April 20, 2016
For Immediate Release
Real Estate Investment Trust Securities Issuer
Star Asia Investment Corporation
Representative: Atsushi Kato, Executive Director(Code: 3468)
Asset Management Company
Star Asia Investment Management Co., Ltd.
Representative: Atsushi Kato
President and CEO
Contact: Toru Sugihara
Director and CFO
TEL: +81-3-5425-1340

Notice Concerning Forecasts for the Fiscal Periods Ending July 31, 2016 and January 31, 2017
Star Asia Investment Corporation (SAR) announces its operating results forecasts for the fiscal periods ending July31, 2016 (December 1, 2015 – July 31, 2016) and January 31, 2017 (August 1, 2016 – January 31, 2017), as
described below.

OperatingOperating

Ordinary

revenueincomeincome(million yen)(million yen)(million yen)

Net Income(million yen)

Cash distribution
per unit

Cash distribution(not including cash
distribution in excessof earnings)(yen)earnings per unit

in excess of(yen)Fiscal period ending
July 31, 2016

1,811

1,145

285

285829

―

1,952

1,185

1,050

1,050

3,046―(1st Period)
Fiscal period ending
January 31, 2017
(2nd Period)(Reference)
Fiscal period ending July 31, 2016 (1st Period):
Forecast number of investment units issued and outstanding at the end of the fiscal period: 344,700 units
Forecast net income per unit: 829 yen
Fiscal period ending January 31, 2017 (2nd Period):
Forecast number of investment units issued and outstanding at the end of the fiscal period: 344,700 units
Forecast net income per unit: 3,046 yen(Notes)1. Fiscal periods of SAR are from February 1 to July 31 and from August 1 to January 31 of the following year for every year.
However, the first fiscal period is from the establishment date of SAR (December 1, 2015) to July 31, 2016. As for the firstfiscal period, SAR conducted capital increase through private placement on January 14, 2016, acquired the propertiesacquired-before-listing (defined in the Attachment) and started asset management. Therefore, the substantial first fiscal
period is from January 14, 2016 to July 31, 2016 (200 days). Furthermore, SAR plans to acquire the properties-acquired-atlisting (defined in the Attachment) today.
2. The forecasts are the current figures calculated under the assumptions described in the Attachment “Assumptions forForecasts for the Fiscal Periods Ending July 31, 2016 and January 31, 2017.” The actual operating revenue, operating income,ordinary income, net income and cash distribution per unit (not including cash distribution in excess of earnings) may besubject to change due to additional acquisition/disposition of real estate, etc., trends of the real estate market, etc., changes
in rental income associated with changes in tenants or other causes and unexpected occurrences of repair, etc., the actual
number of new investment units to be issued, fluctuations in interest rates, additional issuance of new investment unitsDisclaimer: This document is an English translation of a press release for public announcement concerning forecasts for the fiscal periods
ending July 31, 2016 and January 31, 2017 by Star Asia Investment Corporation, and has not been prepared for the purpose ofsolicitation of investment.

1and changes in other conditions surrounding SAR, etc. in the future. In addition, SAR does not guarantee any actual cash
distribution amount by announcing the forecast figures.
3. The forecasts may be subject to revision when a disparity beyond a certain degree is expected between the above forecasts
and actual figures
4. Amounts are rounded down to the nearest specified unit. The same shall apply hereinafter.

* This material is distributed to the press club of the Tokyo Stock Exchange (Kabuto Club), the press club of theMinistry of Land, Infrastructure, Transport and Tourism, and the press club for construction trade publicationsof the Ministry of Land, Infrastructure, Transport and Tourism.
* Star Asia Investment Corporation website address: http://starasia-reit.com/en/Disclaimer: This document is an English translation of a press release for public announcement concerning forecasts for the fiscal periods
ending July 31, 2016 and January 31, 2017 by Star Asia Investment Corporation, and has not been prepared for the purpose ofsolicitation of investment.

2[Attachment]
Assumptions for Forecasts for the Fiscal Periods Ending July 31, 2016 and January 31, 2017
Item

Assumptions

Calculation Period

Fiscal period ending July 31, 2016 (1st Period): December 1, 2015 –July 31, 2016 (244days)
Fiscal period ending January 31, 2017 (2nd Period): August 1, 2016 – January 31, 2017(184 days)
As for the first fiscal period, SAR conducted capital increase through private placement
on January 14, 2016, acquired the properties-acquired-before-listing (defined below)
and started asset management. Therefore, the substantial first fiscal period is fromJanuary 14, 2016 to July 31, 2016 (200 days).

Investment Assets

In addition to real estate beneficiary interest in trust of the 11 properties SAR acquiredon January 14, 2016 (the “Properties Acquired Before Listing”), real estate beneficiaryinterest in trust of the 7 properties planned to be acquired today (the “Properties
Acquired at Listing”) with the funds procured from the issuance of new investment
units, which was resolved at the Board of Directors meeting held on March 16, 2016
and on April 11, 2016, are assumed as investment assets. It is also assumed there will
be no change (new property acquisitions, sales of existing properties, etc.) to theinvestment assets through the end of the fiscal period ending January 31, 2017.
In practice, they may vary due to changes in investment assets.

Operating
Revenue

As to rental revenues from the Properties Acquired Before Listing and the Properties
Acquired at Listing, those from the Properties Acquired Before Listing are calculated
based on information obtained from the previous owners of the properties and on
their actual performance after the acquisitions; and those from the Properties
Acquired at Listing are calculated based on information obtained from the presentowners and on the contents of the lease agreements that are effective as of today,
while both taking into account the market trends, etc.
As to operating revenue, it is assumed no rent payments will be behind or declined bytenants.

OperatingExpenses

Among expenses related to rent business of the Properties Acquired Before Listing andProperties Acquired at Listing, which are the principal operating expenses, expenses
excluding depreciation are calculated on the basis of historical data, reflecting variablefactors of expenses, based on the information obtained from the previous owners of
the properties and on their actual performance after the acquisitions for the Properties
Acquired Before Listing, and based on the information obtained from the presentowners for the Properties Acquired at Listing. Upon transactions of real estate andother properties, it is a general practice to calculate and reimburse the pro rata portionof fixed property taxes, city planning taxes and other public charges based on thenumber of days of ownership to the previous owner and settle them at the time ofacquisition. However, in case of SAR, the settled amount is included in the acquisition
cost and thus is not recorded as expenses in the fiscal periods ending July 31, 2016 andending January 31, 2017. Therefore, fixed property taxes, city planning taxes and otherpublic charges in fiscal 2017 for the Properties Acquired Before Listing and theProperties Acquired at Listing will be recorded as expenses starting from the fiscal
period ending July 31, 2017. The fixed property taxes, city planning taxes and otherpublic charges to be included in the acquisition cost of the Properties Acquired Before
Listing and the Properties Acquired at Listing are assumed to be 306 million yen. The
effect of fixed property taxes, city planning taxes and other public charges expensed
throughout the year is expected to be 159 million yen in the fiscal period ending July
31, 2017 and 159 million yen in the fiscal period ending January 31, 2018.
For the expenditures for repair and maintenance of buildings, 23 million yen is expectedfor the fiscal period ending July 31, 2016 and 22 million yen for the fiscal period ending
January 31, 2017. However, the expenditures for repair and maintenance for the fiscal

Disclaimer: This document is an English translation of a press release for public announcement concerning forecasts for the fiscal periods
ending July 31, 2016 and January 31, 2017 by Star Asia Investment Corporation, and has not been prepared for the purpose ofsolicitation of investment.

3ItemAssumptions
periods could differ significantly from the estimated amounts, as expenditures may
arise urgently due to damage to buildings and such caused by unexpected factors, andbecause the variance in amounts generally tends to be significant from year to year andrepair and maintenance expenses do not arise regularly.
Depreciation is calculated using the straight line method, including incidental expenses
and others, and is assumed to be 229 million yen for the fiscal period ending July 31,
2016 and 239 million yen for the fiscal period ending January 31, 2017.

Non-operating
Expenses

As temporary expenses for the fiscal period ending July 31, 2016, 63 million yen as initialexpenses for the establishment of SAR and 140 million yen for issuance of new
investment units and expenses related to listing of investment units are expected. Inaddition, financing expenses described below are expected to be 449 million yen. Outof these expenses, those allowed to be recorded as expenses in a lump sum foraccounting and tax purposes are recorded as expenses in a lump sum at the time ofarising. From the perspective of principle of consistency of accounting policy, theaccounting policy adopted by SAR will be, in principle, continued to be used going
forward.
Interest expense and financial expenses are expected to be 604 million yen for the fiscalperiod ending July 31, 2016 and 135 million yen for the fiscal period ending January 31,
2017.

Debt Financing

It is assumed that, as of today, borrowings of 32,555 million yen in total will be madefrom the qualified institutional investors defined under Article 2 Paragraph 3 item 1 ofFinancial Instruments and Exchange Act.
Repayment of borrowings of 1,545 million yen in the fiscal period ending January 31,2017 using the consumption tax refund in line with the acquisition of the Properties
Acquired at Listing and other payments was initially expected. However, as a result ofdetailed examination, it is assumed 1,220 million yen will be repaid in the fiscal period
ending January 31, 2017.
It is assumed that, if payment from the third-party allotment described in “InvestmentUnit” below is made in May 2016, repayment of 1,135 million yen will be conducted in
the fiscal period ending January 31, 2017 with the paid-in amount from the saidissuance of new investment units as resource.
LTV is expected to be around 47.55% at the end of the fiscal period ending July 31, 2016
and around 45.15% at the end of fiscal period ending January 31, 2017.
LTV is calculated by using the following calculation method.
LTV = Total liabilities/total assets x 100
LTV may vary depending on the number of new investment units issued through thirdparty allotment described in “Investment Units” below.

Investment Units

It is assumed that, in addition to 332,900 investment units issued and outstanding asof today, all of the investment units scheduled to be newly issued will be issued
through the issuance of new investment units through third-party allotment(maximum of 11,800 units) as was resolved at the Board of Directors meeting held on
March 16, 2016 and April 11, 2016.
It is assumed that, except for the above, there will be no changes in the number ofinvestment units due to additional issuance of new investment units and such throughthe end of the fiscal period ending January 31, 2017.
Cash distribution per unit (not including cash distribution in excess of earnings) iscalculated using the forecast number of investment units issued and outstanding at theend of the fiscal period ending July 31, 2016 and the end of the fiscal period ending
January 31, 2017 (344,700 units), including 11,800 units which is the maximum numberof investment units to be newly issued as described above.

Disclaimer: This document is an English translation of a press release for public announcement concerning forecasts for the fiscal periods
ending July 31, 2016 and January 31, 2017 by Star Asia Investment Corporation, and has not been prepared for the purpose ofsolicitation of investment.

4Cash Distribution
per Unit(not includingcash distribution
in excess ofearnings)

Cash distribution per unit (not including cash distribution in excess of earnings) is
calculated on the assumption described in the monetary cash distribution policy
stipulated in SAR’s Articles of Incorporation.
It is possible that the cash distribution per unit (not including cash distribution inexcess of earnings) could change due to various factors, including changes ininvestment assets, changes in rental revenue accompanying changes in tenants, etc.,
and unexpected repair and maintenance, etc.
Cash distribution per unit for the first fiscal period is expected to be 829 yen due toeffect of initial expenses in line with the establishment of SAR, and arising of temporary
non-operating expenses such as financing expenses and expenses for issuance ofinvestment units in line with the additional acquisition of properties at the time oflisting. Cash distribution per unit for the second fiscal period is expected to be 3,046
yen as fixed property taxes, city planning taxes and other public charges will not havearisen. (Fixed property taxes, city planning taxes and other public charges will arise asexpenses in the third fiscal period and onward.)

Cash Distribution
in Excess ofEarnings per Unit

Although cash distribution in excess of earnings is possible according to the Articles ofIncorporation, SAR does not plan to conduct cash distributions in excess of earnings forthe time being, taking into account the ratio of capital expenditure to depreciation andalso in order to carry out conservative financial management.

OtherForecasts are based on the assumption that revisions will not be made to laws andregulations, tax systems, accounting standards, listing rules, rules of the Investment
Trusts Association, Japan that impact forecast figures.
Forecasts are based on the assumption that there will be no major unforeseen changes
to general economic trends in real estate and other market conditions, etc.

Disclaimer: This document is an English translation of a press release for public announcement concerning forecasts for the fiscal periods
ending July 31, 2016 and January 31, 2017 by Star Asia Investment Corporation, and has not been prepared for the purpose ofsolicitation of investment.

5