August 21, 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 6th Fiscal Period Ending January
31, 2019 and Forecasts for Operating Results andDistribution for the 7th Fiscal Period Ending July 31, 2019
Star Asia Investment Corporation (“SAR”) announces that it has decided to revise the operating results forecasts
for the 6th fiscal period ending January 31, 2019 (August 1, 2018 to January 31, 2019) described under "2.
Revision to forecasts for operating results and distribution for the fiscal period ending January 31, 2019" in“Notice Concerning Revision to Forecasts for Operating Results and Distribution for the 5th Fiscal Period Ending
July 31, 2018 and 6th Fiscal Period Ending January 31, 2019” announced on July 23, 2018 (“Previous Forecast”).
SAR also newly announces the operating results forecasts and distribution forecasts for the 7th fiscal period
ending July 31, 2019 (February 1, 2019 to July 31, 2019) as described below.

1. Revision to forecasts for operating results for the fiscal period ending January 31, 2019
OperatingOperating

OrdinaryNet

revenueincomeincomeincome(million(million(million(million

yen)

yen)

yen)

yen)

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

Cash
distribution
in excess ofearnings perunit (yen)Previous
Forecasts

3,154

1,863

1,685

1,684

3,580

0

3,580

3,795

2,298

1,936

1,936

3,580

0

3,580

640

434

251

251

0

0

0

(A)
Revised
Forecast(B)
Change(C)=(B)-(A)Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release ha s
been prepared for the purpose of announcing to the public certain matters relating to revision to forecasts for operating
results for 6th fiscal period ending January 31, 2019 and forecasts for operating results and distribution for the 7th fiscal
period ending July 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 referred to herein have not be en,
and will not be registered 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. Thispress release is not for publication, distribution or release, directly or indirectly in or into the United States of America .

1

Rate ofchange

20.3%

23.3%

14.9%

14.9%

0%

0%

0%

(D)=(C)/(A)(Reference)
Expected number of investment units issued and outstanding as of the end of the fiscal period: 540,824 units(Refer to the “Investment units” in the assumptions described in the Exhibit.)

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

3,700

2,130

1,839

1,838

3,400

0

3,400

July 31, 2019
(Reference)
Expected number of investment units issued and outstanding as of the end of the fiscal period: 540,824 units(Refer to the “Investment units” in the assumptions described in the Exhibit.)(Notes)1.

2.
3.

The above forecasts are current forecasts based on “Assumptions Underlying Operating Results Forecasts andDistribution Forecasts For Fiscal Periods Ending January 31, 2019 and Ending July 31, 2019” as attached as Exhibit
hereto and the actual operating revenue, operating income, ordinary income, net income, cash distribution per unit
(not including cash distribution in excess of earnings) and cash distribution in excess of earnings per unit may
fluctuate from the forecasts due to the deviation in assumptions caused by factors such as future acquisitions andsales of real estate, changes in rent income as a result of changes in the tenants, changes in the investment
management environment such as the unexpected need to perform repairs, number and price of investment units
which will be newly issued and fluctuations in interest rates and future issuance of investment units and otherchanges in environment surrounding SAR, among other factors. In addition, SAR does not guarantee any actual cash
distribution amount by announcing the forecast figures.
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.

3. Reason for revisions and announcement
SAR revised the forecasts as the assumptions underlying operating results forecasts for the fiscal period
ending January 31, 2019 described in “Notice Concerning Revision to Forecasts for Operating Results andDistribution for the 5th Fiscal Period Ending July 31, 2018 and 6th Fiscal Period Ending January 31, 2019”
announced on July 23, 2018 have changed and not less than 10% of difference occurred in the forecasts for
operating revenue for the fiscal period ending January 31, 2019 due to the acquisition of real estate
beneficiary interests in five properties described in “Notice Concerning Acquisition and Lease Contract with
Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release ha s
been prepared for the purpose of announcing to the public certain matters relating to revision to forecasts for operating
results for 6th fiscal period ending January 31, 2019 and forecasts for operating results and distribution for the 7th fiscal
period ending July 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 referred to herein have not be en,
and will not be registered 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. Thispress release is not for publication, distribution or release, directly or indirectly in or into the United States of America .

2

New Tenants, and Transfer of Real Estate Beneficiary Interests in Trust” announced today, due to thedetermination of scheduled date of one property described in “Notice Concerning Determination of
Scheduled Date of Assets Acquisition and Changes in Funds for the Acquisition” announced today (for moredetails, please refer to “Notice Concerning Acquisition and Transfer (Asset Replacement) of Real Estate
Beneficiary Interests in Trust” announced on July 23, 2018) (Acquisition of these six properties ishereinafter collectively referred to as the “Acquisition” and these six properties are hereinafter referred toas “Assets to be Acquired”), and due to the asset transfer of one property described in “Notice Concerning
Acquisition and Lease Contract with New Tenants, and Transfer of Real Estate Beneficiary Interests in Trust”
announced today (together with the transfer of one property described in “Notice Concerning Acquisition
and Transfer (Asset Replacement) of Real Estate Beneficiary Interests in Trust” announced on July 23, 2018,
hereinafter collectively referred to as the “Transfer”), issuance of new investment units and other relevant
matters described in “Notice Concerning Issuance of New Investment Units and Secondary Offering ofInvestment Units” announced today and new borrowings described in “Notice Concerning Debt Financing”
announced today. SAR also newly announces the operating results forecasts and distribution forecasts forthe fiscal period ending July 31, 2019.
Furthermore, the actual operating results and distribution for the fiscal period ended July 31, 2018 (fromFebruary 1, 2018 to July 31, 2018) are scheduled to be announced in Financial Report for the 5th Fiscal
Period Ended July 31, 2018 to be announced in mid-September 2018.

4. Other
The above forecasts for the fiscal period ending July 31, 2019 incorporate factors to cause a temporary
increase in profits including the estimated capital gains on the Transfer described in “Operating revenue” of
Exhibit. Cash distribution per unit (not including cash distribution in excess of earnings) for the 7th fiscal
period ending July 31, 2019 is expected to be 2,831 yen based on the assumption that gain on sales, thesaid factors of temporary increased profits are excluded from the calculation.
<Reference>
Other Press Releases Announced as of Today- Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units- Notice Concerning Acquisition and Lease Contract with New Tenants, and Transfer of Real Estate BeneficiaryInterests in Trust- Notice Concerning Debt Financing- Notice Concerning Partial Amendments to the Management Guidelines of the Asset Manager- Notice Concerning Execution of Agreement on Preferential Negotiation Rights to secure Acquisition Pipeline
for Future Growth- Notice Concerning Determination of the Planned Acquisition Date and Change of the Funds for Acquisition- Supplementary Material on Press Releases (Acquisition of Properties through Public Offering) Announced as ofToday* 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/
Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release ha s
been prepared for the purpose of announcing to the public certain matters relating to revision to forecasts for operating
results for 6th fiscal period ending January 31, 2019 and forecasts for operating results and distribution for the 7th fiscal
period ending July 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 referred to herein have not be en,
and will not be registered 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. Thispress release is not for publication, distribution or release, directly or indirectly in or into the United States of America .

3

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

Assumptions

Calculation period

 6th Fiscal period ending January 31, 2019: August 1, 2018 – January 31, 2019 (184 days)
 7th Fiscal period ending July 31, 2019: February 1, 2019 – July 31, 2019 (181 days)For the real estate beneficiary interest in trust of the 29 properties (referred to as the“Existing Properties (real estate, etc.)” hereinafter in these assumptions) and 2
Mezzanine Loan Debt (referred to as the “Existing Properties (mezzanine)” hereinafterin these assumptions) held by SAR as of today (hereinafter collectively referred to as
the “Existing Properties”), it is assumed there will be no change (new property
acquisitions, sales of the Existing Properties, etc.) other than “Acquisition” and“Transfer” as described below to the investment assets through the end of the fiscal
period ending July 31, 2019.
<Acquisition>
Property Name: Amusement Media Academy Honkan, Higashi-Kobe Center
Building, Best Western Tokyo Nishikasai Grande, GLANSIT
Investment assets
AKIHABARA, Hotel WBF Fukuoka Tenjin Minami, Hotel WBF Art
Stay Namba
Anticipated Acquisition Date: September 6, 2018
<Transfer>
Property Name: Hakata-eki Higashi 113 Building
Anticipated Transfer Date:
1st (49% quasi-co-ownership interest) December 3, 2018
2nd (51% quasi-co-ownership interest) February 1, 2019
Property Name: Urban Park Shin-Yokohama
Anticipated Transfer Date: October 11, 2018
 In practice, this may vary due to changes in investment assets.

Operatingrevenue Rent revenues from the Existing Properties (real estate, etc.) are calculated based on
the rent stated in the lease agreements that are effective as of today. Rent revenue
from the Properties Planned for the Acquisition is calculated based on the informationfrom the seller and rent stated in the lease agreements that will be effective as of the
anticipated acquisition date, etc., taking factors such as market movement into
consideration, respectively. It is also assumed that there will be no arrears or
non-payment of rent by tenants.
 Interest revenues or dividend revenues from the Existing Properties (mezzanine) arecalculated based on outlines or trust agreements which define contents of the Existing
Properties (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 Hakata-eki Higashi 113 Building is expected to be 401 million yen for

Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release ha s
been prepared for the purpose of announcing to the public certain matters relating to revision to forecasts for operating
results for 6th fiscal period ending January 31, 2019 and forecasts for operating results and distribution for the 7th fiscal
period ending July 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 referred to herein have not be en,
and will not be registered 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. Thispress release is not for publication, distribution or release, directly or indirectly in or into the United States of America .

4

Item

Assumptions
the fiscal period ending January 31, 2019 and 418 million yen for the fiscal period
ending July 31, 2019 and gain on sales of Urban Park Shin-Yokohama is expected to be
177 million yen for the fiscal period ending January 31, 2019. In practice, this may vary
due to the success or failure of transaction, transfer price and transfer date, among
other factors.

Operatingexpenses

 Among expenses related to rent business of the Existing Properties (real estate, etc.),
which are the principal operating expenses, expenses excluding depreciation arecalculated on the basis of historical data, reflecting variable factors of expenses.
 Fixed property taxes, city planning taxes and other public charges are expected to be
175 million yen in fiscal period ending January 31, 2019 and to be 238 million yen in
fiscal period ending July 31, 2019. For the Properties Planned for the Acquisition, fixed
property taxes, city planning taxes and other public charges in fiscal year of 2018 will besettled on a pro rata basis based on the number 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 January 31, 2019 and ending July 31, 2019. Fixed
property taxes, city planning taxes and other public charges for the Properties Planned
for the Acquisition are expected to be 48 million yen in fiscal period ending January 31,
2020.
 For the expenditures for repair and maintenance of buildings, 81 million yen is
expected for the fiscal period ending January 31, 2019 and 80 million yen is expected
for the fiscal period ending July 31, 2019 based on repair and maintenance plans drawn
up by Star Asia Investment Management Co., Ltd. However, the 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 and suchcaused by unexpected factors, and because the variance in amounts generally tends tobe significant from year to year and repair and maintenance expenses do not arise
regularly.
 Depreciation is calculated using the straight line method including ancillary costs and is
expected to be 415 million yen for the fiscal period ending January 31, 2019 and 427
million yen for the fiscal period ending July 31, 2019.

NOI(Net Operating
Income) The total NOI of Existing Properties (real estate, etc.) is expected to be 2,481 million yen
for the fiscal period ending January 31, 2019 and 2,478 million yen for the fiscal period
ending July 31, 2019.
 NOI is calculated by using the following calculation method.
NOI = rent revenue – rent expenses (excluding depreciation)

Non-operating
expenses Temporary expenses in issuance of new investment units for the fiscal period ending
January 31, 2019 are expected to be 50 million yen.
 Interest expense and other financial expenses are expected to be 311 million yen for
the fiscal period ending January 31, 2019 and 289 million yen for the fiscal period

Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release ha s
been prepared for the purpose of announcing to the public certain matters relating to revision to forecasts for operating
results for 6th fiscal period ending January 31, 2019 and forecasts for operating results and distribution for the 7th fiscal
period ending July 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 referred to herein have not be en,
and will not be registered 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. Thispress release is not for publication, distribution or release, directly or indirectly in or into the United States of America .

5

Item

Assumptions
ending July 31, 2019.
 Temporary expenses of other financial expenses to be incurred in association with the
new borrowing and refinancing as described in “Debt financing” below are expected to
be 90 million yen for the fiscal period ending January 31, 2019 and 65 million yen for
the fiscal period ending July 31, 2019.

Debt financing

 The total amount of interest-bearing liabilities is assumed to be 52,340 million yen as ofthe end of the fiscal period ending January 31, 2019 and 50,880 million yen as of theend of the fiscal period ending July 31, 2019.
 As of today, SAR has 43,230 million yen balance of outstanding borrowings. In addition
to these, it is assumed that SAR will borrow additional 13,130 million yen on September
6, 2018 from qualified institutional investors defined in article 2, paragraph 3, item 1 of
the Financial Instruments and Exchange Act in Japan.
 It is assumed to prepay 4,020 million yen by the end of the fiscal period ending January
31, 2019 by using the paid-in money for issuance of the new investment units throughthird-party allotment described in “Investment units” below, transfer proceeds fromthe Transfer, and consumption tax refund resulting from the acquisition of properties
and payment of other various expenses in the fiscal period ending July 31, 2018.
 It is assumed to prepay 1,460 million yen by the end of the fiscal period ending July 31,
2019 by using consumption tax refund resulting from the planned acquisition ofproperties and payment of other various expenses as well as the transfer proceedsfrom the Transfer.
 Except for those to be prepaid as above, it is assumed that 7,300 million yen of loans
payable due for repayment by the end of the fiscal period ending July 31, 2019 will be
refinanced in the term.
 Other than the above, it is assumed that there will be no new borrowings or
repayments of existing borrowings including prepayments until the end of the fiscal
period ending July 31, 2019.

 It is assumed that, in addition to the total number of investment units issued andoutstanding as of today (470,624 units), all of the new investment units to be issued
through public offering (66,857 units) and third-party allotment (up to 3,343 units),
Investment units
respectively resolved at the Board of Directors meeting held today, will be issued in full.
 Other than the above, it is assumed that there will be no changes in the number ofinvestment units issued due to additional issuance, etc. of investment units until theend of the fiscal period ending July 31, 2019.
Cash distribution  Cash distribution per unit (not including cash distribution in excess of earnings) is
per unit
calculated on the assumption described in the cash distribution policy stipulated in(not including
SAR’s Articles of Incorporation.
cash distribution  It is assumed that derivative transactions (interest rate swaps) will continue to be
in excess ofconducted. However, it is also assumed that deferred losses on hedges, which is anearnings)
item of deduction from net assets (as those provided in article 2, item 30 (b) of theNote： This press release does not in any way constitute any part of an offering of securities for investment. This press release ha s
been prepared for the purpose of announcing to the public certain matters relating to revision to forecasts for operating
results for 6th fiscal period ending January 31, 2019 and forecasts for operating results and distribution for the 7th fiscal
period ending July 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 referred to herein have not be en,
and will not be registered 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. Thispress release is not for publication, distribution or release, directly or indirectly in or into the United States of America .

6

Item

Assumptions
Ordinance on Accountings of Investment Corporations), is not expected to arise until
the end the fiscal periods ending July 31, 2019, and cash distribution per unit (notincluding 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 and maintenance, etc. In addition, cash distribution per unit (not including cash
distribution in excess of earnings) may be affected by changes in items of deduction
from net assets.

 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
Cash distribution
excess of earnings, that attributable to allowance for temporary difference adjustment
in excess ofis not scheduled 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 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.

Note： This press release does not in any way constitute any part of an offering of securities for investment. This press release ha s
been prepared for the purpose of announcing to the public certain matters relating to revision to forecasts for operating
results for 6th fiscal period ending January 31, 2019 and forecasts for operating results and distribution for the 7th fiscal
period ending July 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 referred to herein have not be en,
and will not be registered 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. Thispress release is not for publication, distribution or release, directly or indirectly in or into the United States of America .

7