Presentation Materials
for the 3rd Fiscal Period Ended August 2019

Securities Code: 3488

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

Overview of the Financial Results

II. Management Highlights for the 3rd Fiscal
PeriodIII. Earnings Forecasts and the Growth Strategy

3

898

Terms

Definition

Estimated value atthe end of period

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

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

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

Appraisal LTV

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

Net asset per unit

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

NAV per unit

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

Acquisition price

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

13

Notes
 Unless otherwise specified, amounts are rounded to the nearest unit and ratios aretruncated at the first decimal place.

IV. ESGAppendix2329

 The following abbreviations of property names are used.
XYMAX Nishi‐Shimbashi Building : Nishi‐Shimbashi

XYMAX Iwamotocho Building : Iwamotocho

XYMAX Shinjuku‐Gyoen Building : Shinjuku‐Gyoen

XYMAX Kamiyacho Building

XYMAX Higashi‐Azabu Building: Higashi‐Azabu

XYMAX Higashi‐Ueno Building : Higashi‐Ueno

XYMAX Hachioji Building: Hachioji

Muza Kawasaki

Life Kawasaki Miyuki Store: Kawasaki Miyuki Vita Seiseki‐Sakuragaoka: Seiseki‐Sakuragaoka

Hotel Vista Sendai: Sendai: ChihayaRenaissance 21 Chihaya: Kamiyacho: Muza2Overview of the Financial Results

Overview of the Financial Results

Overview of Financial Results (1)Operating revenue was 1,348 million yen, up 4% from the latest forecast; profit was 681 million yen, up 3.5%.
Forecast
for the 3rd FP

Operatingrevenue

1,296Actual results
for the 3rd FP

1,348

Difference

51

Operatingexpenses

591

621

30

Operating income

704

726

21

Ordinary income

659

682

23

Net income

658

681

23

Distribution perunit (yen)

2,947

3,052

105

Days

184

184

－
Unit: million yen

Main factors for difference

Convertto DPU

Increase in rent revenue

9.4
million yen+42 yenNon‐occurrence of budgeted
stresses

5.2
million yen+23 yen

Improvement ofrevenue/expense balance inutility accounts

6.5
million yen+29 yen4Overview of the Financial Results

Overview of Financial Results (2) and Occupancy rates by Asset TypePortfolio

Financial Status

Asset size

12
33,040 million yen

Interest‐bearing liabilities
at the end of period

Estimated value at the endof period

43,335 million yen

LTV based on total assets

9,865 million yen

Net asset per unit

101,100 yen

NAV per unit

145,261 yen

Unrealized gain

(Unrealized gain ratio 29.5%)

NOI yield*

5.9%

11,680 million yen
31.9%(Appraisal LTV 25.1%)

Occupancy Rates by Asset TypeAs of the end of 1st FP As of the end of 2nd FP As of the end of 3rd FP

Change from theend of previous FP

Entire portfolio

99.0%

98.9%

98.8%

‐0.1%

Office

99.3%

98.8%

99.5%

0.7%

(exc. retail spaces and obligated residences)

99.2%

99.1%

99.5%

+0.4%

Retail100.0%

100.0%

100.0%–

Hotel

100.0%

100.0%

100.0%–

Others (Residential)

94.3%

95.1%

92.6%

‐2.5%

*Calculated with annualized actual NOI for the 3rd FP ÷ total acquisition price.

5Overview of the Financial Results

Results of Distributions per Unit
Continuing steady growth since IPO. The result for the 3rd fiscal period was 3,052 yen per unit, achieved an increase of
105 yen from the latest forecast.
Initial disclosure

(yen)

4,000

Latest disclosure

Results+135 yen (+4.6%) from forecast at time of listing+105 yen (+3.6%) from 2nd FP‐end forecast

3,596
3,473

3,500

+42 yen (+1.5%) from 2nd FP‐end forecast

3,276
3,062
0,000

3,052
2,917 2,947

3,000

2,901 2,943

2,610
2,500
2,309

2,000

1,500

NAV per unit

1st1stFP FP

2nd FP

3rd FP

138,263 yen

140,479 yen

145,261 yen

4th FP (forecast)

5th FP (forecast)6

Overview of the Financial Results

Financial Status
XYMAX REIT establishes a financial base that puts emphasis on stability and soundness and provides flexibility infinancing.

┃Lender formation (As of the end of 3rd fiscal period)┃┃Financial Status of the 3rd fiscal period┃ Constructing a wide range of and stable bank formation based on mega banks and local
banks that have a financial and business relationship with sponsors.

Balance ofinterest‐bearing debts

Average remaining
duration

11.68 billion yen

2.0 years

Mizuho Bank

23.2%

Sumitomo Mitsui
Banking Corporation
MUFG Bank

18.4%

The Nishi‐Nippon
City BankBank
City
Fukuoka Bank

8.6%

Resona Bank

5.6%

13 companies

Hiroshima Bank

4.3%

Borrowing amount

Hokkaido Bank

4.3%

11.68 billion yen

Shinsei Bank

3.6%

Aozora Bank

2.6%

Chiba Bank

2.6%

Higo Bank

2.6%

Fukoku‐life

2.6%

Average interest rate
Number of financial
institutions

0.575%

Fixed interest rate
ratio

Long‐term loanratio

LTV based on
total assets

71.3%

71.3%

31.9%

┃ Maturity dates of interest‐bearing debts (As of the end of 3rd fiscal period)┃(million yen)

3,350

3,000

2,336

2,336

LTV levelvs. total assets

Possible loan
amountAppraisal LTV

1,012

35.0%

Approx.
1.7 billion yen

27.8%

End of 12th
fiscal period(Fiscal period ending
February 2024)

40.0%

Approx.
4.9 billion yen

32.3%

45.0%

Approx.
8.7 billion yen

37.0%

2,646

2,000
1,000
0

8.6%

┃ Borrowing capacity by LTV level┃

5,000
4,000

13.3%

End of 4th
fiscal period(Fiscal period ending
February 2020)

End of 6th
fiscal period(Fiscal period ending
February 2021)

End of 8th
fiscal period(Fiscal period ending
February 2022)

End of 10th
fiscal period(Fiscal period ending
February 2023)

7

〜Memo〜8Management Highlights for the 3rd Fiscal Period

Management Highlights for the 3rd Fiscal Period

Actual increased rent through tenant replacement
We have achieved a 266,000 yen increase in monthly revenue through 3rd FP tenant replacements.

┃Status of tenant replacement┃ Seven office properties (exc. obligated residences) and Muza(tsubo)Rent increasedRent decreased

No change

Percentage of change

500

400

(%)

20

16

350.97 tsubo

300

12

248.49 tsubo

200
Rent
increased

100

61.85
tsubo

0
1st FP

Rent
increase

218.64tsubo

169.50 tsubo

8

Rent
increase

4

144.66tsubo

0

2nd FP

3rd FP

1st FP

2nd FP

3rd FP

Accumulated trackrecord of 3 FPs

Total Increased
rent/month

30,925 yen(+5.4%)

561,548 yen(+15.2%)

266,055 yen(+12.4%)

858,528 yen(+13.4%)

Increased rent
replacement rate*1

17.6%

88.0%

85.3%

55.3%

Surrender rate*2

4.2%

3.5%

2.0%

‐

*1 The increased rent replacement rate is calculated from the “increased rent replacement area of seven office properties (exc. obligated residences) and Muza ÷ new tenant occupancy area of each property.”*2 The departure rate is calculated from the “departure area of seven office properties (exc. obligated residences) and Muza for each FP ÷ total leasable area of each property.”

10

Management Highlights for the 3rd Fiscal Period

Actual increased rent through contract renewals
We have achieved an approximately 2,255,000 yen increase in monthly revenue through 3rd FP contract renewal
upward rent revisions.

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

No change(tsubo)Percentage of change(%)

1,945.54 tsubo

2,000

15

1,600

12

1,271.69 tsubo
1,200
800

9

716.54 tsubo

Rent increased

6

1,408.96
tsubo

Rent increased

400

3

747.50tsubo

00
1st FP

2nd FP

3rd FP

1st FP

2nd FP

3rd FP

Accumulated trackrecord of 3 FPs

Total Increased
rent/month

0 yen
(0%)

909,380 yen(+8.5%)

2,255,763 yen(+9.8%)

3,165,143 yen(+9.4%)

Increased rent
replacement rate*

0%

58.8%

72.4%

54.8%

Rent increase through 3rd FP
replacement/contract renewal

Approx.

2,500,000
yen/month

Cumulative rent increase throughreplacement/contract renewal
until 3rd FP

Approx.

4,000,000 yen/month

10.1% increase from beginning of 1st FP*The upward rent revision rate is calculated from the “upward rent revision area of seven office properties (exc. obligated residences) and Muza ÷ contract renewal area of each property.”11

Management Highlights for the 3rd Fiscal Period

Actual Results of the Hotel
We achieved a high occupancy rate and ADR in excess of the previous fiscal year’s results and are receiving stable variable rent.

┃ Occupancy rate, ADR, and RevPAR ┃3rd FP(March 1, 2019 – August 31, 2019)
Occupancy rate

91.0%
(%)

ADR
Y‐o‐Y

Occupancy rate (%)

100

9,057 yen

+2.4%

RevPAR

Y‐o‐Y

Y‐o‐Y

8,240 yen+121 yen(+1.4%)

 Adopted variable rent using
moving average
Ensured stable rent revenue by
adopting variable rent thatuses moving averages of thelatest 12 months GOP, which
are little affected by seasonalchanges.

+320 yen(+4.0%)(yen)

3rd FP

ADR

11,00090

10,000

80

9,000

70

8,000

60

7,000

50

6,000
Jan.
2018

Feb.
2018

Mar.
2018

Apr.
2018

May
2018

Jun.
2018

Jul.
2018

Aug.
2018

Sep.
2018

Oct.
2018

┃Number of lodgers in Sendai City┃

Nov.
2018

Dec.
2018

Jan.
2019

Feb.
2019

Mar.
2019

Apr.
2019

May
2019

Jun.
2019

Jul.
2019

Aug.
2019

┃Number of foreign lodgers within Sendai City┃
5,873,875(people)6,000,000
4,487,275(people)250,000

204,340

200,000

4,000,000

150,000
100,000

2,000,000

83,33950,000
0

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

0

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Source: Cultural Affairs and Tourism Bureau, Sendai City

12

Earnings Forecasts andthe Growth Strategy

Earnings Forecasts and the Growth Strategy

Forecast for the 4th Fiscal Period ending February 2020 and 5th Fiscal Period
ending August 2020

Actual results Forecast for thefor the 3rd FP(A)
4th FP(B)

Difference(B)‐(A)

Forecast for the
5th FP

Main factors for difference ofthe result of 3rd FP and forecast
for 4th FP

Covert to
DPU

Operating revenue

Operatingrevenue

1,348

1,329

-18

1,336

Operatingexpenses

621

614

-7

Operatingincome726

Ordinary
income682

Net income

681

715
658
657

-10
-24
-24

Increase in officerent revenue+8.3 million
yen+37 yen606

Decrease due todowntime of Muza

‐4.3 million
yen‐19 yen730

Conservatively
budgeted otherrevenues‐12.8 million
yen‐57 yen+3.9 million
yen+17 yen685
684

Distribution
per unit
(yen)

3,052

2,943

-109

3,062

Days

184

182

-2

184
Unit: million yen

Operating expenses
Cost decreases
related to generalunitholders’ meeting

Non‐operating expenses
Cost increases
related to financeand expenses‐13.2 million
yen‐59 yen14

Earnings Forecasts and the Growth Strategy

Management Strategy going forward
XYMAX REIT will maintain a management approach that leverages its 3 strengths, and pursue revenue expansion.

Management that leverages our “3 strengths”

Assessment

Management

Sourcing

for building portfolios

for internal growthfor external growth┃Management policies for 4th fiscal period and beyond┃Internal
growth• Achieve higher revenue by eliminating rent gap in 6 office properties located in Tokyo 23 wards• Consider cutting expenses to the extent that it does not damage tenant satisfaction• Maintain asset value through executing appropriate repairs and CAPEX

External
growth• Accurately discern the potential of properties with scope for internal growth, and build pipeline• Maintain unique sourcing, leveraging sponsor group customer base• Acquisition environment is challenging, but we will adhere to a certain level of yields

Financial
policy• Implement property acquisitions through strategic use of remaining borrowing capability, against
the backdrop of a low LTV level (31.9%)• 4th FP refinancing to be implemented on consideration of both maturity dates and financing costs
15

Earnings Forecasts and the Growth Strategy

Internal Growth Strategy(1) —Management Policy for Each PropertiesXYMAX REIT aims to improve the profitability of the portfolio by growing and stabilizing revenue and by assessing thecharacteristics and advantages of each property.

Growth of
Revenue

Stability of
RevenueNOIClassification of
Features / Potentials
Composition
profitability
Nishi‐
Shimbashi
OF‐01
Properties in good locations close to stations
Iwamotocho
OF‐02
Small to medium‐sized buildings that can provide rent unit
Shinjuku‐
OF‐03
prices and areas that match the needs of SMEs
37%
OF‐04
Gyoen
Pursuing aggressive revenue growth when the market is rising
OF‐05
is possible, while also obtaining stable revenues, as the new
Kamiyacho
supply of small to medium‐sized buildings is limited
OF‐06
Higashi‐Azabu
Higashi‐UenoManagement policy
As a profit driver for high growth, makecontinuous effort to achieve maximum
rents by tenant replacement and
upward rent revision by assessing
current favorable office leasing market
and competitors’ trends

Located in the West Exit of Kawasaki Station area, where thenumber of work, home and leisure facilities is growing
Stable and increased revenues can be expected from a tenantconfiguration and development of the area

Aim to maintain and improve revenue by
judging whether to renew the contract orinvite new tenants through analyzing
characteristics of tenants and spaces

RT‐01

Muza

12%

OT‐01

Chihaya7%

Possesses stable housing needs due to good access to
Hakata and excellent living environment

OF‐07

Hachioji

10%

Possesses stable rental needs due to top‐class building
grades and variety of unit size

Aim to realize opportunities to improve
revenue discovered through expertiseand know‐how of management, while
maintaining stable revenue as aprinciple

HT‐01

Sendai15%

Located in the Sendai Station area, a transportation hub,capable of capturing stable demand for domestic guests
The number of foreign lodgers is also on an increasing trend

Maintain stable revenue throughoperation by the proven operator

RT‐02
RT‐03

Kawasaki
MiyukiSeiseki‐
Sakuragaoka

19%(Kawasaki Miyuki) Appropriate rent burden ratio level, as
well as a stable trade region(Seiseki‐Sakuragaoka) Connected to a main station on the
Keio Line with a strong ability to attract customers

Maintain stable revenue as the base ofentire portfolio by receiving fixed rents
from credible tenants

16Earnings Forecasts and the Growth Strategy

Internal Growth Strategy(2) — Future Scope
For the six office properties that constitute the internal growth drive, we will eliminate the rent gap and achieve
higher rents.

┃Rent gap for the six office properties*┃(exc. retail spaces and obligated residences)

As of the endof 1st FP

As of the endof 2nd FP

As of the endof 3rd FP

Contracted unit
rent

16,277 yen

16,524 yen

17,059 yen(vs. previous FP)‐

Appraisal unit
rent
Rent gap┃Floor area scheduled for contract renewal at thesix office properties┃■Sections with appraisal rent unit price and rent gap■Sections with only assumed new rent unit price and rent gap■Section without rent gap(tsubo)1,600

1,527.61

17,526 yen＋247 yen
17,526 yen＋535 yen

1,200

1,102.03

17,831 yen

6.1%

4.5%

(vs. previous FP)

‐

‐1.6%

‐1.5%

Assumed newunit rent‐‐

19,732 yen

Rent gap

‐

‐

15.7%

Appraisal unit rent: Rent unit price adopted in ongoing appraisals
Assumed new unit rent:
Assumed unit price for new rent contracts at change of tenant, based on
XYMAX proprietary market analysis, etc.

291.37

95.84

1,000

7.7%

1,356.46

172.241,400

172.24

800
600
400
200
0

1,355.37

459.9198.98

1,065.09
12.10

833.95348.83

4th FP

5th FP

6th FP

7th FP* Collective term for Nishi‐Shinbashi, Iwamotocho, Shinjuku‐Gyoen, Kamiyacho, Higashi‐Azabu and Higashi‐Ueno.
* The various unit rents are calculated using a monthly unit rent that includes common area maintenance revenue, to which is applied an average weighted in proportion to the leased
floor area.

17

Earnings Forecasts and the Growth Strategy

Internal Growth in 5th FP : tenant replacement at Muza Kawasaki
Effective use of subject space achieved significant increases in rent, based on proactive leasing strategy
with management strength that every section of sponsor group prides itself on, as well as proprietary database.

For approximately 220 tsubo of space coming up for the termination of fixed‐term lease in 4th FP

Achieved rent increases of around60%* over the previous tenant*Unit rent per tsubo, including common area maintenance revenue, compared to previous tenant. Calculated using weighted‐average method.

Strategy

AnalysisTaking into account changes insurrounding environment, wecreated a scenario in which
rent increases are driven bysubdividing the space• Utilizing a track record of involvement in
the property stretching over more than 15
years, we identified changes in thesurrounding environment, such asincreased prosperity and an increase in thenight‐time population, hypothesizing

more abundant demand for smaller
floor areas, and the possibility ofconcluding contracts and higher unit
rents.

Execution
Research tenant needs
through wide‐ranging

pre‐marketing• Leverage the database of

approximately 10,000 commercial
tenants acquired by the sponsor groupthrough retail facility management and FM
management, and implement pre‐marketing.
• As per the initial hypothesis, there was moreabundant store‐opening demand fromtenants for floor areas of about 100
tsubo, confirming the ability to achieve
higher unit rents.

Leasing utilizing

tenant relations
andproprietary network• Captured expansion needs forinternal tenants by using excellent
relationships with existing tenants• Used sponsor group’s proprietary network for

rapid execution of leasing activities• From among the parties intending to open
stores with multiple favorable conditions, weselected those tenants that would improve theprofitability and convenience of the facility,
and concluded long‐term stable,
fixed‐term contracts.

18

〜Memo〜19Earnings Forecasts and the Growth Strategy

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

OfficeRetailHotel

Focus on properties with strong
attractiveness to tenants

Focus on stability of tenant
rent or property price

Focus on hotels specializing in“lodging” near transportation hubs

Properties located in the 8 central✔

Properties where revenue offacilities is available for analysis✔

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

Properties with a unit rent of 10,000
yen to 25,000 yen✔

Properties where rent burden on
tenants is available for analysis✔

Properties located in areas offering
excellent access to transportation
hubs✔

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

Properties where sales price islower than the market priceof overseas visitors is✔ number
expected to increase✔

wards of Tokyo, Central
Nagoya, Central Osaka andCentral Fukuoka

Properties located in areas where the

80% or more of the portfolio consists of office, retail, and hotel properties
20

Earnings Forecasts and the Growth Strategy

External Growth (2) – Status of acquisition studies–
We are considering the acquisition of properties by firmly maintaining acquisition policy by asset type.
In particular, we will actively work on acquisition of properties where internal growth opportunities that utilize management strengths.

┃ Acquisition policy ┃┃Borrowing capacity by LTV level┃ Firmly maintain price lines that are conscious of implied cap rates
 Maximize use of the XYMAX Group strengths of assessment andsourcing Assume investments that incorporate internal growth after
acquisition for properties with opportunities for internal growth,such as those in which rent gaps exist
 Flexible acquisition through borrowings can also be selected,
depends on investment unit price trends, due to our low LTV level

Current LTV level: 31.9%
LTV levelvs. total assets

Possible loan
amountAppraisal LTV

35.0%

Approx.
1.7 billion yen

27.8%

40.0%

Approx.
4.9 billion yen

32.3%

45.0%

Approx.
8.7 billion yen

37.0%┃Properties under consideration┃
Location

Asset type

SourceFocused point

5 wards of Tokyo

OfficeProperty managementbusiness relation

With a large rent gap in this market, significant internal growth is able toexpect at the time of lease contract renewal and tenant replacement

Ordinance cities

Retail (Supermarket)

CRE client

Stable rent can be obtained due to the expected stability of tenant sales,
and assumed relatively low rent burden

Hotel (specialized in “stay”)

Private fund managed
by the sponsor group

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

Core regional city(scheduled to complete at November
2020)

21

Earnings Forecasts and the Growth Strategy

Growth Image in DPU
DPU has continued to trend upward steadily since the IPO, and our aim is to raise this further going forward.
3,300yen┃ Stabilized DPU* ┃ Trend in DPU since IPO, excluding special factors

5.2% annual growth3,050 yen

2,943 yen

2,902 yen

1st FP

3,062 yen

3,052 yen

2nd FP

3rd FP

Preceding leasing costs forre‐tenants after
the 4th fiscal period

4th FP (forecast)Continuousinternal growthFlexible
external growth

5th FP (forecast)

Near future

Occurrence of downtime in re‐tenantof large section and temporary
increase in repair expenses of Muza

*Calculated with stabilized DPU that takes into account excluding special factors such as the cost of IPO in the 1st and 2nd FP and taxes and public dues.

22

ESG

ESG

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

┃ CASBEE－Real estate┃
Newly
Acquisitionof 3rd FP

XYMAX Iwamotocho
Building┃ BELS ┃Newly
Acquisitionof 3rd FP

Assessment Rank

XYMAX Shinjuku‐
Gyoen Building
Assessment Rank

Rank A

Rank A(Very good)(Very good)XYMAX Higashi‐
Azabu Building

XYMAX Hachioji
Building

Assessment Rank

Assessment Rank

Rank A

Rank A(Very good)(Very good)

Improvement of environmental performance throughbuilding/facility renovation
 Implementing renovation work for air
conditioning in tenant exclusive area, we areworking towards saving energy and reducing
environmental burden, in addition toenhancing tenant satisfaction.
Revision of air conditioning system at Iwamotocho

Hotel Vista Sendai
Assessment Rank★★★

┃Acquisition status up to 3rd FP┃
Number of Acquisition ofEnvironmental Certification

5

Acquisition rate (based on
total floor area)

36.9%┃ Promotion of paperless asset management┃ Working toward to realize paperless workflow at Asset Management
Company and promoting resource saving• Introduction of electronic approval system at Asset Management
Company• Creating paperless instructions circulation system between thetrustee the asset management property

24

ESG

ESG Initiatives (2) Social (1)Initiatives for a Sustainable Society┃ Signing of Principles for Financial Action for the 21st Century by Ministry of the Environment┃
 Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21stCentury) was established on October 4, 2011 as an action guideline for financial institutions expressing
concern about the future of the earth and intending to fulfill their responsibilities and roles in forming asustainable society.
 XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation, Asset Management Company of XYMAX REIT,
has endorsed the ideas of the Principles and became a signatory on December 27, 2013.

Introduction of Disaster‐Relief Vending Machines
 Introduction of disaster‐relief vendor, which provides drinks for free by remote control in times of emergency such aslarge‐scale disasters to three properties of XYMAX REIT (Higashi‐Ueno, Higashi‐Azabu, Hachioji). Promoting
replacement with existing vending machines without raising costs or changing commission income. Assumes the role ofcontributing to society as temporary infrastructure, in times when utilities have been disrupted due to natural
disasters.

Used normally as a regular vending
machineDedicated key or remote control

Disaster occurs!
Power cutStart of free supply of drinks!

Switch to
emergency power
supply25

ESG

ESG Initiatives (3) Social (2)Personnel Training┃Introduction of qualification incentive system┃ Asset Management Company introduced a system to provide
incentives for employees who acquired certain qualifications
necessary for operating and managing real estate including
Licensed Real Estate Broker and ARES Certified Master, andare promoting the improvement of motivation in training andself‐improvement of employees.

 Status of qualification (incl. unregistered) by employees of Asset Management
Company(As of October 1, 2019)• Licensed Real Estate Broker

26• Real Estate Appraiser

2• ARES Certified Master6• Real Estate Consulting Master3• Certified Building Administrator

3

Initiatives for Work‐style Reform┃Introduction of flextime system┃
 Flextime system is introduced widely in the sponsor group and is also applied to theemployees of Asset Management Company.
 Asset Management Company promotes the improvement of work‐life balance of each
employee by supporting a flexible work style in line with the degree of activity with
the introduction of a flextime system.

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

Number of executives and employees(excluding dispatched employees)┃Participation in Telework Days┃ Participated in the promotion of Telework* toward the 2020 Tokyo Olympics –National Project– with the entire sponsor group and promoted implementation of off‐
peak commuting (Jisa BIZ).
(Project period: July 22 to August 2 and August 19 to August 30, 2019)*Telework refers to people working at a place other than their main office, with ICT tools (internet, etc.).
Source: Quoted from "New Ways of Working and New Types of Office" from Xymax Real Estate Institute, dated April 13, 2017

Maternity or
child care leave

Male

Female(Percentage
of female)

Total

April 2018

16

21

56.8%

37

0

April 2019

15

23

60.5%

38

1

October 2019

13

22

62.9%

35

2

26

ESG

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

Examination by complianceofficer

Proposal by division(s) inchargeUnapproved

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

Rejected

Rejected

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

Deliberation and resolution
by REIT Investment
Committee *Rejected

Deliberation andresolution by Board of
Directors’ Meeting

Relevant
approval
procedures

Matters other than the above, etc.

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

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

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

5.6 %(As of August 31, 2019)

27

ESG

ESG Initiatives at Sponsor Group / Status of IR Activities
ESG initiatives at Sponsor Group
Received DBJ Green Building Certification for Group
headquartersXYMAX Akasaka 111 Building*

XYMAX Tameike‐Sanno Building** As of the date of this material, XYMAX REIT has not determined the acquisition of these properties and there is no guaranteethat XYMAX REIT will acquire them in the future.

┃ Initiatives for society ┃ Nurturing real estate business personnel through “Karaksa Fudosanjuku”

 CASBEE Real Estate: Appointed as assessor
 Holding lectures at Real Estate Sustainability & Energy‐Efficiency Diffusion Review
Committee, Ministry of Land, Infrastructure, Transport and Tourism
 Holding lectures at Land Economy and Construction Industry Bureau, Ministry ofLand, Infrastructure, Transport and Tourism
 Contributing to ARES Real Estate Securitization Journal
 Serving as lecturer of ARES Real Estate Securitization Master training course
 Introduced telework for back‐office departments

Status of IR Activities┃IR activities at 3rd FP┃┃IR activities in 4th FP and after┃

IR activities for individuals• Sept. 2019: J‐REIT Lady’s Meeting (Tokyo)• Aug. 2019: Nikkei IR Individual Investor’s Fair
• Aug. 2019: Nikkei J‐REIT Infrastructure Fund Forum• Nov. 2019: J‐REIT Fair 2019 (Tokyo)• Dec. 2019: Nikkei J‐REIT Infrastructure Fund Forum (Tokyo)• Jan. 2020: SMBC Nikko J‐REIT Seminar (Fukuoka)

IR activities for institutional investors• Domestic: Visited 15 companies in urban areas and
15 companies in local areas• Overseas: Visited 13 companies in Hong Kong andSingapore and others

Nikkei J‐REIT Infrastructure Fund Forum28

APPENDIXAPPENDIX

Overview of XYMAX Group
Company
nameOfficeRetail/Store

LogisticsHotel

XYMAX Corporation (non‐listed)

Establish
ment

March 1, 1990
※Spin‐off from Recruit Co., Ltd. through employee
participatory MBO in 2000

Locationofheadquarters

1‐1‐1 Akasaka, Minato‐ku, Tokyo

Capital2,612.865 million yen(as of March 31, 2019)

Sales

88.488 billion yen(actual results for the fiscal period ended
March 2019)

Real estate consulting andmanagement services

Real estate consulting

Major
shareholders

XYMAX Shareholding Association, directors &employees, clients and financial institutions
Total: 274 (as of March 31, 2019)

Numberofemployees

5,322 (as of April 1, 2019)*Consolidated figures for the Group

Other specialized
services

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

Asset Management

XYMAX
XYMAX TRUSTXYMAX REAL ESTATE INVESTMENT ADVISORS/MAX‐REALTY

Asset management
Asset strategy, etc.

Valormax
Y.Estate

SG Asset Max

Abilitas Hospitality

Real estate
management
Property management
Building maintenance

East JapanXYMAX ALPHA

KansaiXYMAX KANSAI

KyushuXYMAX KYUSHU

Integrated
management of
store facilities
Facility management*Consolidated figures for the Group

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

Leasing brokerage

Market survey/analysis
Research/planning on
management and repair

Hotel business

Real estate appraisal
Real estate assessment/survey

XYMAX INFONISTAXYMAX REAL ESTATE
INSTITUTE

KARAKSA HOTELSXYMAX ASSETCONSULTING

Cleaning

Security

Satellite office

Risk management

XYMAX SALAMAX SECURITY SERVICEXYMAX ZXY Department

Safety Organization for
Urban Renewal

Realize growth of XYMAX REIT by drawing on all of
the XYMAX Groupʼs expertise and workforce

30

APPENDIX

Corporate History
Started Office Property Management Business
1982︓

1996︓

2000︓

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

Made a Full‐scale Entry to Retail Property Management BusinessStarted the property management service tocorporate and private owners other than Recruit
Group.

2001︓

Establishment of Retail Property Management Business Division of XYMAX

MBO from Recruit Group which gave birth to
XYMAX Group

Entry into Hotel‐related Business
2012︓

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

Started Asset Management Business
2007︓

2000

2001

Started the provision of hybrid
service of real estate andfinance by setting up MAX‐REALTY, a joint venture with
Sumitomo Mitsui Banking
Corporation.

2002

2003

2004

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

Set up Real Estate Investment Advisors Corporation

2006

2007

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

2008

2009

2010

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

2011

2012

2013

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

2014

2015

2016

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

2017

2018

Made an entry into
the J‐REIT business

31

APPENDIX

Fertile Management Base of the XYMAX GroupThe XYMAX Group has been ranked the No. 1 domestic service provider in the PM business in terms of contracting
record of real estate management projects for six years in a row since 2010*.
■ Human resources ︓1,897 people engaged in real estate management, 86 in leasing, and 76 in CRE related business(as of September 1, 2019)■ Relationship with real estate owners ︓ approximately 260 companies■ Track record in property sales and brokerage: ︓269 buildings, approximately 478 billion yen(accumulated total from April 1, 2010 to March 31, 2019)┃ Real estate management record
Actual number ofcontracts

867buildings(As of the end of July 2019)27┃

Hokkaido ∙Tohoku Region

Gross floor area
Approx. 3.8 million tsubo（Approx. 12.5 million m2)

1,000

Central ∙ Koushin'etsu
Region┃ Facility management record (As of the end of June 2019) ┃Actual number ofcontracts

Approx.

Hokkaido Region

Number of customers

12,100 stores 144 corporations

Tohoku Region
8

1,900

Central ∙Kanto Region
Chugoku ∙Koushin'etsu Region
4,800
Kanto Region
Shikoku Region
Kansai Region 62
500
Chugoku ∙600
Shikoku Region 190
14

Kyushu ∙ Kyushu Region
Okinawa Region
56

Kansai Region

Okinawa Region

2,600

10

1,200

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

32

Cooperation with ITBM Center

Statutory inspections, confirmation of items pointed
out/Proposing correction

Asset Value
Maintenance

Building maintenance and management(cleaning/security/maintenance)

Optimization of management specifications

Accounting
ReportConfirming of completion of repair
work/Arranging payments

Construction work data

Arranging contractors/Obtaining
estimates/Assessing amounts

Leasing Related
Operations

Checking /Reporting on status of items
requiring repair

XYMAX Group

Repair planning

Report/Propose

Preparation and submission of annual budgets

Owner

Preparation of monthly reports┃ Areas of Real Estate Management Operations┃

Issuing invoices/Confirmation of
payment/Payment of expenses

Arrangement of move‐in

Tenancy screening/Negotiation for conclusion

TenantManagement

Agency’s relation

Direct leasing

Instruct/Judge

Marketing/Sales strategy planning

Checking completion of agreements on
termination/Restoration

Rent negotiations (raising/lowering)

Handling delinquent tenants

Preparation of detailed building
regulations/Guidance for tenants

Responding to tenants (responses tocomplaints, etc.)

APPENDIX

Property Management
The XYMAX Group provides consistent real estate management and operation services, ranging from property management(on behalf of owners) to building maintenance operations.
In addition, the XYMAX Group has all kind of data on real estate management through a track record accumulated over the years.
┃ Data Related to Real Estate Management ┃Contracted rent data

120,794 cases
buildings(covering past 24 years)

Asking rent data

24,391 cases
buildings(covering past 8.5 years)

38,651

52,821(during the period between April 1, 2000 and August 31,2019)

141,482 cases

Building
Management

33

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

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

TA (Technical Adviser) Support

Knowledge Support

TAs give backup to all building maintenance sites

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

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

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

Real‐Time Information Gathering During of an
Emergency or Disaster

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

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

34

APPENDIX

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

XYMAX store management system

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

Corporate
headquarters
Status confirmation

Inquires
Corporate headquarters

Order placement
Facility management
systemService providers

Orderplacement

24‐hour call center

InquiresBenefits of integrated management to clients
 Improving operational efficiency of store management• Introduce call center and store management system• Reduce management staff of headquarters

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

 Ensure thorough compliance, response to government agencies

Service providers

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

35

APPENDIX

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

┃Direct relationship with real estate owners┃
XYMAX REIT

Acquisition
Trap disposal needs

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

Asset Management Company
Realization of external growth
XYMAX Group

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

Owner relationship, customer base
General businesscompany

Building owners

Others3 buildings or moreManagement of tenants forlarge‐scale renovation andreconstruction
Securing funds for large‐scalerenovations and reconstruction

Financing
InheritanceROE management

Financing

30%

50%

20%

36%

42%

23%

1‐2 buildings

Measures against inheritanceand business succession

3 buildings or more
1‐2 buildings

52%

30%

46%

3 buildings or more

16%

1‐2 buildings

20%
0%Percentage of client types for real estate management business(As of the end of July 2019)
Number ofproperties undermanagement

867

Others38%

J‐REIT
21%

Individual,
etc.
41%

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

24%
45%

39%

35%

45%
20%

40%
Concerned┃Diversity among real estate owners┃

24%

24%

60%

80%

Slightly concerned

100%

Not concerned

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

Management of tenants forlarge‐scale renovation andreconstruction

50‐59
60‐69
70 or older
40 or younger

Securing funds for large‐scalerenovations and reconstruction

50‐59
60‐69
70 or older
40 or younger

Measures against inheritanceand business succession

50‐59
60‐69
70 or older

0%

20%

40%
Concerned

60%
Slightly concerned

80%

100%

Not concerned

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

36

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

Use and geographical area of real estate in real estate disposals andreal estate sales brokerage results
2.3%

34

269

147.6 billion yen

10.4%
0.6%

478.0 billion yen

Hotel

57.5%

Logistics

Tokyo

40.1%

4.9%
5.3%

Other Tokyo Metropolitan
Area
Osaka Area
Nagoya Area

24.3%

Land

Average perbuilding

23 Wards of Tokyo

9.6%

Residential

14.0%

5 Wards of Toko

13.1%

Retail

8.1%
7.0%

1.9%
0.7%

OfficeFukuoka Area
Other

4.3 billion yen

Other

1.7 billion yen

By asset (whole)(based on transaction price)

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

Accumulated track record of real estate disposal and brokerage services(accumulated total from April 1, 2010, excluding sales to XYMAX REIT)(hundred million yen)
5,000
4,500

■ Sale and intermediary to other than

4,000

■ Sale and intermediary to investment

investment corporations, etc.

16.4 billion yen to investment corporation, etc./Whole 53.1 billion yen(Actual results from April 1, 2010 to March 31, 2019 Fiscal year average)

corporations, etc.

3,500
3,000

2,964

2,500

2,607
2,071

2,000
1,500
1,000

645

500
0

3,304

934

1,251

269

427

585

694

End of March
2011年3⽉末

End of March
2012年3⽉末
2012

End of March
2013年3⽉末
2013

End of March
2014年3⽉末
2014

2011

1,676

756
End of March
2015年3⽉末
2015

1,075

1,148

End of March
2016年3⽉末
2016

End of March
2017年3⽉末
2017

1,378

1,476

End of March2018年3⽉末
2018

End of March
2019年3⽉末
2019

Source: XYMAX Corporation* Vehicle for acquisition and holding of properties with the intent to transfer them to real estate investment corporations

37

APPENDIX

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

XYMAX
Group
business┃ Office market cycle in the 23 wards of Tokyo ┃Publicationof
information

XYMAX Real Estate
Institute Corp.

Mass media（ New contracted rent index ）180
Various media

2008Q2

160
140

Posting, contribution and lectures in mass media and various
media (example)
 PostingNihon Keizai Shimbun, Nikkei Business Daily, etc.

 Contribution

ARES Real Estate Securitization Journal
BUILDING TOKYO, etc.

 Lectures

Rent Index （100＝2010Q1）

Waseda University Advanced Collaborative Research Organization for Smart Society

2019Q2

2001Q1

120

2003Q2

100
2012Q2

80
60
0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

（Vacancy rate︓％）Land Economy and Construction and Engineering
Industry Bureau, Ministry of Land, Infrastructure,
2018Q2

2018Q3

2018Q4

2019Q1

2019Q2

Vacancy rate

1.29%

1.10%

0.87%

0.81%

0.87%

New
contracted
rent index

113

122

123

123

127

Transport and Tourism
Institute for Building Environment and Energy
Conservation (IBEC)WORKTECH , etc.
 Joint study

Beijing University, Tokyo University,
Nihon University, etc.

 OtherIndustry Partner of the CRE at MIT in U.S.A(Source) XYMAX Real Estate Institute Corp. (Vacancy rates for March 2011 and before arecalculated based on data from a major leasing brokerage company)

38

APPENDIX

Market Analysis (1)The scarcity of small‐ and medium‐scale office buildings will improve in the future, when considering the current limited
supply trend.
XYMAX REIT believes that the volatility of rent for small‐ and medium‐scale office buildings is relatively lower than that oflarge‐scale buildings and is highly stable revenues.
┃ Office Stock Pyramid 2019 covering the 23 Wards (net rentable area)┃┃New contracted rent by office building scale┃

23 Wards of Tokyo: 12.81 million tsubo, 9,206 buildings,
average building age: 30.9 years
Small‐ and medium‐scale office70buildings (Gross floor area: 300‐5,000 tsubo)65
Whole: 6.05 million tsubo,
8,459 buildings, 31.6 years on average55

1.55 million tsubo (26%)

50

floor area: 5,000 tsubo or more)
Whole: 6.76 million tsubo,
747 buildings, 23.3 years on average

30

20 years or older:25

4.98 million tsubo (82%)

20

40

30

20

80

76
60

20 years or older:3.39 million tsubo (50%)

Less than 20 years:

3.37 million tsubo (50%)

5

10

0

118

100

0
50

125
146
79

1.21 million tsubo(18%)

10

1.07 million tsubo (18%)

Q1: Jan. – Mar.
Q2: Apr. – June
Q3: July – Sept.
Q4: Oct. – Dec.

140

2018
Q2

2018
Q3

2018
Q4

2019
Q1

2019
Q2

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

115

124

123

122

125

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

116

124

118

119

118

15

Less than 20 years:

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

160

120

Old seismic standard:
Building age (years)

35

190

Large‐scale office buildings (Gross

45
40

200

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

180

60

Old seismic standard:

Rent Index (100＝2010 Q1)

10

20

30

40

50

Source: Survey Report by XYMAX Real Estate Institute Corp.
“[23 Wards of Tokyo] Supply of New Office Space 2019 & Office Stock Pyramid 2019”

Source: Survey Report by XYMAX Real Estate Institute Corp.
“Office Market Report Tokyo Q2 2019”39

APPENDIX

Market Analysis (2)XYMAX REIT believes that there will be robust tenant demand within the range of 10,000 to 20,000 yen in general, regardless of the market
environment.
XYMAX REIT believes that there is a clear correlation between convenient locations (the time required to walk to the nearest station) and theoccupancy rate.
┃Vacancy rate by time required to walk to the nearest┃Distribution of contracts concluded in the 23 Wards ofstation in the 23 wards of Tokyo┃
Tokyo (by unit price of contracted rent) ┃
(%)
20
18
16
14
12
8
6
4
2
0

Large segments ofcontracts concludedin the market

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

■■ Oct.‐Dec. 2018■■ Apr.‐June 2019

Jan.–Mar.2010

(%)
14.0

All locations (combined)
Within a 3‐miunte walk to the nearest station
3–5 minute walk to the nearest station

Number of cases: 1,287
Number of targeted properties: 1,031
12.0

More than a 5‐minute walk from the nearest station

10.0

Apr.–June 2012

8.0

Number of cases: 593
Number of targeted properties: 568
6.0

4.0

Apr.–June 2019
Number of cases: 1,117
Number of targeted properties: 949

2.0

0.0

Unit rent (yen/tsubo)
Source: Created by XYMAX Real Estate Institute uponrequest of Asset Management Company

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

40

APPENDIXXYMAX Group’s Expanding B to C Business Activities (ZXY)
Membership satellite office business “ZXY” leading work‐style reform┃Workplace service enabling free work‐style┃

ZXY Monthly

ZXY kids space

ZXY Mitaka*

ZXY Umeda*「GOOD DESIGN BEST 100」受賞

 Location of workplaces
Tokyo

Kanagawa

Chiba

Saitama

Osaka

Open Space Change in number of members and workplaces
Members

Workplaces250,000

100
Number of members (members)

⼤阪環状線

200,000

80
Number of workplaces(workplaces)

150,000
100,000
50,000035
30 30 31 32
29
28
26

41

45

49

54

60

209,15040
179,583
139,24421
122,925
14
113,41220
44,19920,51689,22076,90230,3807,572
46,61823,785
6,242

0

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

41

APPENDIXXYMAX Group’s Expanding B to C Business Activities（Karaksa Hotels）
The Groupʼs own brand “Karaksa Hotels” also meeting the needs for overseas tourism.
Osaka

Hokkaido

69 rooms karaksa hotel Osaka ShinsaibashiⅠ*（Opened）
Mar. 2016139
rooms karaksa Spring hotel Kansai Air Gate*（Opened）
Jan. 2017
112 rooms karaksa hotel Osaka Namba*（Opened）
Nov. 2017396 rooms karaksa hotel grande Shin‐Osaka Tower*(To be opened)
Nov. 2019
To be opened 176 rooms

Jan. 2018
To be opened

177 rooms karaksa hotel Sapporo*（Opened）
140 rooms

KyotoMar. 2016 36 rooms
karaksa hotel Kyoto I*（Opened）

karaksa hotel grandeShin‐Osaka Tower

Chibakaraksa hotel Osaka Namba

To be opened 190 rooms
karaksa hotel Sapporo

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

15

2,000
1,908

Number of hotels

1,600

karaksa hotel premier Tokyo Ginza
Number of guestrooms

10
karaksa hotel Kyoto I

1,200

1,137

13

OpenedTo be opened

May 2019
Jul. 2019
To be opened
To be opened

533

5

Tokyo

karaksa hotel TOKYO STATIONrooms

57 rooms karaksa hotel premier Tokyo Ginza*（Opened）
151 rooms karaksa hotel TOKYO STATION*（Opened）
103 rooms
162 rooms

356
105

0

2

4

2016

2017

8

400

5
2018

2019

800

To be
opened0

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

42

APPENDIX

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

Management that leverages our “3 strengths”

Assessment

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

Management

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

Sourcing

 Utilizing the real estate buying and selling needs of the customer base of the CRE service
provided by the sponsor group, we will create property acquisition opportunities in
exclusive transactions.
43

APPENDIX

Portfolio List (1)Asset no.

OF‐01

OF‐02

OF‐03

OF‐04

OF‐05

OF‐06

Asset type

OfficeOfficeOfficeOfficeOfficeOfficeProperty nameXYMAX Nishi‐Shimbashi Building

XYMAX Iwamotocho Building

XYMAX Shinjuku‐Gyoen Building

XYMAX Kamiyacho Building

XYMAX Higashi‐Azabu Building

XYMAX Higashi‐Ueno Building

Location

Minato‐ku, Tokyo

Chiyoda‐ku, Tokyo

Shinjuku‐ku, Tokyo

Minato‐ku, Tokyo

Minato‐ku, Tokyo

Taito‐ku, Tokyo

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

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

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

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

3 minutes on foot from Naka‐
Okachimachi station Tokyo
metro Hibiya line

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

4 minutes on foot from JR
Okachimachi station, andother

Access3 minutes on foot from
Uchisaiwaicho station on the
Toei Subway Mita line
6 minutes on foot from
Shimbashi station on the JRTokyo metro Ginza line , andother

Acquisition price(million yen)

2,500

4,250

5,020

880

1,550

1,150

Land area

402.53㎡

864.83㎡

839.09㎡

228.83㎡

365.05㎡

368.84㎡

Total floor area

2,517.50㎡

6,261.06㎡

6,084.32㎡

1,356.51㎡

2,570.13㎡

1,942.54㎡

Leasable area

1,897.75㎡

4,152.30㎡

4,792.13㎡

1,205.29㎡

2,016.00㎡

1,735.34㎡

Completion

2000

2001

2001

1991

1999

1999

Structure/Number of
FloorsReinforced concrete structurewith flat roof 9F

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

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

Steel‐construction with flat
roof 8F

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

Steel‐framed reinforced
concrete structure with flat
roof 8F

Number of tenant(As of the end of 3rd
fiscal period)

8

14

6

8

4

8

Occupancy rate
(As of the end of 3rd
fiscal period)

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

44

APPENDIX

Portfolio List (2)Property no.

OF‐07

RT‐01

RT‐02

RT‐03

HT‐01

OT‐01

Asset type

OfficeRetailRetailRetailHotel

Other (Residential9)

Property nameXYMAX Hachioji Building

Muza Kawasaki

Life Kawasaki Miyuki Store

Vita Seiseki‐Sakuragaoka

Hotel Vista Sendai

Renaissance 21 Chihaya

Location

Hachioji‐shi, Tokyo

Kawasaki‐shi, Kanagawa

Kawasaki‐shi, Kanagawa

Tama‐shi, Tokyo

Sendai‐shi, Miyagi

Fukuoka‐shi, Fukuoka

4 minutes on foot from JR
Sendai station

Access4 minutes on foot from Keio
Hachioji station on the Keio
Electric Railway Keio Line

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

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

5 minutes on foot from JR
Hachioji station

JR Kawasaki station directconnection

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

Acquisition price(million yen)

2,600

4,100

790

3,100

4,400

2,700

Land area

1,220.58 ㎡

742.44 ㎡ (*1)

1,879.15 ㎡

4,467.51 ㎡ (*2)

1,461.36 ㎡ (*3)

2,644.63 ㎡

Total floor area

7,404.81㎡

3,671.09㎡ (*1)

2,596.80㎡

27,161.00㎡ (*2)

6,977.47㎡

10,856.15㎡

Leasable area

5,556.03㎡

3,703.87㎡

2,677.54㎡

27,610.61㎡

7,066.25㎡

10,287.93㎡

Completion

1993

2004

1997

1999

2016

2006

Steel‐construction with flat
roof 12F

Steel‐framed reinforced
concrete structure with flat
roof 14F

Structure/Number of
FloorsSteel‐framed reinforced
concrete/ Steel‐construction
with flat roof B1F/9F

Steel‐framed/Steel‐framed
reinforced concrete structurewith flat roof/stainless steel
plate roofing B2F/27F

Steel‐construction with flat
roof 2F

Steel‐framed reinforced
concrete structure/reinforced
concrete structure/steel‐construction withflat roof B3F/27F

テナント数（第３期末時点）

24

17

1

1

1

133

稼働率
（第３期末時点）

98.2%

100.0%

100.0%

100.0%

100.0%

92.6%(*1) Land area indicates the figure equivalent to 6.9% of the right of site (rounded down to the first decimal place) held by the Investment Corporation within the site area of Muza Kawasaki. In addition, building area indicates the total building area based on the real estate registry for thecomponents the trust beneficiary rights held by the Investment Corporation.
(*2) Land area indicates the figure equivalent to 49.6% of the right of site (rounded down to the first decimal place) held by the Investment Corporation within the site area of Vita Seiseki‐Sakuragaoka. In addition, building area indicates the total building area based on the real estate registry
for the components the trust beneficiary rights held by the Investment Corporation (floor area of 2 jointly‐owned components, building No. 72‐3 and 72‐7 is the figure multiplied by ownership ratio of 937,995/1,000,000 and 591,485/1,000,000, respectively), and is rounded down to thesecond decimal place.
(*3) Superficies have been established for 524.21 m2 of the land area.

45

APPENDIX

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

RT‐01 Muza Kawasaki

OF‐6 XYMAX Higashi‐Ueno Building
RT‐02 Life Kawasaki Miyuki Store

RT‐03 Vita Seiseki‐Sakuragaoka

OF‐02 XYMAX Iwamotocho Building
OF‐03 XYMAX Shinjuku‐Gyoen Building┃ Fukuoka Area

┃ Sendai Area ┃OT‐01 Renaissance 21 Chihaya

OF‐01 XYMAX Nishi‐Shimbashi Building
OF‐04 XYMAX Kamiyacho Building

HT‐01 Hotel Vista Sendai

OF‐05 XYMAX Higashi‐Azabu Building

OfficeRetailHotel

Others（Residence）

46

APPENDIX

Investment Ratio and Advantage by Asset Type

8.2%
13.3%

54.3%

24.2%

Percentage by year engaged by XYMAX Group

Percentage by geographic area

Percentage by asset type■Office■Retail■Hotel■Others■Main asset

21.5%
43.0%

*The breakdown is basedon the acquisition price

32.1%

Average unit rent 15,519 yen / tsubo

25.0%

Office*As of the end of August 2019**Excl. rents of stores, parking lots, etc.
***Unit rent incl. CAM

47.9%

25.1%

13.5
years
35.6%

8.9%

■10,000 yen ‐ 15,000 yen■15,000 yen ‐ 20,000 yen
43.2%■20,000 yen ‐Average

11.3%

Average■Less than 3 minutes■3〜5 minutes

min.

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

平均3.0
3.0分

76.9%

*The breakdown is based on theacquisition price and average
91.8% shows the simple average

Average engagement period

Time required from the nearest station
23.1%■Less than 5 yrs.
■ 5〜10 yrs.
■ 10〜15 yrs.
■ 15〜20 yrs.
■ Over 20 yrs.
■ Over 5yrs.

8.2%
6.1%

*The breakdown is based on theacquisition price**Chiyoda, Chuo, Minato, Shinjuku andShibuya wards within Tokyo.
***Tokyo (excl. 23 wards of Tokyo), and78.5% prefectures of Kanagawa, Saitama, andChiba.

3.5%

91.8%

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

23.1%

Average

平均17.2
17.2年

years

65.6%

■10 years or more andless than 15 years■15 years or more andless than 20 years■20 years or more
*The breakdown is based on theacquisition price and averageshows the simple average（+2.5％ vs. end of February 2019, 15,135 yen ）9.9%■Station‐front■Other■Neighborhood**

Average engagement period

Average■5 years or more andless than 10 years■10 years or more

11.1年 48.7% *The breakdown is based on the*The breakdown is based on the 51.3% 平均11.1
acquisition price and averageacquisition priceyears
shows the simple average

90.1%

100%

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

Percentage of specialized in “Stay”
Specialized in “Stay”
宿泊特化型

Hotel

RetailComposition of retail properties*The breakdown is based on
the acquisition

100.0%

47

APPENDIX

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

Nishi‐Shimbashi

Iwamotocho

Shinjuku‐Gyoen

Kamiyacho

Higashi‐Azabu

Higashi‐Ueno

Operating revenue fromreal estate leasing

79,821

143,892

167,991

40,71657,251

48,081

Lease business revenue

73,910126,237

154,165

36,70751,09636,717

Other lease businessrevenue

5,911

17,655

13,825

4,008

6,154

11,363

21,18642,34456,036

16,812

20,90420,065

Tax and public dues

6,955

13,417

14,447

4,678

6,636

3,686

Maintenance fees

5,361

10,398

10,840

4,599

6,092

4,135

Utility expenses

4,931

9,117

9,769

2,738

3,655

3,300

Repair expenses

2,261

4,327

2,979

4,469

1,566

808

61

220

211

46

82

60

Other expenses related
to rent business

1,614

4,863

17,787

281

2,872

8,074

ＮＯＩ

58,635

101,548

111,954

23,90336,34628,016

Depreciation

2,569

10,766

9,902

1,258

4,102

2,356

Operating income(loss) from real estateleasing

56,06590,782102,051

22,64432,24325,659Operating expenses fromreal estate leasing（Excluding Depreciation）

Insurance premiums

48

APPENDIX

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

Muza

Kawasaki Miyuki

Seiseki‐
Sakuragaoka

Sendai

Chihaya

Total

Operating revenue fromreal estate leasing

133,249

160,410

undisclosed

undisclosed

163,967

106,279

1,348,404

Lease business revenue

115,052

139,180

undisclosed

undisclosed

163,967

99,4201,239,634

Other lease businessrevenue

18,197

21,229undisclosed

undisclosed

-

6,859

108,769

Operating expenses fromreal estate leasing

40,393

45,637undisclosed

undisclosed

18,79535,223

377,131

Tax and public dues

8,396

10,349undisclosed

undisclosed

11,2488,620

133,084

Maintenance fees

15,645

14,577undisclosed

undisclosed

1,800

7,895

83,147

Utility expenses

9,039

16,144

undisclosed

undisclosed

-

1,556

60,253

Repair expenses

4,705

1,278

undisclosed

undisclosed

374

9,621

42,643

Insurance premiums

274

190

undisclosed

undisclosed

214

294

3,767

Other expenses related
to rent business

2,331

3,095

undisclosed

undisclosed

5,158

7,234

54,234

ＮＯＩ

92,856

114,772

22,684

164,325

145,171

71,055971,272

Depreciation

9,183

16,036

1,502

12,774

32,10819,142

121,704

Operating income (loss)
from real estate leasing

83,67398,735

21,182

151,551

113,062

51,913

849,567（Excluding Depreciation）

49

APPENDIX

Overview of Appraisal Report
End of 2nd FY(February 28, 2019)
Book
value
as
Acquisitionof the end of
price
Capitalization
3rd FY
Appraisal
rate based on(million yen)(million yen) value (million
directcapitalizationyen)method (%)

End of 3rd FY(August 31, 2019)

ChangeCapitalization
Appraisal
rate based onvalue (million
directcapitalizationyen)method (%)

Capitalization
Appraisal
rate based onvalue*1
direct(million yen) capitalization
method*2 (%)

Asset
no.

Asset nameAcquisition
date

OF-01

XYMAX Nishi-Shimbashi Building

February
2018

2,500

2,522

3,080

3.7

3,100

3.7

20

OF-02

XYMAX Iwamotocho Building

February
2018

4,250

4,340

5,540

3.6

5,710

3.5

170

OF-03

XYMAX Shinjuku-Gyoen Building

February
2018

5,020

5,058

6,520

3.6

7,140

3.5

OF-04

XYMAX Kamiyacho Building

February
2018

880

893

1,160

3.8

1,160

OF-05

XYMAX Higashi-Azabu Building

February
2018

1,550

1,580

2,100

3.9

OF-06

XYMAX Higashi-Ueno Building

February
2018

1,150

1,161

1,590

OF-07

XYMAX Hachioji Building

February
2018

2,600

2,609

RT-01

Muza Kawasaki

February
2018

4,100

RT-02

Life Kawasaki Miyuki Store

February
2018

RT-03

Vita Seiseki-Sakuragaoka

HT-01
OT-01

Unrealized
profit or
loss*3 (million
yen)Appraiser

The Tanizawa Sōgō

- Appraisal Co., Ltd.

577

-0.1 InstituteJapan Real Estate

1,369

620

Real Estate-0.1 Japan
Institute

2,081

3.8

-

- Appraisal Co., Ltd.

The Tanizawa Sōgō

266

2,100

3.9

-

- Appraisal Co., Ltd.

Daiwa Real Estate

519

4.0

1,590

4.0

-

- Appraisal Co., Ltd.

Daiwa Real Estate

428

3,570

4.8

3,590

4.8

20

Real Estate- JapanInstitute

980

4,098

5,210

4.1

5,400

4.1

190

- Appraisal Co., Ltd.

1,301

790

797

975

4.2

975

4.2

-

- Appraisal Co., Ltd.

Daiwa Real Estate

177

February
2018

3,100

3,250

3,870

5.0

3,870

5.0

-

- Appraisal Co., Ltd.

The Tanizawa Sōgō

619

Hotel Vista Sendai

February
2018

4,400

4,369

5,550

4.6

5,570

4.6

20

- Appraisal Co., Ltd.

The Tanizawa Sōgō

1,200

Renaissance 21 Chihaya

February
2018

2,700

2,785

3,130

5.0

3,130

5.0

-

- Appraisal Co., Ltd

The Tanizawa Sōgō344

33,04033,46942,295-43,335-

1,040

Total ／Average

The Tanizawa Sōgō-

*1 The difference between the estimated value at the end of the 2nd fiscal period and the estimated value at the end of the 3rd fiscal period is indicated.
*2 The difference between the direct capitalization rate adopted in the real estate appraisal report for each portfolio asset in the calculation of estimated value at the end of the 2nd fiscal period and the direct capitalization rate adopted
in the real estate appraisal upon property acquisition is indicated*3 The difference between the book value at the end of the 2nd fiscal period for portfolio assets and the book value at the end of the 3rd fiscal period for portfolio assets is indicated.

-

9,865

50

APPENDIX

Balance Sheet and Statement of Income
Balance Sheet

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

（単位︓千円）3rd fiscal period(As of Aug. 31, 2019)(thousand yen)

AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Non‐current assets
Property, plant and equipment
Tools, furniture and fixtures
Buildings in trust
Structures in trust
Tools, furniture and fixtures in trust

Land in trust
Investments and other assets
Long‐term prepaid expenses
Deferred tax assets
Lease and guarantee deposits
Other
Total assets
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
Non‐current liabilities
Long‐term loans payable
Tenant leasehold and security
deposits in trust
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Total net assets
Total liabilities and net assets

3,078,538
1,161,697
1,860,121
22,951
33,557
210
33,623,212
33,497,562
79,4008,762,281
43,862
5,747
24,606,271
125,649
41,701
11
22,60061,33636,701,751

3,030,583
1,009,178
1,960,942
28,71731,354390
33,599,215
33,469,409
67,221
8,747,412
43,0885,415
24,606,271
129,806
32,962
13
22,60074,23036,629,798

3,786,023
100,769
1,014,000
2,336,000
95,119836
65,039173,375883
9,526,612
8,330,000

3,783,944
119,7121,014,000
2,336,000
96,157885
25,125
186,235
5,827
9,578,262
8,330,000

1,196,612

1,248,262

13,312,636

13,362,207

23,389,114
22,585,746
803,368
23,389,114
36,701,751

23,267,591
22,585,746
681,845
23,267,591
36,629,798

Statement of Income
Operating revenue
Lease business revenue
Other lease business revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensations
Other operating expenses
Operating income
Non‐operating income
Interest income
Interest on refund
Non‐operating expenses
Interest expenses
Borrowing related expenses
Ordinary income
Income before income taxes
Total income taxes
Income taxes ‐ current
Income taxes ‐ deferred
Net income
Retained earnings brought forward
Unappropriated retained earnings(undisposed loss)

2nd fiscal period（単位︓千円）3rd fiscal period

From: Sept. 1, 2018
To: Feb. 28, 2019
(thousand yen)

From: Mar. 1, 2019
To: Aug. 31, 2019
(thousand yen)

1,312,404
1,204,800
107,604
455,677
333,945
79,815
835
9,902
2,400
28,778856,727767
14
752
53,351
30,776
22,575804,142804,142855
838
16803,28781

1,348,404
1,239,634
108,769
621,883
498,836
77,234
825
9,455
2,400
33,130726,52114
14‐
43,82633,848
9,983
682,708
682,708885
888‐2
681,823
22

803,368

681,845

51

APPENDIX

Change in investment unit price
The investment unit price has been stable since IPO.

┃Change in investment unit price┃ As October 4, 2019
(yen)
140,000

XYR

Closing price 138,100 yen
As of October 4, 2019

Tokyo Stock Exchange REIT Index

135,000

130,000

125,000

120,000

115,000

110,000

105,000

Issue price 105,000 yen

100,000

95,0002018/2/15
2/15
3/15

4/15

5/15

6/15

7/15

8/15

9/15

10/15

11/15

12/15

2019/1/15
1/15

2/15

3/15

4/15

5/15

6/15

7/15

8/15

9/15

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

52

APPENDIX

Status of Unitholders
Major Unitholders

Share of investment units by owner type■Individuals, other ■Financial institutions ■Other domestic companies■Overseas investors ■Securities companies

1st FP

2nd FP

3rd FP

13.0%

15.1%

12.9%

Name

56.2%

10.1%

53.0%

9.4%

51.1%

9.4%

19.8%

19.8%

21.8%

Number of unitholders by owner type
1st FP

2nd FP

3rd FP

Individuals, other

3,822

4,220

3,892

Financial institutions

41

37

40

Other domestic
companies

106

Overseas investors

70

70

76

Securities companies

16

16

21

Total

4,055

4,450

4,117

107

0.9%

2.7%

4.7%

Note: As of August 31, 2019

Number ofinvestment
units(unit)Ratio(%)

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

37,790

16.9%

Japan Trustee Services Bank, Ltd.
(Trust account)

35,60215.9%

XYMAX Corporation

12,500

5.6%

Trust & Custody Services Bank, Ltd.
(Securities investment trust account)

11,043

4.9%

The Nomura Trust and Banking Co., Ltd.
(Trust account)

9,474

4.2%

BNP PARIBAS SECURITIES SERVICES LUXEMBOURG /JASDEC / SECURITIES‐AIFM

6,925

3.1%

BNP PARIBAS SECURITIES SERVICES FRANKFURT /JASDEC /SGSS DEUTSCHLAND KAPITALANLAGEGESELLSCHAFTMBH FOR REIT ASIEN 1

4,255

1.9%

SIX SIS LTD.

3,844

1.7%

SSBTC CLIENT OMNIBUS ACCOUNT

3,172

1.4%

Aozora Bank, Ltd.

3,158

1.4%

127,763

57.2%

88

Total

53

APPENDIX

Overview of Asset Management Company
Overview
Company name

Organization
XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation

General Meetingof Shareholders

Location

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

August 6, 2007

Capital

0.2 billion yen

Board of Directors

Major shareholders
Number of
employees

Compliance Committee

REIT Compliance Committee

Investment Committee

REIT Investment Committee

Internal Audit Team

Compliance OfficeCompliance Officer

XYMAX Corporation (100% stake)
35 (as of October 1, 2019)(1) Financial instruments business as prescribed in the Financial
Instruments and Exchange Act

Lines of business(2) Real estate investment advisory business and discretionary realestate investment business(3) Asset management business for investment corporation
Nobuhito Inatsuki, Representative Director and President

Executives

Yasushi Yamaguchi, Director

Representative

Ryuichi Yoshimura, Director

Director

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

Licenses

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

Private FundManagement Division

Business
Administration
Division

REIT FundManagement Division

Planning Division

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Disclaimer

This document is provided solely for informational purposes with regard to XYMAX REIT Investment Corporation (hereinafter, “XYMAX REIT”)
and is not intended to serve as an inducement or solicitation to trade in any product offered by XYMAX REIT. Decisions on investments are to bemade using your own discretion and responsibility.
Purchase, sale and such of XYMAX REITʼs investment units entail the risk of incurring a loss due to fluctuations in the investment unit price.
Please consult with your securities company regarding the purchase of XYMAX REITʼs investment units or investment corporation bonds.
Information presented in this document should not be interpreted, unless otherwise specified, as constituting disclosure documents or an asset
management report required under Financial Instruments and Exchange Act or the Act on Investment Trusts and Investment Corporations.
XYMAX REIT and XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation (hereinafter, the “Asset Management Company”) to which XYMAXREIT entrusts the management of its assets are taking all possible measures to make the information contained in this document the best
available. However, no assurances can be given regarding the accuracy, validity and completeness of the information, regardless of whether it isinformation prepared by XYMAX REIT or the Asset Management Company, or information received from a third party.
Among the information provided in this document, statements other than those pertaining to facts in the past or present are forward-looking
statements presented by XYMAX REIT or the Asset Management Company according to assumptions or judgement based on information
available as of the date of this document (the date if specified otherwise in the document). Forward-looking statements are based onassumptions such as the investment policy of XYMAX REIT, applicable laws and regulations, market environment, interest rate environment,
business practice and other factors as of the preparation date of this document, and do not reflect or consider changes in situations after the
preparation date. Forward-looking statements include, explicit or implied, uncertainties of existing risks, unknown risks and other factors, andmay materially differ from actual performance, business results, financial status and such of XYMAX REIT. Although this document includes
statements concerning future performances, expectations and other forecasts, such statements do not guarantee the future performances,
expectations and other forecasts.
The content of this document is subject to change or repeal without prior notice. XYMAX REIT and the Asset Management Company are under
no obligation to update or publicly disclose the content of this document (including forward-looking statements).
Duplication or reproduction of any content presented in this document without the prior consent of XYMAX REIT or the Asset Management
Company is strictly prohibited.

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