Translation Purposes Only
August 28, 2024
For Immediate Release
Real Estate Investment Trust Securities Issuer
1-11-30 Akasaka, Minato-ku, TokyoXYMAX REIT Investment Corporation (XYMAX REIT)
Representative:
Yasushi Yamaguchi, Executive Director(Securities Code: 3488)
Asset Management Company
XYMAX REAL ESTATE INVESTMENT ADVISORS
Corporation
Representative:
Hideki Fukae
Representative Director and President
Contact:
Tatsuya Nakayama
Head of REIT Management Department
TEL: +81-3-5544-6880

Notice of Acquisition and Leasing of Domestic Real Estate Trust Beneficial Interests(karaksa hotel Sapporo (20% quasi-co-ownership interest))
XYMAX Real Estate Investment Advisors Corporation (hereinafter the "Asset Management Company")
entrusted by XYMAX REIT Investment Corporation (hereinafter as "XYMAX REIT") with asset management,
decided today at its Directors Meeting to acquire asset (hereinafter the "Acquisition") and to conduct the leasing asfollows;
Because XYMAX Group Corporation (hereinafter “XYMAX Group”), who is the seller of karaksa hotel Sapporo
is the parent company of Asset Management Company and KARAKSA HOTELS Corporation, who is the lessee ofthe asset to be acquired, and subsidiary of XYMAX Group, both companies falls under the category of an interested
party set forth in Paragraph 1 Article 201 of the Enforcement Order of the Act on Investment Trusts and Investment
Corporations (Act No. 198 of 1951, as amended) (hereinafter the“Investment Trust Act”) and Article 123 of the Act
on Investment Trust and Investment Corporations (Cabinet Order No. 480 of 2000, as amended thereafter), as wellas an interested party set forth in the REIT Stakeholder Transaction Management Rules, which are internal rules ofAsset Management Company. Accordingly, Asset Management Company has conducted the required deliberations
and resolutions in accordance with the provisions of the Rules on the Management of Transactions of Interested
Persons. In accordance with these Rules, Asset Management Company has obtained XYMAX REIT’s consent andapproval at the Board of Directors meeting of XYMAX REIT held on August 28, 2024, based on its internal rules.
Description
1. Overview of Acquisition(1) Assets to be acquired
Categ
ory

Property
Number(Note 1)

Property name

Hotel

HT-02

karaksa hotel Sapporo(20% of quasi-coownership interest)

Location

Anticipatedacquisition price(Million yen)
(Note 2)

Appraisal
value(Millionyen)(Note 3)

Appraisal
NOI
Yield(Note 4)

Existence ofintermediary

Hokkaido
Sapporo
City

1,060

1,170

5.2%

None

(2) Date of the Acquisition approved: August 28, 2024
(3) Date of the purchase and sales agreement: August 30, 2024
(4) Payment Date and Scheduled Acquisition Date
: September 6, 2024
(5) Seller: Refer to "4. Outline of sellers" below.
(6) Funds to acquire: Loans (Note 5) and cash on hand1(7) Settlement method: Full payment upon settlement(Note 1) “Property no.” refers to the property codes and numbers according to the type of the asset held by XYMAX REIT. For
each code, OF represents Office, RT represents Retail, HT represents Hotel, and OT represents Other.

The same shallapply hereinafter.
(Note 2) "Anticipated acquisition price" refers to the acquisition price of the Assets to be acquired as set forth in the purchaseand sale agreement for the Assets to be acquired. The acquisition price does not include national and local consumption
taxes nor acquisition costs and is rounded down to the nearest million yen.
(Note 3) “Appraisal NOI yield” is the ratio of appraisal NOI of Asset to be acquired to the Anticipated acquisition price rounded
off to the first decimal place as a percentage. Appraisal NOI refers to net operating income calculated by deducting
operating expenses from operating revenue in the appraisal report and refers to revenue before depreciation is deducted. It
is different from NCF (net income, Net Cash Flow), which are calculated by adding investment gains on security deposits
and deducting capital expenditures from NOI. Appraisal NOI Yield are figures calculated by Asset Management Company
and are not figures in the appraisal report. Actual figures may differ from those after the acquisition by XYMAX REIT.
(Note 4) For details of such borrowings, please refer to the "Notice of Borrowing of Funds" published today.

2. Reason for acquisition
XYMAX REIT aims to realize external growth along with the realization of solid internal growth utilizing
the real estate management capabilities of the sponsor group and by acquiring carefully selected properties at
Asset Management Company from the property sales information on captured by leveraging the customer baseand information collecting capabilities of the sponsor group. In addition, XYMAX REIT's growth strategy is tostrengthen cooperation with the sponsor group, including the supply of assets, in order to achieve further growthof XYMAX REIT.
The Asset to be acquired are held by the sponsor group and is one of the "KARAKSA HOTELS”, the own
hotel “Brand” of the sponsor group, and have the following characteristics.
 It faces the Tanukikoji Shopping Street, located in the center of Sapporo City, Hokkaido, and offers ahigh level of transportation convenience. For example, it is accessible from Susukino Station and Odori
Station of the Sapporo Municipal Subway through the underground mall and arcade. In addition, theTanukikoji Shopping Street is the one of oldest shopping streets in Hokkaido, and with a total length ofabout 900 meters, it is a lively area with around 200 shops, including restaurants and retail stores, andis an excellent location for sightseeing.
 The hotel targets the needs of group and family travelers who require accommodation for multiple nights,
and the majority of rooms have a capacity of three or more people. In addition, more than 60% of therooms are connecting rooms that can accommodate a flexible number of guests, making it possible torespond to the needs of a wide range of customers.
 The sponsor group operates hotels, linen supplies, and room cleaning in-house, enabling stable room
supply.
Furthermore, we plan to enter into a variable rent-type lease agreement with the sponsor group that is linked
to room sales. We can expect the potential for profitability growth after the acquisition of the Asset to beacquired, as well as to minimize the downside risk of revenue through the establishment of certain noncancellation period and minimum guaranteed rents.
We have decided to acquire and lease the property, as we believe that this will further expand our asset size,
improve the stability and growth potential of our portfolio, and contribute to increasing unitholder value overthe medium to long term.
In addition to the acquisition of the Assets to Be Acquired, XYMAX REIT has confirmed that all tenants meet
the Investment Corporation's tenant selection criteria (the details of the selection criteria are as stated in the“Financial Report” dated May 30, 2024).

2

3. Description of Asset to be acquired
The outline of the assets to be acquired is as follows.
Please refer to Reference 3 "Explanation of Matters to Be Stated in Contents of Asset to be acquired" forexplanation of the matters to be stated in each column in the table.
Property
karaksa hotel Sapporo
nameCategory
Hotel
Property
HT-02
Number
Outline of Specified Assets
Scheduled date of acquisition
September 6, 2024
Type of specific assets
Trust beneficiary rights
Outline ofTrustee
Mitsubishi UFJ Trust and Banking Corporation
Trust
beneficiary
Trust maturity date
September 30, 2034
right
Anticipated acquisition price1.06 Billion yen
Appraisal value (at the time of the
1.17 Billion yen (August 1, 2024)
price)
Location (residence indication)
24, Minami-Sanjo Nishi 5-chome, Chuo-ku, Sapporo
A 5-minute walk from Susukino Station on the Sapporo Municipal
Subway Namboku Line.
Transportation
5-minute walk from Odori Station on the Sapporo Municipal Subway
Namboku, Tozai, and Toho LinesLand
Ownership form
Ownership
Lot number
18-1 and other 6 lots
Site area (Note 1)
819.16 ㎡
Use area
Commercial district
Building coverage
80%
ratio
Floor area ratio
800%
Building
Ownership form
Ownership
Total floor area (Note6,707.22 ㎡
2)Date of construction
November 17, 2017
Use
Hotel
Structure and number
Steel-framed land roof 13 floors above ground with 1 basement floorof stories
Designer
Maeda Corporation Registered Architect OfficeConstructor
Maeda Corporation Sapporo Branch
Construction
The Building Center of Japan
confirmation
ML companies
ML type
PM companies
XYMAX HOKKAIDO Corporation
Special Remarks
・XYMAX REIT intends to conclude an agreement between the seller of the Assets to be acquired (referred toas the "Agreement" in this Special Remarks) upon acquisition of the Assets to be Acquired (20% of the quasi-coownership interest in the beneficial interest in trust in which the Property is the trust property).
The main contents of the Agreement are as follows.
(1) The non-dividing special provision on the beneficial interest in the Trust (shall be made for five years fromthe date of conclusion of the Agreement, and shall be renewed thereafter unless a declaration of intention to refuse
renewal is made).
(2) If each quasi-co-owner (hereinafter the "prospective seller") wishes to sell his/her quasi-co-ownership interest
to a third party, the other quasi-co-owners are given the right to preferentially negotiate for the purchase of thequasi-co-ownership interest held by the prospective seller.
・In the fixed term building lease agreement between the Trustee and the Lessee, in the event that the fixed term
building lease agreement between the Trustee and the Lessee involves the transfer of the asset, the Trustee intends
3

to grant the Lessee the right to preferentially negotiate the transfer of the asset to the beneficiaries by thetermination of the trust agreement relating to the asset, or to a third party designated by the Lessee or a groupcompany of the Lessee, except in the event that the Trustee transfers the asset to the beneficiaries and transfers
the quasi-co-ownership interest in the beneficial interest in the Trust between XYMAX REIT and the seller.
(Note 1) The total land area of the Asset to be acquired is indicated.
(Note 2) The total building area of the Asset to be acquired is indicated.
Outline of Lease
7,174.48 ㎡ (Note 1)
Leasable area
Leased area
7,174.48 ㎡ (Note 1)
Occupancy rate
100%
LesseeKARAKSA HOTELS Corporation
Number of tenants
1
Lease type
Fixed Term Building Lease Agreement
Lease term
30 years from September 6, 2024
Total of (i) and (ii) below (consumption tax, etc. shall be separately)(i)
Minimum monthly guaranteed rent: 10,000,000 yen(ii)
Variable rent (monthly)
The amount calculated by multiplying the total amount ofRent (Note 2)
sales (hereinafter the "Subject Sales Amount") during thetwelve months prior to the month prior to the current monthby the certain rate and dividing it by twelve (any fraction lessthan one yen shall be rounded off)
Security deposits
120 Million yen (Note 3)
Rent shall not be revised for a period of ten years from the lease termcommencement date.
Provided, however, that in the event of natural disasters, war, civil war,riot, enactment, amendment or abolition of internal or external laws andregulations, orders (including non-compulsory) or disposition or
guidance by public authority, epidemics, or any other cause not
Revision of Rent
attributable to himself or herself that prevents the operation of the hotelin the Asset to be acquired, or in the event of any difficulty in normal
business operations, or in the event of a significant decrease in sales, orin the event it is not appropriate to maintain the rent, the Lessor and theLessee shall negotiate in good faith a part or all of the release of therent.
The Lease shall not be terminated for a period of ten years from thelease term commencement date. In the event the parties hereto intend
to terminate the Lease as of the cancellation date of any of the dates
Early Termination
after the lapse of ten years from the lease term commencement date,
the parties hereto may terminate the Lease by giving written notice
thereof to the other party no later than one year prior to the cancellationof the Lease.
(Note 1) The space stated in the Lease to be concluded between the Trustee and the Lessee with respect to the
Asset to be acquired is set forth.
(Note 2) The terms and conditions set forth in the Lease to be concluded between the Trustee and the Lessee withrespect to the Asset to be acquired are set forth.
(Note3) The amount stated in the Lease to be concluded between the Trustee and the Lessee with respect to the
Asset to be acquired is set forth.
Occupancy rate

End of March
2020
100%

End of March
2021
100%

End of March
2022
100%

Outline of the Building Status Assessment Report
Tokyo Bldg-Tech Center Co.,Ltd
Surveyor
Date of survey
June 2024
Emergency and short-term repair
0 yen
expensesLong-term repair expenses (annual
19,653,000 yen
average)4

End of March
2023
100%

End of March
2024
100%

Surveyor
PML
State of collaterals
Property nameAppraisal value
Name of theappraiser
Appraisal date
Items

Outline of Earthquake Risk Analysis
Tokio Marine dR Co., Ltd.
0.9%
Outline of the appraisal reportkaraksa hotel Sapporo
1.17 Billion yen
JLL Morii Valuation & Advisory K.K..

August 01, 2024
Content (Unit:
Summary, etc.
thousand yen)
Value based on income approach
Assessed by jointly analyzing the values indicated by the
1,170,000 income approach based on the direct capitalization
method and the DCF method.
Capitalized value by the direct
1,200,000
capitalization method(1)Operating revenues
60,422(①-②)
60,422 Assessed the reasonable rents that can be received stably①Effective gross revenue
for the medium to long term
- Non-booked on the assumption of long-term tenant②Loss on vacancies, etc.
occupancy.
(2)Operating expenses
5,680(a. +b. +c. +d. +e. +f.
+g. +h.)a. Maintenance andNot posted due to tenant burden.
management fee
b. Utility expenses- Not posted due to tenant burden.
c. Repair expense
595 Assessment based on ER, similar events, etc.
d. PM fee
480 Assessment based on materials presented with reference
to similar properties, etc.
e. Tenant leasing
Not posted because long-term leases are assumed
Expensesf. Property taxes
4,270 Assessment based on the actual amount of 2024 tax andpublic dues materials, taking into account the fluctuationrate.
g. Insurance premium
333 Actual amount based on materials presented.
h. Other expenses- None(3)Net operating income
54,742((1)-(2))(4)Gain from investment of
240 Investment profit is assessed at an investment yield of
deposits
1.0%.
(5)Capital expenditures
3,375 Assessment based on ER, similar events, etc.
Net revenue
51,606((3)+(4)-(5))
Capitalization rate
4.3% Assessed by comparing and examining multiple
transaction yields in neighborhoods or similar areas
within the primary market area and taking into
consideration the projected changes in future net
revenues.
Value indicated by DCF method
1,150,000
Discount rate
4.1% Assessed by comparing the discount rate for transactionsof similar properties and the yield of other financial
instruments.
Terminal capitalization rate
4.5% Assessed taking into consideration the marketability ofthe subject property at the expiration of the holding
period for the capitalization rate.
5

Cost approach value
879,000
Land Ratio
65%
Ratio of buildings
35%
Other matters that the appraiser The above price is the value of the condominium multiplied by a quasi-conoted in the appraisal.
ownership interest of 20% and after the co-ownership depreciation
adjustment is made.

6

4.

Outline of Seller
(1)
Name
(2)
Location(3)
Representative

(4)

(5)
(6)
(7)
(8)
(9)
(10)

XYMAX GROUP Corporation
1-1, Akasaka 1-chome, Minato-ku, Tokyo
President Kenji Yoshimoto
・ Ownership, sale, purchase, lease, management, brokerage, consulting
and appraisal of real estate
・Planning, subcontracting, construction, design, construction supervision,and consulting services for construction work, etc.
・Financial instruments business prescribed in the Financial Instruments
Description ofBusinesses
and Exchange Act
・ Research, analysis and research on real estate management and the realestate market
・ Satellite Office Service
・ Linen Supply Service
Capital3,493 Million yen (As of March 2024)
Date of Establishment March 1, 1990
Net assets
22,029 Million yen (As of March 2024)
Total assets
104,289 Million yen (As of March 2024)
JDC CORPORTION (8.5%), SG Holdings, Inc. (5.6%), XYMAX Stock
Major shareholders
Owners Association (5.2%), Nippon Steel Kowa Fudosan Co., Ltd. (4.7%),
and percentage of
Mitsubishi UFJ Capital Co., Ltd. (4.2%) (Note) Major shares and holding
sharesratios are as of the end of March 2024, and the holding ratios are rounded
off to the nearest first decimal place.
Relationship between XYMAX REIT, Asset Management Company and the said company
The said company owns the Investment units of 5.0% XYMAX REIT's
outstanding units as of the date hereof. In addition, the relevant company is
Capital relationshipthe parent company of the Asset Management Company (100% stake),
which corresponds to interested parties, etc. stipulated in the Investment
Trust Law.
As of today, 37 of the officers and employees of Asset Management
Personal relationship
Company are on loan from the relevant company.
The said company is a Sponsor stipulated in a sponsor support agreement
Business relationshipentered into with XYMAX REIT and Asset Management Company.
Notes on RelatedThe said company shall be an affiliate of XYMAX REIT and Asset
Party Transactions
Management Company.
Applicable situation

5. Transactions with interested partiesAs XYMAX GROUP Corporation, which is the party to acquire the Asset to be acquired, is an interested
party, Asset Management Company has obtained the consent of XYMAX REIT based on the approval of theBoard of Directors of XYMAX REIT held today in accordance with the Investment Trust Law.
XYMAX REIT is scheduled to conclude a property management agreement (hereinafter the "PM
Agreement") with the Trustee and XYMAX HOKKAIDO Corporation (hereinafter the "PM Company") on the
Acquisition date of the Asset to be acquired.
In concluding PM Agreement, PM Company is categorized as the parent company of Asset Management
Company and falls under the category of interested parties as set forth in Article 201 of the Investment Trust
Act and in Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment
Corporations (including Cabinet Order No. 480 of 2000 and any subsequent revisions) as well as thestakeholders as set forth in the Regulations for Management of Transactions with Interested Persons of AssetManagement Company, and Asset Management Company is subject to the deliberation, resolution, and otherprocedures as required in accordance with the Regulations for Management of Transactions with Interested
Persons of Asset Management Company. Asset Management Company has obtained the consent of XYMAXREIT as approved by the Board of Directors of XYMAX REIT held on August 28, 2024, in accordance with
the Investment Trust Act.

7

6. Status of Previous Owners, etc.
Property acquisitions from special interested parties are as follows:
The following tables describe: (1) the Company's name, (2) the relationships with those in which the Company
has a special interest, and (3) the history and reasons for the acquisition.
Name of the properties
Previous owners
Former owner(Location)(1), (2), (3)Acquisition priceTime of acquisition
karaksa hotel Sapporo(1) XYMAX GROUP Corporation
Other than those who have a(24, Minami-Sanjo Nishi 5(2) Parent company of Assetspecial interest
chome, Chuo-ku, Sapporo)Management Company(3) Acquired for investment
management purposes
Omitted because it is owned for morethan one year.
September 2020-

7. Outline of the intermediary
Not applicable.
8. Future Outlook
Please refer to "Notice of Revisions to Investment Forecasts and Distribution Forecasts for the Fiscal PeriodEnding February 2025 (14th Fiscal Period) “dated today for the forecast of investment status for the fiscal
period ending February 2025 (September 1, 2024 to February 28, 2025) as a result of acquisition of the Assets
to be acquired.

*Website of XYMAX REIT: https://xymaxreit.co.jp/en/index.html(Reference Press Releases, etc.)
Notice of Revisions to the Investment Forecasts and Distribution Forecasts for the Fiscal Period Ending
February 2025 (14th Fiscal Period) dated August 28, 2024
Notice of Borrowing of Funds, dated August 28, 2024
Supplemental Explanatory Materials, dated August 28, 2024
<Attachments>
Reference 1 Photograph of Assets to be acquired and its location map
Reference 2 Portfolio status after the acquisition of the Asset to be acquired
Reference 3 Explanation of Matters to be Stated in Summary of Asset to be acquired8

Reference 1 Photograph of Assets to be acquired and its location map
karaksa hotel Sapporo (20% quasi-co-ownership interest)9Reference 2 Portfolio status after the acquisition of the Asset to be acquired
Property
Category
Number
OF-01
OF-02
OF-03
OF-04
Office

OF-05
OF-06
OF-07
OF-09
OF-10

RT-01
RT-02
RT-03
RT-04
Retai
RT-05

RT-06

HT-01
Hotel

Other

HT-02

OT-02

Property name
Xymax NishiShinbashi Building
Xymax Iwamotocho
Building
Xymax ShinjukuGyoen building
Xymax Kamiyacho
Building
Xymax Higashi-Azabu
Building
Xymax Higashi-Ueno
Building
Xymax Hachioji
Building
Xymax Sapporo Odori
Building
Xymax Kiba-Koen
Building
Subtotal
Muza Kawasaki
Life Kawasaki Miyuki
Store
Vita SeisekiSakuragaoka
Life Fukuizumi StoreThe Parkhouse Totsuka
Front (Retail portion
on the first and second
floors)Valor Kachigawa Store(Leasehold Land)(Note 3)
Subtotal
Hotel Vista Sendai
karaksa hotel Sapporo(Note 4)
Subtotal
L-Place Nishikasai
Subtotal

Location
Minato-ku, Tokyo

Date ofacquisition
February 16,
2018
February 16,
2018
February 16,
2018
February 16,
2018
February 16,
2018
February 16,
2018
February 16,
2018

Share of
Acquisition priceportfolio(Million yen)(%)
(Note 1)
(Note 2)
2,500

5.7

4,250

9.7

5,020

11.4

880

2.0

1,550

3.5

1,150

2.6

2,600

5.9

March 2, 2022

4,707

10.7

Koto-ku, Tokyo

March 2, 2022

2,003

4.6

―
Kawasaki,Kanagawa
Kawasaki,Kanagawa―
February 16,
2018
February 16,
2018
February 16,
2018
September 1,
2020

24,660

56.2

4,100

9.3

790

1.8

3,100

7.1

1,065

2.4

Yokohama,
Kanagawa

July 1, 2021

540

1.2

Kasugai City,
Aichi Prefecture

January 31,
2022

3,245

7.4

12,840

29.3

4,400

10.0

1,060

2.4

5,460

12.4

901

2.1

901

2.1

43,861

100.0

Chiyoda-ku,
TokyoShinjuku-ku,
Tokyo
Minato-ku, Tokyo
Minato-ku, Tokyo
Taito-ku, Tokyo
Hachioji-shi,Tokyo
Sapporo City,
Hokkaido

Tama City, Tokyo
Sakai City, Osaka――
Sendai City,
February 16,
Miyagi Prefecture
2018
Sapporo City,
September 6,
Hokkaido
2024――
Edogawa-ku,
March 2, 2022
Tokyo
―
―

Total

―

―

(Note 1) "Acquisition price" refers to the amount excluding expenses (brokerage fees, taxes and public dues, etc.) required forthe acquisition of assets held (the amount of sales proceeds of real estate, etc. stated in the sales contract, etc. pertaining
to each asset held) rounded down to the nearest million yen. The sale and purchases amount does not include consumption
tax and local consumption tax.
(Note 2) "Share of portfolio" is the ratio of the acquisition price related to each asset held to the total acquisition price related toassets held, rounded to the nearest decimal place.

10

(Note 3) The acquisition price related to the Valor Kachigawa Store (Leasehold Land) is based on the 50% quasi-co-ownershipinterest in the real estate trust beneficiary right held by XYMAX REIT.
(Note 4) The acquisition price related to karaksa hotel Sapporo is based on the 20% quasi-co-ownership interest in real estate
trust beneficiary rights held by XYMAX REIT.

11

Reference 3 Explanation of Matters to be Stated in Summary of Assets to be acquired(a) Description of “Category” and “Property Number” columns
・“Category” refers to Office, Retail, Hotel, and Other that XYMAX REIT will invest in.
・“Property Number” is numbered as OF for Office, RT for Retail, HT for Hotel, and OT for Other.
(b) Explanation of the "Outline of Specified Assets" section
・"Scheduled date of acquisition" indicates the scheduled date of acquisition of the beneficial interest in truststated in the sales contract for the Planned Acquisition Assets.
・"Type of Specified Assets" refers to the types of real estate and other assets as Specified Assets and assets
incidental or related thereto.
・"Outline of beneficial interest in trust" describes the contents of the trust agreement between the Trustee andthe Trustee with respect to the Assets to be acquired.
・The "Anticipated acquisition price" refers to the sales price (excluding consumption tax, local consumption
tax, and expenses such as brokerage fees) stated in the sales contract for the Asset to be acquired, rounded
down to the nearest million yen.
・"Appraisal value (Appraisal date)" is the appraisal value stated in the real estate appraisal report related tothe planned asset to be acquired from JLL Morii Valuation & Advisory K.K.
・"Location (residential indication )" indicates the residence marking in principle.
・“Transportation” describes the time (rounded up to the nearest minute) when the distance from the nearest
station calculated by Asset Management Company is walked at 80 meters per minute or the time indicatedin the real estate appraisal report or Engineering Report. .
・"Ownership of land and buildings" describes the types of rights held by XYMAX REIT.
・The "parcel number" of the land indicates the location of the building on the real estate registry (or, if there
is more than one, one of these locations).
・The "Site Area" of the land is based on the description in the real estate register (in the event of land lease,
the area of the land lease is included) and may not coincide with the current situation.
・The "zoning" of land refers to the type of use district listed in Item 1, Paragraph 1, Article 8 of the City
Planning Law (Law No. 100 of 1968, as amended).
・The "building coverage ratio" of land, in principle, refers to the ratio of the building area of the building to
the site area as set forth in Article 53 of the Building Standards Law (Law No. 201 of 1950, as amended
hereafter; the same shall apply hereinafter), and includes the upper limit of the building coverage ratio(specified building coverage ratio) set forth in city plans in accordance with the use districts, etc. (in cases
where there are more than one, all of them). The specified building coverage ratio may be relaxed orincreased or decreased due to fire-resistant buildings in the fire prevention area or for other reasons, and may
differ from the actual building coverage ratio.
・The "floor-area ratio" of land refers to the ratio of the total area of a building to the site area stipulated in
Article 52 of the Building Standards Law. The upper limit of the floor-area ratio (designated floor-area ratio)
stipulated in city plans according to the use district, etc., is stated. The designated floor area ratio may be
mitigated or increased or decreased due to the width of the road connected to the site or for other reasons,and may differ from the actual floor area ratio applied.
・The "total floor area" of the building includes the floor area of the annex building based on the entries in thereal estate registry.
・The "Construction date" of the building indicates the date of new construction on the real estate register ofthe main building.

12

・The "Structure and Number of Floors" of the building is based on the entries in the real estate registry forthe main building.
・"Architect," "Constructor," and "Construction Confirmation Agency" of the building are written in the nameof the company where the main building was designed and constructed.
・"ML companies" and "PM companies" refer to master leasing companies and PM companies of the Asset tobe acquired. For "ML type," the master lease type (pass-through type, fixed rent type, or variable rent type)of the planned asset is described.
・In addition to matters considered to be important in relation to the rights and use of the Asset to be acquired
as of today, matters that are considered to be important in light of the valuation of the Asset to be acquired
and the impact on profitability and disposability of the assets to be acquired are included in "Special
Instructions."(c) Description of the "Outline of the Lease" column
・"Leasable Area" represents the total of the leasable area based on the building drawings attached to the leaseagreement and the lease agreement for the assets planned to be acquired as of today and the area based on
the building drawings for vacant portions.
・"Leased Area" refers to the total leased area based on the lease agreement and building drawings attached to
the lease agreement for the assets planned to be acquired as of today. In cases where a master lease agreement
has been concluded with respect to the Asset to be acquired, the sum of the actual leased areas with the end
tenant is rounded off to the third decimal place.
・"Utilization rate" refers to the ratio of rentable area to the rentable area for assets planned to be acquired asof today, rounded to the nearest whole number.
・"Number of Tenants" refers to the total number of tenants for the Assets to be Acquired under each Lease
Agreement entered into for the Assets to be Acquired as of today.
・The Agreement Form describes the form of the lease agreement entered into for the Assets to be acquired.
・"Rent" refers to the rent set forth in the Lease Agreement executed or to be executed for the Asset to beacquired as of today.
・"Security deposits" refers to the total amount of lease deposits and security deposits stipulated in the leaseagreements that have been concluded or are scheduled to be concluded with respect to the Asset to beacquired as of today, rounded down to the nearest million yen. In the event the Master Lease Agreement isconcluded for the Asset to be acquired and the amount of security deposit and other amounts stipulated in
the lease agreement concluded with the end tenant are the same, such total amount is rounded down to thenearest million yen.
・"Rent Revision" and "Early Termination" describe the terms and conditions set forth in the Lease Agreementthat has been executed or is scheduled to be executed for the Asset to be acquired as of today.

(d) Explanation on the column for "Outline of Building Status Assessment Report"
・"Emergency and short-term repair expenses" and "long-term repair expenses" are stated in the building statusassessment report.
・"Short-term repair expenses" refers to the expenses for repairs and renewals of defects requiring repairs andthe like in preference to daily maintenance, and represents the total amount of estimated repair expenses
required within one year from the date of the building status assessment report.
・"Long-term repair expenses" refers to repair and renewal expenses for the maintenance of functions or thesafe operation of facilities in response to age-related deterioration. The total amount of repair expenses and13renewal expenses required within 12 years from the date of the building status assessment report is converted
to the annual average amount by the Asset Management Company and rounded to the nearest 1,000 yen.
(e) Explanation on the column "Outline of Earthquake Risk Analysis, etc."
・"PML" means the expected seismic loss rate (Probable Maximum Loss). Although there is no uniform andprecise definition of PML, this document uses the definition of the expected loss for large and small
earthquakes that may occur in 475 years and the ratio of the expected loss to the replacement value of thebuilding for which the probability of occurrence is calculated and statistically processed. PML is calculated
after examining the ground conditions, regional factors, and construction. PML figures are based on the
Earthquake-Risk Assessment Report dated July, 2024 by Tokio Marine dR Co., Ltd. The contents of the
Earthquake Risk Assessment Report only represent the opinions of the reporter and do not guarantee thevalidity or accuracy of the contents thereof.
(f) Explanation on the "State of collaterals" column
・In the event the collateral setting is cancelled after the acquisition of the Assets to be Acquired, the term"none" shall be used.

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