(REIT) Financial Report for the Fiscal Period Ended August 2021
REIT Securities Issuer:
Securities Code:
Representative:

October 13, 2021
Listing: Tokyo Stock Exchange
URL: https://xymaxreit.co.jp/en/index.html

XYMAX REIT Investment Corporation
3488
Shotaro Kanemitsu, Executive Director

Asset Management Company: XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation
Representative:
Shotaro Kanemitsu, Representative Director and President
Contact:
Tatsuya Nakayama, Head of Business Planning Division
TEL: +81-3-5544-6880
Scheduled date for submission of securities report:
Scheduled date for commencement of distribution payment:

Nov. 29, 2021
Nov. 19, 2021

Supplementary materials for financial results:
Financial results briefing session:

Yes
Yes (for institutional investors and analysts)

1.

(Amounts are rounded down to the nearest million yen)
Status of Management and Assets for the Fiscal Period Ended August 2021 (from March 1, 2021 to August 31, 2021)(1) Results of Operations(% figures are the rate of period-on-period increase (decrease))
Operating revenue
million yen
Fiscal period
ended Aug. 2021
Fiscal period
ended Feb. 2021

Operating income% million yen

Ordinary income

Net income%

million yen%

million yen

%

1,305

0.9

701

(2.1)

648

(0.4)

647

(0.4)

1,293

(5.2)

716

(7.2)

651

(10.2)

650(10.2)Net income per unit

Fiscal period
ended Aug. 2021
Fiscal period
ended Feb. 2021

Ratio ofordinary income tooperating revenue

Ratio ofordinary income tototal assets

Return on equity

yen

%

%

%

2,899

2.8

1.7

49.7

2,911

2.8

1.8

50.4

(2) Distribution
Distribution
per unit(excluding
distribution
in excess ofearnings)
yen

Total
distribution(excluding
distribution
in excess ofearnings)
million yen

2,900
2,911

Fiscal period
ended Aug. 2021
Fiscal period
ended Feb. 2021

Distribution
in excess ofearnings
per unit

Total
distribution
in excess ofearnings

Payout ratio

Ratio ofdistribution to
net assetsyenmillion yen

%

%

647

-

-

100.0

2.8

650

-

-

100.0

2.8

(3) Financial Position

Fiscal period
ended Aug. 2021
Fiscal period
ended Feb. 2021

Total assets
million yen

Net assets
million yen

38,971
37,636Equity ratio%

Net assets per unit
yen

23,233

59.6

104,000

23,23661.7

104,011

(4) Cash Flows

Fiscal period
ended Aug. 2021
Fiscal period
ended Feb. 2021

2.

Net cashprovided by (used in)operating activities
million yen

Net cashprovided by (used in)investing activities
million yen

Net cashprovided by (used in)financing activities
million yen

Cash andcash equivalents
at end of period
million yen

783(1,393)

619

2,877

665

(1,170)

376

2,867

Operating Forecasts for the Fiscal Period Ending February 2022 (from September 1, 2021 to February 28, 2022) and Fiscal
Period Ending August 2022 (from March 1, 2022 to August 31, 2022)(% figures are the rate of period-on-period increase (decrease))

Operating revenue Operating income

Ordinary income

Net income

Distribution
per unit(excluding
distribution
in excess ofearnings)

Distribution
in excess ofearnings
per unit

mn yen% mn yen% mn yen% mn yen%yen
yenFiscal period
1,383
6.0
740
5.5
665
2.7
664
2.6
2,977
ended Feb. 2022
Fiscal period
1,387
0.2
732
(1.0)
674
1.2
673
1.2
3,013
ended Aug. 2022
(Reference) Forecast net income per unit
(Forecast net income ÷ Forecast total number of investment units issued and outstanding at end of period)
Fiscal period ending February 2022: 2,976 yen
Fiscal period ending August 2022: 3,013 yen* Other(1) Changes in Accounting Policies, Accounting Estimates, and Retrospective Restatements
i. Changes in accounting policies accompanying amendments to accounting standards, etc.:
ii. Changes in accounting policies other than i.:iii. Changes in accounting estimates:
iv. Retrospective restatements:

None
None
None
None

(2) Total number of investment units issued and outstandingi. Total number of investment units issued and outstanding (including treasury investment units) at end of period
Fiscal period ended Aug. 2021
223,400 units
Fiscal period ended Feb. 2021
223,400 units
ii. Number of treasury investment units at end of period
Fiscal period ended Aug. 2021
0 units
Fiscal period ended Feb. 2021
(Note)

0units

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

* Explanation of Appropriate Use of Operating Forecasts, and Other Matters of Special Note
The operating forecasts and other forward-looking statements contained in this document are based on information currently
available to and certain assumptions deemed reasonable by XYMAX REIT. Accordingly, the actual results of operations, etc.
may differ materially due to various factors. Key factors that could affect the actual operational status include a decline in rent
revenue, non-payment of rent and bankruptcy of tenants occupying owned properties, as a result of the further spread of the
new coronavirus infectious diseases (COVID-19) and the prolongation of the period until the contagion converges. Factors
affecting the investment status are not limited to these. In addition, the forecasts are not a guarantee of the amount of
distribution. For the assumptions underlying the operating forecasts, matters of note in the use of the operating forecasts, etc.,
please see “Assumptions Underlying the Operating Forecasts for the Fiscal Period Ending February 2022 (from September 1,
2021 to February 28, 2022) and Fiscal Period August 2022 (from March 1, 2022 to August 31, 2022)” on page 5. Accordingly,
the actual operating revenue, operating income, ordinary income, net income, distribution per unit and distribution in excessof earnings per unit may vary due to changes in the circumstances.

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
Table of Contents
1. Management Status ............................................................................................................................................................................. 2(1) Overview of the Fiscal Period under Review ............................................................................................................................... 2(2) Outlook for the Next Fiscal Period ................................................................................................................................................ 3
2. Financial Statements ........................................................................................................................................................................... 7(1) Balance Sheet ................................................................................................................................................................................. 7(2) Statement of Income ..................................................................................................................................................................... 9(3) Statement of Unitholders’ Equity ............................................................................................................................................... 10(4) Statement of Cash Distribution .................................................................................................................................................. 11(5) Statement of Cash Flows ............................................................................................................................................................. 12(6) Notes on the Going Concern Assumption .................................................................................................................................. 13(7) Notes on Matters Concerning Significant Accounting Policies ................................................................................................. 13(8) Notes on the Financial Statements ............................................................................................................................................. 15(9) Changes in Total Number of Investment Units Issued and Outstanding ................................................................................. 24
3. Reference Information ...................................................................................................................................................................... 24(1) Investment Status ........................................................................................................................................................................ 24(2) Investment Assets ....................................................................................................................................................................... 26-1-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021

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

Management Environments
With regard to the economic environment during the fiscal year under review, the real GDP growth rate for the
April-June quarter of 2021 increased by 0.5% (an annual increase of 1.9%), partly due to an increase in investment
in housing and the resumption of capital investment by companies that had been postponed.
As for the financial markets, according to "Loans and Discounts Outstanding by Sector" published by the Bank ofJapan, total loans outstanding as of the end of June 2021 were JPY541 trillion and loans outstanding for real estate
were JPY88.9 trillion, which remained at extremely high levels.
Although economic activities are expected to gradually resume due to an increase in the vaccination coverage rate,
the outlook for epidemicity COVID-19 is uncertain worldwide, and therefore, XYMAX REIT believes that it isnecessary to continue to closely monitor trends in the capital and financial markets in the future.
Under these circumstances, the following movements have been observed in the markets for office, retail andhotel and the real estate buy-sell market, in which XYMAX REIT is primarily invested.
As for offices, according to "Office Market Report Tokyo 2021Q2" (Note) published by XYMAX Real Estate InstituteCorporation the vacancy rate in Tokyo's 23 wards in the second quarter of 2021 increased by 0.66 point from theprevious quarter to 2.96%, however, the vacancy absorption rate in the 23 wards of Tokyo in the 2Q of 2021 isincreased by 3.6 points from the previous quarter to 34.5%.
Based on the experience of teleworking activities as an infection control against the COVID-19, companies areseeking out an office strategy towards after-COVID-19.
For example, while some companies have reduced leased area of their head offices based on the company policy touse head offices together with other working places effectively ( such as satellite offices and home, etc.), there havealso been moved to lease new office spaces for the purpose of opening satellite offices and consolidating dispersed
offices.
Regarding retail facilities, according to the Ministry of Economy, Trade and Industry's Current Survey ofCommerce, retail sales in the second quarter 2Q of 2021 increased by 6.5% from the same quarter of the previous
year.
Sales at supermarkets and drugstores, which mainly sell daily necessities, remained firm even under the impact of-2-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
the spread of COVID-19.
In addition, according to a survey of trends in the service industry conducted by the Statistics Bureau of the
Ministry of Internal Affairs and Communications, restaurant sales increased 11.9% year-on-year, but a full-fledged
recovery is still likely to take time.
As for hotels, according to the Japan Tourism Agency's Accommodation Travel Statistical Survey, the total numberof guests in the first half of 2021 (January-June) decreased by 16.4% year-on-year.
In addition, the number of guests of overseas visitors to Japan, as announced by the Japan National Tourism
Organization, declined 97.6% in the first half of the year, and it is believed that it will take a considerable amount oftime to recover to the number of overseas visitors before the spread of COVID-19.
The entire hotel industry continues to be significantly negatively affected by restrictions on the movement ofpeople domestically and overseas due to COVID-19. However, some areas are showing signs of a gradual recovery,
partly due to the impact of the gradual relaxation of restrictions on the holding of events and other events.
In the real estate buy-sell market, following the backdrop of a favorable financing environment and strong
demand from overseas investors, investment activities continued, particularly in asset types such as residential andlogistics facilities. There were also large-scale transactions, such as the sale of the head office building. As a result,
the real estate market was active and real estate prices remained in a higher price range.
(NOTE) For more information on the survey, please refer to the website (https://soken.xymax.co.jp/) of Xymax Real Estate Institute Co.,
Ltd.

III. Management Status
As of the last day of the fiscal period under review, XYMAX REIT had 15 properties in its portfolio. Its total acquisition
price stood at 35,313 million yen, a total leasable area at 77,616.68 m2 and total leased area at 76,020.50 m2. The
occupancy rate as of the last day of the fiscal period under review was 97.9%.
IV. Financing Status(Equity Financing)In the fiscal period under review, XYMAX REIT did not procure funds through issuance of new investment units. Asof the last day of the fiscal period under review, unitholders’ capital was 22,585 million yen.
(Debt Financing)In the period under review, XYMAX REIT borrowed a new loan of 1,270 million yen on July 1, 2021.
As a result, as of the last day of the fiscal period under review, the balance of loans outstanding was 14,050 million
yen.
V.

Overview of Business Performance
Business performance in the fiscal period under review resulted in operating revenue of 1,305 million yen, operating
income of 701 million yen, ordinary income of 648 million yen and net income of 647 million yen.
Concerning distribution for the fiscal period under review, pursuant to the distribution policy provided in XYMAXREIT’s Articles of Incorporation, the decision was made to distribute unappropriated retained earnings in theamount of 647,860,000 yen, which is the largest integral multiple of the total number of investment units issued andoutstanding (223,400 units) by application of special provisions for taxation on investment corporations (Article 6715 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957, as amended)). This resulted in
distribution per unit of 2,900 yen.

(2) Outlook for the Next Fiscal Period
I. General Management Outlook(A) External Growth Strategy
Capture wide range of real estate disposition needs through real estate management customer base
XYMAX REIT captures real estate disposition needs from the customer base of the XYMAX Group based on a sponsor
support agreement with XYMAX Corporation with the aim to lead such needs to property acquisition opportunities
for XYMAX REIT.
(B) Internal Growth Strategy
Utilization of the real estate management insight and know-how and network of the XYMAX Group-3-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
Through the sponsor support agreement with XYMAX Group, XYMAX REIT is provided with various real estate
management insight, know-how, databases, management systems, private fund management experience, etc. On thisbasis, XYMAX REIT can and will perform stable and efficient management.
(C) Financial Strategy
Financial management with emphasis on stability and soundness, and LTV ratio control
XYMAX REIT shall execute a financial strategy that places emphasis on stability and soundness and secure agility infund procurement, taking into consideration the securing of stable revenue over the medium to long term, steady
growth in size of assets under management and stability of management.
II.

Significant Subsequent Events
Not applicable.

III. Operating Forecasts
XYMAX REIT’s operating forecasts for the fiscal period Ending February 2022 (from September 1, 2021 to February
28, 2022) and Fiscal Period Ending August 2022 (from March 1, 2022 to August 31, 2022) are as follows:
Distribution
Distribution
per unit
in excess of(excluding
OperatingOperating
Ordinary
Net income
earnings
distribution
revenueincomeincomeper unit
in excess ofearnings)
million yen
million yen
million yen
million yen
yenyen
Fiscal period
1,383
740
665
664
2,977
ending Feb. 2022
Fiscal period
1,387
732
674
673
3,013
ending Aug. 2022
Furthermore, for the assumptions underlying the operating forecasts, please refer to “Assumptions Underlying the
Operating Forecasts for the Fiscal Period Ending February 2022 (from September 1, 2021 to February 28, 2022) andFiscal Period Ending August 2022 (from March 1, 2022 to August 31, 2022)” presented later in this document.
(Note)

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

-4-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
Assumptions Underlying the Operating Forecasts for the Fiscal Period Ending February 2022 (from September 1, 2021 to
February 28, 2022) and Fiscal Period Ending August 2022 (from March 1, 2022 to August 31, 2022)
Item
Accounting
periodAssets undermanagement

Assumption
 Fiscal period ending February 2022 (8th fiscal period)(from September 1, 2021 to February 28, 2022) (181 days)
 Fiscal period ending August 2022 (9th fiscal period)(from March 1, 2022 to August 31, 2022) (184 days) The assumption is that the actual real estate and real estate trust beneficiary rights held by XYMAX REIT
as of today (total of
15 properties) (hereinafter, the “current portfolio assets”) will continue to be held and there will be no
acquisition of new properties other than the current portfolio assets through to the end of the fiscal
period ending August 2022 (9th fiscal period).
 Change may arise due to acquisition of new properties other than the current portfolio assets,
disposition of the current portfolio assets, etc.
 Operating revenue from leasing is calculated on the basis of various factors, such as the content of leaseagreements entered into for the current portfolio assets and past tenant and market trends, and by
taking into account various factors, such as the assumed occupancy rate and rent fluctuation
projections based on tenant move-in/move-out and rent level projections.
 Variable rent is budgeted assuming that the negative impact of the spread of COVID-19 will be
prolonged at least more than 12 month onward. Therefore, the budgeted amount was calculated inaccordance with the formula set-forth in the Lease Agreement based on the conservatively amended
operating budget prepared by the operator.

[Hotel Vista Sendai]

Operatingrevenue

OperatingexpensesNon-operating
expenses

Interest-bearing
liabilities

Fixed rent:Monthly amount of 20.0 million yen
Variable rent: Calculated by multiplying the amount obtained by subtracting 21 million yen from the
GOP of the current month (Note 1) by a certain percentage (Note 2).
(Note 1)

If the amount obtained by subtracting 21 million yen from the GOP of the current
month becomes negative, the variable rent for the current month shall be 0 yen.

(Note 2)The percentage shall not be disclosed because the consent of the Lessee has not beenobtained.

 The assumption is that there will be no delinquent or unpaid rent by tenants and no gain (loss) on salesof real estate properties.
 Of operating expenses, the main components are as follows:
Fiscal period
Fiscal period
ending Feb. 2022
ending Aug. 2022
(8th fiscal period)(9th fiscal period)
Expenses related to leasing business [Total]
511 million yen
518 million yen
Management fees
92 million yen
92 million yen
Repair expenses
39 million yen
37 million yen
Property taxes
137 million yen
143 million yen
Depreciation
142 million yen
151 million yen
Other than expenses related to leasing business
132 million yen
135 million yen[Total]Asset management fees
79 million yen
80 million yen
 Expenses related to leasing business, which are the main operating expenses, are calculated on thebasis of historical data at XYMAX REIT (historical data disclosed by the previous owner, etc. in the caseof periods for which there is no historical data at XYMAX REIT) and by taking into consideration factors
causing fluctuation in expenses.
 Depreciation is calculated using the straight-line method inclusive of incidental expenses, etc.
 Repair expenses are the amount necessary in each fiscal period as assumed on a property-by-property
basis by the Asset Management Company. However, repair expenses possibly increasing in amount or
additionally arising from unforeseeable factors, the amount generally tending to vary materially fromfiscal year to fiscal year and not being an amount that arises periodically, etc. may result in repair
expenses for each fiscal period differing materially from the forecast amount.
 For the fiscal period ending February 2022 (8th fiscal period), interest expenses and other borrowing
related expenses are assumed to be 74 million yen.
 For the fiscal period ending August 2022 (9th fiscal period), interest expenses and other borrowing
related expenses are assumed to be 58 million yen.
 The assumption is that total interest-bearing liabilities will be 14,050 million yen at the end of the fiscal
period ending February 2022 (8th fiscal period) and 14,050 million yen at the end of the fiscal period
ending August 2022 (9th fiscal period). Short-term loans of 1,770 million yen and long-term loans of
3,088 million are due in the fiscal period ending February 2022. The assumption is that these will be
repaid with funds procured through loans, etc.
-5-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
Item

Investment units

Distribution
per unit(excluding
distribution
in excess ofearnings)
Distribution
in excess ofearnings
per unit

Assumption
 LTV ratio is expected to be 35.9% at the end of the fiscal period ending February 2022 (8th fiscal period)and 35.9% at the end of the fiscal period ending August 2022 (9th fiscal period). In addition, thefollowing formula is used in the calculation of LTV ratio.
LTV ratio = Total interest-bearing liabilities ÷ Total assets × 100
 The assumption is the total number of investment units issued and outstanding is 223,400 units as ofthe end of the fiscal period ended August 2021 and that there will be no change in the number ofinvestment units due to issuance of new investment units, etc. through to the end of the fiscal period
ending August 2022 (9th fiscal period).
 Distribution per unit (excluding distribution in excess of earnings) and distribution in excess ofearnings per unit are calculated on the basis of the forecast total number of investment units issued
and outstanding at the end of the fiscal period ending February 2022 (8th fiscal period) and fiscal
period ending August 2022 (9th fiscal period) of 223,400 units.
 Distribution per unit (excluding distribution in excess of earnings) is calculated based on theassumption that distribution will be in accordance with the cash distribution policy provided in XYMAXREIT’s Articles of Incorporation.
 Distribution per unit (excluding distribution in excess of earnings) may vary due to various factors,
such as fluctuation in rent revenue accompanying change in assets under management, change intenants, etc. or incurrence of unexpected repairs.
 No cash distribution in excess of earnings (distribution in excess of earnings per unit) is scheduled tobe made at this point in time.

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

-6-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021

2. Financial Statements(1) Balance Sheet(Unit: thousand yen)
6th fiscal period(As of Feb. 28, 2021)
AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes refund receivable
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings

7th fiscal period(As of Aug. 31, 2021)

986,598
1,881,240
17,73637,043865
2,923,484

973,089
1,904,372
28,27533,683
19,212694
2,959,327-

308,882

Accumulated depreciation-(1,175 )Buildings, net-

307,707-

1,814

Accumulated depreciation

-

(11 )

Structures, net

-

1,802

-

10,659-(67 )

109,618(82,383 )27,234
9,524,508(657,756 )
8,866,751
73,944(5,989 )67,95429,743(5,877 )23,86525,529,781
34,515,588

10,592
109,618(86,980 )
22,637229,752
9,895,194(784,826 )
9,110,368
74,366(7,573 )66,79330,755(8,511 )22,243
26,138,580
2,006
35,912,484

46,44313
22,600128,095
197,153
34,712,741
37,636,226

36,432
13
22,60040,57999,62536,012,109
38,971,437

Structures

Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Lease and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets-7-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021

(Unit: thousand yen)
6th fiscal period(As of Feb. 28, 2021)
Liabilities
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
Total current liabilities
Non-current liabilities
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus
Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets-8-

7th fiscal period(As of Aug. 31, 2021)

100,018
500,000
3,088,000
94,359891
7,973
166,214
9,347
3,966,804

81,2671,770,000
3,088,000
96,729878
202,993
4,577
5,244,446

9,192,000
1,241,265
10,433,265
14,400,070

9,192,000
33,3491,267,943
10,493,292
15,737,739

22,585,746

22,585,746

650,410

647,952

650,410
23,236,156※１ 23,236,156
37,636,226

647,952
23,233,698※１ 23,233,698
38,971,437

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
(2) Statement of Income(Unit: thousand yen)
7th fiscal period
From: Mar. 1, 2021
To: Aug. 31, 2021

6th fiscal period
From: Sep. 1, 2020
To: Feb. 28, 2021
Operating revenue
Leasing business revenue
Other leasing business revenue
Total operating revenue
Operating expenses
Expenses related to leasing business
Asset management fees
Asset custody fees
Administrative service fees
Directors’ compensations
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Settlement income on Property tax, etc.
Interest on refund
Insurance payment received
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)※１

1,200,153
93,222
1,293,375

※１

※１

-9-

456,31276,213826
10,641
2,400
30,499576,894
716,481※１

1,193,065
112,400
1,305,465※１※１

481,704
76,297876
10,0742,400
32,768604,122
701,343

14
475
490

13
129
11
154

37,89427,85065,744
651,227
651,227
893
(2 )
891
650,33673
650,410

41,498
11,25852,757648,740
648,740880
0881
647,85992
647,952

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
(3) Statement of Unitholders’ Equity
6th fiscal period (from September 1, 2020 to February 28, 2021)(Unit: thousand yen)

Unitholders’ equity
SurplusTotal
unitholders’ equity

Total
net assets

Unitholders’ capital

Unappropriatedretained earnings(undisposed loss)

22,585,746

724,336

724,336

23,310,082

23,310,082

Dividends of surplus(724,262)(724,262)(724,262)(724,262)

Net income

650,336

650,336

650,336

650,336-(73,925)(73,925)(73,925)(73,925)*1 22,585,746

650,410650,410

23,236,156

23,236,156

Balance as of
September 1, 2020
Changes of items
during period

Total changes
during period
Balance as ofFebruary 28, 2021

Total
surplus

7th fiscal period (from March 1, 2021 to August 31, 2021)(Unit: thousand yen)

Unitholders’ equity
SurplusTotal
unitholders’ equity

Total
net assets

Unitholders’ capital

Unappropriatedretained earnings(undisposed loss)

22,585,746

650,410650,410

23,236,156

23,236,156

Dividends of surplus(650,317)(650,317)(650,317)(650,317)

Net income

647,859

647,859

647,859

647,859-(2,457)(2,457)(2,457)(2,457)*1 22,585,746

647,952

647,952

23,233,698

23,233,698

Balance as ofMarch 1, 2021
Changes of items
during period

Total changes
during period
Balance as ofAugust 31, 2021

- 10 -

Total
surplus

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
(4) Statement of Cash Distribution
Classification

6th fiscal period
From: Sep. 1, 2020
To: Feb. 28, 2021

I.
II.

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

7th fiscal period
From: Mar. 1, 2021
To: Aug. 31, 2021

650,410,246 yen
650,317,400 yen[2,911 yen]
92,846 yen

647,952,287 yen
647,860,000 yen[2,900 yen]
92,287 yen

Pursuant to the cash distribution
policy stipulated in Article 35,
Paragraph 1 of XYMAX REIT’s Articles
ofIncorporation,amountofdistribution must be equal or lessthan the amount of profit and exceed
90% of XYMAX REIT’s distributableprofit that is defined by Article 67-15
of the Act on Special Measures
Concerning Taxation. Based on thispolicy, XYMAX REIT has decided to
distribute 650,317,400 yen, which is
the maximum value of the integral
multiple of the total number of units
issued and outstanding (223,400
units), not exceeding unappropriatedretained earnings.
XYMAX REIT
does not make
distribution in excess of earnings
defined by Article 35, Paragraph 2 of
XYMAX
REIT’s
Articlesof
Incorporation.

Pursuant to the cash distribution
policy stipulated in Article 35,
Paragraph 1 of XYMAX REIT’s Articles
ofIncorporation,amountofdistribution must be equal or lessthan the amount of profit and exceed
90% of XYMAX REIT’s distributableprofit that is defined by Article 67-15
of the Act on Special Measures
Concerning Taxation. Based on thispolicy, XYMAX REIT has decided to
distribute 647,860,000 yen, which is
the maximum value of the integral
multiple of the total number of units
issued and outstanding (223,400
units), not exceeding unappropriatedretained earnings.
XYMAX REIT
does not make
distribution in excess of earnings
defined by Article 35, Paragraph 2 of
XYMAX
REIT’s
Articlesof
Incorporation.

- 11 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
(5) Statement of Cash Flows(Unit: thousand yen)
6th fiscal period
From: Sep. 1, 2020
To: Feb. 28, 2021
Cash flows from operating activities
Income before income taxes
Depreciation
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes refund receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Other
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Increase in long-term loans payable
Decrease in long-term loans payable
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 12 -

7th fiscal period
From: Mar. 1, 2021
To: Aug. 31, 2021

651,227
134,838(14 )
37,894
3,906(4,764 )(28,705 )(5,845 )(26,486 )(32,216 )(7,385 )(18,258 )
704,19014(37,420 )(843 )
665,941

648,740
137,139(13 )
41,498(10,538 )(19,212 )3,359
18,376
2,369(7,973 )36,77910,011(34,694 )825,84213(41,934 )(893 )
783,028(1,155,620 )(80,874 )
65,723(1,170,772 )(551,109 )(910,900 )
33,349(55,704 )91,182(1,393,183 )

1,600,000(1,914,000 )
3,750,000(2,336,000 )(723,945 )
376,054(128,776 )2,996,615※１ 2,867,839

1,270,000(650,222 )
619,777
9,622
2,867,839※１ 2,877,461

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
(6) Notes on the Going Concern Assumption
Not applicable.
(7) Notes on Matters Concerning Significant Accounting Policies
1. Method of depreciation (1) Property, plant and equipment (including trust assets)of non-current assets
The straight-line method is adopted.
Furthermore, the useful life of core property, plant and equipment is as follows:
Buildings
3–63 years
Structures
10–51 years
Machinery and equipment
27 years
Tools, furniture and fixtures
2–13 years(2) Long-term prepaid expenses
The straight-line method is adopted.
2.

Standards forrevenue and expense
recognition

Accounting for fixed property tax, etc.
For fixed property tax, city planning tax, depreciable property tax, etc. on real estate ortrust beneficiary rights that have real estate as trust assets held, the accounting is that, of
the tax amount assessed and determined, the amount corresponding to the fiscal period
is expensed as expenses related to rent business.
Furthermore, the amount equivalent to fixed property tax, etc. in the initial fiscal period
borne by XYMAX REIT upon acquisition of real estate or trust beneficiary rights that havereal estate as trust assets is not recognized as expenses but included in the cost of
acquisition of the concerned real estate, etc. In the fiscal period under review, amount of
fixed property tax, etc. included in the cost of acquisition of the real estate, etc. is 3,168
thousand yen, and 4,383 thousand yen in the previous fiscal period.

3.

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

4.

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

5.

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

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021

[Accounting standards not yet applied]・ Income Recognition Accounting Standard for Revenue Recognition (ASBJ Statement No.29, on March 31, 2020,
Accounting Standards Board of Japan)
・ Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30, on March 26,
2021, Accounting Standards Board of Japan)
・Implementation Guidance on Disclosure about Fair Value of Financial Instruments ( ASBJ Guidance No. 19, on March
31, 2020, Accounting Standards Board of Japan)*1. Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) jointly
developed comprehensive accounting standards for revenue recognition. In May 2014, the International AccountingStandards Board and the Financial Accounting Standards Board published "Revenue from Contracts with Customers"(IFRS No. 15 in IASB and Topic606 in FASB). IFRS No. 15 has been applied from the fiscal year beginning on or afterJanuary 1, 2018, and Topic606 has been applied from the fiscal year beginning on or after December 15, 2017. In lightof these circumstances, the Comprehensive Accounting Standards for Revenue Recognition have been developed andpublished in conjunction with the Guidelines by the Corporate Accounting Standards Board. The Basic Policy for
Developing Accounting Standards for Revenue Recognition by the Corporate Accounting Standards Board is toestablish accounting standards starting from the incorporation of the Basic Principles of IFRS No. 15 from thestandpoint of comparability between financial statements, which is one of the benefits that are consistent with IFRS
No. 15, and to add alternative treatment to the extent that comparability is not impaired, if there are items that should
be considered in the practice that have been carried out in Japan.
*2. Scheduled date for application
Effective from the beginning of the fiscal year ending February 2022.
*3. Impact of adoption of these accounting standards
The impact on the financial statements of the adoption of the "Accounting Standard for Revenue Recognition" andother standards is currently being evaluated.
・ Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, on July 4, 2019 Accounting Standards
Board of Japan)

・ Accounting Standard for Financial Instruments (ASBJ Statement No. 10, on July 4, 2019 Accounting Standards Board ofJapan)・ Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31, on June 17,
2021, Accounting Standards Board of Japan)
・ Implementation Guidance on Disclosure about Fair Value of Financial Instruments ( ASBJ Guidance No. 19, on March
31, 2020, Accounting Standards Board of Japan)*1. Overview
IASB and FASB have established detailed guidance for fair value measurement (IFRS 13 “Fair Value Measurement” by
IFRS and Topic 820 “Fair Value Measurement” by FASB). In order to improve the comparability between theinternational accounting standard and Japanese accounting standard, ASBJ has mainly considered guidance anddisclosure on fair value of financial instruments and published the accounting standard and implementation guidance
for fair value measurement accordingly.
As the basic policy of ASBJ for the development of accounting standard for fair value measurement, ASBJ basicallyadopted all provisions of IFRS 13 by using a unified calculation method, from the point of view of improving thecomparability between the financial statements based on IFRS or U.S. GAAP and Japanese GAAP. Moreover, inconsideration of the actual practice conducted in Japan, other treatments for individual items are established within
the scope not to fail the comparability*2. Scheduled date for application
Effective from the beginning of the fiscal year ending February 2022.
*3. Impact of adoption of these accounting standards
The impact on the financial statements of the adoption of the Accounting Standard for the Calculation of Market Value,etc. is currently being evaluated.

- 14 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
(8) Notes on the Financial Statements[Notes on the Balance Sheet]*1. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations
6th fiscal period(As of Feb. 28, 2021)

7th fiscal period(As of Aug. 31, 2021)

50,000 thousand yen

50,000 thousand yen[Notes on the Statement of Income]*1. Breakdown of operating income (loss) from real estate leasing business6th fiscal period
From: Sep. 1, 2020
To: Feb. 28, 2021
A. Operating revenue from real estate leasing business
Lease business revenue
Rent revenue
Common area maintenance revenue
Other lease business revenue
Utility reimbursement
Parking revenue
Other rental revenue

1,052,005
148,148
53,88532,164
7,172

Total operating revenue from real estate leasing
B. Operating expenses from real estate leasing
Expenses related to leasing businessTax and public dues
Maintenance fees
Utility expenses
Repair expenses
Insurance premiums
Depreciation
Other expenses related to rent business(Unit: thousand yen)
7th fiscal period
From: Mar. 1, 2021
To: Aug. 31, 2021

1,200,153

1,045,369
147,696

93,22253,72731,99026,681

1,293,375

133,386
84,33145,45631,927
3,517
134,838
22,854456,3121,193,065

112,400
1,305,465

137,163
86,581
48,62531,6103,602
137,139
36,982

481,704

Total operating expenses from real estate leasing

456,312

481,704

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

837,062

823,760- 15 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
[Notes on the Statement of Unitholders’ Equity]*1. Total number of investment units authorized and total number of investment units issued and outstanding

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

6th fiscal period
From: Sep. 1, 2020
To: Feb. 28, 2021

7th fiscal period
From: Mar. 1, 2021
To: Aug. 31, 2021

5,000,000 units

5,000,000 units

223,400 units

223,400 units[Notes on the Statement of Cash Flows]*1. Reconciliation of cash and cash equivalents at end of period to the amount of balance sheet items(Unit: thousand yen)
6th fiscal period
From: Sep. 1, 2020
To: Feb. 28, 2021

7th fiscal period
From: Mar. 1, 2021
To: Aug. 31, 2021

Cash and bank deposits
Cash and bank deposits in trust

986,598
1,881,240

973,089
1,904,372

Cash and cash equivalents

2,867,839

2,877,461[Notes on Financial Instruments]
1. Matters concerning status of financial instruments(1) Policy for handling financial instruments
XYMAX REIT shall procure funds for acquisition of assets, repayment of liabilities, etc. through issuance ofinvestment units, borrowing from financial institutions, issuance of investment corporation bonds, etc. Dueconsideration shall be given to the balance between agility in fund procurement and financial stability when
procuring funds.
Surplus funds may be invested in securities and monetary claims, but shall be invested as bank deposits as a rulein consideration of security.
Derivative transactions may be utilized only if for the purpose of hedging the risk of fluctuation in interest rates,
etc., but no speculative transactions shall be conducted.
(2) Description of financial instruments and associated risks, and risk management system
Bank deposits are those for investing XYMAX REIT’s surplus funds and are exposed to credit risk, such as failureof the depository financial institutions, but the credit risk is limited by limiting the deposit period to short term
and transacting with depository financial institutions that have high credit rating.
Loans are those for mainly the purpose of acquisition of real estate, etc., repayment of liabilities, etc. and are
exposed to the liquidity risk of not being able to procure substitute funds upon maturity, but the liquidity risk is
mitigated through diversification of fund procurement means and sources, staggering of maturities and securingliquidity on hand and the liquidity risk is also managed by preparing monthly fund management plans and othermeans. In addition, loans with floating interest rates are exposed to the risk of rise in interest rates payable, but
the impact of the rise in market interest rates on XYMAX REIT’s operations is limited by keeping the ratio ofinterest-bearing liabilities to total assets at a low level and maintaining a balance between the ratio of loans withfloating interest rates and the ratio of loans with fixed interest rates.
Derivative transactions are utilized for the purpose of hedging the risk of fluctuation in interest rates payable on
certain loans. For the hedge accounting approach, hedged items, contract amount, etc., please refer to “2. Mattersconcerning fair value, etc. of financial instruments.”
Tenant leasehold and security deposits are deposits from tenants and are exposed to liquidity risk from tenants
vacating, but the risk is limited by retaining an amount in the range that will not hinder the return of deposits as arule.

- 16 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
(3) Supplementary explanation to matters concerning fair value, etc. of financial instruments
The fair value of financial instruments is values based on market price, but may otherwise include values based onreasonable calculation when no market price is available. Variable factors are taken into account in the calculationof the concerned values. Accordingly, the concerned values may vary when different assumptions are adopted. In
addition, the contract amount, etc. of derivative transactions in “2. Matters concerning fair value, etc. of financial
instruments” do not itself represent the market risk involved in the derivative transactions.
2. Matters concerning fair value, etc. of financial instruments
The following are the carrying amount and fair value as of February 28, 2021, and the amount of difference between
these. Financial instruments for which estimation of fair value is recognized to be extremely difficult are not includedin the following table. (Please refer to Note 2 below.)(1) Cash and bank deposits(2) Cash and bank deposits in trust
Total assets(1) Short-term loans payable(2) Current portion of long-termborrowings(3) Long-term loans payable
Total liabilities

Carrying amount(thousand yen)

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

986,598
1,881,240

986,598
1,881,240-

2,867,839

2,867,839-

500,000
3,088,000

500,000
3,088,000-

9,192,000

9,200,968

8,968

12,780,000

12,788,968

8,968

-

-

-

Derivative transactions

The following are the carrying amount and fair value as of August 31, 2021, and the amount of difference between these.
Financial instruments for which estimation of fair value is recognized to be extremely difficult are not included in thefollowing table. (Please refer to Note 2 below.)(1) Cash and bank deposits(2) Cash and bank deposits in trust
Total assets(1) Short-term loans payable(2) Current portion of long-termborrowings(3) Long-term loans payable
Total liabilities

Carrying amount(thousand yen)

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

973,089
1,904,372

973,089
1,904,372-

2,877,461

2,877,461-

1,770,000
3,088,000

1,770,000
3,088,000-

9,192,000

9,200,751

8,751

14,050,000

14,058,751

8,751

-

-

-

Derivative transactions(Note 1) Method of calculation of the fair value of financial instruments and matters concerning derivative transactions
Assets(1) Cash and bank deposits; (2) Cash and bank deposits in trust
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thusstated at that book value.
Liabilities(1) Short-term loans payable
Because these are settled in a short period of time and have floating interest rates, the fair value is approximately thesame as the book value and thus stated at that book value.
(2) Current portion of long-term borrowings, (3) Long-term loans payable
Of long-term loans payable, because those with floating interest rates reflect market interest rates in a short period oftime, the fair value is thought to resemble the book value and thus stated at that book value. However, in the case oflong-term loans payable with floating interest rates that qualify for special treatment for interest rate swaps (pleaserefer to “Notes on Derivative Transaction” presented later in this document) and long-term loans payable with fixedinterest rates, the fair value is calculated based on the present value of their future cash flows discounted by the time
to maturity and rate adjusted for credit risks.
- 17 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
Derivative transactions
Please refer to “Notes on Derivative Transactions” below(Note 2) Financial instruments for which estimation of fair value is recognized to be extremely difficult
6th fiscal period
7th fiscal period(As of Feb. 28, 2021)(As of Aug. 31, 2021)
Tenant leasehold and security deposits-

33,349 thousand yen

Tenant leasehold and security deposits
in trust

1,241,265 thousand yen

1,267,943 thousand yen* Tenant leasehold and security deposits and tenant leasehold and security deposits in trust are not subject to disclosure of fair value, because
there being no market price and, even if the lease contract period has been set, there being the possibility of contract cancellation before
expiration or contract extension or renewal make calculating the actual deposit period impossible and reasonable projection of future cash
flows is thus recognized to be extremely difficult.

(Note 3) Amount of redemption of monetary claims scheduled to be due after the end of the fiscal period (February 28, 2021)(Unit: thousand yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

986,598

-

-

-

-

-

Cash and bank deposits in trust

1,881,240

-

-

-

-

-

Total

2,867,839

-

-

-

-

-

Cash and bank deposits

Due after
5 years

Amount of redemption of monetary claims scheduled to be due after the end of the fiscal period (August 31, 2021)(Unit: thousand yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

973,089

-

-

-

-

-

Cash and bank deposits in trust

1,904,372

-

-

-

-

-

Total

2,877,461

-

-

-

-

-

Cash and bank deposits

Due after
5 years(Note 4) Amount of repayment of loans scheduled to be due after the end of the fiscal period (February 28, 2021)(Unit: thousand yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

Short-term loans payable

500,000

-

-

-

-

-

Long-term loans payable

3,088,000

2,796,000

3,426,000

1,920,000

1,050,000-

3,588,000

2,796,000

3,426,000

1,920,000

1,050,000

-

Total

Due after
5 years

Amount of repayment of loans scheduled to be due after the end of the fiscal period (August 31, 2021)(Unit: thousand yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

Short-term loans payable

1,770,000

-

-

-

-

-

Long-term loans payable

3,088,000

2,796,000

3,426,000

1,920,000

1,050,000-

4,858,000

2,796,000

3,426,000

1,920,000

1,050,000

-

Total

- 18 -

Due after
5 years

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
［Notes on Derivative Transactions］
1. Derivative transactions to which hedge accounting is not applied
6th fiscal period (as of February 28, 2021)
Not applicable.
7th fiscal period (as of August 31, 2021)
Not applicable.
2. Derivative transactions to which hedge accounting is applied
6th fiscal period (as of February 28, 2021)
The following is the contract amount or the amount equivalent to the principal provided in the contract, etc. at the endof the fiscal period for each hedge accounting approach.
(Unit: thousand yen)
Hedge accounting
approach

Type, etc. of
derivative transaction

Main hedged
item

Special treatment forinterest rate swaps

Interest rate swap
transaction(receive floating; pay fixed)

Long-termloans payable

Contract amount, etc. (Note 1)
Of which,due after 1 year

Fair value

630,000(Note 2)630,000(Note 1)

Contract amount, etc. is based on notional principal.

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

7th fiscal period (as of August 31, 2021)
The following is the contract amount or the amount equivalent to the principal provided in the contract, etc. at the endof the fiscal period for each hedge accounting approach.
(Unit: thousand yen)
Hedge accounting
approach

Type, etc. of
derivative transaction

Main hedged
item

Special treatment forinterest rate swaps

Interest rate swap
transaction(receive floating; pay fixed)

Long-termloans payable

Contract amount, etc. (Note 1)
Of which,due after 1 year

Fair value

630,000(Note 2)630,000(Note 1)

Contract amount, etc. is based on notional principal.

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

[Notes on Tax-Effect Accounting]
1. Breakdown of main causes for occurrence of deferred tax assets and deferred tax liabilities(Unit: thousand yen)
6th fiscal period(As of Feb. 28, 2021)

7th fiscal period(As of Aug. 31, 2021)

Non-deductible accrued enterprise tax

13

13

Total

13

13

13

13

Deferred tax assets

Deferred tax assets, net- 19 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
2.

Breakdown of major components that caused any significant differences between the statutory tax rate and theeffective income tax rate after application of tax-effect accounting(Unit: %)Statutory tax rate
[Adjustments]
Distribution deductible for tax purposes
Other
Effective income tax rate after application of tax-effect accounting[Notes on Related-Party Transactions]
1. Parent company, major corporate unitholder, etc.
6th fiscal period (from September 1, 2020 to February 28, 2021)
Not applicable.
7th fiscal period (from March 1, 2021 to August 31, 2021)
Not applicable.
2. Affiliated company, etc.
6th fiscal period (from September 1, 2020 to February 28, 2021)
Not applicable.
7th fiscal period (from March 1, 2021 to August 31, 2021)
Not applicable.
3. Fellow subsidiary, etc.
6th fiscal period (from September 1, 2020 to February 28, 2021)
Not applicable.
7th fiscal period (from March 1, 2021 to August 31, 2021)
Not applicable.

- 20 -

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

7th fiscal period(As of Aug. 31, 2021)

31.46

31.46

(31.42)0.10(31.42)
0.10

0.14

0.14

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
4. Director, major individual unitholder, etc.
6th fiscal period (from September 1, 2020 to February 28, 2021)
Percentage of Description of relationship

Capital stockor
Attribute

Name ofcompany, etc.

Location

investments

business

etc.

Concurrent

Description of

in capitalorheld by (in)holding of

Description of transaction(thousandoccupationyen)

Balance

Transaction

Description of voting rights,

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

at end ofamount(thousandAccount itemyen)

period(thousandyen)(Note 2)

(Note 2)

Executive
Director of
XYMAX REIT,

Executive Director of

Asset

XYMAX REIT, andmanagement

Representative Director andfees, etc.

President of(Note 3)XYMAX REAL ESTATE(Note 4)andRepresentative

Director

Nobuhito
Inatsuki--

Director andPresident of

-

XYMAX

Accounts
86,863

payable -83,835

other

INVESTMENT ADVISORSREAL ESTATE

Corporation

INVESTMENTADVISORS
Corporation(Note 1) The above discloses a related-party transaction which includes a material transaction, among related-party
transactions subject to disclosure.
(Note 2) Of the amounts above, transaction amount does not include consumption tax, etc., while balance at end of period
includes consumption tax, etc.
(Note 3) The amount of asset management fees, etc. is for transactions conducted by Nobuhito Inatsuki as representative of
XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation, and transaction amount is based on the terms andconditions provided in XYMAX REIT’s Articles of Incorporation.
(Note 4) Asset management fees, etc. includes asset acquisition fees of 10,650 thousand yen which counted in the booked
acquisition price.
(Note 5) Transaction terms and conditions are determined based on the actual market situation.

7th fiscal period (from March 1, 2021 to August 31, 2021)
Percentage of Description of relationship

Capital stockor
Attribute

Name ofcompany, etc.

Location

investments

business

etc.

Concurrent

Description of

in capitalorheld by (in)holding of

Description of transaction(thousandoccupationyen)

Balance

Transaction

Description of voting rights,

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

at end ofamount(thousandAccount itemyen)

period(thousandyen)(Note 2)

(Note 2)

Executive
Director of
XYMAX REIT,

Executive Director ofandRepresentative

Director

ShotaroKanemitsu--

Director andPresident of
XYMAX
REAL ESTATEXYMAX REIT, andAsset

Representative Director andmanagement

President offees, etc.

XYMAX REAL ESTATE(Note 3)INVESTMENT ADVISORS(Note 4)-

Accounts
85,677payable -83,926other

Corporation

INVESTMENTADVISORS
Corporation(Note 1) The above discloses a related-party transaction which includes a material transaction, among related-party
transactions subject to disclosure.
(Note 2) Of the amounts above, transaction amount does not include consumption tax, etc., while balance at end of period
includes consumption tax, etc.
(Note 3) The amount of asset management fees, etc. is for transactions conducted by Shotaro Kanemitsu as representative of
XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation, and transaction amount is based on the terms andconditions provided in XYMAX REIT’s Articles of Incorporation.
(Note 4) Asset management fees, etc. includes asset acquisition fees of 9,380 thousand yen which counted in the booked
acquisition price.
- 21 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
(Note 5) Transaction terms and conditions are determined based on the actual market situation.
[Notes on Segment Information, Etc.]
1. Segment information
Segment information is omitted, because XYMAX REIT has a single segment, which is the real estate leasing business.
2. Related information
6th fiscal period (from September 1, 2020 to February 28, 2021)(1) Information by product and service
Information by product and service is omitted, because operating revenue to external customers for a single
products and services category is in excess of 90% of operating revenue on the statement of income.
(2) Information by geographic area(i) Operating revenue
Information by geographic area of operating revenue is omitted, because operating revenue to externalcustomers in Japan is in excess of 90% of operating revenue on the statement of income.
(ii) Property, plant and equipment
Information by geographic area of property, plant and equipment is omitted, because the amount of property,
plant and equipment located in Japan is in excess of 90% of the amount of property, plant and equipment on
the balance sheet.
(3) Information by major customer(Unit: thousand yen)

(Note)Name of customer

Operating revenue

Related segment

New Urban Life Holdings Inc.

Not disclosed (Note)

Real estate leasing businessNohara Holdings, Inc

Not disclosed (Note)

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

7th fiscal period (from March 1, 2021 to August 31, 2021)(1) Information by product and service
Information by product and service is omitted, because operating revenue to external customers for a single
products and services category is in excess of 90% of operating revenue on the statement of income.
(2) Information by geographic area(i) Operating revenue
Information by geographic area of operating revenue is omitted, because operating revenue to externalcustomers in Japan is in excess of 90% of operating revenue on the statement of income.
(ii) Property, plant and equipment
Information by geographic area of property, plant and equipment is omitted, because the amount of property,
plant and equipment located in Japan is in excess of 90% of the amount of property, plant and equipment on
the balance sheet.
(3) Information by major customer(Unit: thousand yen)

(Note)Name of customer

Operating revenue

Related segment

New Urban Life Holdings Inc.

Not disclosed (Note)

Real estate leasing businessNohara Holdings, Inc

Not disclosed (Note)

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

- 22 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
[Notes on Investment and Rental Properties]XYMAX REIT owns office, retail, hotel, and other properties for the purpose of earning revenue from leasing. The
carrying amount, amount of increase (decrease) during period and fair value of these investment and rental properties
are as follows:(Unit: thousand yen)
6th fiscal period
From: Sep. 1, 2020
To: Feb. 28, 2021

7th fiscal period
From: Mar. 1, 2021
To: Aug. 31, 2021

34,515,588

35,910,478

Balance at beginning of period

33,491,839

34,515,588

Amount of increase (decrease) during period

1,023,748

1,394,889

Balance at the end of the period

34,515,588

35,910,478

44,416,000

45,887,000

Carrying amount

Fair value at the end of the period(Note 1)

Carrying amount is the amount of cost of acquisition, less accumulated depreciation.

(Note 2)Of the amount of increase (decrease) during period for 6th fiscal period, the amount of increase is mainly attributable to theacquisition of one trust beneficiary right (1,085,958 thousand yen) and capital expenditure (72,627 thousand yen), while theamount of decrease is mainly attributable to depreciation (134,838 thousand yen). Of the amount of increase (decrease) during
period for 7th fiscal period, the amount of increase is mainly attributable to the acquisitions of one trust beneficiary right and one
actual real estate (1,229,746 thousand yen) and capital expenditure (302,282 thousand yen), while the amount of decrease is mainly
attributable to depreciation (137,139 thousand yen).

(Note 3)(Note 4)

Fair value at the end of the period is the appraisal value by an outside real estate appraiser.
Carrying amount does not include Construction in progress in trust.

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

[Notes on Per Unit Information]
6th fiscal period
From: Sep. 1, 2020
To: Feb. 28, 2021

7th fiscal period
From: Mar. 1, 2021
To: Aug. 31, 2021

Net assets per unit

104,011 yen

104,000 yen

Net income per unit

2,911 yen

2,899 yen

(Note 1)

Net income per unit for 7th fiscal period is calculated by dividing net income by the period’s daily weighted average number ofinvestment units. In addition, diluted net income per unit is not stated, because there are no diluted investment units.

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

6th fiscal period
From: Sep. 1, 2020
To: Feb. 28, 2021

7th fiscal period
From: Mar. 1, 2021
To: Aug. 31, 2021

650,336

647,859

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

Net income attributable to common investment units (thousand yen)

650,336

647,859

Average number of investment units during the period (units)

223,400

223,400

Net income (thousand yen)

[Notes on Significant Subsequent Events]
Not applicable.
[Omission of Disclosure]
Disclosure of notes on lease transactions, securities, retirement benefits, equity in net income and asset retirement
obligations is omitted since no substantial need for disclosure in the financial report is recognized.

- 23 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021

(9) Changes in Total Number of Investment Units Issued and Outstanding
Changes in unitholders’ capital and the total number of investment units issued and outstanding from the incorporationof XYMAX REIT to the last day of the fiscal period under review are as follows:

Date

Sep. 14, 2017
Feb. 14, 2018

Description

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

Unitholders’ capital(thousand yen)
Increase(Decrease)

Remarks

Balance

Incorporation throughprivate placement
Capital increase throughpublic offering

3,000

3,000

300,000

300,000(Note 1)

209,905

212,905

21,224,544

21,524,544(Note 2)

Third-party allotment

10,495

223,400

1,061,201

22,585,746(Note 3)Mar. 20, 2018
(Note 1)
(Note 2)XYMAX REIT was incorporated with issuance of investment units at an issue price of 100,000 yen per unit.
New investment units were issued through public offering at an issue price of 105,000 yen (paid-in amount of 101,115 yen) per unit

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

3. Reference Information(1) Investment Status

Type of asset

Use

Geographic area
(Note 1)Tokyo
Actual real
Retaileconomic area
estateTotal actual real estateTokyo central
5 wards
Tokyo 23
Officewards
Tokyo
economic areaTokyoeconomic area
Real estate in
Retail Cabinet ordertrust
designatedcitiesCabinet orderHoteldesignatedcitiesCabinet order
Other designatedcitiesTotal real estate in trust
Deposits and other assets(Note 4)
Total assets(Note 1)

6th fiscal period
As of Feb. 28, 2021
Total amount held(million yen)
(Note 2)

7th fiscal period
As of Aug. 31, 2021

As a percentage Total amount held(million yen)of total assets(Note 2)(%) (Note 3)

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

-

-

549

1.4

-

-

549

1.4

14,43838.4

15,133

38.8

1,173

3.1

1,170

3.0

2,599

6.9

2,671

6.9

8,193

21.8

8,300

21.3

1,083

2.9

1,081

2.8

4,277

11.4

4,255

10.9

2,749

7.3

2,748

7.1

34,515
3,120
37,636

91.7
8.3
100.0

35,3603,060
38,971

90.7
7.9
100.0

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

(Note 2)

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

- 24 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
(Note 3)“As a percentage of total assets” is rounded to one decimal place.

(Note 4)

Deposits and other assets include Construction in progress in trust.

6th fiscal period
As of Feb. 28, 2021
Amount(million yen)
(Note 1)
Total liabilities

7th fiscal period
As of Aug. 31, 2021

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

14,40038.3

Amount(million yen)
(Note 1)
15,737

As a percentage of
total assets(%) (Note 2)
40.4

Total net assets

23,236

61.7

23,233

59.6

Total assets

37,636100.0

38,971100.0(Note 1)

The total liabilities, total net assets and total assets amounts are based on the carrying amounts as of the book closing date, rounded
down to the nearest million yen.

(Note 2)

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

- 25 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021

Classification(2) Investment Assets
I. Itemization of Real Estate and Other Assets in the Portfolio
The assets held by XYMAX REIT (actual real estate or trust beneficiary rights that have real estate as trust assets;hereinafter, may be collectively referred to as the “portfolio assets”) as of August 31, 2021 are as follows:

Asset
no.
(Note
1)

OF-01
OF-02
OF-03

Office

OF-04
OF-05
OF-06

Asset name

XYMAX
Nishi-Shimbashi
Building
XYMAX
Iwamotocho
Building
XYMAX
Shinjuku-Gyoen
Building
XYMAX
Kamiyacho
Building
XYMAX
Higashi-Azabu
Building
XYMAX
Higashi-Ueno
Building

RetailShare ofportfolio(%)(Note 3)

Appraisal value(million yen)
(Note 4)

Ownership status

2,519

3,220

Trust beneficiaryrights

12.0

4,393

5,710

Trust beneficiaryrights

5,020

14.2

5,047

7,300

Trust beneficiaryrightsFeb. 16,
2018

880

2.5

892

1,260

Trust beneficiaryrightsMinato-ku,
TokyoFeb. 16,
2018

1,550

4.4

1,602

2,140

Trust beneficiaryrights

Taito-ku,Tokyo

Feb. 16,
2018

1,150

3.3

1,170

1,620

Trust beneficiaryrightsLocation

Minato-ku,
TokyoFeb. 16,
2018

2,500

7.1

Chiyoda-ku,
TokyoFeb. 16,
2018

4,250

Shinjuku-ku,
TokyoFeb. 16,2018

Minato-ku,
TokyoBook value at
end of period(million yen)

OF-07

XYMAX
Hachioji-shi,
Hachioji Building Tokyo

Feb. 16,
2018

2,600

7.4

2,671

3,570

Trust beneficiaryrightsOF-08

XYMAX Mita
Building

Minato-ku,
TokyoJul. 1,
2021

668

1.9

678

727

Trust beneficiaryrights--

18,61852.7

18,97425,547-

Subtotal/Average
RT-01

Muza Kawasaki

Kawasaki-shi,
Kanagawa

Feb. 16,
2018

4,100

11.6

4,078

5,310

Trust beneficiaryrights

RT-02

Life Kawasaki
Miyuki Store

Kawasaki-shi,
Kanagawa

Feb. 16,
2018

790

2.2

792

978

Trust beneficiaryrights

RT-03

Vita SeisekiSakuragaoka

Tama-shi,Tokyo

Feb. 16,
2018

3,100

8.8

3,428

3,860

Trust beneficiaryrights

RT-04

Life Fukuizumi
Store

Sakai-shi,
OsakaSep. 1,
2020

1,065

3.0

1,081

1,090

Trust beneficiaryrightsRT-05

The Park House
Totsuka Front(the RetailPortions of 1stand 2nd Floors)

Yokohama-shi,
Kanagawa

Jul. 1,
2021

540

1.5

549

622

Actual real estate

-

-

9,595

27.2

9,931

11,860-Sendai-shi,
MiyagiFeb. 16,
2018

4,400

12.5

4,255

5,200

Trust beneficiaryrights and movables
incidental to hotel

-

-

4,400

12.5

4,255

5,200

-

Fukuoka-shi,
FukuokaFeb. 16,
2018

2,700

7.6

2,748

3,280

Trust beneficiaryrightsSubtotal/Average

-

-

2,700

7.6

2,748

3,280

-

Total/Average--

35,313100.0

35,91045,887-

Subtotal/Average

Hotel

HT-01

Hotel Vista
SendaiSubtotal/Average

Other

Acquisition
price(millionyen)(Note 2)Acquisition
date

OT-01

Renaissance 21
Chihaya(Note 1)

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

(Note 2)“Acquisition price” is the amount (the amount of the sale and purchase price of the asset stated in sales and purchase agreement for eachportfolio asset) not including the various expenses required for the acquisition of the portfolio assets (brokerage fees, property taxes, etc.),(Note 3)rounded down to the nearest million yen. The sale and purchase price does not include consumption tax and local consumption tax.
“Share of portfolio” is the acquisition price of the portfolio asset expressed as a percentage of the total acquisition price of the portfolio assets,- 26 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
rounded to one decimal place.
(Note 4)

Appraisal of each property is entrusted to Japan Real Estate Institute, The Tanizawa Sō gō Appraisal Co., Ltd. and Daiwa Real Estate Appraisal
Co., Ltd. “Appraisal value” is the appraisal value stated in each real estate appraisal report with August 31, 2021 as the date of value.

- 27 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
II.

Status of Leasing

Asset no.

Asset nameConstructi Number ofon datetenants(Note 1)
(Note 2)

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

Leased area(m2)
(Note 5)

Leasable area(m2)
(Note 6)

Occupancy
rate(%)(Note 7)

OF-01

XYMAX
Nishi-Shimbashi Building

Aug. 22,
2000

8

77

108

1,897.92

1,897.92

100.0

OF-02

XYMAX
Iwamotocho Building

Mar. 22,
2001

13

138

178

3,825.18

4,152.40

92.1

OF-03

XYMAX
Shinjuku-Gyoen Building

Feb. 28,
2001

6

186

263

4,792.21

4,792.21

100.0

OF-04

XYMAX
Kamiyacho Building

Apr. 30,
1991

7

41

53

1,205.27

1,205.27

100.0

OF-05

XYMAX
Higashi-Azabu Building

Nov. 30,
1999

5

44

71

1,763.97

2,015.97

87.5

OF-06

XYMAX
Higashi-Ueno Building

Apr. 9,
1999

8

49

70

1,735.29

1,735.29

100.0

OF-07

XYMAX
Hachioji Building

Jan. 26,
1993

23

138

171

5,055.45

5,556.05

91.0

OF-08

XYMAX Mita Building

May 31,
1991

8

5

6

589.05741.41

79.4

RT-01

Muza Kawasaki

Jan. 7,
2004

18

171

216

3,703.88

3,703.88

100.0

RT-02

Life Kawasaki Miyuki Store

Jan. 13,
1997

1

Undisclosed(Note 8)

Undisclosed(Note 8)2,677.54

2,677.54

100.0

RT-03

Vita Seiseki-Sakuragaoka

Sep. 17,
1999

1

Undisclosed(Note 8)

Undisclosed(Note 8)27,610.61

27,610.61

100.0

RT-04

Life Fukuizumi Store

Dec. 17,
1996

1

Undisclosed(Note 8)

Undisclosed(Note 8)3,309.29

3,309.29

100.0

RT-05

The Park House Totsuka Front(the Retail Portions of 1st and2nd Floors)

May 23,2018

5

861.60861.60

100.0

HT-01

Hotel Vista Sendai

Mar. 14,2016

1

7,066.25

7,066.25

100.0

OT-01

Renaissance 21 Chihaya

Oct. 19,
2006

138

110

24

9,926.99

10,290.99

96.5

-

243

1,305

1,301

76,020.50

77,616.68

97.9

Total/Average

8
Undisclosed(Note 8)33
Undisclosed(Note 8)(Note 1)
(Note 2)

“Construction date” is the date of new construction of the main building stated in the real estate registry.
“Number of tenants” is the total of the number of tenants (the number of end-tenants if a pass-through type master lease contract has been

(Note 3)concluded) pertaining to the assets based on each lease contract concluded for each asset as of August 31, 2021.
“Operating revenue from leasing” is the total amount of rent revenue, common area maintenance revenue, parking revenue and other revenue(including other lease business revenue) generated from portfolio real estate during the fiscal period, rounded down to the nearest specified
unit.

(Note 4)

“Security deposit / Guarantee” is each asset’s total amount of security deposit and guarantee specified in all lease contracts pertaining to theassets concluded for each asset as of August 31, 2021, rounded down to the nearest specified unit.

(Note 5)

“Leased area” is the total leased area based on the lease contract and the building drawing, etc. attached to the lease contract for each asset asof August 31, 2021.

(Note 6)

“Leasable area” is the total leased area based on the lease contract and the building drawing, etc. attached to the lease contract for each asset
as of August 31, 2021 and the area based on the building drawing, etc. of vacant spaces.

(Note 7)(Note 8)

“Occupancy rate” is the ratio of leased area to leasable area for each asset as of August 31, 2021, rounded to one decimal place.
Not disclosed due to unavoidable circumstances in that consent for disclosure has not been obtained from the lessee.

- 28 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
III. Summary of Real Estate Appraisal Reports

Classification

Value based on income approach
Asset no.

Asset nameAppraiser(Note 2)

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

Retail(million yen)

XYMAX
Nishi-Shimbashi Building

Tanizawa Sō gō
Appraisal

3,220

3,350

3.6

3,160

3.7

3.8

OF-02

XYMAX
Iwamotocho Building

Japan Real Estate

5,710

5,830

3.5

5,590

3.3

3.7

OF-03

XYMAX
Shinjuku-Gyoen Building

Japan Real Estate

7,300

7,420

3.5

7,170

3.3

3.7

OF-04

XYMAX
Kamiyacho Building

Tanizawa Sō gō
Appraisal

1,260

1,300

3.7

1,240

3.8

3.9

OF-05

XYMAX
Higashi-Azabu Building

Daiwa Real EstateAppraisal

2,140

2,210

3.8

2,110

3.6

4.0

OF-06

XYMAX
Higashi-Ueno Building

Daiwa Real EstateAppraisal

1,620

1,640

3.9

1,610

3.7

4.1

OF-07

XYMAX
Hachioji Building

Japan Real Estate

3,570

3,610

4.8

3,520

4.6

5.0

OF-08

XYMAX Mita Building

Japan Real Estate

727

736

4.0

717

3.5

3.9

25,54726,096-25,117

-

-

5,310

5,320

4.1

5,300

4.2

4.3

978

992

4.2

972

4.0

4.4

RT-01

Muza Kawasaki

Tanizawa Sō gō
Appraisal

RT-02

Life Kawasaki Miyuki Store

Daiwa Real EstateAppraisal

RT-03

Vita Seiseki-Sakuragaoka

Tanizawa Sō gō
Appraisal

3,860

3,770

5.0

3,900

5.1

5.2

RT-04

Life Fukuizumi Store

Daiwa Real EstateAppraisal

1,090

1,100

4.5

1,080

4.3

4.7

RT-05

The Park House Totsuka
Tanizawa Sō gō
Front(the Retail Portions of 1st an Appraisal
2nd Floors)

622

626

4.5

620

4.6

4.7

11,86011,808-

11,872

-

-

5,200

5,260

5.0

5,180

4.9

5.0

5,200

5,260

-

5,180

-

-

3,280

3,340

4.8

3,250

4.9

5.0

Subtotal/Average

3,280

3,340

-

3,250

-

-

Total/Average

45,88746,504-45,419--Subtotal/Average

HotelTerminal
capitalization
rate
(%)

Discount
rate
(%)

OF-01

Subtotal/Average

Other

Value
based onDCF
methodHT-01

Hotel Vista Sendai

Tanizawa Sō gō
Appraisal

Subtotal/Average
OT-01

Renaissance 21 Chihaya

Tanizawa Sō gō
Appraisal(Note 1)The date of value for the real estate appraisal reports is August 31, 2021.

(Note 2)

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

- 29 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
IV. Summary of Engineering Reports and Seismic Risk Evaluation Reports
Engineering report

Seismic risk evaluation report

Asset no.

Asset name

Inspection
company(Note 1)

Inspection
date

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

OF-01

XYMAX
Nishi-Shimbashi Building

Sompo Risk
Management Inc.

Nov. 30,
2017

-

OF-02

XYMAX
Iwamotocho Building

Nov. 30,
2017

-

OF-03

XYMAX
Shinjuku-Gyoen Building

Nov. 30,
2017

-

OF-04

XYMAX
Kamiyacho Building

Earth-Appraisal
Co., Ltd.

Nov. 30,
2017

-

OF-05

XYMAX
Higashi-Azabu Building

Earth-Appraisal
Co., Ltd.

Nov. 30,
2017

-

OF-06

XYMAX
Higashi-Ueno Building

Earth-Appraisal
Co., Ltd.

Nov. 30,
2017

-

OF-07

XYMAX
Hachioji Building

Sompo Risk
Management Inc.

Nov. 30,
2017

-

OF-08

XYMAX Mita Building

Tokio Marine &Nichido Risk
Consulting Co.,
Ltd..

Jun.10,
2021

-

RT-01

Muza Kawasaki

Earth-Appraisal
Co., Ltd.

Nov. 30,
2017

-

RT-02

Life Kawasaki Miyuki Store

Daiwa Real EstateAppraisal Co., Ltd.

Nov. 30,
2017

-

RT-03

Vita Seiseki-Sakuragaoka

Daiwa Real EstateAppraisal Co., Ltd.

Nov. 30,
2017

-

RT-04

Life Fukuizumi Store

Tokio Marine &Nichido Risk
Consulting Co.,
Ltd..

Aug. 24,
2020

-

RT-05

The Park House Totsuka
Front(the Retail Portions of 1stand 2nd Floors)

Sompo Risk
Management Inc.

Jun.10,
2021

-

HT-01

Hotel Vista Sendai

Daiwa Real EstateAppraisal Co., Ltd.

Nov. 30,
2017

-

OT-01

Renaissance 21 Chihaya

Tokio Marine &Nichido Risk
Consulting Co.,
Ltd..

Nov. 30,
2017-

Tokio Marine &Nichido Risk
Consulting Co.,
Ltd..
Tokio Marine &Nichido Risk
Consulting Co.,
Ltd..

Total

-

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

Tokio Marine &Nichido Risk
Consulting Co.,
Ltd..
Tokio Marine &Nichido Risk
12,297
Consulting Co.,
Ltd..
Tokio Marine &Nichido Risk
10,665
Consulting Co.,
Ltd..
Tokio Marine &Nichido Risk
7,737
Consulting Co.,
Ltd..
Tokio Marine &Nichido Risk
4,282
Consulting Co.,
Ltd..
Tokio Marine &Nichido Risk
2,820
Consulting Co.,
Ltd..
Tokio Marine &Nichido Risk
13,742
Consulting Co.,
Ltd..
Tokio Marine &Nichido Risk
5,232
Consulting Co.,
Ltd..
Tokio Marine &Nichido Risk
13,357
Consulting Co.,
Ltd..
Tokio Marine &Nichido Risk
3,662
Consulting Co.,
Ltd..
Tokio Marine &Nichido Risk
150,664
Consulting Co.,
Ltd..
Tokio Marine &Nichido Risk
3,626
Consulting Co.,
Ltd..
Tokio Marine &Nichido Risk
2,422
Consulting Co.,
Ltd..
Tokio Marine &Nichido Risk
8,071
Consulting Co.,
Ltd..
Tokio Marine &Nichido Risk
13,916
Consulting Co.,
Ltd..
4,503

256,997

Inspection PML value
date
(%)

Nov. 2017

6.1

Nov. 2017

5.2

Nov. 2017

4.5

Nov. 2017

3.8

Nov. 2017

3.4

Nov. 2017

5.1

Nov. 2017

3.9

Jun. 2021

2.6

Nov. 2017

1.2

Nov. 2017

7.0

Nov. 2017

2.1

Aug. 2020

14.7

Jun. 2021

6.7

Nov. 2017

1.7

Nov. 2017

1.7

Entire portfolio (Note 5)

1.8(Note 1)

Inspection company are the names when the inspection was performed.

(Note 2)
(Note 3)

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

estimates of repair costs deemed necessary within one year from the date of the engineering report.
“Long-term repair cost” refers to the cost for repair or upgrading to maintain functions and safe operations against the deterioration with age
and indicates the total amount of repair/upgrading costs deemed necessary within 12 years from the date of the engineering report, which is- 30 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
the annual average calculated by the Asset Management Company, rounded to the nearest thousand yen. For Muza Kawasaki, Vita SeisekiSakuragaoka and The Park House Totsuka Front (the Retail Portions of 1st and 2nd Floors), amounts corresponding to the ownership ratios(6.9%, 49.6% and 12.3% respectively, rounded down to one decimal place) are indicated. The ownership ratios are rounded down to one(Note 5)decimal place.
“Entire portfolio” is a PML value for a group of the 15 portfolio assets, obtained in the same manner as for each property based on the seismic
risk evaluation (portfolio) report dated June 2021 prepared by Tokio Marine & Nichido Risk Consulting Co., Ltd.

- 31 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
V. Capital Expenditures(A) Schedule of Capital Expenditures
Of capital expenditures associated with renovation work, etc. currently planned for assets held by XYMAX REIT as ofthe end of the fiscal period under review, the following are the major estimated amounts. The estimated construction
costs below may include the portion separately booked as expenses in accounting.
Estimated construction costs(thousand yen)
Name ofreal estate, etc.

XYMAX
Iwamotocho
Building

Vita SeisekiSakuragaoka

Amount ofpayment
duringperiodTotalamountalready
paid

Location

PurposeScheduled period

Chiyoda-ku,
Tokyo

Renewal of air
conditioners

From: July 2022
To: July 2022

53,720--Tama-shi,Tokyo

Overhaul & partsexchange ofParking A(located on
basement floor)

From: July 2022
To: July 2022

54,335--Total
amount(B) Capital Expenditures during the Fiscal Period
The construction work, etc. falling under the category of capital expenditures conducted in the fiscal period underreview for assets held by XYMAX REIT as of the end of the fiscal period under review amounted to 302,282 thousand
yen. Combined with repair expenses booked as expenses in the fiscal period under review (31,610 thousand yen),construction work, etc. totaling 333,892 thousand yen was conducted.
Major construction works as capital expenditure for assets held by XYMAX REIT during the fiscal period under review
are as follows;

Name ofreal estate, etc.

Estimated
PurposeScheduled period

Tama-shi,Tokyo

Replacement of
automatic fire
alarm system

From: March 2021
To: March 2021

65,953

Vita SeisekiSakuragaoka

Tama-shi,Tokyo

Overhaul & partsexchange ofParking A(located on
basement floor)

From: July 2021
To: July 2021

38,025XYMAX
Hachioji
Building

Hachioji-shi,Tokyo

Exterior wall
repair work

From: July 2021
To: July 2021

82,651

Vita SeisekiSakuragaoka

Location- 32 -

construction costs(thousand yen)

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
VI. Property Overview and Earnings/Expenses of PropertiesXYMAX Nishi‐Shimbashi Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
Periodfrom March 1, 2021
to August 31, 2021

Acquisition Price

2,500 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

67,344

Location

2-6-2 Nishi-Shimbashi, Minato-ku,
Tokyo

Other lease businessrevenue

9,760

Lot Number

2-10-30 Nishi-Shimbashi, Minato-ku,
Tokyo, and otherTotal operating revenue
from real estate leasing

77,105

Building Coverage Ratio

80%

Floor-Area Ratio

700%

Tax and public duesLand Use District

Commercial district

Maintenance fees

6,948
5,144

Site Area

402.53 m2

Utility expenses

3,638

Type of ownership

Ownership

Repair expenses

2,629

Construction Date

August 22, 2000

Insurance premiums

Structure/Number of Floors

Reinforced concrete structure withflat roof 9F

Depreciation

2,734

Total Floor Area

2,517.50 m2

Other expenses related
to lasing business

4,802

ArchitectRUI SEKKEISHITSU Co., Ltd.

Total operating expenses
from real estate leasing

25,960

Builder

Fujiki Komuten Co., Ltd.

(3) NOI

53,879Ownership(4) Operating income (loss)
from real estate leasing

51,145

Land(2) Operating expenses from real estate leasing

Building

Type of Ownership
ML Company-

PM Company

XYMAX ALPHA Corporation(Note )62

Notes:
There is a 2-meter setback from the centerline of the road on the south side of the property. However, the Site Area includes the setback
portion (33.96 m2).
(Note ) XYMAX Corporation and XYMAX ALPHA Corporation will merge effective as of November 1, 2021 and XYMAX Corporation will be asurviving corporation. The same shall apply hereinafter.

- 33 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
XYMAX Iwamotocho Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
Periodfrom March 1, 2021
to August 31, 2021

Acquisition Price

4,250 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

123,264

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

Other lease businessrevenue

15,300Total operating revenue
from real estate leasing

138,564

LocationLand

Building

Lot Number

2-175-2 Iwamotocho, Chiyoda-ku,
Tokyo

Building Coverage Ratio

80%

Floor-Area Ratio

800%、600%

Tax and public duesLand Use District

Commercial district

Maintenance fees

13,47910,041Site Area

864.83 m2

Utility expenses

7,133Type of ownership

Ownership

Repair expenses

4,995(2) Operating expenses from real estate leasing

221

Construction Date

March 22, 2001

Insurance premiums

Structure/Number of Floors

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

Depreciation

14,693

Total Floor Area

6,261.06 m2

Other expenses related
to lasing business

3,282

Architect

Nikken Sekkei Ltd.

Total operating expenses
from real estate leasing

53,848

Builder

Kumagai-Sumitomo Construction
Consortium

Type of Ownership

Ownership

ML Company

Godo Kaisha ML2

PM Company

XYMAX ALPHA Corporation

Notes:
None- 34 -(3) NOI

99,409(4) Operating income (loss)
from real estate leasing

84,715XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
XYMAX Shinjuku‐Gyoen Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
Periodfrom March 1, 2021
to August 31, 2021

Acquisition Price

5,020 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

174,465

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

Other lease businessrevenue

12,359Total operating revenue
from real estate leasing

186,825

LocationLand

Lot Number

1-1-8 Shinjuku, Shinjuku-ku, andother

Building Coverage Ratio

80%(2) Operating expenses from real estate leasing

Floor-Area Ratio

700%

Tax and public duesLand Use District

Commercial district

Maintenance fees

14,342
11,648Site Area

839.09 m2

Utility expenses

7,118Type of ownership

Ownership

Repair expenses

3,240

Construction Date

February 28, 2001

Insurance premiums
Depreciation

11,143Structure/Number of Floors

Steel-construction / Reinforced
concrete structure with flat roof
B1F/9F

Total Floor Area

6,084.32 m2

Other expenses related
to leasing business

2,078

Architect

U Associates Co., Ltd.

Total operating expenses
from real estate leasing

49,784

Builder

Kajima-Oriental Construction
Consortium

Type of Ownership

Ownership

Building

ML Company

Godo Kaisha ML2

PM Company

XYMAX ALPHA Corporation

Notes:
None- 35 -

213(3) NOI

148,183(4) Operating income (loss)
from real estate leasing

137,040

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
XYMAX Kamiyacho Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
Periodfrom March 1, 2021
to August 31, 2021

Acquisition Price

880 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

38,445

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

Other lease businessrevenue

3,374

Lot Number

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

Total operating revenue
from real estate leasing

41,820

Building Coverage Ratio

80%

LocationLand

Building(2) Operating expenses from real estate leasing

Floor-Area Ratio

600%

Tax and public duesLand Use District

Commercial district

Maintenance fees

4,615
4,524

Site Area

228.83m2

Utility expenses

2,113Type of ownership

Ownership

Repair expenses

1,541
46

Construction Date

April 30, 1991

Insurance premiums

Structure/Number of Floors

Steel-construction with flat roof 8F

Depreciation

Total Floor Area

1,356.51m2

Other expenses related
to leasing businessArchitect

HASEKO Corporation

Builder

HASEKO Corporation(3) NOI

28,434

Type of Ownership

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

27,061

ML Company

XYMAX ALPHA Corporation

PM Company

XYMAX ALPHA Corporation

Notes:
None- 36 -

Total operating expenses
from real estate leasing

1,373
543
14,758XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
XYMAX Higashi‐Azabu Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
Periodfrom March 1, 2021
to August 31, 2021

Acquisition Price

1,550 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

39,243

Location

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

Other lease businessrevenue

5,306

Lot Number

1-5-11 Higashi-Azabu, Minato-ku,
TokyoTotal operating revenue
from real estate leasing

44,549Building Coverage Ratio

80%

Floor-Area Ratio

600%

Tax and public duesLand Use District

Commercial district

Maintenance fees

6,438
5,581

Site Area

365.05 m2

Utility expenses

2,270Type of ownership

Ownership

Repair expenses

565

Construction Date

November 30, 1999

Insurance premiums

82

Structure/Number of Floors

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

Depreciation

5,816

Total Floor Area

2,570.13 m2

Other expenses related
to leasing business

3,893

ArchitectTokyo Branch of TOZAI KENCHIKUSERVICE CO., LTD.

Total operating expenses
from real estate leasing

24,648

Builder

Kanto Branch of Maeda Corporation(3) NOI

25,716

Type of Ownership

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

19,900Land

Building(2) Operating expenses from real estate leasing

ML Company

XYMAX ALPHA Corporation

PM Company

XYMAX ALPHA Corporation

Notes:
None- 37 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
XYMAX Higashi‐Ueno Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
Periodfrom March 1, 2021
to August 31, 2021

Acquisition Price

1,150 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

43,172

Location

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

Other lease businessrevenue

5,861

Total operating revenue
from real estate leasing

49,033

Lot NumberLand

1-22-11 Higashi-Ueno, Taito-ku,
Tokyo, and other

Building Coverage Ratio

80%

Floor-Area Ratio

600%、500%(2) Operating expenses from real estate leasing
Tax and public duesLand Use District

Commercial district

Maintenance fees

3,695
4,265

Site Area

368.84 m2

Utility expenses

2,765

Type of ownership

Ownership

Repair expenses

1,584

Construction Date

April 9, 1999

Insurance premiums

Structure/Number of Floors

Steel-framed reinforced concrete
structure with flat roof 8F

Depreciation

Total Floor Area

1,942.54 m2

Architect

Architect 5 Partnership

BuilderTokyo Branch of Kajima Corporation(3) NOI

36,073

Type of Ownership

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

32,884

Building

ML Company

XYMAX ALPHA Corporation

PM Company

XYMAX ALPHA Corporation

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

- 38 -

60
3,189

Other expenses related
to leasing business

590

Total operating expenses
from real estate leasing

16,149XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
XYMAX Hachioji Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
Periodfrom March 1, 2021
to August 31, 2021

Acquisition Price

2,600 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

Lease business revenue

111,086

Location25-6 Yokoyamacho, Hachioji-shi,Tokyo

Other lease businessrevenue

27,862

Total operating revenue
from real estate leasing

138,949

Land

Building

Lot Number

3-2 Yokoyamacho, Hachioji-shi, Tokyo,
and other

Building Coverage Ratio

80%

Floor-Area Ratio

600%

Land Use District

Commercial district

Maintenance fees

8,377
15,648Site Area

1,220.58 m2

Utility expenses

6,549

Type of ownership

Ownership

Repair expenses

2,284

Construction Date

January 26, 1993

Insurance premiums

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

Depreciation

10,460

Structure/Number of Floors
Total Floor Area

7,404.81 m2

Other expenses related
to leasing business

4,472

Architect

NIHON SEKKEI Inc.

Total operating expenses
from real estate leasing

48,068

Builder

MATSUMURA-GUMI Corporation(3) NOI

101,340

Type of Ownership

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

90,880(2) Operating expenses from real estate leasing
Tax and public dues

ML Company

Godo Kaisha ML1

PM Company

XYMAX ALPHA Corporation

Notes:
None- 39 -

276

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
XYMAX Mita Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

July 1, 2021

Management
Periodfrom July 1, 2021
to August 31, 2021

Acquisition Price

668 million yen

Number ofoperating days

62 daysType of Specified Asset

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

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

LocationLand

Building

Lease business revenue

5,046

5-13-11 Shiba, Minato-ku,Tokyo

Other lease businessrevenue381

Lot Number

5-3-39 Shiba, Minato-ku,Tokyo

Total operating revenue
from real estate leasing

5,428

Building Coverage Ratio

80%

Floor-Area Ratio

600%

Land Use District

Commercial district

Maintenance fees

900

Site Area

137.02 m2

Utility expenses

337

Type of ownership

Ownership

Repair expenses

2,100

Construction Date

May 31, 1991

Insurance premiums

12

Structure/Number of Floors

Steel-construction with flat roof 10F

Depreciation

Total Floor Area

799.78 m2

Other expenses related
to leasing business

349
162

Architect

KOKEN ARCHITECTS, INC.

Builder

Tosei Corporation(3) NOI

1,915

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

1,565Type of Ownership(2) Operating expenses from real estate leasing
Tax and public dues

ML Company

Godo Kaisha ML1

PM Company

XYMAX ALPHA Corporation

Notes:
None- 40 -

Total operating expenses
from real estate leasing

3,862

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
Muza Kawasaki

Category

RetailOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
Periodfrom March 1, 2021
to August 31, 2021

Acquisition Price

4,100 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

151,731

Location

1310 Omiyacho, Saiwai-ku, Kawasakishi, Kanagawa

Other lease businessrevenue

19,8041310 Omiyacho, Saiwai-ku, Kawasakishi, Kanagawa

Total operating revenue
from real estate leasing

171,536

Lot Number

Land

Building

Building Coverage Ratio

80%

Floor-Area Ratio

600%、400%

Tax and public dues

Commercial district

Maintenance fees

10,543
14,909Land Use District(2) Operating expenses from real estate leasing

Site Area

10,669.34 m2 (Note 1)

Utility expenses

14,203

Repair expenses

176

Type of ownership

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

Construction Date

January 7, 2004

Insurance premiums

191

Depreciation

Structure/Number of Floors

Steel-framed/Steel-framed reinforced
concrete structure with flat
roof/stainless steel plate roofing
B2F/27F

Total Floor Area

108,955.90 m2 (Note 2)

Architect

Kanagawa Area Branch of Urban
Development Corporation

Builder

Shimizu-Taisei-Ando Construction
Consortium

Type of Ownership

Sectional ownership

ML Company

XYMAX ALPHA Corporation

PM Company

XYMAX ALPHA Corporation

17,737

Other expenses related
to leasing business529

Total operating expenses
from real estate leasing

58,292(3) NOI

130,980(4) Operating income (loss)
from real estate leasing

113,243

Notes:
None(Note 1) Although the subject asset is a sectional ownership building, Site Area above represents the entire site area of the building.
XYMAX REIT owns 742.44 m2 , approx. 6.9% of 10,669.34 m2..
(Note 2) Although the subject asset is a sectional ownership building, Total Floor Area above represents the entire floor area of the building
including the subject asset. Exclusive spaces owned by XYMAX REIT is 3,671.09 m2 (registered area) in total of the owned sectional
ownership building.

- 41 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
Life Kawasaki Miyuki Store

Category

RetailOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
Periodfrom March 1, 2021
to August 31, 2021

Acquisition Price

790 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

Lease business revenue

Undisclosed

Location

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

Other lease businessrevenue

Undisclosed

4-94-1 Komukai-nishimachi, Saiwaiku, Kawasaki-shi, Kanagawa, andother

Total operating revenue
from real estate leasing

Undisclosed

Lot Number
Building Coverage Ratio

80%、60%Floor-Area Ratio

200%

Tax and public dues

Undisclosed

Land Use District

Neighborhood commercial district,
category 1 residential districts

Maintenance fees

Undisclosed

Site Area

1,879.15 m2

Utility expenses

Undisclosed

Type of ownership

Ownership

Repair expenses

Undisclosed

Construction Date

January 13, 1997

Insurance premiums

Undisclosed

Steel-construction with flat roof 2F

Depreciation

Total Floor Area

2,596.80 m2

Other expenses related
to leasing business

Undisclosed

ArchitectTokyo First-class Architect Office,Takenaka Corporation

Total operating expenses
from real estate leasing

Undisclosed

Builder

Yokohama Branch of Takenaka
Corporation

Type of Ownership

Ownership

Land

Structure/Number of Floors

Building(2) Operating expenses from real estate leasing

ML Company-

PM Company

XYMAX ALPHA Corporation

1,570(3) NOI

22,726(4) Operating income (loss)
from real estate leasing

21,156

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

- 42 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
Vita Seiseki‐Sakuragaoka

Category

RetailOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
Periodfrom March 1, 2021
to August 31, 2021

Acquisition Price

3,100 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

Location
Lot Number

Land

Building

Lease business revenue

Undisclosed

4-72 Sekido, Tama-shi, Tokyo

Other lease businessrevenue

Undisclosed

4-72 Sekido, Tama-shi, Tokyo

Total operating revenue
from real estate leasing

Undisclosed

Building Coverage Ratio

80%

Floor-Area Ratio

500%(2) Operating expenses from real estate leasing
Tax and public dues

Undisclosed

Land Use District

Commercial district

Maintenance fees

Undisclosed

Site Area

9,003.26m2 (Note 1)

Utility expenses

Undisclosed

Repair expenses

Undisclosed

Type of ownership

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

Undisclosed

Construction Date

September 17, 1999

Insurance premiums
Depreciation

Structure/Number of Floors

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

Total Floor Area

62,849.56 m2 (Note 2)

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

Builder

Toda-Tokyu-ICHIKEN Construction
Consortium(3) NOI

166,342(4) Operating income (loss)
from real estate leasing

144,473

Type of Ownership

Sectional ownership (however, forhouse numbers 72-3 and 72-7, coownership interest of
937,995/1,000,000 and
591,485/1,000,000, respectively)

ML Company-

PM Company

XYMAX ALPHA Corporation

21,868Other expenses related
to leasing business

Undisclosed

Total operating expenses
from real estate leasing

Undisclosed

Notes:As to the part of the building (house numbers 72-3 and 72-7), an agreement on the following matters has been concluded with the co-ownersof the sections.
· Non-division covenant for five years from the conclusion date (renewed automatically unless any one of the co-owners claims not to renew
at least six months prior to the expiration date)· When transferring or dispositioning by other means the co-ownership interest, the party must notify other co-owners (hereinafter, the“Counterparties”) of such at least one month prior to the transfer or disposition in writing. The Counterparties shall have the preferential
negotiation right to purchase the said co-ownership interest within 20 business days after the notice, and such purchase shall be effective after
two months of a written notice stating exercise of right-to-purchase (hereinafter, the “Notice of Exercising Right-to-Purchase”) reaching theparty wishing to transfer the co-ownership interest. In such a case, the price shall be the value on an as-is basis, and if the parties do not reachan agreement on the price, the price shall be the real estate appraisal value as of the date of the Notice of Exercising Right-to-Purchase delivered
to the party wishing to transfer the co-ownership interest.
(Note 1) Although the subject asset is a sectional ownership building, Site Area above represents the entire site area of the building.
XYMAX REIT owns 4,467.51m2, approx. 49.6% of 9,003.26 m2.
(Note 2) Although the subject asset is a sectional ownership building, Total Floor Area above represents the entire floor area of the building
Including the subject asset.
Exclusive spaces owned by XYMAX REIT is 27,161.00m2 (registered area) in total (provided that, the area of 2 common-ownership
lots of house number 72-3 and 72-7 is calculated by multiplying ownership ratio of 937,995/1,000,000 and 591,485/1,000,000,
respectively)of the owned sectional ownership building.

- 43 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
Life Fukuizumi Store

Category

RetailOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

September 1, 2020

Management
Periodfrom March 1, 2021
to August 31, 2021

Acquisition Price

1,065 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

Lease business revenue

Undisclosed

Location

444-1, Kami, Nishi-ku, Sakai-shi,
Osaka

Other lease businessrevenue

Undisclosed

444-1, Kami, Nishi-ku, Sakai-shi,
Osaka

Total operating revenue
from real estate leasing

Undisclosed

Lot Number

Land

Building

Building Coverage Ratio

60%

Floor-Area Ratio

200%(2) Operating expenses from real estate leasing
Tax and public duesLand Use District

Category 1 residential districts

Maintenance fees

Undisclosed

Site Area

6,225.21 m

Utility expenses

Undisclosed

Type of ownership

Ownership

Repair expenses

Undisclosed
Undisclosed

2

Undisclosed

Construction Date

December 17, 1996

Insurance premiums

Structure/Number of Floors

Steel-construction with flat roof 2F

Depreciation

Total Floor Area

3,358.26 m2

Other expenses related
to leasing business

Undisclosed

Total operating expenses
from real estate leasing

Undisclosed

Architect

KAJIMA CORPORATION

2,223

Builder

KAJIMA CORPORATION(3) NOI

25,635

Type of Ownership

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

23,412ML Company

XYMAX REIT Investment Corporation

PM Company

XYMAX KANSAI Corporation

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

- 44 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
The Park House Totsuka Front(the Retail Portions of 1st and 2nd Floors)

Category

RetailOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

July 1, 2021

Management
Periodfrom July 1, 2021
to August 31, 2021

Acquisition Price

540 million yen

Number ofoperating days

62 daysType of Specified Asset

Actual Real Estate(1) Operating expenses from real estate leasing

Trustee-

Lease business revenue

7,735

Location

4018-1 Totsuka-cho, Totsuka-ku,
Yokohama-shi, Kanagawa

Other lease businessrevenue963

Total operating revenue
from real estate leasing

8,699

Land

Lot Number

4022-1 Totsuka-cho, Totsuka-ku,
Yokohama-shi, Kanagawa, and other

Building Coverage Ratio

80%

Floor-Area Ratio

600%

Tax and public duesLand Use District

Commercial district

Maintenance fees

1,692

Site Area

1,595.49 m2 (Note 1)

Utility expenses

924

Co-ownership interest in ownershipright (ratio of right of site:
Approximately 12.3%)

Repair expenses

15

Type of ownership
Construction Date

May 23, 2018

Insurance premiums

Structure/Number of Floors

Reinforced concrete structure withflat roof B1F/14F

Depreciation

Total Floor Area

12,236.50 m2 (Note 2)

Architect

Fujita Corporation 1st Class Architects
OfficeBuilder

Fujita Corporation(3) NOI

6,046

Sectional ownership(4) Operating income (loss)
from real estate leasing

4,792

Building

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

ML Company

XYMAX ALPHA Corporation

PM Company

XYMAX ALPHA Corporation

-

17
1,254

Other expenses related
to leasing business2

Total operating expenses
from real estate leasing

3,906

Notes:
The asset may not change the designated use, not be transferred and loaned to a third party until Sep. 30, 2023, unless approved by
Yokohama City in writing. However, in the case Yokohama City approves, transfer and loan to the third party may be possible.
The management association leases a part of the roof free of charge to Tsunagu Network Communications, Inc. (hereinafter Tsunagu Net)
under a temporary loan for use agreement. Tsunagu Net installed its solar power generation equipment and is supplying electricity to thecommon area of the asset.
(Note 1) Although the subject asset is a sectional ownership building, Site Area above represents the entire site area of the building.
XYMAX REIT owns 197.84 m2, approx. 12.3% of 1,595.49 m2.
(Note 2) Although the subject asset is a sectional ownership building, Total Floor Area above represents the entire floor area of the building
including the subject asset.
Exclusive spaces owned by XYMAX REIT is 1,080.19 m2 (registered area) in total of the owned sectional ownership building.

- 45 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021

Hotel Vista Sendai

Category

Hotel

Overview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
Periodfrom March 1, 2021
to August 31, 2021

Acquisition Price

4,400 million yen

Number ofoperating days

184 days

Type of Specified Asset

Trust beneficiary right and movables
property incidental to hotel

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

Lease business revenue

Undisclosed

Location

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

Other lease businessrevenue

Undisclosed

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

Undisclosed

Lot Number

Land

Building Coverage Ratio

80%

Floor-Area Ratio

500%

Tax and public dues

Undisclosed

Land Use District

Commercial district

Maintenance fees

Undisclosed

Site Area

1,461.36 m

Utility expenses

Undisclosed

Type of ownership

Ownership (partial surface right)

Repair expenses

Undisclosed

Construction Date

March 14, 2016

Insurance premiums

Undisclosed

Steel-construction with flat roof 12F

Depreciation

Total Floor Area

6,977.47 m2

Other expenses related
to leasing business

Undisclosed

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

Total operating expenses
from real estate leasing

Undisclosed

Builder

Tohoku Branch of Maeda Corporation(3) NOI

33,497

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

10,870

Structure/Number of Floors

Building(1) Operating expenses from real estate leasing

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

2

ML Company-

PM Company

XYMAX ALPHA Corporation

22,626

Notes:
Sendai City has sectional surface rights to part of the land (lot number 7-18) aimed at the ownership of facilities required for high-speed
railway business. No ground rent arises under this surface right.
(Note) The Site Area includes 524.21 m2 of surface right.

- 46 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2021
Renaissance 21 Chihaya

Category

Other (residential)

Overview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
Periodfrom March 1, 2021
to August 31, 2021

Acquisition Price

2,700 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

Lease business revenue

103,092

Location

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

Other lease businessrevenue

7,843

Lot Number

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

110,936

Building Coverage Ratio

80%

Floor-Area Ratio

400%

Tax and public duesLand Use District

Commercial district

Maintenance fees

8,678
8,023

Site Area

2,644.63 m2

Utility expenses

1,569

Type of ownership

Ownership

Repair expenses

2,616

Construction Date

October 19, 2006

Insurance premiums

Structure/Number of Floors

Steel-framed reinforced concrete
structure with flat roof 14F

Depreciation

20,098

Total Floor Area

10,856.15 m2

Other expenses related
to leasing business

9,035

Architect

Tei Architectural Design OfficeTotal operating expenses
from real estate leasing

50,318

Builder

Kyushu Branch of Nishimatsu
Construction Co., Ltd.

Type of Ownership

OwnershipLand

Building(2) Operating expenses from real estate leasing

ML Company

Miyoshi Asset Management Co., Ltd.

PM Company

Miyoshi Asset Management Co., Ltd.

Notes:
None- 47 -

296(3) NOI

80,716(4) Operating income (loss)
from real estate leasing

60,617