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

October 15, 2019
Listing: Tokyo Stock Exchange
URL: https://xymaxreit.co.jp/en/index.html

XYMAX REIT Investment Corporation
3488
Nobuhito Inatsuki, Executive Director

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

November 29, 2019
November 19, 2019

Supplementary materials for financial results:
Financial results briefing session:

Yes
Yes (for institutional investors and analysts)

1.

(Amounts are rounded down to the nearest million yen)
Status of Management and Assets for the Fiscal Period Ended August 2019 (from March 1, 2019 to August 31, 2019)(1) Results of Operations(% figures are the rate of period-on-period increase (decrease))
Operating revenue
million yen
Fiscal period
ended Aug. 2019
Fiscal period
ended Feb. 2019

Operating income% million yen

Ordinary income

Net income%

million yen%

million yen

%

1,348

2.7

726

(15.2)

682(15.1)

681(15.1)

1,312

(4.5)

856

(4.5)

804

37.5

803

37.7

Net income per unit

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

Ratio ofordinary income tooperating revenue

Ratio ofordinary income tototal assets

Return on equity

yen

%

%

%

3,052

2.9

1.9

50.6

3,595

3.5

2.2

61.3

(2) Distribution

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

Distribution
per unit(excluding
distribution
in excess ofearnings)
yen

Total
distribution(excluding
distribution
in excess ofearnings)
million yen

3,052
3,596

Distribution
in excess ofearnings
per unit

Total
distribution
in excess ofearnings

Payout ratio

Ratio ofdistribution to
net assetsyenmillion yen

%

%

681

-

-

100.0

2.9

803

-

-

100.0

3.5

(3) Financial Position

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

Total assets
million yen

Net assets
million yen

36,629Equity ratio%

Net assets per unit
yen

23,267

63.5

104,152

36,701

23,38963.7

104,696

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

799

(48)

(802)

2,970

1,486

(203)

(1,162)

3,021(4) Cash Flows

Fiscal period
ended Aug. 2019
Fiscal period
ended Feb. 20192.

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

Operating revenue Operating income

Ordinary income

Net income

Distribution
per unit(excluding
distribution
in excess ofearnings)

Distribution
in excess ofearnings
per unit

mn yen% mn yen% mn yen% mn yen%yen
yenFiscal period
1,329
(1.4)
715
(1.5)
658
(3.5)
657
(3.6)
2,943
ending Feb. 2020
Fiscal period
1,336
0.5
730
2.1
685
4.0
684
4.0
3,062
ending Aug. 2020
(Reference) Forecast net income per unit
(Forecast net income ÷ Forecast total number of investment units issued and outstanding at end of period)
Fiscal period ending February 2020: 2,943yen
Fiscal period ending August 2020: 3,062yen* 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. 2019
223,400 units
Fiscal period ended Feb. 2019
223,400 units
ii. Number of treasury investment units at end of period
Fiscal period ended Aug. 2019
0 units
Fiscal period ended Feb. 2019
(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. 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 2020 (from September 1, 2019 toFebruary 29, 2020) and Fiscal Period Ending August 2020 (from March 1, 2020 to August 31, 2020)” on page 5. Accordingly,
the actual operating revenue, operating income, ordinary income, net income, distribution per unit and distribution in excessof earnings per unit may vary due to changes in the circumstances.

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019
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 ............................................................................................................................................. 14(9) Changes in Total Number of Investment Units Issued and Outstanding ................................................................................. 23
3. Reference Information ...................................................................................................................................................................... 24(1) Investment Status ........................................................................................................................................................................ 24(2) Investment Assets ....................................................................................................................................................................... 25-1-

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

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 Environment
In the fiscal period under review, the Japanese economic environment saw real GDP growth rate increase by 0.6%
(annual rate of 2.2%) for the January to March 2019 period, and 0.3% (annual rate of 1.3%) for the April to June2019 period, reflecting solid growth in the domestic economy. Meanwhile, there continues to be a need to pay
attention to trade and diplomatic issues, such as the US-China trade friction, and deteriorating relations with South
Korea. Amid that environment, the TSE JREIT Index rose above 2,000 points for the first time in eleven-and-a-halfyears in July 2019, and it has been maintaining a high level. This has led to JREIT receiving recognition as offering
stable returns and it is gaining favor as an investment target.
Under such domestic economic circumstances, the following movements were seen in the real estate markets ofoffice, retail and hotel in which XYMAX REIT mainly invests.
In the office market, according to “Office Market Report Tokyo Q2 2019” (Note) published by XYMAX REAL ESTATE
INSTITUTE Corporation, the vacancy rate in the Tokyo 23 wards in 2Q 2019 has increased, albeit slightly, from theprevious quarter, which saw a rise in vacancy rate for the first time in recent 18 quarters. Despite the needs ofcompanies to expand office space continuing, there are factors causing vacancy rate to rise, such as cases of someformerly occupied spaces not getting absorbed by other tenants within the building and going on the market, and anincreasing number of companies with growing staff numbers which, faced with a lack of vacant offices of the required
size and location, attempting to resolve office size constraints through work-at-home and telecommuting initiatives
in line with the trend of working style reforms.
In the retail market, according to the Current Survey of Commerce by the Ministry of Economy, Trade and Industry,
the sales of retail for 2Q 2019 increased by 0.7% year on year. In the current climate where consumers are becoming
increasingly budget minded, it would be prudent to carefully watch consumer trends following the consumption tax
rise in October 2019.

-2-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019
In the hotel market, the Japan Tourism Agency’s Overnight Travel Statistics Survey reported that the long holiday
associated with the change in era name contributed favorably, and that the total number of lodgers for the period
from January to July 2019 grew by more than 4%. Furthermore, according to information released by Japan National
Tourism Organization, the number of foreign visitors to Japan for the period from January to August 2019 increased
3.9% year on year to 22.1 million. Such data is showing that statistics survey based hotel guest demand is trending
strongly. On the other hand, South Korean tourists, which make up more than 20% of overseas tourists were downby 9.3% year on year, and down by 48.0% in August 2019. From this we can see the deteriorating relations between
Japan and South Korea has clearly made an impact. Furthermore, considering the new supply of guest rooms, there
is much caution toward what impact a loosening of the supply-demand balance will have on the trends of theoccupancy rates and profitability.
In the real estate buy/sell market, acquisition competition has continued to intensify due to the various market
participants, such as listed REITs, private REITs, overseas investors, and domestic business corporations including
real estate companies against the backdrop of the favorable fund raising environment. As a result, transaction prices
are rising due to the tightening supply-demand balance, while expected cap rates are dropping to a lower level.
(Note)For more details of the research findings, please refer to the website of XYMAX Real Estate Institute Corporation(https://soken.xymax.co.jp/)

III. Management Status
As of the last day of the fiscal period under review, XYMAX REIT had 12 properties in its portfolio. Its total acquisition
price stood at 33,040 million yen, a total leasable area at 72,701.04 m2 and total leased area at 71,846.53 m2. The
occupancy rate as of the last day of the fiscal period under review was 98.8%.
IV. Financing Status(Equity Financing)In the fiscal period under review, XYMAX REIT did not procure funds through issuance of new investment units. Asof the last day of the fiscal period under review, unitholders’ capital was 22,585 million yen.
(Debt Financing)In the fiscal period under review, XYMAX REIT did not conducted any repayment and new borrowing.
As a result, as of the last day of the fiscal period under review, the balance of loans outstanding was 11,680 million
yen.
V.

Overview of Business Performance
Business performance in the fiscal period under review resulted in operating revenue of 1,348 million yen, operating
income of 726 million yen, ordinary income of 682 million yen and net income of 681 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 681,816,800 yen, which is the largest integral multiple of the total number of investment units issued andoutstanding (223,400 units) by application of special provisions for taxation on investment corporations (Article 6715 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957, as amended)). This resulted in
distribution per unit of 3,052 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 GroupThrough the sponsor support agreement with XYMAX Group, XYMAX REIT is provided with various real estate
management insight, know-how, databases, management systems, private fund management experience, etc. On this-3-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019basis, 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 2020 (from September 1, 2019 to February
29, 2020) and Fiscal Period Ending August 2020 (from March 1, 2020 to August 31, 2020) are as follows:
Distribution
Distribution
per unit
in excess of(excluding
OperatingOperating
Ordinary
Net income
earnings
distribution
revenueincomeincomeper unit
in excess ofearnings)
million yen
million yen
million yen
million yen
yenyen
Fiscal period
1,329
715
658
657
2,943
ending Feb. 2020
Fiscal period
1,336
730
685
684
3,062
ending Aug. 2020
Furthermore, for the assumptions underlying the operating forecasts, please refer to “Assumptions Underlying the
Operating Forecasts for the Fiscal Period Ending February 2020 (from September 1, 2019 to February 29, 2020) andFiscal Period Ending August 2020 (from March 1, 2020 to August 31, 2020)” presented later in this document.
(Note)

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

-4-

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

Operatingrevenue

Assumption
 Fiscal period ending February 2020 (4th fiscal period)(from September 1, 2019 to February 29, 2020) (182 days)
 Fiscal period ending August 2020 (5th fiscal period)(from March 1, 2020 to August 31, 2020) (184 days) The assumption is that the real estate trust beneficiary rights held by XYMAX REIT as of today (total of
12 properties) (hereinafter, the “current portfolio assets”) will continue to be held and there will be no
acquisition of new properties other than the current portfolio assets through to the end of the fiscal
period ending August 2020 (5th fiscal period).
 Change may arise due to acquisition of new properties other than the current portfolio assets,
disposition of the current portfolio assets, etc.
 Operating revenue from leasing is calculated on the basis of various factors, such as the content of leaseagreements entered into for the current portfolio assets and past tenant and market trends, and by
taking into account various factors, such as the assumed occupancy rate and rent fluctuation
projections based on tenant move-in/move-out and rent level projections.
 Variable rent is calculated on the basis of mainly the budgeted operating figures submitted by theoperator and based on the method of calculation provided in the lease agreement.
[Hotel Vista Sendai]
Fixed rent:Monthly amount of 20.0 million yen
Variable rent: The monthly variable rent shall be the amount equal to the total variable rent received
by the lessee from the sublessee (hereinafter, “variable rent from subtenant” (Note))
in the past 12 months, including said month, divided by 12.
(Note)



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

Fiscal period
Fiscal period
ending Feb. 2020
ending Aug. 2020
(4th fiscal period)(5th fiscal period)
Variable rent
39million yen
36million yen
The assumption is that there will be no delinquent or unpaid rent by tenants and no gain (loss) on salesof real estate properties.
Of operating expenses, the main components are as follows:
Fiscal period
Fiscal period
ending Feb. 2020
ending Aug. 2020
(4th fiscal period)(5th fiscal period)
Expenses related toleasing business [Total]
493million yen
486million yen
Management fees
84million yen
85million yen
Repair expenses
52million yen
37million yen
Property taxes
134million yen
134million yen
Depreciation
124million yen
129million yen
Other than expenses related to leasing business120million yen
119million yen[Total]Asset management fees
76million yen
77million 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 2020 (4th fiscal period), interest expenses and other borrowing
related expenses are assumed to be 57million yen.
For the fiscal period ending August 2020 (5th fiscal period), interest expenses and other borrowing
related expenses are assumed to be 45million yen.
The assumption is that total interest-bearing liabilities will be 11,680 million yen at the end of the fiscal
period ending February 2020 (4th fiscal period) and 11,680 million yen at the end of the fiscal period
ending August 2020 (5th fiscal period). Short-term loans of 1,014 million yen and long-term loans of
2,336 million are due in the fiscal period ending February 2020. The assumption is that these will be
repaid with funds procured through loans, etc.
LTV ratio is expected to be 31.9% at the end of the fiscal period ending February 2020 (4th fiscal period)and 31.9% at the end of the fiscal period ending August 2020 (5th fiscal period). In addition, the-5-

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

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

Investment units

Distribution
per unit(excluding
distribution
in excess ofearnings)
Distribution
in excess ofearnings
per unit The assumption is the total number of investment units issued and outstanding is 223,400 units as ofthe end of the fiscal period ended August 2019 and that there will be no change in the number ofinvestment units due to issuance of new investment units, etc. through to the end of the fiscal period
ending August 2020 (5th 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 2020 (4th fiscal period) and fiscal
period ending August 2020 (5th 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 2019

2. Financial Statements(1) Balance Sheet(Unit: thousand yen)
2nd fiscal period(As of Feb. 28, 2019)
AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Non-current assets
Property, plant and equipment
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Lease and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets-7-

3rd fiscal period(As of Aug. 31, 2019)

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

1,009,178
1,960,942
28,71731,354390
3,030,583

108,551(29,150 )
79,4008,973,338(211,056 )8,762,281
45,459(1,597 )43,8626,452(705 )
5,747
24,606,271
33,497,562

109,618(42,397 )67,221
9,064,664(317,252 )
8,747,412
45,459(2,370 )43,0886,727(1,312 )5,415
24,606,271
33,469,409

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

32,962
13
22,60074,230129,806
33,599,215
36,629,798

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

(Unit: thousand yen)
2nd fiscal period(As of Feb. 28, 2019)
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 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-

3rd fiscal period(As of Aug. 31, 2019)100,769
1,014,000
2,336,000
95,119836
65,039173,375883
3,786,023

119,7121,014,000
2,336,000
96,157885
25,125
186,235
5,827
3,783,944

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

8,330,000
1,248,262
9,578,262
13,362,207

22,585,746

22,585,746

803,368

681,845803,368
23,389,114※１ 23,389,114
36,701,751

681,845
23,267,591※１ 23,267,591
36,629,798

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019(2) Statement of Income(Unit: thousand yen)
3rd fiscal period
From: Mar. 1, 2019
To: Aug. 31, 2019

2nd fiscal period
From: Sept. 1, 2018
To: Feb. 28, 2019
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
Interest on refund
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)-9-※１ 1,204,800※１ 1,239,634※１ 107,604※１ 108,769

1,312,404

1,348,404※１ 333,945※１ 498,836

79,815
835
9,902
2,400
28,778455,677
856,727

77,234
825
9,455
2,400
33,130621,883
726,521

14
752
767

14
14

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

33,843
9,983
43,826
682,708
682,708
888
(2 )
885
681,823
22
681,845

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019(3) Statement of Unitholders’ Equity
2nd fiscal period (from September 1, 2018 to February 28, 2019)(Unit: thousand yen)

Unitholders’ equity
SurplusTotal
unitholders’ equity

Total
net assets

Unitholders’ capital

Unappropriatedretained earnings(undisposed loss)

22,585,746

583,155

583,155

23,168,901

23,168,901

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

Net income

803,287

803,287

803,287

803,287-

220,213220,213220,213220,213

22,585,746

803,368

803,368

23,389,114

23,389,114

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

Total changes
during period
Balance as ofFebruary 28, 2019

*1

Total
surplus

3rd fiscal period (from March 1, 2019 to August 31, 2019)(Unit: thousand yen)

Unitholders’ equity
SurplusTotal
unitholders’ equity

Total
net assets

Unitholders’ capital

Unappropriatedretained earnings(undisposed loss)

22,585,746

803,368

803,368

23,389,114

23,389,114

Dividends of surplus(803,346)(803,346)(803,346)(803,346)

Net income

681,823

681,823

681,823

681,823-(121,523)(121,523)(121,523)(121,523)*1 22,585,746

681,845

681,845

23,267,591

23,267,591

Balance as ofMarch 1, 2019
Changes of items
during period

Total changes
during period
Balance as ofAugust 31, 2019- 10 -

Total
surplus

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

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

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

3rd fiscal period
From: Mar. 1, 2019
To: Aug. 31, 2019

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

681,845,802 yen
681,816,800 yen[3,052 yen]
29,002 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 803,346,400 yen, which is
the maximum value of the integral
multiple of the total number of units
issued and outstanding (223,400
units), not exceeding unappropriatedretained earnings.
XYMAX REIT
does not make
distribution in excess of earnings
defined by Article 35, Paragraph 2 of
XYMAX
REIT’s
Articlesof
Incorporation.

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 681,816,800 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 2019(5) Statement of Cash Flows(Unit: thousand yen)
2nd fiscal period
From: Sept. 1, 2018
To: Feb. 28, 2019
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
payableIncrease (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
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
Proceeds from 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 -

3rd fiscal period
From: Mar. 1, 2019
To: Aug. 31, 2019

804,142
118,679(14 )
30,776

682,708
121,704(14 )
33,843(3,023 )(5,765 )572,370-(854 )

2,203(13,833 )

27,865(11,263 )1,038

65,039(39,913 )(8,066 )12,859

1,802

8,739

(37,188 )1,518,566
14(30,760 )(1,690 )(10,847 )834,42114(33,660 )(838 )

1,486,130

799,937(263 )(2,212 )(180,657 )(100,524 )(61,198 )(7,824 )39,09861,634(203,020 )(48,927 )1,014,000(2,916,000 )
1,322,000(582,923 )(1,162,923 )
120,186
2,901,632※１ 3,021,818(802,707 )(802,707 )(51,697 )3,021,818※１ 2,970,121

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

Standards forrevenue and expense
recognition

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

3.

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

4.

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

5.

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

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019(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
2nd fiscal period(As of Feb. 28, 2019)

3rd fiscal period(As of Aug. 31, 2019)50,000 thousand yen

50,000 thousand yen[Notes on the Statement of Income]*1. Breakdown of operating income (loss) from real estate leasing business
2nd fiscal period
From: Sept. 1, 2018
To: Feb. 28, 2019
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

1,052,642
152,158
63,294
28,86915,441

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)
3rd fiscal period
From: Mar. 1, 2019
To: Aug. 31, 2019

1,204,800

1,088,311
151,3231,239,634

107,604

64,45829,715
14,595

108,769

1,312,404

13
82,63662,54236,351
3,720
118,679
30,003

333,945

1,348,404

133,084
83,14760,25342,643
3,767
121,704
54,234

498,836

Total operating expenses from real estate leasing

333,945498,836

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

978,458

849,567- 14 -

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

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

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

3rd fiscal period
From: Mar. 1, 2019
To: Aug. 31, 2019

5,000,000 units

5,000,000 units

223,400 units

223,400 units[Notes on the Statement of Cash Flows]*1. Reconciliation of cash and cash equivalents at end of period to the amount of balance sheet items(Unit: thousand yen)
2nd fiscal period
From: Sept. 1, 2018
To: Feb. 28, 2019

3rd fiscal period
From: Mar. 1, 2019
To: Aug. 31, 2019

Cash and bank deposits
Cash and bank deposits in trust

1,161,697
1,860,121

1,009,178
1,960,942

Cash and cash equivalents

3,021,818

2,970,121[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.

- 15 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019(3) Supplementary explanation to matters concerning fair value, etc. of financial instruments
The fair value of financial instruments is values based on market price, but may otherwise include values based onreasonable calculation when no market price is available. Variable factors are taken into account in the calculationof the concerned values. Accordingly, the concerned values may vary when different assumptions are adopted. In
addition, the contract amount, etc. of derivative transactions in “2. Matters concerning fair value, etc. of financial
instruments” do not itself represent the market risk involved in the derivative transactions.
2. Matters concerning fair value, etc. of financial instruments
The following are the carrying amount and fair value as of February 28, 2019, and the amount of difference between
these. Financial instruments for which estimation of fair value is recognized to be extremely difficult are not includedin the following table. (Please refer to Note 2 below.)(1) Cash and bank deposits(2) Cash and bank deposits in trust
Total assets(1) Short-term loans payable(2) 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)

1,161,697
1,860,121

1,161,697
1,860,121-

3,021,818

3,021,818-

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

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

55,422

11,680,000

11,735,422

55,422---Derivative transactions

The following are the carrying amount and fair value as of August 31, 2019, 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)

1,009,178
1,960,942

1,009,178
1,960,942-

2,970,121

2,970,121-

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

1,014,000
2,336,000
8,372,155

42,155

11,680,000

11,722,155

42,155---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 Transactions” presented later in this document) and long-term loans payable with fixedinterest rates, the fair value is calculated based on the present value of their future cash flows discounted by the time
to maturity and rate adjusted for credit risks.
- 16 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019
Derivative transactions
Please refer to “Notes on Derivative Transactions” below(Note 2) Financial instruments for which estimation of fair value is recognized to be extremely difficult
2nd fiscal period
3rd fiscal period(As of Feb. 28, 2019)(As of Aug. 31, 2019)
Tenant leasehold and security deposits
in trust

1,196,612 thousand yen

1,248,262 thousand yen* Tenant leasehold and security deposits in trust are not subject to disclosure of fair value, because there being no market price and, even if thelease contract period has been set, there being the possibility of contract cancellation before expiration or contract extension or renewal makecalculating the actual deposit period impossible and reasonable projection of future cash flows is thus recognized to be extremely difficult.

(Note 3) Amount of redemption of monetary claims scheduled to be due after the end of the fiscal period (February 28, 2019)(Unit: thousand yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

Due after
5 years

Cash and bank deposits

1,161,697

-

-

-

-

-

Cash and bank deposits in trust

1,860,121

-

-

-

-

-

Total

3,021,818

-

-

-

-

-

Amount of redemption of monetary claims scheduled to be due after the end of the fiscal period (August 31, 2019)(Unit: thousand yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

Due after
5 years

Cash and bank deposits

1,009,178

-

-

-

-

-

Cash and bank deposits in trust

1,960,942

-

-

-

-

-

Total

2,970,121

-

-

-

-

-

(Note 4) Amount of repayment of loans scheduled to be due after the end of the fiscal period (February 28, 2019)(Unit: thousand yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

Short-term loans payable

1,014,000

-

-

-

-

-

Long-term loans payable

2,336,000

2,336,000

2,336,000

2,646,000

1,012,000-

3,350,000

2,336,000

2,336,000

2,646,000

1,012,000

-

Total

Due after
5 years

Amount of repayment of loans scheduled to be due after the end of the fiscal period (August 31, 2019)(Unit: thousand yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

Short-term loans payable

1,014,000

-

-

-

-

-

Long-term loans payable

2,336,000

2,336,000

2,336,000

2,646,000

1,012,000-

3,350,000

2,336,000

2,336,000

2,646,000

1,012,000

-

Total

- 17 -

Due after
5 years

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019
［Notes on Derivative Transactions］
1. Derivative transactions to which hedge accounting is not applied
2nd fiscal period (as of February 28, 2019)
Not applicable.
3rd fiscal period (as of August 31, 2019)
Not applicable.
2. Derivative transactions to which hedge accounting is applied
2nd fiscal period (as of February 28, 2019)
The following is the contract amount or the amount equivalent to the principal provided in the contract, etc. at the endof the fiscal period for each hedge accounting approach.
(Unit: thousand yen)Contract amount, etc. (Note 1)

Hedge accounting
approach

Type, etc. of
derivative transaction

Main hedged
item

Special treatment forinterest rate swaps

Interest rate swap
transaction(receive floating; pay fixed)

Long-termloans payable

Of which,due after 1 year

Fair value

2,336,000(Note 2)

2,336,000(Note 1)

Contract amount, etc. is based on notional principal.

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

3rd fiscal period (as of August 31, 2019)
The following is the contract amount or the amount equivalent to the principal provided in the contract, etc. at the endof the fiscal period for each hedge accounting approach.
(Unit: thousand yen)Contract amount, etc. (Note 1)

Hedge accounting
approach

Type, etc. of
derivative transaction

Main hedged
item

Special treatment forinterest rate swaps

Interest rate swap
transaction(receive floating; pay fixed)

Long-termloans payable

Of which,due after 1 year

Fair value

2,336,000(Note 2)

2,336,000(Note 1)

Contract amount, etc. is based on notional principal.

(Note 2)Since those with special treatment for interest rate swaps are treated integrally with hedged long-term loans payable, the fair valuesof such are included in the fair value of said long-term loans payable. (Please refer to [Notes on Financial Instruments] 2. Mattersconcerning fair value, etc. of financial instruments (Note 1) Method of calculation of the fair value of financial instruments andmatters concerning derivative transactions, Liabilities (3) Long-term loans payable.)[Notes on Tax-Effect Accounting]
1. Breakdown of main causes for occurrence of deferred tax assets and deferred tax liabilities(Unit: thousand yen)
2nd fiscal period
As of Feb. 28, 2019

3rd fiscal period
As of Aug. 31, 2019Non-deductible accrued enterprise tax

11

13

Total

11

13

11

13

Deferred tax assets

Deferred tax assets, net- 18 -

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

Breakdown of major components that caused any significant differences between the statutory tax rate and theeffective income tax rate after application of tax-effect accounting(Unit: %)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.
2nd fiscal period (from September 1, 2018 to February 28, 2019)
Not applicable.
3rd fiscal period (from March 1, 2019 to August 31, 2019)
Not applicable.
2. Affiliated company, etc.
2nd fiscal period (from September 1, 2018 to February 28, 2019)
Not applicable.
3rd fiscal period (from March 1, 2019 to August 31, 2019)
Not applicable.

- 19 -

2nd fiscal period
As of Feb. 28, 2019

3rd fiscal period
As of Aug. 31, 2019

31.51

31.51

(31.48)0.08(31.47)
0.09

0.11

0.13

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019
3. Fellow subsidiary, etc.
2nd fiscal period (from September 1, 2018 to February 28, 2019)
Not applicable.
3rd fiscal period (from March 1, 2019 to August 31, 2019)
Not applicable.
4. Director, major individual unitholder, etc.
2nd fiscal period (from September 1, 2018 to February 28, 2019)
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

Nobuhito
Inatsuki--

Director andPresident of
XYMAX
REAL ESTATEXYMAX REIT, andAsset

Representative Director andmanagement

President offee

XYMAX REAL ESTATE(Note 3)-

Accounts
79,815payable -86,200other

INVESTMENT ADVISORS
Corporation

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

- 20 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019
3rd fiscal period (from March 1, 2019 to August 31, 2019)
Percentage of Description of relationship

Capital stockor
Attribute

Name ofcompany, etc.

Location

investments

businessetc.

in capitalorheld by (in)(thousandoccupationyen)

Balance

Transaction

Description of voting rights,
Concurrent

Description ofholding of

Description of transaction

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

at end ofamount(thousandAccount itemyen)

period(thousandyen)(Note 2)

(Note 2)

Executive
Director of
XYMAX REIT,

Executive Director ofand

XYMAX REIT, andRepresentative

Director

Nobuhito
Inatsuki-

Director and-President of
XYMAX
REAL ESTATE

Representative Director and-President ofAssetmanagement
fee

XYMAX REAL ESTATE(Note 3)INVESTMENT ADVISORS

Accounts
77,234payable -83,413other

Corporation

INVESTMENTADVISORS
Corporation(Note 1) The above discloses a related-party transaction which includes a material transaction, among related-party
transactions subject to disclosure.
(Note 2) Of the amounts above, transaction amount does not include consumption tax, etc., while balance at end of period
includes consumption tax, etc.
(Note 3) The amount of asset management fee is for transactions conducted by Nobuhito Inatsuki as representative of XYMAXREAL ESTATE INVESTMENT ADVISORS Corporation, and transaction amount is based on the terms and conditions
provided in XYMAX REIT’s Articles of Incorporation.
(Note 4) Transaction terms and conditions are decided based on the actual market situation.
[Notes on Segment Information, Etc.]
1. Segment information
Segment information is omitted, because XYMAX REIT has a single segment, which is the real estate leasing business.
2. Related information
2nd fiscal period (from September 1, 2018 to February 28, 2019)(1) Information by product and service
Information by product and service is omitted, because operating revenue to external customers for a single
products and services category is in excess of 90% of operating revenue on the statement of income.
(2) Information by geographic area(i) Operating revenue
Information by geographic area of operating revenue is omitted, because operating revenue to externalcustomers in Japan is in excess of 90% of operating revenue on the statement of income.
(ii) Property, plant and equipment
Information by geographic area of property, plant and equipment is omitted, because the amount of property,
plant and equipment located in Japan is in excess of 90% of the amount of property, plant and equipment on
the balance sheet.
(3) Information by major customer(Unit: thousand yen)
Name of customer

Operating revenue

New Urban Life Holdings Inc.

Not disclosed (Note)XYMAX Corporation(Note)

Related segment
148,200

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

- 21 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019
3rd fiscal period (from March 1, 2019 to August 31, 2019)(1) Information by product and service
Information by product and service is omitted, because operating revenue to external customers for a single
products and services category is in excess of 90% of operating revenue on the statement of income.
(2) Information by geographic area(i) Operating revenue
Information by geographic area of operating revenue is omitted, because operating revenue to externalcustomers in Japan is in excess of 90% of operating revenue on the statement of income.
(ii) Property, plant and equipment
Information by geographic area of property, plant and equipment is omitted, because the amount of property,
plant and equipment located in Japan is in excess of 90% of the amount of property, plant and equipment on
the balance sheet.
(3) Information by major customer(Unit: thousand yen)
Name of customer

Operating revenue

New Urban Life Holdings Inc.

Not disclosed (Note)XYMAX Corporation(Note)

Related segment
Real estate leasing business

163,967

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

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

Carrying amount
Balance at beginning of period
Amount of increase (decrease) during period
Balance at the end of the period
Fair value at the end of the period(Note 1)
(Note 2)

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

3rd fiscal period
From: Mar. 1, 2019
To: Aug. 31, 201933,497,562

33,469,409

33,521,850

33,497,562(24,288)(28,153)

33,497,562

33,469,409

42,295,000

43,335,000

Carrying amount is the amount of cost of acquisition, less accumulated depreciation.
Of the amount of increase (decrease) during period for 2nd fiscal period, the amount of increase is mainly attributable to capital
expenditure (94,391 thousand yen), while the amount of decrease is mainly attributable to depreciation (118,679 thousand yen).
Of the amount of increase (decrease) during period for 3rd fiscal period, the amount of increase is mainly attributable to capital(Note 3)

expenditure (93,814 thousand yen), while the amount of decrease is mainly attributable to depreciation (121,704 thousand yen).
Fair value at the end of the period is the appraisal value by an outside real estate appraiser.

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

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019
[Notes on Per Unit Information]
2nd fiscal period
From: Sept. 1, 2018
To: Feb. 28, 2019

3rd fiscal period
From: Mar. 1, 2019
To: Aug. 31, 2019

Net assets per unit

104,696 yen

104,152yen

Net income per unit

3,595yen

3,052yen(Note 1)

Net income per unit for 3rd 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:

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

3rd fiscal period
From: Mar. 1, 2019
To: Aug. 31, 2019

803,287

681,823

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

Net income attributable to common investment units (thousand yen)803,287

681,823

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

Date

Description

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

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

Unitholders’ capital(thousand yen)
Increase(Decrease)

Remarks

Balance

Incorporation throughprivate placement
Capital increase throughpublic offering

3,000

3,000

300,000

300,000(Note 1)

209,905

212,905

21,224,544

21,524,544(Note 2)

Third-party allotment

10,495

223,400

1,061,201

22,585,746(Note 3)(Note 1)XYMAX REIT was incorporated with issuance of investment units at an issue price of 100,000 yen per unit.

(Note 2)

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
for the purpose of procuring funds for acquisition of new properties.

(Note 3)New investment units were issued with SMBC Nikko Securities Inc. as allottee at a paid-in amount of 101,115 yen per unit.

- 23 -

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

3. Reference Information(1) Investment Status

Type of asset

Use

Geographic area
(Note 1)

2nd fiscal period
As of Feb. 28, 2019
Total amount held(million yen)
(Note 2)

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

3rd fiscal period
As of Aug. 31, 2019As a percentage Total amount held(million yen)of total assets(Note 2)(%) (Note 3)

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

14,40239.2

14,395

39.3

1,160

3.2

1,161

3.2

2,618

7.1

2,609

7.1

8,124

22.1

8,147

22.2

4,399

12.0

4,369

11.9

2,791

7.6

2,785

7.6

33,4973,204
36,701

91.3
8.7
100.0

33,4693,160
36,629

91.4
8.6
100.0

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

(Note 2)

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

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

2nd fiscal period
As of Feb. 28, 2019
Amount(million yen)
(Note 1)

3rd fiscal period
As of Aug. 31, 2019As a percentage of
total assets(%) (Note 2)

Amount(million yen)
(Note 1)

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

Total liabilities

13,312

36.3

13,362

36.5

Total net assets

23,38963.7

23,267

63.5

Total assets

36,701

100.0

36,629100.0(Note 1)

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

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

down to the nearest million yen.

- 24 -

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

Classification(2) Investment Assets
I. Itemization of Real Estate and Other Assets in the Portfolio
The assets held by XYMAX REIT (real estate or trust beneficiary rights that have real estate as trust assets; hereinafter,
may be collectively referred to as the “portfolio assets”) as of August 31, 2019 are as follows:

Asset
no.
(Note
1)

OF-01
OF-02

Office

OF-03
OF-04
OF-05
OF-06
OF-07

Asset name

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

RetailAppraisal value(million yen)
(Note 4)

Ownership status

2,522

3,100

Trust beneficiaryrights

12.9

4,340

5,710

Trust beneficiaryrights

5,020

15.2

5,058

7,140

Trust beneficiaryrightsFeb. 16,
2018

880

2.7

893

1,160

Trust beneficiaryrightsMinato-ku,
TokyoFeb. 16,
2018

1,550

4.7

1,580

2,100

Trust beneficiaryrights

Taito-ku,Tokyo

Feb. 16,
2018

1,150

3.5

1,161

1,590

Trust beneficiaryrightsFeb. 16,
2018

2,600

7.9

2,609

3,590

Trust beneficiaryrights--17,95054.3

18,167

24,390-

Minato-ku,
TokyoFeb. 16,
2018

2,500

7.6

Chiyoda-ku,
TokyoFeb. 16,
2018

4,250

Shinjuku-ku,
TokyoFeb. 16,2018

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

RT-01

Muza Kawasaki

Kawasaki-shi,
Kanagawa

Feb. 16,
2018

4,100

12.4

4,098

5,400

Trust beneficiaryrights

RT-02

Life Kawasaki
Miyuki Store

Kawasaki-shi,
Kanagawa

Feb. 16,
2018

790

2.4

797

975

Trust beneficiaryrights

RT-03

Vita SeisekiSakuragaoka

Tama-shi,Tokyo

Feb. 16,
2018

3,100

9.4

3,250

3,870

Trust beneficiaryrights

-

-

7,990

24.2

8,147

10,245-

Sendai-shi,
MiyagiFeb. 16,
2018

4,400

13.3

4,369

5,570

Trust beneficiaryrights and movables
incidental to hotel

-

-

4,400

13.3

4,369

5,570

-

Fukuoka-shi,
FukuokaFeb. 16,
2018

2,700

8.2

2,785

3,130

Trust beneficiaryrightsSubtotal/Average

-

-

2,700

8.2

2,785

3,130

-

Total/Average--

33,040100.033,46943,335-

Subtotal/Average

Hotel

HT-01

Hotel Vista
SendaiSubtotal/Average

Other

Share ofportfolio(%)(Note 3)

Location

XYMAX
Hachioji-shi,
Hachioji Building Tokyo

Subtotal/Average

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(Note 2)

code “OF” represents office properties, “RT” represents retail properties, “HT” represents hotel properties and “OT” represents other properties.
“Acquisition price” is the amount (the amount of the sale and purchase price of real estate, etc. stated in the trust beneficiary right sale andpurchase contract for each portfolio asset) not including the various expenses required for the acquisition of the portfolio assets (brokerage
fees, property taxes, etc.), rounded down to the nearest million yen. The sale and purchase price does not include consumption tax and local(Note 3)

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,(Note 4)rounded to one decimal place.
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, 2019 as the date of value.

- 25 -

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

Status of Leasing

Leased area(m2)
(Note 5)

Leasable area(m2)
(Note 6)

Occupancy
rate(%)(Note 7)107

1,897.75

1,897.75

100.0

143

178

4,152.30

4,152.30

100.0

6

167

234

4,792.13

4,792.13

100.0

Apr. 30,
1991

8

40

49

1,205.29

1,205.29

100.0

XYMAX
Higashi-Azabu Building

Nov. 30,
1999

4

57

98

2,016.00

2,016.00

100.0

OF-06

XYMAX
Higashi-Ueno Building

Apr. 9,
1999

8

48

67

1,735.34

1,735.34

100.0

OF-07

XYMAX
Hachioji Building

Jan. 26,
1993

24

133

157

5,457.36

5,556.03

98.2

RT-01

Muza Kawasaki

Jan. 7,
2004

17

160

244

3,703.87

3,703.87

100.0

RT-02

Life Kawasaki Miyuki Store

Jan. 13,
1997

1

Undisclosed(Note 8)

Undisclosed(Note 8)2,677.54

2,677.54

100.0

RT-03

Vita Seiseki-Sakuragaoka

Sept 17,
1999

1

Undisclosed(Note 8)

Undisclosed(Note 8)27,610.61

27,610.61

100.0

HT-01

Hotel Vista Sendai

Mar. 14,
2016

1

163

50

7,066.25

7,066.25

100.0

OT-01

Renaissance 21 Chihaya

Oct. 19,
2006

133

106

20

9,532.09

10,287.93

92.7

-

225

1,348

1,248

71,846.53

72,701.04

98.8

Construction Number ofdatetenants(Note 1)
(Note 2)

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

Asset no.

Asset name

OF-01

XYMAX
Nishi-Shimbashi Building

Aug. 22,
2000

8

79

OF-02

XYMAX
Iwamotocho Building

Mar. 22,
2001

14

OF-03

XYMAX
Shinjuku-Gyoen Building

Feb. 28,
2001

OF-04

XYMAX
Kamiyacho Building

OF-05

Total/Average(Note 1)

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

(Note 2)

“Number of tenants” is the total of the number of tenants (the number of end-tenants if a pass-through type master lease contract has beenconcluded) pertaining to the real estate in trust based on each lease contract concluded for each real estate in trust as of August 31, 2019.

(Note 3)

“Operating revenue from leasing” is the total amount of rent revenue, common area maintenance revenue, parking revenue and other revenue(including other lease business revenue) generated from portfolio real estate during the fiscal period, rounded down to the nearest specified(Note 4)unit.
“Security deposit / Guarantee” is each property’s total amount of security deposit and guarantee specified in all lease contracts pertaining to(Note 5)the real estate in trust concluded for each real estate in trust as of August 31, 2019, rounded down to the nearest specified unit.
“Leased area” is the total leased area based on the lease contract and the building drawing, etc. attached to the lease contract for each real

(Note 6)

estate in trust as of August 31, 2019.
“Leasable area” is the total leased area based on the lease contract and the building drawing, etc. attached to the lease contract for each real

(Note 7)

estate in trust as of August 31, 2019 and the area based on the building drawing, etc. of vacant spaces.
“Occupancy rate” is the ratio of leased area to leasable area for each real estate in trust as of August 31, 2019, rounded to one decimal place.

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

- 26 -

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

Classification

Value based on income approach
Asset no.

Asset nameAppraiser(Note 2)

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

RetailTerminal
capitalization
rate
(%)

Discount
rate(%)(million yen)

OF-01

XYMAX
Nishi-Shimbashi Building

Tanizawa Sō gō
Appraisal

3,100

3,180

3.7

3,070

3.8

3.9

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

7,140

7,270

3.5

7,010

3.3

3.7

OF-04

XYMAX
Kamiyacho Building

Tanizawa Sō gō
Appraisal

1,160

1,190

3.8

1,150

3.9

4.0

OF-05

XYMAX
Higashi-Azabu Building

Daiwa Real EstateAppraisal.

2,100

2,160

3.9

2,080

3.7

4.1

OF-06

XYMAX
Higashi-Ueno Building

Daiwa Real EstateAppraisal.

1,590

1,620

4.0

1,570

3.8

4.2

OF-07

XYMAX
Hachioji Building

Japan Real Estate

3,590

3,630

4.8

3,550

4.6

5.0

24,39024,880-24,020

-

-

5,400

5,340

4.1

5,420

4.2

4.3

975

988

4.2

969

4.0

4.4

3,870

3,790

5.0

3,910

5.1

5.2

10,245

10,118-

10,299

-

-

5,570

5,680

4.6

5,520

4.7

4.8

5,570

5,680

-

5,520

-

-

3,130

3,200

5.0

3,100

5.1

5.2

Subtotal/Average

3,130

3,200

-

3,100

-

-

Total/Average

43,33543,878-42,939--Subtotal/Average
RT-01

Muza Kawasaki

Tanizawa Sō gō
Appraisal

RT-02

Life Kawasaki Miyuki Store

Daiwa Real EstateAppraisal.

RT-03

Vita Seiseki-Sakuragaoka

Tanizawa Sō gō
Appraisal

Subtotal/Average

Hotel

HT-01

Hotel Vista Sendai

Tanizawa Sō gō
Appraisal

Subtotal/Average

Other

Value
based onDCF
methodOT-01

Renaissance 21 Chihaya

Tanizawa Sō gō
Appraisal(Note 1)The date of value for the real estate appraisal reports is August 31, 2019.

(Note 2)

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

- 27 -

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

Seismic risk evaluation report

Asset no.

Asset name

Inspection
company(Note 1)

Inspection
date

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

OF-01

XYMAX
Nishi-Shimbashi Building

Sompo Risk
Management Inc.

Nov. 30,
2017-

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

6.1

OF-02

XYMAX
Iwamotocho Building

Tokio Marine &Nichido Risk
Consulting Co., Ltd.

Nov. 30,
2017-

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

5.2

OF-03

XYMAX
Shinjuku-Gyoen Building

Tokio Marine &Nichido Risk
Consulting Co., Ltd.

Nov. 30,
2017-

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

4.5

OF-04

XYMAX
Kamiyacho Building

Earth-Appraisal
Co., Ltd.

Nov. 30,
2017-

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

3.8

OF-05

XYMAX
Higashi-Azabu Building

Earth-Appraisal
Co., Ltd.

Nov. 30,
2017-

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

3.4

OF-06

XYMAX
Higashi-Ueno Building

Earth-Appraisal
Co., Ltd.

Nov. 30,
2017-

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

5.1

OF-07

XYMAX
Hachioji Building

Sompo Risk
Management Inc.

Nov. 30,
2017-

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

3.9

RT-01

Muza Kawasaki

Earth-Appraisal
Co., Ltd.

Nov. 30,
2017-

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

1.2

RT-02

Life Kawasaki Miyuki Store

Daiwa Real EstateAppraisal Co., Ltd.

Nov. 30,
2017-

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

7.0

RT-03

Vita Seiseki-Sakuragaoka

Daiwa Real EstateAppraisal Co., Ltd.

Nov. 30,
2017-

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

2.1

HT-01

Hotel Vista Sendai

Daiwa Real EstateAppraisal Co., Ltd.

Nov. 30,
2017-

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

1.7

OT-01

Renaissance 21 Chihaya

Tokio Marine &Nichido Risk
Consulting Co., Ltd.

Nov. 30,
2017-

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

1.7-

245,716

2.1

Total

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

Inspection PML value
date
(%)

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

(Note 2)
(Note 3)

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

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

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

- 28 -

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

Location

XYMAX
Higashi-Azabu
Building

Minato-ku,
Tokyo

XYMAX
Higashi-Ueno
Building

Taito-ku,Tokyo

PurposeRenewal of PAC
and total heatexchangers on 14 floors
Renewal of air
conditioners on
1-3 floors

Scheduled period

TotalamountFrom: November 2019
To: November 201925,317

From: February 2020
To: February 2020

14,857

Amount ofpayment
duringperiodTotalamountalready
paid

-

-

-

(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 to93,814 thousand
yen. Combined with repair expenses booked as expenses in the fiscal period under review (42,643 thousand yen),construction work, etc. totaling 136,458 thousand yen was conducted. Construction work, etc. that fall under the
category of significant capital expenditure conducted in the fiscal period under review for assets held by XYMAXREIT are as follows.

Name ofreal estate, etc.
Vita SeisekiSakuragaoka

Location

PurposeConstruction period

Construction
costs(thousand yen)Tama-shi,
Tokyo

Work concerning
parking A

From: August 2019
To: August 201933,480- 29 -

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

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2019
to August 31, 2019

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

73,910Location (residential address)

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

Other lease businessrevenue

5,911

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

79,821

Lot Number

Land

Building Coverage Ratio

80%

Floor-Area Ratio

700%(2) Operating expenses from real estate leasing
Tax and public dues

6,955

Land Use District

Commercial district

Maintenance fees

5,361

Site Area

402.53 m2

Utility expenses

4,931

Type of ownership

Ownership

Repair expenses

2,261

Construction Date

August 22, 2000

Insurance premiums

Structure/Number of Floors

Reinforced concrete structure withflat roof 9F

Depreciation

2,569

Total Floor Area

2,517.50 m2

Other expenses related
to leasing business

1,614

ArchitectRUI SEKKEISHITSU Co., Ltd.

Total operating expenses
from real estate leasing

23,756

Builder

Fujiki Komuten Co., Ltd.

(3) NOI

58,635

Type of Ownership

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

56,065

Building

ML Company-

PM Company

XYMAX ALPHA Corporation

61

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

- 30 -

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

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2019
to August 31, 2019

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

126,237

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

Other lease businessrevenue

17,655

Total operating revenue
from real estate leasing

143,892

Location (residential address)

Land

Building

Lot Number

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

Building Coverage Ratio

80%

Floor-Area Ratio

800%、600%

Tax and public dues

13,417

Land Use District

Commercial district

Maintenance fees

10,398Site Area

864.83 m2

Utility expenses

9,117Type of ownership

Ownership

Repair expenses

4,327(2) Operating expenses from real estate leasing

Construction Date

March 22, 2001

Insurance premiums

Structure/Number of Floors

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

Depreciation

10,766

Total Floor Area

6,261.06 m2

Other expenses related
to lasing business

4,863

Architect

Nikken Sekkei Ltd.

Total operating expenses
from real estate leasing

53,110

Builder

Kumagai-Sumitomo Construction
Consortium

Type of Ownership

Ownership

ML Company

Godo Kaisha ML2

PM Company

XYMAX ALPHA Corporation

Notes:
None- 31 -

220(3) NOI

101,548(4) Operating income (loss)
from real estate leasing

90,782

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019
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, 2019
to August 31, 2019

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

154,165

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

Other lease businessrevenue

13,825

Total operating revenue
from real estate leasing

167,991

Location (residential address)Land

Lot Number

1-1-7 Shinjuku, Shinjuku-ku, andother

Building Coverage Ratio

80%(2) Operating expenses from real estate leasing

Floor-Area Ratio

700%

Tax and public dues

14,447

Land Use District

Commercial district

Maintenance fees

10,840Site Area

839.09 m2

Utility expenses

9,769

Type of ownership

Ownership

Repair expenses

2,979

Construction Date

February 28, 2001

Insurance premiums
Depreciation

9,902

Structure/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

17,787

Architect

U Associates Co., Ltd.

Total operating expenses
from real estate leasing

65,939Builder

Kajima-Oriental Construction
Consortium

Type of Ownership

Ownership

Building

ML Company

Godo Kaisha ML2

PM Company

XYMAX ALPHA Corporation

Notes:
None- 32 -

211(3) NOI

111,954(4) Operating income (loss)
from real estate leasing

102,051

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

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2019
to August 31, 2019

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

36,707

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

Other lease businessrevenue

4,008

Lot Number

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

Total operating revenue
from real estate leasing

40,716

Building Coverage Ratio

80%

Floor-Area Ratio

600%

Tax and public duesLand Use District

Commercial district

Maintenance fees

4,599

Site Area

228.83m

Utility expenses

2,738

Type of ownership

Ownership

Repair expenses

4,469

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 business

281

Architect

HASEKO Corporation

Total operating expenses
from real estate leasing

18,071

Builder

HASEKO Corporation(3) NOI

23,903

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

22,644

Location (residential address)

Land

Building

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

2

ML Company

XYMAX ALPHA Corporation

PM Company

XYMAX ALPHA Corporation

Notes:
None- 33 -

4,678

46
1,258

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019
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, 2019
to August 31, 2019

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

51,096

Location (residential address)

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

Other lease businessrevenue

6,154

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

57,251

Lot Number

Land

Building Coverage Ratio

80%

Floor-Area Ratio

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

Commercial district

Maintenance fees

6,092

Site Area

365.05 m

2

Utility expenses

3,655

Type of ownership

Ownership

Repair expenses

1,566

6,636

Construction Date

November 30, 1999

Insurance premiums

Structure/Number of Floors

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

Depreciation

4,102

Total Floor Area

2,570.13 m2

Other expenses related
to leasing business

2,872

ArchitectTokyo Branch of TOZAI KENCHIKUSERVICE CO., LTD.

Total operating expenses
from real estate leasing

25,007

Builder

Kanto Branch of Maeda Corporation(3) NOI

36,346

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

32,243

Building

Type of Ownership
ML Company

XYMAX ALPHA Corporation

PM Company

XYMAX ALPHA Corporation

Notes:
None- 34 -

82

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019
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, 2019
to August 31, 2019

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

36,717

Location (residential address)

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

Other lease businessrevenue

11,363

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

Total operating revenue
from real estate leasing

48,081

Lot Number

Land

Building Coverage Ratio

80%

Floor-Area Ratio

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

3,686Land Use District

Commercial district

Maintenance fees

4,135

Site Area

368.84 m2

Utility expenses

3,300

Type of ownership

Ownership

Repair expenses

808

Construction Date

April 9, 1999

Insurance premiums

Structure/Number of Floors

Steel-framed reinforced concrete
structure with flat roof 8F

Depreciation

2,356

Total Floor Area

1,942.54 m2

Other expenses related
to leasing business

8,074

Architect

Architect 5 Partnership

Total operating expenses
from real estate leasing

22,421

BuilderTokyo Branch of Kajima Corporation(3) NOI

28,016

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

25,659Building

Type of Ownership
ML Company

XYMAX ALPHA Corporation

PM Company

XYMAX ALPHA Corporation

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

- 35 -

60

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

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2019
to August 31, 2019

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

115,052

Location (residential address)25-6 Yokoyamacho, Hachioji-shi,Tokyo

Other lease businessrevenue

18,197

Total operating revenue
from real estate leasing

133,249

Lot Number

Land

Building Coverage Ratio

80%

Floor-Area Ratio

600%

Tax and public dues

8,396Land Use District

Commercial district

Maintenance fees

15,645Site Area

1,220.58 m2

Utility expenses

9,039

Ownership

Repair expenses

4,705

Type of ownership

Building

3-2 Yokoyamacho, Hachioji-shi, Tokyo,
and other(2) Operating expenses from real estate leasing

Construction Date

January 26, 1993

Insurance premiums
Depreciation

9,183

Structure/Number of Floors

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

Total Floor Area

7,404.81 m2

Other expenses related
to leasing business

2,331

Architect

NIHON SEKKEI Inc.

Total operating expenses
from real estate leasing

49,576

Builder

MATSUMURA-GUMI Corporation(3) NOI

92,856

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

83,673

Type of Ownership
ML Company

Godo Kaisha ML1

PM Company

XYMAX ALPHA Corporation

Notes:
None- 36 -

274

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019
Muza Kawasaki

Category

RetailOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2019
to August 31, 2019

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

139,180

Location (residential address)

1310 Omiyacho, Saiwai-ku, Kawasakishi, Kanagawa

Other lease businessrevenue

21,2291310 Omiyacho, Saiwai-ku, Kawasakishi, Kanagawa

Total operating revenue
from real estate leasing

160,410

Lot Number

Land

Building

Building Coverage Ratio

80%

Floor-Area Ratio

600%、400%(2) Operating expenses from real estate leasing
Tax and public dues

10,349Land Use District

Commercial district

Maintenance fees

14,577Site Area

742.44 m2

Utility expenses

16,144

Type of ownership

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

Repair expenses

1,278

Construction Date

January 7, 2004

Insurance premiums
Depreciation

16,036Structure/Number of Floors

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

Total Floor Area

3,671.09 m2

Other expenses related
to leasing business

3,095

Architect

Kanagawa Area Branch of Urban
Development Corporation

Total operating expenses
from real estate leasing

61,674

Builder

Shimizu-Taisei-Ando Construction
Consortium

Type of Ownership

Sectional ownership

ML Company

XYMAX ALPHA Corporation

PM Company

XYMAX ALPHA Corporation

Notes:
None- 37 -

190(3) NOI

114,772(4) Operating income (loss)
from real estate leasing

98,735XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019
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, 2019
to August 31, 2019

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 (residential address)

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

Other lease businessrevenue

Undisclosed

Lot Number

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

Undisclosed

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

Structure/Number of Floors

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

OwnershipLand

Building(2) Operating expenses from real estate leasing

ML Company-

PM Company

XYMAX ALPHA Corporation

1,502(3) NOI

22,684(4) Operating income (loss)
from real estate leasing

21,182

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

- 38 -

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

Category

RetailOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2019
to August 31, 2019

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 (residential address)
Lot Number

Land

Building

Lease business revenue

Undisclosed

4-72 Sekido, Tama-shi, Tokyo

Other lease businessrevenue

Undisclosed

4-72 Sekido, Tama-shi, Tokyo

Total operating revenue
from real estate leasing

Undisclosed

Building Coverage Ratio

80%

Floor-Area Ratio

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

Undisclosed

Land Use District

Commercial

Maintenance fees

Undisclosed

Site Area

4,467.51 m2

Utility expenses

Undisclosed

Type of ownership

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

Repair expenses

Undisclosed

Construction Date

September 17, 1999

Insurance premiums

Undisclosed

Depreciation

Structure/Number of Floors

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

Total Floor Area

27,161.00 m2

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

Builder

Toda-Tokyu-ICHIKEN Construction
Consortium(3) NOI

164,325(4) Operating income (loss)
from real estate leasing

151,551

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

12,774

Other 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.

- 39 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2019
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, 2019
to August 31, 2019

Acquisition Price

4,400 million yen

Number ofoperating days

184 days

Type of Specified Asset

Trust beneficiary rights and movables
property incidental to hotel

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

Lease business revenue

Location (residential address)

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

Other lease businessrevenue-

Lot Number

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

163,967

Building Coverage Ratio

80%

Floor-Area Ratio

500%

Tax and public dues

11,248Land Use District

Commercial district

Maintenance fees

1,800

Site Area

1,461.36 m2

Utility expenses-

Type of ownership

Ownership (partial surface right)

Repair expenses

374

Construction Date

March 14, 2016

Insurance premiums

214

Structure/Number of Floors

Steel-construction with flat roof 12F

Depreciation

32,108

Total Floor Area

6,977.47 m2

Other expenses related
to leasing business

5,158

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

Total operating expenses
from real estate leasing

50,904

Builder

Tohoku Branch of Maeda Corporation(3) NOI

145,171

Type of Ownership

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

113,062

Land

Building

ML Company

XYMAX Corporation

PM Company

XYMAX Corporation(1) Operating expenses from real estate leasing
163,967(2) Operating expenses from real estate leasing

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

- 40 -

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

Category

Other (residential)

Overview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2019
to August 31, 2019

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

99,420Location (residential address)

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

Other lease businessrevenue

6,859

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

106,279

Lot Number

Land

Building

Building Coverage Ratio

80%

Floor-Area Ratio

400%(2) Operating expenses from real estate leasing
Tax and public duesLand Use District

Commercial district

Maintenance fees

7,895

Site Area

2,644.63 m

Utility expenses

1,556

Type of ownership

Ownership

Repair expenses

9,621

2

8,620

Construction Date

October 19, 2006

Insurance premiums

Structure/Number of Floors

Steel-framed reinforced concrete
structure with flat roof 14F

Depreciation

19,142

Total Floor Area

10,856.15 m2

Other expenses related
to leasing business

7,234

Architect

Tei Architectural Design OfficeTotal operating expenses
from real estate leasing

54,365

Builder

Kyushu Branch of Nishimatsu
Construction Co., Ltd.

Type of Ownership

Ownership

ML Company

Miyoshi Asset Management Co., Ltd.

PM Company

Miyoshi Asset Management Co., Ltd.

Notes:
None- 41 -

294(3) NOI

71,055(4) Operating income (loss)
from real estate leasing

51,913