(REIT) Financial Report for the Fiscal Period Ended August 2020
REIT Securities Issuer:
Securities Code:
Representative:

October 14, 2020
Listing: Tokyo Stock Exchange
URL: https://xymaxreit.co.jp/en/index.html

XYMAX REIT Investment Corporation
3488
Nobuhito Inatsuki, Executive Director

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

Nov 30, 2020
Nov 19, 2020

Supplementary materials for financial results:
Financial results briefing session:

Yes
Yes (for institutional investors and analysts)

1.

(Amounts are rounded down to the nearest million yen)
Status of Management and Assets for the Fiscal Period Ended August 2020 (from March 1, 2020 to August 31, 2020)(1) Results of Operations(% figures are the rate of period-on-period increase (decrease))
Operating revenue
million yen
Fiscal period
ended Aug. 2020
Fiscal period
ended Feb. 2020

Operating income

Ordinary income

Net income% million yen%

million yen%

million yen

%

1,364

1.6

771

6.6

725

7.8

724

7.8

1,343

(0.4)

724

(0.3)

672

(1.4)

671

(1.5)

Net income per unit

Fiscal period
ended Aug. 2020
Fiscal period
ended Feb. 2020

Ratio ofordinary income tooperating revenue

Ratio ofordinary income tototal assets

Return on equity

yen

%

%

%

3,241

3.1

2.0

53.1

3,007

2.9

1.8

50.1

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

Total
distribution(excluding
distribution
in excess ofearnings)
million yen

3,242
3,007

Fiscal period
ended Aug. 2020
Fiscal period
ended Feb. 2020

Distribution
in excess ofearnings
per unit

Total
distribution
in excess ofearnings

Payout ratio

Ratio ofdistribution to
net assetsyenmillion yen

%

%

724

-

-

100.0

3.1

671

-

-

100.0

2.9

(3) Financial Position

Fiscal period
ended Aug. 2020
Fiscal period
ended Feb. 2020

Total assets
million yen

Net assets
million yen

36,71636,587

Equity ratio%

Net assets per unit
yen

23,31063.5

104,342

23,257

63.6

104,107(4) Cash Flows

Fiscal period
ended Aug. 2020
Fiscal period
ended Feb. 20202.

Net cashprovided by (used in)operating activities
million yen

Net cashprovided by (used in)investing activities
million yen

Net cashprovided by (used in)financing activities
million yen

Cash andcash equivalents
at end of period
million yen

884

(116)

(672)

2,996

761

(149)

(681)

2,900

Operating Forecasts for the Fiscal Period Ending February 2021 (from September 1, 2020 to February 28, 2021) and Fiscal
Period Ending August 2021 (from March 1, 2021 to August 31, 2021)(% figures are the rate of period-on-period increase (decrease))

Operating revenue Operating income

Ordinary income

Net income

Distribution
per unit(excluding
distribution
in excess ofearnings)

Distribution
in excess ofearnings
per unit

mn yen% mn yen% mn yen% mn yen%yen
yenFiscal period
1,270
(6.9)
668
(13.4)
601(17.0)
600(17.1)
2,688
ending Feb. 2021
Fiscal period
1,227
(3.4)
615
(7.8)
562
(6.4)
561
(6.4)
2,515
ending Aug. 2021
(Reference) Forecast net income per unit
(Forecast net income ÷ Forecast total number of investment units issued and outstanding at end of period)
Fiscal period ending February 2021:2,688yen
Fiscal period ending August 2021: 2,515yen* Other(1) Changes in Accounting Policies, Accounting Estimates, and Retrospective Restatements
i. Changes in accounting policies accompanying amendments to accounting standards, etc.:
ii. Changes in accounting policies other than i.:iii. Changes in accounting estimates:
iv. Retrospective restatements:

None
None
None
None

(2) Total number of investment units issued and outstandingi. Total number of investment units issued and outstanding (including treasury investment units) at end of period
Fiscal period ended Aug. 2020
223,400 units
Fiscal period ended Feb. 2020
223,400 units
ii. Number of treasury investment units at end of period
Fiscal period ended Aug. 2020
0 units
Fiscal period ended Feb. 2020
(Note)

0units

For the number of investment units serving as the basis for calculation of net income per unit, please see “Notes on Per Unit Information”
on page 26.

* Explanation of Appropriate Use of Operating Forecasts, and Other Matters of Special Note
The operating forecasts and other forward-looking statements contained in this document are based on information currently
available to and certain assumptions deemed reasonable by XYMAX REIT. Accordingly, the actual results of operations, etc.
may differ materially due to various factors. Key factors that could affect the actual operational status include a decline in rent
revenue, non-payment of rent and bankruptcy of tenants occupying owned properties, as a result of the further spread of the
new coronavirus infectious diseases and the prolongation of the period until the contagion converges. Factors affecting theinvestment status are not limited to these. In addition, the forecasts are not a guarantee of the amount of distribution. For theassumptions underlying the operating forecasts, matters of note in the use of the operating forecasts, etc., please see“Assumptions Underlying the Operating Forecasts for the Fiscal Period Ending February 2021 (from September 1, 2020 toFebruary 28, 2021) and Fiscal Period Ending August 2021 (from March 1, 2021 to August 31, 2021)” on page 6. Accordingly,
the actual operating revenue, operating income, ordinary income, net income, distribution per unit and distribution in excessof earnings per unit may vary due to changes in the circumstances.

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
Table of Contents
1. Management Status ............................................................................................................................................................................. 2(1) Overview of the Fiscal Period under Review ............................................................................................................................... 2(2) Outlook for the Next Fiscal Period ............................................................................................................................................... 3
2. Financial Statements ........................................................................................................................................................................... 8(1) Balance Sheet ................................................................................................................................................................................. 8(2) Statement of Income ................................................................................................................................................................... 10(3) Statement of Unitholders’ Equity ............................................................................................................................................... 11(4) Statement of Cash Distribution .................................................................................................................................................. 12(5) Statement of Cash Flows ............................................................................................................................................................. 13(6) Notes on the Going Concern Assumption .................................................................................................................................. 14(7) Notes on Matters Concerning Significant Accounting Policies ................................................................................................. 14(8) Notes on the Financial Statements ............................................................................................................................................. 17(9) Changes in Total Number of Investment Units Issued and Outstanding ................................................................................. 26
3. Reference Information ...................................................................................................................................................................... 27(1) Investment Status ........................................................................................................................................................................ 27(2) Investment Assets ....................................................................................................................................................................... 28-1-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020

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

Management Environments
In this fiscal period, real GDP was down by 7.9% (down 28.1% annually) in the April to June quarter of 2020, thethird consecutive quarter and the largest negative growth in the postwar period, due in part to the impact of the
global spread of the COVID-19 infection and the limitation of economic activities due to the announcement of theEmergency Situation. In the financial market, according to the "Loans and Bills by sector," published by the Bank ofJapan, as a result of the deteriorating real-world economies caused by the COVID-19 infection, as a result of the
movement to expand the fund in hand, the total amount at the end of June 2020 was 538 trillion and the amount toreal estate was 83.7 trillion, which are extremely high.
Under these circumstances, the following trends have been observed in the markets for office, retail, and hotel and thereal estate investment market, in which the Investment Corporation is primarily invested.
Regarding office market, according to the Office Market Report Tokyo 2020Q2 (Note) published by Xymax Real Estate
Research Institute, Inc., the vacancy rate in Tokyo's 23 wards in 2Q of 2020 increased by 0.30point from the previous
quarter to 1.01%. The stagnation of economic activities due to the announcement of the Emergency Situation had an
impact on office-leasing activities. Besides, there were moves by companies to abandon the relocation due to theincreased uncertainty about the economic outlook.
In retail market, retail sales in the 2Q of 2020 declined 9.3% year on year, according to METI's Retail statistics. In
particular, sales at department stores declined by an average of 50.6% nationwide, which was significantly affectedby voluntary restraints on going out due to the announcement of Emergency Situations and the decline in thenumber of foreign visitors to Japan. On the other hand, sales in supermarkets, which mainly sell daily necessities,
increased by an average of 5.1% nationwide, and are steady even under the impact of the spread of the COVID-19
infection. In addition, according to a survey of trends in the service industry conducted by the Statistics Bureau ofJapan, restaurant sales decreased 51.3% from the same quarter of the previous year. Sales in April and May
decreased by 62.9% in April and 57.1% in May compared with the same month of the previous year due to theeffects of restraint on going out, while sales decreased by 33.1% in June due to the backlash of self-restraint andthe movement of each local government to resume operations in line with new lifestyles.
As for hotel, the total number of guests in the first half of 2020 (January to June) fell 52.2% from the same period-2-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020of the previous year, according to the Tourism Agency's Statistical Survey on Accommodation Travels. The numberof visitors to Japan decreased by 76.3% in the first half of 2020 (January to June), as announced by the Japan
National Tourism Organization. Until 2019, both the number of guests and the number of foreign visitors to Japan
were steady. However, the hotel industry as a whole has been severely negatively affected by limitations on the
movement of people domestically and overseas due to the COVID-19 infection. The domestic movement in Japan is
showing signs of picking up due to the Go To Travel Campaign etc., but it will take a considerable amount of time
for the full recovery of demand for accommodations. In addition, the number of foreign visitors to Japan remains at
a very much low level due to the ongoing global spread of the COVID-19 infection.
In the real estate investment market, while the trading of hotels and retails, which have been significantly
affected by the COVID-19 infection, has been more sluggish than before, the trading market as a whole has been
experiencing soaring transaction prices and continuing investment activities, particularly in asset types such as
residential and logistics facilities, against the backdrop of favorable financing conditions.
(NOTE) Please refer to the website (https://soken.xymax.co.jp/) of Xymax Real Estate Institute, Inc. for more detailed information on thesurvey results.

III. Management Status
As of the last day of the fiscal period under review, XYMAX REIT had 12 properties in its portfolio. Its total acquisition
price stood at 33,040 million yen, a total leasable area at 72,701.04 m2 and total leased area at 72,127.20 m2. The
occupancy rate as of the last day of the fiscal period under review was 99.2%.
IV. Financing Status(Equity Financing)In the fiscal period under review, XYMAX REIT did not procure funds through issuance of new investment units. Asof the last day of the fiscal period under review, unitholders’ capital was 22,585 million yen.
(Debt Financing)In the fiscal period under review, XYMAX REIT did not conducted any repayment and new borrowing.
As a result, as of the last day of the fiscal period under review, the balance of loans outstanding was 11,680 million
yen.
V.

Overview of Business Performance
Business performance in the fiscal period under review resulted in operating revenue of 1,364 million yen, operating
income of 771 million yen, ordinary income of 725 million yen and net income of 724 million yen.
Concerning distribution for the fiscal period under review, pursuant to the distribution policy provided in XYMAXREIT’s Articles of Incorporation, the decision was made to distribute unappropriated retained earnings in theamount of 724,262,800yen, which is the largest integral multiple of the total number of investment units issued andoutstanding (223,400 units) by application of special provisions for taxation on investment corporations (Article 6715 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957, as amended)). This resulted in
distribution per unit of 3,242yen.

(2) Outlook for the Next Fiscal Period
I. General Management Outlook(A) External Growth Strategy
Capture wide range of real estate disposition needs through real estate management customer base
XYMAX REIT captures real estate disposition needs from the customer base of the XYMAX Group based on a sponsor
support agreement with XYMAX Corporation with the aim to lead such needs to property acquisition opportunities
for XYMAX REIT.
(B) Internal Growth Strategy
Utilization of the real estate management insight and know-how and network of the XYMAX GroupThrough the sponsor support agreement with XYMAX Group, XYMAX REIT is provided with various real estate
management insight, know-how, databases, management systems, private fund management experience, etc. On thisbasis, XYMAX REIT can and will perform stable and efficient management.
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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020

(C) Financial Strategy
Financial management with emphasis on stability and soundness, and LTV ratio control
XYMAX REIT shall execute a financial strategy that places emphasis on stability and soundness and secure agility infund procurement, taking into consideration the securing of stable revenue over the medium to long term, steady
growth in size of assets under management and stability of management.
II.

Significant Subsequent Events
Not applicable.
(Reference)(A)Property Acquisition
XYMAX REIT acquired the real estate trust beneficiary rights of the following property on September 1, 2020.

Category

Propertyno.
(Note 1)

Property
name

RT-04

Life
Fukuizumi
Store

Acquisition
date

Location

SellerAcquisition
price（millionyen）Appraisalvalue(millionyen)(Note 3)(Note 2)Retail

Sakai-city,
Osaka

September
JDC
1, 2020CORPORATION

1,065

1,090

(Note 1) “Property no.” refers to the property codes and numbers according to the type of the asset held by XYMAX REIT. For each code, OF
represents Office, RT represents Retail, HT represents Hotel, and OT represents other. The same shall apply hereinafter.
(Note 2) “Acquisition price” is the amount set forth in the purchase and sale agreement. The purchase price does not include national andlocal consumption taxes or acquisition costs and is rounded down to the nearest million yen. The same shall apply hereinafter(Note 3) “Appraisal value” represents the appraised value as stated in the real estate appraisal report dated July 31, 2020, as appraisal date.
The appraisal was prepared by Daiwa Real Estate Appraisal Co., Ltd.

(B) Borrowing of Funds
XYMAX REIT borrowed the funds described below and applied the funds to part of the purchase price of thereal estate trust beneficiary rights (Life Fukuizumi Store and related expenses on September 1, 2020.
Category(Note 1)

Shortterm

LenderMizuho Bank,
Ltd.

BorrowingAmount(million
yen)

1,100

Interest
Rate

Drawdown
Date

Borrowing
MethodSep. 1,
2020

Borrowingbased on a
Loanagreementwith thelendershown
at left as
lenderBase
rate+ 0.15%(Note 3)(Note 4)

Maturity
Date(Note 2)

Principal
Repayment CollateralmethodLump‐sumJan. 31,
2021

Unsecured
repayment
Nonguara
atnteedmaturity(Note 1) “Short-term” refers to borrowing for a period from the drawdown date to the maturity date of one year or less.
(Note 2) If the due date is a non-business day, it shall be the following business day. If such day falls in the following month, it shall be theimmediately preceding business day.
(Note 3) The base rate applicable to the period for the calculation of the interest payable on an interest payment date is the JBA one month
Japanese Yen TIBOR as of a date two business days prior to the interest payment date immediately preceding each interest payment date.
However, if the base rate applicable to the calculation period does not exist, the base rate will be the one corresponding to the periodthat will be calculated based on a method provided in the agreement. Please check the website of the JBA TIBOR Administration(http://www.jbatibor.or.jp/english) for the JBA Japanese Yen TIBOR.
(Note 4) The interest payments will be made on September 30, 2020 and the last day of each month thereafter as well as on the maturity date of
the principal. (If an interest payment date is a non-business day, it shall be the following business day. If such day falls in the following
month, it shall be the immediately preceding business day.)-4-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
III. Operating Forecasts
XYMAX REIT revises forecasts of the financial results and distributions for the fiscal period ending February, 2021
(from September 1, 2020 to February 28, 2021) as follows;
Operatingrevenue

OperatingincomeOrdinary
incomeNet income

Distribution perunit(excluding
distribution
in excess ofearnings)

Operatingrevenue

Previous forecast(A)1,323
million yen

723
million yen

663
million yen

662
million yen

2,966
million yen-

Revised forecast(B)1,270
million yen

668
million yen

601
million yen

600
million yen

2,688
yen

-

(53)
million yen(55)
million yen(62)
million yen(62)
million yen

(278)
yen

-

Change(B-A)% of change((B-A)/A)

(4.0)
(7.6)
(9.3)
(9.3)
(9.3)
%
%
%
%
%
With respect to Hotel Vista Sendai which XYMAX REIT owns (“the Hotel”, hereinafter), Vista Hotel Management, theoperator of the Hotel has requested rent reductions. As of today, the Management Company and the operator isnegotiating the issue including adequacy of revision of relevant lease agreement (“the Negotiations”, hereinafter) and it
is extremely difficult to reasonably predict the outcome of the Negotiations.
Therefore, XYMAX REIT decided to revise the Operating Forecasts from the precious forecast as described above bychanging the assumptions stated in the Financial Report for the fiscal period ended February 2020 and re-estimating theperformance of the Hotel conservatively.
However, there seem to be a sign that performance of the Hotel has been recovering since June 2020 after thecancellation of declaration of a state of emergency. As the result for August 2020, the Hotel achieved 6,208yen of ADR,
58.1% of occupancy rate, and 3,608yen of RevPAR (Revenue per Available Room).
XYMAX REIT’s operating forecasts for the fiscal period ending February 2021 (from September 1, 2020 to February
28, 2021) and Fiscal Period Ending August 2021 (from March 1, 2021 to August 31, 2021) are as follows:
Distribution
Distribution
per unit
in excess of(excluding
OperatingOperating
Ordinary
Net income
earnings
distribution
revenueincomeincomeper unit
in excess ofearnings)
million yen
million yen
million yen
million yen
yenyen
Fiscal period
1,270
668
601
600
2,688
ending Feb. 2021
Fiscal period
1,227
615
562
561
2,515
ending Aug. 2021
Furthermore, for the assumptions underlying the operating forecasts, please refer to “Assumptions Underlying the
Operating Forecasts for the Fiscal Period Ending February 2021 (from September 1, 2020 to February 28, 2021) andFiscal Period Ending August 2021 (from March 1, 2021 to August 31, 2021)” presented later in this document.
(Note)

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

-5-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
Assumptions Underlying the Operating Forecasts for the Fiscal Period Ending February 2021 (from September 1, 2020 toFebruary 28, 2021) and Fiscal Period Ending August 2021 (from March 1, 2021 to August 31, 2021)
Item
Accounting
periodAssets undermanagement

Operatingrevenue

Assumption
 Fiscal period ending February 2021 (6th fiscal period)(from September 1, 2020 to February 28, 2021) (181 days)
 Fiscal period ending August 2021 (7th fiscal period)(from March 1, 2021 to August 31, 2021) (184 days) The assumption is that the real estate trust beneficiary rights held by XYMAX REIT as of August 31,
2020 (total of 12 properties) and the real estate trust beneficiary rights of Life Fukuizumi Storeacquired on September 1, 202 [total of 13 properties](hereinafter, the “current portfolio assets”) willcontinue to be held and there will be no acquisition of new properties other than the current portfolio
assets through to the end of the fiscal period ending August 2021 (7th fiscal period).
 Change may arise due to acquisition of new properties other than the current portfolio assets,
disposition of the current portfolio assets, etc.
 Operating revenue from leasing is calculated on the basis of various factors, such as the content of leaseagreements entered into for the current portfolio assets and past tenant and market trends, and by
taking into account various factors, such as the assumed occupancy rate and rent fluctuation
projections based on tenant move-in/move-out and rent level projections.
 Variable rent is calculated on the basis of mainly the budgeted operating figures submitted by theoperator and based on the method of calculation provided in the lease agreement.
[Hotel Vista Sendai]
Fixed rent:
Contracted monthly fixed rent is 20.0 million yen per month, however, from a mostconservative viewpoint, we assume the fixed rent will not be paid after November,
2020
Variable rent: The monthly variable rent shall be the amount equal to the total variable rent received
by the lessee from the sub-lessee (hereinafter, “variable rent from subtenant” (Note))
in the past 12 months, including said month, divided by 12. Variable rent is paid by thesubtenant every month tentatively, according to the GOP of the month and adjusted
annually based on the contracted annual GOP. We assumed the variable rent of 6th FP
and after with the conservative viewpoint that the spread of the COVID-19 willcontinue more than 6 months or longer. As a result of this assumption, there happeneddeference between variable rent tentatively paid by the subtenant and adjusted final
variable rent.
(Note)



Operatingexpenses

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

Fiscal period
Fiscal period
ending Aug. 2021
ending Feb. 2021
(7th fiscal period)(6th fiscal period)
Variable rent(3)million yen
The assumption is that there will be no delinquent or unpaid rent by tenants and no gain (loss) on salesof real estate properties.
Of operating expenses, the main components are as follows:
Fiscal period
Fiscal period
ending Aug. 2021
ending Feb. 2021
(7th fiscal period)(6th fiscal period)
Expenses related to leasing business [Total]
484million yen
486million yen
Management fees
85million yen
85million yen
Repair expenses
31million yen
29million yen
Property taxes
133million yen
140million yen
Depreciation
135million yen
139million yen
Other than expenses related to leasing business117million yen
125million yen[Total]Asset management fees
75million yen
77million yen
Expenses related to leasing business, which are the main operating expenses, are calculated on thebasis of historical data at XYMAX REIT (historical data disclosed by the previous owner, etc. in the caseof periods for which there is no historical data at XYMAX REIT) and by taking into consideration factors
causing fluctuation in expenses.
Depreciation is calculated using the straight-line method inclusive of incidental expenses, etc.
Repair expenses are the amount necessary in each fiscal period as assumed on a property-by-property
basis by the Asset Management Company. However, repair expenses possibly increasing in amount or
additionally arising from unforeseeable factors, the amount generally tending to vary materially fromfiscal year to fiscal year and not being an amount that arises periodically, etc. may result in repair
expenses for each fiscal period differing materially from the forecast amount.
For the fiscal period ending February 2021 (6th fiscal period), interest expenses and other borrowing
related expenses are assumed to be 66million yen.
For the fiscal period ending August 2021 (7th fiscal period), interest expenses and other borrowing-6-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
Item

Assumption
related expenses are assumed to be 53million yen.

Interest-bearing
liabilities

Investment units

Distribution
per unit(excluding
distribution
in excess ofearnings)
Distribution
in excess ofearnings
per unit The assumption is that total interest-bearing liabilities will be 12,780 million yen at the end of the fiscal
period ending February 2021 (6th fiscal period) and 12,780 million yen at the end of the fiscal period
ending August 2021 (7th fiscal period). Short-term loans of 1,914 million yen and long-term loans of
2,336 million are due in the fiscal period ending February 2021. The assumption is that these will be
repaid with funds procured through loans, etc.
 LTV ratio is expected to be 33.9% at the end of the fiscal period ending February 2021 (6th fiscal
period) and 34.0 % at the end of the fiscal period ending August 2021 (7th fiscal period). In addition,
the following formula is used in the calculation of LTV ratio.
LTV ratio = Total interest-bearing liabilities ÷ Total assets × 100
 The assumption is the total number of investment units issued and outstanding is 223,400 units as ofthe end of the fiscal period ended August 2020 and that there will be no change in the number ofinvestment units due to issuance of new investment units, etc. through to the end of the fiscal period
ending August 2021 (7th fiscal period).
 Distribution per unit (excluding distribution in excess of earnings) and distribution in excess ofearnings per unit are calculated on the basis of the forecast total number of investment units issued
and outstanding at the end of the fiscal period ending February 2021 (6th fiscal period) and fiscal
period ending August 2021 (7th fiscal period) of 223,400 units.
 Distribution per unit (excluding distribution in excess of earnings) is calculated based on theassumption that distribution will be in accordance with the cash distribution policy provided in XYMAXREIT’s Articles of Incorporation.
 Distribution per unit (excluding distribution in excess of earnings) may vary due to various factors,
such as fluctuation in rent revenue accompanying change in assets under management, change intenants, etc. or incurrence of unexpected repairs.
 No cash distribution in excess of earnings (distribution in excess of earnings per unit) is scheduled tobe made at this point in time.

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

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020

2. Financial Statements(1) Balance Sheet(Unit: thousand yen)
4th fiscal period(As of Feb. 29, 2020)
AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Non-current assets

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

1,005,416
1,895,489
23,90433,7463472
2,958,929

1,022,211
1,974,404
21,64232,279554
3,051,092

109,618(56,374 )
53,2449,185,575(426,230 )
8,759,344
52,656(3,264 )49,391
10,182(2,074 )8,108
24,606,271
33,476,361

109,618(69,781 )
39,837
9,309,855(539,569 )
8,770,285
54,827(4,415 )50,411
28,437(3,402 )25,03424,606,271
5,511
33,497,350

41,111
16
22,60088,847
152,574
33,628,935
36,587,864

39,05811
22,600106,862
168,532
33,665,883
36,716,975

Property, plant and equipment
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Investments and other assets
Long-term prepaid expenses
Deferred tax assets
Lease and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets-8-

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020

(Unit: thousand yen)
4th fiscal period(As of Feb. 29, 2020)
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Tenant leasehold and security deposits in trust
Total non-current liabilities
Total liabilities
Net assets
Unitholders' equity
Unitholders' capital
Surplus
Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders' equity
Total net assets
Total liabilities and net assets-9-

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

90,363814,000
2,336,000
90,777937
29,347
183,695
2,112
3,547,233

125,758
814,000
2,336,000
105,716841
34,459198,4303,501
3,618,707

8,530,000
1,252,973
9,782,973
13,330,207

8,530,000
1,258,186
9,788,186
13,406,893

22,585,746

22,585,746

671,911724,336

671,91123,257,657※１ 23,257,657
36,587,864

724,336
23,310,082※１ 23,310,082
36,716,975

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
(2) Statement of Income(Unit: thousand yen)
5th fiscal period
From: Mar. 1, 2020
To: Aug. 31, 2020

4th fiscal period
From: Sep. 1, 2019
To: Feb. 29, 2020
Operating revenue
Leasing business revenue
Other leasing business revenue
Total operating revenue
Operating expenses
Expenses related to leasing business
Asset management fees
Asset custody fees
Administrative service fees
Directors’ compensations
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Insurance payment received
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)※１ 1,240,652※１ 1,258,613※１ 102,769※１ 105,909

1,343,421

1,364,523※１ 500,341※１ 469,247

76,442
824
8,936
2,400
30,261
619,206
724,215

78,106
823
9,932
2,400
32,050592,560
771,962

14
4,647
4,662

14
14

34,09821,96056,058672,819
672,819
939
(2 )
937
671,88229
671,911- 10 -

36,745
10,19446,940725,036
725,036843
4
848
724,188147
724,336XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
(3) Statement of Unitholders’ Equity
4th fiscal period (from September 1, 2019 to February 29, 2020)(Unit: thousand yen)

Unitholders’ equity
SurplusTotal
unitholders’ equity

Total
net assets

Unitholders’ capital

Unappropriatedretained earnings(undisposed loss)

22,585,746

681,845

681,845

23,267,591

23,267,591

Dividends of surplus(681,816)(681,816)(681,816)(681,816)

Net income

671,882

671,882

671,882

671,882-(9,934)(9,934)(9,934)(9,934)*1 22,585,746

671,911

671,91123,257,657

23,257,657

Balance as of
September 1, 2019
Changes of items
during period

Total changes
during period
Balance as ofFebruary 29, 2020

Total
surplus

5th fiscal period (from March 1, 2020 to August 31, 2020)(Unit: thousand yen)

Unitholders’ equity
SurplusTotal
unitholders’ equity

Total
net assets

Unitholders’ capital

Unappropriatedretained earnings(undisposed loss)

22,585,746

671,911

671,91123,257,657

23,257,657

Dividends of surplus(671,763)(671,763)(671,763)(671,763)

Net income

724,188724,188724,188724,188-

52,42452,42452,42452,424*1 22,585,746

724,336

724,336

23,310,082

23,310,082

Balance as ofMarch 1, 2020
Changes of items
during period

Total changes
during period
Balance as ofAugust 31, 2020- 11 -

Total
surplus

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
(4) Statement of Cash Distribution
Classification

4th fiscal period
From: Sep. 1, 2019
To: Feb. 29, 2020

I.
II.

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

5th fiscal period
From: March 1, 2020
To: August 31, 2020

671,911,363 yen
671,763,800 yen[3,007 yen]
147,563 yen

724,336,212 yen
724,262,800 yen[3,242 yen]
73,412 yen

Pursuant to the cash distribution
policy stipulated in Article 35,
Paragraph 1 of XYMAX REIT’s Articles
ofIncorporation,amountofdistribution must be equal or lessthan the amount of profit and exceed
90% of XYMAX REIT’s distributableprofit that is defined by Article 67-15
of the Act on Special Measures
Concerning Taxation. Based on thispolicy, XYMAX REIT has decided to
distribute 671,763,800 yen, which is
the maximum value of the integral
multiple of the total number of units
issued and outstanding (223,400
units), not exceeding unappropriatedretained earnings.
XYMAX REIT
does not make
distribution in excess of earnings
defined by Article 35, Paragraph 2 of
XYMAX
REIT’s
Articlesof
Incorporation.

Pursuant to the cash distribution
policy stipulated in Article 35,
Paragraph 1 of XYMAX REIT’s Articles
ofIncorporation,amountofdistribution must be equal or lessthan the amount of profit and exceed
90% of XYMAX REIT’s distributableprofit that is defined by Article 67-15
of the Act on Special Measures
Concerning Taxation. Based on thispolicy, XYMAX REIT has decided to
distribute 724,262,800 yen, which is
the maximum value of the integral
multiple of the total number of units
issued and outstanding (223,400
units), not exceeding unappropriatedretained earnings.
XYMAX REIT
does not make
distribution in excess of earnings
defined by Article 35, Paragraph 2 of
XYMAX
REIT’s
Articlesof
Incorporation.

- 12 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
(5) Statement of Cash Flows(Unit: thousand yen)
4th fiscal period
From: Sep. 1, 2019
To: Feb. 29, 2020
Cash flows from operating activities
Income before income taxes
Depreciation
Interest income
Interest expenses
Decrease (increase) in operating accounts
receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts
payableIncrease (decrease) in accounts payable - other
Increase (decrease) in accrued consumption
taxes
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid
expenses
Other
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Purchase of property, plant and equipment in
trust
Repayments of tenant leasehold and security
deposits in trust
Proceeds from tenant leasehold and security
deposits in trust
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Increase in long-term loans payable
Decrease in long-term loans payable
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 13 -

5th fiscal period
From: Mar. 1, 2020
To: Aug. 31, 2020

672,819
124,610(14 )
34,098725,036
129,226(14 )
36,745

4,813

2,261

(2,392 )

1,467(6,744 )12,325(5,379 )

9,427

4,221

5,112

(2,539 )

14,734(8,149 )2,052(18,680 )
796,661
14(34,069 )(888 )(16,030 )922,34514(36,943 )(939 )

761,718

884,477(154,165 )(121,636 )(68,134 )(17,399 )

72,84522,611(149,454 )(116,424 )

814,000(1,014,000 )
2,536,000(2,336,000 )(681,479 )(681,479 )(69,215 )
2,970,121※１ 2,900,905(672,343 )(672,343 )
95,7102,900,905※１ 2,996,615

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020

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

Standards forrevenue and expense
recognition

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

3.

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

4.

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

5.

Other significant(1) Accounting for trust beneficiary rights that have real estate, etc. as trust assets
matters serving as theConcerning trust beneficiary rights that have real estate, etc. as trust assets held, allbasis for preparation of
accounts of assets and liabilities within trust assets and all accounts of revenue andthe financial
expenses from the trust assets are recognized in the relevant account item of thebalance sheet and the statement of income.
statements
Furthermore, the following material items of the trust assets recognized in therelevant account item are separately listed on the balance sheet.
(i) Cash and bank deposits in trust(ii) Buildings in trust; Structures in trust; Tools, furniture and fixtures in trust; Landin trust; Construction in progress in trust(iii) Tenant leasehold and security deposits in trust(2) Accounting for consumption tax, etc.
The accounting for consumption tax and local consumption tax is that the taxes are
excluded from transaction amounts. Furthermore, non-deductible consumption tax,
etc. on acquisition of assets is included in the cost of acquisition of each asset.
- 14 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
[Accounting standards not yet applied]・ Income Recognition Accounting Standard for Revenue Recognition (ASBJ Statement No.29, on March 31, 2020,
Accounting Standards Board of Japan)
・ Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30, on March 31,
2020, Accounting Standards Board of Japan)
・Implementation Guidance on Disclosure about Fair Value of Financial Instruments ( ASBJ Guidance No. 19, on March
31, 2020, Accounting Standards Board of Japan)* 1. Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) jointly
developed comprehensive accounting standards for revenue recognition. In May 2014, the International AccountingStandards Board and the Financial Accounting Standards Board published "Revenue from Contracts with Customers"(IFRS No. 15 in IASB and Topic606 in FASB). IFRS No. 15 has been applied from the fiscal year beginning on or afterJanuary 1, 2018, and Topic606 has been applied from the fiscal year beginning on or after December 15, 2017. In lightof these circumstances, the Comprehensive Accounting Standards for Revenue Recognition have been developed andpublished in conjunction with the Guidelines by the Corporate Accounting Standards Board. The Basic Policy for
Developing Accounting Standards for Revenue Recognition by the Corporate Accounting Standards Board is toestablish accounting standards starting from the incorporation of the Basic Principles of IFRS No. 15 from thestandpoint of comparability between financial statements, which is one of the benefits that are consistent with IFRS
No. 15, and to add alternative treatment to the extent that comparability is not impaired, if there are items that should
be considered in the practice that have been carried out in Japan.
*2. Scheduled date for application
Effective from the beginning of the fiscal year ending February 2022.
*3. Impact of adoption of these accounting standards
The impact on the financial statements of the adoption of the "Accounting Standard for Revenue Recognition" andother standards is currently being evaluated.
・ Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, on July 4, 2019 Accounting Standards
Board of Japan)
・ Accounting Standard for Financial Instruments (ASBJ Statement No. 10, on July 4, 2019 Accounting Standards
Board of Japan)
・ Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31, on July 4,
2019, Accounting Standards Board of Japan)
・ Implementation Guidance on Disclosure about Fair Value of Financial Instruments ( ASBJ Guidance No. 19, on March
31, 2020, Accounting Standards Board of Japan)* 1. Overview
IASB and FASB have established detailed guidance for fair value measurement (IFRS 13 “Fair Value Measurement” by
IFRS and Topic 820 “Fair Value Measurement” by FASB). In order to improve the comparability between theinternational accounting standard and Japanese accounting standard, ASBJ has mainly considered guidance anddisclosure on fair value of financial instruments and published the accounting standard and implementation guidance
for fair value measurement accordingly.
As the basic policy of ASBJ for the development of accounting standard for fair value measurement, ASBJ basicallyadopted all provisions of IFRS 13 by using a unified calculation method, from the point of view of improving thecomparability between the financial statements based on IFRS or U.S. GAAP and Japanese GAAP. Moreover, inconsideration of the actual practice conducted in Japan, other treatments for individual items are established within
the scope not to fail the comparability*2. Scheduled date for application
Effective from the beginning of the fiscal year ending February 2022.
*3. Impact of adoption of these accounting standards
The impact on the financial statements of the adoption of the Accounting Standard for the Calculation of Market Value,etc. is currently being evaluated.

- 15 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020

・ Accounting Standard for Disclosure of Accounting Estimates (ASBJ Statement No.31, on March 31, 2020,
Accounting Standards Board of Japan)* 1. Overview
With regard to “sources of estimation uncertainty” which are required to be disclosed under Paragraph 125 of International
Accounting Standard (“IAS”) 1 “Presentation of Financial Statements” (“IAS 1”) issued in 2003 by IASB, ASBJ was requested to
examine disclosures of such information under Japanese GAAP as useful information for users of financial statements.
Accordingly, ASBJ has developed and published the accounting standard for disclosures of accounting estimates (the “AccountingStandard”).
The basic policy of ASBJ for the development of the Accounting Standard was to provide general principles (disclosure
objectives) instead of expanding required information in the notes, and an entity shall determine specific disclosures inaccordance with its disclosure objectives. The development of this standard is based on Paragraph 125 of IAS 1.
*2. Scheduled date for application
Effective from the beginning of the fiscal year ending August 2021.
・Accounting Standard for Accounting Policy Disclosures, Accounting Changes, and Error Corrections (ASBJ Statement No.24,
on March 31, 2020,Accounting Standards Board of Japan)* 1. Overview
Following the recommendation to examine enhancements to note concerning “application of principles of accounting policies
and procedures where provisions related accounting standards are not available,” necessary amendments were made and theaccounting standard for accounting policy disclosures, accounting changes, and error corrections was published by ASBJ.
When enhancing note information concerning “application of principles of accounting policies and procedures where provisionsof related accounting standards are not available,” in order to ensure consistency with past actual practice in case the provisionsof related accounting standards are clear, the provisions in the Notes on Corporate Accounting Principles (Note 1-2) have been
followed.
*2. Scheduled date for application
Effective from the beginning of the fiscal year ending August 2021.

- 16 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020(8) Notes on the Financial Statements[Notes on the Balance Sheet]*1. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations
4th fiscal period(As of Feb. 29, 2020)

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

50,000 thousand yen

50,000 thousand yen[Notes on the Statement of Income]*1. Breakdown of operating income (loss) from real estate leasing business4th fiscal period
From: Sep. 1, 2019
To: Feb. 29, 2020
A. Operating revenue from real estate leasing business
Lease business revenue
Rent revenue
Common area maintenance revenue
Other lease business revenue
Utility reimbursement
Parking revenue
Other rental revenue

1,090,230
150,421
58,20531,023
13,540Total operating revenue from real estate leasing
B. Operating expenses from real estate leasing
Expenses related to leasing businessTax and public dues
Maintenance fees
Utility expenses
Repair expenses
Insurance premiums
Depreciation
Other expenses related to rent business(Unit: thousand yen)
5th fiscal period
From: Mar. 1, 2020
To: Aug. 31, 2020

1,240,652

1,107,412
151,201

102,769

54,50831,54819,852

1,343,421

132,755
83,54653,05471,455
3,756
124,610
31,162500,341

1,258,613

105,909
1,364,523

133,746
84,12049,901
31,6703,541
129,226
37,040469,247

Total operating expenses from real estate leasing

500,341

469,247

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

843,080

895,276- 17 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
[Notes on the Statement of Unitholders’ Equity]*1. Total number of investment units authorized and total number of investment units issued and outstanding

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

4th fiscal period
From: Sep. 1, 2019
To: Feb. 29, 2020

5th fiscal period
From: Mar. 1, 2020
To: Aug. 31, 2020

5,000,000 units

5,000,000 units

223,400 units

223,400 units[Notes on the Statement of Cash Flows]*1. Reconciliation of cash and cash equivalents at end of period to the amount of balance sheet items(Unit: thousand yen)
4th fiscal period
From: Sep. 1, 2019
To: Feb. 29, 2020

5th fiscal period
From: Mar. 1, 2020
To: Aug. 31, 2020

Cash and bank deposits
Cash and bank deposits in trust

1,005,416
1,895,489

1,022,211
1,974,404

Cash and cash equivalents

2,900,905

2,996,615[Notes on Financial Instruments]
1. Matters concerning status of financial instruments(1) Policy for handling financial instruments
XYMAX REIT shall procure funds for acquisition of assets, repayment of liabilities, etc. through issuance ofinvestment units, borrowing from financial institutions, issuance of investment corporation bonds, etc. Dueconsideration shall be given to the balance between agility in fund procurement and financial stability when
procuring funds.
Surplus funds may be invested in securities and monetary claims, but shall be invested as bank deposits as a rulein consideration of security.
Derivative transactions may be utilized only if for the purpose of hedging the risk of fluctuation in interest rates,
etc., but no speculative transactions shall be conducted.
(2) Description of financial instruments and associated risks, and risk management system
Bank deposits are those for investing XYMAX REIT’s surplus funds and are exposed to credit risk, such as failureof the depository financial institutions, but the credit risk is limited by limiting the deposit period to short term
and transacting with depository financial institutions that have high credit rating.
Loans are those for mainly the purpose of acquisition of real estate, etc., repayment of liabilities, etc. and are
exposed to the liquidity risk of not being able to procure substitute funds upon maturity, but the liquidity risk is
mitigated through diversification of fund procurement means and sources, staggering of maturities and securingliquidity on hand and the liquidity risk is also managed by preparing monthly fund management plans and othermeans. In addition, loans with floating interest rates are exposed to the risk of rise in interest rates payable, but
the impact of the rise in market interest rates on XYMAX REIT’s operations is limited by keeping the ratio ofinterest-bearing liabilities to total assets at a low level and maintaining a balance between the ratio of loans withfloating interest rates and the ratio of loans with fixed interest rates.
Derivative transactions are utilized for the purpose of hedging the risk of fluctuation in interest rates payable on
certain loans. For the hedge accounting approach, hedged items, contract amount, etc., please refer to “2. Mattersconcerning fair value, etc. of financial instruments.”
Tenant leasehold and security deposits are deposits from tenants and are exposed to liquidity risk from tenants
vacating, but the risk is limited by retaining an amount in the range that will not hinder the return of deposits as arule.

- 18 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
(3) Supplementary explanation to matters concerning fair value, etc. of financial instruments
The fair value of financial instruments is values based on market price, but may otherwise include values based onreasonable calculation when no market price is available. Variable factors are taken into account in the calculationof the concerned values. Accordingly, the concerned values may vary when different assumptions are adopted. In
addition, the contract amount, etc. of derivative transactions in “2. Matters concerning fair value, etc. of financial
instruments” do not itself represent the market risk involved in the derivative transactions.
2. Matters concerning fair value, etc. of financial instruments
The following are the carrying amount and fair value as of February 29, 2020, and the amount of difference between
these. Financial instruments for which estimation of fair value is recognized to be extremely difficult are not includedin the following table. (Please refer to Note 2 below.)(1) Cash and bank deposits(2) Cash and bank deposits in trust
Total assets(1) Short-term loans payable(2) Current portion of long-termborrowings(3) Long-term loans payable
Total liabilities

Carrying amount(thousand yen)

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

1,005,416
1,895,489

1,005,416
1,895,489-

2,900,905

2,900,905-

814,000
2,336,000
8,530,000

814,000
2,336,000
8,577,281

47,281

11,680,000

11,727,281

47,281---

Derivative transactions

The following are the carrying amount and fair value as of August 31, 2020, and the amount of difference between these.
Financial instruments for which estimation of fair value is recognized to be extremely difficult are not included in thefollowing table. (Please refer to Note 2 below.)(1) Cash and bank deposits(2) Cash and bank deposits in trust
Total assets(1) Short-term loans payable(2) Current portion of long-termborrowings(3) Long-term loans payable
Total liabilities

Carrying amount(thousand yen)

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

1,022,211
1,974,404

1,022,211
1,974,404-

2,996,615

2,996,615-

814,000
2,336,000
8,530,000

814,000
2,336,000
8,567,813

37,813

11,680,000

11,717,813

37,813---

Derivative transactions(Note 1) Method of calculation of the fair value of financial instruments and matters concerning derivative transactions
Assets(1) Cash and bank deposits; (2) Cash and bank deposits in trust
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thusstated at that book value.
Liabilities(1) Short-term loans payable
Because these are settled in a short period of time and have floating interest rates, the fair value is approximately thesame as the book value and thus stated at that book value.
(2) Current portion of long-term borrowings, (3) Long-term loans payable
Of long-term loans payable, because those with floating interest rates reflect market interest rates in a short period oftime, the fair value is thought to resemble the book value and thus stated at that book value. However, in the case oflong-term loans payable with floating interest rates that qualify for special treatment for interest rate swaps (pleaserefer to “Notes on Derivative Transactions” presented later in this document) and long-term loans payable with fixedinterest rates, the fair value is calculated based on the present value of their future cash flows discounted by the time
to maturity and rate adjusted for credit risks.
- 19 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
Derivative transactions
Please refer to “Notes on Derivative Transactions” below(Note 2) Financial instruments for which estimation of fair value is recognized to be extremely difficult
4th fiscal period
5th fiscal period(As of Feb. 29, 2020)(As of Aug. 31, 2020)
Tenant leasehold and security deposits
in trust

1,252,973 thousand yen

1,258,186 thousand yen* Tenant leasehold and security deposits in trust are not subject to disclosure of fair value, because there being no market price and, even if thelease contract period has been set, there being the possibility of contract cancellation before expiration or contract extension or renewal makecalculating the actual deposit period impossible and reasonable projection of future cash flows is thus recognized to be extremely difficult.

(Note 3) Amount of redemption of monetary claims scheduled to be due after the end of the fiscal period (February 29, 2020)(Unit: thousand yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

Due after
5 years

Cash and bank deposits

1,005,416

-

-

-

-

-

Cash and bank deposits in trust

1,895,489

-

-

-

-

-

Total

2,900,905

-

-

-

-

-

Amount of redemption of monetary claims scheduled to be due after the end of the fiscal period (August 31, 2020)(Unit: thousand yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

Due after
5 years

Cash and bank deposits

1,022,211

-

-

-

-

-

Cash and bank deposits in trust

1,974,404

-

-

-

-

-

Total

2,996,615

-

-

-

-

-

(Note 4) Amount of repayment of loans scheduled to be due after the end of the fiscal period (February 29, 2020)(Unit: thousand yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

Short-term loans payable

814,000

-

-

-

-

-

Long-term loans payable

2,336,000

3,088,000

2,646,000

2,796,000--

3,150,000

3,088,000

2,646,000

2,796,000

-

-

Total

Due after
5 years

Amount of repayment of loans scheduled to be due after the end of the fiscal period (August 31, 2020)(Unit: thousand yen)
Due within
1 yearDue after
1 to 2 years

Due after
2 to 3 years

Due after
3 to 4 years

Due after
4 to 5 years

Short-term loans payable

814,000

-

-

-

-

-

Long-term loans payable

2,336,000

3,088,000

2,646,000

2,796,000--

3,150,000

3,088,000

2,646,000

2,796,000

-

-

Total

- 20 -

Due after
5 years

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
［Notes on Derivative Transactions］
1. Derivative transactions to which hedge accounting is not applied
4th fiscal period (as of February 29, 2020)
Not applicable.
5th fiscal period (as of August 31, 2020)
Not applicable.
2. Derivative transactions to which hedge accounting is applied
4th fiscal period (as of February 29, 2020)
The following is the contract amount or the amount equivalent to the principal provided in the contract, etc. at the endof the fiscal period for each hedge accounting approach.
(Unit: thousand yen)
Hedge accounting
approach

Type, etc. of
derivative transaction

Main hedged
item

Special treatment forinterest rate swaps

Interest rate swap
transaction(receive floating; pay fixed)

Long-termloans payable

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

Fair value-(Note 2)

2,336,000(Note 1)

Contract amount, etc. is based on notional principal.

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

5th fiscal period (as of August 31, 2020)
The following is the contract amount or the amount equivalent to the principal provided in the contract, etc. at the endof the fiscal period for each hedge accounting approach.
(Unit: thousand yen)
Hedge accounting
approach

Type, etc. of
derivative transaction

Main hedged
item

Special treatment forinterest rate swaps

Interest rate swap
transaction(receive floating; pay fixed)

Long-termloans payable

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

Fair value-(Note 2)

2,336,000(Note 1)

Contract amount, etc. is based on notional principal.

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

[Notes on Tax-Effect Accounting]
1. Breakdown of main causes for occurrence of deferred tax assets and deferred tax liabilities(Unit: thousand yen)
4th fiscal period(As of Feb. 29, 2020)

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

Non-deductible accrued enterprise tax

16

11

Total

16

11

16

11

Deferred tax assets

Deferred tax assets, net- 21 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
2.

Breakdown of major components that caused any significant differences between the statutory tax rate and theeffective income tax rate after application of tax-effect accounting(Unit: %)Statutory tax rate
[Adjustments]
Distribution deductible for tax purposes
Other
Effective income tax rate after application of tax-effect accounting[Notes on Related-Party Transactions]
1. Parent company, major corporate unitholder, etc.
4th fiscal period (from September 1, 2019 to February 29, 2020)
Not applicable.
5th fiscal period (from March 1, 2020 to August 31, 2020)
Not applicable.
2. Affiliated company, etc.
4th fiscal period (from September 1, 2019 to February 29, 2020)
Not applicable.
5th fiscal period (from March 1, 2020 to August 31, 2020)
Not applicable.
3. Fellow subsidiary, etc.
4th fiscal period (from September 1, 2019 to February 29, 2020)
Not applicable.
5th fiscal period (from March 1, 2020 to August 31, 2020)
Not applicable.

- 22 -

4th fiscal period(As of Feb. 29, 2020)

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

31.51

31.46

(31.46)0.09(31.43)
0.09

0.14

0.12

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
4. Director, major individual unitholder, etc.
4th fiscal period (from September 1, 2019 to February 29, 2020)
Percentage of Description of relationship

Capital stockor
Attribute

Name ofcompany, etc.

Location

investments

business

etc.

Concurrent

Description of

in capitalorheld by (in)holding of

Description of transaction(thousandoccupationyen)

Balance

Transaction

Description of voting rights,

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

at end ofamount(thousandAccount itemyen)

period(thousandyen)(Note 2)

(Note 2)

Executive
Director of
XYMAX REIT,

Executive Director ofandRepresentative

Director

Nobuhito
Inatsuki--

Director andPresident of

XYMAX REIT, andAsset

Representative Director andmanagement

President offee

XYMAX REAL ESTATE(Note 3)-

XYMAX

Accounts
76,442

payable -83,906

other

INVESTMENT ADVISORSREAL ESTATE

Corporation

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

5th fiscal period (from March 1, 2020 to August 31, 2020)
Percentage of Description of relationship

Capital stockor
Attribute

Name ofcompany, etc.

Location

investments

business

etc.

Concurrent

Description of

in capitalorheld by (in)holding of

Description of transaction(thousandoccupationyen)

Balance

Transaction

Description of voting rights,

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

at end ofamount(thousandAccount itemyen)

period(thousandyen)(Note 2)

(Note 2)

Executive
Director of
XYMAX REIT,

Executive Director ofand

XYMAX REIT, andRepresentative

Director

Nobuhito
Inatsuki--

Director andPresident of
XYMAX
REAL ESTATE

Representative Director andPresident of-

XYMAX REAL ESTATEINVESTMENT ADVISORS

Assetmanagement
fee(Note 3)

Accounts
78,106payable -85,917other

Corporation

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

- 23 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
[Notes on Segment Information, Etc.]
1. Segment information
Segment information is omitted, because XYMAX REIT has a single segment, which is the real estate leasing business.
2. Related information
4th fiscal period (from September 1, 2019 to February 29, 2020)(1) Information by product and service
Information by product and service is omitted, because operating revenue to external customers for a single
products and services category is in excess of 90% of operating revenue on the statement of income.
(2) Information by geographic area(i) Operating revenue
Information by geographic area of operating revenue is omitted, because operating revenue to externalcustomers in Japan is in excess of 90% of operating revenue on the statement of income.
(ii) Property, plant and equipment
Information by geographic area of property, plant and equipment is omitted, because the amount of property,
plant and equipment located in Japan is in excess of 90% of the amount of property, plant and equipment on
the balance sheet.
(3) Information by major customer(Unit: thousand yen)
Name of customer

Operating revenue

New Urban Life Holdings Inc.

Not disclosed (Note)XYMAX Corporation(Note)

Related segment
161,289

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

5th fiscal period (from March 1, 2020 to August 31, 2020)(1) Information by product and service
Information by product and service is omitted, because operating revenue to external customers for a single
products and services category is in excess of 90% of operating revenue on the statement of income.
(2) Information by geographic area(i) Operating revenue
Information by geographic area of operating revenue is omitted, because operating revenue to externalcustomers in Japan is in excess of 90% of operating revenue on the statement of income.
(ii) Property, plant and equipment
Information by geographic area of property, plant and equipment is omitted, because the amount of property,
plant and equipment located in Japan is in excess of 90% of the amount of property, plant and equipment on
the balance sheet.
(3) Information by major customer(Unit: thousand yen)
Name of customer

Operating revenue

New Urban Life Holdings Inc.

Not disclosed (Note)XYMAX Corporation(Note)

Related segment
141,284

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

- 24 -

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

Carrying amount
Balance at beginning of period

4th fiscal period
From: Sep. 1, 2019
To: Feb. 29, 2020

5th fiscal period
From: Mar. 1, 2020
To: Aug. 31, 2020

33,476,361

33,491,839

33,469,409

33,476,361

6,951

15,47833,476,361

33,491,839

43,465,000

43,225,000

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

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

(Note 2)Of the amount of increase (decrease) during period for 4th fiscal period, the amount of increase is mainly attributable to capital
expenditure (131,562 thousand yen), while the amount of decrease is mainly attributable to depreciation (124,610 thousand yen).
Of the amount of increase (decrease) during period for 5th fiscal period, the amount of increase is mainly attributable to capital
expenditure (144,705 thousand yen), while the amount of decrease is mainly attributable to depreciation (129,226 thousand yen).

(Note 3)(Note 4)

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

The income (loss) concerning investment and rental properties is disclosed in “Notes on the Statement of Income.”- 25 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
[Notes on Per Unit Information]
4th fiscal period
From: Sep. 1, 2019
To: Feb. 29, 2020

5th fiscal period
From: Mar. 1, 2020
To: Aug. 31, 2020

Net assets per unit

104,107yen

104,342 yen

Net income per unit

3,007yen

3,241 yen

(Note 1)

Net income per unit for 4th fiscal period is calculated by dividing net income by the period’s daily weighted average number ofinvestment units. In addition, diluted net income per unit is not stated, because there are no diluted investment units.

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

4th fiscal period
From: Sep. 1, 2019
To: Feb. 29, 2020

5th fiscal period
From: Mar. 1, 2020
To: Aug. 31, 2020

671,882

724,188

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

Net income attributable to common investment units (thousand yen)

671,882

724,188

Average number of investment units during the period (units)

223,400

223,400

Net income (thousand yen)

[Notes on Significant Subsequent Events]
Not applicable.
[Omission of Disclosure]
Disclosure of notes on lease transactions, securities, retirement benefits, equity in net income and asset retirement
obligations is omitted since no substantial need for disclosure in the financial report is recognized.
(9) Changes in Total Number of Investment Units Issued and Outstanding
Changes in unitholders’ capital and the total number of investment units issued and outstanding from the incorporationof XYMAX REIT to the last day of the fiscal period under review are as follows:

Date

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

Description

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

Unitholders’ capital(thousand yen)
Increase(Decrease)

Remarks

Balance

Incorporation throughprivate placement
Capital increase throughpublic offering

3,000

3,000

300,000

300,000(Note 1)

209,905

212,905

21,224,544

21,524,544(Note 2)

Third-party allotment

10,495

223,400

1,061,201

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

(Note 2)

New investment units were issued through public offering at an issue price of 105,000 yen (paid-in amount of 101,115 yen) per unit
for the purpose of procuring funds for acquisition of new properties.

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

- 26 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020

3. Reference Information(1) Investment Status

Type of asset

Use

Geographic area
(Note 1)

4th fiscal period
As of Feb. 29, 2020
Total amount held(million yen)
(Note 2)

Tokyo central
5 wards
Tokyo 23
Officewards
Tokyo
economic area
Real estate inTokyo
Retailtrust
economic area
Cabinet orderHoteldesignatedcitiesCabinet order
Other designatedcitiesTotal real estate in trust
Deposits and other assets(Note 4)
Total assets(Note 1)

5th fiscal period
As of Aug. 31, 2020

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

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

14,41539.4

14,444

39.3

1,175

3.2

1,176

3.2

2,600

7.1

2,591

7.1

8,170

22.3

8,206

22.4

4,337

11.9

4,307

11.7

2,776

7.6

2,765

7.5

33,476
3,111
36,587

91.5
8.5
100.0

33,491
3,225
36,716

91.2
8.8
100.0

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

(Note 2)

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

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

(Note 4)

Deposits and other assets include Construction in progress in trust.

4th fiscal period
As of Feb. 29, 2020
Amount(million yen)
(Note 1)
Total liabilities

5th fiscal period
As of Aug. 31, 2020

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

13,33036.4

Amount(million yen)
(Note 1)
13,406

As a percentage of
total assets(%) (Note 2)
36.5

Total net assets

23,257

63.6

23,31063.5

Total assets

36,587100.0

36,716100.0(Note 1)

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

(Note 2)

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

- 27 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020

Classification(2) Investment Assets
I. Itemization of Real Estate and Other Assets in the Portfolio
The assets held by XYMAX REIT (real estate or trust beneficiary rights that have real estate as trust assets; hereinafter,
may be collectively referred to as the “portfolio assets”) as of February 29, 2020 are as follows:

Asset
no.
(Note
1)

OF-01
OF-02

Office

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

Asset name

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

RetailAppraisal value(million yen)
(Note 4)

Ownership status

2,518

3,120

Trust beneficiaryrights

12.9

4,363

5,730

Trust beneficiaryrights

5,020

15.2

5,065

7,200

Trust beneficiaryrightsFeb. 16,
2018

880

2.7

891

1,200

Trust beneficiaryrightsMinato-ku,
TokyoFeb. 16,
2018

1,550

4.7

1,604

2,140

Trust beneficiaryrights

Taito-ku,Tokyo

Feb. 16,
2018

1,150

3.5

1,176

1,620

Trust beneficiaryrightsFeb. 16,
2018

2,600

7.9

2,591

3,590

Trust beneficiaryrights--17,95054.3

18,212

24,600-

Minato-ku,
TokyoFeb. 16,
2018

2,500

7.6

Chiyoda-ku,
TokyoFeb. 16,
2018

4,250

Shinjuku-ku,
TokyoFeb. 16,2018

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

RT-01

Muza Kawasaki

Kawasaki-shi,
Kanagawa

Feb. 16,
2018

4,100

12.4

4,105

5,380

Trust beneficiaryrights

RT-02

Life Kawasaki
Miyuki Store

Kawasaki-shi,
Kanagawa

Feb. 16,
2018

790

2.4

795

975

Trust beneficiaryrights

RT-03

Vita SeisekiSakuragaoka

Tama-shi,Tokyo

Feb. 16,
2018

3,100

9.4

3,304

3,910

Trust beneficiaryrights

-

-

7,990

24.2

8,206

10,265-

Sendai-shi,
MiyagiFeb. 16,
2018

4,400

13.3

4,307

5,210

Trust beneficiaryrights and movables
incidental to hotel

-

-

4,400

13.3

4,307

5,210

-

Fukuoka-shi,
FukuokaFeb. 16,
2018

2,700

8.2

2,765

3,150

Trust beneficiaryrightsSubtotal/Average

-

-

2,700

8.2

2,765

3,150

-

Total/Average--

33,040100.033,491

43,225-

Subtotal/Average

Hotel

HT-01

Hotel Vista
SendaiSubtotal/Average

Other

Share ofportfolio(%)(Note 3)

Location

XYMAX
Hachioji-shi,
Hachioji Building Tokyo

Subtotal/Average

Acquisition
price(millionyen)(Note 2)Acquisition
date

OT-01

Renaissance 21
Chihaya(Note 1)

“Asset no.” is the code and number assigned to the portfolio assets of XYMAX REIT property by property according to each type of use. The(Note 2)

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

consumption tax.
“Share of portfolio” is the acquisition price of the portfolio asset expressed as a percentage of the total acquisition price of the portfolio assets,(Note 4)rounded to one decimal place.
Appraisal of each property is entrusted to Japan Real Estate Institute, The Tanizawa Sō gō Appraisal Co., Ltd. and Daiwa Real Estate Appraisal
Co., Ltd. “Appraisal value” is the appraisal value stated in each real estate appraisal report with August 31, 2020 as the date of value.

- 28 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
II.

Status of Leasing

Leased area(m2)
(Note 5)

Leasable area(m2)
(Note 6)

Occupancy
rate(%)(Note 7)

109

1,897.75

1,897.75

100.0

145

186

4,152.30

4,152.30

100.0

6

182

260

4,792.13

4,792.13

100.0

Apr. 30,
1991

7

51

50

1,205.29

1,205.29

100.0

XYMAX
Higashi-Azabu Building

Nov. 30,
1999

4

59

89

2,016.00

2,016.00

100.0

OF-06

XYMAX
Higashi-Ueno Building

Apr. 9,
1999

8

47

77

1,735.34

1,735.34

100.0

OF-07

XYMAX
Hachioji Building

Jan. 26,
1993

23

130

154

5,319.25

5,556.03

95.7

RT-01

Muza Kawasaki

Jan. 7,
2004

18

171

216

3,703.87

3,703.87

100.0

RT-02

Life Kawasaki Miyuki Store

Jan. 13,
1997

1

Undisclosed(Note 8)

Undisclosed(Note 8)2,677.54

2,677.54

100.0

RT-03

Vita Seiseki-Sakuragaoka

Sept 17,
1999

1

Undisclosed(Note 8)

Undisclosed(Note 8)27,610.61

27,610.61

100.0

HT-01

Hotel Vista Sendai

Mar. 14,
2016

1

141

50

7,066.25

7,066.25

100.0

OT-01

Renaissance 21 Chihaya

Oct. 19,
2006

133

108

21

9,950.87

10,287.93

96.7

-

224

1,364

1,258

72,127.20

72,701.04

99.2

Construction Number ofdatetenants(Note 1)
(Note 2)

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

Asset no.

Asset name

OF-01

XYMAX
Nishi-Shimbashi Building

Aug. 22,
2000

8

81

OF-02

XYMAX
Iwamotocho Building

Mar. 22,
2001

14

OF-03

XYMAX
Shinjuku-Gyoen Building

Feb. 28,
2001

OF-04

XYMAX
Kamiyacho Building

OF-05

Total/Average(Note 1)

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

(Note 2)

“Number of tenants” is the total of the number of tenants (the number of end-tenants if a pass-through type master lease contract has beenconcluded) pertaining to the real estate in trust based on each lease contract concluded for each real estate in trust as of August 31, 2020.

(Note 3)

“Operating revenue from leasing” is the total amount of rent revenue, common area maintenance revenue, parking revenue and other revenue(including other lease business revenue) generated from portfolio real estate during the fiscal period, rounded down to the nearest specified(Note 4)unit.
“Security deposit / Guarantee” is each property’s total amount of security deposit and guarantee specified in all lease contracts pertaining to(Note 5)the real estate in trust concluded for each real estate in trust as of August 31, 2020, rounded down to the nearest specified unit.
“Leased area” is the total leased area based on the lease contract and the building drawing, etc. attached to the lease contract for each real

(Note 6)

estate in trust as of August 31, 2020.
“Leasable area” is the total leased area based on the lease contract and the building drawing, etc. attached to the lease contract for each real

(Note 7)

estate in trust as of August 31, 2020 and the area based on the building drawing, etc. of vacant spaces.
“Occupancy rate” is the ratio of leased area to leasable area for each real estate in trust as of August 31, 2020, rounded to one decimal place.

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

- 29 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
III. Summary of Real Estate Appraisal Reports

Classification

Value based on income approach
Asset no.

Asset nameAppraiser(Note 2)

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

RetailTerminal
capitalization
rate
(%)

Discount
rate(%)(million yen)

OF-01

XYMAX
Nishi-Shimbashi Building

Tanizawa Sō gō
Appraisal

3,120

3,260

3.7

3,060

3.8

3.9

OF-02

XYMAX
Iwamotocho Building

Japan Real Estate

5,730

5,830

3.5

5,630

3.3

3.7

OF-03

XYMAX
Shinjuku-Gyoen Building

Japan Real Estate

7,200

7,320

3.5

7,070

3.3

3.7

OF-04

XYMAX
Kamiyacho Building

Tanizawa Sō gō
Appraisal

1,200

1,260

3.8

1,170

3.9

4.0

OF-05

XYMAX
Higashi-Azabu Building

Daiwa Real EstateAppraisal.

2,140

2,200

3.8

2,110

3.6

4.0

OF-06

XYMAX
Higashi-Ueno Building

Daiwa Real EstateAppraisal.

1,620

1,630

3.9

1,610

3.7

4.1

OF-07

XYMAX
Hachioji Building

Japan Real Estate

3,590

3,630

4.8

3,550

4.6

5.0

24,60025,130-24,200

-

-

5,380

5,320

4.1

5,400

4.2

4.3

975

987

4.2

970

4.0

4.4

3,910

3,780

5.0

3,960

5.1

5.2

10,265

10,087-

10,330

-

-

5,210

5,340

4.9

5,150

4.9

5.0

5,210

5,340

-

5,150

-

-

3,150

3,210

5.0

3,120

5.1

5.2

Subtotal/Average

3,150

3,210

-

3,120

-

-

Total/Average

43,22543,767-42,800--Subtotal/Average
RT-01

Muza Kawasaki

Tanizawa Sō gō
Appraisal

RT-02

Life Kawasaki Miyuki Store

Daiwa Real EstateAppraisal.

RT-03

Vita Seiseki-Sakuragaoka

Tanizawa Sō gō
Appraisal

Subtotal/Average

Hotel

HT-01

Hotel Vista Sendai

Tanizawa Sō gō
Appraisal

Subtotal/Average

Other

Value
based onDCF
methodOT-01

Renaissance 21 Chihaya

Tanizawa Sō gō
Appraisal(Note 1)The date of value for the real estate appraisal reports is August 31, 2020.

(Note 2)

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

- 30 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
IV. Summary of Engineering Reports and Seismic Risk Evaluation Reports
Engineering report

Seismic risk evaluation report

Asset no.

Asset name

Inspection
company(Note 1)

Inspection
date

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

OF-01

XYMAX
Nishi-Shimbashi Building

Sompo Risk
Management Inc.

Nov. 30,
2017-

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

6.1

OF-02

XYMAX
Iwamotocho Building

Tokio Marine &Nichido Risk
Consulting Co., Ltd.

Nov. 30,
2017-

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

5.2

OF-03

XYMAX
Shinjuku-Gyoen Building

Tokio Marine &Nichido Risk
Consulting Co., Ltd.

Nov. 30,
2017-

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

4.5

OF-04

XYMAX
Kamiyacho Building

Earth-Appraisal
Co., Ltd.

Nov. 30,
2017-

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

3.8

OF-05

XYMAX
Higashi-Azabu Building

Earth-Appraisal
Co., Ltd.

Nov. 30,
2017-

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

3.4

OF-06

XYMAX
Higashi-Ueno Building

Earth-Appraisal
Co., Ltd.

Nov. 30,
2017-

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

5.1

OF-07

XYMAX
Hachioji Building

Sompo Risk
Management Inc.

Nov. 30,
2017-

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

3.9

RT-01

Muza Kawasaki

Earth-Appraisal
Co., Ltd.

Nov. 30,
2017-

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

1.2

RT-02

Life Kawasaki Miyuki Store

Daiwa Real EstateAppraisal Co., Ltd.

Nov. 30,
2017-

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

7.0

RT-03

Vita Seiseki-Sakuragaoka

Daiwa Real EstateAppraisal Co., Ltd.

Nov. 30,
2017-

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

2.1

HT-01

Hotel Vista Sendai

Daiwa Real EstateAppraisal Co., Ltd.

Nov. 30,
2017-

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

1.7

OT-01

Renaissance 21 Chihaya

Tokio Marine &Nichido Risk
Consulting Co., Ltd.

Nov. 30,
2017-

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

1.7-

245,716

2.1

Total

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

Inspection PML value
date
(%)

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

(Note 2)
(Note 3)

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

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

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

- 31 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
V. Capital Expenditures(A) Schedule of Capital Expenditures
Of capital expenditures associated with renovation work, etc. currently planned for assets held by XYMAX REIT as ofthe end of the fiscal period under review, the following are the major estimated amounts. The estimated construction
costs below may include the portion separately booked as expenses in accounting.
Estimated construction costs(thousand yen)
Name ofreal estate, etc.

XYMAX
Hachioji
Building

Vita SeisekiSakuragaoka

Amount ofpayment
duringperiodTotalamountalready
paid

Location

PurposeScheduled period

Hachioji-shi
Tokyo

Exterior wall
repair work

From: August 2021
To: August 2021

84,586--

Tama-shi,Tokyo

Overhaul & partsexchange ofParking A(located on
basement floor)

From: July 2021
To: July 2021

45,549--Total
amount(B) Capital Expenditures during the Fiscal Period
The construction work, etc. falling under the category of capital expenditures conducted in the fiscal period underreview for assets held by XYMAX REIT as of the end of the fiscal period under review amounted to 144,705 thousand
yen. Combined with repair expenses booked as expenses in the fiscal period under review (31,670 thousand yen),construction work, etc. totaling 176,376 thousand yen was conducted. Construction work, etc. that fall under the
category of significant capital expenditure conducted in the fiscal period under review for assets held by XYMAXREIT are as follows.

Name ofreal estate, etc.

Vita SeisekiSakuragaoka

Location

PurposeConstruction period

Tama-shi,Tokyo

Overhaul & partsexchange of Parking A(located on basement
floor)

From: July 2020
To: July 2020

- 32 -

Construction
costs(thousand yen)

45,095XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
VI. Property Overview and Earnings/Expenses of PropertiesXYMAX Nishi‐Shimbashi Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2020
to August 31, 2020

Acquisition Price

2,500 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

75,810Location (residential address)

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

Other lease businessrevenue

5,433

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

81,244Lot Number

Land

Building Coverage Ratio

80%

Floor-Area Ratio

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

6,949Land Use District

Commercial district

Maintenance fees

5,314

Site Area

402.53 m2

Utility expenses

3,933

Type of ownership

Ownership

Repair expenses

503

Construction Date

August 22, 2000

Insurance premiums

62

Structure/Number of Floors

Reinforced concrete structure withflat roof 9F

Depreciation

Total Floor Area

2,517.50 m2

ArchitectRUI SEKKEISHITSU Co., Ltd.

Builder

Fujiki Komuten Co., Ltd.

(3) NOI

63,555

Type of Ownership

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

60,928

Building

ML Company-

PM Company

XYMAX ALPHA Corporation

2,626

Other expenses related
to leasing business

926

Total operating expenses
from real estate leasing

20,315

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

- 33 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
XYMAX Iwamotocho Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2020
to August 31, 2020

Acquisition Price

4,250 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

129,611

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

Other lease businessrevenue

16,163

Total operating revenue
from real estate leasing

145,775

Location (residential address)

Land

Building

Lot Number

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

Building Coverage Ratio

80%

Floor-Area Ratio

800%、600%

Tax and public dues

13,419Land Use District

Commercial district

Maintenance fees

10,424Site Area

864.83 m2

Utility expenses

7,914

Type of ownership

Ownership

Repair expenses

2,755(2) Operating expenses from real estate leasing

Construction Date

March 22, 2001

Insurance premiums

Structure/Number of Floors

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

Depreciation

11,976

Total Floor Area

6,261.06 m2

Other expenses related
to lasing business

1,665

Architect

Nikken Sekkei Ltd.

Total operating expenses
from real estate leasing

48,378

Builder

Kumagai-Sumitomo Construction
Consortium

Type of Ownership

Ownership

ML Company

Godo Kaisha ML2

PM Company

XYMAX ALPHA Corporation

Notes:
None- 34 -

221(3) NOI

109,373(4) Operating income (loss)
from real estate leasing

97,397

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
XYMAX Shinjuku‐Gyoen Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2020
to August 31, 2020

Acquisition Price

5,020 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

170,0221-1-11 Shinjuku, Shinjuku-ku, Tokyo

Other lease businessrevenue

12,045

Total operating revenue
from real estate leasing

182,067

Location (residential address)Land

Lot Number

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

Building Coverage Ratio

80%(2) Operating expenses from real estate leasing

Floor-Area Ratio

700%

Tax and public dues

14,466

Land Use District

Commercial district

Maintenance fees

11,709Site Area

839.09 m2

Utility expenses

7,921

Type of ownership

Ownership

Repair expenses

3,802Construction Date

February 28, 2001

Insurance premiums
Depreciation

10,359Structure/Number of Floors

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

Total Floor Area

6,084.32 m2

Other expenses related
to leasing business

1,188

Architect

U Associates Co., Ltd.

Total operating expenses
from real estate leasing

49,660

Builder

Kajima-Oriental Construction
Consortium

Type of Ownership

Ownership

Building

ML Company

Godo Kaisha ML2

PM Company

XYMAX ALPHA Corporation

Notes:
None- 35 -

213(3) NOI

142,766(4) Operating income (loss)
from real estate leasing

132,407

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
XYMAX Kamiyacho Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2020
to August 31, 2020

Acquisition Price

880 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

36,4245-12-13 Toranomon, Minato-ku, Tokyo

Other lease businessrevenue

14,774Lot Number

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

Total operating revenue
from real estate leasing

51,199Building Coverage Ratio

80%

Floor-Area Ratio

600%

Tax and public duesLand Use District

Commercial district

Maintenance fees

4,468

Site Area

228.83m

Utility expenses

2,087

Type of ownership

Ownership

Repair expenses

9,658

Construction Date

April 30, 1991

Insurance premiums

Structure/Number of Floors

Steel-construction with flat roof 8F

Depreciation

1,316

Total Floor Area

1,356.51m2

Other expenses related
to leasing business

8,917

Architect

HASEKO Corporation

Total operating expenses
from real estate leasing

31,172

Builder

HASEKO Corporation(3) NOI

21,343

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

20,026

Location (residential address)

Land

Building

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

2

ML Company

XYMAX ALPHA Corporation

PM Company

XYMAX ALPHA Corporation

Notes:
None- 36 -

4,677

46

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
XYMAX Higashi‐Azabu Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2020
to August 31, 2020

Acquisition Price

1,550 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

52,964

Location (residential address)

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

Other lease businessrevenue

6,110

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

59,075

Lot Number

Land

Building Coverage Ratio

80%

Floor-Area Ratio

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

Commercial district

Maintenance fees

5,912

Site Area

365.05 m

2

Utility expenses

2,738

Type of ownership

Ownership

Repair expenses

5,451

6,640

Construction Date

November 30, 1999

Insurance premiums

Structure/Number of Floors

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

Depreciation

5,086

Total Floor Area

2,570.13 m2

Other expenses related
to leasing business

1,078

ArchitectTokyo Branch of TOZAI KENCHIKUSERVICE CO., LTD.

Total operating expenses
from real estate leasing

26,991

Builder

Kanto Branch of Maeda Corporation(3) NOI

37,171

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

32,084

Building

Type of Ownership
ML Company

XYMAX ALPHA Corporation

PM Company

XYMAX ALPHA Corporation

Notes:
None- 37 -

82

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
XYMAX Higashi‐Ueno Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2020
to August 31, 2020

Acquisition Price

1,150 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

41,528Location (residential address)

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

Other lease businessrevenue

5,564

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

Total operating revenue
from real estate leasing

47,093

Lot Number

Land

Building Coverage Ratio

80%

Floor-Area Ratio

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

3,684Land Use District

Commercial district

Maintenance fees

4,214

Site Area

368.84 m2

Utility expenses

2,857

Type of ownership

Ownership

Repair expenses

1,778

Construction Date

April 9, 1999

Insurance premiums

Structure/Number of Floors

Steel-framed reinforced concrete
structure with flat roof 8F

Depreciation

3,053

Total Floor Area

1,942.54 m2

Other expenses related
to leasing business

2,392

Architect

Architect 5 Partnership

Total operating expenses
from real estate leasing

18,042

BuilderTokyo Branch of Kajima Corporation(3) NOI

32,104

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

29,050

Building

Type of Ownership
ML Company

XYMAX ALPHA Corporation

PM Company

XYMAX ALPHA Corporation

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

- 38 -

60

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
XYMAX Hachioji Building

Category

OfficeOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2020
to August 31, 2020

Acquisition Price

2,600 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

Lease business revenue

114,052

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

Other lease businessrevenue

16,175

Total operating revenue
from real estate leasing

130,227

Lot Number

Land

Building Coverage Ratio

80%

Floor-Area Ratio

600%

Tax and public dues

8,383

Land Use District

Commercial district

Maintenance fees

15,628Site Area

1,220.58 m2

Utility expenses

7,415

Ownership

Repair expenses

1,072

Type of ownership

Building

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

Construction Date

January 26, 1993

Insurance premiums
Depreciation

9,185

Structure/Number of Floors

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

Total Floor Area

7,404.81 m2

Other expenses related
to leasing business

2,288

Architect

NIHON SEKKEI Inc.

Total operating expenses
from real estate leasing

44,250

Builder

MATSUMURA-GUMI Corporation(3) NOI

95,163

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

85,977

Type of Ownership
ML Company

Godo Kaisha ML1

PM Company

XYMAX ALPHA Corporation

Notes:
None- 39 -

276

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
Muza Kawasaki

Category

RetailOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2020
to August 31, 2020

Acquisition Price

4,100 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Sumitomo Mitsui Trust Bank, Ltd.

Lease business revenue

153,120

Location (residential address)

1310 Omiyacho, Saiwai-ku, Kawasakishi, Kanagawa

Other lease businessrevenue

18,3701310 Omiyacho, Saiwai-ku, Kawasakishi, Kanagawa

Total operating revenue
from real estate leasing

171,491

Lot Number

Land

Building

Building Coverage Ratio

80%

Floor-Area Ratio

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

10,586

Land Use District

Commercial district

Maintenance fees

14,885Site Area

742.44 m2

Utility expenses

13,436

Type of ownership

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

Repair expenses

323

Construction Date

January 7, 2004

Insurance premiums

192

Depreciation

Structure/Number of Floors

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

Total Floor Area

3,671.09 m2

Architect

Kanagawa Area Branch of Urban
Development Corporation

Builder

Shimizu-Taisei-Ando Construction
Consortium

Type of Ownership

Sectional ownership

ML Company

XYMAX ALPHA Corporation

PM Company

XYMAX ALPHA Corporation

Notes:
None- 40 -

17,368Other expenses related
to leasing business529

Total operating expenses
from real estate leasing

57,323(3) NOI

131,536(4) Operating income (loss)
from real estate leasing

114,167XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
Life Kawasaki Miyuki Store

Category

RetailOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2020
to August 31, 2020

Acquisition Price

790 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

Lease business revenue

Undisclosed

Location (residential address)

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

Other lease businessrevenue

Undisclosed

Lot Number

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

Undisclosed

Building Coverage Ratio

80%、60%Floor-Area Ratio

200%

Tax and public dues

Undisclosed

Land Use District

Neighborhood commercial district,
category 1 residential districts

Maintenance fees

Undisclosed

Site Area

1,879.15 m2

Utility expenses

Undisclosed

Type of ownership

Ownership

Repair expenses

Undisclosed

Construction Date

January 13, 1997

Insurance premiums

Undisclosed

Structure/Number of Floors

Steel-construction with flat roof 2F

Depreciation

Total Floor Area

2,596.80 m2

Other expenses related
to leasing business

Undisclosed

ArchitectTokyo First-class Architect Office,Takenaka Corporation

Total operating expenses
from real estate leasing

Undisclosed

Builder

Yokohama Branch of Takenaka
Corporation

Type of Ownership

OwnershipLand

Building(2) Operating expenses from real estate leasing

ML Company-

PM Company

XYMAX ALPHA Corporation

1,547(3) NOI

21,788(4) Operating income (loss)
from real estate leasing

20,240Notes:
Under the lease contract with the tenant, in the case the lessor intends to transfer the ownership right of the property to a third party
through sale, etc., the lessor is to notify such to the lessee in advance to allow the lessee to preferentially discuss acquisition if the lessee
wishes.

- 41 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
Vita Seiseki‐Sakuragaoka

Category

RetailOverview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2020
to August 31, 2020

Acquisition Price

3,100 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

Location (residential address)
Lot Number

Land

Building

Lease business revenue

Undisclosed

4-72 Sekido, Tama-shi, Tokyo

Other lease businessrevenue

Undisclosed

4-72 Sekido, Tama-shi, Tokyo

Total operating revenue
from real estate leasing

Undisclosed

Building Coverage Ratio

80%

Floor-Area Ratio

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

Undisclosed

Land Use District

Commercial

Maintenance fees

Undisclosed

Site Area

4,467.51 m2

Utility expenses

Undisclosed

Type of ownership

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

Repair expenses

Undisclosed

Construction Date

September 17, 1999

Insurance premiums

Undisclosed

Depreciation

Structure/Number of Floors

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

Total Floor Area

27,161.00 m2

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

Builder

Toda-Tokyu-ICHIKEN Construction
Consortium(3) NOI

171,705(4) Operating income (loss)
from real estate leasing

156,164

Type of Ownership

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

ML Company-

PM Company

XYMAX ALPHA Corporation

15,541Other expenses related
to leasing business

Undisclosed

Total operating expenses
from real estate leasing

Undisclosed

Notes:As to the part of the building (house numbers 72-3 and 72-7), an agreement on the following matters has been concluded with the co-ownersof the sections.
· Non-division covenant for five years from the conclusion date (renewed automatically unless any one of the co-owners claims not to renew
at least six months prior to the expiration date)· When transferring or dispositioning by other means the co-ownership interest, the party must notify other co-owners (hereinafter, the“Counterparties”) of such at least one month prior to the transfer or disposition in writing. The Counterparties shall have the preferential
negotiation right to purchase the said co-ownership interest within 20 business days after the notice, and such purchase shall be effective after
two months of a written notice stating exercise of right-to-purchase (hereinafter, the “Notice of Exercising Right-to-Purchase”) reaching theparty wishing to transfer the co-ownership interest. In such a case, the price shall be the value on an as-is basis, and if the parties do not reachan agreement on the price, the price shall be the real estate appraisal value as of the date of the Notice of Exercising Right-to-Purchase delivered
to the party wishing to transfer the co-ownership interest.

- 42 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
Hotel Vista Sendai

Category

Hotel

Overview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2020
to August 31, 2020

Acquisition Price

4,400 million yen

Number ofoperating days

184 days

Type of Specified Asset

Trust beneficiary rights and movables
property incidental to hotel

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

Lease business revenue

Location (residential address)

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

Other lease businessrevenue-

Lot Number

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

141,284

Building Coverage Ratio

80%

Floor-Area Ratio

500%

Tax and public dues

11,095Land Use District

Commercial district

Maintenance fees

1,800

Site Area

1,461.36 m2

Utility expenses-

Type of ownership

Ownership (partial surface right)

Repair expenses

450

Construction Date

March 14, 2016

Insurance premiums

217

Structure/Number of Floors

Steel-construction with flat roof 12F

Depreciation

31,407

Total Floor Area

6,977.47 m2

Other expenses related
to leasing business

6,647

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

Total operating expenses
from real estate leasing

51,617

Builder

Tohoku Branch of Maeda Corporation(3) NOI

121,074

Type of Ownership

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

89,667Land

Building

ML Company

XYMAX Corporation

PM Company

XYMAX Corporation(1) Operating expenses from real estate leasing
141,284(2) Operating expenses from real estate leasing

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

- 43 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended August 2020
Renaissance 21 Chihaya

Category

Other (residential)

Overview of the Specified Asset

Earnings and Expenses (Unit: thousand yen)

Acquisition Date

February 16, 2018

Management
PeriodFrom March 1, 2020
to August 31, 2020

Acquisition Price

2,700 million yen

Number ofoperating days

184 days

Type of Specified Asset

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

Trustee

Mitsubishi UFJ Trust and Banking
Corporation

Lease business revenue

100,614

Location (residential address)

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

Other lease businessrevenue

7,707

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

108,322

Lot Number

Land

Building

Building Coverage Ratio

80%

Floor-Area Ratio

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

Commercial district

Maintenance fees

7,960

Site Area

2,644.63 m

Utility expenses

1,595

Type of ownership

Ownership

Repair expenses

2,429

2

8,635

Construction Date

October 19, 2006

Insurance premiums

Structure/Number of Floors

Steel-framed reinforced concrete
structure with flat roof 14F

Depreciation

19,755

Total Floor Area

10,856.15 m2

Other expenses related
to leasing business

10,484

Architect

Tei Architectural Design OfficeTotal operating expenses
from real estate leasing

51,157

Builder

Kyushu Branch of Nishimatsu
Construction Co., Ltd.

Type of Ownership

Ownership

ML Company

Miyoshi Asset Management Co., Ltd.

PM Company

Miyoshi Asset Management Co., Ltd.

Notes:
None- 44 -

296(3) NOI

76,920(4) Operating income (loss)
from real estate leasing

57,164