August 2, 2021
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 12th Fiscal Period Ending January 31, 2022
and Forecasts for Operating Results and Distribution for the 13th Fiscal Period Ending July 31, 2022
Star Asia Investment Corporation (“SAR”) announces that it has decided to revise the operating results forecasts
for the 12th fiscal period ending January 31, 2022 (August 1, 2021 to January 31, 2022) announced in the “(REIT)
Financial Report for Fiscal Period Ended January 31, 2021” dated March 16, 2021 (the “Previously Announced
Forecasts”). SAR also newly announces the operating results forecasts and distribution forecasts for the 13th fiscal
period ending July 31, 2022 (February 1, 2022 to July 31, 2022) as described below.
There are no changes made to the forecasts for operating results and distribution for the 11th fiscal period ended
July 31, 2021 (February 1, 2021 to July 31, 2021) which was announced on March 16, 2021. SAR plans to announce
the financial results for the fiscal period ended July 31, 2021 (11th Fiscal Period: February 1, 2021 to July 31, 2021)
on September 14, 2021.

1. Revision to forecasts for operating results for the fiscal period ending January 31, 2022

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)

5,565

2,801

2,311

2,311

1,455

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 12th fiscal period ending January 31, 2022 and forecasts for
operating results and distribution for the 13th fiscal period ending July 31, 2022, 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)

5,898

2,988

2,412

2,411

1,455

0

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

332

187

100

100

0

0

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

6.0%

6.7%

4.4%

4.4%

－

－

(Reference)
Expected number of investment units issued and outstanding as of the end of the fiscal period: 1,789,389 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, 2022

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)

5,955

3,044

2,554

2,553

1,476

Cash
distribution
in excess ofearnings perunit (yen)(Reference)
Expected number of investment units issued and outstanding as of the end of the fiscal period: 1,789,389 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 andDistribution Forecasts for the Fiscal Periods ending January 31, 2022 and ending July 31, 2022” 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 12th fiscal period ending January 31, 2022 and forecasts for
operating results and distribution for the 13th fiscal period ending July 31, 2022, 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 seven 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”, each of which were announced today, certain changes have been made to the assumptions
underlying the operating results forecasts for the fiscal period ending January 31, 2022 as described in “(REIT)
Financial Report for Fiscal Period Ended January 31, 2021” dated March 16, 2021. In such context, from thestandpoint of reflecting such changes, SAR announces revisions to the forecasts for the operating results forthe fiscal period ending January 31, 2022, and also newly announces the operating results forecasts anddistribution forecasts for the fiscal period ending July 31, 2022.
<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* 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. Thispress release has been prepared for the purpose of announcing to the public certain matters relating torevision to forecasts for operating results for the 12th fiscal period ending January 31, 2022 and forecasts for
operating results and distribution for the 13th fiscal period ending July 31, 2022, 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, 2022 and Ending July 31, 2022
Item

Assumptions

Calculation period➢ 12th Fiscal period ending January 31, 2022: August 1, 2021 – January 31, 2022 (184 days)➢ 13th Fiscal period ending July 31, 2022: February 1, 2022 – July 31, 2022 (181 days)➢ It will be assumed that in addition to the assets held by SAR as of today (real estate
beneficiary interests in trust over 53 properties, 4 mezzanine loan debts and 1
investments in silent partnerships (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 beingreferred to as “Currently Held Assets (Mezzanine)” , and those in the form of equity
investments in silent partnership being referred to as “Currently Held Assets (Silent
Partnership)”) , the real estate beneficial interests in trust over the 7 properties described
below (the “Assets to be Acquired”) will be acquired (the “Acquisition”).

Assets undermanagement

Operatingrevenue

Note:<Acquisition>
Property Name: OHA Building, Urban Center Hakata, BAGUS Ikebukuro West, Urban
Park Ryogoku, Urban Park Mizonokuchi, Urban Park Miyamaedaira,Urban Park Tsurumi
Anticipated Acquisition Date: August 19, 2021
➢ 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, 2022.
➢ It is also assumed that, given the Acquisition, equity investments in silent partnership in
GK SAPR7 which holds as its asset under management the trust beneficial interest for
which the OHA Building is the main trust asset, will be redeemed.
➢ In practice, assets under management may vary due to changes in investment assets.
➢ 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, each 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

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 12th fiscal period ending January 31, 2022 and forecasts for
operating results and distribution for the 13th fiscal period ending July 31, 2022, 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
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 421
million yen for the fiscal period ending January 31, 2022 and 454 million yen for the fiscal
period ending July 31, 2022.
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, 2022. 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, 2022.
➢ For the expenditures for repair and maintenance of buildings, based on repair andmaintenance plans drawn up by the Star Asia Investment Management Co., Ltd., 199
million yen is expected for the fiscal period ending January 31, 2022 and 198 million yen
for the fiscal period ending July 31, 2022. 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 684 million yen for the fiscal period ending January 31,
2022 and 697 million yen for the fiscal period ending July 31, 2022.

NOI(Net Operating
Income)➢ The total portfolio NOI is expected to be 4,199 million yen for the fiscal period ending
January 31, 2022 and 4,280 million yen for the fiscal period ending July 31, 2022.
➢ 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 6
million yen for the fiscal period ending January 31, 2022 and 6 million yen for the fiscal
period ending July 31, 2022.
➢ The total amount of interest expense and other financial expenses are expected to be
569 million yen for the fiscal period ending January 31, 2022 and 483 million yen for the
fiscal period ending July 31, 2022.

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 12th fiscal period ending January 31, 2022 and forecasts for
operating results and distribution for the 13th fiscal period ending July 31, 2022, 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

Debt financing➢ The total amount of interest-bearing liabilities is assumed to be 89,440 million yen as ofthe end of the fiscal period ending January 31, 2022 and 89,440 million yen as of the endof the fiscal period ending July 31, 2022.
➢ As of today, SAR has 82,440 million yen of outstanding borrowings. In addition, newborrowings totaling 7,000 million yen on August 19, 2021 from qualified institutional
investors as defined in Article 2, paragraph 3, item 1 of the Financial Instruments andExchange Act is assumed.
➢ It is assumed that 25,600 million yen of loans payable which are due for repayment in
the fiscal period ending July 31, 2022 will be refinanced.
➢ It is assumed that, except those stated above, there will be no new borrowings or
repayments of existing borrowings including prepayments until the end of the fiscal
period ending July 31, 2022.

➢ It is assumed that a total of 1,789,389 units, which is the total number of investment
units issued and outstanding as of today (1,674,389 units), all of the new investment units
to be issued through public offering (115,000 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, 2022.
➢ 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
Cash distribution
in income or temporarily incurred expenses, and also to avoid incurring tax expenses
per unit
such as corporate taxes etc. arising due to the mismatch of tax and accounting(not including
treatments.
cash distribution➢ As to cash distribution for the fiscal period ending January 31, 2022, it is assumed that a
in excess of
total of 2,603 million yen (1,455 yen per unit) will be distributed, which is the total of
earnings)
estimated net income for the fiscal period of 2,411 million yen plus the expected reversal
amount from the temporary difference adjustment reserve of 88 million yen, and a
portion of profit carried forward from the previous period of 102 million yen. As to cash
distribution for the fiscal period ending July 31, 2022, it is assumed that a total of 2,641
million yen (1,476 yen per unit) will be distributed which consists of estimated net
income for the fiscal period of 2,553 million yen plus the expected reversal amount from
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 12th fiscal period ending January 31, 2022 and forecasts for
operating results and distribution for the 13th fiscal period ending July 31, 2022, 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

Assumptions
the 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,or 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 associations, 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 12th fiscal period ending January 31, 2022 and forecasts for
operating results and distribution for the 13th fiscal period ending July 31, 2022, 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> Growth in Distributitons Per Unit (“DPU”) and Earnings Per Unit (“EPU”)
The followings are forecast DPU for fiscal period (“FP”) ended July 31, 2021 and FP ending January 31, 2022,
which were announced in the “(REIT) Financial Report for Fiscal Period Ended January 31, 2021” dated March 16,2021 and forecast DPU for FP ending July 31, 2022, announced today. Also forecast EPU for FP ending January
31, 2022, announced in the “(REIT) Financial Report for Fiscal Period Ended January 31, 2021” dated March 16
and forecast EPU for FP ending July 31, 2022, announced today (Note3) are shown below.
<Growth in Distributions Per Unit and Earnings Per Unit>(Notes)
1.

2.

3.

Note:

Refer to “(REIT) Financial Report for Fiscal Period Ended January 31, 2021” dated March 16, 2021 forassumptions underlying forecast DPU for FP ended July 31, 2021 and FP ending January 31, 2022, andrefer to Exhibit1 “Assumptions Underlying Operating Results Forecasts and Distributions Forecasts For
Fiscal Periods Ending January 31, 2022 and Ending July 31, 2022” for assumptions underlying forecast
DPU for FP ending July 31, 2022.
Refer to “(REIT) Financial Report for Fiscal Period Ended January 31, 2021” dated March 16, 2021 forassumptions underlying previous forecast EPU for FP ending January 31, 2022 and refer to Exhibit1“Assumptions Underlying Operating Results Forecasts and Distributions Forecasts For Fiscal Periods
Ending January 31, 2022 and Ending July 31, 2022” for assumptions underlying forecast EPU for FP
ending July 31, 2022.
The forecast EPU for FP ending July 31, 2022 is the forecast net income for FP ending July 31, 2022
divided by forecast number of investment units issued at the end of the period (1,789,389 units) (refer
to column “Investment units” of Exhibit1 “Assumptions Underlying Operating Results Forecasts andDistributions Forecasts For Fiscal Periods Ending January 31, 2022 and Ending July 31, 2022”).
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 12th fiscal period ending January 31, 2022 and forecasts for
operating results and distribution for the 13th fiscal period ending July 31, 2022, 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 2, 2021. 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 12th fiscal period ending January 31, 2022 and forecasts for
operating results and distribution for the 13th fiscal period ending July 31, 2022, 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