January 12, 2018
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 Revision to Forecasts for Operating Results for the 4th Fiscal Period Ending January
31, 2018 and 5th Fiscal Period Ending July 31, 2018, and Forecasts for Operating Results andDistribution for the 6th Fiscal Period Ending January 31, 2019

Star Asia Investment Corporation (“SAR”) announces that it has decided to revise the operating results forecasts
for the 4th fiscal period ending January 31, 2018 (August 1, 2017 – January 31, 2018) and 5th fiscal period ending
July 31, 2018 (February 1, 2018 – July 31, 2018) described under “2. Management Status Forecast for Fiscal PeriodEnding January 31, 2018 (from August 1, 2017 to January 31, 2018) and Fiscal Period Ending July 31, 2018 (fromFebruary 1, 2018 to July 31, 2018)” in “Financial Report for Fiscal Period Ended July 31, 2017” announced on
September 13, 2017. SAR also announces the operating results forecasts and distribution forecasts for the 6th
fiscal period ending January 31, 2019 (August 1, 2018 – January 31, 2019) as described below.

1. Revision to forecasts for operating results for the fiscal period ending on January 31, 2018
OperatiOperating Ordinaryng
incomeincomerevenue(million(million(million
yen)
yen)
yen)
Previously
announced
forecasts
(A)

Note:

3,131

2,009

Net
income(millionyen)

Cashdistribution perunit (notincluding cash
distribution inexcess of
earnings) (yen)Cashdistribution
in excess ofearnings perunit (yen)Cashdistribution perunit (including
cash
distribution inexcess of
earnings) (yen)

1,783

4,039

0

4,039

1,859

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating torevision to forecasts for operating results for the 4th fiscal period ending January 31, 2018 and 5th fiscal
period ending July 31, 2018, and forecasts for operating results and distribution for the 6th fiscal period
ending January 31, 2019, and not for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referredto herein have not been, and will not be registered under the United States Securities Act of 1933, as amen ded(the “Securities Act”) and may not be offered or sold in the United States absent registration or an exemption
from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned transactions. This press release is not for publication, distribution
or release, directly or indirectly in or into the United States of America.

1Revised
forecasts
(B)

3,138

2,015

1,834

1,769

4,039

0

4,039

Change(C)=(B)-(A)

6

6

(24)

(13)

0

0

0

0.2%

0.3%

(1.3%)(0.8%)－－－

Rate of change(D)=(C)/(A)(Reference)

Expected number of investment units issued and outstanding as of the end of the fiscal period: 414,300 units(Refer to the “Investment units” in the assumptions described in the exhibit1.)

2. Revision to forecasts for operating results for the fiscal period ending July 31, 2018
OperatiOperating Ordinaryng
incomeincomerevenue(million(million(million
yen)
yen)
yen)

Net
income(millionyen)

Cashdistribution perunit (notincluding cash
distribution inexcess of
earnings) (yen)Cashdistribution
in excess ofearnings perunit (yen)Cashdistribution perunit (including
cash
distribution inexcess of
earnings) (yen)Previously
announced
forecasts
(A)

2,395

1,289

1,140

1,139

2,750

0

2,750

Revisedforecasts
(B)

2,751

1,504

1,231

1,230

2,750

0

2,750

Change(C)=(B)-(A)

356

215

91

91

0

0

0

Rate of change(D)=(C)/(A)

14.9%

16.7%

8.0%

8.0%

－

－

－

(Reference)
Expected number of investment units issued and outstanding as of the end of the fiscal period: 470,624 units(Refer to the “Investment units” in the assumptions described in the exhibit1.)

Note:This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating torevision to forecasts for operating results for the 4th fiscal period ending January 31, 2018 and 5th fiscal
period ending July 31, 2018, and forecasts for operating results and distribution for the 6th fiscal period
ending January 31, 2019, and not for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referredto herein have not been, and will not be registered under the United States Securities Act of 1933, as amen ded(the “Securities Act”) and may not be offered or sold in the United States absent registration or an exemption
from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned transactions. This press release is not for publication, distribution
or release, directly or indirectly in or into the United States of America.

23. Forecasts for operating results and distribution for the fiscal period ending January 31, 2019
Operating Operating
revenueincome(million(millionyen)
yen)

Ordinary
income(millionyen)Netincome(millionyen)

Cashdistribution
per unit (notincluding cash
distribution inexcess of
earnings) (yen)Cashdistribution
per unit(including
cash
distribution
in excess ofearnings)
(yen)

Cash
distribution
in excess ofearnings perunit (yen)Fiscal period
endingJanuary 31,

2,732

1,497

1,320

1,319

2,804

0

2,804

2019
(Reference)
Expected number of investment units issued and outstanding as of the end of the fiscal period: 470,624 units(Refer to the “Investment units” in the assumptions described in the exhibit1.)(Notes)
1.

2.

3.
4.

The above forecasts are current forecasts based on “Assumptions Underlying Operating Results Forecasts andDistribution Forecasts for Fiscal Periods Ending January 31, 2018, Ending July 31, 2018 and Ending January 31, 2019”
below and the actual operating revenue, operating income, ordinary income, net income, cash distribution per unit,
etc. may differ from them. In addition, SAR does not guarantee any actual cash distribution amount by announcing
the forecast figures.
Amounts of the adjusted distribution per unit excluding the matters considered by SAR as transient factors (“Adjusted
DPU”) for the fiscal period ending January 31, 2018, July 31, 2018 and January 31, 2019 and details of the calucuration
method for Adjusted DPU are as described in Exhibit 2.
The forecasts may be subject to revision when a disparity beyond a certain degree is expected between the above
forecasts and actual figures.
Amounts are rounded down to the nearest specified unit and percentage figures are rounded to the first decimal
place.

4. Reason for revisions and announcement
SAR revised the forecasts as the assumptions underlying operating results forecasts for the fiscal period
ending January 31, 2018 and ending July 31, 2018 described in “Financial Report for Fiscal Period Ended July
31, 2017” announced on September 13, 2017 have changed and not less than 10% of difference occurred in
the operating revenue for the fiscal period ending July 31, 2018 due to acquisition of real estate beneficiaryinterests in trust of six properties described in “Notice Concerning Acquisition of Real Estate BeneficiaryInterests in Trust and Lease Contract with New Tenants” announced today and issuance of new investment
units. SAR also announces the operating results forecasts and distribution forecasts for the fiscal period
ending January 31, 2019.
<Other Press Releases Announced as of Today>
Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating torevision to forecasts for operating results for the 4th fiscal period ending January 31, 2018 and 5th fiscal
period ending July 31, 2018, and forecasts for operating results and distribution for the 6th fiscal period
ending January 31, 2019, and not for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referredto herein have not been, and will not be registered under the United States Securities Act of 1933, as amen ded(the “Securities Act”) and may not be offered or sold in the United States absent registration or an exemption
from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned transactions. This press release is not for publication, distribution
or release, directly or indirectly in or into the United States of America.

3

- Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units- Notice Concerning Acquisition of Real Estate Beneficiary Interests in Trust and Lease Contract with New
Tenants- Notice Concerning Debt Financing- Supplemental Material on Press Releases (acquisition of properties through public offering) Announced as ofToday- Notice Concerning Execution of Agreement on Preferential Negotiation on HAKUSAN HOUSE* This material is distributed to the press club of the Tokyo Stock Exchange (Kabuto Club), the pressclub of the Ministry of Land, Infrastructure, Transport and Tourism, and the press club forconstruction trade publications of the Ministry of Land, Infrastructure, Transport and Tourism.
* Star Asia Investment Corporation website address: http://starasia-reit.com/en/

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating torevision to forecasts for operating results for the 4th fiscal period ending January 31, 2018 and 5th fiscal
period ending July 31, 2018, and forecasts for operating results and distribution for the 6th fiscal period
ending January 31, 2019, and not for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referredto herein have not been, and will not be registered under the United States Securities Act of 1933, as amen ded(the “Securities Act”) and may not be offered or sold in the United States absent registration or an exemption
from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned transactions. This press release is not for publication, distribution
or release, directly or indirectly in or into the United States of America.

4

[Exhibit1]
Assumptions Underlying Operating Results Forecasts and Distribution Forecasts
For Fiscal Periods Ending January 31, 2018, Ending July 31, 2018 and Ending January 31, 2019
Item

Assumptions

 4th Fiscal period ending January 31, 2018: August 1, 2017 – January 31, 2018 (184 days)
Calculation period  5th Fiscal period ending July 31, 2018: February 1, 2018 – July 31, 2018 (181 days)
 6th Fiscal period ending January 31, 2019: August 1, 2018 – January 31, 2019 (184 days)
 For the assets held by SAR as of today (real estate beneficiary interests in trust of the 23
properties and two mezzanine loan debts (hereafter referred to as the “Existing Assets”
in these assumptions. Note that, for the Existing Assets of real estate beneficiary interests
in trust hereafter referred to as the “Existing Assets (real estate, etc.),” and for the
Existing Assets of mezzanine loan debts referred to as the “Existing Assets (mezzanine)”
in these assumptions.), it is assumed that there will be no change in the investment assets(new asset acquisitions, sales of the Existing Assets, etc.) other than acquisition of realestate beneficiary interests in trust of the following six properties (the “Property Planned
Investment assets
for the Acquisition”) (hereinafter referred to as the “Acquisition” in these assumptons.)
through the end of the fiscal period ending January 31, 2019.
<Acquisition>
Property name: OFC-10 Nihonbashi Hamacho Park Building, RSC-08 Urban Park
Ryokuchi Koen, RSC-09 Urban Park Koenji, LGC-06 Funabashi Nishiura
Logistics I, LGC-07 Funabashi Nishiura Logistics II, LGC-08 Matsubushi
Logistics
Anticipated acquisition date: February 2, 2018
 In practice, this may vary due to changes in investment assets.

OperatingrevenueNote: Rent revenues from the Existing Assets (real estate, etc.) are calculated based on the rent
stated in the lease agreements that are effective as of today. Rent revenues from theProperties Planned for the Acquisition are calculated based on the information from theseller and rent stated in the lease agreements that will be effective as of the anticipateddate of acquisition taking factors such as market movement into consideration,
respectively.It is also assumed that no rent payments will be delinquent or declined bytenants.
 Interest revenues or dividend revenues from the Existing Assets (mezzanine) arecalculated based on outlines or trust agreements which define contents of the Existing
Assets (mezzanine) that are effective as of today. It is also assumed that no interest
payments or dividend payments will be declined.
 Gain on sales of Oak Minami-Azabu (quasi co-ownership interest: 51%) on August 1, 2017

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating torevision to forecasts for operating results for the 4th fiscal period ending January 31, 2018 and 5th fiscal
period ending July 31, 2018, and forecasts for operating results and distribution for the 6th fiscal period
ending January 31, 2019, and not for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referredto herein have not been, and will not be registered under the United States Securities Act of 1933, as amen ded(the “Securities Act”) and may not be offered or sold in the United States absent registration or an exemption
from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned transactions. This press release is not for publication, distribution
or release, directly or indirectly in or into the United States of America.

5

Item

Assumptions
is expected to be 771 million yen for the fiscal period ending January 31, 2018.

Operatingexpenses

 Among expenses related to rent business of the Existing Assets, which are the principal
operating expenses, expenses excluding depreciation are calculated on the basis ofhistorical data, reflecting variable factors of expenses.
 Fixed property taxes, city planning taxes and other public charges are expected to be 139
million yen for the fiscal period ending January 31, 2018, 175 million yen for the fiscal
period ending July 31, 2018 and 175 million yen for the fiscal period ending January 31,
2019.
For the Properties Planned for the Acquisition, fixed property taxes, city planning taxes
and other public charges in fiscal 2018 will be settled on a pro rata basis based on thenumber of days of ownership with the seller at the time of acquisition of the properties.
However, in the case of SAR, the settled amount will be included in the acquisition cost
and thus will not be recorded as expenses in the fiscal periods ending July 31, 2018 andending January 31, 2019. In addition, fixed property taxes, city planning taxes and otherpublic charges in fiscal 2019 for the Property Planned for the Acquisition will be recorded
as expenses from the fiscal period ending July 31, 2019.
 For the expenditures for repair and maintenance of buildings, 50 million yen is expected
for the fiscal period ending January 31, 2018, 80 million yen for the fiscal period ending
July 31, 2018 and 62 million yen for the fiscal period ending January 31, 2019 based on
repair and maintenance plans drawn up by the Star Asia Investment Management Co.,
Ltd.. However, the expenditures for repair and maintenance for the fiscal periods could
differ significantly from the estimated amounts, as expenditures may arise urgently due
to damage to buildings and such caused by unexpected factors, and because the variancein amounts generally tends to be significant from year to year and repair andmaintenance expenses do not arise regularly.
 Depreciation is calculated using the straight line method and is expected to be 306 million
yen for the fiscal period ending January 31, 2018, 356 million yen for the fiscal period
ending July 31, 2018 and 367 million yen for the fiscal period ending January 31, 2019.

NOI(Net Operating
Income) The total NOI of Existing Assets (real estate, etc.) is expected to be 1,832 million yen for
the fiscal period ending January 31, 2018, 2,113 million yen for the fiscal period ending
July 31, 2018 and 2,117 million yen for the fiscal period ending January 31, 2019.
 NOI is calculated by using the following calculation method.
NOI = rent revenue – rent expenses (excluding depreciation)

Non-operating
expenses Temporary expenses are expected to be 30 million yen for the fiscal period ending
January 31, 2018 and 7 million yen for the fiscal period ending July 31, 2018 as issuancecost of new investment units.

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating torevision to forecasts for operating results for the 4th fiscal period ending January 31, 2018 and 5th fiscal
period ending July 31, 2018, and forecasts for operating results and distribution for the 6th fiscal period
ending January 31, 2019, and not for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referredto herein have not been, and will not be registered under the United States Securities Act of 1933, as amen ded(the “Securities Act”) and may not be offered or sold in the United States absent registration or an exemption
from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned transactions. This press release is not for publication, distribution
or release, directly or indirectly in or into the United States of America.

6

Item

Assumptions
 Interest expense and other financial expenses are expected to total 150 million yen for
the fiscal period ending January 31, 2018, 266 million yen for the fiscal period ending July
31, 2018 and 176 million yen for the fiscal period ending January 31, 2019.
 Temporary expenses are expected to be 93 million yen for the fiscal period ending July
31, 2018 from new borrowings and refinancing as described in “Debt financing” below.

Debt financing

 The total amount of interest-bearing liabilities is assumed to be 37,350 million yen as ofthe end of the fiscal period ending January 31, 2018, 43,250 million yen as of the end of
the fiscal period ending July 31, 2018 and 43,040 million yen as of the end of the fiscal
period ending January 31, 2019.
 As of today, SAR has 37,350 million yen of outstanding borrowings. In addition to this,new borrowings totaling 6,160 million yen on February 2, 2018 from qualified
institutional investors defined in Article 2, paragraph 3, item 1 of the Financial
Instruments and Exchange Act is assumed.
 It is assumed to prepay 260 million yen by the end of the fiscal period ending July 31,
2018 by using the payment for issuance of the new investment units through third-party
allotment described in “Investment units” below.
 It is assumed to prepay 210 million yen by the end of the fiscal period ending January 31,
2019 by using consumption tax refund resulting from acquisition of the properties
planned for acquisition and payment of other various expenses.
 It is assumed that 7,300 million yen of loans payable due for repayment in the fiscal
period ending July 31, 2018 will be refinanced in the term.
 Excluding the above, it is assumed that there will be no new borrowings or repaymentsof existing borrowings including prepayments until the end of the fiscal period ending
January 31, 2019.

 It is assumed that, in addition to the total number of investment units issued andoutstanding as of today (414,300 units), all of the new investment units to be issued
through public offering (53,641 units) and all of the new investment units to be issued
through third-party allotment (up to 2,683 units), respectively resolved at the Board of
Directors meeting held today, are issued.
 Excluding the above, it is assumed that there will be no changes in the number of
Investment units
investment units issued due to additional issuance, etc. of new investment units throughthe end of the fiscal period ending January 31, 2019.
 Cash distribution per unit for the fiscal periods ending July 31, 2018 and ending January
31, 2019 (not including cash distribution in excess of earnings) is calculated based on the
expected number of investment units issued and outstanding as of the end of the fiscal
periods ending July 31, 2018 (470,624 units) including new investment units to be issued
Note:This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating torevision to forecasts for operating results for the 4th fiscal period ending January 31, 2018 and 5th fiscal
period ending July 31, 2018, and forecasts for operating results and distribution for the 6th fiscal period
ending January 31, 2019, and not for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referredto herein have not been, and will not be registered under the United States Securities Act of 1933, as amen ded(the “Securities Act”) and may not be offered or sold in the United States absent registration or an exemption
from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned transactions. This press release is not for publication, distribution
or release, directly or indirectly in or into the United States of America.

7

Item

Assumptions
described above (up to 56,324 units).
 Cash distribution per unit for the fiscal periods ending January 31, 2018 (not including
cash distribution in excess of earnings) is calculated based on the total number ofinvestment units issued and outstanding as of today.

 Cash distribution per unit (not including cash distribution in excess of earnings) is
calculated on the assumption described in the cash distribution policy stipulated in SAR’s
Articles of Incorporation.
 It is assumed that derivative transactions (interest rate swaps) will continue to be
conducted. However, It is assumed that deferred losses on hedges, which is an item of
deduction from net assets (those provided in Article 2, item 30 (b) of the Ordinance on
Accountings of Investment Corporations), is nonaccrual until the end the fiscal periods
ending January 31, 2019, and cash distribution per unit (not including cash distribution
in excess of earnings) will not be affected by changes in items of deduction from net
assets in the calculation.
 It is possible that the cash distribution per unit (not including cash distribution in excessof earnings) could change due to various factors, including changes in investment assets,changes in rent revenue accompanying changes in tenants, etc., or unexpected repair
Cash distribution
and maintenance, etc. In addition, cash distribution per unit (not including cash
per unit
distribution in excess of earnings) may be affected by changes in items of deduction from(not including
net assets.
cash distribution  The amount of anticipated voluntary reserve for the fiscal period ending January 31, 2018
in excess of
has changed to 96 million yen from 110 million yen described under “2. Management
earnings)
Status Forecast for Fiscal Period Ending January 31, 2018 (from August 1, 2017 to January
31, 2018) and Fiscal Period Ending July 31, 2018 (from February 1, 2018 to July 31, 2018”
in “Financial Report for Fiscal Period Ended July 31, 2017” announced on September 13,
2017 for taking account of assumption that the temporary expense for issuance of the
new investment units. After the change above, corporate taxes on voluntary reserve is
expected to be 64 million yen for the fiscal period ending January 31, 2018.
 For the fiscal periods ending July 31, 2018, net income is expected to increase by 91
million yen from the previous announcement of forecasts, however, it is expected to use
63 million yen of voluntary reserve for taking account of the effect on cash distribution
per unit from the increase in the assumed total number of investment units issued andoutstanding, and the temporary expenses from new borrowings and refinancing.
 In practice, the amount of voluntary reserve may change.
 Amounts of the adjusted distribution per unit excluding the matters considered by SAR
as transient factors (“Adjusted DPU”) are as described in Exhibit 2.
Note:This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating torevision to forecasts for operating results for the 4th fiscal period ending January 31, 2018 and 5th fiscal
period ending July 31, 2018, and forecasts for operating results and distribution for the 6th fiscal period
ending January 31, 2019, and not for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referredto herein have not been, and will not be registered under the United States Securities Act of 1933, as amen ded(the “Securities Act”) and may not be offered or sold in the United States absent registration or an exemption
from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned transactions. This press release is not for publication, distribution
or release, directly or indirectly in or into the United States of America.

8

Item

Assumptions

 It is assumed that there will be no existing balance of deferred losses on hedges, which
is an item of deduction from net assets, as described above. Of cash distribution in excess
Cash distributionof earnings, that attributable to allowance for temporary difference adjustment is notin excess ofscheduled at this point.
earnings per unit  In addition, of cash distribution in excess of earnings, that falling under the category ofcash distribution accompanying decrease in capital, etc. under tax law is not scheduled
at this point.

Other

Note:

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

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating torevision to forecasts for operating results for the 4th fiscal period ending January 31, 2018 and 5th fiscal
period ending July 31, 2018, and forecasts for operating results and distribution for the 6th fiscal period
ending January 31, 2019, and not for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referredto herein have not been, and will not be registered under the United States Securities Act of 1933, as amen ded(the “Securities Act”) and may not be offered or sold in the United States absent registration or an exemption
from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned transactions. This press release is not for publication, distribution
or release, directly or indirectly in or into the United States of America.

9

[Exhibit 2]Distribution per Unit ("DPU") and Adjusted Distribution per Unit ("Adjusted DPU")
(yen)
4,500

4,039

Ajusted DPU

inpact of transient factors

DPU

4,000
3,500

1,382

2,750

2,804

2,657

2,782

2,760

4th Fiscal PeriodEnding onJanuary 31, 2018
(forecast)

5th Fiscal PeriodEnding onJuly 31, 2018
(forecast)

3,000

44

2,500
2,000
1,500
1,000
500
(32)

0
(500)

6th Fiscal PeriodEnding onJanuary 31, 2019(new forecast)(*)
Adjusted DPU is a simulated DPU calculated by excluding the matters considered by SAR as transient factors, such as gain on
sales of real estate, etc. and equivalent of fixed property taxes, etc. that are not expensed due to being included in theacquisition cost of real estate, etc. as listed below.
Adjusted DPU is purely a simulation calculated by excluding the matters considered by SAR as transient factors and are neither
a forecast nor prospect relating to SAR’s distribution per unit for a given fiscal period. Accordingly, there is no guarantee that
the Adjusted DPU will ever be realized for any future, and SAR is not obligated to revise any of the Adjusted DPU regardless ofany changes in circumstances that may affect the above simulation.
① Gain on sales of real estate, etc.
② Equivalent of fixed property taxes, etc. that are not expensed due to being included in the acquisition cost of real estate,
etc.
Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating torevision to forecasts for operating results for the 4th fiscal period ending January 31, 2018 and 5th fiscal
period ending July 31, 2018, and forecasts for operating results and distribution for the 6th fiscal period
ending January 31, 2019, and not for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referredto herein have not been, and will not be registered under the United States Securities Act of 1933, as amen ded(the “Securities Act”) and may not be offered or sold in the United States absent registration or an exemption
from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned transactions. This press release is not for publication, distribution
or release, directly or indirectly in or into the United States of America.

10

③ Of the expenses related to financing, temporary expenses such as issuance cost of new investment units and arrangement
fees for borrowings from syndicates of lenders④ Expenditures such as asset management fees and taxes and public charges (non-deductible consumption tax, etc.) which
fluctuates as a result of ① through ③⑤ Amount of voluntary reserve as well as corporate taxes, etc. that increase with voluntary reserve.
⑥ Reversal of voluntary reserve.
In addition to the factors described above, there may be factors that temporarily affect the distribution per unit of SAR.

Note:

This press release does not in any way constitute any part of an offering of securities for investment. Thispress release has been prepared for the purpose of announcing to the public certain matters relating torevision to forecasts for operating results for the 4th fiscal period ending January 31, 2018 and 5th fiscal
period ending July 31, 2018, and forecasts for operating results and distribution for the 6th fiscal period
ending January 31, 2019, and not for the purpose of soliciting any investment, within or outside of Japan.
Additionally, this press release is not an offer of securities for sale in the United States. The securities referredto herein have not been, and will not be registered under the United States Securities Act of 1933, as amen ded(the “Securities Act”) and may not be offered or sold in the United States absent registration or an exemption
from registration under the Securities Act. No offering or sale of securities in the United States will be madein connection with the above-mentioned transactions. This press release is not for publication, distribution
or release, directly or indirectly in or into the United States of America.

11