Presentation Materials
for the 7th Fiscal Period Ended August 2021
Securities Code: 3488

Basic Principles and Characteristics of XYMAX REITXYMAX REIT accurately assesses the value of individual properties to maximize unitholder value. We fully utilize ourstrength in Management, Assessment, and Sourcing based on the knowledge and know‐how of the XYMAX Group, which
has Japan’s No.1 track record in property management.
Terms

Definition

Estimated value atthe end of period

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

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

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

Appraisal LTV

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

Net asset per unit

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

NAV per unit

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

Acquisition price

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

Contents

I.

Overview of Financial Results& Earnings Forecasts

II. Investment Status and Growth Strategy

III. ESG

IV. Appendix

Notes
 Unless otherwise specified, amounts are rounded to the nearest unit and ratios arerounded off to the first decimal place.
 The following abbreviations of property names are used.
XYMAX Nishi‐Shimbashi Building : Nishi‐Shimbashi
XYMAX Iwamotocho Building
XYMAX Shinjuku‐Gyoen Building : Shinjuku‐Gyoen
XYMAX Kamiyacho Building
XYMAX Higashi‐Azabu Building : Higashi‐Azabu
XYMAX Higashi‐Ueno Building
XYMAX Hachioji Building: Hachioji
XYMAX Mita Building
Muza Kawasaki: MuzaLife Kawasaki Miyuki Store
Vita Seiseki‐Sakuragaoka: Seiseki‐Sakuragaoka Life Fukuizumi StoreThe Park House Totsuka Front (the Retail Portions of 1st and 2nd Floors)
Hotel Vista Sendai: Sendai
Renaissance 21 Chihaya: Iwamotocho: Kamiyacho: Higashi‐Ueno: Mita: Kawasaki Miyuki: Fukuizumi: Totsuka: Chihaya2Overview of Financial Results& Earnings Forecasts

Overview of Financial Results & Earnings Forecasts

Management Highlights
Amid the continuing impact of COVID‐19 and the repeated declarations of states of emergency, our financial results
exceeded the forecasts at the beginning of the FP.

Overview offinancial results

 Operating revenue: 1,305 million yen, operating income: 701 million yen, net income: 647 million yen
 Distribution per unit: 2,900 yen (‐0.4% compared with the previous FP, +4.0% compared with theforecasts at the beginning of the FP)
 NAV per unit: 145,749 yen (+0.2% compared with the previous FP)

Internal growth The average economic occupancy rate of offices (excluding Mita) during the period reached 95.1%, anincrease of +0.4% compared with the forecasts at the beginning of the FP. There were no additionalrequests to reduce rents, which caused a fluctuation in business performance. We also succeeded toincrease the rent for some office tenants.
 The hotels were severely impacted by the fourth and fifth waves of COVID‐19, something that had notbeen anticipated at the beginning of the FP. This resulted in a GOP of 32% compared with the same
period in 2019 (‐13.7% compared with the forecasts at the beginning of the FP).
 The occupancy of retail properties and residential properties was stable, and this supported profits.

External growth Acquired Mita and Totsuka during this period. (Total acquisition price for the two properties: 1,208 million
yen; appraisal NOI yield: 5.2%; appraisal NOI yield after depreciation: 4.4%)
 An improvement effect of approx. 70 yen in DPU is expected during the stabilization period.
 The ZXY, a satellite office operated by XYMAX Corporation is a tenant of Totsuka.

Financial strategy
ESG Additional funds were borrowed to acquire Mita and Totsuka.
 Remaining borrowing capacity (up to 50% of LTV based on total assets) is approx. 10.8 billion yen, andcertain level of remaining capacity for financing is being maintained.
 From the 8th FP, we decided to switch electricity sources to electricity generated with 100% renewableenergy sources at several properties.
4Overview of Financial Results & Earnings Forecasts

Overview of Financial Results (1)Operating revenue was 1,305 million yen, up 1.1% from the latest forecast; profit was 647 million yen, up 4.0%.
Unit: million yen

Forecast
for the 7th FP(A)

Operatingrevenue

1,291Actual results
for the 7th FP
(B)

1,305

Difference(B)‐(A)+13

Operatingexpenses

614

604

-10

Operatingincome

676

701

+24

Ordinary income

Net income
Distribution perunit (yen)

623
622
2,788

648
647
2,900

+24
+24
+112

Unit: million yen

Main factors for difference(+: Incremental factors, – : Decremental
factors)

Convertto DPU

Operating revenue
Increase in operating revenue+14.1+63 yenthrough the acquisition of Mita andTotsuka 3/24︔主なポイント以外の箇所を着⼿下さい。(内容的Downturn な変更はありませんが。)
in variable rent of hotel‐8.6‐38 yenUpswing in residential rent income+4.8+21 yenUpswing in existing officeproperties'(excluding Mita) rent
income+4.4+19 yenDownturn in leasing costs due to
steady re‐leasing and lower than
expected vacancy rate

+14.4

+64 yenIncreasing in various cost of sales
through the acquisition of Mita andTotsuka‐7.7‐34 yenIncreasing in SG&A costs throughthe acquisition of Mita and Totsuka‐2.5‐11 yenOperating Expenses* Days of 7th FP: 184 days

5Overview of Financial Results & Earnings Forecasts

Overview of the Financial Results (2) — Occupancy rates by Asset Type┃Portfolio┃┃Financial Status┃

Asset size

15 properties
35,313 million yen

Interest‐bearing liabilities
at the end of period

14,050 million yen

Estimated value at theend of period

45,887 million yen

LTV based on total assets

36.1%

9,976million yen

Net asset per unit

101,100 yen

NAV per unit

145,749 yen

Unrealized gain

(Unrealized gain ratio 27.8%)

NOI yield*

5.5%(Appraisal LTV 28.7%)*annualized actual NOI for the 7th FP ÷ total acquisition price┃Contract Occupancy Rates by Asset Type┃
(%)

100
100%

100%

100%
99.1%

99.3%
99.3%

98
98%

99.0%

98.8%

98.9%

100%

100% 100% 100%

100%

99.2%

99.5% 99.5%

98.8%

98.9%

98.9%

98.7%

100%

96.7%

95.1%
94.3%

Entire portofolio

99.0%

98.9%
96.6%

96%
96

100%

97.9%

Office96.4%(exc. obligated residences)

94.4%
94.3%

94%
94

Office96.5%

Retail and Hotel

92.7%

92%
92
90%
90

Others (Residential)
91.0%

As of the end of 1st FP As of the end of 2nd FP As of the end of 3rd FP As of the end of 4th FP As of the end of 5th FP As of the end of 6th FP As of the end of 7th FP

6

Overview of Financial Results & Earnings Forecasts

Financial Status as of the End of the 7th FP
XYMAX REIT establishes a financial base that puts emphasis on stability and soundness and provides flexibility in financing.
┃Borrowing status┃
Constructing a wide range of and stable lender formation mainly withmega banks and local banks that have a financial and business
relationship with sponsors
Balance ofinterest‐bearing debts

Average remaining period

14.05 billion yen┃Lender formation┃

Number offinancial
institutions

Average interest rate

13 companies

0.581%

1 years 9months

Borrowing amount

14.05

0.636% (excl. bridge loan)

billion yen

Fixed interest rate ratio

Long‐term loan ratio

81.0%

LTV based on total assets

36.1%

87.4%

Maturity ladder and average interest rate foreach repayment period

4,000

Acquisition funds for new properties

0.796%

3,000

0.531%

3,588

0.645%

1,000

0

MUFG Bank

12.1%

Nishi‐Nippon CB

7.1%

Fukuoka Bank

7.1%

Resona Bank

6.3%

Shinsei Bank

4.1%

Hiroshima Bank

3.6%

Aozora Bank

3.6%

Higo Bank

2.8%

Chiba Bank

2.1%

Fukoku‐life

2.1%

Mizuho Trust & Banking

0.7%

The borrowing is expected to become a long‐term loan
together with the existing loans at the refinancing at theend of January 2022

0.634%

2,000

SMBC

Borrowed as a short‐term bridge loan until the end ofJanuary 2022

0.480%
1,270

31.5%
16.7%

Overview of borrowings for two new
acquisitions(million yen)
5,000

Mizuho Bank

End of 8th FP(FP ending
February 2022)

End of 9th FP(FP ending
August 2022)

End of 10th FP(FP ending
February 2023)

End of 11th FP(FP ending
August 2023)

End of 12th FP(FP ending
February 2024)

End of 13th FP(FP ending
August 2024)

End of 14th FP(FP ending
February 2025)

End of 15th FP(FP ending
August 2025)

End of 16th FP(FP ending
February 2026)

Amount1.27 billion yen

Borrowing period

7 months

Interest rate

1‐month Japanese Yen TIBOR+0.15%

Average interest rate during the period

0.235%

7

Overview of Financial Results & Earnings Forecasts

Earnings Forecast for the 8th FP ending February 2022
Unit: million yen

Actual results
for the 7th FP(A)

Operatingrevenue
Operatingexpenses

Initialforecast for
the 8th FP

Forecast
for the 8thFP(B)Difference(B)‐(A)

1,305
604

1,321
615

1,383
643

+78
+39

701

706

740

+38

Ordinary
income

648

641

665

+17

Distribution
per unit(yen)

Main factors for differences in the result for the 7th FP and
forecasts for the 8th FP(+: Incremental factors, –: Decremental factors)

Convert to
DPU

Operating revenue

OperatingincomeNet income

Unit: million yen

647
2,900

640
2,867

664
2,977

+17
+77

Increase in hotel rent (revive of fixed rent)+65.5+293 yen

Increase in operating revenue due to full‐year
operations of Mita and Totsuka+29.1+130 yen

Absence of lump sum income‐18.0‐80 yenIncrease in utility revenues of existing
properties+5.7+25 yenIncrease in cost of sales due to full‐year
operations of Mita and Totsuka‐12.5‐56 yenNormalization in repair costs for existing
properties (excluding Mita and Totsuka)‐8.4‐37 yenIncrease in utility costs of existing properties(excluding Mita and Totsuka)‐7.4‐33 yenIncrease in SG&A costs of Mita and Totsuka‐5.5‐24 yen‐19.4‐86 yenOperating expenses

Non‐operating revenues and expenses

Days

184

181

181

‐3

Increase in borrowing related expenses, etc.

8Overview of Financial Results & Earnings Forecasts

Earnings Forecast for the 9th FP ending August 2022
Unit: million yen

Operatingrevenue

Forecast for
the 8th FP(A)Forecast forthe 9th FP(B)

1,383

1,387

Operatingexpenses

643

Operatingincome740

Ordinary
incomeNet income

665
664

Distribution
per unit
(yen)

2,977

Days

181

654
732
674
673
3,013

Difference(B)‐(A)+3

Unit: million yen

Main factors for differences in the forecast for
the 8th FP and forecasts for the 9th FP(+: Incremental factors, – : Decremental factors)

Convert to
DPU

Operating revenue
Increase in office rent income+13.1+59 yenDecrease in retail rent income‐6.3‐28 yen+7.8+35 yenIncrease in tax and public dueson existing properties(excluding Mita and Totsuka)‐3.5‐15 yenPosting of tax and public duesfor Mita and Totsuka‐3.1‐14 yen+18.2+81 yen

+10
‐7
+8
+8

Operating expenses
Normalization in leasing costs

Increase in
tax andpublic dues

+36
Non‐operating revenues and expenses

184

+3

Decrease in borrowing related expenses, etc.

9

Investment Status and Growth Strategy

Investment Status and Growth Strategy

Recognition of the Current Situation and Key Point for the Future
Recognition of the Current Situation
OfficeOffice Vacancy rates are rising and also newly contracted rents are falling, andthe downtrend in the office tenant market is continuing.

 Pursue the maximization of income by Leveraging the sponsor group’s
network to identify trends in the market and tenants at an early stage,
and by determining the market value of individual asset and status oftenants.

 The workplace diversification is accelerating, however, the dominanceof the city center as the main office location has not changed.
 In conjunction with changes in “how real estate is used,” office tenants
are moving into previously untapped locations and properties.

RetailInternal
Growth Although varying by industry and business size, generally, facilities
located in suburbs of a large city and selling daily necessities are
generating strong sales.

Hotel With the improvement in the vaccination rate, the movement ofpeople in Japan will gradually return to normal. However, the recovery
in the number of guests from overseas is expected to take more time.
 While the accommodation market will begin to go back to normal
levels, the recovery of GOP to pre‐COVID‐19 levels is expected to takemore time.
 Intensified competition for properties continues in the buying/sellingmarket.

External
GrowthFinancial
Strategy
ESG

Key Point for the Future Reduce the risk of existing tenants leaving through careful management,
including reinforcing relationships with tenants and infection
countermeasures.

Retail While almost all tenants have fixed rent contracts, we closely monitor
sales trends to grasp the business circumstances of each tenant.
 In conjunction with the changes in how retail properties are used, we
intend to maintain and improve asset value in leasing by considering awide array of industries beyond the existing industries.

Hotel Closely monitor trends for RevPAR and GOP while also practicing effective
cost management.
 Maintain a certain level of yields, accurately determine the profit
stability and growth potential of properties, and pursue expansion ofproperty “pipelines” and the asset size.

 It is important to capture the trends in real estate demands that affect“how real estate is used” and to make investment decisions thatconsider the stability and potential of revenues of the targeted
property.

 Also consider asset replacements that return unrealized gain tounitholders, while maintaining an asset size.

 No major changes in financial institutions’ attitude for financing

 Continue to deepen lender relationships and search for new banks

 ESG‐related movements, including decarbonization initiatives, arebeing accelerated.

 Continue to invest in real estate that reduces the environmental burden.

 Cooperate with sponsor groups and gain exclusive sales information.

11

Investment Status and Growth Strategy

Status of Office Tenant – Tennant Replacement & Contract Renewal –┃Status of tenant replacement and contract renewal┃ ・Eight office properties (exc. obligated residences)
39.4

(%)
40

15.7

12.4

0.4
(tsubo)
2,000
1,500
1,400
1,000
900

7.5

4.2

0

‐1.5

‐20

‐18.4

1,408.96

98.98

97.59

Highlights for the 7th FP

1,107.07✔5 new leases(1 space with higher rent and 3
spaces with lower rent)✔19 renewals(5 spaces with higher rent and 2
spaces with lower rent)

76.23

468.62231.58467.1446.08

344.48326.64170.81

24.84

‐500
(600)

3rd FP

4th FP

5th FP

6th FP

7th FP

8th FP (forecast)

For renewal (tsubo)

1,902.87

1,269.34

1,767.28

1,394.35

1,903.66

1,330.34

For new lease(tsubo)169.50128.83

97.59

25.94

271.88424.76┃Floor area scheduled for contract renewal┃
・Eight office properties (exc. obligated residences)⇒Total percentage of change:‐0.9%Monthly rent decreased by 334
thousand yen

1,784.58(16 spaces)
1,330.34(20 spaces)

1,000

Forecast for the 8th FP✔7 new leases(2 spaces with higher rent and 4
spaces with lower rent)✔20 renewals(All spaces are with no rentchange)⇒Total percentage of change:‐5.0%Monthly rent decreased by 1,139
thousand yen(Incl. reduction in the unit rent of a
newly contracted space due to achange of use from retail to office)1 Rent gap: over 10％
2 Rent gap: over 0％ less than 10%
3 Rent gap: over -10％ less than 0%
4 Rent gap: -10％ or less（tsubo）
2,000
1,500

20
0

144.66

500
400
0
(100)

10.6

0

‐0.9

■ Replacements with higher rent
■ Renewals with higher rent
■ Replacements with lower rent
■ Renewals with lower rent

% change of rent uponrenewal*1% change of rent upon
replacement*2

1,283.93(19 spaces)

Rent gap*3 at the end of 7th FP*4 Assumed new unit rent: 16,146 yen/tsubo*4 Unit rent for existing contracts: 16,222

yen/tsubo
Rent gap vs. assumed new rent
Eight office properties: 0.4%
*5Seven office properties: ‐0.8%)

Status of Renewal for the 8th FP

579.89(12 spaces)

Over 70% in area with rent gaps of 10% ormore have been renewed with same rents

500
0

8th FP

9th FP

10th FP

11th FP*1: % change of rent upon renewal: (rent that includes CAM revenue after renewal – rent that includes CAM revenue before renewal) ÷ rent that includes CAM revenue before renewal*2: % change of rent upon replacement: (rent that includes CAM revenue after tenant replacement – rent that includes CAM revenue before tenant replacement) ÷ rent that includes CAM revenue before tenant replacement*3: Rent gap (contractual unit rent – assumed new unit rent) ÷ assumed new unit rent *4: The various unit rents: using a monthly unit rent that includes common area maintenance revenue, to which is applied a weighted average inproportion to the leased floor area at the eight office properties *5: Seven office properties: office properties excluding Hachioji

12Investment Status and Growth Strategy

Status of Office Tenant – Occupancy Rate & Tenant Replacement and Surrendered –┃Status of occupancy rate & tenant replacement and surrendered┃
Economic occupancy
rate for the 9th FP(forecast)

・Eight office properties (exc. obligated residences)
99.5

100.0

100.0

98.9
96.4

（tsubo）

500

99.1

99.5

2.7%

200
100

169.50

0
‐100
‐200
‐300

92.6

93.7

400
300

94.3

98.9

‐144.66
‐2.3%

98.8
6.5%

4.2%
2.1%

1.6%

128.8397.59‐98.98‐169.22

‐1.6%

‐2.7%

271.880.4%

424.76

25.94

8

8%

4

4%

0.0%
‐427.57

Average

97%

Contract occupancy
rate at the end of FP
Economic occupancy
rate at the end of FP

0‐177.30‐2.8%（％）

Occupancy rate*1

0%

Surrender rate*2■Area contract start-4 ‐4%■Area contract end

‐400

‐6.6%

‐500

Vacancy area at the endof FP (tsubo)-8 ‐8%

3rd FP

4th FP

5th FP

6th FP

7th FP

8th FP (forecast)

29.9

0.0

71.6

223.0

372.7

0.0

┃Average of free rent duration┃・Eight office properties (exc. obligated residences)(month)

4
3
2

3.5

1
0

3rd FP

2.2

2.0

2.0

4th FP

5th FP

6th FP*1: Occupancy rate: area contract start ÷ Total leasable floor area
*2: Surrender rate: area contract end ÷ Total leasable floor area

2.8
7th FP

3.6
8th FP(forecast)13

Investment Status and Growth Strategy

Trends in Workplaces and Advantages of XYMAX REIT
┃Current workplace trends┃


COVID‐19 has accelerated the diversification of the workplace  Future in‐office work plans vary by company size and industry

Companies that are diversifying their workplaces are requiring different function to be furnished for each type of workplace.
Workplace

Main offices
Non‐main officesFeature of workplace

Function of a workplace

A base as a “place of gathering” for employees A base for resolving the issues of remote working (difficulties incommunication and organizational management)• A convenient location for employees to gather (city center)• Safe building (seismic resilience and security)• A hygienically clean and well‐maintained building

A base as a space to work during idle time as well as a place to work near home
 A base contributing to the effective use of time and the employees’ well‐being• A location close to destinations to visit and employees’ homes• High security performance• Internet environment (safe Wi‐Fi environment)

In conjunction with the changes in “how real estate is used,” office tenants are moving into properties in previously untapped locations and new types ofassets.
Example: satellite office tenants are moving into retail facilities in front of stations in Tokyo metropolitan suburbs
Corporate workplace strategies are changing, and it is necessary to continually gather information on “how real estate is used.”┃Advantages of XYMAX REIT┃ Knowledge andknow‐how of
XYMAX GroupCapturing trends on “how real estate is used” for uses and locations through the real estate management business
Capturing trends in corporate office strategies through the ZXY businessResearch and studies on real estate by XYMAX REAL ESTATE INSTITUTE Corporation

 Central office

Locations near stations in city centers and a reasonable rent unit price suitable for main offices and meeting places
Confirmation of buildings’ capacity by using the “strength of assessment”
Maintenance and management of buildings by using the “strength of management”

Competitive edge when finding new tenants by using the strengths of “assessment” and “management” (Hachioji)
Capturing needs of workplaces close to homes

 Suburban offices
 Suburban retailproperties→ A satellite base operated by a certain company moved into Hachioji and ZXY, the satellite office service, moved into Totsuka

14

Investment Status and the Growth Strategy

Current Status of the Operator and Lease Conditions of Hotel Vista Sendai┃Current status of the operator┃

 Civil rehabilitation proceedings will be completed in October 2021 and a new sponsor is expected to become the 100% shareholder of the operator.
 Sendai is one of the better‐performing properties of the operator and will continue being a focal point in the operator’s business management.
→ On‐time rent payment including fixed rent from September, 2021 has continued.

┃Lease conditions┃
Demand foraccommodation

Rent type

Fixed rent

Variable rent－－

240 million yen/year(Annual GOP – 252 million yen) × α%

I‐1

None

GOP for the current month × β%*None

GOP for the current month × γ%*

Lease conditions up to October 2020
Nov. 2020 ‐ Feb. 2021
Lease conditions
from November
2020

Mar. 2021 - Aug. 2021

Slump
periodSep. 2021 ‐ Aug. 2022

Recovery
periodAfter Sep. 2022

Stableperiod

I‐2

Revival of
fixed rentII

20 million yen/monthIII

20.5 million yen/month

(GOP for the current month – 21 million
yen) × α%**Recovering the
portion of
reductions or
waivers over thelong term*0 yen, if the GOP for the month is negative**0 yen, If the results of the calculation are negative<Illustrative rent calculation image>
6th FP

7th FP

2020
Sept.

8th FP

9th FP

2021
Oct.

Conditions
prior to revisions

Nov.

Dec.

Jan.

Rent typeI‐1(GOP for the past 1 year /12 – 21.5 million yen) × α%**10th FP

2022
Feb.

Mar.

Apr.

May

June

July

Aug.

Oct.

Nov.

Dec.

Jan.

Feb.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Oct.

Nov.

Dec.

Jan.

Nov.

Dec.

Jan.

Dec.

Jan.

Rent typeI‐2

To mitigate seasonal changes, GOP, the basis forcalculating variable rent, was used as the moving
average of past 12 months.

2023

Sept.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Rent type II

Jan.

Nov.

Dec.

Jan.

Feb.

Rent type III

Sep.
Nov.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

15

Investment Status and the Growth Strategy

Actual Results of Hotel Vista Sendai
(%)

(yen)

Occupancy rate
ADR
RevPAR

10,000State ofemergency
declaration

8,488

7,382 7,213 7,455 7,351

8,000

GoTo Travel
Campaign

100(after Tokyo addedfor departures
and arrivals)

7,044 7,494

7,090

80%
6,441

6,004 6,233 6,207 6,359
6,000

100%

GoTo Travel
Campaign

5,751

5,339 5,384

5,352

3,538

3,388

2,414

6,393 6,253

6,438

5,711

60%

3,185

3,570

40%
40

2,083

1,481

2,000

60

4,130

3,608

3,322

6,044 5,970

80

4,666

4,203

4,199
4,000

6,473

6,892

20%
20

678 583
72.5%

0

2020
Jan.

85.0%

Feb.

44.6%

Mar.

9.2%

Apr.

8.2%

May

24.7%

June

38.7%

July

58.1%

Aug.

66.0%

Sept.

75.8%

Oct.

71.8%

Nov.

65.3%

36.2%

52.3%

68.3%

59.3%

49.8%

57.1%

82.9%

72.5%

Dec.

2021
Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

0%
0

[RevPAR compared to the same month (%)]
vs. 2019

-2.0

-4.8

-54.8 -92.0 -92.9 -81.3 -69.6 -62.1 -49.1 -34.5 -36.1 -42.6 -61.9 -55.3 -43.8 -58.2 -61.3 -54.9 -28.2 -51.0

vs. 2020
GOP
index*

100.0 149.3 24.4

-65.5 -59.5 -21.9

10.1

48.0

64.8 110.7 102.4 74.2

-61.1 -53.0 124.3 521.5 546.1 241.0 236.5 129.3
-20.3

27.0

78.0

47.8

39.3

56.0 118.4 72.0

*Calculated using the January 2020 GOP as 100[Operating KPIs latest of 3 fiscal period and forecasted rent for the 8th and 9th FP]
5th FP

6th FP

7th FP

ADR

6,587 yen

6,693 yen

6,364 yenOccupancy rate

30.7%

61.3%

65.1%

RevPAR

2,024 yen

4,104 yen

4,140 yen

Based on recovery trends in accommodation
demands, the forecasts assume the receipt of
fixed rent only in the 8th and 9th FP
16

Investment Status and the Growth Strategy

Portfolio Status: Retail Properties of XYMAX REIT
The impact of COVID‐19 has been minimal, and we have been enjoying stable rent revenue.

 All retail properties owned by XYMAX REIT are located in the suburbs of large metropolitan areas, where robust business conditions are
expected for tenants.
 Most of the tenants to the master lease properties are daily use type of business with steady sales.
 Although the tenants of multi‐tenant retail property (Muza) include restaurant tenants and service tenants, sales are kept at a certain level.
 In conjunction with changes in how retail facilities are used, we intend to maintain and improve asset value in leasing by considering a widearray of industries beyond the existing industries.

Termination date of lease term for multi‐tenant retail properties (based on contract area)┃Properties of XYMAX REIT┃

Leased area (tsubo) Average remaining leasing period: 6.1 years*

700
600
500
400
300
200
100
0

Multi‐tenant
property
Master leaseproperties

39%

61%

658.97412.60188.657.80

０.00

Termination 8th FP
date

1

9th FP

2

10th FP3

113.01
11th FP4

0.00
12th FP

5

13th FP6

After
14th7FP

Breakdown of properties by type (Based on rent revenue)

Trends for tenants ofretail propertiesTermination notice received : 2 spaces (terminate at 9th FP): One of the spaces is in the process of promisingnegotiations.
Rent reduction, deferment of payment, bankrupt tenants, delayed rent payments: None

*Average remaining leasing period: Remaining leasing period of each multi‐tenant retail property (Muza, Totsuka) × leased floor area of each tenants ÷ total leased floor area17

Investment Status and the Growth Strategy

Newly Property Acquisition┃ Overview ┃ The Park House Totsuka Front (the Retail Portions of 1st and 2nd Floors) XYMAX Mita Building

Small office building expected to generaterobust demand

Suburban station‐front retail facility
where ZXY is a tenant








Located in a hub of office buildings where
many major companies have their head
offices
Superior access to major business areas andfull office‐support services, including
neighboring restaurants
In addition to renovating the interior, rental
conditions that are attractive to up‐and‐coming companies, such as reduced costs
when moving in and out, have been adopted.



Located in front of Totsuka Station with aresidential area in the backTenants include a clinic, a pharmacy, andZXY, that target neighboring residents andare minimally affected by COVID‐19,
including decreases in revenues.
XYMAX Group had been involved from thedevelopment phase of this property

Acquisition price668 million yen

Acquisition price

540 million yen

Appraisal value

727 million yen

Appraisal value

622 million yen

Appraisal NOI yield

5.0%

Appraisal NOI yield

5.5%

Location

5‐13‐11, Shiba, Minato‐ku, Tokyo

Location

4018‐1, Totsuka‐cho, Totuska‐ku, Yokohama‐shi,Kanagawa

AccessMita Station on the Toei Mita Line 5 minutes on footJR Tamachi Station 7 minutes on footAccess

JR Totsuka Station 3 minutes on footTotsuka Station on the Shiei Subway Blue Line 3 minutes
on foot

Leasable area

741.41㎡

Leasable area

861.60㎡

Occupancy rate
(as of September 2021)

89.7%

Occupancy rate
(as of September 2021)

100.0%

18

Investment Status and the Growth Strategy

External Growth – Continue to implement measures for external growth–
XYMAX REIT will continue to focus on asset type and consider acquisition of properties in accordance with the portfolio strategy.
We will continue our sourcing activities to determine the fundamental value of the target properties, with an awareness of the balance
between DPU growth and financial soundness.

┃Acquisition policy ┃ We intend to build new property pipelines by selecting prime properties fromthe rich property information gained from the sponsor network and carefully
examining them at the Asset Management Company.

 In addition to growing our asset size through acquisitions withborrowings that capitalize on low LTV levels, we are considering
asset replacements that return unrealized gain to unitholders, while
maintaining asset size. We intend to improve the quality ourproperty portfolio as well as increase asset size.
LTV level vs. total assets as of the end of the 7th FP: 36.1%

5th FP

6th FP

7th FP

Number of pieces of informationacquired from sponsor group

LTV levelvs. total assets

1,008

899

807

40%

Number of properties underconsideration by XYMAX REIT

26

18

20

45%

property pipeline size of five
┃Properties under consideration┃Total
properties: Over 12.0 billion yen

50%

Location

Asset type

Possible loan amount
Approx.
2.5 billion yen
Approx.
6.3 billion yen
Approx.
10.8 billion yen

SourceFocused point

Appraisal LTV
32.3%
36.9%
41.7%

23 wards of Tokyo

OfficeCRE client

There is a rent gap between the current rent and market rent for some tenants, therefore,
internal growth is expected at the time of lease contract renewals and tenant replacements
This property is located in residential areas, where a broad range of tenant needs are
expected

Local ordinance‐designatedCity

OfficeProperty managementbusiness relation

A rare new office building in the city where the property is located and occupied by ahighly credit‐worthy tenant as the anchor tenant

CRE client of the sponsor
group

A retail development project in a location that is highly desired by CRE clients for
opening stores
Tenants are expected to include daily necessities selling tenants with strong sales

Private fund managed by
the sponsor group

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

CRE client

A stable long‐term lease contract has been concluded with a highly credit‐worthy
tenant, for which a certain revenue is expectedCore regional city

Core regional city

23 wards of Tokyo

Retail properties(planned)

Hotel(specialized in stay)

Others(Corporate dormitory)(100% leased to a single tenant)

19

ESG

ESG

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

┃ CASBEE－Real estate┃┃ BELS ┃Assessment Rank

Rank A(Very good)
Hotel Vista
SendaiXYMAX Nishi‐
Shimbashi Building

XYMAX
Higashi‐Azabu Building

XYMAX
Iwamotocho Building

XYMAX Higashi‐
Ueno Building

XYMAX
Higashi‐Azabu Building

XYMAX
Shinjuku‐Gyoen Building

Assessment
Rank

Assessment
Rank

★★★

★★

XYMAX
Hachioji Building
has obtained┃Acquisition status┃ * Higashi‐Azabu
CASBEE and BELS certification.

Number of Acquisition ofEnvironmental Certification

7 properties

Acquisition rate(based on total floor area)

39.9%
21

ESG

ESG Initiatives Environment (2)Initiatives for Reducing Environmental Burden┃ Adoption of electricity from 100% renewable energy sources┃

Implemented properties: Shinjuku‐Gyoen, Kamiyacho, Higashi‐Azabu, Higashi‐UenoWe will use electricity from 100% renewable energy sources at four office properties from November 2021.
By using non‐fossil fuel energy certificates with tracking information, we will effectively achieve zero CO2 emissions.
A feed‐in tariff (FIT) system for electricity, etc.
Renewable energy
certificate with tracking

Biomass

Wind power

Solar power

Hydroelectric power

Electricity supplier┃Improvement of environmental performance through building/facility renovation┃
Implementing renovation work for air
conditioning systematically in tenant
exclusive area
Implemented properties:
Iwamotocho,
Shinjuku‐Gyoen,
Higashi‐Azabu,
Higashi‐UenoImplementing LED replacement
systematically in common area andexclusive spaces
Implemented properties:
Nishi‐Shimbashi,
Iwamotocho,
Shinjuku‐Gyoen,
Kamiyacho, Higashi‐Azabu,
Higashi‐UenoInstalling hydropower sensor faucets tosave water and energy usage
Installed properties:
Nishi‐Shimbashi,
Shinjuku‐Gyoen,
Higashi‐Azabu,
Higashi‐Ueno

22

ESG

ESG Initiatives Social (1)Initiatives for a Sustainable Society
Signing of Principles for Financial Action for the 21stCentury by Ministry of the Environment XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation, AssetManagement Company of XYMAX REIT, has endorsed the ideas of
the Principles and became a signatory on December 27, 2013.

Initiatives for Tenants and Local Communities┃Introduction of emergency storage boxes in elevators┃┃Introduction of Disaster‐Relief Vending Machines┃ Emergency storage boxes have been
installed in elevators in six properties
as confinement measures at
earthquake disaster.

 Introduced disaster‐relief
vending machines to provide
drinks for free (by remotecontrol) during emergencies.

Installed properties: Iwamotocho,
Shinjuku‐Gyoen, Kamiyacho, Higashi‐Azabu,
Higashi‐Ueno, HachiojiInstalled properties: Higashi‐Azabu,
Higashi‐Ueno, Hachioji┃ Operation to prevent the spread of COVID‐19 ┃ Application of virus disinfectants
Installed properties: Nishi‐shimbashi,
Iwamotocho, Shinjuku‐Gyoen, Kamiyacho,
Higashi‐Azabu, Higashi‐Ueno, Hachioji

 Introducing alcohol‐based
disinfectants and foot pedal stands
in common areas

 Replacing conventional toilet faucets with
automatic faucets
 Thoroughly implementing COVID‐19
countermeasures among the management andcleaning staff (wearing face masks, washinghands, disinfecting, gargling, etc.)
23

ESG

ESG Initiatives Social (2)Initiatives of asset management┃Qualification support system ┃┃Respect for diversity┃

 Asset Management Company introduced a system to provide incentives for
employees who acquire certain qualifications.
 Status of qualification (incl. those unregistered) by employees of Asset Management
Company (as of October 1, 2021)

 More than half of our executives and employees are female, and female
employees are succeeding in a wide range of fields, regardless of being in thefront, middle, or back office.

• Licensed Real Estate Broker• ARES Certified Master• Certified Building Administrator

Number of executives and employees(excluding dispatched employees)

2495┃Flextime system and diversification of working places┃ Asset Management Company introduced a flextime system to support a more flexible
workstyle in line with the degree of activity.
 With the option of working at the head office and working at home, we are able to balanceboth business continuity and infection control.

Maternity or
child care leave

Male

Female(Percentage
of female)

Total

April 2019

15

23

60.5%

38

1

April 2020

13

23

63.9%

36

1

October 2021

16

18

52.9%

34

0

 Under a declared state of emergency, the percentage of employees coming to the head
office is 30% or less.

ESG initiatives at Sponsor Group Support for corporate workstyle reforms by offering satellite office services throughsuch services as ZXY
 Contribution to the local communities through real estate management services
 Nurturing real estate business personnel through Karakusa Fudosanjuku (real estatebusiness seminar ) at Sponsor Group Holding lectures at Real Estate Sustainability & Energy‐Efficiency Diffusion Review
Committee, Ministry of Land, Infrastructure, Transport and Tourism and at Land
Economy and Construction Industry Bureau, Ministry of Land, Infrastructure, Transport
and Tourism

 Serving as lecturer of ARES Real Estate Securitization Master training course Promoting diversification of working places and hours
 Granting of scholarships to Yangon Technological University students
 Accepting technical trainees from overseas
 Supporting for the development of young athletes Contributing to ARES Real Estate Securitization Journal

24

ESG

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

Examination bycompliance officer

Proposal by division(s) inchargeUnapproved

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

Rejected

Rejected

Deliberation and resolution by REIT
Compliance Committee *Rejected

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

Deliberation andresolution by Board of
Directors’ Meeting
Relevant
approval
procedures

Matters other than the above, etc.

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

Revising the Asset Management Fee Structure

Gain on dispositions at the end of each period(after deduction of loss on dispositions) x 15%(0 yen, if the amount is negative)

Sales price x 1.0%

 We changed the asset management fee structure from the 7th FP. By
strengthening the link with investment performance, compared with theprevious structure, the link between unitholders’ profits and profits forthe asset management company was reinforced.

[Composition of management fees during the period]• Management fees during the period: Increase the ratio of the portion
linked with investment performance

6th FP• Disposition fee: Changed to a system where fees are earned only when
gains on disposition are generated.

Total asset‐linked portion

71.3%

7th FP

Investment Ratio in XYMAX REIT by Sponsor

Investment performance‐linked portion

28.7%

49.6%
0

10

20

50.4%
30

40

50

60

70

80
(million yen)

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

5.6 % (as of August 31, 2021)

25

APPENDIXAPPENDIX

Characteristics of XYMAX REITXYMAX REIT realize the full potential of owned properties and maximize the unitholdersʼ value through relevant
portfolio management utilizing expertise and know-how accumulated in and by the XYMAX Group, the sponsor

Characteristics of XYMAX Group Japan’s prominent real estate management record
 Real estate management record︓1,009 buildings・Gross floor area Approx. 5.3 million tsubo
 Entrustment records by J‐REIT investment corporation other than XYMAX REIT︓29 companies・192 properties Human resources ︓2,061 people engaged in real estate management, 61 people in leasing, and 80 people in CRE related business Real estate management utilizing accumulated various data & development of new businesses applying expertise and know‐how Data of Real Estate Management ︓Contracted rent data 39,779 buildings/128,747 cases,
Asking rent data 56,237 buildings/32,798 cases, Construction work data 154,621 cases
 Membership satellite office business ZXY and expanding own hotel brand, karaksa hotels.

 Track record in real estate sales and brokerage utilizing huge customer base
 Relationship with real estate owners︓ approximately 330 companies
 Track record in property sales and brokerage︓345 buildings, approximately 580 billion yen(accumulated total from April 1, 2010 to March 31, 2021)

Utilizing XYMAX Groupʼs expertise and know-how as “3 Strength”

Assessment

Management

Sourcing

27

APPENDIX

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

“3 strengths” of XYMAX REIT

Assessment

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

Management

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

Sourcing

 Utilizing the real estate buying and selling needs of the customer base of the CRE service
provided by the sponsor group, we will create property acquisition opportunities in
exclusive transactions.
28

APPENDIX

Balance Sheet and Statement of Income
Balance Sheet
AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes refund receivable
Other

Non‐current assets
Property, plant and equipment
Buildings
Structures
Machinery and equipment
Tools, furniture and fixtures
Land
Buildings in trust
Structures in trust
Tools, furniture and fixtures in trust

Land in trust
Construction in progress in trust
Investments and other assets
Long‐term prepaid expenses
Deferred tax assets
Lease and guarantee deposits
Other

Total assets
Liabilities
Current liabilities
Operating accounts payable
Short‐term loans payable
Current portion of long‐term borrowings

Accounts payable ‐ other
Income taxes payable
Accrued consumption taxes
Advances received
Other
Non‐current liabilities
Long‐term loans payable
Tenant lease hold and security
deposits
Tenant leasehold and security
deposits in trust

Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus

Total net assets
Total liabilities and net assets

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

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

2,923,484
986,598
1,881,240
17,73637,043865
34,712,741
34,515,588
27,234
8,866,751
67,95423,86525,529,781
197,153
46,44313
22,600128,095
37,636,226

2,959,327
973,089
1,904,372
28,27533,683
19,212694
36,012,109
35,912,484
307,707
1,802
10,592
22,637229,752
9,110,368
66,79322,243
26,138,580
2,006
99,62536,432
13
22,60040,57938,971,437

3,966,804
100,018
500,000
3,088,000
94,359891
7,973
166,214
9,347
10,433,265
9,192,000

5,244,446
81,2671,770,000
3,088,000
96,729878
202,993
4,577
10,493,292
9,192,000-

33,3491,241,265

1,267,943

14,400,070

15,737,739

23,236,156
22,585,746
650,410
23,236,156

23,233,698
22,585,746
647,952
23,233,698

37,636,226

38,971,437

Statement of Income
Operating revenue
Leasing business revenue
Other leasing business revenue

6th fiscal period(As of Feb. 28, 2021)(thousand yen)
1,293,375

7th fiscal period(As of Aug. 31, 2021)(thousand yen)
1,305,465

1,200,153

1,193,065

93,222

112,400

Operating expenses

576,894604,122

Expenses related to leasing business
Asset management fees
Asset custody fees
Administrative service fees
Directors’ compensations
Other operating expenses

456,31276,213

481,704
76,297

2,400

2,400

30,49932,768Operating income

716,481

701,343

490

154

14

13

-

129

-

11

Non‐operating income
Interest income
Settlement income on property tax,
etc.
Interest on refund
Insurance payment received
Non‐operating expenses
Interest expenses
Borrowing related expenses

Ordinary income
Income before income taxes
Total income taxes
Income taxes ‐ current
Income taxes ‐ deferred

Net income
Retained earnings brought forward
Unappropriated retained earnings(undisposed loss)

826

876

10,641

10,074475-

65,74452,75737,894

41,49827,850

11,258651,227

648,740

651,227

648,740

891

881

893

880

-2

0

650,336

647,8597392

650,410

647,952

29

APPENDIX

Portfolio List (1)Asset no.

OF‐01

OF‐02

OF‐03

OF‐04

OF‐05

OF‐06

OF‐07

OF‐08

Asset type

OfficeOfficeOfficeOfficeOfficeOfficeOfficeOfficeProperty nameXYMAX Nishi‐Shimbashi
Building

XYMAX Iwamotocho
Building

XYMAX Shinjuku‐Gyoen
Building

XYMAX Kamiyacho
Building

XYMAX Higashi‐Azabu
Building

XYMAX Higashi‐Ueno
Building

XYMAX Hachioji
Building

XYMAX Mita
Building

Location

Minato‐ku, Tokyo

Chiyoda‐ku, Tokyo

Shinjuku‐ku, Tokyo

Minato‐ku, Tokyo

Minato‐ku, Tokyo

Taito‐ku, Tokyo

Hachioji‐shi, Tokyo

Minato‐ku, Tokyo

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

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

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

5 minutes on foot from
Akabanebashi station on
the Toei Subway OedoLine

3 minutes on foot fromNaka‐Okachimachi station
Tokyo metro Hibiya line
4 minutes on foot from JR
Okachimachi station, andother

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

5 minutes on foot from
Mita station on the Toei
Subway Mita line, andother

5 minutes on foot from JR
Hachioji station

7 minutes on foot fromJR Tamachi station

3 minutes on foot from
Uchisaiwaicho station on
the Toei Subway Mita line

Access6 minutes on foot from
Shimbashi station on the
JR Tokyo metro Ginza line ,and other

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

Acquisition
price(million yen)

2,500

4,250

5,020

880

1,550

1,150

2,600

668

Land area

402.53㎡

864.83㎡

839.09㎡

228.83㎡

365.05㎡

368.84㎡

1,220.58㎡

137.02㎡

Total floor area

2,517.50㎡

6,261.06㎡

6,084.32㎡

1,356.51㎡

2,570.13㎡

1,942.54㎡

7,404.81㎡

799.78㎡

Leasable area

1,897.92㎡

4,152.40㎡

4,792.21㎡

1,205.27㎡

2,015.97㎡

1,735.29㎡

5,556.05㎡

741.41㎡

Completion

2000

2001

2001

1991

1999

1999

1993

1991

Structure/Numberof Floors

Reinforced concrete
structure with flat roof 9F

Steel‐framed reinforced
concrete structure withflat roof B1F/9F

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

Steel‐construction withflat roof 8F

Steel‐framed reinforced
concrete structure withflat roof B1F/9F

Steel‐framed reinforced
concrete structure withflat roof 8F

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

Steel‐construction withflat roof 10F

Number of tenant(As of the end of 7th
FP)

8

13

6

7

5

8

23

8

Occupancy rate
(As of the end of 7thFP)

100.0%

92.1%

100.0%

100.0%

87.5%

100.0%

91.0%

79.4%

30

APPENDIX

Portfolio List (2)Asset no.

RT‐01

RT‐02

RT‐03

RT‐04

RT‐05

HT‐01

OT‐01

Asset type

RetailRetailRetailRetailRetailHotel

Other (Residential)

Property nameMuza Kawasaki

Life Kawasaki Miyuki Store

Vita Seiseki‐Sakuragaoka

Life Fukuizumi StoreThe Park House Totsuka
Front (the Retail Portionsof 1st and 2nd Floors)

Hotel Vista Sendai

Renaissance 21 Chihaya

Location

Kawasaki‐shi, Kanagawa

Kawasaki‐shi, Kanagawa

Tama‐shi, Tokyo

Sakai‐shi, Osaka

Yokohama‐shi, Kanagawa

Sendai‐shi, Miyagi

Fukuoka‐shi, Fukuoka

JR Kawasaki station
Directly Connected

Keio Electric Railway Keio Line
Seiseki Sakuragaoka Station
Directly Connected

12 minutes on foot from Otori
station on the JR Hanwa line

4 minutes on foot from JR
Sendai station

Access15 minutes on foot from JR
Kashimada station and YakostationAcquisition price(million yen)

4,100

790

3,100

Land area

10,669.34㎡ *1

1,879.15㎡

Total floor area

108,955.90㎡ *1

Leasable area
Completion

3 minutes on foot from
JR and Yokohama shiei
subway BlueLine Totsuka
station1 minute on foot from
Miyagino Dori station on the
Sendai City Subway Tozai Line

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

1,065

540

4,400

2,700

9,003.26㎡ *1

6,225.21㎡

1,595.49㎡*1

1,461.36㎡ *2

2,644.63㎡

2,596.80㎡

62,849.56㎡ *1

3,358.26㎡

12,236.50㎡*1

6,977.47㎡

10,856.15㎡

3,703.88㎡

2,677.54㎡

27,610.61㎡

3,309.29㎡

861.60㎡

7,066.25㎡

10,290.99㎡

2004

1997

1999

1996

2018

2016

2006

Structure/Number of Floors

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

Steel‐construction with flat
roof 2F

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

Steel‐construction with flat
roof 2F

Reinforced concrete structurewith flat roof B1F/14F

Steel‐construction with flat
roof 12F

Steel‐framed reinforced
concrete structure with flat
roof 14F

Number of tenant(As of the end of 7th
FP)

18

1

1

1

5

1

138

Occupancy rate
(As of the end of 7thFP)

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

96.5%*1: Both land area and total floor area above represent entire land area and total floor area, not the actual area owned by XYMAX REIT
*2: 1,461.36㎡ includes surface rights of 524.21 ㎡.

31

APPENDIX

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

RT‐01 Muza Kawasaki

RT‐02 Life Kawasaki Miyuki Store

RT‐03 Vita Seiseki‐Sakuragaoka┃ Osaka Area ┃RT‐05 The Park House
Totsuka Front (the RetailPortions of 1st and 2nd
Floors)

RT‐04 Life Fukuizumi Store┃ Fukuoka Area

┃ Sendai Area ┃OT‐01 Renaissance 21 Chihaya

OfficeRetailHotel

Others（Residential）

HT‐01 Hotel Vista Sendai

32

APPENDIX

Investment Ratio and Advantage by Asset Type（As of the end of 7th FP）■Office

12.5%

52.7%

■Retail■Hotel■Others■Main asset

27.2%

23.1%
42.1%

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

Office■10,000 yen ‐ 15,000 yen■15,000 yen ‐ 20,000 yen■20,000 yen ‐*As of the end of August 2021
45.3%**Excl. rents of stores, parking lots,etc.
***Unit rent incl. CAM

Retailand prefectures of Kanagawa,

93.6%

Saitama, and Chiba.

Average engaged period■Less than 3 minutes■3〜5 minutes

25.9%

3.6%

*The breakdown is based on
the acquisition price andaverage shows the simple
average

Average

3.1
min.

23.0%

Average
51.0%

9.0

years
32.3%

80.7%

■less than 5 years■5 years or more andless than 10 years■10 years or more
*The breakdown is basedon the acquisition price andaverage shows the simple
average100%*1 Retail facilities for which the majority of customer can easily come on foot or by bicycle in a short time.

33.2%

Average

17.0
years

49.8%

■Less than 10 years■10 years or more andless than 15 years■15 years or more andless than 20 years■20 years or more
*The breakdown is based on theacquisition price and averageshows the simple average

13.4%

Percentage of specialized in Stay

Average engagement period
16.7%

shows the simple average

28.5%

74.1%

■ Station‐front■Other■Neighborhood *1*The breakdown is based on
the acquisition price*The breakdown is based on theacquisition price and average

Minutes from nearest station

Average unit rent 16,146yen/tsubo

Composition of retail properties

years***Tokyo (excl. 23 wards of Tokyo),

76.９%

19.3%

18.7%

28.9%

■Less than 5 yrs.
■5〜10 yrs.
■10〜15 yrs.
■15〜20 yrs.
■Over 20 yrs.
■Over 5 yrs.

Shibuya wards within Tokyo.

3.3%

92.４%

20.5%

12.9

**Chiyoda, Chuo, Minato, Shinjuku and

31.5%

6.4%

Average*The breakdown is based on
the acquisition price*The breakdown is basedon the acquisition price

31.6%

17.5%

■Specialized in Stay

Hotel

7.6%

Percentage by year engaged by XYMAX Group

Percentage by geographic area

Percentage by asset type

*The breakdown is basedon the acquisition

100.0%

33

APPENDIX

Characteristic of occupied tenants┃Office tenant diversification <based on rent revenue> (excluding obligated residences, 67 office tenants)┃
Based on business type

Leased area based top tenants ratio
Wholesale

37.4%

Manufacturing

20.4%

Other survice

12.7%

IT

12.5%

Medical and Welfare

6.0%

Lawyers and Accountants

5.2%

Construction business

2.8%

Retail2.0%

Restaurants

1.0%

Average tenant lease period of
offices owned by XYMAX REIT

Top 10

5.24%

11th ‐ 30th

15.11%All tenants:

31th ‐ 50th

11 years, 5 months
Top ten tenants by leased area:
14 years, 1 month

51th ‐ 67th

50.35%
29.29％

Average tenant lease period
of office buildings
9.6 years** Source: “Analysis of Lease Periods of Office Tenants in the 23 Wards ofTokyo (2018)” by XYMAX Real Estate Institute┃Average Occupancy Rate of office┃100%

100.0%

98%
98.1%

96%

99.5%

99.2%

98.3%

98.3%
96.6%

97.7%

96.1%

96.7%

97.9%
98.7%

97.5%

100.0%
98.1%

98.8% 99.0%

97.6%
96.5%

95.9%

IPO

95.3%

94%

94.6%

92%
90%

97.6%
96.6%

95.8%

99.1%

98.9%

93.1%

93.0%

The Global
Financial Crisis

Occupancy rate of 7 properties owned by XYMAX REIT

91.6%

Average occupancy rate of J‐REIT offices

88%
2007/02

2008/02

2009/02

2010/02

2011/02

2012/022013/02

2014/02

2015/02

2016/022017/022018/02

2019/022020/022021/02

34

APPENDIX

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

Nishi‐
Shimbashi

Iwamotocho

Shinjuku‐
Gyoen

Kamiyacho

Higashi‐Azabu

Higashi‐Ueno

Hachioji

Mita

Operating revenue fromreal estate leasing

77,105

138,564

186,825

41,82044,54949,033

138,949

5,428

Lease business revenue

67,344

123,264

174,465

38,44539,24343,172

111,086

5,046

Other lease businessrevenue

9,760

15,30012,359

3,374

5,306

5,861

27,862

381

Operating expenses from realestate leasing（Excluding Depreciation）

23,22639,15438,641

13,385

18,832

12,96037,6083,513

Tax and public dues

6,948

13,47914,342

4,615

6,438

3,695

8,377

‐

Maintenance fees

5,144

10,041

11,648

4,524

5,581

4,265

15,648900

Utility expenses

3,638

7,133

7,118

2,113

2,270

2,765

6,549

337

Repair expenses

2,629

4,995

3,240

1,541

565

1,584

2,284

2,100

Insurance premiums

62

221

213

46

82

60

276

12

Other expenses related
to leasing business

4,802

3,282

2,078

543

3,893

590

4,472

162

ＮＯＩ

53,87999,409148,183

28,43425,71636,073

101,340

1,915

Depreciation

2,734

14,693

11,143

1,373

5,816

3,189

10,460349

Operating income (loss)
from real estate leasing

51,14584,715137,040

27,061

19,90032,88490,880

1,565

35

APPENDIX

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

Kawasaki
Miyuki

Muza

Seiseki‐
Sakuragaoka

Fukuizumi

Totsuka

Sendai

Chihaya

Total

Operating revenue
from real estate leasing

171,536

undisclosed

undisclosed

undisclosed

8,699

undisclosed

110,936

1,305,465

Lease business revenue

151,731

undisclosed

undisclosed

undisclosed

7,735

undisclosed

103,092

1,193,065

Other lease businessrevenue

19,804

undisclosed

undisclosed

undisclosed

963

undisclosed

7,843

112,400

Operating expenses fromreal estate leasing（Excluding Depreciation）

40,555undisclosed

undisclosed

undisclosed

2,652

undisclosed

30,219344,565

Tax and public dues

10,543undisclosed

undisclosed

undisclosed‐

undisclosed

8,678

137,163

Maintenance fees

14,909undisclosed

undisclosed

undisclosed

1,692

undisclosed

8,023

86,581

Utility expenses

14,203undisclosed

undisclosed

undisclosed

924

undisclosed

1,569

48,625

Repair expenses

176

undisclosed

undisclosed

undisclosed

15

undisclosed

2,616

31,610Insurance premiums

191

undisclosed

undisclosed

undisclosed

17

undisclosed

296

3,602

Other expenses related
to leasing business

529

undisclosed

undisclosed

undisclosed

2

undisclosed

9,035

36,982130,980

22,726

166,342

25,635

6,046

33,49780,716

960,899

Depreciation

17,737

1,570

21,868

2,223

1,254

22,62620,098137,139

Operating income(loss) from real estateleasing

113,243

21,156

144,473

23,412

4,792

10,87060,617

823,760

ＮＯＩ36

APPENDIX

Overview of Appraisal Report
Asset
no

Asset nameAcquisitiondate

Acquisition price Book value as ofthe end of 7th FY(million yen)(million yen)

End of 6th FY(February 28, 2021)

End of 7th FY(August 31, 2021)

ChangeCapitalization rate
Capitalization rate
Appraisal
based on direct
Appraisal
based on direct
value (million yen) capitalization value (million yen) capitalization
method (%)
method (%)

Capitalization rate
based on direct
capitalization
method *2 (%)

Appraisalvalue *1
(million yen)Appraiser

The Tanizawa Sōgō

OF‐01

XYMAX Nishi‐Shimbashi Building

February 2018

2,500

2,519

3,120

3.7

3,220

3.6

100

‐0.1 Appraisal Co., Ltd.

OF‐02

XYMAX Iwamotocho Building

February 2018

4,250

4,393

5,740

3.5

5,710

3.5

‐30

‐ Institute

OF‐03

XYMAX Shinjuku‐Gyoen Building

February 2018

5,020

5,047

7,300

3.5

7,300

3.5

‐

‐ Institute

OF‐04

XYMAX Kamiyacho Building

February 2018

880

892

1,220

3.8

1,260

3.7

40

‐0.1 Appraisal Co., Ltd.

OF‐05

XYMAX Higashi‐Azabu Building

February 2018

1,550

1,602

2,140

3.8

2,140

3.8

‐

‐ Appraisal Co., Ltd.

OF‐06

XYMAX Higashi‐Ueno Building

February 2018

1,150

1,170

1,620

3.9

1,620

3.9

‐

‐ Appraisal Co., Ltd.

OF‐07

XYMAX Hachioji Building

February 2018

2,600

2,671

3,570

4.8

3,570

4.8

‐

‐ Institute

OF‐08

XYMAX Mita Building

July 2021

668

678

‐

‐

727

4.0

‐

‐ InstituteRT‐01

Muza Kawasaki

February 2018

4,100

4,078

5,390

4.1

5,310

4.1

‐80

‐ Appraisal Co., Ltd.

RT‐02

Life Kawasaki Miyuki Store

February 2018

790

792

976

4.2

978

4.2

2

‐ Appraisal Co., Ltd.

RT‐03

Vita Seiseki‐Sakuragaoka

February 2018

3,100

3,428

3,870

5.0

3,860

5.0

‐10

‐ Appraisal Co., Ltd.

RT‐04

Life Fukuizumi Store

September 2020

1,065

1,081

1,090

4.5

1,090

4.5

‐

‐ Appraisal Co., Ltd.

RT‐05

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

July 2021

540

549

‐

‐

622

4.5

‐

‐ Appraisal Co., Ltd.

HT‐01

Hotel Vista Sendai

February 2018

4,400

4,255

5,170

5.0

5,200

5.0

30

‐ Appraisal Co., Ltd.

OT‐01

Renaissance 21 Chihaya

February 2018

2,700

2,748

3,210

4.9

3,280

4.8

70

‐0.1 Appraisal Co., Ltd.

35,31335,91044,416‐45,887‐

1,471

Total ／Average

Japan Real Estate
Japan Real Estate
The Tanizawa Sōgō
Daiwa Real Estate
Daiwa Real Estate
Japan Real Estate
Japan Real Estate
The Tanizawa Sōgō
Daiwa Real Estate

The Tanizawa Sōgō
Daiwa Real Estate

The Tanizawa Sōgō
The Tanizawa Sōgō
The Tanizawa Sōgō‐

Unrealized profit
or loss *3(million yen)

700
1,316
2,252
367
537
449
898
48
1,231
185
431
8
72
944
531
9,976

*1 The difference between the estimated value at the end of the 6th FP and the estimated value at the end of the 7th FP is indicated.
*2

The difference between the direct capitalization rate adopted in the real estate appraisal report for each portfolio asset in the calculation of estimated value at the end of the 6th FP and the direct capitalization rate adopted
in the real estate report for each portfolio asset in the calculation of estimated value at the end of the 7th FP is indicated.
*3
The difference between the book value at the end of the 7th FP and the book value at the end of the 7th FP for is indicated.

37

APPENDIX

Change in investment unit price┃Change in investment unit price ┃ As of September 30, 2021
（yen）

145,000
140,000

XYR

Tokyo Stock Exchange REIT Index

135,000
130,000
125,000
120,000
115,000

Closing price 112,700yen
As of September 30, 2021

110,000
105,000
100,000

Issue price 105,000 yen

95,00090,00085,00080,00075,00070,0002019 2/15 3/15 4/15 5/15 6/15 7/15 8/15 9/15 10/1511/1512/15 1/15
20182020 2/15 3/15 4/15 5/15 6/15 7/15 8/15 9/15 10/1511/1512/15 1/15
2021 2/15 3/15 4/15 5/15 6/15 7/15 8/15 9/15
2/15 3/15 4/15 5/15 6/15 7/15 8/15 9/15 10/1511/1512/15 1/15
1/15
2/15
1/15
1/15

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

38

APPENDIX

Status of Unitholders
Share of investment units by owner type

Major Unitholders■Individuals, other ■Financial institutions ■Other domestic companies■Overseas institutions, etc. ■Securities companies

Name

4th FP

5th FP

6th FP

9.9%

47.3%

24.4%

7th FP

10.0%

47.3%

21.7%

9.8%

45.5%

25.3%

4.8%

27.4%

9.1%

46.1%

12.6%

16.4%

14.7%

15.3%

Number of unitholders by owner type

Individuals, other
Financial
institutions
Other domestic
companies
Overseas
institutions, etc.
Securities
companies
Total

4.6%

3.7%

Note: As of August 31, 2021

Number ofinvestment
units(unit)

Ratio*(%)

Custody Bank of Japan, Ltd. (Trust account)

33,612

15.04

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

30,896

13.82

XYMAX Corporation

12,500

5.59

Custody Bank of Japan, Ltd. (Securities investment
trust account)

11,192

5.00

BNP-PARIBAS SECURITIES SERVICES FRANKFURT
BRANCH/JASDEC/GERMAN RESIDENTS-AIFM

8,300

3.71

The Nomura Trust and Banking Co.,Ltd.
(Investment Trust Account)

8,129

3.63

SCBHK AC LIECHTENSTEINISCHE LANDESBANK AG

5,875

2.62

Individual

5,566

2.49

4.1%

4th FP

5th FP

6th FP

7th FP

4,089

5,889

6,318

6,604

37

38

35

35

90

125

121

132

BNYM SA/NV FOR BNYM FOR BNY GCM CLIENT
ACCOUNTS M LSCB RD

4,793

2.14

79

62

77

91

Aozora Bank, Ltd.

3,086

1.38

23

24

24

24

123,949

55.48

4,318

6,138

6,575

6,886

Total

* The ratio of unitholders is rounded down to the second decimal place.

39

APPENDIX

Overview of Asset Management Company
Overview
Company name

Organization
XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation

General Meetingof Shareholders

Location

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

August 6, 2007

Capital

0.2 billion yen

Board of Directors

Major shareholders
Number of
employees

Compliance Committee

REIT Compliance Committee

Investment Committee

REIT Investment Committee

Internal Audit Team

Compliance OfficeCompliance Officer

XYMAX Corporation (100% stake)34 (as of October 1, 2021)(1) Financial instruments business as prescribed in the Financial
Instruments and Exchange Act

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

Executives

Yasushi Yamaguchi, Director

Representative

Kazuya Sugimoto, Director

Director

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

Licenses

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

Private Investment
Management
Department

Business
Development
Department

Business
Administration
Division

REIT
Management
Division

Business
Planning
Division

40

APPENDIX

Overview of XYMAX Group
Company
nameOfficeRetail/Store

LogisticsHotel

XYMAX Corporation (unlisted)

Establish
ment

Locationofheadquarters

Capital

Sales

March 1, 1990
* Spin‐off from Recruit Co., Ltd. through employee

participatory MBO in 2000

1‐1‐1 Akasaka, Minato‐ku, Tokyo

2,892.865 million yen(as of March 31, 2021)
91,013 million yen(actual results for the fiscal year ended
March 2021)

Real estate consulting andmanagement services

Real estate consulting
CRE strategy, effective
utilization,
development/design
Consulting and planning on
inheritance, fund procurement,
etc.

Asset Management

XYMAX
XYMAX TRUSTXYMAX REAL ESTATE INVESTMENT ADVISORS/MAX‐REALTY

Asset management
Asset strategy, etc.

Valormax

SG Asset Max

Real estate
management

Hokkaido

XYMAX HOKKAIDO

Property management
Building maintenance

East JapanXYMAX ALPHATokaiXYMAX TOKAI

KansaiXYMAX KANSAI

KyushuXYMAX KYUSHU

Integrated
management of
store facilities
Facility management

Abilitas Hospitality

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

Major
shareholders

XYMAX Shareholding Association, directors &employees, clients and financial institutions
Total: 321 (as of March 31, 2021)

Numberofemployees

6,170 (as of April 1, 2021)* Consolidated figures of the Group

Other specialized
services* Consolidated figures of the Group

Leasing brokerage

Market survey/analysis
Research/planning on
management and repair

Hotel business

Real estate appraisal
Real estate assessment/survey

XYMAX INFONISTAXYMAX REAL ESTATE
INSTITUTE

KARAKSA HOTELSXYMAX ASSETCONSULTING

Cleaning

Security

Satellite office

Risk management

XYMAX SALAMAX SECURITY SERVICEXYMAX ZXY Department

Safety Organization for
Urban Renewal

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

41

APPENDIX

Corporate History
Started Office Property Management Business
1982︓

1996︓

2000︓

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

Made a Full‐scale Entry to Retail Property Management BusinessStarted to provide the property management
service to corporate and private owners otherthan Recruit Group.

2001︓

Establishment of Retail Property Management Business Division of XYMAX

MBO from Recruit Group which gave birth to
XYMAX Group

Entry into Hotel‐related Business
2012︓

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

Started Asset Management Business
2007︓

2000

2001

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

2002

2003

2004

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

Set up XYMAX Real Estate Investment Advisors Corporation

2006

2007

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

2008

2009

2010

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

2011

2012

2013

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

2014

2015

2016

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

2017

2018

Made an entry into
the J‐REIT business

42

APPENDIX

Fertile Management Base of the XYMAX GroupThe XYMAX Group has been ranked as No. 1 domestic service provider in the PM business in terms of contracting recordof real estate management projects for six years in a row since 2010*.
■ Human resources ︓2,061 people engaged in real estate management, 61 in leasing, and 80 in CRE related business(as of October 1, 2021)■ Relationship with real estate owners ︓ approximately 330 companies■ Track record in property sales and brokerage: ︓345 buildings, approximately 580 billion yen(accumulated total from April 1, 2010 to March 31, 2021)┃ Real estate management record
Actual number ofcontracts

1,009 buildings(As of the end of July 2021)

34┃

Hokkaido ∙Tohoku Region

Gross floor area
Approx. 5.3 million tsubo（Approx. 18.0 million m2)

900

Central ∙ Koushin'etsu
Region┃ Facility management record (As of the end of June 2021) ┃Actual number ofcontracts

Approx.

Hokkaido Region

Number of customers

12,200 stores

132 companies

Tohoku Region
8

1,800

Central ∙Kanto Region
Chugoku ∙Koushin'etsu Region
5,100
Kanto Region
Shikoku Region
Kansai Region 70
583
Chugoku ∙700
Shikoku Region 231
13

Kyushu ∙Kyushu Region
Okinawa Region
61

Kansai Region

Okinawa Region

2,500

9

1,200

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

consecutive years since 2010.

43

Cooperation with ITBM Center

Statutory inspections, confirmation of items pointed
out/Proposing correction

Asset Value
Maintenance

Building maintenance and management(cleaning/security/maintenance)

Optimization of management specifications

Confirming of completion of repair
work/Arranging payments

Accounting
ReportArranging contractors/Obtaining
estimates/Assessing amounts

Construction work data

Checking /Reporting on status of items
requiring repair

Leasing Related
Operations

Repair planning

Report/Proposal

Preparation and submission of annual budgets

Owner

Preparation of monthly reports

XYMAX Group

Issuing invoices/Confirmation of
payment/Payment of expenses

Arrangement of move‐in

Tenancy screening/Negotiation for conclusion

TenantManagement

Agency’s relation

Direct leasing

Instruct/Judge

Marketing/Sales strategy planning

Checking completion of agreements on
termination/Restoration

Rent negotiations (raising/lowering)

Handling delinquent tenants

Preparation of detailed building
regulations/Guidance for tenants

Responding to tenants (responses tocomplaints, etc.)

APPENDIX

Property Management
The XYMAX Group provides consistent real estate management and operation services, ranging from Property Management(acting for owners) to Building Maintenance operations.
In addition, the XYMAX Group owns all kind of data on real estate management through a track record accumulated over theyears.
┃ Areas of Real Estate Management Operations┃┃ Data Related to Real Estate Management ┃Contracted rent data

128,747cases
buildings(covering past 25.5 years)

Asking rent data

32,789 cases
buildings(covering past 10 years)

39,77956,237(during the period between April 1, 2000 and February 28, 2021)

154,621 cases

Building
Management

44

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

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

TA (Technical Adviser) Support

Knowledge Support

TAs give backup to all building maintenance sites

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

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

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

Real‐Time Information Gathering During of an
Emergency or Disaster

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

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

45

APPENDIX

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

XYMAX store management system

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

Corporate
headquarters
Status confirmation

Inquires
Corporate headquarters

Order placement
Facility management
systemService providers

Orderplacement

24‐hour call center

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

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

 Ensure thorough compliance, response to government agencies

Service providers

Each store• Operations related to response to government agencies, routine inspection• Remedy of compliance violations46

APPENDIXKey Points by Asset TypeXYMAX REIT believes that quantity and quality of tenant demand are key factors to assess the profitability of real estate.
XYMAX REIT aims for portfolio growth by comprehensively assessing the factors below by asset type.

OfficeRetailHotel

Focus on properties with strong
attractiveness to tenants

Focus on stability of tenant
rent or property price

Focus on hotels specializing in“lodging” near transportation hubs✔

Properties located in the 8 central✔

Properties where revenue offacilities is available for analysis✔

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

Properties with a unit rent of 10,000
yen to 20,000 yen✔

Properties where rent burden on
tenants is available for analysis✔

Properties located in areas offering
excellent access to transportation
hubs✔

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

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

wards of Tokyo, Central
Nagoya, Central Osaka andCentral Fukuoka

Properties located in areas where the

80% or more of the portfolio consists of office, retail, and hotel properties
47

APPENDIX

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

┃Direct relationship with real estate owners┃

 More than 70% of real estate owners are concerns over about large‐scale renovations of owned properties,
tenant management, and securing funds for reconstruction
 Identifies needs of property disposal arising due to the problem or concern about necessary funds

Acquisition

XYMAX REIT

 Concern for inheritance and business succession tends to increase as real estate owners get older
 Identifies needs of property disposal upon business succession and inheritance by building owners

Asset Management Company
Realization of external growth

Capture disposal
needs

XYMAX Group

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

Owner relationship, customer base
General businesscompany

Building owners

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

Financing
InheritanceROE management

Financing

30%

50%

20%

36%

42%

23%

1‐2 buildings

Measures against inheritanceand business succession

3 buildings or more
1‐2 buildings

24%

52%

30%

46%

3 buildings or more

16%

1‐2 buildings

20%
0%

39%

Percentage of client types for real estate management business(As of the end of July 2021)

Number ofproperties undermanagement

1,009

Others39.8%

J‐REIT
20.1%

Individual,
etc.
40.0%

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

24%
45%

45%
20%

40%
Concerned┃Diversity among real estate owners┃

24%

35%
60%

80%

Slightly concerned

100%

Not concerned

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

Management of tenants forlarge‐scale renovation andreconstruction

50‐59
60‐69
70 or older
40 or younger

Securing funds for large‐scalerenovations and reconstruction

50‐59
60‐69
70 or older
40 or younger

Measures against inheritanceand business succession

50‐59
60‐69
70 or older

0%

20%

40%
Concerned

60%
Slightly concerned

80%

100%

Not concerned

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

48

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

Use and geographical area of real estate in real estate disposals andreal estate sales brokerage results
3.1%

37

345

Office10.8%

RetailHotel

9.6%

155.3 billion yen

0.7%

580.0 billion yen

50.6%

17.4%

Tokyo

0.7%

39.4%

Other Tokyo
Metropolitan Area
Osaka Area

8.3%

residential

4.9%
5.1%

Land

12.8%

23 Wards of Tokyo

2.2%

Logistics

12.5%

4.1 billion yen

5 Wards of Tokyo

Nagoya Area
Fukuoka Area

22.0%

Other

1.6 billion yen

Other

By asset (whole)(based on transaction price)

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

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

14.1 billion yen to investment corporation, etc./Whole 52.7 billion yen

6,500
6,000
5,500
5,000
4,500

(Actual results from April 1, 2010 to March 31, 2021 Fiscal year average)■ Sale and intermediary to other thaninvestment corporations, etc.

■ Sale and intermediary to investment
corporations, etc.

4,000
3,500
3,000

2,977

2,500

2,071

2,000
1,500
1,000
500
0

269

645
427

End of March2011

End of March
2012

934

1,251

3,323

3,809

4,246

2,607

1,676

585

694

756

End of March2013

End of March2014

End of March
2015

1,075

1,148

1,384

1,482

1,491

1,553

End of March2016

End of March2017

End of March2018

End of March2019

End of March
2020

End of March
2021

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

49

APPENDIX

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

XYMAX
Group
business

XYMAX Real Estate
Institute Corp.

Publication
Of
Mass media
information┃Office market cycle in the 23 wards of Tokyo ┃（ New contracted rent index ）120
Variousmedia

110

Rent Index （100＝2020Q1）

2008Q2
2020Q2

100

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

 Contribution

ARES Real Estate Securitization Journal
The Japanese journal of real estate sciences

2021Q290
80

2005Q1

70

2010Q2BUILDING TOKYO, etc.
 Lectures

 Joint study Other

Waseda University Advanced Collaborative
Research Organization for Smart Society
Land Economy and Construction and Engineering
Industry Bureau, Ministry of Land, Infrastructure,
Transport and Tourism
Institute for Building Environment and Energy
Conservation (IBEC)Tokyo Telework Promotion Center
Nomura Global Real Estate Forum 2021
Nikkei Inc. Media Business EventJapan Facility Management Association (JFMA), etc.
Tokyo Univ., Nihon Univ., Waseda Univ., Univ. of Hyogo, etc.
WORKTECH
Participation in CRE at MIT in USA as an Industrial Partner

60
0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

（ Vacancy rate︓ ％）

2020
Q2

2020
Q3

2020
Q4

2021
Q1

2021
Q2

Vacancy rate

1.01%

1.34%

1.87%

2.30%

2.96%

New
contracted
rent index

104

102

92

90

89

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

50

APPENDIX

Office Market Analysis (1)Throughout the past to present, there will be robust tenant demand within the range of 10,000 to 20,000 yen in general.
XYMAX REIT believes that there is a clear correlation between convenient locations (the time required to walk to the nearest station) and theoccupancy rate.

┃Distribution of contracts concluded in the 23 wards ofTokyo (by unit price of contracted rent)┃┃Vacancy rate by time required to walk to the nearest
station in the 23 wards of Tokyo┃
（％）

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

（%）
20
18
16
14
12
8
6
4
2
0

Large segments ofcontracts concludedin the market

14.00%

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

All locations (combined)

12.00%

Within a 3‐miunte walk to the nearest station
3–5 minute walk to the nearest station
More than a 5‐minute walk from the nearest station

10.00%

Apr. – Jun. 2020
Number of cases︓622
Number of targeted
properties︓577

8.00%

6.00%

4.00%

Apr. – Jun. 2021
Number of cases ︓911
Number of targeted
properties ︓813

2.00%

0.00%
Unit rent (yen/tsubo)
Source: Created by XYMAX Real Estate Institute upon the Management Company request of Asset Management Company

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

51

APPENDIX

Office Market Analysis (2)The scarcity of small‐ and medium‐scale office buildings will improve in the future, when considering the current limited supply trend.
XYMAX REIT believes that the volatility of rent for small‐ and medium‐scale office buildings is relatively lower than that oflarge‐scale buildings and is highly stable revenues.
┃ Office Stock Pyramid 2021 covering the 23 wards (net rentable area)┃

Rent
Index (100＝2020 Q1)
賃料指数（100＝2020年Q1）

23 Wards of Tokyo: 13.00 million tsubo, 9,318 buildings,
average building age: 32.3 years

Small‐ and medium‐scale officebuildings (Gross floor area: 300‐5,000 tsubo)
Whole: 6.05 million tsubo, 8,563 buildings,
33.0 years on average┃New contracted rent by office building scale┃
Small‐ and medium‐scale office buildings(total floor area: less than 5,000 tsubo)
Large‐scale office buildings(total floor area: 5,000Q1︓1⽉〜3⽉
tsubo or more)
Q1: Jan. ‐ Mar.
Q3: Jul. ‐ Sep.
Q2︓4⽉〜6⽉
Q2: Apr. ‐ Jun.
Q4: Oct. ‐ Dec.
Q3︓7⽉〜9⽉

Large‐scale office buildings

70(Gross floor area: 5,000 tsubo or more)
Whole: 6.95 million tsubo,755 buildings, 24.3 years on average

65
60

Q4︓10⽉〜12⽉

55
50
45

Building age (years)

Old seismic standard:
1.48 million tsubo (25%)

40

20 years or older:
5.02 million tsubo, (83%)

35
30
25
20
15

Less than 20 years:
1.03 million tsubo, (17%)

Old seismic standard:
1.12 million tsubo,(16%)

20 years or older:3.52 million tsubo, (51%)

10

Less than 20 years:

3.43 million tsubo, (49%)

5
0
50
500

40
400

30
300

20
200

10
100

0

10
100

20
200

30
300

40
400

50
500

2020
Q1

2020
Q2

2020
Q3

2020
Q4

2021
Q1

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

98

97

91

93

90

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

107

104

93

89

89

Rentable area (thousand tsubo).
Source: Survey Report by XYMAX Real Estate Institute Corp.
“[23 Wards of Tokyo] Office Stock Pyramid 2021”

Source: Survey Report by XYMAX Real Estate Institute Corp.
“Office Market Report Tokyo Q2 2021”

52

APPENDIX

Office Demands of the Post‐COVID‐19 (1)The significance of an office as a “place of gathering” isbecoming evident due to issues with remote working■January (n=1,005) ■July (n=926)
Issues and concerns in telework operation (multiple0%
answers allowed)
0 10%
10 20%
20 30%
30 40%
40 50%
50 60%
60 70%
70 (%)

60.1%

Difficulties
with with
communications
Difficulties
communications

60.5%
53.3%
46.3%

Difficulties with management (business operations,Difficulties with management (business…
attendance, evaluation, etc.)
Decline in employee productivity and business
Decline in employee productivity and…
efficiency

42.5%
37.6%

InsufficientpaperlesssupportInsufficientpaperlesssupport

40.7%
34.8%

Difficulty in managing the physical and mental
Difficulty in managing the physical and…
health (wellbeing) of employees

34.8%
40.6%
34.1%

Sense of inequality between those who can work remotely and
Sensethoseof inequality
between those who…
who cannot, due to job types and other factors

37.8%
28.0%

Ineffective digitization of approvals and other
Ineffective digitization of approvals and…
work processes (hanko seals)
Difficulty setting an optimal remote working rate
Difficulty setting an optimal remote…
for every department and job type

24.0%
24.3%

Measuresfor theincurredincurredby employees
Measuresfor expenses
the expenses
by…
(utilities, communications, furniture and fixtures)

27.4%
17.7%
23.4%
15.8%

Inadequate
network
environment
Inadequate
network
environment
Heavyburdenof costs
to provideto…
ICT
Heavy
burdenofrequired
costs required
devices, etc.
OthersOthers
N.A.
N.A.

10.9%
7.9%
3.3%
2.5%
6.5%
6.8%

Due to the addition of options from the July survey, the January survey is not shown in the graph.

Requirements to the property to be used as themain office0%0

利便性の⾼い⽴地にある
Location, andtraffic convenience.
High seismic capacity (e.g., new standards
耐震性能が⾼い(新耐震・免震・制震等）
seismic isolation/control)
セキュリティ性能が⾼いHighsecurity performance
Good cleaning, sanitation, andビルの清掃衛⽣・維持管理状態が良い
maintenance condition
BCP (災害時などの事業継続計画)に適応する
Accommodates BCP
ネット環境が整備されている(Wi‐Fi)
Online network is in place (Wi‐Fi)
換気性能が⾼いHigh ventilation
performance
周辺のアメニティが充実している
Ample
amenities in surrounding area
There is⾃然光が⼊る
natural light
Size of one
floor is large
１フロアが広いRelatively
new building
ビルが築浅である
Large building
ビルが⼤規模である
Adoptssmart technology (e.g., contactless)
スマートテクノロジーを採⽤している(⾮接…
Building has
environmental certification
ビルが環境認証を取得している
Other
その他
N. A.
特にない

20%
20

40%
40

60%
60

80%
(%)
80 (%)

67.8%
46.2%
45.9%
42.6%
31.5%
26.2%
25.2%
18.1%
12.4%
9.2%
5.0%
3.9%
3.5%
2.4%
1.8%
9.0%
(All respondents (n＝1,648); MA)┃ Requirements to the property to be used as the satellite office┃
0%
0

High
security performance
セキュリティ性能が⾼い
Close to 従業員の居住地に近い
where employees live
Online network is in place (Wi‐Fi)
ネット環境が整備されている(Wi‐Fi)
Good cleaning, sanitation,and maintenance condition
ビルの清掃衛⽣・維持管理状態が良い
High seismic capacity (e.g., newstandards seismic isolation/control)
耐震性能が⾼い(新耐震・免震・制震等）
Accommodates BCP
BCP (災害時などの事業継続計画)に適応するHigh ventilation
performance
換気性能が⾼いItオフィス街・オフィスビルであること
is an office district or office building
Ample
amenities in surrounding area
周辺のアメニティが充実している
There is⾃然光が⼊る
natural light
Adoptssmart
technology(e.g.,
contactless)
スマートテクノロジーを採⽤している(⾮接触等)
Size of one
floor is large
１フロアが広いRelatively
new building
ビルが築浅である
Largebuilding
ビルが⼤規模である
Building has
environmental
certification
ビルが環境認証を取得している
Other
その他

Based on a survey distributed to companies registered to use the ZXY satellite office service in the Tokyo Metropolitan area (Tokyo, Kanagawa,
Saitama, and Chiba) and XYMAX INFONISTA client companies (926 valid responses) The survey period was July 6, 2021 to July 18, 2021.

20%
20

40%
40

60%
60

80%
80

(%)

59.7%
50.9%
47.8%
37.9%
35.5%
28.5%
22.5%
21.5%
13.0%
8.7%
4.8%
4.0%
3.2%
2.6%
2.0%
2.9%

(All respondents, 'Do not intend to use satellite office' (n=1,065; MA)53

APPENDIX

Office Demands of the Post‐COVID‐19 (2)Targeted rate of workforce for in‐office work after
the COVID‐19 crisis has subsided (by industry)

Targeted rate of workforce for in‐office work after
the COVID‐19 crisis has subsided (by company size)*Excluding companies where number of employees is unknown

Services (cannot be classified to other category) (n=197)(%)30%
30
16.8%
20
20%
8.1%
5.6%
5.6%
5.1%
4.1%
10%
10
0.5% 1.5%
0%0Information and communications (n=161)(%)30%
30
13.7%
20
20%
9.9%
5.0% 2.5% 4.3% 2.5%
10%
10
0%0
Manufacturing (n=150)(%)30%
30
20%
20
10%
10
0.0% 0.0% 2.0%
0%0

16.2% 15.2%
7.6%

4.6%

10%
10

21.1%
6.8%

6.8%

7.5%

11.8%
3.1%

22.0%
17.4%

20%
20

5.0%

0%
0

4.4%

0.7%

3.0%

4.9%

9.3%

5.3%

3.5%

7.2% 6.7%

10.9%
4.6%

Medium‐sized companies (100 to 999 employees) (n=302)

12.7%
4.0%

18.0%

15.3% 14.7%
8.0%

7.3%

8.0%

6.0%

10%
10
19.5%

13.3% 13.3% 15.0%
7.1%
0.9%

8.3%

6.3%

2.1%

6.3%

15.9%

2.7%

8.6%
0.3% 0.7% 1.3% 1.3%

12.9%
7.3%

5.3%

13.9% 14.2%

9.9%
5.3%

Large‐sized companies (1,000 or more employees) (n=169)

10.4%

30%
30
10.4%

4.2%

4.9%

14.8%
0.6% 0.6% 1.8%

4.1%

11.2%

10.7%

8.9%

13.6%
4.1% 4.1% 5.3%

8.2%

3.3%

24.3%
8.1%

0.0%

20.1%

20%
20

0%
0

16.4%

27.0%

2.7%

0%
0

10%
10

Scientific research, professional and technical services (n=61)
24.6%(%)30%
30
16.4%
20%
20
9.8%
4.9%
3.3%
3.3%
10%
1.6% 3.3%
0.0%
10
0%0
Finance and insurance (n=37)(%)30%
30
20%
20
5.4%
10%
0.0% 0.0% 0.0%
10
0%0

18.9%

(%)

14.6%
4.2%

30%
30
20%
20

4.0%

31.3%

0.0%

30%
30

(%)

Wholesale and retail trade (n=113)(%)30%
30
20%
20
8.8%
10%
10
0.0% 0.9% 1.8% 0.9%
0%0Construction (n=48)(%)30%
30
20%
20
2.1% 0.0%
10%
10
0%0

9.1%

Small‐sizedcompanies (Less than 100 employees) (n=431)
(%)

13.5%
5.4%

5.4%

8.1%

Source: Awareness Survey of the Tokyo Metropolitan Area on Workstyles andWorkplaces: July 2021 by XYMAX Real Estate Institute54

APPENDIX

Impact of COVID‐19 on the Retail Market
While sales in the restaurant industry have declined sharply due to the impact of COVID‐19, changes in other industries
have been small, and the impact has been limited.

For the following items, a large percentage replied, “I agree”
and “I agree somewhat.” “The increasing trend of stay‐at‐home consumption will continue” (85%)
 “Remote work (telecommuting, etc.) will continue to grow” (83%)
 “Shopping in suburban stores (outside of cities) will increase” (65%)

Consumer needs have changed, and retail properties in thesuburbs are expected to remain robust.

⼩

33%

8%

45%

40%

3%

43%

40%

9%

65%

業

The increasing trend of stay‐at‐homeconsumption will continue
Remote work (telecommuting, etc.) willcontinue to grow

38%

53%

9% 4%

56%

業

■Actively open more store (locations) toincrease the number

2. Changes in consumer behavior and values

55%

サAt the same time, changes in other industries, including theretail (food) and entertainment industries have been small,and the impact on the retail sector in general has been
limited.

before（n=123） 7%
with/after（n=123） 6%
13%
before（n=237）
with/after（n=237） 8%
22%
before（n=54）
Restaurant
industry
with/after（n=54） 7%
before（n=26） 12%
Entertainment
industry
with/after（n=26）
Servicebefore（n=75） 11%
industry
with/after（n=75） 3%
娯楽 飲⾷

Willingness of businesses in the restaurant industry to open
new locations:“Proactively willing to open” decreased (from 22% to 7%)“Not willing to open, in principle” increased threefold(from 9% to 30%)

Retail(food)
industry
Retail(nonfood)industry

⼩1. Willingness to open new stores (by industry/business type)

30%

7%

54%

31%

4%

73%

8%

53%

33%

53%

19%
3%

37%

■Willing to open only inprime properties

7%■Not willing to open,
in principle

34%■No reply

51%
45%

38%

10%

4% 2% 1%

11%

4%1% 1%

Demand for drive‐through stores will increase

24%

44%

21%

8%

Consumers of live commerce will increase

25%

40%

26%

5% 2% 1%

Shopping in suburban stores (outside of cities)
will increase14%

Use of public transportation for shopping will decrease
Use of shared offices at retail properties/stores will
increase
The number of people moving to rural areas will increase

51%
44%

21%
14%

40%

12%

Actions by consumers who are motivated by SDGs will
increase

8%27%

Consumption associated with domestic travel will increase

8%

26%

Overconcentration in Tokyo will continue

2% 5%

40%

33%

2% 1%

25%

8%

24%

10% 1% 1%
12%

31%

43%

8%

The number of customers who value COVID‐19
countermeasures (for example, information on crowding) morethan product lineup or prices will increase

2% 1%

2% 1%

32%

11%

4% 1%

31%

14%

3% 1%

39%
36%
41%

■I agree ■I agree somewhat ■I neither agree nor disagree ■I disagree somewhat

18%

7%

1%

23%

6%

1%

18%

1%

■I disagree ■No reply

From “Survey on Store Strategies under the COVID‐19 Pandemic 2020” by XYMAX Real Estate Institute Corporation

55

APPENDIXXYMAX Group’s Expanding B to C Business Activities (ZXY)
Membership satellite office business “ZXY” leading work‐style reform┃Workplace service enabling free work‐style┃
BEFOREAFTER「GOOD DESIGNBEST 100」
Awarded in 2019

 Location of workplaces

To respond the increasing demand for private booth, 8
workplaces were renovated to workplaces that accommodate
private booth only and this has enhanced the convenience

Expanding workplace by utilizing the various spaces
owned and/or leased by gymnasiums, financial
institutions, and Railway companies, etc.

 Change in number of memberships and workplaces

Workplaces

Members

495,000
500,000
440,000
400,000
385,000
385,000

167
The 150th workplace opened inJuly 2021 and will be over 200
by the end of this FY.

134

330,000
330,000

448,82594

275,000
275,000
78

220,000
220,000
165,000
165,000
110,000
110,000
55,00055,000
00

27

31

33

40

47

54

291,148

212,954
44,199139,2443,806 17
112,681
5 5,691 23,394
76,902160160140140120120100100376,349

226,942180180

80 80
60 60
40

40

20

20

0

0
Source: XYMAX Corporation

56

APPENDIXXYMAX Group’s Expanding B to C Business Activities（karaksa hotel）
The XYAX Group is expanding its own brand, “karaksa hotel” in the country mainly targeting
tourists
Osaka
Mar. 2016
Jan. 2017
Nov. 2017
Nov. 2019

Hokkaido
69 rooms karaksa hotel Osaka Shinsaibashi I *139 rooms karaksa Spring hotel Kansai Air Gate *112 rooms karaksa hotel Osaka Namba *396 rooms karaksa hotel grande Shin‐Osaka Tower *177 rooms karaksa hotel Sapporo *Jan. 2018

Kyoto
Mar. 2016 36 rooms
karaksa hotel Kyoto I *karaksa hotel grandeShin‐Osaka Tower

Chibakaraksa hotel Osaka Namba

To be opened 190 rooms
karaksa hotel Sapporo

 Change in number of hotels developed andhotels15
15
karaksa hotel premier Tokyo Ginza

10
10

operated and number of guestrooms

2,000
2,000

棟数
Number of hotels
客室数

karaksa hotel Kyoto I

karaksa hotel TOKYO STATION

OpenedTo be opened

57 rooms karaksa hotel premier Tokyo Ginza *151 rooms karaksa hotel TOKYO STATION *95 rooms

105
105

00

800
800

533
533
356
356

22

44

2016
2016年

2017
2017年

88

1010

55
2018
2018年

1,600
1,600
1,200
1,200

1,137
1,137

Tokyo
May 2019
Jul. 2019
Spring, 2023

1,422
1,422

Number of guestrooms

55

rooms

2019
2022
2019年 After
2022年以降

400
400
00

Source: XYMAX Corporation (as of September 2021)* As of the date of this material, XYMAX REIT has not determined the acquisition of these properties and there is no guarantee that XYMAX REIT will acquire them in the future.

57

Disclaimer

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

58

〜Memo〜59