803,28781
803,368

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019(3) Statement of Unitholders’ Equity
1st fiscal period (from September 14, 2017 to August 31, 2018)(Unit: thousand yen)

Unitholders’ equity
Surplus
Unitholders’ capital

Unappropriatedretained earnings(undisposed loss)--

Balance as of
September 14, 2017
Changes of items
during period
Issuance of new
investment units-

22,585,746

*1

Total
net assets--

22,585,746

22,585,746

583,155

583,155

583,155

583,155

22,585,746

583,155

583,155

23,168,901

23,168,901

22,585,746

583,155

583,155

23,168,901

23,168,901

Net income
Total changes
during period
Balance as ofAugust 31, 2018

Total
unitholders’ equity

Total
surplus2nd fiscal period (from September 1, 2018 to February 28, 2019)(Unit: thousand yen)

Unitholders’ equity
SurplusTotal
unitholders’ equity

Total
net assets

Unitholders’ capital

Unappropriatedretained earnings(undisposed loss)

22,585,746

583,155

583,155

23,168,901

23,168,901

Dividends of surplus-(583,074)(583,074)(583,074)(583,074)

Net income-

803,287

803,287

803,287

803,287-

220,213220,213220,213220,213

22,585,746

803,368

803,368

23,389,114

23,389,114

Balance as of
September 1, 2018
Changes of items
during period

Total changes
during period
Balance as ofFebruary 28, 2019*1

- 10 -

Total
surplus

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019(4) Statement of Cash Distribution
Classification

1st fiscal period
From: Sept. 14, 2017
To: Aug. 31, 2018

I.
II.

Unappropriated retained earnings
Amount of distribution[Amount of distribution per unit]
III. Retained earnings carried forward
Method of calculation ofamount of distribution

2nd fiscal period
From: Sept. 1, 2018
To: Feb. 28, 2019

583,155,819 yen
583,074,000 yen[2,610 yen]
81,819 yen

803,368,973 yen
803,346,400 yen[3,596 yen]
22,573 yen

Pursuant to the cash distribution
policy stipulated in Article 35,
Paragraph 1 of XYMAX REIT’s Articles
ofIncorporation,amountofdistribution must be equal or lessthan the amount of profit and exceed
90% of XYMAX REIT’s distributableprofit that is defined by Article 67-15
of the Act on Special Measures
Concerning Taxation. Based on thispolicy, XYMAX REIT has decided to
distribute 583,074,000 yen, which is
the maximum value of the integral
multiple of the total number of units
issued and outstanding (223,400
units), not exceeding unappropriatedretained earnings.
XYMAX REIT
does not make
distribution in excess of earnings
defined by Article 35, Paragraph 2 of
XYMAX
REIT’s
Articlesof
Incorporation.

Pursuant to the cash distribution
policy stipulated in Article 35,
Paragraph 1 of XYMAX REIT’s Articles
ofIncorporation,amountofdistribution must be equal or lessthan the amount of profit and exceed
90% of XYMAX REIT’s distributableprofit that is defined by Article 67-15
of the Act on Special Measures
Concerning Taxation. Based on thispolicy, XYMAX REIT has decided to
distribute 803,346,400 yen, which is
the maximum value of the integral
multiple of the total number of units
issued and outstanding (223,400
units), not exceeding unappropriatedretained earnings.
XYMAX REIT
does not make
distribution in excess of earnings
defined by Article 35, Paragraph 2 of
XYMAX
REIT’s
Articlesof
Incorporation.

- 11 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019(5) Statement of Cash Flows(Unit: thousand yen)
1st fiscal period
From: Sept. 14, 2017
To: Aug. 31, 2018
Cash flows from operating activities
Income before income taxes
Depreciation
Investment unit issuance expenses
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes refund receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Other

2nd fiscal period
From: Sept. 1, 2018
To: Feb. 28, 2019584,818
123,830
93,423(16)
32,979(19,928)(572,370)(32,703)61,608106,382
181,442(43,504)(34,774)

804,142
118,679(14)
30,776(3,023)572,370(854)(13,833)(11,263)
65,039(8,066)1,802(37,188)

Subtotal

481,187

1,518,566

Interest income received
Interest expenses paid
Income taxes paid

16
(32,815)(2)

14(30,760)(1,690)Net cash provided by (used in) operating activities

448,384

1,486,130(108,288)(33,397,869)(7,120)1,236,803(22,600)(263)(180,657)(61,198)
39,098-(32,299,074)(203,020)

3,976,000(1,060,000)
9,344,000
22,492,322

1,014,000(2,916,000)
1,322,000-

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Payments for lease and guarantee deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Proceeds from issuance of investment units
Dividends paid-

(582,923)

Net cash provided by (used in) financing activities

34,752,322(1,162,923)

Net increase (decrease) in cash and cash equivalents

2,901,632

120,186-

2,901,632*1 2,901,632*1 3,021,818

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 12 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019(6) Notes on the Going Concern Assumption
Not applicable.
(7) Notes on Matters Concerning Significant Accounting Policies
1. Method of depreciation (1) Property, plant and equipment (including trust assets)of non-current assets
The straight-line method is adopted.
Furthermore, the useful life of core property, plant and equipment is as follows:
Buildings
3–63 years
Structures
13–51 years
Tools, furniture and fixtures
2–13 years(2) Long-term prepaid expenses
The straight-line method is adopted.
2.

Standards forrevenue and expense
recognition

Accounting for fixed property tax, etc.
For fixed property tax, city planning tax, depreciable property tax, etc. on real estate ortrust beneficiary rights that have real estate as trust assets held, the accounting is that, of
the tax amount assessed and determined, the amount corresponding to the fiscal period
is expensed as expenses related to rent business.
Furthermore, the amount equivalent to fixed property tax, etc. in the initial fiscal year
borne by XYMAX REIT upon acquisition of real estate or trust beneficiary rights that havereal estate as trust assets is not recognized as expenses but included in the cost of
acquisition of the concerned real estate, etc. The amount equivalent to fixed property tax,
etc. included in the cost of acquisition of real estate, etc. was 233 million yen in theprevious fiscal period and none in the fiscal period under review.

3.

Method ofhedge accounting(1) Hedge accounting approach
Special accounting is adopted for interest rate swaps that meet the requirements for
special treatment.
(2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transaction
Hedged items:
Interest on loans(3) Hedging policy
XYMAX REIT conducts derivative transactions for the purpose of hedging the risks
provided in its Articles of Incorporation based on its risk management policy.
(4) Method of assessing the effectiveness of hedging
The assessment of the effectiveness is omitted for interest rate swaps that meet therequirements for special treatment.

4.

Scope of funds in the
The funds (cash and cash equivalents) in the statement of cash flows comprise cash onstatement of cash flows hand and cash in trust, demand deposits and bank deposits in trust, and short-term
investments with a maturity of 3 months or less from the date of acquisition that arereadily convertible to cash and that are subject to a low risk of changes in value.

5.

Other significant(1) Accounting for trust beneficiary rights that have real estate, etc. as trust assets
matters serving as theConcerning trust beneficiary rights that have real estate, etc. as trust assets held, allbasis for preparation of
accounts of assets and liabilities within trust assets and all accounts of revenue andthe financial
expenses from the trust assets are recognized in the relevant account item of thebalance sheet and the statement of income.
statements
Furthermore, the following material items of the trust assets recognized in therelevant account item are separately listed on the balance sheet.
(i) Cash and bank deposits in trust(ii) Buildings in trust; Structures in trust; Tools, furniture and fixtures in trust; Landin trust(iii) Tenant leasehold and security deposits in trust(2) Accounting for consumption tax, etc.
The accounting for consumption tax and local consumption tax is that the taxes are
excluded from transaction amounts. Furthermore, non-deductible consumption tax,
etc. on acquisition of assets is included in the cost of acquisition of each asset.
- 13 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
[Notes on Changes in Presentation or Classification]
Change in line with application of “Partial Amendments to ‘Accounting Standard for Tax Effect Accounting’”
By applying “Partial Amendments to ‘Accounting Standard for Tax Effect Accounting’” (ASBJ Statement No. 28, February
16, 2018) from the beginning of the fiscal period under review, presentation method is changed to classifying deferred
tax assets under investments and other assets and deferred tax liabilities under non-current liabilities. As the result,deferred tax assets under current assets (28 thousand yen) in the balance sheet for the previous fiscal period is included
in deferred tax assets under investments and other assets (28 thousand yen) in that for the fiscal period under review.
(8) Notes on the Financial Statements[Notes on the Balance Sheet]*1. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations
1st fiscal period(As of Aug. 31, 2018)

2nd fiscal period(As of Feb. 28, 2019)50,000 thousand yen

50,000 thousand yen[Notes on the Statement of Income]*1. Breakdown of operating income (loss) from real estate leasing
1st fiscal period
From: Sept. 14, 2017
To: Aug. 31, 2018
A. Operating revenue from real estate leasing
Lease business revenue
Rent revenue
Common area maintenance revenue

1,100,548
168,035

Other lease business revenue
Utility reimbursement
Parking revenue
Other rental revenue

69,75928,147
8,353

Total operating revenue from real estate leasing
B. Operating expenses from real estate leasing
Expenses related to rent business
Maintenance fee
Utility expenses
Repair expenses
Insurance premium
Depreciation
Other expenses related to rent business(Unit: thousand yen)
2nd fiscal period
From: Sept. 1, 2018
To: Feb. 28, 2019

1,268,583

1,052,642
152,158

106,260

63,294
28,86915,441

1,374,843

89,05971,06535,8504,034
123,830
28,379352,220

1,204,800

107,604
1,312,404

82,63662,54236,351
3,720
118,679
30,016

333,945

Total operating expenses from real estate leasing

352,220

333,945

C. Operating income (loss) from real estate leasing [A-B]

1,022,622

978,458- 14 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
[Notes on the Statement of Unitholders’ Equity]*1. Total number of investment units authorized and total number of investment units issued and outstanding

Total number of investment units authorized
Total number of investment units issued and outstanding

1st fiscal period
From: Sept. 14, 2017
To: Aug. 31, 2018

2nd fiscal period
From: Sept. 1, 2018
To: Feb. 28, 2019

5,000,000 units

5,000,000 units

223,400 units

223,400 units[Notes on the Statement of Cash Flows]*1. Reconciliation of cash and cash equivalents at end of period to the amount of balance sheet items(Unit: thousand yen)
1st fiscal period
From: Sept. 14, 2017
To: Aug. 31, 2018

2nd fiscal period
From: Sept. 1, 2018
To: Feb. 28, 2019

Cash and bank deposits
Cash and bank deposits in trust

943,567
1,958,065

1,161,697
1,860,121

Cash and cash equivalents

2,901,632

3,021,818[Notes on Financial Instruments]
1. Matters concerning status of financial instruments(1) Policy for handling financial instruments
XYMAX REIT shall procure funds for acquisition of assets, repayment of liabilities, etc. through issuance ofinvestment units, borrowing from financial institutions, issuance of investment corporation bonds, etc. Dueconsideration shall be given to the balance between agility in fund procurement and financial stability when
procuring funds.
Surplus funds may be invested in securities and monetary claims, but shall be invested as bank deposits as a rulein consideration of security.
Derivative transactions may be utilized only if for the purpose of hedging the risk of fluctuation in interest rates,
etc., but no speculative transactions shall be conducted.
(2) Description of financial instruments and associated risks, and risk management system
Deposits are those for investing XYMAX REIT’s surplus funds and are exposed to credit risk, such as failure of thedepository financial institutions, but the credit risk is limited by limiting the deposit period to short term andtransacting with depository financial institutions that have high credit rating.
Loans are those for mainly the purpose of acquisition of real estate, etc., repayment of liabilities, etc. and are
exposed to the liquidity risk of not being able to procure substitute funds upon maturity, but the liquidity risk is
mitigated through diversification of fund procurement means and sources, staggering of maturities and securingliquidity on hand and the liquidity risk is also managed by preparing monthly fund management plans and othermeans. In addition, loans with floating interest rates are exposed to the risk of rise in interest rates payable, but
the impact of the rise in market interest rates on XYMAX REIT’s operations is limited by keeping the ratio ofinterest-bearing liabilities to total assets at a low level and maintaining a balance between the ratio of loans withfloating interest rates and the ratio of loans with fixed interest rates.
Derivative transactions are utilized for the purpose of hedging the risk of fluctuation in interest rates payable on
certain loans. For the hedge accounting approach, hedged items, contract amount, etc., please refer to “2. Mattersconcerning fair value, etc. of financial instruments.”
Tenant leasehold and security deposits are deposits from tenants and are exposed to liquidity risk from tenants
vacating, but the risk is limited by retaining an amount in the range that will not hinder the return of deposits as arule.

- 15 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019(3) Supplementary explanation to matters concerning fair value, etc. of financial instruments
The fair value of financial instruments is values based on market price, but may otherwise include values based onreasonable calculation when no market price is available. Variable factors are taken into account in the calculationof the concerned values. Accordingly, the concerned values may vary when different assumptions are adopted. In
addition, the contract amount, etc. of derivative transactions in “2. Matters concerning fair value, etc. of financial
instruments” do not itself represent the market risk involved in the derivative transactions.
2. Matters concerning fair value, etc. of financial instruments
The following are the carrying amount and fair value as of August 31, 2018, and the amount of difference between these.
Financial instruments for which estimation of fair value is recognized to be extremely difficult are not included in thefollowing table. (Please refer to Note 2 below.)(1) Cash and bank deposits(2) Cash and bank deposits in trust
Total assets(1) Short-term loans payable(2) Long-term loans payable to be
repaid within one year
(3) Long-term loans payable
Total liabilities

Carrying amount(thousand yen)

Fair value(thousand yen)Amount of difference(thousand yen)

943,567
1,958,065

943,567
1,958,065-

2,901,632

2,901,632-

2,916,000

2,916,000-

9,344,000

9,399,880

55,88012,260,000

12,315,880

55,880---Derivative transactions

The following are the carrying amount and fair value as of February 28, 2019, and the amount of difference between
these. Financial instruments for which estimation of fair value is recognized to be extremely difficult are not includedin the following table. (Please refer to Note 2 below.)(1) Cash and bank deposits(2) Cash and bank deposits in trust
Total assets(1) Short-term loans payable(2) Long-term loans payable to be
repaid within one year
(3) Long-term loans payable
Total liabilities

Carrying amount(thousand yen)

Fair value(thousand yen)Amount of difference(thousand yen)

1,161,697
1,860,121

1,161,697
1,860,121-

3,021,818

3,021,818-

1,014,000
2,336,000
8,330,000

1,014,000
2,336,000
8,385,422

55,422

11,680,000

11,735,422

55,422---Derivative transactions(Note 1) Method of calculation of the fair value of financial instruments and matters concerning derivative transactions
Assets(1) Cash and bank deposits; (2) Cash and bank deposits in trust
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thusstated at that book value.
Liabilities(1) Short-term loans payable
Because these are settled in a short period of time and have floating interest rates, the fair value is approximately thesame as the book value and thus stated at that book value.
(2) Long-term loans payable to be repaid within one year, (3) Long-term loans payable
Of long-term loans payable, because those with floating interest rates reflect market interest rates in a short period oftime, the fair value is thought to resemble the book value and thus stated at that book value. However, in the case oflong-term loans payable with floating interest rates that qualify for special treatment for interest rate swaps (pleaserefer to “Notes on Derivative Transactions” presented later in this document) and long-term loans payable with fixedinterest rates, the fair value is calculated based on the present value of their future cash flows discounted by the time
to maturity and rate adjusted for credit risks.
- 16 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
Derivative transactions
Please refer to “Notes on Derivative Transactions” below(Note 2) Financial instruments for which estimation of fair value is recognized to be extremely difficult
1st fiscal period
2nd fiscal period(As of Aug. 31, 2018)(As of Feb. 28, 2019)
Tenant leasehold and security deposits
in trust

1,228,116 thousand yen

1,196,612 thousand yen* Tenant leasehold and security deposits in trust are not subject to disclosure of fair value, because there being no market price and, even if thelease contract period has been set, there being the possibility of contract cancellation before expiration or contract extension or renewal makecalculating the actual deposit period impossible and reasonable projection of future cash flows is thus recognized to be extremely difficult.

(Note 3) Amount of redemption of monetary claims scheduled to be due after the end of the fiscal period (August 31, 2018)(Unit: thousand yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

943,567

-

-

-

-

-

Cash and bank deposits in trust

1,958,065

-

-

-

-

-

Total

2,901,632

-

-

-

-

-

Cash and bank deposits

Due after
5 years

Amount of redemption of monetary claims scheduled to be due after the end of the fiscal period (February 28, 2019)(Unit: thousand yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

Due after
5 years

Cash and bank deposits

1,161,697

-

-

-

-

-

Cash and bank deposits in trust

1,860,121

-

-

-

-

-

Total

3,021,818

-

-

-

-

-

(Note 4) Amount of repayment of loans scheduled to be due after the end of the fiscal period (August 31, 2018)(Unit: thousand yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

Short-term loans payable

2,916,000

-

-

-

-

-

Long-term loans payable-

2,336,000

2,336,000

2,336,000

2,336,000-

2,916,000

2,336,000

2,336,000

2,336,000

2,336,000

-

Total

Due after
5 years

Amount of repayment of loans scheduled to be due after the end of the fiscal period (February 28, 2019)(Unit: thousand yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

Short-term loans payable

1,014,000

-

-

-

-

-

Long-term loans payable

2,336,000

2,336,000

2,336,000

2,646,000

1,012,000-

3,350,000

2,336,000

2,336,000

2,646,000

1,012,000

-

Total

- 17 -

Due after
5 years

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
［Notes on Derivative Transactions］
1. Derivative transactions to which hedge accounting is not applied
1st fiscal period (as of August 31, 2018)
Not applicable.
2nd fiscal period (as of February 28, 2019)
Not applicable.
2. Derivative transactions to which hedge accounting is applied
1st fiscal period (as of August 31, 2018)
The following is the contract amount or the amount equivalent to the principal provided in the contract, etc. at the endof the fiscal period for each hedge accounting approach.
(Unit: thousand yen)Contract amount, etc. (Note 1)

Hedge accounting
approach

Type, etc. of
derivative transaction

Main hedged
item

Special treatment forinterest rate swaps

Interest rate swap
transaction(receive floating; pay fixed)

Long-termloans payable

Of which,due after 1 year

Fair value

2,336,000(Note 2)

2,336,000(Note 1)

Contract amount, etc. is based on notional principal.

(Note 2)Since those with special treatment for interest rate swaps are treated integrally with hedged long-term loans payable, the fair valuesof such are included in the fair value of said long-term loans payable. (Please refer to [Notes on Financial Instruments] 2. Mattersconcerning fair value, etc. of financial instruments (Note 1) Method of calculation of the fair value of financial instruments andmatters concerning derivative transactions, Liabilities (3) Long-term loans payable.)

2nd fiscal period (as of February 28, 2019)
The following is the contract amount or the amount equivalent to the principal provided in the contract, etc. at the endof the fiscal period for each hedge accounting approach.
(Unit: thousand yen)Contract amount, etc. (Note 1)

Hedge accounting
approach

Type, etc. of
derivative transaction

Main hedged
item

Special treatment forinterest rate swaps

Interest rate swap
transaction(receive floating; pay fixed)

Long-termloans payable

Of which,due after 1 year

Fair value

2,336,000(Note 2)

2,336,000(Note 1)

Contract amount, etc. is based on notional principal.

(Note 2)Since those with special treatment for interest rate swaps are treated integrally with hedged long-term loans payable, the fair valuesof such are included in the fair value of said long-term loans payable. (Please refer to [Notes on Financial Instruments] 2. Mattersconcerning fair value, etc. of financial instruments (Note 1) Method of calculation of the fair value of financial instruments andmatters concerning derivative transactions, Liabilities (3) Long-term loans payable.)[Notes on Tax-Effect Accounting]
1. Breakdown of main causes for occurrence of deferred tax assets and deferred tax liabilities(Unit: thousand yen)
1st fiscal period
As of Aug. 31, 2018

2nd fiscal period
As of Feb. 28, 2019Non-deductible accrued enterprise tax

28

11

Total

28

11

28

11

Deferred tax assets

Deferred tax assets, net- 18 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 20192.

Breakdown of major components that caused any significant differences between the statutory tax rate and theeffective income tax rate after application of tax-effect accounting(Unit: %)1st fiscal period
As of Aug. 31, 2018

2nd fiscal period
As of Feb. 28, 2019

31.74

31.51

(31.65)0.19(31.48)
0.08

0.28

0.11

Statutory tax rate
[Adjustments]
Deductible distribution payable
Other
Effective income tax rate after application of tax-effect accounting[Notes on Share of Income of Entities Accounted for Using Equity Method, Etc.]
1st fiscal period (from September 14, 2017 to August 31, 2018)
Not applicable.
2nd fiscal period (from September 1, 2018 to February 28, 2019)
Not applicable.
[Notes on Related-Party Transactions]
1. Parent company, major corporate unitholder, etc.
1st fiscal period (from September 14, 2017 to August 31, 2018)

Attribute

Name ofcompany, etc.

Location

Parentcompany

XYMAX
Corporation(Note 3)

Minato-ku,
Tokyo

Capital stock
Percentage of Description of relationshipor
Description of voting rights,
investments
business
etc.
Description ofConcurrent
in capitalorheld by (in)holding of Description of transaction(thousandoccupation XYMAX REIT positions, etc. relationship(%)yen)
by directors

2,612,865

Generalreal estateservices-

100.0

Parentcompany

Acceptance ofcapital(Incorporation
through private
placement)

Transaction
amount(thousandyen)(Note 2)

Account
item

Balanceat end ofperiod(thousandyen)(Note 2)300,000--(Note 1) The above discloses a related-party transaction which includes a material transaction, among related-party
transactions subject to disclosure.
(Note 2) Of the amounts above, transaction amount does not include consumption tax, etc., while balance at end of period
includes consumption tax, etc.
(Note 3) XYMAX Corporation fell under the category of parent company with 100.0% voting rights held in XYMAX REIT at thetime of the transaction, but an issuance of new investment units through public offering resulted in the voting rights
becoming 5.59% and thus no longer falls under the category of parent company as of the last day of the fiscal period.
Accordingly, percentage of voting rights, etc. held in XYMAX REIT and transaction amount are the percentage andamount for the period when it was a parent company, while balance at end of period is the balance at the point in time
when it no longer falls under the category of parent company.
2nd fiscal period (from September 1, 2018 to February 28, 2019)
Not applicable.
2. Affiliated company, etc.
1st fiscal period (from September 14, 2017 to August 31, 2018)
Not applicable.
2nd fiscal period (from September 1, 2018 to February 28, 2019)
Not applicable.

- 19 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
3. Fellow subsidiary, etc.
1st fiscal period (from September 14, 2017 to August 31, 2018)
Capital stockor
Attribute

Name ofcompany, etc.

investments
Locationin capital(thousandyen)

Percentage of Description of relationshipbusiness

etc.

Concurrent

Description oforheld by (in)holding of

Description of transaction

occupation

XYMAX REIT positions, etc. relationship(%)
by directors

XYMAX
Subsidiary REAL ESTATEof parent

INVESTMENT

company

ADVISORS

Minato-ku,
TokyoConcurrent

Real estate
200,000

investment-

management

Corporation

Outsourcing

holding ofof asset

positionsmanagement

by directors

services

Balance

Transaction

Description of voting rights,

at end ofamount(thousandAccount itemyen)

period(thousandyen)(Note 2)

(Note 2)

Organizer
fee

50,000--(Note 3)(Note 1) The above discloses a related-party transaction which includes a material transaction, among related-party
transactions subject to disclosure.
(Note 2) Of the amounts above, transaction amount does not include consumption tax, etc., while balance at end of period
includes consumption tax, etc.
(Note 3) As stated in Note 3 of “1. Parent company, major corporate unitholder, etc.,” XYMAX Corporation no longer falls under
the category of parent company of XYMAX REIT. Consequently, XYMAX REAL ESTATE INVESTMENT ADVISORS
Corporation, too, no longer falls under the category of fellow subsidiary, etc. Accordingly, transaction amount pertaining
to organizer fee is the amount for the period when it was a fellow subsidiary, etc.
(Note 4) The amount of organizer fee is based on the terms and conditions provided in XYMAX REIT’s Articles of Incorporation.
2nd fiscal period (from September 1, 2018 to February 28, 2019)
Not applicable.
4. Director, major individual unitholder, etc.
1st fiscal period (from September 14, 2017 to August 31, 2018)
Percentage of Description of relationship

Capital stockor
Attribute

Name ofcompany, etc.

Location

investments

business

etc.

Concurrent

Description of

in capitalorheld by (in)holding of

Description of transaction(thousandoccupationyen)

Balance

Transaction

Description of voting rights,

XYMAX REIT positions, etc. relationship(%)
by directors

at end ofamount(thousandAccount itemyen)

period(thousandyen)(Note 2)

(Note 2)

Executive
Director of

Organizer

XYMAX REIT,

Executive Director ofand

XYMAX REIT, andRepresentative

Director

Nobuhito
Inatsuki--

Director andPresident of
XYMAX
REAL ESTATE

fee

50,000--(Note 3)

Representative Director andPresident of-

XYMAX REAL ESTATEAsset

INVESTMENT ADVISORS

management

Corporation

fee

INVESTMENT(Note 3)ADVISORS

Accounts
250,997

payable -92,661other(Note 4)

Corporation(Note 1) The above discloses a related-party transaction which includes a material transaction, among related-party
transactions subject to disclosure.
(Note 2) Of the amounts above, transaction amount does not include consumption tax, etc., while balance at end of period
includes consumption tax, etc.
(Note 3) The amount of organizer fee and asset management fee is for transactions conducted by Nobuhito Inatsuki as
representative of XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation, and transaction amount is based on theterms and conditions provided in XYMAX REIT’s Articles of Incorporation.
(Note 4) Asset management fee includes the portion of the fee for property acquisition included in the book value of individual
real estate (165,200 thousand yen).
(Note 5) Transaction terms and conditions are decided based on the actual market situation.

- 20 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
2nd fiscal period (from September 1, 2018 to February 28, 2019)
Percentage of Description of relationship

Capital stockor
Attribute

Name ofcompany, etc.

Location

investments

businessetc.

in capitalorheld by (in)(thousandoccupationyen)

Balance

Transaction

Description of voting rights,
Concurrent

Description ofholding of

Description of transaction

XYMAX REIT positions, etc. relationship(%)
by directors

at end ofamount(thousandAccount itemyen)

period(thousandyen)(Note 2)

(Note 2)

Executive
Director of
XYMAX REIT,

Executive Director ofand

XYMAX REIT, andRepresentative

Director

Nobuhito
Inatsuki-

Director and-President of
XYMAX
REAL ESTATE

Representative Director and-President ofAssetmanagement
fee

XYMAX REAL ESTATE(Note 3)INVESTMENT ADVISORS

Accounts
79,815payable -86,200other

Corporation

INVESTMENTADVISORS
Corporation(Note 1) The above discloses a related-party transaction which includes a material transaction, among related-party
transactions subject to disclosure.
(Note 2) Of the amounts above, transaction amount does not include consumption tax, etc., while balance at end of period
includes consumption tax, etc.
(Note 3) The amount of asset management fee is for transactions conducted by Nobuhito Inatsuki as representative of XYMAXREAL ESTATE INVESTMENT ADVISORS Corporation, and transaction amount is based on the terms and conditions
provided in XYMAX REIT’s Articles of Incorporation.
(Note 4) Transaction terms and conditions are decided based on the actual market situation.
[Notes on Segment Information, Etc.]
1. Segment information
Segment information is omitted, because XYMAX REIT has a single segment, which is the real estate leasing business.
2. Related information
1st fiscal period (from September 14, 2017 to August 31, 2018)(1) Information by product and service
Information by product and service is omitted, because operating revenue to external customers for a single
products and services category is in excess of 90% of operating revenue on the statement of income.
(2) Information by geographic area(i) Operating revenue
Information by geographic area of operating revenue is omitted, because operating revenue to externalcustomers in Japan is in excess of 90% of operating revenue on the statement of income.
(ii) Property, plant and equipment
Information by geographic area of property, plant and equipment is omitted, because the amount of property,
plant and equipment located in Japan is in excess of 90% of the amount of property, plant and equipment on
the balance sheet.
(3) Information by major customer(Unit: thousand yen)
Name of customer

Operating revenue

New Urban Life Holdings Inc.

Not disclosed (Note)XYMAX Corporation(Note)

Related segment
154,778

Real estate leasing business
Real estate leasing businessNot disclosed due to unavoidable circumstances in that consent for disclosure has not been obtained from the lessee.

- 21 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
2nd fiscal period (from September 1, 2018 to February 28, 2019)(1) Information by product and service
Information by product and service is omitted, because operating revenue to external customers for a single
products and services category is in excess of 90% of operating revenue on the statement of income.
(2) Information by geographic area(i) Operating revenue
Information by geographic area of operating revenue is omitted, because operating revenue to externalcustomers in Japan is in excess of 90% of operating revenue on the statement of income.
(ii) Property, plant and equipment
Information by geographic area of property, plant and equipment is omitted, because the amount of property,
plant and equipment located in Japan is in excess of 90% of the amount of property, plant and equipment on
the balance sheet.
(3) Information by major customer(Unit: thousand yen)
Name of customer

Operating revenue

New Urban Life Holdings Inc.

Not disclosed (Note)XYMAX Corporation(Note)

Related segment
Real estate leasing business

148,200

Real estate leasing businessNot disclosed due to unavoidable circumstances in that consent for disclosure has not been obtained from the lessee.

[Notes on Investment and Rental Properties]XYMAX REIT owns office, retail, hotel, and other properties for the purpose of earning revenue from leasing. The
carrying amount, amount of increase (decrease) during period and fair value of these investment and rental properties
are as follows:(Unit: thousand yen)
1st fiscal period
From: Sept. 14, 2017
To: Aug. 31, 2018

2nd fiscal period
From: Sept. 1, 2018
To: Feb. 28, 201933,521,850

33,497,562-

33,521,850

Carrying amount
Balance at beginning of period
Amount of increase (decrease) during period

33,521,850(24,288)

Balance at end of period

33,521,850

33,497,562

41,824,000

42,295,000

Fair value at end of period(Note 1)
(Note 2)Carrying amount is the amount of cost of acquisition, less accumulated depreciation.
Of the amount of increase (decrease) during period for 1st fiscal period, the amount of increase is mainly attributable to acquisitionof real estate trust beneficiary rights of 12 properties (33,603,535 thousand yen), while the amount of decrease is mainly
attributable to depreciation (123,830 thousand yen). Of the amount of increase (decrease) during period for 2nd fiscal period, theamount of increase is mainly attributable to capital expenditure (94,391 thousand yen), while the amount of decrease is mainly
attributable to depreciation (118,679 thousand yen).

(Note 3)

Fair value at end of period is the appraisal value by an outside real estate appraiser.

The income (loss) concerning investment and rental properties is presented in “Notes on the Statement of Income.”- 22 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
[Notes on Per Unit Information]
1st fiscal period
From: Sept. 14, 2017
To: Aug. 31, 2018

2nd fiscal period
From: Sept. 1, 2018
To: Feb. 28, 2019

Net assets per unit

103,710 yen

104,696 yen

Net income per unit

4,606 yen
(2,630 yen)

3,595 yen

(Note 1)

Net income per unit for 1st fiscal period is calculated by dividing net income by the period’s daily weighted average number ofinvestment units (126,587 units). And 2,630 yen is calculated using daily weighted average number of investment units of 221,695
units assuming February 16, 2018 as the 1st day of the period. In addition, diluted net income per unit is not stated, because there
are no diluted investment units.
Net income per unit for 2nd fiscal period is calculated by dividing net income by the period’s daily weighted average number ofinvestment units. In addition, diluted net income per unit is not stated, because there are no diluted investment units.

(Note 2)The basis for calculation of net income per unit is as follows:

1st fiscal period
From: Sept. 14, 2017
To: Aug. 31, 2018

2nd fiscal period
From: Sept. 1, 2018
To: Feb. 28, 2019

583,155

803,287

Amount not attributable to common unitholders (thousand yen)--

Net income attributable to common investment units (thousand yen)

583,155

803,287

Average number of investment units during period (units)

126,587

223,400

Net income (thousand yen)

[Notes on Significant Subsequent Events]
Not applicable.
[Omission of Disclosure]
Disclosure of notes on lease transactions, securities, retirement benefits and asset retirement obligations is omitted
since no substantial need for disclosure in the financial report is recognized.
(9) Changes in Total Number of Investment Units Issued and Outstanding
Changes in unitholders’ capital and the total number of investment units issued and outstanding from the incorporationof XYMAX REIT to the last day of the fiscal period under review are as follows:

Date

Description

Sept. 14, 2017
Feb. 14, 2018
Mar. 20, 2018

Total number of investment units
issued and outstanding(units)Increase
Balance(Decrease)

Unitholders’ capital(thousand yen)
Increase(Decrease)

Remarks

Balance

Incorporation throughprivate placement
Capital increase throughpublic offering

3,000

3,000

300,000

300,000(Note 1)

209,905

212,905

21,224,544

21,524,544(Note 2)

Third-party allotment

10,495

223,400

1,061,201

22,585,746(Note 3)(Note 1)
(Note 2)XYMAX REIT was incorporated with issuance of investment units at an issue price of 100,000 yen per unit.
New investment units were issued through public offering at an issue price of 105,000 yen (paid-in amount of 101,115 yen) per unit

(Note 3)for the purpose of procuring funds for acquisition of new properties.
New investment units were issued with SMBC Nikko Securities Inc. as allottee at a paid-in amount of 101,115 yen per unit.

4. Changes in Directors(1) Directors of the Investment Corporation
There were no changes in directors in the fiscal period.
(2) Directors of the Asset Management Company
There were no changes in directors in the fiscal period.
- 23 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019

5. Reference Information(1) Investment Status

Type of asset

Use

Geographic area
(Note 1)

1st fiscal period
As of Aug. 31, 2018
Total amount held(million yen)
(Note 2)

Tokyo central
5 wards
Tokyo 23
Officewards
Tokyo
economic area
Real estate inTokyo
Retailtrust
economic area
Cabinet orderHoteldesignatedcitiesCabinet order
Other designatedcitiesTotal real estate in trust
Deposits and other assets
Total assets(Note 1)

2nd fiscal period
As of Feb. 28, 2019As a percentage Total amount held(million yen)of total assets(Note 2)(%) (Note 3)

As a percentage
of total assets(%) (Note 3)

14,37638.7

14,402

39.2

1,162

3.1

1,160

3.2

2,627

7.1

2,618

7.1

8,112

21.8

8,124

22.1

4,431

11.9

4,399

12.0

2,810

7.6

2,791

7.6

33,521
3,628
37,150

90.2
9.8
100.0

33,4973,204
36,701

91.3
8.7
100.0

“Tokyo central 5 wards” refers to Tokyo’s Chiyoda Ward, Chuo Ward, Minato Ward, Shinjuku Ward and Shibuya Ward.
”Tokyo 23 wards” does not include “Tokyo central 5 wards.”“Tokyo economic area” refers to Tokyo excluding “Tokyo central 5 wards” and “Tokyo 23 wards”, Kanagawa Prefecture, Chiba Prefectureand Saitama Prefecture.

(Note 2)

“Total amount held” is based on the carrying amount (in the case of real estate in trust, the depreciated book value) as of the end ofeach fiscal period, rounded down to the nearest million yen. Furthermore, the total amount held for real estate in trust with hotel as
the use includes the book value of movables incidental to hotels.

(Note 3)“As a percentage of total assets” is rounded to one decimal place.

1st fiscal period
As of Aug. 31, 2018
Amount(million yen)
(Note 1)

2nd fiscal period
As of Feb. 28, 2019As a percentage of
total assets(%) (Note 2)

Amount(million yen)
(Note 1)

As a percentage of
total assets(%) (Note 2)

Total liabilities

13,981

37.6

13,312

36.3

Total net assets

23,16862.4

23,38963.7

Total assets

37,150100.0

36,701100.0(Note 1)

The total liabilities, total net assets and total assets amounts are based on the carrying amounts as of the book closing date, rounded(Note 2)

“As a percentage of total assets” is rounded to one decimal place.

down to the nearest million yen.

- 24 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019

RetailOfficeClassification(2) Investment Assets
I. Itemization of Real Estate and Other Assets in the Portfolio
The assets held by XYMAX REIT (real estate or trust beneficiary rights that have real estate as trust assets; hereinafter,
may be collectively referred to as the “portfolio assets”) as of February 28, 2019 are as follows:Book value
at end ofperiod(millionyen)Appraisal value(million yen)
(Note 4)

7.6

2,525

3,080

4,250

12.9

4,332

5,540

Feb. 16,
2018

5,020

15.2

5,066

6,520

Minato-ku,
TokyoFeb. 16,
2018

880

2.7

894

1,160

XYMAX
Higashi-Azabu Building

Minato-ku,
TokyoFeb. 16,
2018

1,550

4.7

1,584

2,100

OF-06

XYMAX
Higashi-Ueno Building

Taito-ku,Tokyo

Feb. 16,
2018

1,150

3.5

1,160

1,590

OF-07

XYMAX
Hachioji Building

Hachioji-shi,TokyoFeb. 16,
2018

2,600

7.9

2,618

3,570

Subtotal/Average--

17,95054.3

18,181

23,560RT-01

Muza Kawasaki

Kawasaki-shi,
Kanagawa

Feb. 16,
2018

4,100

12.4

4,112

5,210

RT-02

Life Kawasaki Miyuki Store

Kawasaki-shi,
Kanagawa

Feb. 16,
2018

790

2.4

799

975

RT-03

Vita Seiseki-Sakuragaoka

Tama-shi,Tokyo

Feb. 16,
2018

3,100

9.4

3,212

3,870

-

-

7,990

24.2

8,124

10,055-

Asset nameLocation

Acquisition
date

OF-01

XYMAX
Nishi-Shimbashi Building

Minato-ku,
TokyoFeb. 16,
2018

2,500

OF-02

XYMAX
Iwamotocho Building

Chiyoda-ku,
TokyoFeb. 16,
2018

OF-03

XYMAX
Shinjuku-Gyoen Building

Shinjuku-ku,
Tokyo

OF-04

XYMAX
Kamiyacho Building

OF-05

Subtotal/Average

Ownership
statusTrustbeneficiaryrightsTrustbeneficiaryrightsTrustbeneficiaryrightsTrustbeneficiaryrightsTrustbeneficiaryrightsTrustbeneficiaryrightsTrustbeneficiaryrightsTrustbeneficiaryrightsTrustbeneficiaryrightsTrustbeneficiaryrightsSendai-shi,
MiyagiFeb. 16,
2018

4,400

13.3

4,399

5,550

-

-

4,400

13.3

4,399

5,550

-

Fukuoka-shi,
FukuokaFeb. 16,
2018

2,700

8.2

2,791

3,130

Trust
beneficiaryrightsSubtotal/Average

-

-

2,700

8.2

2,791

3,130

-

Total/Average--

33,040100.033,49742,295-

Hotel Vista Sendai

Subtotal/Average
OT-01

Share ofportfolio(%)(Note 3)Trust
beneficiaryrights andmovablesincidental to
hotel

Hotel

HT-01

Other

Acquisition
price(millionyen)(Note 2)

Asset no.
(Note 1)

Renaissance 21 Chihaya(Note 1)

“Asset no.” is the code and number assigned to the portfolio assets of XYMAX REIT property by property according to each type of use. The
code “OF” represents office properties, “RT” represents retail properties, “HT” represents hotel properties and “OT” represents other properties.

(Note 2)“Acquisition price” is the amount (the amount of the sale and purchase price of real estate, etc. stated in the trust beneficiary right sale andpurchase contract for each portfolio asset) not including the various expenses required for the acquisition of the portfolio assets (brokerage
fees, property taxes, etc.), rounded down to the nearest million yen. The sale and purchase price does not include consumption tax and local
consumption tax.

(Note 3)

“Share of portfolio” is the acquisition price of the portfolio asset expressed as a percentage of the total acquisition price of the portfolio assets,rounded to one decimal place.

(Note 4)

Appraisal of each property is entrusted to Japan Real Estate Institute, The Tanizawa Sō gō Appraisal Co., Ltd. and Daiwa Real Estate Appraisal
Co., Ltd. “Appraisal value” is the appraisal value stated in each real estate appraisal report with February 28, 2019 as the date of value.

- 25 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
II.

Status of Leasing

Leased area(m2)
(Note 5)

Leasable area(m2)
(Note 6)

Occupancy
rate(%)(Note 7)105

1,897.75

1,897.75

100.0

141

175

4,071.72

4,152.30

98.1

6

161

225

4,792.13

4,792.13

100.0

Apr. 30,
1991

8

42

49

1,205.29

1,205.29

100.0

XYMAX
Higashi-Azabu Building

Nov. 30,
1999

5

58

87

2,016.00

2,016.00

100.0

OF-06

XYMAX
Higashi-Ueno Building

Apr. 9,
1999

8

43

62

1,735.34

1,735.34

100.0

OF-07

XYMAX
Hachioji Building

Jan. 26,
1993

23

129

156

5,375.25

5,556.03

96.7

RT-01

Muza Kawasaki

Jan. 7,
2004

17

158

225

3,703.87

3,703.87

100.0

RT-02

Life Kawasaki Miyuki Store

Jan. 13,
1997

1

Undisclosed(Note 8)

Undisclosed(Note 8)2,677.54

2,677.54

100.0

RT-03

Vita Seiseki-Sakuragaoka

Sept 17,
1999

1

Undisclosed(Note 8)

Undisclosed(Note 8)27,610.61

27,610.61

100.0

HT-01

Hotel Vista Sendai

Mar. 14,
2016

1

148

50

7,066.25

7,066.25

100.0

OT-01

Renaissance 21 Chihaya

Oct. 19,
2006

138

101

19

9,784.37

10,287.93

95.1

-

229

1,312

1,196

71,936.29

72,701.04

98.9

Construction Number ofdatetenants(Note 1)
(Note 2)

Operating revenue Security deposit /Guarantee
from leasing(million yen)(million yen)
(Note 3)(Note 4)

Asset no.

Asset name

OF-01

XYMAX
Nishi-Shimbashi Building

Aug. 22,
2000

8

78

OF-02

XYMAX
Iwamotocho Building

Mar. 22,
2001

13

OF-03

XYMAX
Shinjuku-Gyoen Building

Feb. 28,
2001

OF-04

XYMAX
Kamiyacho Building

OF-05

Total/Average(Note 1)

“Construction date” is the date of new construction of the main building stated in the real estate registry.

(Note 2)

“Number of tenants” is the total of the number of tenants (the number of end-tenants if a pass-through type master lease contract has beenconcluded) pertaining to the real estate in trust based on each lease contract concluded for each real estate in trust as of February 28, 2019.

(Note 3)

“Operating revenue from leasing” is the total amount of rent revenue, common area maintenance revenue, parking revenue and other revenue(including other lease business revenue) generated from portfolio real estate during the fiscal period, rounded down to the nearest specified(Note 4)unit.
“Security deposit / Guarantee” is each property’s total amount of security deposit and guarantee specified in all lease contracts pertaining to(Note 5)the real estate in trust concluded for each real estate in trust as of February 28, 2019, rounded down to the nearest specified unit.
“Leased area” is the total leased area based on the lease contract and the building drawing, etc. attached to the lease contract for each real

(Note 6)

estate in trust as of February 28, 2019.
“Leasable area” is the total leased area based on the lease contract and the building drawing, etc. attached to the lease contract for each real

(Note 7)

estate in trust as of February 28, 2019 and the area based on the building drawing, etc. of vacant spaces.
“Occupancy rate” is the ratio of leased area to leasable area for each real estate in trust as of February 28, 2019, rounded to one decimal place.

(Note 8)Not disclosed due to unavoidable circumstances in that consent for disclosure has not been obtained from the lessee.

- 26 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019III. Summary of Real Estate Appraisal Reports

Classification

Value based on income approach
Asset no.

Asset nameAppraiser(Note 2)

Appraisalvalue(million yen)Valuebased onCapitalization
directrate
capitalization(%)
methodOffice(million yen)

RetailTerminal
capitalization
rate
(%)

Discount
rate(%)(million yen)

OF-01

XYMAX
Nishi-Shimbashi Building

Tanizawa Sō gō
Appraisal

3,080

3,180

3.7

3,040

3.8

3.9

OF-02

XYMAX
Iwamotocho Building

Japan Real Estate

5,540

5,650

3.6

5,420

3.4

3.8

OF-03

XYMAX
Shinjuku-Gyoen Building

Japan Real Estate

6,520

6,650

3.6

6,380

3.4

3.6

OF-04

XYMAX
Kamiyacho Building

Tanizawa Sō gō
Appraisal

1,160

1,190

3.8

1,150

3.9

4.0

OF-05

XYMAX
Higashi-Azabu Building

Daiwa Real EstateAppraisal.

2,100

2,160

3.9

2,070

3.7

3.9

OF-06

XYMAX
Higashi-Ueno Building

Daiwa Real EstateAppraisal.

1,590

1,650

4.0

1,570

3.8

4.2

OF-07

XYMAX
Hachioji Building

Japan Real Estate

3,570

3,620

4.8

3,520

4.6

5.0

23,56024,100-23,150

-

-

5,210

5,270

4.1

5,190

4.2

4.3

975

988

4.2

969

4.0

4.4

3,870

3,790

5.0

3,910

5.1

5.2

10,055

10,048-10,069

-

-

5,550

5,640

4.6

5,510

4.7

4.8

5,550

5,640

-

5,510

-

-

3,130

3,200

5.0

3,100

5.1

5.2

Subtotal/Average

3,130

3,200

-

3,100

-

-

Total/Average

42,29542,988-41,829--Subtotal/Average
RT-01

Muza Kawasaki

Tanizawa Sō gō
Appraisal

RT-02

Life Kawasaki Miyuki Store

Daiwa Real EstateAppraisal.

RT-03

Vita Seiseki-Sakuragaoka

Tanizawa Sō gō
Appraisal

Subtotal/Average

Hotel

HT-01

Hotel Vista Sendai

Tanizawa Sō gō
Appraisal

Subtotal/Average

Other

Value
based onDCF
methodOT-01

Renaissance 21 Chihaya

Tanizawa Sō gō
Appraisal(Note 1)The date of value for the real estate appraisal reports is February 28, 2019.

(Note 2)

“Appraiser” is the name of the appraiser shortened as follows:
Japan Real Estate: Japan Real Estate InstituteTanizawa Sō gō Appraisal: The Tanizawa Sō gō Appraisal Co., Ltd.
Daiwa Real Estate Appraisal: Daiwa Real Estate Appraisal Co., Ltd.

- 27 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
IV. Summary of Engineering Reports and Seismic Risk Evaluation Reports
Engineering report

Seismic risk evaluation report

Asset no.

Asset name

Inspection
company(Note 1)

Inspection
date

Short-term
repair cost(thousand yen)
(Note 2)
(Note 3)

OF-01

XYMAX
Nishi-Shimbashi Building

Sompo Risk
Management Inc.

Nov. 30,
2017-

Tokio Marine &4,503 Nichido Risk
Nov. 2017
Consulting Co., Ltd.

6.1

OF-02

XYMAX
Iwamotocho Building

Tokio Marine &Nichido Risk
Consulting Co., Ltd.

Nov. 30,
2017-

Tokio Marine &12,297 Nichido Risk
Nov. 2017
Consulting Co., Ltd.

5.2

OF-03

XYMAX
Shinjuku-Gyoen Building

Tokio Marine &Nichido Risk
Consulting Co., Ltd.

Nov. 30,
2017-

Tokio Marine &10,665 Nichido Risk
Nov. 2017
Consulting Co., Ltd.

4.5

OF-04

XYMAX
Kamiyacho Building

Earth-Appraisal
Co., Ltd.

Nov. 30,
2017-

Tokio Marine &7,737 Nichido Risk
Nov. 2017
Consulting Co., Ltd.

3.8

OF-05

XYMAX
Higashi-Azabu Building

Earth-Appraisal
Co., Ltd.

Nov. 30,
2017-

Tokio Marine &4,282 Nichido Risk
Nov. 2017
Consulting Co., Ltd.

3.4

OF-06

XYMAX
Higashi-Ueno Building

Earth-Appraisal
Co., Ltd.

Nov. 30,
2017-

Tokio Marine &2,820 Nichido Risk
Nov. 2017
Consulting Co., Ltd.

5.1

OF-07

XYMAX
Hachioji Building

Sompo Risk
Management Inc.

Nov. 30,
2017-

Tokio Marine &13,742 Nichido Risk
Nov. 2017
Consulting Co., Ltd.

3.9

RT-01

Muza Kawasaki

Earth-Appraisal
Co., Ltd.

Nov. 30,
2017-

Tokio Marine &13,357 Nichido Risk
Nov. 2017
Consulting Co., Ltd.

1.2

RT-02

Life Kawasaki Miyuki Store

Daiwa Real EstateAppraisal Co., Ltd.

Nov. 30,
2017-

Tokio Marine &3,662 Nichido Risk
Nov. 2017
Consulting Co., Ltd.

7.0

RT-03

Vita Seiseki-Sakuragaoka

Daiwa Real EstateAppraisal Co., Ltd.

Nov. 30,
2017-

Tokio Marine &150,664 Nichido Risk
Nov. 2017
Consulting Co., Ltd.

2.1

HT-01

Hotel Vista Sendai

Daiwa Real EstateAppraisal Co., Ltd.

Nov. 30,
2017-

Tokio Marine &8,071 Nichido Risk
Nov. 2017
Consulting Co., Ltd.

1.7

OT-01

Renaissance 21 Chihaya

Tokio Marine &Nichido Risk
Consulting Co., Ltd.

Nov. 30,
2017-

Tokio Marine &13,916 Nichido Risk
Nov. 2017
Consulting Co., Ltd.

1.7-

245,716

2.1

Total

Long-term
repair cost(thousand yen)
(Note 2)
(Note 4)Inspection
company(Note 1)

Inspection PML value
date
(%)

Entire portfolio (Note 5)(Note 1)Company names in “Inspection company” are the names when the inspection was performed.

(Note 2)
(Note 3)

“Short-term repair cost” and “Long-term repair cost” are indicated based on the engineering report.
“Short-term repair cost” refers to the cost for repair or upgrading that has priority over daily maintenance and indicates the total amount of(Note 4)

estimates of repair costs deemed necessary within one year from the date of the engineering report.
“Long-term repair cost” refers to the cost for repair or upgrading to maintain functions and safe operations against the deterioration with age
and indicates the total amount of repair/upgrading costs deemed necessary within 12 years from the date of the engineering report, which isthe annual average calculated by the Asset Management Company, rounded to the nearest thousand yen. For Muza Kawasaki and Vita Seiseki-(Note 5)

Sakuragaoka, amounts corresponding to the ownership ratios (6.9% and 49.6% respectively, rounded down to one decimal place) are indicated.
“Entire portfolio” is a PML value for a group of the 12 portfolio assets, obtained in the same manner as for each property based on the seismic
risk evaluation (portfolio) report dated November 2017 prepared by Tokio Marine & Nichido Risk Consulting Co., Ltd.

- 28 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
V. Capital Expenditures(A) Schedule of Capital Expenditures
Of capital expenditures associated with renovation work, etc. currently planned for assets held by XYMAX REIT as ofthe end of the fiscal period under review, the following are the major estimated amounts. The estimated construction
costs below may include the portion separately booked as expenses in accounting.
Estimated construction costs(thousand yen)
Name ofreal estate, etc.

Location

PurposeVita SeisekiSakuragaoka

Tama-shi,
Tokyo

Work concerning
parking A

Scheduled period

TotalamountFrom: July 2019
To: July 2019

Amount ofpayment
duringperiod33,480-Total
amountalreadypaid-(B) Capital Expenditures during the Fiscal Period
The construction work, etc. falling under the category of capital expenditures conducted in the fiscal period underreview for assets held by XYMAX REIT as of the end of the fiscal period under review amounted to 94,391 thousand
yen. Combined with repair expenses booked as expenses in the fiscal period under review (36,351 thousand yen),construction work, etc. totaling 130,742 thousand yen was conducted. Construction work, etc. that fall under the
category of significant capital expenditure conducted in the fiscal period under review for assets held by XYMAXREIT are as follows.

Name ofreal estate, etc.
Vita SeisekiSakuragaoka

Location

PurposeConstruction period

Construction
costs(thousand yen)Tama-shi,
Tokyo

Work concerning
parking B(residential building)From: January 2019
To: January 201938,465- 29 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
VI. Property Overview and Earnings/Expenses of PropertiesXYMAX Nishi‐Shimbashi Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom September 1, 2018 to
February 28, 2019

Acquisition Price

2,500 million yen

Number ofoperating days

181 days

Type of Specified Asset

Trust beneficiary right(1) Operating expenses from real estate leasing

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

72,210Location (residential address)

2-6-2 Nishi-Shimbashi,
Tokyo

Minato-ku,

Other lease businessrevenue

6,114

2-10-16 Nishi-Shimbashi, Minato-ku,
Tokyo, and otherTotal operating revenue
from real estate leasing

78,324Lot Number

Land

Building Coverage Ratio

80%

Floor-Area Ratio

700%(2) Operating expenses from real estate leasing
Property taxes

Land Use District

Commercial district

Maintenance fee

5,285Site Area

402.53 m2

Utility expenses

5,540Type of ownership

Ownership

Repair expenses

766

Construction Date

August 22, 2000

Insurance premium

61

Structure/Number of Floors

Reinforced concrete structure with flat
roof 9F

Depreciation

2,569

Total Floor Area

2,517.50 m2

Other expenses related
to rent business

1,170

ArchitectRUI SEKKEISHITSU Co., Ltd.

Total operating expenses
from real estate leasing

15,393

Builder

Fujiki Komuten Co., Ltd.

(3) NOI

65,500Type of Ownership

Ownership(4) Operating income (loss)
from real estate leasing

62,930

Building

ML Company-

PM Company

XYMAX ALPHA Corporation-

Notes:
There is a 2-meter setback from the center line of the road on the south side of the property. However, the site area includes the setback
portion (33.96 m2).

- 30 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
XYMAX Iwamotocho Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom September 1, 2018 to
February 28, 2019

Acquisition Price

4,250 million yen

Number ofoperating days

181 days

Type of Specified Asset

Trust beneficiary right(1) Operating expenses from real estate leasing

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

124,378

2-3-3 Iwamotocho, Chiyoda-ku, Tokyo

Other lease businessrevenue

17,249Total operating revenue
from real estate leasing

141,627

Location (residential address)

Land

Building

Lot Number

2-175-2
Tokyo

Iwamotocho,

Chiyoda-ku,

Building Coverage Ratio

80%

Floor-Area Ratio

800%、600%

Property taxes

Land Use District

Commercial district

Maintenance fee

10,304Site Area

864.83 m2

Utility expenses

10,331

Type of ownership

Ownership

Repair expenses

5,976(2) Operating expenses from real estate leasing-

Construction Date

March 22, 2001

Insurance premium

Structure/Number of Floors

Steel-framed reinforced concrete
structure with flat roof B1F/9F

Depreciation

9,766

Total Floor Area

6,261.06 m2

Other expenses related
to rent business

1,389

Architect

Nikken Sekkei Ltd.

Total operating expenses
from real estate leasing

37,987

Builder

Kumagai-Sumitomo
Consortium

Type of Ownership

Ownership

Construction

ML Company

Godo Kaisha ML2

PM Company

XYMAX ALPHA Corporation

Notes:
None- 31 -

218(3) NOI

113,407(4) Operating income (loss)
from real estate leasing

103,640

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
XYMAX Shinjuku‐Gyoen Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom September 1, 2018 to
February 28, 2019

Acquisition Price

5,020 million yen

Number ofoperating days

181 days

Type of Specified Asset

Trust beneficiary right(1) Operating expenses from real estate leasing

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

149,523

1-1-11 Shinjuku, Shinjuku-ku, Tokyo

Other lease businessrevenue

12,421

Lot Number

1-1-7 Shinjuku, Shinjuku-ku, and otherTotal operating revenue
from real estate leasing

161,945

Building Coverage Ratio

80%

Floor-Area Ratio

700%

Property taxes

Land Use District

Commercial district

Maintenance fee

10,728Site Area

839.09 m2

Utility expenses

10,905

Type of ownership

Ownership

Repair expenses

3,234

Construction Date

February 28, 2001

Insurance premium

Structure/Number of Floors

Steel-framed reinforced concrete
structure with flat roof B1F/9F

Depreciation

Total Floor Area

6,084.32 m2

Architect

U Associates Co., Ltd.

Builder

Kajima-Oriental Construction
Consortium

Type of Ownership

Ownership

Location (residential address)

Land

Building(2) Operating expenses from real estate leasing

ML Company

Godo Kaisha ML2

PM Company

XYMAX ALPHA Corporation

Notes:
None- 32 -

-

210
9,893

Other expenses related
to rent business524

Total operating expenses
from real estate leasing

35,496(3) NOI

136,343(4) Operating income (loss)
from real estate leasing

126,449

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
XYMAX Kamiyacho Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom September 1, 2018 to
February 28, 2019

Acquisition Price

880 million yen

Number ofoperating days

181 days

Type of Specified Asset

Trust beneficiary right(1) Operating expenses from real estate leasing

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

32,731

5-12-13 Toranomon, Minato-ku, Tokyo

Other lease businessrevenue

9,996

Lot Number

5-13-1 Toranomon, Minato-ku, Tokyo,
and other

Total operating revenue
from real estate leasing

42,727

Building Coverage Ratio

80%

Floor-Area Ratio

600%

Property taxes

Land Use District

Commercial district

Maintenance fee

4,471

Site Area

228.83m2

Utility expenses

2,626

Type of ownership

Ownership

Repair expenses

758

Construction Date

April 30, 1991

Insurance premium

46

Structure/Number of Floors

Steel-construction with flat roof 8F

Depreciation

1,258

Total Floor Area

1,356.51m2

Other expenses related
to rent business

9,797

Architect

HASEKO Corporation

Total operating expenses
from real estate leasing

18,958

Builder

HASEKO Corporation(3) NOI

25,028

Ownership(4) Operating income (loss)
from real estate leasing

23,769Location (residential address)

Land

Building

Type of Ownership(2) Operating expenses from real estate leasing

ML Company

XYMAX ALPHA Corporation

PM Company

XYMAX ALPHA Corporation

Notes:
None- 33 -

0

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
XYMAX Higashi‐Azabu Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom September 1, 2018 to
February 28, 2019

Acquisition Price

1,550 million yen

Number ofoperating days

181 days

Type of Specified Asset

Trust beneficiary right(1) Operating expenses from real estate leasing

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

51,668Location (residential address)

1-5-2 Higashi-Azabu, Minato-ku, Tokyo

Other lease businessrevenue

6,928

Total operating revenue
from real estate leasing

58,596

Lot NumberLand

1-5-11
Tokyo

Higashi-Azabu,

Minato-ku,

Building Coverage Ratio

80%

Floor-Area Ratio

600%(2) Operating expenses from real estate leasing
Property taxes

Land Use District

Commercial district

Maintenance fee

6,161

Site Area

365.05 m2

Utility expenses

3,741

Type of ownership

Ownership

Repair expenses

1,242

0

Construction Date

November 30, 1999

Insurance premium

Structure/Number of Floors

Steel-framed reinforced concrete
structure with flat roof B1F/9F

Depreciation

3,679

Total Floor Area

2,570.13 m2

Other expenses related
to rent business

1,180

ArchitectTokyo Branch of TOZAI KENCHIKUSERVICE CO., LTD.

Total operating expenses
from real estate leasing

16,088

Builder

Kanto Branch of Maeda Corporation(3) NOI

46,188

Ownership(4) Operating income (loss)
from real estate leasing

42,508

Building

Type of Ownership
ML Company

XYMAX ALPHA Corporation

PM Company

XYMAX ALPHA Corporation

Notes:
None- 34 -

81

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
XYMAX Higashi‐Ueno Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom September 1, 2018 to
February 28, 2019

Acquisition Price

1,150 million yen

Number ofoperating days

181 days

Type of Specified Asset

Trust beneficiary right(1) Operating expenses from real estate leasing

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

37,586

Location (residential address)

1-11-4 Higashi-Ueno, Taito-ku, Tokyo

Other lease businessrevenue

6,282

1-22-9 Higashi-Ueno, Taito-ku, Tokyo,
and other

Total operating revenue
from real estate leasing

43,869Lot Number

Land

Building Coverage Ratio

80%

Floor-Area Ratio

600%、500%(2) Operating expenses from real estate leasing
Property taxes

Land Use District

Commercial district

Maintenance fee

4,235

Site Area

368.84 m2

Utility expenses

3,750

Type of ownership

Ownership

Repair expenses

1,040

Construction Date

April 9, 1999

Structure/Number of Floors

Steel-framed reinforced
structure with flat roof 8F

Total Floor Area

1,942.54 m2

Architect

Architect 5 Partnership

BuilderTokyo Branch of Kajima Corporation(3) NOI

33,967

Ownership(4) Operating income (loss)
from real estate leasing

31,630Insurance premium
concrete

Building

Type of Ownership
ML Company

XYMAX ALPHA Corporation

PM Company

XYMAX ALPHA Corporation

Notes:
None(Note) The site area includes a portion of private road burden (48.62 m2).

- 35 -

Depreciation

0

59
2,336

Other expenses related
to rent business816

Total operating expenses
from real estate leasing

12,239XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
XYMAX Hachioji Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom September 1, 2018 to
February 28, 2019

Acquisition Price

2,600 million yen

Number ofoperating days

181 days

Type of Specified Asset

Trust beneficiary right(1) Operating expenses from real estate leasing

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

Lease business revenue

109,854

Location (residential address)

25-6
Yokoyamacho,
Tokyo

Hachioji-shi,

Other lease businessrevenue

19,6723-2 Yokoyamacho, Hachioji-shi, Tokyo,
and other

Total operating revenue
from real estate leasing

129,527

Lot Number

Land

Building Coverage Ratio

80%

Floor-Area Ratio

600%

Property taxes

Land Use District

Commercial district

Maintenance fee

15,600Site Area

1,220.58 m2

Utility expenses

9,289

Ownership

Repair expenses

5,341

Type of ownership

Building(2) Operating expenses from real estate leasing

Insurance premium

0272

Construction Date

January 26, 1993

Structure/Number of Floors

Steel-framed reinforced
Steel-construction with
B1F/9F

Total Floor Area

7,404.81 m2

Architect

NIHON SEKKEI Inc.

Builder

MATSUMURA-GUMI Corporation(3) NOI

96,443

Ownership(4) Operating income (loss)
from real estate leasing

87,267

Type of Ownership
ML Company

Godo Kaisha ML1

PM Company

XYMAX ALPHA Corporation

Notes:
None- 36 -

concrete/flat roof

Depreciation

9,175

Other expenses related
to rent business

2,580

Total operating expenses
from real estate leasing

42,259XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
Muza Kawasaki

Category

RetailOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom September 1, 2018 to
February 28, 2019

Acquisition Price

4,100 million yen

Number ofoperating days

181 days

Type of Specified Asset

Trust beneficiary right(1) Operating expenses from real estate leasing

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

138,827

Location (residential address)

1310 Omiyacho, Saiwai-ku, Kawasakishi, Kanagawa

Other lease businessrevenue

20,1621310 Omiyacho, Saiwai-ku, Kawasakishi, Kanagawa

Total operating revenue
from real estate leasing

158,990

Lot Number

Land

Building

Building Coverage Ratio

80%

Floor-Area Ratio

600%、400%(2) Operating expenses from real estate leasing
Property taxes

Land Use District

Commercial district

Maintenance fee

14,5664Site Area

742.44 m2

Utility expenses

14,732Type of ownership

Co-ownership interest in ownershipright (ratio of right of site: 6.9%)

Repair expenses

4,153

Construction Date

January 7, 2004

Insurance premium
Depreciation

Structure/Number of Floors

Steel-framed/Steel-framed reinforced
concrete
structurewithflatroof/stainless steel plate roofing
B2F/27F

Total Floor Area

3,671.09 m2

Architect

Kanagawa Area Branch of Urban
Development Corporation

Builder

Shimizu-Taisei-Ando
Consortium

Type of Ownership

Sectional ownership

Construction

ML Company

XYMAX ALPHA Corporation

PM Company

XYMAX ALPHA Corporation

Notes:
None- 37 -

188
15,953

Other expenses related
to rent business

780

Total operating expenses
from real estate leasing

50,379(3) NOI

124,563(4) Operating income (loss)
from real estate leasing

108,610

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
Life Kawasaki Miyuki Store

Category

RetailOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom September 1, 2018 to
February 28, 2019

Acquisition Price

790 million yen

Number ofoperating days

181 days

Type of Specified Asset

Trust beneficiary right(1) Operating expenses from real estate leasing

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

Lease business revenue

Undisclosed

Location (residential address)

4-93 Komukai-nishimachi, Saiwai-ku,
Kawasaki-shi, Kanagawa

Other lease businessrevenue

Undisclosed

4-93 Komukai-nishimachi, Saiwai-ku,
Kawasaki-shi, Kanagawa, and otherTotal operating revenue
from real estate leasing

Undisclosed

Lot Number

Land

Building

Building Coverage Ratio

80%、60%Floor-Area Ratio

200%

Property taxes

Undisclosed

Land Use District

Neighborhood commercial district,
category 1 residential districts

Maintenance fee

Undisclosed

Site Area

1,879.15 m2

Utility expenses

Undisclosed

Type of ownership

Ownership

Repair expenses

Undisclosed

Construction Date

January 13, 1997

Insurance premium

Undisclosed

Structure/Number of Floors

Steel-construction with flat roof 2F

Depreciation

Total Floor Area

2,596.80 m2

Other expenses related
to rent business

Undisclosed

ArchitectTokyo First-class Architect Office,Takenaka Corporation

Total operating expenses
from real estate leasing

Undisclosed

Builder

Yokohama Branch
Corporation

Type of Ownership

Ownership(2) Operating expenses from real estate leasingof

ML Company-

PM Company

XYMAX ALPHA Corporation

Takenaka

1,502(3) NOI

26,017(4) Operating income (loss)
from real estate leasing

24,515

Notes:
Under the lease contract with the tenant, in the case the lessor intends to transfer the ownership right of the property to a third party
through sale, etc., the lessor is to notify such to the lessee in advance to allow the lessee to preferentially discuss acquisition if the lessee
wishes.

- 38 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
Vita Seiseki‐Sakuragaoka

Category

RetailOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom September 1, 2018 to
February 28, 2019

Acquisition Price

3,100 million yen

Number ofoperating days

181 days

Type of Specified Asset

Trust beneficiary right(1) Operating expenses from real estate leasing

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

Location (residential address)
Lot Number

Land

Building

Lease business revenue

Undisclosed

4-72 Sekido, Tama-shi, Tokyo

Other lease businessrevenue

Undisclosed

4-72 Sekido, Tama-shi, Tokyo

Total operating revenue
from real estate leasing

Undisclosed

Building Coverage Ratio

80%

Floor-Area Ratio

500%(2) Operating expenses from real estate leasing
Property taxes

Undisclosed

Land Use District

Commercial

Maintenance fee

Undisclosed

Site Area

4,467.51 m2

Utility expenses

Undisclosed

Type of ownership

Co-ownership interest in ownershipright (ratio of right of site: 49.6%)

Repair expenses

Undisclosed

Construction Date

September 17, 1999

Insurance premium

Undisclosed

Depreciation

Structure/Number of Floors

Steel-framed reinforced concrete
structure/reinforced
concrete
structure/steel-construction with flat
roof B3F/27F

Total Floor Area

27,161.00 m2

ArchitectTokyo Branch First-Class Architect
Office Corporation, Housing and Urban
Development Corporation

Builder

Toda-Tokyu-ICHIKEN
Consortium

Type of Ownership

Sectional ownership (however, forhouse numbers 72-3 and 72-7, coownershipinterestof
937,995/1,000,000
and591,485/1,000,000, respectively)

Construction

ML Company-

PM Company

XYMAX ALPHA Corporation

11,545

Other expenses related
to rent business

Undisclosed

Total operating expenses
from real estate leasing

Undisclosed(3) NOI

208,109(4) Operating income (loss)
from real estate leasing

196,563

Notes:As to the part of the building (house numbers 72-3 and 72-7), an agreement on the following matters has been concluded with the co-ownersof the sections.
· Non-division covenant for five years from the conclusion date (renewed automatically unless any one of the co-owners claims not to renew
at least six months prior to the expiration date)· When transferring or dispositioning by other means the co-ownership interest, the party must notify other co-owners (hereinafter, the“Counterparties”) of such at least one month prior to the transfer or disposition in writing. The Counterparties shall have the preferential
negotiation right to purchase the said co-ownership interest within 20 business days after the notice, and such purchase shall be effective after
two months of a written notice stating exercise of right-to-purchase (hereinafter, the “Notice of Exercising Right-to-Purchase”) reaching theparty wishing to transfer the co-ownership interest. In such a case, the price shall be the value on an as-is basis, and if the parties do not reachan agreement on the price, the price shall be the real estate appraisal value as of the date of the Notice of Exercising Right-to-Purchase delivered
to the party wishing to transfer the co-ownership interest.

- 39 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
Hotel Vista Sendai

Category

Hotel

Overview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom September 1, 2018 to
February 28, 2019

Acquisition Price

4,400 million yen

Number ofoperating days

181 days

Type of Specified Asset

Trust beneficiary rights and movables
property incidental to hotel

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

Lease business revenue

Location (residential address)

1-7-3 Tsutsujigaoka,
Sendai-shi, Miyagi

Miyagino-ku,

Other lease businessrevenue-

1-7-2 Tsutsujigaoka, Miyagino-ku,
Sendai-shi, Miyagi, and otherTotal operating revenue
from real estate leasing

148,200

Lot Number

Land

Building(1) Operating expenses from real estate leasing
148,200

Building Coverage Ratio

80%

Floor-Area Ratio

500%

Property taxes

Land Use District

Commercial district

Maintenance fee

1,800Site Area

1,461.36 m2

Utility expenses-

Type of ownership

Ownership (partial surface right)

Repair expenses

Construction Date

March 14, 2016

Insurance premium

Structure/Number of Floors

Steel-construction with flat roof 12F

Depreciation

32,016

Total Floor Area

6,977.47 m2

Other expenses related
to rent business

4,865

ArchitectFirst-class Architect Office, AA and
SUN Associates INC.

Total operating expenses
from real estate leasing

38,895

Builder

Tohoku Branch of Maeda Corporation(3) NOI

141,321Type of Ownership

Ownership(4) Operating income (loss)
from real estate leasing

109,304

ML Company

XYMAX Corporation

PM Company

XYMAX Corporation(2) Operating expenses from real estate leasing-

212

Notes:
Sendai City has sectional surface rights to part of the land (lot number 7-18) aimed at the ownership of facilities required for high-speed
railway business. No ground rent arises under this surface right.
Under the lease contract with the tenant, the lessor shall not sell the property to other hotel operators or their affiliate companies.
(Note) The site area includes 524.21 m2 of surface right.

- 40 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2019
Renaissance 21 Chihaya

Category

Other (residential)

Overview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom September 1, 2018 to
February 28, 2019

Acquisition Price

2,700 million yen

Number ofoperating days

181 days

Type of Specified Asset

Trust beneficiary right(1) Operating expenses from real estate leasing

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

Lease business revenue

96,640Location (residential address)

5-4-25 Chihaya, Higashi-ku, Fukuokashi, Fukuoka

Other lease businessrevenue

5,212

5-2332 Chihaya, Higashi-ku, Fukuokashi, Fukuoka, and otherTotal operating revenue
from real estate leasing

101,852

Lot Number

Land

Building

Building Coverage Ratio

80%

Floor-Area Ratio

400%(2) Operating expenses from real estate leasing
Property taxes

Land Use District

Commercial district

Maintenance fee

7,682

Site Area

2,644.63 m2

Utility expenses

1,624

Type of ownership

Ownership

Repair expenses

6,358

Insurance premiumConstruction Date

October 19, 2006

Structure/Number of Floors

Steel-framed reinforced
structure with flat roof 14F

Total Floor Area

10,856.15 m2

Architect

Tei Architectural Design Office

Builder

KyushuBranchofConstruction Co., Ltd.

Type of Ownership

Ownershipconcrete

Nishimatsu

ML Company

Miyoshi Asset Management Co., Ltd.

PM Company

Miyoshi Asset Management Co., Ltd.

Notes:
None- 41 -

4291

Depreciation

18,979Other expenses related
to rent business

5,645

Total operating expenses
from real estate leasing

40,585(3) NOI

80,246(4) Operating income (loss)
from real estate leasing

61,266