August 1, 2022
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
Revision to Forecasts for Operating Results for the 14th Fiscal Period Ending January 31, 2023
and Forecasts for Operating Results and Distribution for the 15th Fiscal Period Ending July 31, 2023
Star Asia Investment Corporation (“SAR”) announces that it has decided to revise the operating results forecasts
for the 14th fiscal period ending January 31, 2023 (August 1, 2022 to January 31, 2023) announced in the “(REIT)
Financial Report for Fiscal Period Ended January 31, 2022” dated March 16, 2022 (the “Previously Announced
Forecasts”). SAR also newly announces the operating results forecasts and distribution forecasts for the 15th fiscal
period ending July 31, 2023 (February 1, 2023 to July 31, 2023) as described below.
There are no changes made to the forecasts for operating results and distribution for the 13th fiscal period ended
July 31, 2022 (February 1, 2022 to July 31, 2022) which was announced on March 16, 2022. SAR plans to announce
the financial results for the fiscal period ended July 31, 2022 (February 1, 2022 to July 31, 2022) on September 13,
2022.

1. Revision to forecasts for operating results for the fiscal period ending January 31, 2023

Previous
Forecasts
(A)

Note:

Operatingrevenue(million yen)

Operatingincome(million yen)

Ordinary
income(million yen)

Net income(million yen)Cashdistribution
per unit (notincluding cash
distribution inexcess of
earnings) (yen)

5,995

3,031

2,552

2,552

1,476

Cash
distribution
in excess ofearnings perunit (yen)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 14th fiscal period ending January 31, 2023 and forecasts for
operating results and distribution for the 15th fiscal period ending July 31, 2023, and not for the purpose ofsoliciting 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 referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (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 made in 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Revised
Forecasts
(B)

6,387

3,263

2,686

2,686

1,476

0

Amount ofchange(C)=(B)-(A)

392

232

134

134

0

0

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

6.6%

7.7%

5.3%

5.3%

－

－

(Reference)
Expected number of investment units issued and outstanding as of the end of the fiscal period: 1,921,689 units(Refer to the “Investment units” in the assumptions described in Exhibit 1.)

2. Forecasts for operating results and distribution for the fiscal period ending July 31, 2023

Forecasts

Operatingrevenue(million yen)

Operatingincome(million yen)

Ordinary
income(million yen)

Net income(million yen)Cashdistribution
per unit (notincluding cash
distribution inexcess of
earnings) (yen)

6,523

3,302

2,766

2,766

1,485

Cash
distribution
in excess ofearnings perunit (yen)(Reference)
Expected number of investment units issued and outstanding as of the end of the fiscal period: 1,921,689 units(Refer to the “Investment units” in the assumptions described in Exhibit 1.)(Notes)
1.

2.
3.

Note:

The above forecasts are current forecasts based on “Assumptions Underlying Operating Results Forecasts andDistributions Forecasts For Fiscal Periods Ending January 31, 2023 and Ending July 31, 2023” described in Exhibit 1
and the actual operating revenue, operating income, ordinary income, net income, cash distribution per unit (notincluding cash distribution in excess of earnings) and cash distribution in excess of earnings per unit may fluctuatefrom the forecasts, due to the deviation in assumptions caused by factors such as the future acquisition or sale of realestate properties etc., the transition of the real estate market, changes to rent income due to the moving of tenants,changes to the operational environment including occurrence of unexpected repairs, changes to the number or issue
price of actually issued new investment units, change of interest rate, further issuances of new investment units, orchanges to other conditions surrounding SAR. In addition, the above forecasts are not in any way a guarantee thatthe above cash distribution will be made.
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.
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 14th fiscal period ending January 31, 2023 and forecasts for
operating results and distribution for the 15th fiscal period ending July 31, 2023, and not for the purpose ofsoliciting 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 referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (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 made in 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.

203. Reason for the revisions and announcement
Due to the acquisition of real estate beneficiary interests in trust for three properties described in “NoticeConcerning Acquisition of Real Estate Beneficiary Interests in Trust and entering into Lease Contracts”, theissuance of new investment units as announced in “Notice Concerning Issuance of New Investment Units andSecondary Offering of Investment Units”, and the new debt financings announced in “Notice Concerning Debt
Financing (Green Loan)”, each of which was announced today, certain changes have been made to theassumptions underlying the operating results forecasts for the fiscal period ending January 31, 2023 as
described in “(REIT) Financial Report for Fiscal Period Ended January 31, 2022” dated March 16, 2022. In suchcontext, from the standpoint of reflecting such changes, SAR announces revisions to the forecasts for theoperating results for the fiscal period ending January 31, 2023, and also newly announces the operating
results forecasts and distribution forecasts for the fiscal period ending July 31, 2023.
<Reference>
Other press releases Announced Today
・Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units
・Notice Concerning Acquisition of Real Estate Beneficiary Interests in Trust and entering into Lease
Contracts
・Notice Concerning Debt Financing (Green Loan)・Notice Concerning Partial Amendment to the Management Guidelines of the Asset Manager
・Notice Concerning Acquisition of Assessment Certification in CASBEE for Real Estate・Notice Concerning Change of Names of Properties*SAR HP URL: 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 14th fiscal period ending January 31, 2023 and forecasts for
operating results and distribution for the 15th fiscal period ending July 31, 2023, and not for the purpose ofsoliciting 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 referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (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 made in 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

[Exhibit1]
Assumptions Underlying Operating Results Forecasts and Distributions Forecasts
For Fiscal Periods Ending January 31, 2023 and Ending July 31, 2023
Item

Assumptions

Calculation period➢ 14th Fiscal period ending January 31, 2023: August 1, 2022 – January 31, 2023 (184 days)➢ 15th Fiscal period ending July 31, 2023: February 1, 2023 – July 31, 2023 (181 days)

Assets undermanagement➢ It will be assumed that in addition to the assets held by SAR as of today (real estate
beneficiary interests in trust over 60 properties, 2 mezzanine loan debts (collectively
referred to as “Currently Held Assets”, with those in the form of real estate trust
beneficiary interests being referred to as “Currently Held Assets (Real Estate)” , those in
the form of mezzanine loan debt being referred to as “Currently Held Assets(Mezzanine)” , and the real estate beneficial interests in trust over the 3 properties
described below (the “Assets to be Acquired”) will be acquired (the “Acquisition”).
<Acquisition>
Property Name: Urban Center Fujisawa, abeno nini (Retail), abeno nini (Hotel)
Anticipated Acquisition Date: August 18, 2022
➢ It is assumed that, other than the Acquisition, there will be no change in investment
assets (acquisitions of new assets, sales of the Currently Held Assets, etc.) up to the endof the fiscal period ending July 31, 2023.
➢ In practice, assets under management may vary due to changes in investment assets.

Operatingrevenue➢ Rent revenues from the Currently Held Assets (Real Estate) are calculated based on therents stated in the lease agreements that are effective as of today, and rent revenues
from the Assets to be Acquired are calculated based on information provided by theseller and rents stated in the lease agreements that are expected to be effective as of the
anticipated acquisition date, with taking into consideration market trends, etc. It is also
assumed that no rent payments will be delinquent or defaulted by tenants.
➢ Interest revenues or dividend revenues from the Currently Held Assets (Mezzanine) arecalculated based on the terms and conditions, the loan agreement, or trust agreement
effective as of today which define details of the Currently Held Assets (Mezzanine). It isalso assumed that no interest payments or dividend payments will be defaulted.

Operatingexpenses➢ Among the rent business-related expenses which are the main operating expenses, allsuch expenses other than depreciation expenses are calculated based on historical dataof actual expenses, and reflecting variable factors for expenses.
➢ Fixed property taxes, city planning taxes and other public charges are expected to be 457
million yen for the fiscal period ending January 31, 2023 and 490 million yen for the fiscal

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 14th fiscal period ending January 31, 2023 and forecasts for
operating results and distribution for the 15th fiscal period ending July 31, 2023, and not for the purpose ofsoliciting 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 referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (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 made in 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

Item

Assumptions
period ending July 31, 2023.
For the Assets to be Acquired, such taxes etc. are expected to be settled with the seller
on a pro-rata basis based on the number of days of ownership at the time of acquisitionof the properties. However, SAR will include such settled amount in the acquisition cost,
and thus SAR will not record these items as expenses in the fiscal period ending January
31, 2023. It is planned that fixed property taxes, city planning taxes and other publiccharges for the Assets to be Acquired will be recorded as expenses beginning from thefiscal period ending July 31, 2023.
➢ For the expenditures for repair and maintenance of buildings, based on repair andmaintenance plans drawn up by the Star Asia Investment Management Co., Ltd., 209
million yen is expected for the fiscal period ending January 31, 2023 and 218 million yen
for the fiscal period ending July 31, 2023. However, the actual expenditures for repair
and maintenance for the fiscal periods could differ significantly from the estimatedamounts, as expenditures may arise urgently due to damage to buildings caused by
unexpected factors, and generally speaking such expenditures tend to vary significantly
from year to year and also are not amounts which arise regularly.
➢ Depreciation expenses including ancillary costs are calculated using the straight-line
method, and is expected to be 734 million yen for the fiscal period ending January 31,
2023 and 749 million yen for the fiscal period ending July 31, 2023.

NOI(Net Operating
Income)➢ The total portfolio NOI is expected to be 4,559 million yen for the fiscal period ending
January 31, 2023 and 4,607 million yen for the fiscal period ending July 31, 2023.
➢ NOI is calculated by using the following calculation method.
NOI = rent revenue – rent expenses (excluding depreciation)

Non-operating
expenses➢ As issuance cost of new investment units, non-operating expenses are expected to be 13
million yen for the fiscal period ending January 31, 2023 and 13 million yen for the fiscal
period ending July 31, 2023.
➢ The total amount of interest expense and other financial expenses are expected to be
558 million yen for the fiscal period ending January 31, 2023 and 517 million yen for the
fiscal period ending July 31, 2023.
➢ The total amount of interest expense on investment corporation bonds and otherinvestment corporation bond issuance costs are expected to be 4 million yen for the fiscal
period ending January 31, 2023 and 4 million yen for the fiscal period ending July 31,
2023.

Debt financing➢ The total amount of interest-bearing liabilities is assumed to be 96,640 million yen as ofthe end of the fiscal period ending January 31, 2023 and 96,640 million yen as of the endof the fiscal period ending July 31, 2023.

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 14th fiscal period ending January 31, 2023 and forecasts for
operating results and distribution for the 15th fiscal period ending July 31, 2023, and not for the purpose ofsoliciting 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 referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (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 made in 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➢ As of today, SAR has 88,640 million yen of outstanding borrowings and 1,000 million yen
of outstanding investment corporation bond. In addition, new borrowings totaling 7,000
million yen on August 2022 from qualified institutional investors as defined in Article 2,paragraph 3, item 1 of the Financial Instruments and Exchange Act is assumed.
➢ It is assumed that 16,390 million yen of loans payable which are due for repayment in
the fiscal periods ending January 31, 2023 and July 31, 2023 will be refinanced.
➢ It is assumed that, except those stated above, there will be no new borrowings or
repayments of existing borrowings including prepayments and investment corporationbond until the end of the fiscal period ending July 31, 2023.

➢ It is assumed that a total of 1,921,689 units, which is the total number of investment
units issued and outstanding as of today (1,789,389 units), all of the new investment units
to be issued through public offering (132,300 units) which was approved at the Board of
Investment units
Directors meeting held today will be issued.
➢ It is assumed that, except those stated above, there will be no changes in the number ofinvestment units issued and outstanding, due to additional issuance, etc. of new
investment units up to the end of the fiscal period ending July 31, 2023.
➢ Cash distribution per unit (not including cash distribution in excess of earnings) is
calculated based on the money distribution policy set forth in SAR’s articles ofincorporation.
➢ With respect to temporary difference adjustment reserve, SAR’s policy is that 1% or moreof the initial reserve amount will continue to be reversed every fiscal period, and be
utilized mainly to mitigate negative impact on cash distribution from temporary decrease
in income or temporarily incurred expenses, and also to avoid incurring tax expenses
Cash distribution
such as corporate taxes etc. arising due to the mismatch of tax and accounting
per unit
treatments.
(not including➢ As to cash distribution for the fiscal period ending January 31, 2023, it is assumed that acash distribution
total of 2,836 million yen (1,476 yen per unit) will be distributed, which is the total ofin excess of
estimated net income for the fiscal period of 2,686 million yen plus the expected reversal
earnings)
amount from the temporary difference adjustment reserve of 88 million yen, and a
portion of profit carried forward from the previous period of 61 million yen. As to cash
distribution for the fiscal period ending July 31, 2023, it is assumed that a total of 2,853
million yen (1,485 yen per unit) will be distributed which consists of estimated net
income for the fiscal period of 2,766 million yen plus the expected reversal amount fromthe temporary difference adjustment reserve of 88 million yen.
➢ The distribution per unit may change due to various factors including changes to theassets under management, changes to rent revenues given movements etc. of tenants,
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 14th fiscal period ending January 31, 2023 and forecasts for
operating results and distribution for the 15th fiscal period ending July 31, 2023, and not for the purpose ofsoliciting 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 referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (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 made in 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

Assumptionsor the occurrence of unexpected repairs.

Cash distribution ➢ SAR has no plan to make distribution in excess of earnings as of the date of thisin excess ofannouncement.
earnings per unit

OthersNote:➢ It is assumed that no amendments affecting the above forecast numbers will be made to
relevant laws and regulations, tax policies, accounting standards, listing rules, and therules of investment trusts association, etc.
➢ It is assumed that there will be no unforeseen material change in general economic
conditions or 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 14th fiscal period ending January 31, 2023 and forecasts for
operating results and distribution for the 15th fiscal period ending July 31, 2023, and not for the purpose ofsoliciting 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 referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (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 made in 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

[Exhibit2]<Reference> Transition of Distributitons Per Unit (“DPU”) and Earnings Per Unit (“EPU”)
The followings are forecast DPU and forecast EPU for fiscal period (“FP”) ended July 31, 2022 and FP ending
January 31, 2023, which were announced in the “(REIT) Financial Report for Fiscal Period Ended January 31,2022” dated March 16, 2022 and forecast DPU and forecast EPU for FP ending January 31, 2023 and FP ending
July 31, 2023, announced today.
<Transition of Distributions Per Unit and Earnings Per Unit>(Notes)
1.

2.

3.

Note:

Refer to “(REIT) Financial Report for Fiscal Period Ended January 31, 2022” dated March 16, 2022 forassumptions underlying forecast for FP ended July 31, 2022 and assumptions underlying previous
forecast for FP ending January 31, 2023.
Refer to Exhibit1 “Assumptions Underlying Operating Results Forecasts and Distributions Forecasts For
Fiscal Periods Ending January 31, 2023 and Ending July 31, 2023” for assumptions underlying revised
forecast DPU for FP ending January 31, 2023 and assumptions underlying forecast DPU for FP ending
July 31, 2023. The forecast EPU is obtained by dividing the forecast net income by forecast number ofinvestment units issued at the end of the period (1,921,689 units) (refer to column “Investment units” of
Exhibit1 “Assumptions Underlying Operating Results Forecasts and Distributions Forecasts For Fiscal
Periods Ending January 31, 2023 and Ending July 31, 2023”).
The amount of “Utilized Internal Reserves Per Unit” is an estimated amount as of today, and the actual
amount may differ from such stated amount.
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 14th fiscal period ending January 31, 2023 and forecasts for
operating results and distribution for the 15th fiscal period ending July 31, 2023, and not for the purpose ofsoliciting 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 referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (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 made in 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

This is an English translation of the announcement in Japanese dated August 1, 2022. However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

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 14th fiscal period ending January 31, 2023 and forecasts for
operating results and distribution for the 15th fiscal period ending July 31, 2023, and not for the purpose ofsoliciting 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 referred to herein have not been, and will not beregistered under the United States Securities Act of 1933, as amended (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 made in 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