Translation Purposes Only
August 27, 2020
For Immediate Release
Real Estate Investment Trust Securities Issuer
1-1-1 Akasaka, Minato-ku, TokyoXYMAX REIT Investment Corporation
Representative: Nobuhito Inatsuki, Executive Director(Securities Code: 3488)
Asset Management Company
XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation
Representative: Nobuhito Inatsuki, Representative Director
Contact:
Tatsuya Nakayama
Head of Business Planning Division
Head of REIT Management Division
TEL: +81-3-5544-6880

Notice Concerning Acquisition of Domestic Trust Beneficiary Right in Real Estate and Leasing Thereof(“Life Fukuizumi Store”)
XYMAX REIT Investment Corporation (hereinafter “XYMAX REIT”) hereby announces that XYMAX REAL ESTATEINVESTMENT ADVISORS Corporation (hereinafter the “Asset Management Company”), an asset managementcompany to which XYMAX REIT entrusts the management of its assets, decided on August 27, 2020 to acquire thetrust beneficiary right in the following property described in 1.(1) below (hereinafter the “Asset to Be Acquired”)
and to conduct the leasing thereof.

1.

Overview of the Acquisition(1) Asset to Be Acquired
Category

Propertyno.
(Note 1)

Property
nameRetailRT-04

Life
Fukuizumi
Store

Location

Anticipatedacquisition
price(million yen)
(Note 2)

Appraisalvalue(millionyen)(Note 3)

Appraisal
NOI
yield(Note 4)

Sakai-city,
Osaka

1,065

1,090

4.8%

(2) Scheduled purchase and sale agreement date(3) Scheduled acquisition date(4) Sellers(5) Acquisition Funds(6) Settlement method

Existence ofintermediary:

None: August 28, 2020
: September 1, 2020
: See “4. Profile of Seller” below.
: Borrowings (Note 5) and cash on hand
: 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 shall apply hereinafter.
(Note 2) “Anticipated acquisition price” is the purchase price of the Asset to Be Acquired as set forth in the purchase and sale agreement.
The purchase price does not include national and local consumption taxes or acquisition costs and is rounded down to thenearest million yen. The same shall apply hereinafter.
(Note 3) “Appraisal value” represents the appraised value as stated in the real estate appraisal report dated July 31, 2020, as appraisal
date. The appraisal was prepared by Daiwa Real Estate Appraisal Co., Ltd.
(Note 4) “Appraisal NOI yield” is the ratio of appraisal NOI of Asset to Be Acquired to the anticipated acquisition price rounded off tothe first decimal place as a percentage. Appraisal NOI refers to Net operating income calculated by deducting Operating
CAUTIONS: This press release is a public statement of the acquisition and lending of XYMAX REIT and is not intended to solicit
investments.

1

expenses from Operating revenue in the appraisal report and refers to revenue before Depreciation is deducted. It is different
from NCF (Net income, i.e. 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 figuresin the appraisal report. Actual figures may differ from those after the acquisition by XYMAX REIT.
(Note 5) For more details, please refer to “Notice Concerning Borrowing of Funds” dated August 27, 2020.

2.

Reasons for the acquisition and leasing
XYMAX REIT has been growing steadily in its distributions since the listing with its immediate goal toachieve a cruising distribution of JPY 3,300 per unit, and its policy is to achieve the above goals through various
growth strategies, including internal and external growth. In external growth, we are considering theacquisition of properties by assessing the stability and maintaining a price line firmly with an awareness ofthe balance between distribution growth and financial soundness. XYMAX REIT realizes it by capitalizing on
the client network and information capabilities of the XYMAX Group, the sponsor group of XYMAX REIT, tocapture opportunities, and by carefully analyzing the potential of each property based on the XYMAX Group's
accumulated expertise, know-how, and data of property management.
The Asset to Be Acquired is a property owned by a domestic general operating company, which are CRE
client (Note) of the XYMAX Group, and the acquisition has been through the face-to-face negotiated transaction
utilizing the XYMAX Group's customer base. In addition, the acquisition of the Assets to Be Acquired is expected
to create stable profit over the medium-to-long-term, taking the following points into consideration. XYMAXREIT believes that this will meet our investment policy and contribute to the enhancement of portfolio quality
and unitholders' value.
(NOTE) “CRE client” refers to whom the XYMAX Group provides services related to the consulting and implementation of strategies forthe use of real estate (including leased property), investment, and effective use of the real estate.

(1) Features of the Asset to Be Acquired The property is a grocery supermarket located in the suburbs of Sakai City, Osaka Prefecture.
 It is a two-story store with 144 parking lots adjacent to Route 36, which is a community road in theneighborhood. The store format is highly convenient for short-time shopping.
 Based on analysis using the XYMAX Group's knowledge, expertise, and data on retail properties, thehigh business continuity can be expected due to the relatively low rent burden on its tenant.
(2) Overview of Trading Area
① Location and Transportation accesses
 It is located in a residential area near Otori station of JR-Hanwa Line. Route 36, is in front, whichis community road in the neighborhood.
 From geographic perspectives, in addition to the high frequency of visits by neighboring residents
using bicycles, visits from the southern area of the Asset to Be Acquired by cars can be expected
due to the good road approach.
② Overview of the surrounding area
 Based on the 2015 Population census, the population in the trading area was approximately
29,000 people in a 1-km radius and 103,000 in a 2-km radius. This is the average level in thesuburbs of the three major metropolitan areas.
 Population composition in current trading areas is particularly high for people in their 30s and
40s, followed by people under 10, indicating that the market has many younger families. In
addition, the percentage of households with one person is low, and the percentage of householdswith two or more persons is high, so the location is suitable for this type of grocery supermarkets.
(3) Products handled
Foods, daily necessities, and service (cleaning)

CAUTIONS: This press release is a public statement of the acquisition and lending of XYMAX REIT and is not intended to solicit
investments.

2

3.

Summary of Asset to Be Acquired
The summary of Asset to Be Acquired is as follows.
Refer to Reference 3 “Explanation of matters stated in Summary of Asset to Be Acquired” for explanationsof matters stated in the columns in the table.

Expected date of acquisition

Category
Property no.
Summary of the Specified Asset
September 1, 2020
Type of specified asset

Anticipated acquisition price

1,065 Million yen

Appraisal value(appraisal date)

1,090 Million yen(July 31, 2020)

LocationTransportationLand
Lot number
Building
coverage ratio

444-1, Kami, Nishi-ku, Sakai-shi, Osaka
12 minutes on foot from Otori Station on JR Hanwa Line
444-1
Area

6,225.21 ㎡

60%

Floor-area ratio

200%Type I Residential
Geographic area

Type of Ownership

Ownership

Property
NameLife Fukuizumi Store

ZoningOutline ofTrustbeneficiaryright

TrusteeTrustmaturitydate

RetailRT-04
Trust beneficiary right
Mitsubishi UFJ Trust
Banking CorporationandEnd of August 2030

Building

Construction
Structure and number of Steel construction, flat roof, two
17 December 1996
date
floorsfloorsUse
StoresTotal Floor Area
3,358.26 ㎡
Architect
KAJIMA CORPORATION
Builder
KAJIMA CORPORATION
Construction
District construction
Type of Ownership
Ownership
confirmation
surveyor, Sakai City
ML company (planned)
ML typePass-through
XYMAX REIT
PM company
XYMAX KANSAI Corporation
Remarks
Under the lease agreement with the Tenant, if the Lessor intends to transfer the ownership of the property to a third party
by assignment or otherwise, the lessee shall be notified in advance, and if the lessee so desires, the Lessee shall be entitled
to consider preferentially purchasing the ownership of the property.
Overview of Leasing
3,309.29 ㎡
3,309.29 ㎡
Leasable area
Leased area
Occupancy rate
100%
Number of tenants
1
Annual rent
Undisclosed (Note)
Lease deposits
Undisclosed (Note)
Main tenant
Life Corporation(NOTE) Since the approval of the lessee for the disclosure of information has not been obtained, the information has not been disclosed dueto this unavoidable reason

Inspection company
Urgent and short-term repair
expenses
Inspection company
State of collaterals

Outline of Engineering Report
Tokio Marine & Nichido Risk
Date of inspection
Consulting Co., Ltd.
Long-term
repair0 yen
expenses(annualaverages)
Outline of Earthquake Risk Analysis, etc.
Tokio Marine & Nichido Risk
PML
Consulting Co., Ltd.
None

August 2020
3,626,000 yen

14.7%

CAUTIONS: This press release is a public statement of the acquisition and lending of XYMAX REIT and is not intended to solicit
investments.

3

Summary of Appraisal Report
Life Fukuizumi Store
1.09 billion yen
Daiwa Real Estate Appraisal Co., Ltd.
July 31, 2020
Details (unit: thousand
Summary, etc.
yen)
Value based on income approach
Assessed by linking value based on direct capitalization
1,090,000
method to DCF-based value based on income approach.
Value based on direct capitalization
1,100,000
method(1) Operating revenue
Undisclosed (Note)(i. - ii.)
i.
Effective gross revenue
Undisclosed (Note)
ii. Loss from vacancy, etc.
0 None, assuming long-term tenancy.
(2) Operating expenses
Undisclosed (Note)(a. +b. +c. +d. +e. +f.
+g. +h.)a. Maintenanceand0
Not applicable, as the expenses will be borne by the tenant.
management expenses
b. Utility expenses
0 Not applicable, as the expenses will be borne by the tenant.
c. Repair expenses
Undisclosed (Note)
d. PM fee
Undisclosed (Note)e. Tenantleasing0None, assuming long-term tenancy.
expenses, etc.
f. Taxes and public dues
Undisclosed (Note)
g. Insurance premiums
Undisclosed (Note)
h. Other expenses
Undisclosed (Note)(3) Net operating income
51,571((1)-(2))(4) Gain from investment ofUndisclosed (Note)
deposits(5) Capital expenditures
Undisclosed (Note)
Net income
49,314((3)+(4)-(5))
Capitalization rate
4.5% Assess the property by comprehensively considering thelocation, Building, and Other conditions of the subject
property and by referring to capitalization rate of similar
properties in the same trading area.
DCF-based Value based on income
1,080,000
approach
Discount rate
4.3% Assessed by comparing discount rate related totransactions of similar properties and yields on otherfinancial instruments, etc.
Terminal capitalization rate
4.7%
Assessed by taking into account the marketability of thesubject property at the time of expiration of the holding
period.
Cost approach value
1,190,000
Land ratio
85.1%
Building ratio
14.9%
Other items considered by real estate Particularly None.
appraiser upon appraisal
Property nameAppraisal value
Name of appraiser
Appraisal date
Items

(NOTE) Not disclosed due to unavoidable circumstances in that disclosure has not been obtained from the lessee and information thatcan be calculated is included, which may cause disadvantage to the investment corporation due to impairment of trust of thelessee, and thereby harm the interests of the investors.

CAUTIONS: This press release is a public statement of the acquisition and lending of XYMAX REIT and is not intended to solicit
investments.

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4.

Profile of Seller
(1)
(2)
(3)

(4)

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

5.

Name
Location
Representative

JDC CORPORATION
4-9-9, Akasaka, Minato-ku, Tokyo
President Takeo Asakura
・ Operations relating to development of electrical power, transportation, ports
and harbors, afforestation, flood control, irrigation, land reclamation,
underground resources, and other development of national land・ Research and planning related to development of electrical power,transportation, ports and harbors, afforestation, flood control, irrigation, land
reclamation, development of underground resources, and other developmentof national land, research and design of related export plants, and consulting
work related to these・ Production, sales, loan and repair of construction and mining machinery,other machinery, tools, etc., necessary for conducting our primary businesses,
and related mediation activities.
・ Design, contractual, and management services related to civil engineering andbuilding construction
Business activities
・ Activities related to the manufacture and sale of construction materials, stonematerials, chemical products, etc.
・ Activities related to the sale, rental, brokerage, management, and appraisal ofreal estate・ Ownership, rental, and management of leisure facilities (golf courses, ski
resorts, etc.)
・ Environmental conservation activities, including soil remediation, water
remediation in rivers, lakes and bays, and the collection, transport, processing,disposal and recycling of municipal, industrial and construction waste
・ Business related to the generation and supply of electricity, heat, etc.
・ Investment in the business activities listed above
・ All work related or incidental to the business activities listed above
Capital5,012 Million yen
Date of establishment
April 10, 1951
Net assets
68,317 Million yen (consolidated basis)
Total assets
133,937 Million yen (consolidated basis)
JDC Business Association (9.09%), XYMAX Corporation (6.63%), THE SAIKYO
Major shareholders and
BANK,LTD. (4.86%), Mizuho Trust & Banking Co., Ltd. (JDC Foundation for thetheir shareholding ratio
Future) (4.52%), MUFG Bank, Ltd. (3.96%) (as of the end of May 2020)
Relationship between the investment corporation and asset management company and the said company
The said company holds 1.34% of the total issued investment units of XYNMAXCapital relationship
REIT as of the end of February 2020.
There is no remarkable personnel relationship between XYMAX REIT / the Asset
Personnel relationshipManagement Company and the said company.
There is no remarkable business relationship between XYMAX REIT / the AssetBusiness relationshipManagement Company and the said company.
The said company is not an interested party of XYMAX REIT or the Asset
Status of relationshipManagement Company.

Transactions with interested parties
With respect to the Asset to Be Acquired, a property management agreement (Life Fukuizumi Store)(hereinafter “PM Agreement”) will be concluded between the Trustee of the Asset to Be Acquired (hereinafter“Trustee”) and the XYMAX KANSAI Corporation (hereinafter “Contractor”) on the scheduled acquisition date.
Contractor is a fully owned subsidiary of XYMAX Corporation, the parent company of Asset Management
Company and falls under the category of an interested party set forth in Article 123 of the Enforcement Orderof the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951, as amended) (hereinafterreferred to as the “Investment Trust Act”) and the Act on Investment Trust and Investment Corporations(Cabinet Order No. 480 of 2000, as amended thereafter), as well as an interested party set forth in the REIT
Stakeholder Transaction Management Rules, which are internal rules of Asset Management Company.
Accordingly, in entering into PM Agreement, Asset Management Company has conducted the required
deliberations and resolutions in accordance with the provisions of the Rules on the Management ofTransactions of Interested Persons. In accordance with these Rules, Asset Management Company has obtained
CAUTIONS: This press release is a public statement of the acquisition and lending of XYMAX REIT and is not intended to solicit
investments.

5

The Investment Corporation's approval of the Board of Directors meeting held on August 27, 2008, based on
its internal rules.
6.

Status of Previous Owners, etc.
The Acquisition is not transactions with interested parties of either XYMAX REIT or the Asset Management
Company.

7.

Outline of Intermediation
Not applicable.

8.

Future Outlook
The impact of the transaction of the Asset to Be Acquired on the financial results is minimal and is within thescope of the Tokyo Stock Exchange's minimum item requirements. For more information on the outlook of
XYMAX REIT for the period ending February 2021 (the 6th Fiscal Period) and the period ending August 2021
(the 7th Fiscal Period) that incorporates the effect of the Acquisition, please refer to the XYMAX REIT's
Financial Report for the Fiscal Period Ended August 2020 that is scheduled to be published on October 14,
2020.
End.

* XYMAX REIT website: https://xymaxreit.co.jp/en/index.html(For reference)“Notice Regarding Borrowing of Funds” dated August 27, 2020
<Attachment>
Reference 1 Property photographs and maps
Reference 2 Property portfolio of XYMAX REIT (after the transaction)
Reference 3 Explanation of matters to be stated in Summary of Asset to Be Acquired

CAUTIONS: This press release is a public statement of the acquisition and lending of XYMAX REIT and is not intended to solicit
investments.

6

Reference 1 Property photographs and maps
Life Fukuizumi StoreCAUTIONS: This press release is a public statement of the acquisition and lending of XYMAX REIT and is not intended to solicit
investments.

7

Reference 2 Property portfolio of XYMAX REIT (after the transaction)
Categ Property
ory
no.

Off
ice

Property nameLocationOt
her

Share ofportfolio(%)(Note 2)XYMAX Nishi-Shimbashi Building

Minato-ku, Tokyo

February 16, 2018

2,500

7.3

OF-02

XYMAX Iwamotocho Building

Chiyoda-ku, Tokyo

February 16, 2018

4,250

12.5

OF-03

XYMAX Shinjuku-Gyoen Building

Shinjuku-ku, Tokyo

February 16, 2018

5,020

14.7

OF-04

XYMAX Kamiyacho Building

Minato-ku, Tokyo

February 16, 2018

880

2.6

OF-05

XYMAX Higashi-Azabu Building

Minato-ku, Tokyo

February 16, 2018

1,550

4.5

OF-06

XYMAX Higashi-Ueno Building

Taito-ku, Tokyo

February 16, 2018

1,150

3.4

OF-07

XYMAX Hachioji Building

Hachioji-shi, Tokyo

February 16, 2018

2,600

7.6

-

17,95052.6

February 16, 2018

4,100

12.0

February 16, 2018

790

2.3

Kawasaki-shi,
Kanagawa
Kawasaki-shi,
Kanagawa

RT-01

Muza Kawasaki

RT-02

Life Kawasaki Miyuki Store

RT-03

Vita Seiseki-Sakuragaoka

Tama-shi, Tokyo

February 16, 2018

3,100

9.1

RT-04

Life Fukuizumi Store

Sakai-city, Osaka

September 1, 2020

1,065

3.1

-

9,055

26.6

February 16, 2018

4,400

12.9

Subtotal/Average
Hotel(Anticipated)acquisition price(million yen)
(Note 1)

OF-01

Subtotal/Average

Ret
ail

(Expected)
acquisition
date

HT-01

OT-01

Hotel Vista Sendai

Sendai-shi, Miyagi

Subtotal/Average

-

-

4,400

12.9

Renaissance 21 Chihaya

Fukuoka-shi, Fukuoka

February 16, 2018

2,700

7.9

Subtotal/Average

-

-

2,700

7.9

Total/Average--

34,105100.0(Note 1) "(Anticipated) acquisition price" refers to the transaction amount (excluding acquisition expenses, Non-current assets tax, city planningtax settlement amount, consumption tax, etc.) of each trust beneficiary right listed in each the purchase and sale agreement pertaining
to each acquired asset and the Asset to Be Acquired, and is rounded down to the nearest million yen.
(Note 2) “Share of portfolio” is the (anticipated) acquisition price of each portfolio asset expressed as a percentage of the total of (anticipated)acquisition prices, rounded to one decimal place.

CAUTIONS: This press release is a public statement of the acquisition and lending of XYMAX REIT and is not intended to solicit
investments.

8Reference 3 Explanation of matters to be stated in Summary of Asset to Be Acquired(a) Explanation of the “Category” and “Property no.”・ “Category” refers to Office, Retail, Hotel, and Other that XYMAX REIT will invest in.
・ “Property no.” is numbered as OF for Office, RT for Retail, HT for Hotel, and OT for Other.
(1) Explanation of the “Summary of the Specified Asset”
・ “Expected date of acquisition” indicates the expected date of acquisition of the trust beneficiary rightcontained in the purchase and sale agreement for the Asset to be Acquired.
・ “Type of the specified asset” describes the type of real estate and other assets as specified assets and theassets incidental or related thereto.
・“Anticipated acquisition price” rounds down the sales price (excluding consumption tax, local
consumption tax, and brokerage fees) stated in the sales contract pertaining to the Asset to Be Acquired to
the nearest million yen.

・ “Appraisal value (appraisal date)” refers to Appraisal value stated in the real estate appraisal report
relating to the Asset to be acquired prepared by Daiwa Real Estate Appraisal Co., Ltd.
・ Outline of Trust beneficiary right lists the terms of the trust agreement entered into with Trustee for the
Asset to be acquired.
・In principle, the “Location” describes the residential address.
・ “Transportation” describes the time (rounded up to the nearest minute) when the distance from thenearest station calculated by Asset Management Company is walked at 80 meters per minute or the time
indicated in the real estate appraisal report or Engineering Report.
・ “Lot number” describes the building's location on the real estate register (or location of one of them if
there is more than one).
・ “Site area” is based on the description in the real estate registry (including the leased land area if any) andmay not coincide with the current situation.
・ Land's “Building coverage ratio” refers, in principle, to the ratio of the building area of a building to sitearea set forth in Article 53 of the Building Standards Act (Law No. 201 of 1950, including subsequent
revisions; the same shall apply hereinafter), and includes the upper limit of building coverage ratio(designated building coverage ratio), if any, set forth in the City Planning in accordance with Zoning, etc.
The specified building coverage ratio may be relaxed, increased or reduced due to fire-resistant buildingsin the Fire Protection Geographic Area or for other reasons and may differ from building coverage ratio
actually applied.
・ “Floor-area ratio” refers to the ratio of the total area of buildings to Site Area set forth in Article 52 of the
Building Standards Act, and includes the upper limit (designated floor-area ratio) of floor-area ratio set
forth in the city plan according to Zoning, etc. (if there are two or more such values, both). The specified
floor-area ratio may be relaxed, increased or decreased due to the width of the road to be connected to thesite or for other reasons, and may differ from floor-area ratio actually applied.
・ “Zoning” describes the types of Zoning (if there are more than one) listed in Article 8, Clause 1, item 1 of
the Urban Planning Law (Law No. 100 of 1968, including any subsequent revisions).
・ The “Type of ownership” of land and building describes the types of rights pertaining to the Asset to Be
Acquired by XYMAX REIT.
・ “Construction date” indicates the date of the new construction of the main building described in the realestate register.
CAUTIONS: This press release is a public statement of the acquisition and lending of XYMAX REIT and is not intended to solicit
investments.

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・ “Structure and number of floors” is based on real estate registers for the main building.
・ “Use” is based on building types of entries in the real estate registry for the main building.
・ “Total floor area” includes the floor area of the attached building based on the description in the real estateregister.
・ “Architect,” “Constructor” and “Inspection agency” are listed in the name of the company or institution at
the time the building was designed and constructed.
・ “ML company” and “PM company” represent the master leasing company and PM company. “ML type”
refers to Property acquisition plan master lease type (pass-through type, fixed rent type, or variable renttype).
・ In addition to matters that are considered to be important for rights and use relating to the Asset to Be
Acquired as of today, remarks include matters that are considered to be of importance considering theappraised value, profitability, and impact on disposal potential.
(c) “Overview of Leasing”
・ “Leasable area” represents the sum of leased area based on building drawing and other drawings attachedto the lease agreements and the lease agreement on Property acquisition plan as of today and the area
based on Building drawing and other drawings of the vacant space.
・ “Leased area” presents the totals of leased area based on the lease agreements relating to the Asset to Be
acquired as of today and building drawings attached to the lease agreements. In the event that a master
lease agreement has been concluded for the Asset to Be Acquired, the total area actually concluded andleased with the end tenant is rounded to the nearest third decimal place.
・ “Occupancy rate” represents the ratio of leased area to leasable area related to the Asset to Be Acquired
property as of today, rounded off to the first decimal place.
・ “Number of tenants” presents the sum of number of tenants on the Asset to Be Acquired under a leaseagreement entered into as of today. (the total number of end tenants if the pass-through master leaseagreement is been into).
・ “Annual rent revenue” rounds down the sum of the annual rent (one-year rent calculated in accordancewith the provisions of the lease agreement if only the monthly rent is provided) including the CAM set forthin the respective lease agreement for which the Asset to Be Acquired has been executed as of this date to
the nearest million yen.
・“Security deposit” with respect to tenants already occupied, rounds down the sum of the security deposit
specified in the respective lease agreements as of this date to the nearest million yen. In addition, in theevent that the master lease agreement has been concluded for the Asset to be Acquired and if the security
deposit is equal to the total of the security deposit stipulated in the lease agreements concluded with theend tenants, the sum of the security deposit and is rounded down to the nearest million yen.
・ “Main tenant” represents the tenant that leases the biggest area among the tenants those who leases theAsset to be Acquired from XYMAX REIT or Trustee as of today. Where a pass-through type master leaseagreement has been concluded, the Main Tenant represents the end tenants.
(d) Explanation concerning the “Outline of Engineering Report”
・ “Urgent and short-term repair expenses” and “Long-term repair expenses (annual averages)” are statedbased on Engineering Report.
・ “Short-term repair expenses” refers to the cost of repairing and renewing defects that require repairs, etc.
CAUTIONS: This press release is a public statement of the acquisition and lending of XYMAX REIT and is not intended to solicit
investments.

10

in preference to daily maintenance, and describes the estimated total amount for repair expenses required
within one year from the date of Engineering Report.
・ “Long-term repair expenses (annual average)” refers to the cost of maintenance of functions ormaintenance of safety in operation for aging deterioration. The aggregate amount of repair expenses andrenewal costs required within 12 years from the date of Engineering Report is converted into the annual
average amount in Asset Management Company and rounded off to the nearest thousand yen.
(d) Explanation of the “Outline of Earthquake Risk Analysis, etc.”
・ “PML” means the expected loss rate (Probable Maximum Loss) due to earthquakes. Although there is no
uniform and rigorous definition of PML, this document defines expected losses and probabilities for large
and small earthquakes that may occur in 475 years as the percentage of expected losses relative to building
replacement value calculated and statistically processed. PML is calculated based on the ground conditions,Geographic area factors, and structural considerations. PML figures are based on Seismic Risk Evaluation
Report dated August 2020 issued by Tokio Marine & Nichido Risk Consulting Co., Ltd. The descriptions in
Seismic Risk Evaluation Report only indicate the opinions of the reporter and do not guarantee theappropriateness or accuracy of the descriptions.
(f) Explanation of the “State of collaterals”
・ If the security is cancelled after the acquisition of the Asset to be Acquired, it is stated as “None.”CAUTIONS: This press release is a public statement of the acquisition and lending of XYMAX REIT and is not intended to solicit
investments.

11