Supplementary
Materials
Securities Code 3488
Outline of "Notice Concerning Acquisition ofDomestic Trust Beneficiary Right in Real
Estate (Valor Kachigawa Store (Leaseholdland) (50% quasi-co-ownership interest)) andSale of Domestic Real Estate Trust Beneficiary
Right (Renaissance 21 Chihaya)" and "Noticeof Revision of Investment Forecast andDistribution Forecast for the fiscal years
ending February 28, 2022 (8th fiscal period)and August 31, 2022 (9th fiscal period)."
January 27, 2022

Outline of Asset Replacement┃ Point of the Asset Replacement┃ Realize unrealized gains through the first asset replacement after IPO in collaboration with the XYMAX Group Distribution per unit is expected to improve significantly by returning a portion of the high unrealized gains maintained since IPO to theunitholders
 Continuously investigate strategic asset replacement in the future┃ Purpose of the Asset Replacement┃1

2

3

Maintaining both Asset Size andNormalized Distributable Earnings

Realize unrealized gains and return capital gains
to unitholders over two fiscal periods

NOI difference after depreciation+10 million yen/year(approximate )Difference on Disposition+531 million yen(approximate )Improve medium to long term earnings stability
Acquisition of asset for which long-term stable contracts have been concluded withthe lessee having good relationship with the Sponsor┃ Outline of Asset Replacement┃
Acquisition of the asset
Valor Kachigawa Store (Leasehold land) (50%quasi-co-ownership interest)

SellerScheduled acquisition date

Disposition of the asset
Japan Metropolitan Fund
Investment Corporation
January 31, 2022

Location

2-chome, Ono-cho, Kasugai-shi,
Aichi

Site Area

20,509.10㎡

Renaissance 21 Chihaya

Buyer
Scheduled date of saleLocation

Japan Metropolian Fund
Investment Corporation
First sale (50%) January 31, 2022
Second sale (50%) March 31, 2022
Chihaya 5-chome, Higashi-ku,Fukuoka-shi, Fukuoka

Construction date

October 19, 2006

Anticipated acquisition
price3.245 billion yen

Book Value(As of August 31, 2021)

2.748 billion yen

Appraisal value(January 1, 2022)

3.33 billion yen

Appraisal value(As of August 31, 2021)

3.28 billion yen

Anticipated sale price3.28 billion yen

Appraisal NOI yield after
depreciation

4.1%

Actual NOI yield after depreciation

3.7%2Estimated distribution per unit forecast
for the 8th and 9th fiscal periods
We expect a substantial increase in distributions per unit over two fiscal periods due to the realization of unrealizedgains.
Distribution forecast for
the 8th Fiscal Period

Distribution forecast for

3,877 JPY per unit

the 9th Fiscal Period

Revision of +900 yen (+30.2%) compared to the forecast as of October 13, 2021

3,835 JPY per unit

Revision of +822 yen (+27.3%) compared to the forecast as of October 13, 2021

Forecast for the 8th Fiscal Period ending February 28, 2022

Forecast for the 9th fiscal period ending August 31, 2022

+900 yen(+30.2%)+825 yen(+27.4%)

(Yen)

(Yen)
Budgeted repair expenses
Chihaya
Revenue during for existing properties isSG&A costshifted to 9th period
the period▲2430
44Sale effect51
Revenuefor existing▲18
Kachigawaproperties
Revenue during
the period

4,000

3,500

Chihaya
Revenue during
Sale effect the period

4,000

▲246

3,500
844817▲44

SG&A cost
0▲41

Existing
properties
Revenue309

Kachigawa
Revenue during
the period

3,000

3,000
3,776

2,500

Repair expenses
shifted from 8th period

2,9003,871

3,881

3,876

3,877

2,500

2,977

2,0000

3,838

3,835

3,013

0
2,000
7th Fiscal Period(August 31, 2021)
Actual amount8th Fiscal Period(February 2022)
Forecast(Disclosed in October 2021)

8th Fiscal Period(February 2022)
Forecast(As of the date of this revision)

9th Fiscal Period(August 31, 2022)
Forecast(Disclosed in October 2021)

9th Fiscal Period(the end of August 31, 2022)
Forecast(As of the date of this revision)

3Asset to Be Acquired Valor Kachigawa Store (Leasehold land) (50% quasi-co-ownership interest)
Retail┃Outline of the Assets to Be Acquired┃Anticipated acquisition 3.245 billion yen
priceAppraisal value

3.33 billion yen

Appraisal NOI yield

4.1%

Appraisal NOI yield
after depreciation

4.1%

Location

Kasugai-shi, Aichi
1-1, Onomachi 2-chome

Nearest station"Kachigawa" Station on the JRChuo Line
7 minutes walkLeasable area

10,254.55㎡

Face-to-facetransaction┃Feature analysis by the Investment Corporation┃

 Location characteristics
 Areas located 7 minutes walk from Kachigawa Station of the JR Chuo Main Line, which can be accessed at 20minutes to Nagoya Station, and where many commuters live in Nagoya City
 This is a retail area with many families at the child-rearing stage, and is suitable for retail facilities centered on foodsupermarkets.
 Property characteristics
 A long term fixed lease agreement for business use has been concluded with the lessee, and high profit stability isexpected.
 The retail in terms of the Asset to Be Acquired is composed of 100-yen stores, daily-use stores such as drugstores andspecialty stores for infants and children's general merchandise, centered on food supermarkets, and we expect stablestore sales.
 A property with three entrances and exits, which has a highly convenient flat parking lot that can accommodate 346
units, and has an advantage as a retail facility because of its high accessibility by passenger cars.

┃ Effort of Xymax Group with the Valor Group┃
In 2017, Xymax Group and the lessee of the Asset to Be Acquired jointly established ValorMax Co., Ltd. with the aim ofsupporting the store opening and asset strategies by utilizing the real estate expertise of Xymax Co., Ltd., the sponsor of
XYMAX REIT.

4NotesP.2(Note 1) "Depreciation NOI difference" refers to the difference between the appraisal NOI after depreciation of the Asset to Be Acquired and the actual NOI after depreciation of the Asset to Be Disposed for the period ended February, 2021 and August, 2021.
(Note 2) "Difference on disposition" refers to the difference between the anticipated disposition price of the Asset to Be Disposed and the book value as of the end of August 2021.
(Note 3) Anticipated acquisition price and appraisal value of the Assets to Be Acquired are figures equivalent to the ratio of quasi-co-ownership interests (50%) of trust beneficiary rights to be acquired by XYMAX REIT. The same applies hereafter.
(Note 4) "Appraisal NOI after depreciation" refers to the value obtained by deducting assumed depreciation from appraisal NOI. Assumed depreciation is calculated by the Asset Management Company and may differ from actual depreciation amounts.
(Note 5) "Appraisal NOI yield after depreciation" = Percentage obtained by dividing appraisal NOI after depreciation by the estimated acquisition price is rounded to the nearest second decimal place in percentage.
(Note 6) "Actual NOI yield after depreciation" = (total amount of NOI after actual depreciation for the fiscal period ended February 28, 2021 and August 2021) ÷ estimated transfer price (rounded to the nearest second decimal place).
P.3(Note 1) The sale effect refers to the amount calculated by deducting various expenses associated with the transfer from the transfer difference.
(Note 2) "Revenue during the period (Chihaya)" refers to the amount of dissipation of revenue associated with the sale of the 8th (February 2022) and 9th (August 2022) fiscal periods of Renaissance 21 Chihaya as early as possible, which was anticipated in the Financial
Results for the 7th (August 2021) fiscal period.
(Note 3) "Revenue during the period (Kachigawa)" is the amount of increase in revenue associated with the acquisition of the Valor Kachigawa store (leasehold land) of the Asset to Be Acquired, respectively.
(Note 4) "Shift in repair costs of existing properties" is the amount of construction work that was carried over from the fiscal period ending February 28, 2022 (8th fiscal period) to the fiscal period ended August 31, 2022 (9th Fiscal Period) due to the impact of the Covid19, etc., out of the repair work that was expected in the financial results for the 7th fiscal period (August 2021).
(Note 5) "Revenue from existing properties" refers to the change in the revenue from existing properties that were expected in the results summary for the 7th fiscal period (August 2021) according to the prerequisites of "Notice of Revision of Investment Forecast andDistribution Forecast for the fiscal periods ending February 28, 2022 (8th fiscal period) and August 31, 2022 (9th fiscal period)" as of this release.
P.4(Note 1) "Appraisal NOI yield" is the ratio of appraisal NOI divided by the anticipated acquisition price rounded to the first decimal place as a percentage. Since only the DCF method is applied in the appraisal for the asset to be acquired, the appraisal NOI is applied thenet operating income at the first year.

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