Translation Purposes Only
January 5, 2021
For Immediate Release
Real Estate Investment Trust Securities Issuer
1-1-1 Akasaka, Minato-ku, TokyoXYMAX REIT Investment Corporation
Representative: Nobuhito Inatsuki, Executive Director(Securities Code: 3488)
Asset Management Company
XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation
Representative: Nobuhito Inatsuki, Representative Director
Contact:
Tatsuya Nakayama
Head of Business Planning Division
TEL: +81-3-5544-6880

Notice Concerning Revision of Fixed-Term Lease Contract
XYMAX REIT Investment Corporation (hereinafter, “XYMAX REIT”) announces today that XYMAX REIT
resolved and concluded a memorandum (hereinafter “the Memorandum”) to revise fixed-term lease
contracts (hereinafter “the Contract”) on Hotel Vista Sendai (hereinafter “the Property”) with Vista HotelManagement Co., Ltd. (hereinafter, “the Lessee”), as below.
1.

Reason for revision
Since February 2020, the spread of the COVID-19 has greatly curtailed domestic and overseas
economic activities. Domestic demand for accommodations has been significantly affected not only bya decline in the number of foreign visitors to Japan due to the impact of the restrictions on travel fromother countries to Japan, but also by self-restraint of nationwide business trips and events associatedwith the government's declaration of a state of emergency (hereinafter simply referred to as the "Stateof Emergency"). The State of Emergency was lifted in May 2020, and domestic demand foraccommodations has shown signs of recovery after July by stimulating demand through "Go To
Campaign.” However, it will take more time to recover to a level before the spread of the COVID-19.
The Property held by XYMAX REIT also showed signs of improvement in operating performance after
July when the "Go To Campaign" was launched. However, GOP (Note) before rent payment became
negative, and the Property experienced an extreme business slump in April and May, when the State ofEmergency was declared, and in June immediately after the State of Emergency was lifted,.
Against this backdrop, XYMAX REIT has been requested by the Lessee to reduce or waive the rent ofthe Property. Based on the Lessee's future operation plans of the Property (including reductions inoperating expenses), the business conditions, and the financial position, the XYMAX REIT has
repeatedly discussed with the Lessee regarding the future rent structures associated with the Property.
As a result of the discussions, the XYMAX REIT has determined that it will contribute to the stabilityof the operations of the Property by revising the rent structures as an interim measure until the demand
for accommodations recovers and has agreed to revise the terms and conditions of the Contracts asstated in "2. Summary of Revisions" below.
(Note)GOP (gross operating profit) is the remainder after deducting expenses, such as personnel costs and general andadministrative expenses etc. incurred in hotel operation from total sales (the same shall apply hereafter).

2.

Summary of Revisions
The new rent determination methods provided under the Memorandum is consisted of 3 phases asdescribed below.
For the period from November 1, 2020 to August 31, 2021, the rent shall be the variable rent only,which is the most flexible and effective rent method for the risk that the Lessee may not be able togenerate sufficient GOP to pay monthly fixed rents because the lodging demand is in the process ofrecovery during the period. The percentage to be multiplied by the monthly GOP when calculating themonthly variable rent shall be almost the same level as in the past rent to GOP burden ratio based on
the track record of the Property.
For the period from September 1, 2021 to August 31, 2022, it is assumed that lodging demand will
recover to the extent that the Lessee is able to continue to generate the GOP required to pay monthly
fixed rents. Accordingly, the monthly fixed rent equal to the level prior to the rent revision shall be paid,with the variable rent calculated monthly excess GOP (the portion of GOP exceeds a certain amount)multiplied by a certain percentage.
From September 1, 2022 onward, as lodging demand is expected to recover further, the monthly fixed
rent shall be increased from before the revision and to mitigate seasonal fluctuations, monthly variable
rent shall also be paid by calculating using the GOP for the past one year, including the previous monthof the current month.
[Summary of the new Rent Structure]
Fixed rent (Note 1)
Variable rent (Note 1)
Before revisions

Afterrevisions

JPY240 million
per year

From November 1,
2020 to August 31,
2021-From September
1, 2021 to August31, 2022

JPY20 million permonth

After September 1,
2022

JPY20.5 million
per monthCalculated by multiplying the amountobtained by subtracting the annual sum of
the fixed rent and 12 Million yen (annualtranche) from the sum of GOP from April tothe next March every year (“Annual GOP I”)
by a certain percentage (Note 2). If theAnnual GOP I exceeds a certain amount, therate multiplied by such excess is lower thanthe percentage when the Annual GOP I isbelow the amount.
Calculated by multiplying GOP of thecurrent month by a certain percentage(Note 3). However, if the GOP of the current
month becomes negative, the variable rent
for the current month shall be JPY0.
Calculated by multiplying the amountobtained by subtracting fixed rent of thecurrent month and JPY1 Million (monthlytranche) from the GOP of the current month("Variable Rent Reference Amount I") by acertain percentage (Note 4). However, if theVariable Rent Reference Amount I becomes
negative, the variable rent for the current
month shall be JPY0.
Calculated by GOP for the past one year
including the previous month of the current
month (“Annual GOP II”)divided by 12
minus fixed rent of the current month and
JPY1 Million (monthly tranche) ("VariableRent Reference Amount II") then multiplied
by a certain percentage (Note 4).
However, if the Variable Rent Reference
Amount II becomes negative, the variable
rent for the current month shall be JPY0.
If the Annual GOP II exceeds a certain
amount, the percentage multiplied by suchexcess is lower than the rate when theAnnual GOP II is below the amount.

(Note 1) Amounts do not include consumption taxes and local consumption taxes.
(Note 2) The percentage shall not be disclosed because the consent of the Lessee has not been obtained.
(Note 3) The percentage shall not be disclosed because the consent of the Lessee has not been obtained. The percentage differsfrom those for the period from November 1, 2020 to February 28, 2021 and from the period from March 1, 2021 toAugust 31, 2021.
(Note 4) The percentage shall not be disclosed because the consent of the Lessee has not been obtained. Please note that, however,the percentage on and after September 1, 2021 will be the same as before the revision

3.

Future Outlook
For the operating forecasts and distribution forecasts for the fiscal period ending February 2021 (the 6thfiscal period from September 1, 2020 to February 28, 2021) and the Fiscal Period Ending August 2021
(the 7th Fiscal Period from March 1, 2021 to August 31, 2021) which reflect the impact of the revised
rent structure stated above, please see the “Notice Concerning Revision of the Operating Forecasts andDistribution Forecasts for the Fiscal Period Ending February 2021 (the 6th Fiscal Period) and the Fiscal
Period Ending August 2021 (the 7th Fiscal Period)” announced today.

* XYMAX REIT website address: https://xymaxreit.co.jp/en/index.html