March 16, 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 July
31, 2016 (December 1, 2015 – July 31, 2016) and January 31, 2017 (August 1, 2016 – January 31, 2017), as
described below.
Cash distribution
per unit

Cash distribution inexcess of earnings
per unit

Operatingrevenue

OperatingincomeOrdinary
income(million yen)(million yen)(million yen)

Fiscal period ending
July 31, 2016
(1st Period)

1,811

1,145

285

285

829

―

Fiscal period ending
January 31, 2017
(2nd Period)

1,952

1,185

1,050

1,050

3,046

―

Net Income(million yen)(not including cash
distribution in excessof earnings)
(yen)

(yen)

(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 propertiesalready-acquired (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-to-be-acquired(defined in the Attachment) on April 20, 2016 during the first fiscal period.
2. The above figures are calculated assuming the issue price of new investment units as 100,000 yen per unit.
3. The forecasts are the current figures calculated under the assumptions described in the Attachment “Assumptions for
Forecasts 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., theDisclaimer: 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. We caution investors to refer to Star Asia REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

1

actual number and issue price of new investment units to be issued, fluctuations in interest rates, and changes in otherconditions surrounding SAR, etc. in the future. In addition, SAR does not guarantee any actual cash distribution amount by
announcing the forecast figures.
4. The forecasts may be subject to revision when a disparity beyond a certain degree is expected between the above forecasts
and actual figures.
5. The scheduled date for the listing of SAR’s investment units on the Real Estate Investment Trust Securities Market of theTokyo Stock Exchange is April 20, 2016.
6. 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 the
Ministry 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. We caution investors to refer to Star Asia REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

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-already-acquired (defined below) 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-to-beacquired (defined below) on April 20, 2016.

Investment Assets

In addition to real estate trust beneficiary rights of the 11 properties (acquired on
January 14, 2016; the “Properties Already Acquired”), SAR plans to acquire real estate
trust beneficiary rights of the 7 properties (the “Properties to be Acquired”) on April
20, 2016 with the funds procured from the issuance of new investment units, which
was resolved at the Board of Directors meeting held today.
For making the forecasts, it is assumed that the Properties to be Acquired are acquiredon the date specified above and that there will be no change (new property
acquisitions, sales of existing properties, etc.) to the investment assets through the endof 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 Already Acquired and the Properties to be
Acquired, those from the Properties Already Acquired 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 to be Acquired are
calculated based on information obtained from the present owners and on thecontents of the lease agreements expected to be effective on the planned acquisition
dates, while both taking into account the market trends, etc.
As to operating revenue, it is assumed that no rent payments will be behind or declinedby tenants.

Operating Expenses

Among expenses related to rent business of the Properties Already Acquired andProperties to be Acquired, 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
Already Acquired, and based on the information obtained from the present owners for
the Properties to be Acquired. Upon transactions of real estate and other properties, it
is a general practice to calculate and reimburse the pro rata portion of fixed property
taxes, city planning taxes and other public charges based on the number of days ofownership to the previous owner and settle them at the time of acquisition. However,in case of SAR, the settled amount is included in the acquisition cost and thus is notrecorded as expenses in the fiscal periods ending July 31, 2016 and ending January 31,
2017. Therefore, fixed property taxes, city planning taxes and other public charges infiscal 2017 for the Properties Already Acquired and the Properties to be Acquired will
be recorded as expenses starting from the fiscal period ending July 2017. The fixed
property taxes, city planning taxes and other public charges to be included in theacquisition cost of the Properties Already Acquired and the Properties to be Acquired
are assumed to be 306 million yen. The effect of fixed property taxes, city planningtaxes 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.

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. We caution investors to refer to Star Asia REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

3

Item

Assumptions
For the expenditures for repair and maintenance of buildings, 23 million yen is expected
for 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
periods could differ significantly from the estimated amounts, as expenditures may
arise urgently due to damages to buildings and such caused by unexpected factors, andbecause the variance in amounts generally tends to be significant from year to year andas well as repair 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
initial expenses 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. In
addition, 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 in total are expected to be 604 million yen for
the fiscal period ending July 31, 2016 and 135 million yen for the fiscal period ending
January 31, 2017.

Debt Financing

Total liabilities is assumed to be 32,600 million yen at the end of the fiscal period ending
July 31, 2016 and 29,918 million yen at the end of the fiscal period ending January 31,
2017.
As of today, SAR holds borrowings of 31,756 million yen borrowed on January 14, 2016as acquisition fund, etc. for the Properties Already Acquired (43,740 million yen), anddebt of 4,574 million yen in subordinate investment corporation bonds issued on thesame day. For this debt, SAR plans to take out new borrowings of 32,600 million yen in
total from the qualified institutional investors defined under Article 2 Paragraph 3 item
1 of Financial Instruments and Exchange Act on April 20, 2016. With the newborrowings and part of proceeds procured from the issuance of new investment units
as resource, it is assumed repayment of the entire loan amount of 31,756 million yen
and retirement by purchase will be conducted.
LTV is expected to be around 47.55% at the end of the fiscal period ending July 31, 2016
and around 44.92% 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 issue amount of new investment units to be issued thistime.

Investment Units

It is assumed that, in addition to 97,000 investment units issued and outstanding as oftoday, all of the investment units (247,700 units, which is the maximum number)scheduled to be newly issued, will be issued through the issuance of new investment
units (235,900 units) and 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 today.
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) is
calculated 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

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. We caution investors to refer to Star Asia REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

4

Item

Assumptions
January 31, 2017 (344,700 units), including 247,700 units which is the maximum
number of investment units to be newly issued as described above.

Cash Distribution
per Unit(not including cash
distribution inexcess of earnings)

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 in excessof earnings) could change due to various factors, including changes in investment
assets, changes in rental revenue accompanying changes in tenants, etc., andunexpected 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 as
expenses in the third fiscal period and onward.)

Cash Distribution in
Excess of Earnings
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.

Other

Forecasts are based on the assumption 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. We caution investors to refer to Star Asia REIT’s prospectus and notice of amendments thereto, if any,
without fail and to undertake investment at their own decision and responsibility.

5