September 26, 2019
To All Concerned Parties

REIT Securities Issuer
3-8-11 Kudan Minami, Chiyoda-ku, Tokyo
Sakura Sogo REIT Investment Corporation
Representative: Makoto Muranaka,
Executive Director:(Securities Code 3473)
Asset Management Company:
Sakura Real Estate Funds Management, Inc.
Representative
Makoto Muranaka,/ Inquires:
Representative Director andPresident
Tel:+81-3-6272-6608

Notice Concerning Revision to Operating and Distribution Forecast for the Fiscal PeriodEnding December 2019
Sakura Sogo REIT (hereinafter the “Investment Corporation”) announces revision to its operating
forecasts and distribution forecasts for the Seventh fiscal period (from July 1, 2019 to December 31,2019, hereinafter “FP7”) which were announced in the flash report for the sixth period dated August 15,
2019 as follows. In addition, the expenses such as professional fees need to be approved on REIT BOD.
1. Details of revision to operating forecasts and distribution forecasts
FP7

Previous forecast (A)Revised forecast (B)Increase/decrease（B-A）
Increase/decrease
rate

Operatingrevenue(mm yen)Operatingincome(mm yen)Ordinaryincome(mm yen)

Net income(mm yen)

2,317
2,380975852809676808675

63-123-133

2.7%-12.6%-16.4%

Distributions
per Unit(Yen)(excluding
Distributions in
Excess ofEarnings)

Distributions
in Excess ofEarnings
per Unit
(Yen)

2,427
2,02900-133

-398

0

-16.5%-16.4%-(Reference) FP5: number of investment units forecast on issue: 333,001 units, forecast net income per unit: 2,029 yen(Note 1) The operating forecasts and distribution forecasts for FP7 are figures based on currently available
information calculated based on the assumptions described in the attachment “Assumptions for Operating
Forecasts for FP7.” The actual operating revenue, operating income, ordinary income, net income anddistributions per unit excluding distributions in excess of earnings are subject to change due to factors suchas additional acquisition/disposition of real estate, fluctuations in rent income accompanying changes oftenants, changes in management environment including occurrence of unexpected repair, fluctuations ininterest rates, and issuance of new investment units in the future. In addition, the Investment Corporation
does not guarantee any actual cash distribution amount by announcing the forecast figures.
(Note 2) The forecasts remain subject to revision based on any material variance from assumptions attached.
(Note 3) Figures are rounded down. Percentages are rounded to the nearest decimal place.

2. Reason for the revision to operating forecasts and distribution forecasts
The Investment Corporation sent a cancelation notice of the merger agreement to Mirai REIT on
September 24, 2019. As a result of this, the Investment Corporation has determined it is not possible

to complete the merger with Mirai REIT on the assumed effective date of November 1, 2019.
The Investment Corporation had previously announced in the “Notice Concerning Forecast of
Operating Results for the Fiscal Period Ending October 2019 (the Final Fiscal Period) and Paymenton the Merger” dated August 5, 2019 a final payment on the Merger of 1,123 yen per unit. TheInvestment Corporation now announces the reforecast for FP7 based on the Merger not taking effectin FP7.
The main revisions to the forecast for FP7 are an increase in operating revenue of 35 million yen
associated with the acquisition of the PORTAL AKIHABARA, leasing up of NK Building and anincrease in operating expenses of 153 million yen incurred as a result of subsequent action taken toinvestigate and identify alternative proposals to that presented by Star Asia GroupThe forecast for FP7 and FP8 based on the result of unitholders meeting at August 30, 2019 will beannounced as soon as the Investment Corporation constructs.
This material is to be distributed to the Kabuto Club, the Ministry of Land, Infrastructure, Transport
and Tourism Press Club, and the Ministry of Land, Infrastructure, Transport and Tourism Press Clubfor construction trade publications of the Ministry of Land, Infrastructure, Transport and Tourism.
Sakura Sogo REIT website address: http://sakurasogoreit.com/en/

[Attachment]
Assumptions for Operating Forecasts for FP7

Item
Calculation period
Investment Assets

Assumptions
FP7 (From July 1, 2019 to December 31, 2019) (184 days)
 With regard to the real estate trust beneficiary interests of the properties(18 properties in total) (hereinafter the “Currently Owned Assets”), it isassumed that there will be no change (acquisition of new properties,disposition of portfolio properties, etc.) in FP7.
Operating revenueRental revenues from the Currently Owned Assets are calculated basedon the rents described in the lease agreements that are effective as oftoday.
The forecast of operating revenues is made on the assumption that notenants will delay or default rental payments.
The main items of operating expenses are as follows (rounded down to
the nearest specified unit; the same shall apply hereinafter):Expenses related toleasing business[Total]Management fees
Of which:
Maintenance andmanagement fee
Of which: Property
management fee
Repair expenses
Taxes and dues
Depreciation
Other than expenses
related to leasing
business [Total]
Asset managementfee
Non-deductible
consumption tax

Operating expensesFP71,106 million yen
364 million yen
282 million yen
81 million yen
41 million yen
191 million yen
257 million yen
645 million yen
173 million yen
17 million yen

Of expenses related to the leasing business of the Currently Owned
Assets, which are the main operating expenses, expenses other thandepreciation are calculated on a historical data basis based on
information provided by the previous owners of the Currently Owned
Assets and by reflecting variable factors.
Repair expenses for buildings are projected to be, based on the repair
plans drawn by the Asset Management Company, 41 million yen for FP7.
However, due to reasons such as repair expenses that may urgently
arise for building damages, etc. caused by unforeseeable factors, theamount generally varying considerably depending on the fiscal year, andbecause it is not an amount that arises periodically, each calculation
period’s repair expenses may differ materially from the forecast amount.
Depreciation calculated using the straight-line method, including
incidental expenses, are projected to be 257 million yen for FP7
respectively.
Upon acquisition of real estate or trust beneficiary interest having realestate as trust assets, the Investment Corporation includes the amountequivalent to fixed property taxes, city planning taxes, depreciable assets

Non-operating
expensesDebt financing

Investment unitsDistribution per Unit

Distributions in
Excess of Earnings
per Unit

Other

taxes, etc. (hereinafter the “Fixed Property Taxes, etc.”) that are settledwith previous owners on a pro rata based on the number of days ofownership in the acquisition cost during the fiscal year of the acquisition.
As to the Fixed Property Taxes, etc. on the owned real estate or trust
beneficiary interest having real estate as trust assets, the Investment
Corporation adopts the method to record the amount corresponding to
the calculation period, out of finalized taxation amount, as expenses
related to leasing business.
Operating expenses for the period include items which have resulted
directly from the request of the extraordinary unitholders meeting to beheld by Lion Partners and subsequent action taken to investigate andidentify alternative proposals to that presented by Star Asia Group. These
expenses include property due diligence 24 million yen, investor
relations/unitholder meetings 53 million yen, financial advisory 6 million
yen, and legal 70 million yen.
Interest expenses and other borrowing related expenses are projected
to be 175 million yen for FP7.
The total of interest-bearing liabilities outstanding is assumed to be
29,200 million yen at the end of FP7.
LTV at the end of FP7 is projected to be about 46.5%.
The following formula is used in the calculation of LTV.
LTV = Total interest-bearing liabilities ÷ Total assets
It is assumed that there will be no changes in the number of investment
units due to issuance of new investment units, etc. from the 333,001 units
of investment units issued and outstanding as of today through to the endof FP5.
Distribution per unit (excluding distribution in excess of earnings) iscalculated on the assumption that distribution will be made in accordancewith the cash distribution policy provided in the Articles of Incorporationof the Investment Corporation.
Distribution per unit (excluding distribution in excess of earnings) mayvary due to various factors, including fluctuations in leasing revenue
accompanying changes in assets under management, changes intenants and other events, and occurrence of unexpected repairs.
The Articles of Incorporation of the Investment Corporation enable it toprovide for distribution in excess of earnings but considering the ratio of
capital expenditures to depreciation and in an aim to conduct
conservative financial management, no distribution in excess of earnings
is scheduled to be implemented for the time being.
Forecasts assume there will be no material changes in laws, regulations,taxation systems, accounting standards, public listing requirements orrules of the investment trust association that could impact the forecastspresented herein.
Forecasts assume there will be no unforeseen material changes in general
economic and real estate market conditions.