September 14, 2020
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: Akiko Kanno
Director and CFO
TEL: +81-3-5425-1340

Notice Concerning Operating Results for the Fiscal Period
Ended July 31, 2020 (Final Fiscal Period), of Sakura Sogo REIT Investment Corporation andDetermination of Merger Consideration
Star Asia Investment Corporation (“SAR”) announces the operating results for the fiscal period ended July 31,2020 (final fiscal period), of Sakura Sogo REIT Investment Corporation (“SSR”), the dissolving corporation in themerger with SAR which went into effect on August 1, 2020 (the “Merger”), in addition to the determination ofmerger consideration as follows.
1. Operating Results of SSR for the Fiscal Period Ended July 31, 2020 (Final Fiscal Period), and Merger Consideration
Operatingrevenue(million yen)
Fiscal period ended
July 31, 2020

2,774

Operatingincome(million yen)

Ordinaryincome(million yen)

1,052829

Net income(million yen)

Merger consideration inthe form of cash
distribution per unit (Yen)

829

2,489

(Note 1) In lieu of cash distributions for SSR’s final fiscal period (from January 1, 2020 to July 31, 2020), SAR will pay anamount equivalent to the cash distributions for the final fiscal period based on SSR’s distributable profit as merger
consideration in the form of cash distribution to the unitholders stated or recorded in the final unitholders’ registerof SSR as of July 31, 2020, the day immediately prior to the effective date of the Merger (the payment on merger willbe the amount of distributable profit of SSR as of July 31, 2020, divided by the total number of investment units
issued and outstanding of SSR as of July 31, 2020 (amounts less than one yen are rounded down)).
(Note 2) Amounts less than the stated units have been rounded down.

2. Scheduled Date of Commencement of the Merger Consideration Payment
October 14, 2020
【Attachment】
Reference information on the grounds of the Merger Consideration for SSR* Star Asia Investment Corporation website address:

http://starasia-reit.com/en/<Other press releases issued by SAR today>
・ Notice Concerning Revision to Forecasts of Operating Results and Distributions
for the Fiscal Periods ending January 31, 2021 and July 31, 2021
・ (REIT) Financial Report for Fiscal Period Ended July 31, 2020
・ Notice Concerning Status of a Tenant of a Hotel Property (follow-up report)- Signing of Memorandum Agreement regarding Hotel Operations with KACHIKAIHATSU Co. Ltd.-This is an English translation of the announcement in Japanese dated September 14, 2020. However, noassurance or warranties are given for the completeness or accuracy of this English translation.

[Attachment]
Reference information on the grounds of the Merger Consideration for SSR(1) Balance Sheet(Unit: thousand yen)
Fiscal period ended
July 31, 2020
AssetsCurrent assets
Cash and deposits

1,552,012

Cash and deposits in trust

3,631,229

Operating accounts receivable

60,059Prepaid expenses

72,472

Deposits

6,209

Other

3

Total current assets

5,321,988

Noncurrent assets
Property, plant and equipment
Buildings in trust

15,290,621

Accumulated depreciation(1,748,467)

Buildings in trust, net

13,542,153

Structures in trust

450,855

Accumulated depreciation(138,412)

Structures in trust, net

312,442

Machinery and equipment in trust

47,583

Accumulated depreciation(9,269)Machinery and equipment in trust, net

38,314Tools, furniture and fixtures in trust

51,406

Accumulated depreciation(18,042)

Tools, furniture and fixtures in trust, net

33,363

Land in trust

42,953,181

Total property, plant and equipment

56,879,455

Intangible assets
Leasehold rights in trust
Other
Total intangible assets

670,8656,359
677,224

Investments and other assets
Deferred tax assets

17Long-term prepaid expenses

54,491Long-term deposits

269,444

Other

10,000Total investments and other assets

333,954

Total non-current assets
Total assets

57,890,633
63,212,621

(Unit: thousand yen)
Fiscal period ended
July 31, 2020
Liabilities
Current liabilities
Operating accounts payable291,109

Short-term loans payable

4,900,000

Current portion of long-term loans payable

6,000,000

Accounts payable - other
Income taxes payable

162,482967

Accrued consumption taxes

54,533

Advances received

374,718

Other

44,048

Total current liabilities

11,827,860

Non-current liabilities
Long-term loans payable

18,300,000

Tenant leasehold and security deposits in trust

3,001,013

Total non-current liabilities

21,301,013

Total liabilities

33,128,874

Net assets
Unitholders’ equity
Unitholders’ capital

29,254,680

Surplus
Unappropriated retained earnings (undisposed loss)

829,067

Total surplus

829,067

Total unitholders’ equity
Total net assets
Total liabilities and net assets

30,083,747
30,083,747
63,212,621

(2) Statement of Income(Unit: thousand yen)
Fiscal period ended July 31, 2020
(From January 1, 2020
to July 31, 2020)
Operating revenue
Lease business revenue
Other lease business revenue
Total operating revenue

2,426,601
348,072
2,774,674

Operating expenses
Expenses related to rent business

1,300,497

Asset management fee

164,786

Asset custody service fees

3,678

General administrative service fees

26,242

Directors’ compensation

3,570

Merger-related expenses

162,174

Consumption tax non-deductible

10,278Other operating expenses

50,772

Total operating expenses

1,722,001

Operating income

1,052,672

Non-operating income
Interest income

23

Reversal of distributions payable

2,582

Total non-operating income

2,606

Non-operating expenses
Interest expenses

136,707

Borrowing expenses

88,578

Total non-operating expenses

225,286

Ordinary income

829,992

Income before income taxes

829,992

Income taxes-current

973

Income taxes-deferred

0

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

974
829,01849
829,067(3) Statement of Unitholders’ Equity
Fiscal period ended July 31, 2020 (from January 1, 2020 to July 31, 2020)(Unit: thousand yen)
Unitholders’ equity
Surplus

Balance at beginningof period
Changes to items
during period
Dividends fromsurplus
Net income
Total changes to items
during period
Balance at end ofperiod

Unitholders’capitalUnappropriatedretained earnings(undisposed loss)

Total surplus

Totalunitholders’equity29,254,680

704,679

704,679

29,959,359

29,959,359(704,630)(704,630)(704,630)(704,630)

829,018

829,018

829,018

829,018-

124,388

124,388

124,388

124,388

29,254,680

829,067

829,067

30,083,747

30,083,747

Total net assets(4) Statement of Cash Distribution
Fiscal period ended July 31, 2020
(from January 1, 2020 to July 31, 2020)
I. Unappropriated retained earnings
II. Cash distribution (Note)(Cash distribution per unit)
III. Retained earnings carried forward

829,067,621 yen
828,839,489 yen(2,489 yen)
228,132 yen
Based on Article 9 of the merger agreement concluded
between SSR and SAR on March 2, 2020, SAR is to pay a merger
consideration in the form of cash distribution per unit to theunitholders stated or recorded in the final unitholders’ registerof SSR calculated by dividing SSR’s distributable profit on theday immediately prior to August 1, 2020, the effective date ofthe merger, by the number of SSR investment units issued andoutstanding as on the same day (amounts less than one yen
Method of calculation of amount of cash rounded down). In line with this policy, the merger
distribution
consideration in the form of cash distribution per unit
calculated by dividing unappropriated retained earnings of
829,067,621 yen for the fiscal period ended July 31, 2020, by
the total number of investment units issued and outstanding of
333,001 units is 2,489 yen, and SAR is to pay 828,839,489 yen,
the value obtained by multiplying the figure for cash
distribution per unit of 2,489 yen by the total number ofinvestments issued and outstanding of 333,001 units, as themerger consideration.
(Note) “Cash distribution” is replaced by merger consideration.

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