Presentation Material
for the 2nd Fiscal Period Ended February 2019

Securities Code: 3488

Contents

I. Overview of XYMAX REIT

3

II. Overview of the financial results for the 2nd
fiscal period and earnings forecast for the 3rd
and 4th fiscal period

7III. Management highlights for the 2nd fiscal
Period13

IV. Advantage and Growth Strategy of XYMAX
REIT

21

V. ESG

33

VI. Market Analysis

37

Appendix45<Note>
 Unless otherwise specified, amounts are rounded off to the nearest unit and ratio is rounded
down to the first decimal place in this material.
 The following abbreviations of property names are used in this material.
XYMAX Nishi-Shimbashi Building: Nishi-Shimbashi

XYMAX Iwamotocho Building: Iwamotocho

XYMAX Shinjuku-Gyoen Building: Shinjuku-Gyoen

XYMAX Kamiyacho Building: Kamiyacho

XYMAX Higashi-Azabu Building: Higashi-Azabu

XYMAX Higashi-Ueno Building: Higashi-Ueno

XYMAX Hachioji Building: Hachioji

Muza Kawasaki: Kawasaki

Life Kawasaki Miyuki Store: Kawasaki Miyuki

Vita Seiseki-Sakuragaoka: Seiseki-Sakuragaoka

Hotel Vista Sendai: Sendai

Renaissance 21 Chihaya: Chihaya Explanation of terms
Terms

Definition

Estimated value at theend of period

Estimated value at the end of period indicates the value appraised by theappraisers 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 the current fiscal period as the researchdateUnrealized 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
and outstanding

NAV per unit

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

Acquisition price

Acquisition price is the sales price of each trust beneficiary rightindicated in the trust beneficiary rights sales agreement, and does notinclude consumption cost, such as local consumption tax and transactionfee, etc.

2Overview of XYMAX REIT

Overview of XYMAX REIT

Corporate Profile of XYMAX REIT

Basic Principle
XYMAX REIT will realize maximization of unitholder value using the superior real estate Assessment
Capability which has been cultivated by the No. 1‐ranked* Real Estate Management Capability of XYMAXGroup, the sponsor.

Overview
Trade nameXYMAX REIT Investment Corporation

End of fiscal period (scheduled month of
distribution payment)

February (May)/August (November)

Securities code

3488

Date of listing

February 15, 2018

Asset management company
SponsorXYMAX REAL ESTATE INVESTMENT ADVISORS Corporation
XYMAX Corporation(*) According to each November issue of the monthly magazine “Property Management” from 2010 to 2015, the XYMAX Group was ranked No. 1 in the ranking of top
companies in terms of floor area under management for 6 consecutive years since 2010.

4

Overview of XYMAX REIT

Change in investment unit price/unrealized gain
Stable change in investment unit price exceeding issue price and relatively high unrealized gain.
March 29, 2019
Closing price 122,600 yen┃Change in investment unit price of XYMAX REIT┃(yen)
120,000

As of the end of the 2nd fiscal period (end of February 2019)

118,000

116,000

114,000

112,000

110,000

108,000

106,000

104,000
2/15

Issue price 105,000 yen
3/2

3/17

4/1

4/16

5/1

5/16

5/31

6/15

6/30

7/15

7/30

8/14

8/29

9/13

9/28

10/13

10/28

11/12

11/27

12/12

12/27

1/11

1/26

2/10

2/25

3/12

3/27

XYR

Unrealized gain of J‐REITs upon listing*(*) Unrealized gain of other J‐REITs is calculated based on acquisition price and appraisal value indicated in disclosure materials at the time of listing of J‐REITs which were newly listed
between March 23, 2012 and March 31, 2019.
(%)
25

24.9

20
15
10
5

14.6 14.0

13.3
9.3

8.3

7.5

5.9

5.8

5.0

4.8

4.8

4.6

4.1

3.9

3.2

3.1

3.0

2.9

2.9

2.8

2.5

2.4

2.3

2.2

2.0

1.9

1.8

1.6

1.4

1.4

1.3

0.3

0.0

0
XYMAX Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed Listed
REIT in 2013 in 2014 in 2016 in 2013 in 2019 in 2017 in 2016 in 2018 in 2018 in 2015 in 2013 in 2014 in 2017 in 2018 in 2012 in 2016 in 2014 in 2012 in 2014 in 2015 in 2019 in 2016 in 2012 in 2016 in 2013 in 2015 in 2014 in 2016 in 2015 in 2014 in 2015 in 2013 in 20165

Overview of XYMAX REIT

Characteristics and “3 FORCES” of the Investment Corporation to maximize
unitholder value
XYMAX REIT fully utilize all strength of XYMAX Group, which has been ranked as the No.1 domestic service
provider in terms of “Property Management” that realize maximization of profitability of properties.
■ Number of Real estate managed : 845 buildings, total floor area: approximately 3.7 million tsubos(as of December 31, 2018)■ Human resource: 1,922 people engaged in real estate management, 87 in leasing and 85 in CRE related business(as of March 1, 2019)■ Relationship with real estate owners : approximately 270 companies■ Track records in property sales and brokerage: 269 buildings, approximately 478 billion yen (accumulated total from
April 1, 2010 to March 31, 2019)

Maximally utilize the business platform of XYMAX Group“3 FORCES” to maximize unitholder value
Assessment
Capability

Management
Capability

Sourcing
Capability

Stable operational and financial base established through the IPO

6

Overview of Financial Results for the 2nd Fiscal Period andEarnings Forecasts for the 3rd and 4th Fiscal Periods

Overview of Financial Results for the 2nd Fiscal Period and Earnings Forecasts for the 3rd and 4th Fiscal Periods

Financial highlights for the 2nd fiscal period ended February 2019

Result and forecast of distribution per unit
1st FP

2nd FP

3rd FP

4th FP

Disclosed upon listing(February 15, 2018)

2,309 yen

3,279 yen

2,917 yen̶Disclosed at
the end of 1st FP

2,610 yen

3,473 yen

2,937 yen(+301 yen from forecast upon listing)(+194 yen from forecast upon listing)(+20 yen from forecast upon listing)

3,596 yen

2,947 yen(+317 yen from forecast upon listing)(+123 yen from forecast at the end of 1st FP)(+30 yen from forecast upon listing)(+10 yen from forecast at the end of 1st FP)

Disclosed at
the end of 2nd FP̶Portfolio̶2,901 yen

Financial status

Asset size

12 properties
33,040 million yen

Interest‐bearing liabilities
at the end of period

Occupancy rate
at the end of period

98.9%

LTV based on total assets

Estimated value
at the end of period

42,295 million yen

Net asset per unit

101,100 yen

NAV per unit

140,479 yen

Unrealized gain

8,797 million yen(Unrealized gain ratio 26.3%)

11,680 million yen
31.8%(Appraisal LTV 25.7%)

8

〜Memo〜9Overview of Financial Results for the 2nd Fiscal Period and Earnings Forecasts for the 3rd and 4th Fiscal Periods

Overview of financial results for the 2nd fiscal period ended February 2019

Unit: million yen

Forecast for the 2nd
fiscal period(A)
Announced on
October 17, 2018

Actual results for the
2nd fiscal period(B)

Main factors of difference

Difference(B)‐(A)

2nd FP actual vs. 2nd FP forecast

Operating revenue

1,270

1,312

41

Operating expenses

443

455

12

Difference in income and expenditurein lease business (+29)
 Improvement in income and expenditure inlease business (+22)
 Receipt of cancellation penalty (+4)

Difference in non‐operating
expenses (‐2)
Operating income

827

856

29

Ordinary income

776

804

27

Net income

775

803

27

Distribution
per unit
(yen)

3,473

3,596

123

Days

181 days

181 days－

10Overview of Financial Results for the 2nd Fiscal Period and Earnings Forecasts for the 3rd and 4th Fiscal Periods

Forecast for the 3rd fiscal period ending August 2019 and 4th fiscal period
ending February 2020

Unit: million yen

Actual results forthe 2nd fiscal
period ended
February 2019
(A)

Forecasts for the
3rd fiscal period
ending August
2019
(B)

Forecasts for the
4th fiscal period
ending February
2020

Difference(B)‐(A)

Operating revenue

1,312

1,296

‐15

1,291

Operatingexpenses

455

591

136

591

Main factors of difference
3rd FP forecast vs. 2nd FP results
Difference in income and expenditurein lease business (‐151)
 Commencement of property tax and city
planning tax payment (‐134)

Difference in non‐operating
expense (+7)
Operating income

856

704

‐151

699

4th FP forecast vs. 3rd FP forecast Decrease in rent revenue, etc. (‐5)

Ordinary income

804

659

‐144

649

Net income

803

658

‐144

648

Distribution
per unit
(yen)

3,596

2,947

‐649

2,901

Days

181 days

184 days+3 days

182 days

11

Overview of Financial Results for the 2nd Fiscal Period and Earnings Forecasts for the 3rd and 4th Fiscal Periods

Distribution forecast for the 3rd and 4th fiscal periods

Distribution forthe 2nd fiscal period

Distribution
forecast forthe 3rd fiscal period

3,596 yen per unit

2,901 yen per unit

Revised +10 yen from the forecast as of October 17, 2018

Achieved +123 yen increase from the forecast as of October 17, 2018

Forecast forthe 2nd fiscal period

Distribution
forecast for
the 4th fiscal period

2,947 yen per unit

Actual results forthe 2nd fiscal period (ended February 2019)

Forecast forthe 3rd fiscal period (ending August 2019)

Forecast for
the 4th fiscal period (ending February 2020)

（円）

4,000

134

12

1

Difference innon‐operating
expenses

Others3,500
Improvement inincome andexpenditure inlease business
Receipt ofcancellation
penalty

3,000

2,500

678

30

Commenceme
nt of property
tax and city
planning tax
payment, etc.

3,473

3,596

2nd fiscal period(ended February 2019)
Forecast

2nd fiscal period(ended February 2019)
Actual results

Difference innon‐operating
expense41

1

Others2,947

Decrease in rent
revenue
Increase in leasecost, etc.

15
Decrease in costof general
meeting ofunitholders
Decrease inadministrative
expenses20

Increase innon‐operating
expense

2,901

2,000
3rd fiscal period(ending August 2019)
Forecast

4th fiscal period(ended February 2020)
Forecast

12

Management Highlights for the 2nd Fiscal Period

Management Highlights for the 2nd Fiscal Period

Achieved internal growth through Assessment Capability and Management Capability

XYMAX REIT aims to improve the profitability of portfolio by stretching growth of revenue and stability ofrevenue through assessing characteristics and strengths of each property.
Growth of
RevenueClassification of
profitability

OF‐01
OF‐02
OF‐03
OF‐04
OF‐05
OF‐06

Nishi‐
Shimbashi
Iwamotocho
Shinjuku‐
Gyoen
Kamiyacho
Higashi‐Azabu
Higashi‐Ueno

Adjusted
NOI* (%)

38%

Management strategy
As a profit driver for high growth, makecontinuous effort to achieve maximum
rent upon tenant replacement and
upward rent revision by assessing
current favorable office leasing market
and competitors’ trends

Achievements up to the 2nd FP
・Occupancy rate as of the end of the 2nd FP: 100%
・Rent increase upon tenant replacement:
3 out of 4 (113 tsubo out of 212 tsubo)
Monthly rent increase: 380 thousand yen.
Increase rate 20% (vs. before replacement)
・Upward rent revision:
10 out of 18 (755 tsubo out of 1,521 tsubo)
Monthly rent increase: approximately 100 thousand yen,increase rate 10% (vs.before renewal)(excluding residential units within the office buildings)

Stability of
Revenue

Aim to maintain and improve revenue by
adequately judging whether to renew thecontract or invite new tenants throughanalyzing characteristics of tenants and spaces

・Renewed contract at higher rent with a tenant
experiencing strong sales
・Planned construction work after the lease term expires byeyeing future expiration of the contract

RT‐01

Kawasaki

12%

OT‐01

Chihaya7%

OF‐07

Hachioji

9%

HT‐01

Sendai

14%

Maintain stable revenue through operationby proven operator

・Maintained stable occupancy rate and ADR

RT‐02
RT‐03

Kawasaki
MiyukiSeiseki‐
Sakuragaoka

20%

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

・Maintained full occupancy and high yield

Aim to realize opportunities to improve revenue
discovered through expertise and know‐how ofmanagement while maintaining stable revenue asa principle

・Maintained and improved average unit rent(+1.1% vs. end of February 2018)

・Maintained stable occupancy rate

・Maintained stable occupancy rate and average unit rent(*) As fixed property tax and city planning tax are not expensed in the 2nd fiscal period, the ratio calculated by deducting fixed property tax and city planning tax (amounts for 6 months) for each of the owned properties from the actual NOI in the 2nd fiscal period for each of the owned properties is used instead.

14

Management Highlights for the 2nd Fiscal Period

Management results: Operational status of portfolio
The average occupancy rate of the portfolio was 98.9% as of the end of February 2019, maintaining a high levelfrom the 1st fiscal period.
┃Operational status by asset type ┃
(%)
100.0
99.0
98.0
97.0

OfficeRetailHotel

Entire portfolio

96.0
95.0

End ofFebruary2018

End ofMarch
2018

End ofApril
2018

End ofMay
2018

End ofJune
2018

End ofJuly
2018

End ofAugust2018

End of
September2018

End ofOctober
2018

End ofNovember
2018

End ofDecember
2018

End ofJanuary
2019

End ofFebruary
2019┃Occupancy rate as of the end of February 2019┃

Office

98.8%

Hotel

100.0%

Retail100.0%

Entire portfolio

98.9 %
15

Management Highlights for the 2nd Fiscal Period

Management results: Rent increase upon conclusion of new contracts and contract
renewalAchieved an increase in revenue by more than 1.7 million yen per month due to rent increase by new contracts andcontract renewals at 7 office buildings and Muza Kawasaki.
┃Rent increase by contract renewals┃┃Rent increase by new contracts┃
1st FP

8473.41tsubos

Total
Rent
Increase

5297.76tsubos

1st FP

Increase in monthly rent
(comparison with previous contract)425,083yen

15

Average

10.7％

3

###
##

94.83tsubos

264.98tsubos

2nd FP

Increase in monthly rent
(comparison with previous contract)

191,300yen

17

11

17.3％

568.24tsubos

7292,824yen

9.6％

1203.15tsubos

Increase in monthly rent
(comparison with previous contract)
Total

Rent
Increase

###
##

9

678.96tsubos

Average

837,122yen

8.6％*Decrease 0362.74tsubos

計

Increase in monthly rent
(comparison with previous contract)
Total

Rent
Increase

215.25tsubos

Average*Decrease 0

Total

2

Average*Decrease 0

Total
Rent
Increase

Increase in monthly rent
(comparison with previous contract)
Total

Rent
Increase*Decrease 0

2nd FP

1069.31tsubos

616,383yen

32

2272.46tsubos

Average

12.1％

###
##

*Decrease 0

Rent
Increase

11894.21tsubos

Increase in monthly rent
(comparison with previous contract)
Total

Average

1,129,946yen

8.8％*Decrease 0

Amount of increase in monthly rent due to new contracts and rent renewals by the 2nd
fiscal period (comparison with previous contract)

1,746,329yen┃Forecast for 3rd fiscal period**┃
Number of new contracts 3, number of leases agreed to increase rent 2: Increase in monthly rent approx. 316,000 yen, +approx.17% (comparison with previous contract)
Number of renewals 23,
number of leases agreed to increase rent 9: Increase in monthly rent approx. 1,640,000 yen, +approx.10% (comparison with previous contract)(*) Re‐conclusion of fixed‐term lease contracts with tenants is included in contract renewal(* *) Those who concluded contracts and reached an agreement on the conditions as of April 15, 2019 are included in the forecast(compiled based on the conclusion date of contract, excluding residences in office buildings) (Increase rates of forecast for 3rd FP are rounded to the whole number)

16

Management Highlights for the 2nd Fiscal Period

Management results: Forecasted contract renewal with tenants

XYMAX REIT is proceeding with upward rent revision through contract renewal targeting tenants judged that there isroom for rent increase at office buildings and Muza Kawasaki, the main assets to grow the revenue of the portfolio.

┃Floor area subject to contract renewal by asset type┃* Re‐conclusion of fixed‐term lease contracts is included in contract renewal* Forecast for 3rd FP includes those who concluded contracts and reached an agreement on the conditions asof April 15, 2019
* Monthly rent increase (%) is comparison with previous contract■Vacancy as of the beginning of period■Renewal in the current FP■Scheduled renewal in or after the next FP

Office buildings in central Tokyo (6 buildings)
Actual results for the 1st FP
Renewal: 547.64 tsubos 6
Increase: 76.23 tsubos 1
Monthly rent increase+25%

Forecast for 3rd FP
Renewal: 1538.86 tsubos
Increase: 986.48 tsubos
Monthly rent increase

17
9approx.+10%

Actual results for the 2nd FP
Renewal: 973.36 tsubos 12
Increase: 678.96 tsubos 9
Monthly rent increase+8.6%(tsubo)Office buildings in central Tokyo (6 buildings)

6,000.00

4,000.00

973.36

Actual results for the 2nd FP
Actual results for the 1st FP
Renewal: 139.02 tsubos 1 Renewal: 116.32 tsubos 4
Increase: 139.02 tsubos 1 (renewed only at the same rent)Monthly rent increase +5.3%

Forecast for 3rd FP
Renewal: 42.67 tsubos

2

4,231.50

3,788.72(renewed only at the same rent)

4,243.00
3,295.63

3,240.28

1st FP

2nd FP(tsubo)3rd FP

4th FP

5th FP

Muza Kawasaki

1,500.00(tsubo)2,000.00

168.81

29.85
113.47382.65

54.69

29.85

29.85

1,000.00

139.02116.3242.67

500.00981.401,004.10

1,077.75

1st FP

2nd FP

3rd FP

227.69120.00326.11293.53809.431,000.00(renewed only at the same rent)

4

1,314.05

Office buildings in Tokyo economy (Hachioji)(renewed only at the same rent)

Forecast for 3rd FP
Renewal: 293.53 tsubos

1,538.86

0.00(renewed only at the same rent)*Decrease 0

Actual results for the 2nd FP
Renewal: 113.47 tsubos 1

169.46459.91*Decrease 0

Muza Kawasaki

Actual results for the 1st FP
Renewal: 382.65 tsubos 8

76.23

17.06

547.642,000.00

Office buildings in Tokyo economy(Hachioji)■Vacancy as of the beginning of period■Renewal in the then current FP■Scheduled renewal in the next FP and there after

1,129.25

1,537.39 1,332.49

1st FP

2nd FP

1,324.75

892.731,000.42

841.430.00
3rd FP

4th FP

5th FP

0.00
4th FP

5th FP(compiled based on the conclusion date of contract, excluding residences in office buildings) (Increase rates of forecast for 3rd FP are rounded to the whole number)

17

Management Highlights for the 2nd Fiscal Period

Management results: Hotel operation
Continued to realize stable occupancy and revenue from the previous year by certainly absorbing the demand fromovernight guests in Japan and inbound tourists.
Occupancy rate (left axis) and Average Daily Rate (ADR) (right axis)

Occupancy（％）
rate (%)
稼働率

(%)

(yen)

ADR (yen)
平均室単価（円）ADR

120.0%

12,000100.0%
100.0

10,000

80.0%
80.0

8,000

60.0%
60.0

6,000

40.0%
40.0

4,000

20.0%
20.0

2,000

0.0%
0.0

2017年3月Mar.
20172017年4月

Apr.
20172017年5月May20172017年6月

June
20172017年7月

July
20172017年8月

Aug.
20172017年9月

Sep.
20172017年10月 2017年11月 2017年12月

Oct.
2017

Nov.
2017

Dec.
2017

2018年1月

Jan.
2018

Number of reserved rooms by reservation route

Feb.
2018

2018年3月Mar.
20182018年4月

Apr.
20182018年5月May20182018年6月

June
2018(people)6,000,000

100.0

5,000,000

80.0

4,000,000

60.0

3,000,000

40.0

2,000,000

20.0

1,000,000
0Mar.
2017年3⽉
2017Aug.
2017年8⽉
2017Jan.
2018年1⽉
2018■Corporation (contracting company)■Overseas OTA■Own corporate website

June
Nov.
Feb.
2018年6⽉
2018年11⽉
2019年2⽉
2018
2018
2019
■Travel agency (REAL)■Domestic OTA■Direct reservation2018年7月

July
20182018年8月

Aug.
20182018年9月

Sep.
2018

Number of overnight guests

(%)

0.0

2018年2月

2014年
2014

2015年
2015

2016年
2016

Oct.
2018

Nov.
2018

Dec.
2018

2019年1月

Jan.
2019

Feb.
2019

2019年2月

0Number of users at Sendai Airport(people)200,000(people)4,000,000(people)400,000

150,000

3,000,000

300,000

100,000

2,000,000

200,000

50,0001,000,000

100,000

0
2013年
2013

2018年10月 2018年11月 2018年12月

2017年
2017

Number of overnight guests in old Sendai district (left axis)
旧仙台地区宿泊者数…

仙台市外国⼈宿泊者数…
Number of foreign overnight guests in Sendai City (right axis)

0

FY2017FY2013 2014年度
FY2014 2015年度
FY2015 2016年度
FY2016 2017年度
2013年度0

Number of users of domestic flights at Sendai Airport (left axis)
仙台空港国内線利⽤者数（左軸）
Number of users of international flights at Sendai Airport (right axis)
仙台空港国際線利⽤者数（右軸）18Management Highlights for the 2nd Fiscal Period

Other internal growth achievement (parking spaces sublease)
Revenue from parking lots of five office buildings in central Tokyo increased by 77% through switching to new sublease
contracts and revision of existing contracts.
┃Reviewed sublease contracts for parking lots┃
Selected most appropriate party for each property through bidding by multiple companies engaged in parking lot subleasing

Number ofpreviousparking lots

Previous
monthly parking fee

Number ofrevisedparking lots

Revisedmonthly parking fee

Nishi-Shimbashi

1

33,000 yen

285,000 yen

Iwamotocho

12336,000 yen

17

722,500 yen

Shinjuku-Gyoen

4

0 yen

4

120,000 yen

Higashi-Ueno

1

38,000 yen

140,500 yen

Higashi-Azabu

15345,000 yen

15

360,000 yen

Total

33

752,000 yen

39

1,328,000 yen

Increase in monthly revenue
576,000 yen
77%

XYMAX REIT will continue to consider and review sublease contracts on parking spaces depending on the operational status and change in needs along withmovement of tenants.

19

〜Memo〜20Advantage and Growth Strategy of
XYMAX REIT

Advantage and Growth Strategy of XYMAX REIT

“3 FORCES” to maximize unitholder value
XYMAX REIT aims to maximize unitholder value, utilizing “Assessment Capability,” “Management Capability,”and “Sourcing Capability.”
Stable operational base and strong financial base
 Low LTV level (31.8% at the end of 2nd fiscal period) realized through the acquisition of properties at relatively lower prices
 Stable lender formation based on correspondent financial institutions of the sponsor
 Flexible property acquisition with bank loans is also possible by utilizing available borrowing capacity

Assessment Capability

Management utilizing
the “3 FORCES”
Management Capability

Sourcing Capability

Internal Growth Strategy

External Growth Strategy

Maximization of Unitholder Value
22

Advantage and Growth Strategy of XYMAX REIT

Comprehensive strengths of the XYMAX Group

OfficeRetail/Store

Real estate consulting andmanagement services

Real estate consulting

Asset management
Asset strategy, etc.

Hotel

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

Asset Management

LogisticsXYMAX REAL ESTATE INVESTMENT ADVISORS/MAX‐REALTY

23

Valormax
Y.Estate

Real estate management
Property management
Building maintenance

SG Asset Max

East JapanXYMAX ALPHA

KansaiXYMAX KANSAI

KyushuXYMAX KYUSHU

Integrated management of
store facilities

Abilitas Hospitality

Other specialized
services

Facility management

Leasing brokerage

Market survey/analysis
Research/planning on management and repair

Hotel business

Real estate appraisal
Real estate assessment/survey

XYMAX INFONISTAXYMAX REAL ESTATE INSTITUTEKARAKSA HOTELSXYMAX ASSET CONSULTING

Cleaning

Security

Satellite office

Risk management

XYMAX SALAMAX SECURITY SERVICEXYMAX ZXY Department

Safety Organization for Urban Renewal

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

23Advantage and Growth Strategy of XYMAX REIT

Assessment Capability on real estate targeted for investment
XYMAX REIT believes that quantity and quality of tenant’s demand are key factors to assess the profitability of real estate.
XYMAX REIT aims for growth of its portfolio by comprehensively judging 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 specialized in“lodging” located at transport hubs

✔Properties located in the 8 central wards ofTokyo, Central Nagoya, Central Osaka andCentral Fukuoka✔Properties of which revenue offacilities is available for analysis✔Hotels specialized in “stay” whose revenue
trends can be analyzed based on theoperational know‐how of the sponsor✔Properties with a unit rent of✔Properties of which rent burden

10,000 yen to 25,000 yen✔Properties located within an

approximate 5‐minute walk fromthe nearest stationon tenants is available for analysis✔Properties of which sales priceis lower than the market price✔Properties located in areas
offering excellent access totransport hubs

✔Properties located in areas where thenumber of foreign visitors is expected
to increase

80% or more of the portfolio consists of office, retail, and hotel properties
24

Advantage and Growth Strategy of XYMAX REIT

Investment ratio and advantage by asset type
Ratio by geographical area

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

8.2%
13.3%

54.3%

21.5%
43.0%

*The breakdown is basedon the acquisition price

24.2%

Ratio by year engaged by XYMAX Group■5 wards of Tokyo**■23 wards of Tokyo excl. 5 wards■Tokyo economy***■Designated cities■Tokyo metropolitan area

6.1%

3.5%

91.8%

13.3%

25.0%

Average

13*The breakdown is based on the acquisition price**Chiyoda, Chuo, Minato, Shinjuku and Shibuya wards
within Tokyo.
***Tokyo (excl. 23 wards of Tokyo), and prefecturesof Kanagawa, Saitama, and Chiba.

32.1%■Less than 4 yrs.
■ 4〜5 yrs.
■ 5〜10 yrs.
■ 10〜15 yrs.
■ 15〜20 yrs.
■ Over 20 yrs.
■ Over 4yrs.

8.2%

11.8%

years

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

35.6%

78.5%

OfficeAverage unit rent 15,135 yen

Time required from the nearest station

Average engagement period
11.3%

8.9%
23.1%

■10,000 yen ‐ 15,000 yen
43.0% ■15,000 yen ‐ 20,000 yen■20,000 yen ‐Average

3.0*As of the end of February 2019**Excl. rents of stores, parking lots, etc.

48.1%

■Less than 3 minutes■3〜5 minutes

min.
76.9%

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

23.1%

Average

16.7
years

65.6%

*The breakdown is based on theacquisition price and averageshows the simple average（+1.3％ vs. end of August, 14,937 yen ）RetailComposition of retail properties■10 years or more andless than 15 years■15 years or more andless than 20 years■20 years or more

Hotel

Average engagement period

Ratio of “Staying type”

9.9%■Station‐front■Other■Neighborhood***The breakdown is based on theacquisition price

90.1%
100%

Average
51.3%

10.6
years

48.7%

■5 years or more andless than 10 years■10 years or more
*The breakdown is based on the acquisition
price and average shows the simple
average(**) Retail facilities for which the majority of customer can easily come on foot or by bicycle in a short time.

Staying type
宿泊特化型
*The breakdown is based on
the acquisition price andaverage shows the simple
average100.0%

25

Advantage and Growth Strategy of XYMAX REIT

Achieved internal growth through Assessment Capability and Management Capability

XYMAX REIT aims to improve the profitability of portfolio by stretching growth of revenue and stability ofrevenue through assessing characteristics and strengths of each property.
Growth of
RevenueClassification of
profitability

OF‐01
OF‐02
OF‐03
OF‐04
OF‐05
OF‐06

Stability of
Revenue

Nishi‐
Shimbashi
Iwamotocho
Shinjuku‐
Gyoen
Kamiyacho
Higashi‐Azabu
Higashi‐Ueno

Adjusted
NOI* (%)

38%

Management strategy
As a profit driver for high growth, makecontinuous effort to achieve maximum
rent upon tenant replacement and
upward rent revision by assessing
current favorable office leasing market
and competitors’ trends

Achievements up to the 2nd FP
・Occupancy rate as of the end of the 2nd FP: 100%
・Rent increase upon tenant replacement:
3 out of 4 (113 tsubo out of 212 tsubo)
Monthly rent increase: 380 thousand yen.
Increase rate 20% (vs. before replacement)
・Upward rent revision:
10 out of 18 (755 tsubo out of 1,521 tsubo)
Monthly rent increase: approximately 100 thousand yen,increase rate 10% (vs.before renewal)(excluding residential units within the office buildings)

Aim to maintain and improve revenue by
adequately judging whether to renew thecontract or invite new tenants throughanalyzing characteristics of tenants and spaces

・Renewed contract at higher rent with a tenant
experiencing strong sales
・Planned construction work after the lease term expires byeyeing future expiration of the contract

RT‐01

Kawasaki

12%

OT‐01

Chihaya7%

OF‐07

Hachioji

9%

HT‐01

Sendai

14%

Maintain stable revenue through operationby proven operator

・Maintained stable occupancy rate and ADR

RT‐02
RT‐03

Kawasaki
MiyukiSeiseki‐
Sakuragaoka

20%

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

・Maintained full occupancy and high yield

Aim to realize opportunities to improve revenue
discovered through expertise and know‐how ofmanagement while maintaining stable revenue asa principle

・Maintained and improved average unit rent(+1.1% vs. end of February 2018)

・Maintained stable occupancy rate

・Maintained stable occupancy rate and average unit rent(*) As fixed property tax and city planning tax are not expensed in the 2nd fiscal period, the ratio calculated by deducting fixed property tax and city planning tax (amounts for 6 months) for each of the owned properties from the actual NOI in the 2nd fiscal period for each of the owned properties is used instead.

26

Advantage and Growth Strategy of XYMAX REITManagement Capability to realize internal growth (1)The XYMAX Group has been ranked as the No. 1 domestic service provider in the PM business interms of contracting record of real estate management projects for six years in a row since 2010*.
┃Real estate management record (As of the end of December 2018) ┃Actual number ofcontracts

845 buildings

Gross floor area
Approx. 3.7 million2 tsubo

Approx.

12,400 stores

Hokkaido ∙Tohoku Region
1,000(Approx. 12 million m )┃Facility management record (As of the end of December 2018) ┃Actual number ofcontracts

Hokkaido Region
29

Number of customers

158 corporations

Central ∙ Koushin'etsu
RegionTohoku Region
8

1,800

Central ∙Kanto Region
Koushin'etsu Region
Chugoku ∙
5,000
57
Kanto
RegionShikoku Region
Chugoku ∙ Kansai Region
492
600
179
Shikoku Region
14
Kansai Region
Okinawa Region
Kyushu ∙Kyushu Region
102,600
Okinawa Region
56
1,400

(*) According to each November issue of the monthly magazine “Property Management” from 2010 to 2015, the XYMAX Group was ranked No. 1 in the ranking of top companies in terms offloor area under management for 6 consecutive years since 2010.

27

Advantage and Growth Strategy of XYMAX REITManagement Capability to realize internal growth (2)XYMAX REIT aims to maximize real estate value by utilizing the know‐how of respective specialized
subsidiaries of the XYMAX Group that boasts high expertise and wealth of experience, through an agile
system of cooperation.
Utilization of real estate management expertise and know‐how as well as network of the XYMAX Group┃Establishing strategies for inviting tenants┃
Market researchSurvey on surrounding areas
Survey on competing properties
Detailed survey
Grasping market rentInterviewing leasing agencies

Analyze the property
Location
Facility
SizeGrade, etc.
Exterior view

Grasp capability of theproperty as a product in theactual market

Forecast future of theproperty
Maximize asset value

Analyze individual property
and determine leasing policy

Analyze various data frommultiple aspects┃Leasing brokerage service menu by XYMAX Group┃
Direct Approach

Network with Leasing Agencies

XYMAX INFONISTA Corporation is a leasing brokerage business arm of the Groupdeveloping its business of leasing brokerage for office buildings in the Tokyo
Metropolitan Area (Tokyo and surrounding prefectures of Chiba, Saitama, andKanagawa). As of the end of March 2019, its website “INFONISTA” has posted
approx. 24,000 updates on the latest vacant room information, providing richservices to both building owners and lessees.

 Relationship with approx. 2,000 leasing agencies and their 5,000 brokers.
The Group is providing strategically precious and most updated information to broker incharge. The Group is providing the vacant space information of over 500 buildings (asof the end of March, 2019) on a nationwide basis and in a way that may most facilitate
the daily practice of the leasing brokerage business.
 Systematic information transmission
Delivering e‐mail on vacant space information to leasing agencies on a weekly basis(flash news on vacant rooms, list of vacant rooms by area and guidance to preview) Holding periodic information exchange meeting

Achieve a high contract rate28

Advantage and Growth Strategy of XYMAX REITManagement Capability to realize internal growth (3)XYMAX REIT will realize cost optimization and a reliable construction/repair work execution withconsistent construction management of the Group based on accumulated data
Construction Management Based on Data
Technical Section of Member Companiesof the Group
Database and construction work history
management system
First‐class Architect,
Licensed Electrician,Facility Manager,
Certified Building Administrator, etc.

Track record of construction/repair works: 137,455

What Is Construction Management?
Compiling Construction History into DatabasePlanning of Repair Schedule Utilizing the SystemPlanning and Management of Large‐scale Renovation/Renewal
ProjectArrangement of Competitive BiddingSupport Difficult Repair Works on an Ad‐Hoc Basis(during the period between April 1, 2000 and February 28, 2019)(Source) XYMAX Corporation

Intending to improve efficiency related to repair work by utilizing the engineersand database of XYMAX Group

Controlling repair work through construction management


Reliable direction of construction work based on track record of construction
work accumulated over several years

Appropriate adjustment for construction companies and general contractors
by utilizing networkSetting an appropriate construction period with the review of repair projects
in line with the current status



Utilization of know‐how in large‐scale renovation and renewal construction
work by XYMAX REIT



Optimization of costs in comparison with track record of similar construction
work and through assessment of engineersAppropriate repair work on an ad‐hoc basis utilizing know‐how and engineers

29Advantage and Growth Strategy of XYMAX REIT

Sourcing Capability to realize external growth (1)XYMAX REIT traps various needs for real estate disposal it can gain from the ample customer base of the
XYMAX Group.
┃Direct relationship with real estate owners┃

Acquisition

The Investment Corporation┃Diversity among real estate owners ┃Ratio of clients of real estate management business (As of the end of
December 2018)
Number of properties
under management

The Asset Management Company

845
J‐REIT
Others37%

XYMAX Group
Trap disposal needs

21%

Owner relationship ∙ customer base
Building owners

General businesscompany

Individual, etc.
Other

42%
J‐REIT
J‐REITs including XYMAX REIT

Inheritance

Financing
ROE management

Financing

Individual, etc.
Individuals, asset management companies, general business companies, etc.
OthersPrivate REITs, private funds, real estate companies, etc. .
(Source) Created by the Asset Management Company based on the material
provided by XYMAX Corporation30

Advantage and Growth Strategy of XYMAX REIT

Sourcing Capability to realize external growth (2)XYMAX REIT grasps the trend of real estate owners at an early stage through daily communication, so thatcreate opportunities for external growth.
 More than 70% of real estate owners are concerned about large‐scale renovations of owned properties, tenant management, andsecurement of funds upon reconstruction→ Identifies needs of property disposal arising due to the problem or concern about necessary funds

Realization of
external growth 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

Survey on building owner's condition by XYMAX Real Estate InstituteAnxiety in future building business

Anxiety in future building business(by the number of owned buildings)

1‐21〜2棟
buildings
3 buildings
3棟以上
or more1‐21〜2棟
buildings

3 buildings
3棟以上
Measures against
or moreinheritance and businesssuccession
1‐21〜2棟
buildings

0%

50%

36%

20%

42%

24%
30%
16%

24%

46%
39%

20%

Concerned

40%

不安に思う

Securement of funds
upon large‐scale renovation
and reconstruction

24%
45%

45%

20%

Management of tenants
upon large‐scale renovation
and reconstruction

23%

52%

Measures against
inheritance andbusiness succession

35%

60%

Slightly concerned

やや不安に思う

80%

継の対策 の資⾦確保 ントの調整

30%

相続.事業承 や建替え時 の⼊居テナ

or more⼤規模改修 や建替え時

Securement of funds
upon large‐scalerenovation andreconstruction

3 buildings
3棟以上

⼤規模改修

Management of tenants
upon large‐scalerenovation andreconstruction(By age, multiple answers)

100%

Not concerned

不安に思わない(Source) “Building Owner Survey 2017” by XYMAX Real Estate Institute40
or under
〜40歳代
50‐59
50歳代
60‐69
60歳代
70
or
older
70歳以上
40 or under
〜40歳代
50‐59
50歳代
60‐69
60歳代
70 or older
70歳以上
40 or under
〜40歳代
50‐59
50歳代
60‐69
60歳代
70 or older
70歳以上

0%

20%
Concerned

40%

60%

Slightly concerned

80%

100%

Not concerned(Source) Created by XYMAX Real Estate Institute based on the request from the AssetManagement Company

31

Advantage and Growth Strategy of XYMAX REIT

Financial Strategy: Financial management and LTV control
XYMAX REIT establishes a financial base that put emphasis on stability and soundness and is also furnished with flexibility offinancing.

┃Actual results for the 2nd fiscal period┃ Constructing a wide range of and stable bank formation based on mega banks and local banks that have afinancial and business relationship with sponsors.
 Conducted partial repayment of borrowings (580 million yen) using consumption tax refund. LTV based on total
assets reduced to 31.8%.
 Refinanced remaining amount of the borrowings matured in the 2nd fiscal period (2,336 million yen).
Balance of interest‐bearing
debts

Average remaining years

11.68 billion yen

2.5 years

0.575%

Fixed interest rate ratio

Long‐term loan ratio

LTV based on total assets

Lender formation(As of the end of 2nd fiscal period)

institutions

13 companies
Borrowing amount

71.3%

31.8 %*%

71.3%

11.68 billion yen┃Forecast of the 3rd fiscal period and thereafter┃ Repayment of borrowings and other events aren’t scheduled for the 3rd fiscal period.
 As for refinancing in the 4th fiscal period and after, consider an option most optimal from both aspects ofmaturity and financing costs.

┃ Maturity dates of interest‐bearing debts (As of the end of 2nd fiscal period)┃

23.2%

Sumitomo Mitsui
三井住友銀⾏Banking Corporation

18.4%

MUFG Bank
三菱UFJ銀⾏

13.3%

The Nishi-Nippon

Number of financial

Average interest rate

Mizuho Bank
みずほ銀⾏

⻄⽇本シティ銀⾏
City Bank

8.6%

Fukuoka Bank
福岡銀⾏

8.6%

Resona Bank
りそな銀⾏

5.6%

Hiroshima Bank
広島銀⾏

4.3%

Hokkaido Bank
北海道銀⾏

4.3%

Shinsei Bank
新⽣銀⾏

3.6%

Aozora Bank
あおぞら銀⾏

2.6%

Chiba Bank
千葉銀⾏

2.6%

肥後銀⾏
Higo Bank

2.6%

富国⽣命
Fukoku-life

2.6%┃ Borrowing capacity by LTV level ┃(million yen)

5,000
4,000

Maturity of loans refinanced in the 2nd fiscal period

LTV levelvs. total assets

Possible loan
amountAppraisal
LTV

40.0%

Approx.
5.0 billion yen

Approx.
33.4%

45.0%

Approx.
8.7 billion yen

Approx.
38.1%

50.0%

Approx.
13.3 billion yen

Approx.
43.0%

3,350

3,000

2,336

2,336

2,646

2,000
1,012

1,000
0

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)

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

32

ESG

ESG

ESG Initiatives (1) Environment

Status of 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 in energy use.

┃ BELS ┃┃ CASBEE－ Real estate┃
XYMAX Higashi‐Azabu Building

XYMAX Hachioji Building

Assessment Rank
Rank A (Very good)

Assessment Rank
Rank A (Very good)

Initiatives on energy saving

Hotel Vista Sendai

Assessment Rank★★★

┃ Implementation of construction work for adopting LED
lighting at common areas┃┃ Promotion of paperless asset management┃ Implementing construction work for adopting LED lighting at common areas andmaking efforts to save energy and reduce environmental burden

 Making efforts to realize paperless work flow at Asset Management
Company and promoting resource saving

Case of construction work at XYMAX Iwamotocho Building

Before• Introduction of electronic payment system at Asset Management Company

After• Creating paperless instructions between the trustee of each owned property

34

ESG

ESG Initiatives (2) Social

Initiatives for a sustainable society┃ Signing of Principles for Financial Action for the 21st Century ┃ Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21st Century) wasestablished on October 4, 2011 as an action guideline for financial institutions expressing concern about the future of theearth and intending to fulfill their responsibilities and roles in forming a sustainable 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.

Initiatives for employees┃ Working environment and promotion of female employees┃
 Introduction of flextime system• Flextime system is introduced widely in the sponsor group and is also
applied to the employees of the Asset Management Company.
• Asset Management Company promote the improvement of work‐lifebalance of each employee by supporting a flexible work style in linewith the degree of busyness with the introduction of a flextime
system.

┃ Personnel training┃ Introduction of qualification acquisition 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, and are promoting the enhancementof motivation in training and self‐improvement of employees.
(Common system among sponsor group) Ratio of female employees• 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)

MaleFemale(Percentage
of female)

Maternity or
child care
leave

Total

April 2017

16

14

46.7%

30

0

April 2018

15

21

58.3%

36

0

April 2019

15

22

59.5%

37

1

 Status of holding of qualification by employees of Asset Management Company(As of April 1, 2019)• Licensed Real Estate Broker 26• Real Estate Appraiser 1• ARES Certified Master 6• First‐Class Architect 1• Certified Building Administrator 3• Real Estate Consulting Master 3

35

ESG

ESG Initiatives (3) GovernanceDecision‐making flow at Asset Management Company
 XYMAX REIT adopts a decision‐making flow via committees in which external committee members participate for matters that significantly impact investors’ interests with
the intention of protecting investors’ interests.
Unapproved

Rejected

Rejected

Rejected

Examination bycompliance officer

Proposal by division(s) incharge(Acquisition and transfer of assets
Entrustment of management to interested parties, etc.)

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

Deliberation andresolution by REIT
Investment Committee (*)(Matters other than the above, etc.)

Deliberation andresolution by Board of
Directors’ Meeting

Request for
decision/approval(*) Attendance and approval by external committee members and compliance officer are imperative for approval.

Compliance education at Asset Management Company

Investment ratio in XYMAX REIT by sponsor

 Conducting a study session on compliance hosted by the complianceofficer once a quarter or more.

Through the holding of XYMAX REIT’s investment units by the sponsor, improvementin unitholder value is realized by matching the interests of investors.

 Intending to maintain and improve the knowledge on compliance aswell as fostering awareness on compliance of the employees ofAsset Management Company.

Holding ratio of XYMAX REIT’s investment units by sponsor

5.6 %(As of February 28, 2019)36

Market Analysis

Market Analysis

Accumulation and utilization of original data by XYMAX Real Estate Institute

XYMAX Groupbusiness

Technology/
information
providing

XYMAX Real
Estate InstituteCorp.

Publicationof
information

Mass media

Various media

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

Waseda University Advanced Collaborative
Research Organization for Smart Society
Land Economy and Construction and Engineering
Industry Bureau, Ministry of Land, Infrastructure,
Transport and Tourism
Institute for Building Environment and Energy
Conservation (IBEC)

Figures on upper right, upper left and bottom(Source) XYMAX Real Estate Institute Corp. Extracted
from “Office Market Report Tokyo Q3 2018”
Figure on middle right(Source) XYMAX Real Estate Institute Corp. Extracted from
“Survey on Building Owner‘s Condition (2015)”
Figure on middle left
(Source) XYMAX Real Estate Institute Corp. Extracted
from “Office Pyramid 2016”38

Market Analysis

Scarcity of small‐ and medium‐scale office buildings realized fromoffice supply dataXYMAX REIT believes that the scarcity of small‐ and medium‐scale office buildings, especially those supplied
after the bubble period, will improve when considering the floor area of existing small‐ and medium‐scale
office buildings as well as the future supply trend.
┃ Office Stock Pyramid 2019 covering the 23 Wards (Net rentable area)┃
23 Wards of Tokyo: 12.81 million tsubo, 9,206 buildings, Average building age: 30.9 years

Small‐ and medium‐scale office buildings

Large‐scale office buildings

70(Gross floor area: 300‐5,000 tsubo)(Gross floor area: 5,000 tsubo or more)

65

Whole: 6.05 million tsubo, 8,459 buildings, 31.6 years on average

Whole: 6.76 million tsubo, 747 buildings, 23.3 years on average
60

Old seismic standard:

55

Old seismic standard:

1.55 million tsubo
(26%)

50

1.21 million tsubo
(18%)

45
40
35
30
25
20

Less than 20 years:
1.07 million tsubo(18%)

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

Building age (years)

20 years or older:
4.98 million tsubo
(82%)

15

Less than 20 years:
3.37 million tsubo
(50%)

10
5
0

50

40

30

20

10

0

10

20

30

40

(Source) Survey Report by XYMAX Real Estate Institute Corp. “[23 Wards of Tokyo] Supply of New Office Space 2019 & Office Stock Pyramid 2019”50

39

Market Analysis

Trend of contracted rents by office building scale realized fromnew contract rents
XYMAX REIT believes that the volatility of rent for small‐ and medium‐scale office buildings is relatively lower
than that for large‐scale buildings and is highly stable.
┃New contracted rent by office building scale ┃Small‐ and medium‐scale office buildings(total floor area: less than 5,000 tsubo)
Large‐scale office buildings(total floor area: 5,000 tsubo or more)

Rent Index (100＝2010Q1)
200

190

180

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

160
140
120

123

146
79

118

100
80

76
60

2017
Q4

2018
Q1

2018
Q2

2018
Q3

2018
Q4

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

106

112

115

124

123

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

108

117

116

124

118

(Source) Survey Report by XYMAX Real Estate Institute Corp. “Office Market Report Tokyo Q4 2018”40

Market Analysis

Trend of tenant demand realized from the distribution of office rent
XYMAX REIT believes that there will be robust tenant needs within the range of the level between 10,000 yen
and 20,000 yen in general and regardless of market environment.
┃Distribution of contracts concluded in the 23 Wards of Tokyo (by unit price of contract rent) ┃
(%)
20
18
16
14
12
8
6
4
2
0
(%)
20
18
16
14
12
8
6
4
2
0
(%)
20
18
16
14
12
8
6
4
2
0

Largest segment of contracts
concluded in the market■■ Apr.-June 2018■■ Oct.-Dec. 2018

Jan. – Mar. 2010
Number of cases: 1,287
Number of targeted properties: 1,031

Apr. – June 2012
Number of cases: 593
Number of targeted properties: 568

Oct. – Dec. 2018
Number of cases: 1,478
Number of targeted properties: 1,228

Unit rent (yen/tsubo)(Source) Created by XYMAX Real Estate Institute upon the request of the Asset Management Company

41Market Analysis

Trend of tenant demand realized from the location of office buildings
XYMAX REIT believes that there is a certain correlation between “location,” in other words convenience
concerning the time required from the nearest station on foot, and the occupancy rate.
┃Vacancy rate by the time required from the nearest station on foot in the 23 Wards of Tokyo┃
(%)
14.0

Whole
Within a 3‐miunte walk from the nearest station

12.0

3‐5 minute walk from the nearest station
More than a 5‐minute walk from the nearest station
10.0

8.0

6.0

4.0

2.0

0.0

April
2011

October
2011

April
2012

October
2012

April
2013

October
2013

April
2014

October
2014

April
2015

October
2015

April
2016

October
2016

April
2017

October
2017

April
2018

October
2018(Source) Created by XYMAX Real Estate Institute based upon the request of the Asset Management Company.

42

Market Analysis

Trend of office unit rent and vacancy rate
Rent in the office leasing market continues to be on an upward trend while the vacancy rate continues tobe on a downward trend.
┃Office market cycle in the 23 wards of Tokyo┃(New contracted rent index)
180

Rent Index（100＝2010Q1）

2008 Q2160

1402018 Q4
2001 Q1

120

2003 Q2
100

80

2012 Q2
60
0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%
(Vacancy rate: %)

2017
Q4

2018
Q1

2018
Q2

2018
Q3

2018
Q4

Vacancy rate

2.96%

2.51%

2.28%

2.01%

1.71%

New contracted rent index

106

109

113

122

123

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

43

〜Memo〜44Appendix

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 the Tokyo 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 the Tokyo metro Hibiya line

4 minutes on foot from JR"Okachimachi" station, and other

Access3 minutes on foot from
“Uchisaiwaicho” station on the Toei
Subway Mita line
6 minutes on foot from
"Shimbashi“ station on the JR Tokyo
metro Ginza line , and otherAcquisition price(million yen)

2,500

4,250

5,020

880

1,550

1,150

Land area

402.53 m²

864.83 m²

839.09 m²

228.83 m²

365.05 m²

368.84 m²

Total floor area

2,517.50 m²

6,261.06 m²

6,084.32 m²

1,356.51 m²

2,570.13 m²

1,942.54 m²

Leasable area

1,897.75 m²

4,152.30 m²

4,792.13 m²

1,205.29 m²

2,016.00 m²

1,735.34 m²

Completion

2000

2001

2001

1991

1999

1999

Structure/Number of Floors

Reinforced concrete structure withflat roof 9F

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

Steel‐framed reinforced concrete
structure with 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 2nd fiscal
period)

8

13

6

8

5

8

Occupancy rate
(As of the end of 2nd fiscal
period)100.0%

98.1%

100.0%

100.0%

100.0%

100.0%

46

Appendix

Portfolio List (2)Property no.

OF‐07

RT‐01

RT‐02

RT‐03

HT‐01

OT‐01

Asset type

OfficeRetailRetailRetailHotel

Other (Residential)

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

JR "Kawasaki" station directconnection

15 minutes on foot from JR"Kashimada" station and "Yako"stationKeio Electric Railway Keio Line “Seiseki
Sakuragaoka" Station Directly
Connected

4 minutes on foot from JR "Sendai"
stationAccess4 minutes on foot from "KeioHachioji" 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 mainline and "Nishitetsu Chihaya" stationon the West Nippon Railway Kaizuka
line

5 minutes on foot from JR "Hachioji"
stationAcquisition price(million yen)

2,600

4,100

790

3,100

4,400

2,700

Land area

1,220.58 m²

742.44 m² (*1)

1,879.15 m²

4,467.51 m² (*2)

1,461.36 m² (*3)

2,644.63 m²

Total floor area

7,404.81 m²

3,671.09 m² (*1)

2,596.80 m²

27,161.00 m² (*2)

6,977.47 m²

10,856.15 m²

Leasable area

5,556.03 m²

3,703.87 m²

2,677.54 m²

27,610.61 m²

7,066.25 m²

10,287.93 m²

Completion

1993

2004

1997

1999

2016

2006

Structure/Number of Floors

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

Steel‐framed/Steel‐framed reinforced
concrete structure with 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

Steel‐construction with flat roof 12F

Steel‐framed reinforced concrete
structure with flat roof 14F

Number of tenant(As of the end of 2nd fiscal
period)

23

17

1

1

1

138

Occupancy rate
(As of the end of 2nd fiscal
period)96.7%

100.0%

100.0%

100.0%

100.0%

95.1%(*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 estateregistry 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 the second decimal place.
(*3) Superficies have been established for 524.21 m2 of the land area.

47

Appendix

Portfolio map
Portfolio located in favorable locations┃ Tokyo Area ┃┃ Tokyo Economy Area┃┃ Fukuoka Area ┃┃ Sendai Area┃48

Appendix
Balance Sheet and Statement of Income For the 2nd Fiscal Year

Balance Sheet
AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
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 loan

Accounts payable - other
Income taxes payable
Consumption taxes payable
Advances received
Other
Non-current liabilities
Long-term loans payable

Tenant leasehold and security deposits
in trust

Total liabilities
Net assets
Unitholdersʼ equity
Unitholdersʼ capital
Surplus
Total net assets
Total liabilities and net assets

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

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

3,528,713
943,567
1,958,065
19,92832,703572,370
2,077
33,621,490
33,521,850
93,436
8,773,693
44,635
3,814
24,606,271
99,63943,50428
22,60033,507
37,150,203

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

3,409,184
201,1312,916,000
106,382
1,687
181,442
2,540
10,572,116
9,344,000
1,228,116
13,981,301

3,786,023
100,769
1,014,000
2,336,000
95,119836
65,039173,375883
9,526,612
8,330,000
1,196,612
13,312,636

23,168,901
22,585,746
583,155
23,168,901
37,150,203

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

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
Directorsʼ compensations
Other operating expenses

Operating income

Non-operating income
Interest income
Non-operating expenses
Interest expenses
Borrowing related expenses
Investment unit issuance expenses

Deferred organization expenses
Business commencement expenses

Non-operating 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)

1st fiscal period(As of Aug. 31, 2018)(thousand yen)
1,374,843
1,268,583
106,260
477,330
352,220
85,797882
12,0404,800
21,588897,51216
16
312,710
32,979102,607
93,42372,045
11,654
584,818584,818
1,662
1,690
-28
583,155－

2nd fiscal period(As of Feb. 28, 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
16803,287
81

583,155

803,368

49

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

78,324

141,627

161,945

42,72758,59643,869Lease business revenue

72,210124,378

149,523

32,731

51,66837,586

Other lease businessrevenue

6,114

17,24912,421

9,996

6,928

6,282

Operating expenses fromreal estate leasing

12,82428,22025,602

17,69912,408

9,902

-

-

-

0

0

0

Maintenance fee

5,285

10,304

10,728

4,471

6,161

4,235

Utility expenses

5,540

10,331

10,905

2,626

3,741

3,750

Repair expenses

766

5,976

3,234

758

1,242

1,040

Insurance premium

61

218

210

46

81

59

1,170

1,389

524

9,797

1,180

816

65,500113,407

136,343

25,02846,18833,967

2,569

9,766

9,893

1,258

3,679

2,336

62,930103,640

126,449

23,76942,50831,630（Excluding Depreciation）

Tax and public dues

Other expenses related
to rent business

ＮＯＩ
Depreciation

Operating income (loss)
from real estate leasing

50

Appendix

Operating Income (Loss) from real estate leasing by asset（2/2）(thousand yen)Hachioji

Kawasaki

Kawasaki Miyuki

Seiseki‐
Sakuragaoka

Sendai

Chihaya

Total

Operating revenue fromreal estate leasing

129,527

158,990

undisclosed

undisclosed

148,200

101,852

1,312,404

Lease business revenue

109,854

138,827

undisclosed

undisclosed

148,200

96,6401,204,800

Other lease businessrevenue

19,672

20,162undisclosed

undisclosed

-

5,212

107,604

Operating expenses fromreal estate leasing

33,08334,426undisclosed

undisclosed

6,878

21,606215,266

0

4

undisclosed

undisclosed

-

4

13

Maintenance fee

15,60014,566undisclosed

undisclosed

1,800

7,682

82,636

Utility expenses

9,289

14,732undisclosed

undisclosed

-

1,624

62,542

Repair expenses

5,341

4,153

undisclosed

undisclosed

-

6,358

36,351

Insurance premium

272

188

undisclosed

undisclosed

212

291

3,720

2,580

780

undisclosed

undisclosed

4,865

5,645

30,00396,443

124,563

26,017208,109141,32180,246

1,097,138

9,175

15,953

1,502

11,54532,016

18,979118,679

87,267

108,610

24,515

196,563

109,304

61,266

978,458（Excluding Depreciation）

Tax and public dues

Other expenses related
to rent business

ＮＯＩ
Depreciation

Operating income (loss)
from real estate leasing

51

Appendix

Overview of Appraisal Report
End of 1st FY(August 31, 2018)

End of 2nd FY(February 28, 2019)

Book value as
Acquisition
Capitalization
Capitalization
Acquisitionof the end of
pricerate based onrate based ondate
2nd FY(million yen)directdirectAppraisal value
Appraisal value(million yen) (million yen)capitalization
capitalization(million yen)methodmethod(%)(%)

ChangeCapitalization
rate based on
directcapitalization
method*2(%)

Unrealized
profit or
loss*3 (million
yen)

Asset
no.

Asset name

OF-01

XYMAX Nishi-Shimbashi Building

February
2018

2,500

2,525

3,080

3.7

3,080

3.7

-

OF-02

XYMAX Iwamotocho Building

February
2018

4,250

4,332

5,350

3.7

5,540

3.6

190

Real Estate-0.1 Japan
Institute

1,207

OF-03

XYMAX Shinjuku-Gyoen Building

February
2018

5,020

5,066

6,340

3.7

6,520

3.6

180

Real Estate-0.1 Japan
Institute

1,453

OF-04

XYMAX Kamiyacho Building

February
2018

880

894

1,140

3.8

1,160

3.8

20

Tanizawa Sōgō
- The
Appraisal Co., Ltd.

265

OF-05

XYMAX Higashi-Azabu Building

February
2018

1,550

1,584

2,090

3.9

2,100

3.9

10

Real Estate- Daiwa
Appraisal Co., Ltd.

515

OF-06

XYMAX Higashi-Ueno Building

February
2018

1,150

1,160

1,590

4.0

1,590

4.0

-

Real Estate- Daiwa
Appraisal Co., Ltd.

429

OF-07

XYMAX Hachioji Building

February
2018

2,600

2,618

3,510

4.9

3,570

4.8

60

Real Estate-0.1 Japan
Institute

951

RT-01

Muza Kawasaki

February
2018

4,100

4,112

5,200

4.1

5,210

4.1

10

Tanizawa Sōgō
- The
Appraisal Co., Ltd.

1,097

RT-02

Life Kawasaki Miyuki Store

February
2018

790

799

974

4.2

975

4.2

1

Real Estate- Daiwa
Appraisal Co., Ltd.

175

RT-03

Vita Seiseki-Sakuragaoka

February
2018

3,100

3,212

3,870

5.0

3,870

5.0

-

Tanizawa Sōgō
- The
Appraisal Co., Ltd.

657

HT-01

Hotel Vista Sendai

February
2018

4,400

4,399

5,550

4.6

5,550

4.6

-

Tanizawa Sōgō
- The
Appraisal Co., Ltd.

1,150

OT-01

Renaissance 21 Chihaya

February
2018

2,700

2,791

3,130

5.0

3,130

5.0

-

Tanizawa Sōgō
- The
Appraisal Co., Ltd.

338

33,04033,497

41,824-42,295-471

Total ／Average

Appraisalvalue*1(million yen)Appraiser

Tanizawa Sōgō
- The
Appraisal Co., Ltd.

-(*1)The difference between the estimated value at the end of the 1st fiscal period and the estimated value at the end of the 2nd 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 1st 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 1st fiscal period for portfolio assets and the book value at the end of the 2nd fiscal period for portfolio assets is indicated.

554

-

8,797

52

Appendix

Status of Unitholders

Major Unitholders
Name

Note: As of February 28, 2019

Number ofinvestment units(unit)

Ratio(%)

Number of unitholders by owner
Other domestic corporations

Foreigners

107 holders, 2.4%

70 holders, 1.6%
Securities companies
16 holders, 0.4%

Financial institutions

The Master Trust Bank of Japan, Ltd.
(Trust account)47,13021.10

Japan Trustee Services Bank, Ltd.
(Trust account)

33,245

14.88

37 holders, 0.8%

4,450
holders
Individuals, others

XYMAX Corporation

12,5005.60

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

12,116

5.42

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

6,516

2.92

SIX SIS LTD.

4,594

2.06

4,220 holders, 94.8%

Number of investment units by owner
Foreigners

Aozora Bank, Ltd.

4,589

GOLDMAN SACHS INTERNATIONAL

3,694

BNP PARIBAS SECURITIES SERVICES LUXEMBOURG /JASDEC / SECURITIES‐AIFM

3,564

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

3,255

44,309 units, 19.8%

2.05
1.65
1.60

Individuals, other
33,717 units, 15.1%

Securities Companies

Individuals, other

5,953 units, 2.7%
Other domestic companies
21,073 units, 9.4%

33,717 units, 15.1%

223,400
units

Financial institutions
118,348 units, 53.0%

1.46
Corporations

Total

131,203

58.73

189,683 units, 84.9%

53

Appendix

Overview of Asset Management Company
Overview
Company nameLocation

History
XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation

Establishment of the company

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

Establishment

August 6, 2007

Capital

0.2 billion yen

Major
shareholders

XYMAX Corporation (100% stake)

Number of
employees

37 (as of April 1, 2019)(1) Financial instruments business as prescribed in the Financial Instruments andExchange Act

Lines of businessAugust 6,
2007(2) Real estate investment advisory business and discretionary real estate investment
business(3) Asset management business for investment corporation

September 22,
2007

Obtained real estate brokerage business license(License No. Governor of Tokyo License (3) No. 88223)

June 17,
2008

Registered as investment management business as well as investment advisory andagency business under the Financial Instruments and Exchange Act(Registration No. Director‐General of the Kanto Local Finance Bureau Registration (FIBO)
No. 1907)

June 28,2011

Registered as type II financial instruments business under the Financial Instruments andExchange Act(registered the change)(Registration No. Director‐General of the Kanto Local Finance Bureau Registration (FIBO)
No. 1907)

April 22,2015

Joined Japan Investment Advisers Association

June 30,
2017

Obtained approval to conduct discretionary transaction agency, etc. business under theReal Estate Brokerage Act(Approval No. Minister of Land, Infrastructure, Transport and Tourism Approval No.
118)

Nobuhito Inatsuki, Representative Director and President

Executives

Yasushi Yamaguchi, Director
Ryuichi Yoshimura, 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

September 4,
2017

Obtained approval to conduct concurrent business related to specified investment
management activities

October 19,
2017

Joined The Investment Trusts Association, Japan

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

54

Appendix

Overview of XYMAX Group

Company nameXYMAX Corporation (non‐listed)

Establishment

March 1, 1990

Location of
headquarters

1‐1‐1 Akasaka, Minato‐ku, Tokyo

Spin‐out from Recruit Co., Ltd. through employee participatory MBO in 2000

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

Sales

79.195 billion yen (actual results for the fiscal period ended March2018) *Consolidated figures of the group

Representative
Major shareholders

Representative Director, Chairman & CEO Masafumi Shimada
XYMAX shareholding association, directors & employees, clients andfinancial institutions
Total 276 (as of September 30, 2018)

Number of
employees

5,026 (as of March 1, 2019) *Consolidated figures of the group55

Appendix

Examples of XYMAX Group’s business

OfficeRetail■ E‐Space Tower (Shibuya‐ku, Tokyo) *Property Management and Building Maintenance■OYAMA YUEN HARVEST WALK (Tochigi)
Development■Shinjuku Maynds Tower (Shinjuku‐ku, Tokyo) *Property Management■LINOAS (Osaka) *Renewal & Reopen(*) 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.

56

Appendix

Example of XYMAX Group’s expanding B to C business
Office business “ZXY” leading work‐style reform■Workplace service enabling free work style■ Satellite work office with space for kids

ZXY Share

ZXY Monthly┃ Change in number of members and workplaces┃

ZXY kids space (Image)

The Groupʼs own brand “Karaksa Hotels” also mee ng the needs for inbound tourism
Opened: 5 hotels, 533 rooms; To be opened: 5 hotels, 934 rooms (as of March 31, 2019)

Change in number of hotels developed andoperated and number of guestrooms
12
1,500

棟数（棟）
Number of hotels

10

1,467

(hotels)

1,1378

客室数（室）
Number of

6

guestrooms(rooms)
533

1,000

356

10

4
2

8

105
2

4

5
0

0

Karaksa Hotel Osaka Namba *Karaksa Spring Hotel Kansai Air Gate *(*) As of the date of this material, the XYMAX REIT has not determined the acquisition of these properties and there is
no guarantee that the XYMAX REIT will acquire them in the future.

500

2016

2017

2018

2019

Opening date undetermined(Source) XYMAX Corporation

57

Appendix

XYMAX Group’s Sourcing
Intending to realize external growth in terms of the number of cases, total amount and area by utilizing
abundant track records in real estate sales and brokerage
Use and geographical area of real estate in real estate
disposals and real estate sales brokerage results

To investment corporations, etc. */Whole
Disposals and sales
brokerage
Number of cases
Disposals andsales brokerage
Total

2.3%

34

269

10.4%
0.6%

147.6billion yen
478.0 billion yen

Hotel

57.5%

Logistics

Tokyo

40.1%

4.9%
5.3%

Other Tokyo Metropolitan
Area
Osaka Area
Nagoya Area
Fukuoka 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%

OfficeOther

4.3 billion yen

Other

1.7 billion yen

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

By asset (whole)(based on transaction price)

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

and intermediary to other than
■ Saleinvestment corporations, etc.
and intermediary to investment■ Salecorporations, etc.

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

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(*) Vehicle for acquisition and holding of properties with the intent to transfer them to real estate investment corporations

1,378

1,476

End of March2018年3⽉末
2018

End of March
2019年3⽉末
2019(Source) XYMAX Corporation

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Appendix

Status of IR activities/ESG initiatives at Sponsor Group

Status of IR activities┃ IR activities for institutional investors┃┃ IR activities for individuals┃

 Domestic IR

 Presentations for individual investors

October‐November 2018 Visited a total of 34 companies including 21 companies in urban
areas and 13 companies in local areas Overseas IR
November 2018

Visited a total of 7 companies in Singapore and Hong Kong

 Participation in international conferences
September 2018

Mizuho Investment Conference Tokyo (Host: Mizuho Securities)

December 2018

Property Conference Tokyo 2018 (Host: SMBC Nikko Securities)

February 2019

Nomura Global Real Estate Forum 2019 (Host: Nomura Securities)

December 10, 2018

Seminar for individuals at the Kita‐Kyushu branch(Kita‐Kyushu) of Mizuho Securities

December 17, 2018

SMBC Nikko J‐REIT Seminar (Kobe)

December 21, 2018

Nikkei J‐REIT Seminar (Tokyo)

January 30, 2019

Radio NIKKEI Daiichi Asazai

February 22, 2019

Tokyo Stock Exchange IR Festa (Tokyo)

ESG initiatives at Sponsor Group┃ Received DBJ Green Building Certification for group headquarters┃
XYMAX Akasaka 111 Building*

XYMAX Tameike‐Sanno Building*┃ Initiatives for the 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 and Engineering Industry Bureau,
Ministry of Land, Infrastructure, Transport and Tourism
 Contributing to “ARES Real Estate Securitization Journal”
 Serving as lecturer of “ARES Real Estate Securitization Master” training course
 Introduced telework at back‐office departments(*) As of the date of this material, the XYMAX REIT has not determined the acquisition of these properties and there is no guarantee that the XYMAX REIT will acquire them inthe future.

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Disclaimer

This document is provided solely for informational purposes with regard to XYMAX REIT Investment Corporation (hereinafter, “XYMAX REIT”)
and is not intended to serve as an inducement or solicitation to trade in any product offered by XYMAX REIT. Decisions on investments are to bemade using your own discretion and responsibility.
Purchase, sale and such of XYMAX REITʼs investment units entail the risk of incurring a loss due to fluctuations of 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 facts 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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