Code 3468

March 17, 2017
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: 03-5425-1340

Supplemental Material on Press Releases Announced as of Today＜Other Press Releases Announced as of Today＞
・Notice Concerning Acquisition of Real Estate Beneficiary Interest in Trust and Lease Contract with New Tenants・Notice Concerning Revision to Forecasts for Operating Results for the 3rd Fiscal Period Ending July 31, 2017 andForecasts for Operating Results and Distribution for the 4th Fiscal Period Ending January 31, 20181

Series of implementation(※1) Highlight (1)Change in NAV per unit and unitholders’ profit■Through the series of implementation, SAR realizes the gain on
sales more than the unrealized gain on an appraisal value basis(appraisal value – book value). As a result, unitholders’ profit perunit taking into account the distribution of the gain on sale (※2)
surpasses the NAV per unit as of the end of Jan, 2017.

■Net asset value per unit：As of January 31, 2017: (1) / (Total number investment unit issued as of the end of Jan, 2017(344,700 units)) – (Dividend per unit (3,112 yen))(1)=(Net asset as of January 31, 2017)
Post the series of implementation: ((1) + (Assumed total payment of 6.6 billion yen (calculated
based on 66,200 units of new issuance, 3,400 units maximum of third party allotment and 101,100
yen of the closing price of investment unit as of March 9, 2017))-(Total dividend for the fiscal period
ending in January 31, 2017)) / (Anticipated total number of investment unit issued (414,300units))■Unrealized gain per unit
Net asset per unit
Unrealized gain per unit
As of January 31, 2017: ((Total appraisal value as of January 31, 2017 (sale price is used for Urban
Unrealized gain per unit of Urban Park Yoyogikoen (※3)
Gain on sales per unit of Urban Park Yoyogikoen (※5) Park Yoyogikoen)) – (Total book value as of January 31, 2017)) / (Total number of investment unit
issued as of the end of Jan,2017 (344,700 units)
Unrealized gain per unit of Oak Minami-Azabu(※4)
Post the series of implementation: ((Total appraisal value excluding Urban Park Yoyogikoen and Oak
Gain on sales per unit of Oak Minami-Azabu(※6)
Minami-Azabu as of January 31, 2017) - (Total book value excluding Urban Park Yoyogikoen and
109,727
Oak Minami-Azabu as of January 31, 2017)) + ((Total appraisal value of anticipated properties
110,887(yen)
including Urban Park Gokokuji) - (Total (planned) acquisition price of anticipated properties
Distribution of
110,000
including Urban Park Gokokuji)) / (Anticipated total number of investment unit issued (414,300
3,365 （※6)
the gain on salesunits))
369 (※5)
107,644to unitholders

12,248
10,576

10,576

97,06996,578100,000

3,365

90,00097,480162
282
End of the あ2nd fiscal period(as of the end of Jan,2017 NAV per unit)

Post theｂ series ofimplementation
NAV per Unit

NAV per unitｃ reflecting thegain on sale

第2期末時点End of the
2nd fiscal period（平成29年1月末時点）(asof the end of Jan,
1口当たりNAV2017
NAV per unit)

369
売却益の還元を反映しNAV
per unit reflecting the
た1口当たり投資主利益
gainon sale

※1: “The series of implementation” refers to the acquisition of anticipated properties and asset replacement by means of transferring Oak Minami-Azabu and acquiring Baraki Logistics※2:Uniholders’ profit per unit = Net Asset per unit + Unrealized gain per unit + gain on sales per unit of Urban Park Yoyogikoen + gain on sales per unit of Oak Minami-Azabu※3:Calculated as ((Appraisal value of Urban Park Yoyogikoen as of July 31, 2016) - (Book value of Urban Park Yoyogikoen as of January 31, 2017)) / (Total number of investment unit issued asof the end of Jan, 2017 (344,700units))※4:Calculated as ((Appraisal value of Urban Park Oak Minami-Azabu as of January 31, 2017) - (Book value of Oak Minami-Azabu as of January 31, 2017)) / (Total number of investment unitissued)※5:Calculated as (Gain on sale of Urban park Yoyogikoen) / (Anticipated total number of investment unit issued 414,300 units)2※6:Calculated as ((Expected gain on sale of Oak Minami-Azabu) – (anticipated Internal reserve)) / (Anticipated total number of investment unit issued 414,300 units)

Series of implementation Highlight (2)Change in dividend per unit
■Increase unitholders’ interest and actualize the value of assets through realization of unrealized gain by the transferof assets
Planed distribution of gainon sales from theasset replacement(Disposition ofUrban Park Yoyogikoen)

(yen)
5,000

Forecast

Planed distribution of gainon sales acrossthe 3rd and 4th fiscal period
from the asset replacement(Anticipated disposition ofOak Minami-Azabu)

Actual

4,340
4,000

※110millions yen isexpected to berecorded as internal
reserve

3,120

3,112
3,046

3,000

4,039(※)

2,726

Original
normalized
dividend

2,000

1,000

968
8290
1st Fiscal Period 1st Fiscal Period（as of July 31,Forecast2016）(as of July 31,2016）

Announced on
April 20, 2016

2nd Fiscal Period
2nd Fiscal Period
Forecast(as of January 31,(as of January 31,2017)2017）
Announced on
April 20, 2016

3rd Fiscal Period
Forecast(as of July 31,2017）

3rd Fiscal Period
Forecast(as of July 31,2017）

3rd Fiscal Period
Forecast(as of July 31,2017）

Announced on
Announced on
Announced on
September 14, 2016 December 5, 2016 February 28, 2017

4thFiscal Period
Forecast(as of January 31,2018）
Announced onMarch 17, 20173Historical track record of unit price■Since the listing(April 20, 2016), SAR has been rapidly implementing policies aimed at increasing unitholders’ interest,and As of the date of March 9, 2017, its unit price outperforms unit price as its listing.
Star Asia Investnebt Corporation

TSE REIT INDEX

106.00104.00102.00UK’s Votefor BREXIT

100.0098.00

Units Price on Listing:
100,000 yen
USPresidential Vote

96.00
Announcement of
the financial result for
the fiscal period
ended in July 31, 2016

94.00
92.00
90.00
88.00

Notice Concerning
Obtainment of PreferentialNegotiation Rights Pertaining
to Acquisition of Assets

Notice Concerning Start ofCumulative Investment Unit
Investment byOfficers and Employees of
the Asset Manager

Notice Concerning
Acquisition and Transfer
of Real Estate BeneficiaryInterests in Trust

Notice Concerning
Acquisition and Transfer
of Real Estate BeneficiaryInterests in Trust

2016/4/20
2016/4/26
2016/5/6
2016/5/12
2016/5/18
2016/5/24
2016/5/30
2016/6/3
2016/6/9
2016/6/15
2016/6/21
2016/6/27
2016/7/1
2016/7/7
2016/7/13
2016/7/20
2016/7/26
2016/8/1
2016/8/5
2016/8/12
2016/8/18
2016/8/24
2016/8/30
2016/9/5
2016/9/9
2016/9/15
2016/9/23
2016/9/29
2016/10/5
2016/10/12
2016/10/18
2016/10/24
2016/10/28
2016/11/4
2016/11/10
2016/11/16
2016/11/22
2016/11/29
2016/12/5
2016/12/9
2016/12/15
2016/12/21
2016/12/28
2017/1/5
2017/1/12
2017/1/18
2017/1/24
2017/1/30
2017/2/3
2017/2/9
2017/2/15
2017/2/21
2017/2/27
2017/3/3
2017/3/9

86.00

Notice Concerning
Obtainment of Preferential
Negotiation Rights Pertaining
to Acquisition of Assets※:The closing price of the investment units on the Tokyo stock exchange and the TSE REIT Index from April 20, 2016 to March 9, 2017 were both standardized at a closing price of4
100 on April 20, 2016 in the above graph for comparison purposes.

Specific measures tailored to the financial environment andreal estate market conditions■Consideration and implementation of various measures allowing us to maintain andimprove dividends per unit, regardless of the conventional notion
Optimal portfolio management
・Asset replacement with the aim ofimproving portfolio quality, returns, andstability
・Certifying evaluations of the assets andtransferring assets to generate profits
・Eliminating the rent gap

Major measures implemented
or to be implemented
Asset replacement●Urban Park Yoyogikoen and Urban
Park Gokokuji●Oak Minami-Azabu Building andBaraki Logistics (plan to implement inMarch-August 2017)
Introduction of a cumulative
investment system for officers andemployees

Pro-active
financial operations
・Reducing financing costs
・Repayment of borrowings
before maturity

Maximizing
unitholders’interest

Major measures being
implemented

Maintaining andImproving dividends
per unit・Introducing a cumulative investment systemfor officers and employees
・Considering acquisition of a credit rating
・Considering acquisition of own investment
units

Maintaining future
external growth andinvestment opportunities

・Acquiring preferential negotiation rights
・Utilizing sponsor support (warehousingfunction)
・Diversifying opportunities for securing
profits (mezzanine loan receivables)）Eliminating the rent gap

Major measures underconsideration
Investing in mezzanine loan recievables

5

Disclaimer
This document has been prepared to provide information, and not for soliciting and inviting investments in orrecommending transaction of certain products. SAR does not guarantee the accuracy or completeness of theinformation provided in this document although effort has been made to provide correct information based on
information available to SAR.
Moreover, please note that the contents of this document are subject to change or removal without priornotice.
Duplication and reproduction, etc. of the contents contained in this document without prior consent isprohibited.
This document includes graphs, data, etc. publicly disclosed by third-parties. Furthermore, the document also
includes analysis, judgement and other opinions by Star Asia Investment Management, Co,. Ltd. concerning
such information.
This document discusses future expectations, identifies strategies, contains projections of our results
operations or financial condition, or states other forward-looking information based on certain assumptions,estimates and projections, Known and unknown risks, uncertainties and other factors could cause our actual
results, performance or achievements to differ materially from those cantained or implies in any forwardlooking statement. We cannot give any assurances that the expectations expressed in these forward-looking
statements will turn out to be correct.

6