Presentation Materials
for the 6th Fiscal Period Ended February 2021

Securities Code: 3488

Basic Principles and Characteristics of XYMAX REITXYMAX REIT accurately assesses the value of individual properties to maximize unitholder value. We fully utilize ourstrength in Management, Assessment, and Sourcing based on the knowledge and know-how of the XYMAX Group, which
has Japan’s No.1 track record in property management.
Contents
I.

Overview of the Financial Results& Investment Management Report

II. Earnings Forecasts and the Growth Strategy

III. ESG

Appendix

3

10

31

36

Terms

Definition

Estimated value atthe end of period

Indicates the acquisition value appraised by the appraisers or the research
price based on the Articles of Incorporation of XYMAX REIT and the“Ordinance on Accountings of Investment Corporations” (Ministry of
Finance Ordinance No. 47 of 2006, as amended) with the last day of thecurrent fiscal period as the research dateUnrealized gain

Estimated value of real estate, etc. at the end of period – book value atthe end of period

LTV based on total
assetsBalance of interest-bearing liabilities / total assets

Appraisal LTV

Balance of interest-bearing liabilities / (total assets + unrealized gain)

Net asset per unit

(Net asset-total distribution)/ total number of investment units issued andoutstanding

NAV per unit

(Net asset + unrealized gain-total distribution) / total number ofinvestment units issued and outstanding

Acquisition price

The sales price of each trust beneficiary right indicated in the trust
beneficiary rights sales agreement, and does not include consumption
taxes, local consumption taxes and brokerage fees, etc.

Notes
 Unless otherwise specified, amounts are rounded to the nearest unit and ratios arerounded off to the first decimal place.
 The following abbreviations of property names are used.
XYMAX Nishi-Shimbashi Building : Nishi-Shimbashi

XYMAX Iwamotocho Building : Iwamotocho

XYMAX Shinjuku-Gyoen Building : Shinjuku-Gyoen

XYMAX Kamiyacho Building

XYMAX Higashi-Azabu Building

XYMAX Higashi-Ueno Building : Higashi-Ueno: Higashi-Azabu: Kamiyacho

XYMAX Hachioji Building: Hachioji

Muza Kawasaki: MuzaLife Kawasaki Miyuki Store: Kawasaki Miyuki

Vita Seiseki-Sakuragaoka: Seiseki-Sakuragaoka

Life Fukuizumi Store: Fukuizumi

Hotel Vista Sendai: Sendai

Renaissance 21 Chihaya: Chihaya2Overview of the Financial Results &Investment Management ReportOverview of the Financial Results & Investment Management ReportManagement Highlights
As the impact of COVID-19 continues, we managed our property portfolio depending on the situation of each asset andtenant.

┃Portfolio management highlights┃
Impact of COVID-19
Responses to requests forlower rents

Requests for cancellation oflease agreements

Office Due to the state of emergency being declared, the leasing period was longer thanusual.
 Responded to rent reduction requests, considering individual and specificconditions of each tenants Succeeded in revising rents upward with certain tenants

2/70 tenants

0/70 tenants

Retail As rent is fixed under lease agreements with retail tenants, there has been no
decrease in rents due to their lower revenues.
 Multitenant retail property (Muza) sales to tenants have recovered to 83%,
compared with the same period in the last year.

1/21 tenants

0/21 tenants

Hotel In response to requests for lower rent or waivers from hotel operators, we
temporarily agreed to a complete GOP-linked variable rent structure.

1/1 tenants―

Others(Residential) The year-end occupancy rate was 99.0% (+2.3% compared with the previous FP)
 Achieved an increase in the price of residential property leases through tenant
replacement and raised some rents for retail spaces

0/139 tenants―

External growth
Financial strategy

 Acquired Life Fukuizumi Store at the beginning of the 6th FP
 A New bank was approached at the time of refinancing, and average term was
extended and fixed-rate ratio was increased (see page 7).

4Overview of the Financial Results & Investment Management Report

Overview of Financial Results (1)Operating revenue was 1,293 million yen, down 0.5% from the latest forecast; profit was 650 million yen, up 3.0%.
Unit: million yen

Forecast
for the 6th FP(A)

Operatingrevenue

1,300

Operatingexpenses

602

OperatingincomeOrdinary income

Net income
Distribution perunit (yen)* Days of 6th FP: 181 days

698
631
630
2,822

Actual results
for the 6th FP
(B)

1,293
576
716
651
650
2,911

Difference(B)-(A)

-7
-25
18
19
19
89

Main factors for difference(+: Incremental factors, – : Decremental
factors)

Convertto DPU

Operating revenue
Temporary reduction of-5.8 million yen
office rent lower rents+3.1 million yen
Unrealized3/24;主なポイント以外のbudgeted stress-12 yenDecrease inhotel rent
箇所を着手下さい。(内容的-3.1 million yen-14 yencompared with forecast

な変更はありませんが。)

Decrease in utility revenues
compared to the forecast-2.2 million yen-10 yenDecrease in restoration costs
compared to the forecast＋6.2 million
yen＋27 yenDecrease in utility costs
compared to the forecast+7.7 million
yen＋34 yen

Unrealized budgetedleasing costs+13.5 million
yen＋60 yenOperating Expenses

Non-operating income and expenses
Decrease in interest
expenses compared to theforecast＋1.1 millionyen＋4 yen5Overview of the Financial Results & Investment Management Report

Overview of the Financial Results (2) — Occupancy rates by Asset Type┃Portfolio┃┃Financial Status┃

Asset size

13 properties
34,105 million yen

Interest-bearing liabilities
at the end of period

Estimated value at theend of period

44,416 million yen

LTV based on total assets

9,900 million yen

Net asset per unit

101,100 yen

5.7%

NAV per unit

145,417 yen

Unrealized gain

(Unrealized gain ratio 28.7%)

NOI yield*

12,780 million yen
34.0%(Appraisal LTV 26.9%)* NOI yield: annualized actual NOI for the 6th FP ÷ total acquisition price┃Occupancy Rates by Asset Type┃
100%

(%)

100%
100
98%
98

100%
99.1%

99.3%
99.2%

99.0%

96%
96

98.8%

98.9%

100%

100% 100% 100%

99.6%

100%

99.2%

99.5% 99.5%

98.8%

98.7%

98.9%

Entire portfolio
99.0%

98.9%
96.5%

94.3%

Office(exc. retail spaces andobligated residences)

Retail, Hotel

94%
94

92.7%

92%
92
90%
90

Office

97.0%
96.7%

95.1%

100%

91.0%

As of the end of 1st FP

Others(Residential)

As of the end of 2nd FP As of the end of 3rd FP As of the end of 4th FP As of the end of 5th FP As of the end of 6th FP

6

Overview of the Financial Results & Investment Management Report

Financial Status as of the End of the 6th FP
XYMAX REIT establishes a financial base that puts emphasis on stability and soundness and provides flexibility in financing.

┃Borrowing status┃
Constructing a wide range of and stable lender formation mainly with mega banks
and local banks that have a financial and business relationship with sponsors
Remaining borrowing capability up to 50% of LTV based on total assets:
Approx. 12.0 billion yen
Balance ofinterest-bearing debts

12.78 billion yen

Average remaining period

Average interest rate

2 years 5 months

0.598%┃Lender formation┃

Number offinancial
institutions

13 companies
Borrowing amount

12.78

Fixed interest rate ratio

Long-term loan ratio

LTV based on total assets

89.0%

96.1%

34.0%

billion yen

Diversifying maturity dates through refinancing
4,250

3,000
2,000
1,000
0

18.4%

MUFG Bank

13.3%

Nishi-Nippon CB

7.8%

Fukuoka Bank

7.8%

Resona Bank

7.0%

Shinsei Bank

4.5%

Hiroshima Bank

3.9%

Aozora Bank

3.9%

Higo Bank

3.1%

Chiba Bank

2.3%

Fukoku-life

2.3%

Changes in indices through the 6th FP
refinancing
Beginning of
6th FP

End of 6th FP

Balance ofinterest-bearing debts

12.78 billion
yen

12.78 billion
yen

Average remaining
period

1yr6mos

2yrs5mosFixed interest rate
ratio

79.1%

89.0%

Long-term loan ratio

85.0%

96.1%

5,000
4,000

24.7%

SMBC

Mizuho Trust & Banking 0.8%

┃Maturity ladder┃(million yen)Mizuho Bank

3,588

3,426
2,796
1,920
1,050

End of 6th FP End of 7th FP End of 8th FP End of 9th FP End of 10th FP End of 11th FP End of 12th FP End of 13th FP End of 14th FP End of 15th FP End of 16th FP(FP ended(FP ending(FP ending(FP ending(FP ending(FP ending(FP ending(FP ending(FP ending(FP ending(FP ending
February 2021) August 2021) February 2022) August 2022) February 2023) August 2023) February 2024) August 2024) February 2025) August 2025) February 2026)

7

Overview of the Financial Results & Investment Management Report

Actual results of rent increase through tenant replacements and contract renewals
We have achieved a 10,840,000 yen increase in monthly revenue through 6th FP tenant replacements and contract
renewal upward rent revisions.
・Seven office properties (exc. obligated residences) and Muza
┃Status of tenant replacement┃(tsubo)

500
400

(%)

Rent increased

248.49 tsubo

200
100
0

348.38 tsubo

350.97 tsubo

300

50

Percentage of change*3

218.64tsubo

144.66Highlights for the 6th FP

30✔1 new lease at Hachioji
Lease started with no downtime while
maintained appraisal unit rent level20

169.50 tsubo

61.85 tsubo

40

318.53

tsubo

tsubo

97.59 tsubo

97.59
tsubo

25.94 tsubo

100

1st FP

2nd FP

3rd FP

4th FP

5th FP

6th FP

Ave. of 6 FPs% of replacementswith higher rent *1

17.6%

88.0%

85.3%

91.4%

100.0%

0.0%

67.8%

Surrender rate*2

4.2%

3.5%

2.0%

4.3%

2.3%

2.0%

2.6%

┃Status of contract renewal┃・Seven office properties (exc. obligated residences) and Muza(tsubo)

2,000
1,600
1,200
800
400
0
-400

% of renewals withhigher rent *4Rent increased

Percentage
of change*3
1,271.69 tsubo

716.54 tsubo

747.501,945.54 tsubo
1,277.48 tsubo

1,408.96
tsubo

tsubo

16

1,433.01 tsubo

468.62 tsubo

tsubo

12
8

1,107.074
231.58 tsubo+4,047,113 yen (+29.6%)

Highlights for the 6th FP✔Rent reduced at 1 space (short-term
contract for a Muza restaurant)✔Renewal with higher rent (3 spaces)
Of the 7 spaces (548.33 tsubo) with rent gaps of
10% or more versus appraised unit rent at the endof the 5th FP, 3 of these (231.58 tsubo) completed
renewals with higher rent.

0-4

1st FP

2nd FP

3rd FP

4th FP

5th FP

6th FP

Ave. of 6 FPs

0%

58.8%

72.4%

36.7%

57.2%

16.2%

46.5%

*1 % of replacements with higher rent: area with higher rent replacement of seven office properties (exc. obligated residences) and Muza ÷ total replaced

area of each property*2 Surrender rate: surrendered area of seven office properties (exc. obligated residences) and Muza for each FP ÷ total leasable area of each property*3 % of rent increase: (monthly unit rent that includes CAM revenue after tenant replacement or after renewal – monthly unit rent that includes CAM

revenue before tenant replacement or before renewal) ÷ monthly unit rent that includes CAM revenue before tenant replacement or before renewal*4 % of renewals with higher rent: renewed area with higher rent of seven office properties (exc. obligated residences) and Muza ÷ total renewed area of

each property(%)

1,887.28 tsubo

Accumulated track record
through 6th FP/month

Cumulative rent increase throughreplacement/contract renewal
until 6th FP

Accumulated track record
through 6th FP/month+6,798,254 yen (+10.7%)
Approx. ＋10,840,000
yen/month(14.0% increase from beginning of 1st FP)

8

Overview of the Financial Results & Investment Management Report

Trends in the Rent Gaps and Future Contract Renewal
As a result of continuous rent increase, the rent gap vs. appraisal rent has been absorbed.

┃Trend in rent gap for the six office properties*¹┃(exc. retail spaces and obligated residences)

1. Assumed new unit rent: Assumed unit rent for new lease contracts not for lease renewals, according to XYMAX’s own market analysis, etc.
2. Appraisal unit rent:

Unit rent adopted in ongoing regular appraisals(yen) ■Contracted unit rent

20,00015,000■Appraisal unit rent

■Assumed new unit rent

Rent gap vs. Assumed new unit rent

Rent gap vs. Appraisal unit rent(%)

18,177 yen

15%

16,277 yen

-6.1%

-7.7%

10,0005,000

18,192 yen
18,009 yen

As of the end of 1st FP

As of the end of 2nd FP

-4.5%

-4.1%

-15.7%-14.9%

As of the end of 3rd FP

0.6%
-6.6%

As of the end of 4th FP

As of the end of 5th FP

0.9%
-0.1%

0%
-15%

As of the end of 6th FP-30%┃Floor area scheduled for contract renewal at the six office properties*¹┃Total leasable area of the six office properties: 4,485.88 tsubo(tsubo)1,600(exc. retail spaces and obligated residences)

1,483.58(15 spaces)■Spaces without rent gap in both 1 and 2, below■1. Spaces have rent gap only vs. assumed new unit rent

1,400
1,200
1,000

■2. Spaces have rent gap vs. appraisal unit rent
Spaces have 10% or more rent gap vs. appraisal unit rent

764.43(6 spaces)

649.39(10 spaces)
95.84 (2 spaces)

800

95.84

600
400
200
0

623.31(2 spaces)

425.06(9(5 spaces)
spaces)(7 spaces)
144.66 (2 spaces)

211.97 (2 spaces)

7th FP

8th FP

68.43(1 space)

186.83(3 spaces)

356.63138.91 (2 spaces)(4 spaces)

9th FP

553.55 (8 spaces)
47.92(1 spaces)*1 Collective term for Nishi-Shimbashi, Iwamotocho, Shinjuku-Gyoen, Kamiyacho, Higashi-Azabu and Higashi-Ueno*2 The various unit rents: using a monthly unit rent that includes common area maintenance revenue, to which is applied a weighted average in proportion to the leased floor area

166.32 (3 spaces)

10th FP
9

Earnings Forecasts andthe Growth Strategy

Earnings Forecasts and the Growth Strategy

Understanding of the Current Situation and Key Point for the Future
Understanding of the Current Situation
 Due to the influence of COVID-19, companies have begun to findnew office strategies, and there are changes in the way offices arebeing used. However, there is still demand for having a head officein the city center.

Office In particular, large companies have accelerated making workstylereforms in response to increased awareness of BCP as well as
employee health and safety. In addition, a demand for suburban
satellite offices has become apparent.
 The role of a head office building as a “place of gathering” has notchanged from pre- to post-COVID-19. Buildings with good locations
and high-quality building management will continue to maintainhigh competitiveness.

Retail Although varying by industry and business size, generally, suburban
and daily-use facilities are generating strong sales.

 Civil rehabilitation (bankruptcy protection) proceedings of the hotel
operator began.

Hotel

External
GrowthFinancial
Strategy While guestroom sales (occupancy rates) are moving toward
recovery, the situation is not promising, as COVID-19 infections areagain on the rise.

 Intensified competition for properties continues in the buying/sellingmarket.
 No major changes in financial institutions’ attitude toward loans

Key Point for the Future Leverage the sponsor group’s network to identify trends in themarket at an early stage, determine the market value of individual
assets, and maintain an uncompromising perspective on rents
 CF downtime tends to be longer than before. However, we will
attract good tenants by taking advantage of superior qualities, suchas good locations and the high quality of building management.
 Reduce the risk of existing tenants leaving through carefulmanagement, including reinforcing relationships with tenants andinfection countermeasures While almost all tenants have fixed rent contracts, we closely
monitor sales trends to grasp the business circumstances of eachtenant.
 Closely monitor the tenant’s civil rehabilitation proceedings (alreadyconfirmed the tenant’s intention of continuing based on the current
lease contract)
 Closely monitor trends for room sales (occupancy), while also
practicing effective cost management
 Maintain a certain level of yields, accurately determine the potentialof properties, and build property “pipelines”
 Continue strategic use of remaining borrowing capacity, against the
backdrop of a low LTV level (34.0% as of the end of 6th FP)
 Continue to cooperate with sponsor groups and deepen lender
relationships

11Earnings Forecasts and the Growth Strategy

Assumptions for Earnings for the 7th FP and 8th FP
Uncertainty about the long-term trend of office leasing market and hotel operating performance due to the impact of
COVID-19, we have prepared budget for the 7th and 8th FP incorporating certain level of reduced revenue.

Property
management
related

Office[7th FP] Assumed occupancy rate: 94.7% compared with 97.0% at the end of the 6th FP[8th FP] Assumed occupancy rate: 93.5%(Reference) Lowest annual average occupancy rate of 95.9% after the Global Financial Crisis (FY
2010, see page 21)

RetailBased on the terms of the respective lease contracts, we do not anticipate any major changes
in the 7th and 8th FPs.

Hotel

[7th FP] Variable Rent completely linked to GOP
Forecasted with an estimated RevPAR of 5,132 yen during the period, and a GOP ofapprox. 37% vs. the same period in 2019[8th FP] Combination of fixed and variable rent, but budgeted only fixed rent

OthersCorporate
management
relatedDue to a steady tenant replacement results, no significant changes are expected.



SG&A (sales, general, and administrative expenses)
Posting general unitholders’ meeting related expenses in the 7th FP

Non-operating expenses
Posting the expenses related to the refinancing of 3.5 billion yen at the end of January 2022 (during the 8th FP).
12

Earnings Forecasts and the Growth Strategy

Earnings Forecast for the 7th FP ending August 2021
Unit: million yen

Actual results
for the 6th FP(A)

Initial forecast
for the 7th FP

Forecast forthe 7th FP(B)

Main factors for differences in the
result for the 6th FP and forecasts
for the 7th FP

Difference(B)-(A)

Operatingrevenue

1,293

1,304

1,291

-1

Operatingexpenses

576

613

614

37

Operatingincome

716

691

676

-39

Ordinary
incomeNet income
Distribution
per unit(yen)(+: Incremental factors,–: Decremental factors)

Convertto DPU

Operating revenue
Decrease in office rents-11.5 million yen-51 yenRealize lump sum income+16.7 million yen+74 yenNormalization in
restoration costs-6.2 million yen-27 yenIncrease leasing costs-23.9 million yen-107 yen

Start posting taxes andpublic dues for Fukuizumi-3.8 million yen-17 yenRealized related expenses
for general unitholders’meeting-2.6 million yen-11 yenOperating expenses

651
650
2,911

638
637
2,854

623
622
2,788

-27
-27
-123

Non-operating revenues and expenses

Days

181

184

184

3

Absence of borrowing
related expenses+16.6 million yen+74 yen13

Earnings Forecasts and the Growth Strategy

Earnings Forecast for the 8th FP ending February 2022
Unit: million yen

Forecast forthe 7th FP(A)Operatingrevenue
Operatingexpenses

Forecast for
the 8th FP(B)

Difference(B)-(A)(+: Incremental factors, – : Decremental factors)

1,291
614

1,321
615

29
0

676

706

29

Ordinary
income

623

641

17

Distribution
per unit
(yen)
Days

Convert to
DPU

Operating revenue

OperatingincomeNet income

Main factors for differences in the result forthe 7th FP and forecasts for the 8th FP

622
2,788
184

640
2,867
181

17
79
-3

Decrease in office rents-8.3 million yen-37 yenIncrease in hotel rents(reinstate of fixed rents)+56.9 million yen+254 yen

Absence of lump sum income-17.6 million yen-78yen-8.1 million yen-36 yen+15.4 million yen+69 yenIncrease in depreciation-4.9 million yen-22 yenAbsence of expenses related to generalunitholders’ meeting+2.6 million yen+11 yenOperating expenses
Increase in utility costs comparedwith the previous FP
Normalization in leasing costs

Non-operating revenues and expenses
Incurred loan-related costs-12.3 million yen-55 yen14

Earnings Forecasts and the Growth Strategy

Background of Hotel Vista Sendai┃Details of lease agreement negotiations for Hotel Vista Sendai┃

September, 2020

Against the backdrop of the "evaporation" of demand for accommodations due to COVID-19, we received arequest from the operator to reduce the rent.

Due to ongoing rent reduction negotiations, it was difficult to reasonably estimate post-negotiation

conditions.
Because the NOI of Sendai constitutes more than 10% of the total NOI of XYMAX REIT’s portfolio, the outcome
Disclosure ofof the negotiations will materially affect our performance.
Financial results for → Announced earnings forecasts that incorporated the risk of reduced revenue from Sendai to the maximum
the 5th FP
extent (6th FP DPU 2,688 yen)
October, 2020

January, 2021
Announcement ofrevised earnings
forecast

Agreed with the operator to change the rent conditions (see next page for details)
An earnings forecast was announced, assuming rent conditions after the change (6th FP DPU 2,822 yen).
On March 11, the operator petitioned the Tokyo District Court to begin civil rehabilitation (bankruptcy
protection) proceedings. The decision to begin these proceedings was made on March 18.

March, 2021

Already received the operator’s intention of continuing the lease agreement for Sendai→ Formulate earnings forecasts under the assumption that the terms of the agreement agreed upon in
January 2021 would continue

15

Earnings Forecasts and the Growth Strategy

Revising the rent structure of Hotel Vista Sendai┃Concept behind the revised conditions┃By August 2021, a complete variable rent system linked to monthly GOP will be adopted, taking into consideration the impact of COVID-19.
From September 2021, fixed rent will be reinstated, and if a GOP exceeds certain amount, variable rent can be received.
From September 2022, the fixed rent will be raised by 0.5 million yen/month, and by this, the reduced rent during the period corresponding to thecomplete variable rent system will be collected.

┃Revised lease conditions┃

Demand foraccommodation

Rent type

Fixed rent

Variable rent－－

240 million yen/year(Annual GOP – 252 million yen) × α%

I-1

None

GOP for the current month × β%None

GOP for the current month × γ%

Before revisionNov. 2020 - Feb. 2021

Slump
periodMar. 2021 - Aug. 2021

After
revision

Sep. 2021 - Aug. 2022

Recovery
periodAfter Sep. 2022

Stableperiod

I-2

Revival of
fixed rentII

20 million yen/monthIII

20.5 million yen/month

(GOP for the current month – 21 million
yen) × α%
Recovering the
portion of
reductions or
waivers over thelong term(GOP for the past 1 year /12 – 21.5 million yen) × α%
*0 yen, if the GOP for the month is negative<Rent graph>
6th FP

7th FP

2020
Sep.

8th FP

9th FP

2021
Oct.

Before revision

Nov.

Dec.

Jan.

Rent typeI-1

10th FP

2022
Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Oct.

Nov.

Dec.

Jan.

Feb.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Oct.

Nov.

Dec.

Jan.

Nov.

Dec.

Jan.

Dec.

Jan.

Feb.

Rent typeI-2

To mitigate seasonal changes, GOP, the basis forcalculating variable rent, was used as the moving
average of past 12 months.

2023

Sep.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Rent type II

Jan.

Nov.

Dec.

Jan.

Feb.

Rent type III

Nov.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

16

Earnings Forecasts and the Growth Strategy

Actual Results of Hotel Vista Sendai(yen)

10,000(%)

Occupancy rate
ADR
RevPAR

State ofemergency
declaration

8,488

8,000

6,000

7,382

7,213

7,455

7,351

GoTo Travel Campaign

7,090

GoTo Travel Campaign(after Tokyo added for
departures and arrivals)

7,044
6,004

6,233

6,207

5,751

5,384

3,608

3,322

3,388

0

20
20%

1,481
678
72.5%

85.0%

44.6%

9.2%

583
8.2%

24.7%

38.7%

58.1%

66.0%

75.8%

71.8%

65.3%

36.2%

52.3%
Feb.

2020
Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

2021
Jan.

RevPARcompared withsame month ofthe previous FP

-2.0%

-4.8%

-54.8%-92.0%-92.9%-81.3%-69.6%-62.1%-49.1%-34.5%-36.1%-42.6%-61.1%-53.0%

Index*

100.0

149.3

24.4

-65.5

-59.5

-21.9

10.1

48.0

64.8

110.7

102.4

74.2

-20.3

27.0

Compared withsame month ofthe previous FP

-9.5%

-8.8%

-86.4%-129.9% -128.1% -111.0%-95.1%-82.2%-69.3%-47.4%-53.5%-52.8%-120.3%-81.9%

GOP

40
40%

2,083

2,414
2,000

60
60%

4,203

4,199
4,000

6,473

6,441
5,339

100
100%

80
80%

7,494

6,359

5,352

State ofemergency
declaration

00%*Calculated using the January 2020 GOP as 100

17Earnings Forecasts and the Growth Strategy

Direction of the post-COVID-19 office demands (1)After experiencing living with COVID-19, remote work’s benefits and disadvantages became more evident. Under these circumstances, there isa greater appreciation of offices being a “place of gathering” for people and functions, which solves communication and other issues.
Looking at the attendance rate after COVID-19, the percentage of companies aiming for working in the office is 50% (the highest). Even whencompared with large-sized companies, the percentage of small and medium-sized companies aiming for 100% attendance is also high.
┃Targeted rate of workforce for in-office work after the
COVID-19 crisis has subsided (by company size)┃┃The significance of an office as a “place of gathering” is becoming
evident due to issues with remote working┃

Small-sized companies (Less than 100 employees) (n=432)30%
30

Issues and concerns for remote working (multiple replies, n=1,005)
0

10

20

30

40

* Excluding companies where number of
employees is unknown

(%)

50

コミュニケーションが難しい
Difficulties
with communications

60

70

(%)

60.1%

Difficulties with management (business operations,
マネジメント（業務、勤怠、評価等）が難しい
attendance, evaluation, etc.)

53.3%

19.9%

20%
20
10%
10

5.3%

5.3%

5.1%

8.6%

8.3%
3.9%

3.7%

1.4%

0%
0

17.6%

従業員の生産性・業務効率の低下
Decline in employee productivity
and business efficiency

42.5%

Medium-sized companies (100 to 999 employees) (n=323)

Insufficient paperless support

40.7%

30%
30

40.6%

20%
20

5.6%

10.0%
5.3%

(%)

Sense of inequality between those who can work remotely
職種等によりテレワークできる人とできない人の不公…
and those who cannot, due to job types and other factors
Ineffective digitization of approvals and other work processes(hanko seals)

37.8%

Measuresfor the expenses incurred by employees (utilities,
従業員が負担するコスト（光熱費・通信費、什器）の…
communications, furniture and fixtures)
Difficulty
Difficultysetting
settingan
anoptimal
optimalremoteremoteworking
workingrate
rateforforeveryevery
department anddepartment
job type and job type

27.4%

10.9%

Heavy burden of costs required to provide ICT equipment, etc.

None

10%
10
0%
0

7.4%
0.6%

0.6%

2.5%

3.4%

8.7%

3.3%
6.5%

10.8%

13.9%

5.2%

7.1%

4.6%

24.0%

Large-sized companies (1,000 or more employees) (n=212)

23.4%

30%
30

28.8%

20%
20

14.6%

10%
10
0%
0

13.9%
8.4%

4.6%

(%)

Inadequate network environment

Other

20.4%

0.5%

1.4%

2.8%

5.7%

7.1%

10.4%
6.1%

5.7%

4.7%

Source: Awareness Survey of the Tokyo Metropolitan Area on Workstyles and Workplaces: January 2021 by XYMAX Real Estate Institute＊Based on a survey distributed to companies registered to use the ZXY satellite office service in the Tokyo Metropolitan area (Tokyo, Kanagawa, Saitama, and Chiba) and XYMAX INFONISTA client companies (1,005 valid responses)
The survey period was January 27, 2021 to February 5, 2021.

18

Earnings Forecasts and the Growth Strategy

Direction of the post-COVID-19 office demands (2)Throughout the past to present, there will be robust tenant demand within the range of 10,000 to 20,000 yen in general.
XYMAX REIT believes that there is a clear correlation between convenient locations (the time required to walk to the nearest station) and theoccupancy rate.

┃Distribution of contracts concluded in the 23 Wards ofTokyo (by unit price of contracted rent)┃
(%)
20
18
16
14
12
8
6
4
2
0

Large segments ofcontracts concludedin the market

Jan. - Mar.2010
Number of cases: 1,287
Number of targeted
properties: 1,031┃Vacancy rate by time required to walk to the nearest
station in the 23 wards of Tokyo┃(%)

14.00%All locations (combined)

12.00%

Within a 3-miunte walk to the nearest station
3–5 minute walk to the nearest station
More than a 5-minute walk from the nearest station

10.00%

(%)
20
18
16
14
12
8
6
4
2
0

Apr. - Jun. 2012
Number of cases: 593
Number of targeted
properties: 568

8.00%

6.00%

(%)
20
18
16
14
12
8
6
4
2
0

Oct. – Dec. 2020
Number of cases: 622
Number of targeted
properties: 577

4.00%

2.00%

0.00%
Unit rent (yen/tsubo)■■ Oct. - Dec. 2019■■ Oct. - Dec. 2020

Source: Created by XYMAX Real Estate Institute upon therequest of Asset Management Company

Source: Created by XYMAX Real Estate Institute upon the request of Asset Management Company

The important factors for tenants, regardless of pre- or post-COVID-19 period, when selecting an office as a “placeof gathering” are the rent burden, a location, and traffic convenience.

19

Earnings Forecasts and the Growth Strategy

Office Market Analysis (by office scale)
The scarcity of small‐ and medium‐scale office buildings will improve in the future, when considering the current limited supply trend.
XYMAX REIT believes that the volatility of rent for small‐ and medium‐scale office buildings is relatively lower than that oflarge‐scale buildings and is highly stable revenues.
┃ Office Stock Pyramid 2021 covering the 23 Wards (net rentable area)┃┃New contracted rent by office building scale┃
Rent Index (100＝2010 Q1)

23 Wards of Tokyo: 13.00 million tsubo, 9,318 buildings,
average building age: 32.3 years

Small‐ and medium‐scale officebuildings (Gross floor area: 300‐5,000 tsubo)
Whole: 6.05 million tsubo, 8,563 buildings,
33.0 years on average

200

Large‐scale office buildings

70(Gross floor area: 5,000 tsubo or more)
Whole: 6.95 million tsubo,755 buildings, 24.3 years on average

65
60

Small‐and medium‐scale office buildings
中⼩規模ビル（延床5000坪未満）(total floor area: less than 5,000 tsubo)
⼤規模ビル（延床5000坪以上）
Large‐scale
office buildings(total floor area: 5,000 tsubo or more)

190

180

Q1: Jan. ‐ Mar.
Q2: Apr. ‐ Jun.
Q3: Jul. ‐ Sep.
Q4: Oct. ‐ Dec.

160

122

140
55

120

50
45

Building age (years)

Old seismic standard:
1.48 million tsubo (25%)

40

20 years or older:
5.02 million tsubo, (83%)

35
30
25
20
15

Less than 20 years:
1.03 million tsubo, (17%)

Old seismic standard:
1.12 million tsubo,
(16%)

80
76
60

Less than 20 years:

3.43 million tsubo, (49%)

5
0
50
500

40
400

30
300

20
200

10
100

0

10
100

20
200

30
300

40
400

120

79

100

20 years or older:3.52 million tsubo, (51%)

10

146

50
500

2019
Q4

2020
Q1

2020
Q2

2020
Q3

2020
Q4

Small‐ and medium‐scale
office buildings (total floorarea: less than 5,000 tsubo)

129

139

129

134

122

Large‐scale office buildings(total floor area: 5,000
tsubo or more)

127

132

124

120

120

Rentable area (thousand tsubo).
Source: Survey Report by XYMAX Real Estate Institute Corp.
“[23 Wards of Tokyo] Office Stock Pyramid 2021”

Source: Survey Report by XYMAX Real Estate Institute Corp.
“Office Market Report Tokyo Q4 2020”20

Earnings Forecasts and the Growth Strategy

Office Properties Advantages in Post-COVID-19┃Advantages of our office assets┃
Office demands has been changing due to how the pandemic has worsened the economic environment and changed theway offices are used. However, we believe that the offices owned by XYMAX REIT, which have certain strengths in “goodlocation” and “high quality management”, have an advantage.
The fact that our offices maintained high occupancy rates in comparison with other J-REIT offices following the Global
Financial Crisis is evidence of this advantage.

 Good location

3–5 minute walk to the nearest station that is easy to access, suitable for consolidation of head
office functions as a “place of gathering”, etc.

 High quality ofmanagement

Providing a safe and secure office environment through meticulous management based on PM
know-how and flexible responses to diversifying tenant demands.

 Potential for Suburban
Satellite Offices

Respond to the expanding satellite office needs in the suburbs to eliminate the gap between offices andhomes (Tokyo Metropolitan Area Offices/Hachioji).

┃Average Occupancy Rate of office┃
100%
98%
96%

Lowest annual average occupancy rate
FY 2010 95.9%

98.7%
97.6%
97.7%

97.7%

96.4%

96.4%

96.7%

96.8%

96.6%

96.5%

96.4%

97.4%
97.2%

97.8%
97.8%

94.3%

92%

99.7%

99.0%

99.2%

2018/04

2019/04

98.6%

98.9%
98.4%

IPO

94.3%
92.4%

The Global
Financial Crisis

99.2%

98.6%

95.3%

94%

90%

95.9%

98.9%

93.2%
Average occupancy rate of XYMAX REIT seven office properties *1
Average occupancy rate of J-REIT office properties *2

88%
2006/04

2007/04

2008/04

2009/04

2010/04*1 Average occupancy rate of the seven office properties in each FP.

*2 Average occupancy rate of the J-REITs for office properties in each FP.

2011/04

2012/04

2013/04

2014/04

2015/04

2016/04

2017/04

2020/0421

Earnings Forecasts and the Growth Strategy

Tenant Characteristics
The diversity of asset types and tenants is shown below. There is little deviation in the industries of the tenants
occupying the office buildings owned by XYMAX REIT. In addition, the top tenants in terms of leased area have displayeda high level of tendency to stay on, as their lease period is longer than the average.
┃ Portfolio diversification < based on rent revenue > (as of the end of 6th FP)┃

Number of properties: 13 buildings/Number of tenant: 231)

OfficeHotel

RetailMulti-tenant

Single-tenant

50.95%

12.47%

22.83%

7 buildings (70 tenants)

1 building (18 tenants)

5.11%

Others(residential)

8.63%

3 buildings (3 tenants) 1 building 1 building(1 tenant)(139 tenants)┃Office tenant diversification <based on rent revenue> (excluding obligated residences, 60 office tenants)┃

Based on business type

Leased floorarea
6,042.95 tsubo

Leased area based top tenants ratio
Wholesale

36.54%

Merchandise

22.06%

IT

13.95%

Others9.34%

Medical and Welfare

4.38%

Lawyers and Accountants

3.51%

Real estate business

3.33%

Retail3.16%

Construction business

2.74%

Restaurants

0.98%

14.84%

Top 10

3.42%

11st - 30th
31st - 50th
51st - 60th

49.58%
32.16%

Average tenant lease period of
offices owned by XYMAX REIT
All tenants:

11 years, 8 months
Top ten tenants by leased area:
16 years, 7 months

Average tenant lease period
of office buildings
9.6 years** Source: “Analysis of Lease Periods of Office Tenants in the 23 Wards ofTokyo (2018)” by XYMAX Real Estate Institute22

Earnings Forecasts and the Growth Strategy

Office Operations and Infectious Control in Post-COVID-19
We take countermeasures to make offices safer and more secure through concerted management and operating know-how.

┃Rating of safety and security of office┃In the survey on issues and concerns for office operation, conducted with 1,005 companies in the Tokyo metropolitan area, “How to prepare a safe and secure officeenvironment” was the greatest concern (33.8%). This indicated to us the increasing significance of “safety and security” as one of the criteria for post-COVID-19 office selection.
0%
0

5

5%

10

10%
15

2015%

25

20%
30

25%
35

40

30%

35%

33.8%

How to prepare a safe and secure office environment

31.1%

How to achieve the optimal layout for an office

29.9%

The difficulty of setting rules for employees who are required to come to work

15.0%

We are not sure how to set up BCP measures

9.5%

We want to adopt and promote open plan offices, but don’t know the best way to use them

6.3%

We want to reduce office space, but don’t know how

6.0%

We want to monitor attendance, but it is difficult/don’t know how
Other

40%(%)

Source: Awareness Survey of the Tokyo Metropolitan Area on Workstyles andWorkplaces: January 2021 by XYMAX Real Estate Institute

3.8%
26.8%

None

┃Office operation to prevent the spread of COVID-19┃ ┃Lineup of proposals for offices co-existing with COVID-19 ┃ Application of virus disinfectants in all seven office properties• Measures to prevent infections fromcontacts within the whole space• Providing an environment where people
can work with a sense of security

 Introducing alcohol-based
disinfectants and foot pedal stands incommon areas
 Replacing conventional toilet faucets
with automatic faucets
 Suspending use of toilet air-jet hand Dryers
 Thoroughly implementing COVID-19
countermeasures among the management andcleaning staff (wearing face masks, washing hands, disinfecting, gargling, etc.)

Property managers gathered the issues related to COVID-19
countermeasures at managed sites of the sponsor group, and madeproposals to building owners.
Examples of proposals
•
•
•
•
•
•

Alcohol disinfectant stands
Social-distancing stickers
Antivirus wallpapers
Antibacterial filters
Acrylic screensVirus disinfectant coating, etc.

23Earnings Forecasts and the Growth Strategy

Impact of COVID-19 on the Retail Market
While sales in the restaurant industry have declined sharply due to the impact of COVID-19, changes in other industries
have been small, and the impact has been limited.
Consumer behavior and values have changed. Suburban properties are expected to perform well.

For the following items, a large percentage replied, “I agree”
and “I agree somewhat.” “The increasing trend of stay-at-home consumption will continue” (85%)
 “Remote work (telecommuting, etc.) will continue to grow” (83%)
 “Shopping in suburban stores (outside of cities) will increase” (65%)

小

8%

45%

40%

3%

43%

40%

9%

65%

9% 4%

56%

30%

7%

54%

31%

4%

73%

8%

53%

33%

53%

19%
3%

37%

■Willing to open only inprime properties

7%■Not willing to open,
in principle

34%■No reply

51%

38%

45%

10%

4% 2% 1%

11%

4%1% 1%

Demand for drive-through stores will increase

24%

44%

21%

8%

Consumers of live commerce will increase

25%

40%

26%

5% 2% 1%

Shopping in suburban stores (outside of cities)
will increase14%

Use of public transportation for shopping will decrease
Use of shared offices at retail properties/stores will
increase
The number of people moving to rural areas will increase
The number of customers who value COVID-19
countermeasures (for example, information on crowding) morethan product lineup or prices will increase

Consumer needs have changed, and retail properties in thesuburbs are expected to remain robust.

33%

業

The increasing trend of stay-at-homeconsumption will continue
Remote work (telecommuting, etc.) willcontinue to grow

38%

53%

業

■Actively open more store (locations) toincrease the number

2. Changes in consumer behavior and values

55%

サAt the same time, changes in other industries, including theretail (food) and entertainment industries have been small,and the impact on the retail sector in general has been
limited.

before（n=123） 7%
with/after（n=123） 6%
13%
before（n=237）
with/after（n=237） 8%
22%
before（n=54）
Restaurant
industry
with/after（n=54） 7%
before（n=26） 12%
Entertainment
industry
with/after（n=26）
Servicebefore（n=75） 11%
industry
with/after（n=75） 3%
娯楽 飲食

Willingness of businesses in the restaurant industry to open
new locations:“Proactively willing to open” decreased (from 22% to 7%)“Not willing to open, in principle” increased threefold(from 9% to 30%)

Retail(food)
industry
Retail(nonfood)industry

小1. Willingness to open new stores (by industry/business type)

Actions by consumers who are motivated by SDGs will
increase

51%

21%

44%

14%

40%

8%
12%

40%

8%

27%

Consumption associated with domestic travel will increase

8%

26%

Overconcentration in Tokyo will continue

2% 5%

33%

25%

8%

2% 1%

24%

10%

1% 1%

31%

43%

2% 1%

12%

2% 1%

32%

11%

4% 1%

31%

14%

3% 1%

39%

18%

36%

23%
41%

■I agree ■I agree somewhat ■I neither agree nor disagree ■I disagree somewhat

7%

1%

6%

1%

18%

1%

■I disagree ■No reply

From “Survey on Store Strategies under the COVID-19 Pandemic 2020” by XYMAX Real Estate Institute Corporation

24

Earnings Forecasts and the Growth Strategy

Portfolio Status: Retail Properties of XYMAX REIT
The impact of COVID-19 has been minimal, and we have been enjoying stable rent revenue.

 All retail properties owned by XYMAX REIT are located in the suburbs of large metropolitan areas, where robust business conditions are
expected for tenants.
 Most of the master lease properties are facilities or properties with steady sales, such as supermarkets.
 Although the tenants of multitenant retail property (Muza) include restaurant tenants, sales are on a trend toward recovery.
 Purpose-visit type tenants at Muza, which account for 30% of total rents, have captured the needs of the surrounding residential area.

┃Properties of XYMAX REIT┃

Business Type of multitenant retail properties＜Based on rent revenue＞

Construction business 2.6%

School&Education

Master leaseproperties

Multi-tenant
property
35.3%

8.1%

Medical andWelfare10.9%

Retail26.2%

Service

64.7%

11.8%
Financial andInsurance

17.2%

Restaurants

23.2%■Restaurant tenants at Muza
Many of these restaurants are for families livingin the neighborhood.
The average sales for restaurants from Sep.
2020 to Feb. 2021 have recovered to roughly
76% of same period of the previous year(including restaurants that closed temporarily).

Breakdown of properties by type (Based on rent revenue)

Trends for tenants of retail properties

Deferment of rent payment: 1 tenant
Rent for the deferment period has been collected
Rent reduction: 1 tenant
Offered lower rent on a short-term lease, in response to a request from an individual
restaurant owner
Bankrupt tenants, cancellations of lease agreements, delayed rent payments: None25

Earnings Forecasts and the Growth Strategy

External Growth (1) – Key Points by Asset Type –XYMAX REIT believes that quantity and quality of tenant demand are key factors to assess the profitability of real estate.
XYMAX REIT aims for portfolio growth by comprehensively assessing the factors below by asset type.

OfficeRetailHotel

Focus on properties with strong
attractiveness to tenants

Focus on stability of tenant
rent or property price

Focus on hotels specializing in“lodging” near transportation hubs✔

Properties located in the 8 central✔

Properties where revenue offacilities is available for analysis✔

Hotels specialized in stay whose
revenue trends can be analyzed based on
the operational know-how of the sponsor✔

Properties with a unit rent of 10,000
yen to 20,000 yen✔

Properties where rent burden on
tenants is available for analysis✔

excellent access to transportation✔

Properties located within an approximate
5-minute walk from the nearest station✔

Properties where sales price islower than the market price✔

number of overseas visitors is
expected to increase

wards of Tokyo, Central
Nagoya, Central Osaka andCentral Fukuoka

Properties located in areas offering
hubs

Properties located in areas where the

80% or more of the portfolio consists of office, retail, and hotel properties
26

Earnings Forecasts and the Growth Strategy

External Growth (2) – Status of Acquisition Studies –XYMAX REIT will continue to focus by asset type and consider acquisition of properties in accordance with the portfolio strategy.
We will continue our sourcing activities to determine the fundamental value of the target properties, with an awareness of the balance
between DPU growth and financial soundness.

┃Acquisition policy ┃┃Borrowing capacity by LTV level┃

 Maintain a price lines firmly with an awareness of the balance between DPU
growth and financial soundness
 Maximize use of the XYMAX Group strengths of assessment and sourcing
 Assume the investment that is made after assessing the inherent profitability ofthe property
 Flexible acquisition through borrowings can also be selected, depends on
investment unit price trends, due to our low LTV level

LTV level vs. total assets as of the end of the 6th FP: 34.0%
LTV levelvs. total assets

Possible loan amount

Appraisal LTV

40%

Approx.
3.7 billion yen

32.3%

45%

Approx.
7.5 billion yen

36.9%

50%

Approx.
12.0 billion yen

41.7%┃Properties under consideration┃
Location
5 central wards of Tokyo

Asset type
OfficeSourceFocused point

Property managementbusiness relation

There is a rent gap between the current rent and market rent for some tenants, therefore,
internal growth is expected at the time of lease contract renewals and tenant replacements
Promote the replacement with higher rents by converting the spaces surrendered bytenants into tailored offices

New

23 wards of Tokyo

OfficeCRE client

There is a rent gap between the current rent and market rent for some tenants, therefore,
internal growth is expected at the time of lease contract renewals and tenant replacements
This property is located in residential areas, where a broad range of tenant needs are
expected

Local ordinance-designated City

OfficeProperty managementbusiness relation

A rare new office building in the city where the property is located and occupied by a highly
credit-worthy tenant as the anchor tenantCore regional cityHotel(specialized in stay)Private fund managed by thesponsor group

Located in a regional economic hub and also with a high level of tourism resources, there issolid demand for accommodation

23 wards of Tokyo

Others(Corporate dormitory)(100% leased to a single tenant)

CRE client

A stable long-term lease contract has been concluded with a highly credit-worthy tenant,for which a certain revenue is expected

New

27

Earnings Forecasts and the Growth Strategy

Changes in the Asset Management Fee Structure
To create a system that contributes to improving unitholders' profits, we decided to make changes in the asset
management fee structure from the 7th FP (FP ending August, 2021).

┃Details of Changes in the Asset Management Fee Structure┃ The ratio of the investment performance-linked portion of management fee during the period will be increased
 Total management fees during the period will be maintained at the same levels as before
 Regarding disposition fees, the system will be changed to a contingent fee so that fees are earned only when gains on disposition are
generated

1. Summary of the structure of management fee during the period
Rules according to the Articles of Incorporation
Total assetlinked
portionInvestment
performance-linkedportionTotal asset-linked
fee

Total assets at the end of the previous period x 1% perannum (maximum)

NOI-linked fee

NOI during the current period x 7.5% (maximum)

DPU-linked fee

Distribution per unit before deduction of DPU-linked fees x
NOI x 0.01% per annum (maximum)

Changes from the 7th FP, ending August 2021
 The rate will be lowered within the maximum %indicated on the left
 The rate will be raised within the maximum %indicated on the left
 Ratio of the investment performance-linked portion to
the management fee during the period
Prior to change: 30% → After change: Approx. 50%

2. Summary of the acquisition fee and disposition fee structure At the general unitholders’ meeting to be held on May 24, 2021, the changes to the Articles of Incorporation will be submitted, andthe disposition fee will be changed to the investment performance-linked system

Acquisition fee(reference)
Disposition fee

Prior to change

After change

Sales price x 1.0%

Sales price x 1.0% (no change)

Sales price x 1.0%

15% (maximum) of the amount derived by deducting the loss on
dispositions from the gain on dispositions at the end of the period(0 yen, if the amount is negative)28

Earnings Forecasts and the Growth Strategy

Impact of COVID-19 on DPU
Despite a temporary dividend deduction due to the impact of COVID-19, we will continue aiming to further increase
the DPU in the future.
Results
Forecasts(3,331 yen)

(3,391 yen)

(30 yen)(10 yen)(89 yen)(440 yen)(3,322 yen)
(95 yen)Lower rent revenue in Sendai*1
Impact of prolonged office leasing activities＊2
Temporarily reduced office rent

(3,140 yen)(439 yen)(89 yen)(184 yen)

3,242 yen

2,911 yen

2,788 yen

2,867 yen

5th FP

6th FP

7th FP (Forecast)

8th FP (Forecast)*1 Calculated as an estimated amount based on the difference between the actual rent for the 4th FP and the forecast for each FP.

*2 Calculated as an estimated amount based on the difference between the estimated downtime prior to the spread of COVID-19 and the estimated prolonged downtime.

29

Earnings Forecasts and the Growth Strategy

Management Growth Strategies Going Forward
Despite the decline in DPU due to the impact of COVID-19, we intend to increase unitholder value by improving astabilized DPU through the recovery of revenues from office properties and external growth.
Recovery of stabilized DPU through thereinstatement of fixed rents for the hotel
Consider external growth to improve stabilized DPU
Recovery of stabilized DPU by promoting leasing activities
Maintaining an office rent/occupancy rate towards the future

6th FP Longer leasing periods for certain
office spaces due to the spread of
COVID-19 (budgeted lease costs
carried forward to later FPs)
 Reduce the risk of cancellation by
allowing temporary rent reductions
based on the tenant’s businessconditions and contracted rent Reduce the risk of hotel operators
leaving by provisionally changing thecontract to a rent system that iscompletely linked to GOP Improve DPU through the acquisitionof Life Fukuizumi Store (expect anincrease of 60 yen during thestabilization period)

7th FP

8th FP Expect lower dividend due to periods
where no rent is collected andincurring leasing costs in office spaces(Translated into DPU: decrease of 95
yen) Start of enjoying the results of DPU
recovery by beginning rent collections
for office space Aim for a recovery of DPU by office retenanting based on cooperation withthe sponsor group
 Take advantage of a low LTV level andconsider the acquisition of properties,
after assessing the circumstances Expect increase of revenue by
reinstating fixed rents for the hotel
 Take advantage of a low LTV level andconsider the acquisition of properties,
after assessing the circumstances

Cruise DPU
improvement

30

ESG

ESG

ESG Initiatives (1) Environment
Acquisition of Environmental Certification
Acquired environmental certification for the following properties. XYMAX REIT will continue to promote environmental and energy-saving measures of owned properties
and improve efficiency of energy use.

┃ CASBEE－Real estate┃┃ BELS ┃XYMAX NishiShimbashi Building

XYMAX
Iwamotocho
Building

XYMAX
Shinjuku-Gyoen
Building

Hotel Vista
SendaiXYMAX
Higashi-Azabu
Building
Assessment
Rank

Assessment
Rank

★★

★★★

Assessment Rank

XYMAX
Higashi-Azabu
Building

XYMAX HigashiUeno Building

XYMAX
Hachioji Building

Rank A(Very good)* Higashi-Azabu has obtained┃Acquisition status ┃ CASBEE and BELS certification.
Number of Acquisition ofEnvironmental Certification

7 properties

Acquisition rate(based on total floor area)

42.5%┃Improvement of environmental performance throughbuilding/facility renovation┃
 Implementing renovation work for air conditioning systematically in tenant exclusive area
Implemented properties: Iwamotocho, Shinjuku-Gyoen, Higashi-Azabu, Higashi-Ueno Implementing LED replacement systematically in common area and exclusive spaces
Implemented properties: Nishi-Shimbashi, Iwamotocho, Shinjuku-Gyoen, Kamiyacho, Higashi-Azabu,
Higashi-Ueno Installing hydropower sensor faucets to save water and energy usage
Installed properties: Nishi-Shimbashi, Shinjuku-Gyoen, Higashi-Azabu, Higashi-Ueno

32

ESG

ESG Initiatives (2) Social (1)Initiatives for Tenants and Local Communities┃Introduction of emergency storage boxes in elevators┃┃Introduction of Disaster-Relief Vending Machines┃ Emergency storage boxes have been
installed in elevators in six properties
as confinement measures at
earthquake disaster.

 Introduced disaster-relief
vending machines to provide
drinks for free (by remotecontrol) during emergencies.

Installed properties: Iwamotocho,
Shinjuku-Gyoen, Kamiyacho, Higashi-Azabu,
Higashi-Ueno, HachiojiInstalled properties: Higashi-Azabu,
Higashi-Ueno, Hachioji

Initiatives for a Sustainable Society┃Signing of Principles for Financial Action for the 21st Century by Ministryof the Environment┃

 XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation, AssetManagement Company of XYMAX REIT, has endorsed the ideas of
the Principles and became a signatory on December 27, 2013.

Initiatives of asset management┃Promotion of paperless┃Working toward to realize paperless workflow at Asset Management Company and promoting resource saving• Introduction of electronic approval system at Asset Management Company• Creating paperless instructions circulation system between the trustee the asset management property

33

ESG

ESG Initiatives (3) Social (2)Initiatives for Employees of the Asset Management Company┃ Qualification support system ┃┃Respect for diversity┃

 Asset Management Company introduced a system to provide incentives for employees
who acquire certain qualifications.
 Status of qualification (incl. those unregistered) by employees of Asset Management
Company (as of April 1, 2021)

 More than half of our executives and employees are female, and female
employees are succeeding in a wide range of fields, regardless of being in
the front, middle, or back office.

• Licensed Real Estate Broker• ARES Certified Master• Certified Building Administrator

Number of executives and employees(excluding dispatched employees)

2475┃Flextime system and workstyles in the during the COVID-19 pandemic┃

April 2019

Male

Female(Percentage
of female)

Total

15

23

60.5%

38

Maternity or
child care leave1

 Asset Management Company introduced a flextime system to support a more flexible workstyle
April 2020
13
23
63.9%
36
1
in line with the degree of activity.
 We will ensure both business continuity and employee safety during the COVID-19 pandemic
April 2021
15
19
55.9%
34
1
by allowing employees to choose between working at the head office and working from home,depending on their work conditions. (Established is a limit on the number of employees that can work at the head office due to physical distance requirements.)

IR Activities at 5th FP

ESG initiatives at Sponsor GroupWe are participating in other initiatives, such as online seminars, with fullconsideration of ways to prevent the spread of COVID-19.

 Nurturing real estate business personnel through Karakusa Fudosanjuku(real estate business seminar ) at Sponsor GroupIR activities for individuals• December 2020:
Nikkei J-REIT Infrastructure Fund Forum (Tokyo)

IR activities for institutional investors• Domestic: Visited 16 companies in urban areas and 10
companies in local areas• Overseas: Visited 9 companies• Property Conference Tokyo 2020 (Sponsored by SMBC
Nikko Securities)• Nomura Global Real Estate Forum 2021 (Sponsored by
Nomura Securities)

Nikkei J-REIT Infrastructure
Fund Forum Holding lectures at Real Estate Sustainability & Energy-Efficiency Diffusion
Review Committee, Ministry of Land, Infrastructure, Transport and Tourism
 Holding lectures at Land Economy and Construction Industry Bureau,
Ministry of Land, Infrastructure, Transport and Tourism
 Contributing to ARES Real Estate Securitization Journal
 Serving as lecturer of ARES Real Estate Securitization Master training
course Promoting diversification of working places and hours
 Granting of scholarships to Yangon Technological University students
 Accepting technical trainees from overseas

34

ESG

ESG Initiatives (4) GovernanceDecision-making Flow at Asset Management Company
 XYMAX REIT adopts a decision-making flow via committees in which external committee members participate in matters that significantly impact unitholders’interests with the intention of protecting unitholders’ interests.
 At the REIT Compliance Committee and REIT Investment Committee, the attendance and approval of compliance officers and external committee members are
requirements for resolutions. Accordingly, a governance system has been established to prevent arbitrary management by the Asset Management Company.

Examination by complianceofficer

Proposal by division(s) inchargeUnapproved

Acquisition and transfer of assets
Entrustment of management tointerested parties, etc.

Rejected

Rejected

Deliberation and resolution by REIT
Compliance Committee *Expenditure exceeding a certain amount, etc.

Deliberation and resolution
by REIT Investment
Committee *Rejected

Deliberation andresolution by Board of
Directors’ Meeting

Relevant
approval
procedures

Matters other than the above, etc.

* Attendance and approval by external committee members and compliance officer are imperative for approval

Compliance Education at Asset Management Company
 Conducting a study session on compliance hosted by the complianceofficer once a quarter or more Intending to maintain and improve the knowledge on compliance aswell as fostering awareness on compliance of the employees of AssetManagement Company

Investment Ratio in XYMAX REIT by Sponsor
 Through the holding of XYMAX REIT’s investment units by the sponsor,
improvement in unitholder value is realized by matching the interests ofinvestors.*• Holding ratio of XYMAX REIT ’s investment units by sponsor*

5.6 %(as of February 28, 2021)

35

APPENDIXAPPENDIX

Characteristics of XYMAX REITXYMAX REIT realize the full potential of owned properties and maximize the unitholders’ value through relevant
portfolio management utilizing expertise and know-how accumulated in and by the XYMAX Group, the sponsor

Characteristics of XYMAX Group Japan’s prominent real estate management record
 Real estate management record:965 buildings・Gross floor area Approx. 5.0 million tsubo
 Entrustment records by J-REIT investment corporation other than XYMAX REIT:30 companies・186 properties Human resources :2,022 people engaged in real estate management, 66 people in leasing, and 67 people in CRE related business Real estate management utilizing accumulated various data & Development of new businesses applying expertise and know-how
 Data of Real Estate Management :Contracted rent data 39,779 buildings/128,747 cases,
Asking rent data 56,237 buildings/32,798 cases, Construction work data 154,621 cases
 Membership satellite office business “ZXY” and expanding own hotel brand, ”Karaksa Hotels”

 Track record in real estate sales and brokerage utilizing huge customer base
 Relationship with real estate owners: approximately 320 companies
 Track record in property sales and brokerage:345 buildings, approximately 580 billion yen(accumulated total from April 1, 2010 to March 31, 2021)

Utilizing XYMAX Group’s expertise and know-how as “3 Strength”

Assessment

Management

Sourcing

37

APPENDIX

The source of power to maximize unitholder value;XYMAX REIT's “3 strengths”
XYMAX REIT will maximize unitholder value by utilizing the three real estate management strengths of its sponsor, the
XYMAX Group.

“3 strengths” of XYMAX REIT

Assessment

 Through combining our knowledge gained through real estate management experiencethroughout Japan and an analysis of a huge amount of unique real estate data held by thesponsor group, we will accurately determine the market positioning of a target property,
upon estimating the appropriate level of rent and management costs for such property.

Management

 Through daily unfettered discussion, we will perform management which directly utilizes
various expertise of the sponsor group as well as input from the frontline. With close
communication with the frontline enabling quick decisions, we will maximize property
potentials, together with ensuring opportunities for internal growth.
 Utilizing the sponsor group’s direct communication with real estate owners, we will seize
property acquisition opportunities in exclusive transactions for sure.

Sourcing

 Utilizing the real estate buying and selling needs of the customer base of the CRE service
provided by the sponsor group, we will create property acquisition opportunities in
exclusive transactions.
38

APPENDIX

Balance Sheet and Statement of Income
Balance Sheet
AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Operating accounts receivable
Prepaid expenses
Other

Non-current assets
Property, plant and equipment
Tools, furniture and fixtures
Buildings in trust
Structures in trust
Tools, furniture and fixtures in trust

Land in trust
Construction in progress in trust
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Lease and guarantee deposits
Other

Liabilities
資産合計

Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term borrowings

Accounts payable - other
Income taxes payable
Accrued consumption taxes
Advances received
Other
Non-current liabilities
Long-term loans payable
Tenant leasehold and security
deposits in trust

Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus

Total net assets
Total liabilities and net assets

5th fiscal period(As of Aug. 31, 2020)(thousand yen)

6th fiscal period(As of Feb. 28, 2021)(thousand yen)

3,051,092
1,022,211
1,974,404
21,64232,279554
33,665,883
33,497,350
39,8378,770,285
50,411
25,03424,606,271
5,511
168,532
39,05811
22,600106,862
36,587,864
3,618,707
125,758
814,000
2,336,000
105,716841
34,459198,430
3,501
9,788,186
8,530,000

2,923,484
986,598
1,881,240
17,73637,043865
34,712,741
34,515,588
27,234
8,866,751
67,95423,86525,529,781
197,153
46,44313
22,600128,095
36,716,975
3,966,804
100,018
500,000
3,088,000
94,359891
7,973
166,214
9,347
10,433,265
9,192,000

1,258,186

1,241,265

13,406,893

14,400,070

23,310,082
22,585,746
724,336
23,310,082
36,716,975

23,236,156
22,585,746
650,410
23,236,156
37,636,226

Statement of Income
Operating revenue
Lease business revenue
Other lease business revenue

Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensations
Other operating expenses

Operating income
Non-operating income
Interest income
Insurance payment received
Non-operating expenses
Interest expenses
Borrowing related expenses

Ordinary income
Income before income taxes
Total income taxes
Income taxes - current
Income taxes - deferred

Net income
Retained earnings brought forward
Unappropriated retained earnings(undisposed loss)

5th fiscal period(As of Aug. 31, 2020)(thousand yen)

6th fiscal period(As of Feb. 28, 2021)(thousand yen)

1,364,523
1,258,613
105,909592,560
469,247
78,106
823
9,932
2,400
32,050771,96214
14
46,94036,745
10,194
725,036
725,036848
843
4724,188147

1,293,375
1,200,153
93,222576,894456,31276,213826
10,641
2,400
30,499716,481490
14475
65,74437,89427,850651,227
651,227891
893-2
650,33673

724,336

650,41039

APPENDIX

Portfolio List (1)Asset no.

OF-01

OF-02

OF-03

OF-04

OF-05

OF-06

OF-07

Asset type

OfficeOfficeOfficeOfficeOfficeOfficeOfficeProperty nameXYMAX Nishi-Shimbashi Building

XYMAX Iwamotocho Building

XYMAX Shinjuku-Gyoen Building

XYMAX Kamiyacho Building

XYMAX Higashi-Azabu Building

XYMAX Higashi-Ueno Building

XYMAX Hachioji Building

Location

Minato-ku, Tokyo

Chiyoda-ku, Tokyo

Shinjuku-ku, Tokyo

Minato-ku, Tokyo

Minato-ku, Tokyo

Taito-ku, Tokyo

Hachioji-shi, Tokyo

3 minutes on foot from
Iwamoto-cho station on the
Toei Subway Shinjuku line

2 minutes on foot from
Shinjuku Gyoenmae stationon the Tokyo metro
Marunouchi line

1 minute on foot from
Kamiyacho station on theTokyo metro Hibiya line

5 minutes on foot from
Akabanebashi station on the
Toei Subway Oedo Line

3 minutes on foot from NakaOkachimachi station Tokyo
metro Hibiya line

7 minutes on foot from
Kamiyacho station on theTokyo metro Hibiya line

4 minutes on foot from JR
Okachimachi station, andother

3 minutes on foot from
Uchisaiwaicho station on the
Toei Subway Mita line

Access6 minutes on foot from
Shimbashi station on the JRTokyo metro Ginza line , andother

4 minutes on foot from Keio
Hachioji station on the Keio
Electric Railway Keio Line
5 minutes on foot from JR
Hachioji station

Acquisition price(million yen)

2,500

4,250

5,020

880

1,550

1,150

2,600

Land area

402.53㎡

864.83㎡

839.09㎡

228.83㎡

365.05㎡

368.84㎡

1,220.58 ㎡

Total floor area

2,517.50㎡

6,261.06㎡

6,084.32㎡

1,356.51㎡

2,570.13㎡

1,942.54㎡

7,404.81㎡

Leasable area

1,897.75㎡

4,152.30㎡

4,792.13㎡

1,205.29㎡

2,016.00㎡

1,735.34㎡

5,556.03㎡

Completion

2000

2001

2001

1991

1999

1999

1993

Structure/Numberof Floors

Reinforced concrete structurewith flat roof 9F

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

Steel-construction /Reinforced concrete structurewith flat roof B1F/9F

Steel-construction with flat
roof 8F

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

Steel-framed reinforced
concrete structure with flat
roof 8F

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

Number of tenant(As of the end of 5th FP)

8

14

6

7

4

8

23

Occupancy rate
(As of the end of 5th FP)

100.0%

100.0%

100.0%

100.0%

75.0%

100.0%

95.8%

40

APPENDIX

Portfolio List (2)Asset no.

RT-01

RT-02

RT-03

RT-04

HT-01

OT-01

Asset type

RetailRetailRetailRetailHotel

Other (Residential)

Property nameMuza Kawasaki

Life Kawasaki Miyuki Store

Vita Seiseki-Sakuragaoka

Life Fukuizumi Store

Hotel Vista Sendai

Renaissance 21 Chihaya

Location

Kawasaki-shi, Kanagawa

Kawasaki-shi, Kanagawa

Tama-shi, Tokyo

Sakai-shi, Osaka

Sendai-shi, Miyagi

Fukuoka-shi, Fukuoka

4 minutes on foot from JR
Sendai station
1 minute on foot from
Miyagino Dori station on the
Sendai City Subway Tozai Line

6 minutes on foot from
Chihaya station on the JR
Kagoshima main line andNishitetsu Chihaya station on
the West Nippon Railway
Kaizuka line

Access

JR Kawasaki station directconnection

15 minutes on foot from JR
Kashimada station and YakostationKeio Electric Railway Keio Line
Seiseki Sakuragaoka Station
Directly Connected

12 minutes on foot from Otori
station on the JR Hanwa line

Acquisition price(million yen)

4,100

790

3,100

1,065

4,400

2,700

Land area

742.44 ㎡ *1

1,879.15 ㎡

4,467.51 ㎡ *2

6,225.21 ㎡

1,461.36 ㎡ *3

2,644.63 ㎡

Total floor area

3,671.09㎡ *1

2,596.80㎡

27,161.00㎡ *2

3,358.26㎡

6,977.47㎡

10,856.15㎡

Leasable area

3,703.87㎡

2,677.54㎡

27,610.61㎡

3,309.29㎡

7,066.25㎡

10,287.93㎡

Completion

2004

1997

1999

1996

2016

2006

Steel-construction with flat
roof 2F

Steel-construction with flat
roof 12F

Steel-construction with flat
roof 12F

Structure/Number of
FloorsSteel-framed/Steel-framed
reinforced concrete structurewith flat roof/stainless steel
plate roofing B2F/27F

Steel-construction with flat
roof 2F

Steel-framed reinforced
concrete structure/reinforced
concrete structure/steelconstruction withflat roof B3F/27F

Number of tenant(As of the end of 5th FP)

18

1

1

1

1

139

Occupancy rate
(As of the end of 5th FP)

100.0%

100.0%

100.0%

100.0%

100.0%

99.0%*1 Land area indicates the figure equivalent to 6.9% of the right of site (rounded down to the first decimal place) held by the Investment Corporation within the site area of Muza Kawasaki. In addition, building area indicates the total building area based on the real estate registry for the components the trust

beneficiary rights held by the Investment Corporation.

*2 Land area indicates the figure equivalent to 49.6% of the right of site (rounded down to the first decimal place) held by the Investment Corporation within the site area of Vita Seiseki-Sakuragaoka. In addition, building area indicates the total building area based on the real estate registry for the components thetrust beneficiary rights held by the Investment Corporation (floor area of 2 jointly-owned components, building No. 72-3 and 72-7 is the figure multiplied by ownership ratio of 937,995/1,000,000 and 591,485/1,000,000, respectively), and is rounded down to the second decimal place.

*3 Superficies have been established for 524.21 m2 of the land area.

41

APPENDIX

Portfolio Map
Portfolio located in favorable locations┃ Tokyo Economy Area ┃┃ Tokyo Area ┃OF-07 XYMAX Hachioji Building

RT-01 Muza Kawasaki

OF-6 XYMAX Higashi-Ueno Building

RT-02 Life Kawasaki Miyuki Store

RT-03 Vita Seiseki-Sakuragaoka┃ Osaka Area ┃OF-02 XYMAX Iwamotocho Building
OF-03 XYMAX Shinjuku-Gyoen Building

RT-04 Life Fukuizumi Store┃ Fukuoka Area

┃ Sendai Area ┃OT-01 Renaissance 21 Chihaya

OF-01 XYMAX Nishi-Shimbashi Building
OF-04 XYMAX Kamiyacho Building
OF-05 XYMAX Higashi-Azabu Building
HT-01 Hotel Vista Sendai

OfficeRetailHotel

Others（Residential）

42

APPENDIX

Investment Ratio and Advantage by Asset Type（As of the end of 6th FP）
Percentage by asset type

Percentage by geographic area

■Office

12.9%

52.6%

■Retail■Hotel■Others■Main asset

23.9%
41.6%

3.4%

92.1%

Office

41.9%

25.4%

Retail20.5%

and prefectures of Kanagawa,

96.9%

Saitama, and Chiba.

Average engagement period

Time required from the nearest station■Less than 3 minutes■3～5 minutes

23.1%*The breakdown is based on
the acquisition price andaverage shows the simple
average

Average

3.0
min.

79.5%

34.4%

Average

18.7
years

51.6%

13.9%

11.8%
Average
54.0%

10.0
years

100%

*1 Retail facilities for which the majority of customer can easily come on foot or by bicycle in a short time.

■10 years or more andless than 15 years■15 years or more andless than 20 years■ 20 years or more

*The breakdown is based on theacquisition price and averageshows the simple average

Percentage of specialized in Stay

Average engagement period■less than 5 years■5 years or more andless than 10 years■10 years or more
*The breakdown is based
34.2% on the acquisition price andaverage shows the simple
averageshows the simple average

29.5%

76.9%

■ Station-front■Other■Neighborhood *1*The breakdown is based on
the acquisition price*The breakdown is based on theacquisition price and average（ +0.3％ vs. end of August 2020, 16,277yen/tsubo）

Composition of retail properties

years***Tokyo (excl. 23 wards of Tokyo),

76.1%■10,000 yen - 15,000 yen■15,000 yen - 20,000 yen■20,000 yen *As of the end of February 2021**Excl. rents of stores, parking lots,etc.
***Unit rent incl. CAM

14.0

19.4%

■Less than 5 yrs.
■5～10 yrs.
■10～15 yrs.
■15～20 yrs.
■Over 20 yrs.
■Over 5 yrs.

Shibuya wards within Tokyo.

31.1%

Average unit rent 16,325 yen / tsubo

29.9%

Average*The breakdown is based on**Chiyoda, Chuo, Minato, Shinjuku andon the acquisition price

32.6%

3.1%
18.1%

the acquisition price*The breakdown is based

26.6%■5 wards of Tokyo**■23 wards of Tokyo excl. 5 wards■Tokyo economy***■Designated cities■Tokyo metropolitan area

■Specialized in Stay

Hotel

7.9%

Percentage by year engaged by XYMAX Group*The breakdown is basedon the acquisition

100.0%

43

APPENDIX

Operating Income (Loss) from Real Estate Leasing by Asset（1/2）(thousand yen)

Nishi-Shimbashi

Iwamotocho

Shinjuku-Gyoen

Kamiyacho

Higashi-Azabu

Higashi-Ueno

Hachioji

Operating revenue fromreal estate leasing

81,863

140,583

184,595

41,002

47,212

48,680127,874

Lease business revenue

76,468125,028

173,008

37,774

41,53043,172

111,528

Other lease businessrevenue

5,394

15,555

11,587

3,228

5,682

5,507

16,346

Operating expenses fromreal estate leasing（Excluding Depreciation）

19,97334,82342,491

13,207

18,572

11,77735,942

Tax and public dues

6,913

13,403

14,441

4,677

6,367

3,684

8,383

Maintenance fees

5,363

10,218

11,597

4,506

5,586

4,269

15,597

Utility expenses

3,649

7,041

6,849

1,975

2,142

2,462

6,578

Repair expenses

1,095

2,525

7,403

1,147

3,572

666

3,465

61

218

210

46

81

59

272

Other expenses related
to rent business

2,890

1,416

1,989

856

822

633

1,645

ＮＯＩ

61,889105,760

142,104

27,79428,64036,902

91,932

Depreciation

2,626

13,25910,996

1,316

5,688

3,174

9,353

Operating income (loss)
from real estate leasing

59,26392,501

131,107

26,477

22,95233,72882,578Insurance premiums

44

APPENDIX

Operating Income (Loss) from Real Estate Leasing by Asset（2/2）(thousand yen)

Muza

Kawasaki Miyuki

SeisekiSakuragaoka

Fukuizumi

Sendai

Chihaya

Total

Operating revenue fromreal estate leasing

171,272

undisclosed

undisclosed

undisclosed

undisclosed

109,755

1,293,375

Lease business revenue

151,675

undisclosed

undisclosed

undisclosed

undisclosed

102,998

1,200,153

Other lease businessrevenue

19,596undisclosed

undisclosed

undisclosed

undisclosed

6,756

93,222

Operating expenses from realestate leasing（Excluding
Depreciation）

43,080undisclosed

undisclosed

undisclosed

undisclosed

27,922

321,474

Tax and public dues

10,586undisclosed

undisclosed

undisclosed

undisclosed

8,638

133,386

Maintenance fees

14,946undisclosed

undisclosed

undisclosed

undisclosed

8,015

84,331

Utility expenses

13,153undisclosed

undisclosed

undisclosed

undisclosed

1,604

45,456

Repair expenses

3,675

undisclosed

undisclosed

undisclosed

undisclosed

4,822

31,927

Insurance premiums

188

undisclosed

undisclosed

undisclosed

undisclosed

291

3,517

Other expenses related torent business

529

undisclosed

undisclosed

undisclosed

undisclosed

4,549

23,440128,192

22,689171,279

29,321

43,56081,832

971,901

Depreciation

17,4391,570

16,6172,223

30,62019,951

134,838

Operating income (loss)
from real estate leasing

110,752

21,119154,662

27,09812,93961,880837,062

ＮＯＩ45

APPENDIX

Overview of Appraisal Report
Asset
no

Asset nameAcquisitiondate

Acquisition
price(million yen)Book value as ofthe end of 6th FY(million yen)

End of 5th FY(August 31, 2020)

End of 6th FY(February 28, 2021)

ChangeAppraisalvalue (million
yen)

Capitalization rate
based on direct
capitalization
method (%)

Appraisalvalue (million
yen)

Capitalization rate
based on direct
capitalization
method (%)

Capitalization rate
based on direct
capitalization
method *2 (%)

Appraisalvalue *1
(million yen)

Unrealized profit
or loss *3(million yen)Appraiser

The Tanizawa Sōgō

OF-01

XYMAX Nishi-Shimbashi Building

February 2018

2,500

2,515

3,120

3.7

3,120

3.7

-

OF-02

XYMAX Iwamotocho Building

February 2018

4,250

4,368

5,730

3.5

5,740

3.5

10

- Japan Real Estate Institute

1,371

OF-03

XYMAX Shinjuku-Gyoen Building

February 2018

5,020

5,058

7,200

3.5

7,300

3.5

100

- Japan Real Estate Institute

2,241

OF-04

XYMAX Kamiyacho Building

February 2018

880

890

1,200

3.8

1,220

3.8

20

- Appraisal Co., Ltd.

OF-05

XYMAX Higashi-Azabu Building

February 2018

1,550

1,605

2,140

3.8

2,140

3.8

-

- Co., Ltd.

OF-06

XYMAX Higashi-Ueno Building

February 2018

1,150

1,173

1,620

3.9

1,620

3.9

-

OF-07

XYMAX Hachioji Building

February 2018

2,600

2,599

3,590

4.8

3,570

4.8

RT-01

Muza Kawasaki

February 2018

4,100

4,095

5,380

4.1

5,390

RT-02

Life Kawasaki Miyuki Store

February 2018

790

794

975

4.2

RT-03

Vita Seiseki-Sakuragaoka

February 2018

3,100

3,303

3,910

RT-04

Life Fukuizumi Store

September 2020

1,065

1,083

HT-01

Hotel Vista Sendai

February 2018

4,400

OT-01

Renaissance 21 Chihaya

February 2018

Total ／Average- Appraisal Co., Ltd.

604

The Tanizawa Sōgō329

Daiwa Real Estate Appraisal

534- Co., Ltd.

Daiwa Real Estate Appraisal

446

-20

- Japan Real Estate Institute

970

4.1

10

- Appraisal Co., Ltd.

976

4.2

1

- Co., Ltd.

5.0

3,870

5.0

-40

-

-

1,090

4.5

1,090

4,277

5,210

4.9

5,170

5.0

-40

0.1 Appraisal Co., Ltd.

The Tanizawa Sōgō

892

2,700

2,749

3,150

5.0

3,210

4.9

60

-0.1 Appraisal Co., Ltd.

The Tanizawa Sōgō

460

34,10534,51543,225-44,416-

1,191

The Tanizawa Sōgō

1,294

Daiwa Real Estate Appraisal

181

The Tanizawa Sōgō

566

- Appraisal Co., Ltd.

Daiwa Real Estate Appraisal- Co., Ltd.

-

-

6

9,900

*1 The difference between the estimated value at the end of the 5th FP and the estimated value at the end of the 6th FP is indicated.
*2

The difference between the direct capitalization rate adopted in the real estate appraisal report for each portfolio asset in the calculation of estimated value at the end of the 5th FP and the direct capitalization rate adopted
in the real estate report for each portfolio asset in the calculation of estimated value at the end of the 6th FP is indicated.
*3
The difference between the book value at the end of the 6th FP and the book value at the end of the 6th FP for is indicated.

46

APPENDIX

Change in investment unit price┃Change in investment unit price ┃ As of March 31, 2021
（yen）

145,000

XYR

Tokyo Stock Exchange REIT Index

140,000
135,000
130,000
125,000
120,000
115,000

Closing price 109,900yen
As of March 31, 2021

110,000
105,000
100,000

Issue price 105,000 yen

95,00090,00085,00080,00075,00070,0002019 2/15 3/15 4/15 5/15 6/15 7/15 8/15 9/15 10/1511/1512/15 1/15
2020 2/15 3/15 4/15 5/15 6/15 7/15 8/15 9/15 10/1511/1512/15 1/15
2021 2/15 3/15
2/15 3/15 4/15 5/15 6/15 7/15 8/15 9/15 10/1511/1512/15 1/15
2018
1/15
1/15
1/15
2/15

* The Investment Corporation has indicated the issue price with 105,000 yen as the starting point and indexed the Tokyo Stock Exchange REIT Index based on the opening price as of February 15, 2018.

47

APPENDIX

Status of Unitholders
Share of investment units by owner type

Major Unitholders■Individuals, other ■Financial institutions ■Other domestic companies

Note: As of February 28, 2021

■Overseas institutions, etc. ■Securities companies

3rd FP

4th FP

5th FP

12.9%

51.1%

12.6%

46.1%

21.7%

6th FP

9.4%

47.3%

24.4%

4.7%

21.8%

9.1%

27.4%

10.0%

47.3%

9.9%

Financial
institutions
Other domestic
companies
Overseas
institutions, etc.
Securities
companies
Total

Ratio*(%)

Custody Bank of Japan, Ltd. (Trust account)38,066

17.03

The Master Trust Bank of Japan, Ltd.(Trust account)

23,894

10.69

Custody Bank of Japan, Ltd. (Securities investment trust account)

12,776

5.71

XYMAX Corporation

12,500

5.59

The Nomura Trust and Banking Co., Ltd.(Investment Trust
Account)

8,822

3.94

BNP PARIBAS SECURITIES SERVICES FRANKFURT / JASDEC / SGSSDEUTSCHLAND KAPITALANLAGEGESELLSCHAFT MBH FOR REITASIEN 1

7,772

3.47

SCBHK AC LIECHTENSTEINISCHE LANDESBANK AG

5,875

2.62

BNYM SA/NV FOR BNYM FOR BNY GCM CLIENT ACCOUNTS MLSCB RD

4,589

2.05

Aozora Bank, Ltd.

3,508

1.57

JDC CORPORATION

3,000

1.34

120,802

54.07

4.8%

16.4%

14.7%

Number of unitholders by owner type

Individuals, other

Name

Number ofinvestment
units(unit)

3rd FP

4th FP

5th FP

6th FP

3,892

4,089

5,889

6,318

40

37

38

35

88

90

125

121

76

79

62

77

21

23

24

24

4,117

4,318

6,138

6,575

4.6%

3.7%

Total

* The ratio of unitholders is rounded down to the second decimal place.

48

APPENDIX

Overview of Asset Management Company
Overview
Company name

Organization
XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation

General Meetingof Shareholders

Location

XYMAX Akasaka 111 Building, 1-1-1 Akasaka, Minato-ku, Tokyo
AuditorEstablishment

August 6, 2007

Capital

0.2 billion yen

Major shareholders
Number of
employees

XYMAX Corporation (100% stake)34 (as of April 1, 2021)

Board of Directors
Compliance Committee

REIT Compliance Committee

Investment Committee

REIT Investment Committee

Internal Audit Team

Compliance OfficeCompliance Officer(1) Financial instruments business as prescribed in the Financial
Instruments and Exchange Act
Lines of business(2) Real estate investment advisory business and discretionary realestate investment business(3) Asset management business for investment corporation
Shotaro Kanemitsu, Representative Director and President

Executives

Yasushi Yamaguchi, Director

Representative

Kazuya Sugimoto, Director

Director

Shigeki Kawakita, Auditor
Financial instruments business: Director-General of the Kanto Local Finance Bureau
Registration (FIBO) No. 1907 (Investment Management Business, Investment Advisory
and Agency Business, and Type II Financial Instruments Business)

Licenses

Discretionary transaction agency, etc. business: Minister of Land, Infrastructure,
Transport and Tourism Approval No. 118
Real Estate Specified Joint Enterprise: License No. 75 granted by Commissioner of the
Financial Services Agency and Minister of Land, Infrastructure, Transport and Tourism(for businesses referred to in items (iii) and (iv))
Real estate investment advisory business: Registration No. Sogo-57
Real estate brokerage business: Governor of Tokyo License (3) No. 88223

Private Investment
Management
Department

Business
Development
Department

Business
Administration
Division

REIT
Management
Division

Business
Planning
Division

49

APPENDIX

Overview of XYMAX Group

Establish
ment

OfficeXYMAX Corporation (unlisted)

March 1, 1990

* Spin-off from Recruit Co., Ltd. through employee

participatory MBO in 2000

Locationofheadquarters

1-1-1 Akasaka, Minato-ku, Tokyo

Capital2,892.865 million yen(as of March 31, 2020)

Sales

100.831 billion yen(actual results for the fiscal year ended
March 2020)

Major
shareholders

XYMAX Shareholding Association, directors &employees, clients and financial institutions
Total: 315 (as of March 31, 2020)

Numberofemployees

6,501 (as of April 1, 2020)* Consolidated figures of the Group

Other specialized
services

Representative Director, Chairman & CEO:
Masafumi Shimada
Representative Director Kenji Yoshimoto

CRE strategy, effective
utilization,
development/design
Consulting and planning on
inheritance, fund procurement,
etc.

Logistics

Hotel

Asset Management

XYMAX
XYMAX TRUSTXYMAX REAL ESTATE INVESTMENT ADVISORS/MAX-REALTY

Asset management
Asset strategy, etc.

Valormax
Y.Estate

Real estate
management

Property management
Building maintenanceIntegrated
management of
store facilities
Facility management* Consolidated figures of the Group

RepresentativeRetail/Store

Real estate consulting

Real estate consulting andmanagement services

Company
name

SG Asset Max

Hokkaido

XYMAX HOKKAIDO

East JapanXYMAX ALPHATokaiXYMAX TOKAI

KansaiXYMAX KANSAI

KyushuXYMAX KYUSHU

Abilitas Hospitality

Leasing brokerage

Market survey/analysis
Research/planning on
management and repair

Hotel business

Real estate appraisal
Real estate assessment/survey

XYMAX INFONISTAXYMAX REAL ESTATE
INSTITUTE

KARAKSA HOTELSXYMAX ASSETCONSULTING

Cleaning

Security

Satellite office

Risk management

XYMAX SALAMAX SECURITY SERVICEXYMAX ZXY Department

Safety Organization for
Urban Renewal

Realize growth of XYMAX REIT by drawing on all of
the XYMAX Group’s expertise and workforce

50

APPENDIX

Corporate History
Started Office Property Management Business
1982:

Started the services such planning, development,
management for the Recruit Group’s own officebuilding investment and utilization after thecreation of the “Buildings-related Division” of
Recruit Group.

1996:

Started to provide the property management
service to corporate and private owners otherthan Recruit Group.

2000:

MBO from Recruit Group which gave birth to
XYMAX Group

Made a Full-scale Entry to Retail Property Management Business2001:

Establishment of Retail Property Management Business Division of XYMAX

Entry into Hotel-related Business2012:

Acquired 100% stake of Abilitas Hospitality Co., Ltd.

Started Asset Management Business
2007:

2000

2001

Started to provide hybrid
service of real estate andfinance by setting up MAXREALTY, a joint venture with
Sumitomo Mitsui Banking
Corporation.

2002

2003

2004

Made an entry into thebuilding management (BM)service by setting up XACUTechno Service Corporation, ajoint venture with Haseko
Anesis2005

Set up XYMAX Real Estate Investment Advisors Corporation

2006

2007

Enhanced the BM business byacquiring 100% stake of Asahi
Building Management
Services, Inc., a subsidiary of
the Daiei Inc.

2008

2009

2010

Entered into a business tie-up
with SG Holdings Co., Ltd., aholding company of Sagawa
Express Co., Ltd.

2011

2012

2013

Started the private REIT
business through SG Asset
Max Co., Ltd., a joint venturewith SG Realty Co., LTD.

2014

2015

2016

Opened karaksa hotel Osaka
Shinsaibashi I and karaksa
hotel Kyoto I.

2017

2018

Made an entry into
the J-REIT business

51

APPENDIX

Fertile Management Base of the XYMAX GroupThe XYMAX Group has been ranked as No. 1 domestic service provider in the PM business in terms of contracting recordof real estate management projects for six years in a row since 2010*.
■ Human resources :2,022 people engaged in real estate management, 66 in leasing, and 67 in CRE related business(as of March 1, 2021)■ Relationship with real estate owners : approximately 320 companies■ Track record in property sales and brokerage: :345 buildings, approximately 580 billion yen(accumulated total from April 1, 2010 to March 31, 2021)┃ Real estate management record
Actual number ofcontracts

965 buildings(As of the end of January 2021)

Approx.

31┃

Hokkaido ·Tohoku Region

Gross floor area
Approx. 5.0 million tsubo（Approx. 16.0 million m2)

900

Central · Koushin'etsu
Region┃ Facility management record (As of the end of December 2020) ┃Actual number ofcontracts

Hokkaido Region

Number of customers

12,400 stores

132 companies

8

1,800

Central ·Kanto Region
Chugoku ·Koushin'etsu Region
5,200
Kanto Region
Shikoku Region
Kansai Region 67
545
Chugoku ·700
Shikoku Region 231

Kyushu · Kyushu Region
Okinawa Region
1,300

Tohoku Region

59

15

Kansai Region

Okinawa Region

2,500

9

* According to each November issue of the monthly magazine Property Management from 2010 to 2015, the XYMAX Group was ranked No. 1 in terms of floor area under management for six

consecutive years since 2010.

52

Cooperation with ITBM Center

Statutory inspections, confirmation of items pointed
out/Proposing correction

Asset Value
Maintenance

Building maintenance and management(cleaning/security/maintenance)

Optimization of management specifications

Confirming of completion of repair
work/Arranging payments

Accounting
ReportArranging contractors/Obtaining
estimates/Assessing amounts

Construction work data

Checking /Reporting on status of items
requiring repair

Leasing Related
Operations

Repair planning

Report/Proposal

Preparation and submission of annual budgets

Owner

Preparation of monthly reports

XYMAX Group

Issuing invoices/Confirmation of
payment/Payment of expenses

Arrangement of move-in

Tenancy screening/Negotiation for conclusion

TenantManagement

Agency’s relation

Direct leasing

Instruct/Judge

Marketing/Sales strategy planning

Checking completion of agreements on
termination/Restoration

Rent negotiations (raising/lowering)

Handling delinquent tenants

Preparation of detailed building
regulations/Guidance for tenants

Responding to tenants (responses tocomplaints, etc.)

APPENDIX

Property Management
The XYMAX Group provides consistent real estate management and operation services, ranging from Property Management(acting for owners) to Building Maintenance operations.
In addition, the XYMAX Group owns all kind of data on real estate management through a track record accumulated over theyears.
┃ Areas of Real Estate Management Operations┃┃ Data Related to Real Estate Management ┃Contracted rent data

128,747cases
buildings(covering past 25.5 years)

Asking rent data

32,789 cases
buildings(covering past 10 years)

39,77956,237(during the period between April 1, 2000 and February 28, 2021)

154,621 cases

Building
Management

53

APPENDIXITBM Center
The XYMAX Group has built a support system that uses IT to achieve a high-quality building maintenance.

┃ＩＴＢＭ ＣＥＮＴＥＲ┃XYMAX ALPHA introduces information communication technology in building maintenance operations tomaintain and provide secure and safe conditions.
Creating a more advanced, higher quality, safer and more secure building maintenance framework and value.
XYMAX ALPHA has introduced an initiative called ITBM (Information Technology Building Maintenance) into
building management.

TA (Technical Adviser) Support

Knowledge Support

TAs give backup to all building maintenance sites

Desired information can be accessed anytime, anywhere from a
dedicated website

While they are stationed at the ITBM Center, TAs use their knowledge, technology,
and know-how in building maintenance based on their experiences at various sites tobackup all site operations.

Information on managed properties as well as knowledge and information concerningbuilding maintenance operations are aggregated into a database. Information can beaccessed anytime, anywhere from devices at all sites.

Real-Time Information Gathering During of an
Emergency or Disaster

Checking with and giving instructions to thesite by the ITBM Center

Site facility staff (making the rounds/on-site)

In times of fires or natural disasters, information can be shared with therelevant divisions and head office functions on a real-time basis using
video from smart devices connected on-site with the ITBM Center.
Videos sent from the site can be shown on a large display. The
information can be used for real and accurate status reporting, as thevideos and audio exchanged between the both are recorded
automatically.
Video at the time of a fire in abuilding near a property managed by
the Company.
The video was linked to the ITBM
Center after people in the building
were safely evacuated. It was thenused in reporting the status to theowner and the head office.

54

APPENDIX

Facility Management
The XYMAX Group conducts integrated management of retail stores of retail chains by providing services that substantiallyreduce the operational burden on store management.
Conventional store management

XYMAX store management system

Issues for clients
Each store• Shortage of manpower instore management• Optimization of cost andspecifications

Corporate
headquarters
Status confirmation

Inquires
Corporate headquarters

Order placement
Facility management
systemService providers

Benefits of integrated management to clients

Orderplacement

24-hour call center

Inquires Improving operational efficiency of store management• Introduce call center and store management system• Reduce management staff of headquarters

 Optimizing costs, improving quality• Consolidation of contractors, unification of specifications• Reduce fixed costs (contractor fees) of stores

 Ensure thorough compliance, response to government agencies

Service providers

Each store• Operations related to response to government agencies, routine inspection• Remedy of compliance violations

55

APPENDIX

Original Sourcing Strategy
XYMAX REIT captures the needs for real estate disposal gained from the huge customer base of the XYMAX Group.
In addition, XYMAX REIT grasps the trend of real estate owners at an early stage through daily communication, so that opportunities are created for external growth.

┃Direct relationship with real estate owners┃
XYMAX REIT

Acquisition
Trap disposal needs

 More than 70% of real estate owners are concerns over about large-scale renovations of owned properties,
tenant management, and securing funds for reconstruction
 Identifies needs of property disposal arising due to the problem or concern about necessary funds
 Concern for inheritance and business succession tends to increase as real estate owners get older
 Identifies needs of property disposal upon business succession and inheritance by building owners

Asset Management Company
Realization of external growth
XYMAX Group

Survey on building owners’ situations by XYMAX Real Estate Institute┃Anxiety in future building business (by the number of owned buildings)┃

Owner relationship, customer base
General businesscompany

Building owners

OthersROE management

Financing

30%

50%

20%

36%

42%

23%

1-2 buildings

Securing funds for large-scalerenovations and reconstruction

Financing
Inheritance3 buildings or moreManagement of tenants forlarge-scale renovation andreconstruction

Measures against inheritanceand business succession

3 buildings or more
1-2 buildings

24%

52%

30%

46%

3 buildings or more

16%

1-2 buildings

20%
0%┃Diversity among real estate owners┃
Percentage of client types for real estate management business(As of the end of January 2021)
Number ofproperties undermanagement

965

Others
39.9%

J-REIT
20.3%

Individual,
etc.
39.8%

● J-REIT
J-REITs including XYMAX REIT
● Individual, etc.
Individuals, asset management companies,
general business companies, etc.
● Others
Private REITs, private funds, real estatecompanies, etc.
Source: The asset management company based on material
provided by XYMAX Corporation

24%

39%

24%
45%

45%
20%

40%

Concerned

35%
60%

Slightly concerned

80%

100%

Not concerned

Source: “Building Owner Survey 2017” by XYMAX Real Estate Institute┃Concerns over future building business (By age, multiple answers)┃
40 or younger

Management of tenants forlarge-scale renovation andreconstruction

50-59
60-69
70 or older
40 or younger

Securing funds for large-scalerenovations and reconstruction

50-59
60-69
70 or older

Measures against inheritanceand business succession

40 or younger
50-59
60-69
70 or older

0%

20%

40%
Concerned

60%
Slightly concerned

80%

100%

Not concerned

Source: Created by XYMAX Real Estate Institute based on the request from the asset management company

56

APPENDIXXYMAX Group’s track record of real estate disposals and real estate brokerage
External growth (number of cases, total amount and area) by capitalizing on track record in real estate
sales and brokerage.
To investment corporations, etc. */Whole
Disposals and sales
brokerage
Number of cases
Disposals andsales brokerage
Total
Average perbuilding

37

Use and geographical area of real estate in real estate disposals andreal estate sales brokerage results
3.1%

345

Office10.8%

RetailHotel

9.6%

155.3 billion yen

0.7%

580.0 billion yen

50.6%

2.2%

17.4%

Tokyo

39.4%

8.3%

Other Tokyo
Metropolitan Area
Osaka Area

4.9%

Nagoya Area

residential
Land

12.8%

23 Wards of Tokyo

0.7%

Logistics

12.5%

4.1 billion yen

5 Wards of Tokyo

5.1%

22.0%

Fukuoka Area

Other

1.6 billion yen

Other

By asset (whole)(based on transaction price)

By area (whole)(based on transaction price) Source: XYMAX Corporation

Accumulated track record of real estate disposal and brokerage services(accumulated total from April 1, 2010, excluding sales to XYMAX REIT)(hundred million yen)

14.1 billion yen to investment corporation, etc./Whole 52.7 billion yen

6,500
6,000
5,500
5,000
4,500

(Actual results from April 1, 2010 to March 31, 2021 Fiscal year average)■ Sale and intermediary to other thaninvestment corporations, etc.

■ Sale and intermediary to investment
corporations, etc.

4,000
3,500
3,000
2,500

2,071

2,000
1,500
1,000
500
0

269

645
427

End of March2011

End of March
2012

934

1,251

2,607

2,977

3,323

3,809

4,246

1,676

585

694

756

End of March2013

End of March2014

End of March
2015

1,075

1,148

1,384

1,482

1,491

1,553

End of March2016

End of March2017

End of March2018

End of March2019

End of March
2020

End of March
2021* Vehicle for acquisition and holding of properties with the intent to transfer them to real estate investment corporations

Source: XYMAX Corporation

57

APPENDIX

Accumulation and utilization of original data by XYMAX Real Estate InstituteTechnology/
information
providing

XYMAX
Group
business

XYMAX Real Estate
Institute Corp.

Publication
Of
Mass media
information

Variousmedia┃Office market cycle in the 23 wards of Tokyo ┃（ New contracted rent index ）Rent Index （100＝2010Q1）

180
2008Q2

160
140

Posting, contribution and lectures to mass media and various
media (example)120

 PostingNihon Keizai Shimbun, Nikkei Business Daily, etc.

100

 Contribution

ARES Real Estate Securitization Journal
The Japanese journal of real estate sciences
BUILDING TOKYO, etc.

 Lectures

Waseda University Advanced Collaborative
Research Organization for Smart Society
Land Economy and Construction and Engineering
Industry Bureau, Ministry of Land, Infrastructure,
Transport and Tourism
Institute for Building Environment and Energy
Conservation (IBEC)Tokyo Telework Promotion Center
Nomura Global Real Estate Forum 2021
Nikkei Inc. Media Business Event Joint study

Japan Facility Management Association (JFMA), etc.

 OtherTokyo Univ., Nihon Univ., Waseda Univ., Univ. of Hyogo, etc.
Participation in CRE at MIT in USA as an Industrial Partner

2001Q1
2020Q4

2003Q280

2012Q2

60
0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

（Vacancy rate:％）

2019
Q4

2020
Q1

2020
Q2

2020
Q3

2020
Q4

Vacancy rate

0.78%

0.71%

1.01%

1.34%

1.87%

New
contracted
rent index

128

137

128

132

121

(Source) XYMAX Real Estate Institute Corp. (Vacancy rates for March 2011 and before arecalculated based on data from a major leasing brokerage company)

58

APPENDIXXYMAX Group’s Expanding B to C Business Activities (ZXY)
Membership satellite office business “ZXY” leading work-style reform┃Workplace service enabling free work-style┃「GOOD DESIGN BEST 100」受賞
Opened as the 100th workplace with 20 private
units corresponding increasing demand after
spread of COVID-19

 Location of workplaces

Opened at ticket gate in the railway station (0minute-walk) converted from kiosk

 Change in number of memberships and workplaces
Workplaces

Members

400,000
350,000
300,000

160

Number of memberships (members)
Number of workplaces (workplaces)
78

200,000
150,000

50,000
0

17

27

31

33

40

47

54

140
120

94

250,000

100,000

134

100
376,349

291,148

112,681
226,942
44,1993,806
139,244
23,39476,902212,954
5
5,691

80
60
40
20
0

Source: XYMAX Corporation

59

APPENDIXXYMAX Group’s Expanding B to C Business Activities（karaksa hotel）
The XYAX Group is expanding its own brand, “karaksa hotel” in the country mainly targeting
tourists
Osaka
Mar. 2016
Jan. 2017
Nov. 2017
Nov. 2019

Hokkaido

69 rooms karaksa hotel Osaka Shinsaibashi *139 rooms karaksa Spring hotel Kansai Air Gate *112 rooms karaksa hotel Osaka Namba *396 rooms karaksa hotel grande Shin-Osaka Tower *177 rooms karaksa hotel Sapporo *Jan. 2018

Kyoto
Mar. 2016 36 rooms
karaksa hotel Kyoto I *karaksa hotel grandeShin-Osaka Tower

Chibakaraksa hotel Osaka Namba

To be opened 190 rooms
karaksa hotel Sapporo

 Change in number of hotels developed andhotelsoperated and number of guestrooms

15

10

karaksa hotel Kyoto I

karaksa hotel TOKYO STATION

OpenedTo be opened

May 2019
Jul. 2019
Spring, 2023
To be opened

57 rooms karaksa hotel premier Tokyo Ginza *151 rooms karaksa hotel TOKYO STATION *95 rooms
162 rooms

356
105

0

1,584
1,137

5

Tokyo

2,000

Number of hotels
Number of guestrooms

karaksa hotel premier Tokyo Ginza

2

4

2016

2017

533

8

2019

1,600
1,200

11

800
400

5
2018

rooms

After 2023

0

Source: XYMAX Corporation (as of April 2021)* As of the date of this material, XYMAX REIT has not determined the acquisition of these properties and there is no guarantee that XYMAX REIT will acquire them in the future.

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Disclaimer

This document is provided solely for informational purposes with regard to XYMAX REIT Investment Corporation (hereinafter, “XYMAX REIT”)
and is not intended to serve as an inducement or solicitation to trade in any product offered by XYMAX REIT. Decisions on investments are to bemade using your own discretion and responsibility.
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Please consult with your securities company regarding the purchase of XYMAX REIT’s investment units or investment corporation bonds.
Information presented in this document should not be interpreted, unless otherwise specified, as constituting disclosure documents or an asset
management report required under Financial Instruments and Exchange Act or the Act on Investment Trusts and Investment Corporations.
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available. However, no assurances can be given regarding the accuracy, validity and completeness of the information, regardless of whether it isinformation prepared by XYMAX REIT or the Asset Management Company, or information received from a third party.
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statements presented by XYMAX REIT or the Asset Management Company according to assumptions or judgement based on information
available as of the date of this document (the date if specified otherwise in the document). Forward-looking statements are based onassumptions such as the investment policy of XYMAX REIT, applicable laws and regulations, market environment, interest rate environment,
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