Translation Purposes Only
January 27, 2022
For Immediate Release
Real Estate Investment Trust Securities Issuer
1-1-1 Akasaka, Minato-ku, TokyoXYMAX REIT Investment Corporation
Representa
Executive Director
tive

Kanemitsu
Shotaro(Securities Code: 3488）

Asset Management Company
XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation
Representa
Representative Director
Kanemitsu
tive
ShotaroContact
Head of Business Planning Division
Tatsuya
Nakayama
TEL: +81-3-5544-6880

Notice of Revision of Investment Forecast and Distribution Forecast for the fiscal periods ending February28, 2022 (8th Fiscal Period) and August 31, 2022 (9th Fiscal Period)

XYMAX REIT Investment Corporation (hereinafter, “XYMAX REIT”) announces today the following revision of its
operating forecasts and distribution forecasts for the fiscal periods ending February 2022 (the 8th fiscal period from
September 1, 2021 to February 28, 2022) and the Fiscal Period Ending August 2022 (the 9th Fiscal Period from March 1,2022 to August 31, 2022), announced in “(REIT) Financial Report for the Fiscal Period Ended August 2021” dated
October 13, 2021.

1. Details of Revision(1) The Fiscal Period Ending February 2022 (the 8th Fiscal Period)

Previous Forecast(A)
Revised forecast(B)Amount of change(B-A)
Rate of change((B-A))/ (A)Operatingrevenues

OperatingincomeOrdinary
income1,383Million yen
1,610Million yen
226
Million yen
16.4%

740
Million yen
943
Million yen
203
Million yen
27.5%

665
Million yen
867
Million yen
201
Million yen
30.2%

Net income

664
Million yen
866
Million yen
201
Million yen
30.3%

Distribution per unit
(excluding
distribution inexcess of earnings)

Distribution inexcess of earnings
per unit

2,977
Yen
3,877
Yen900
Yen30.2%

YenYenYen-(2) The Fiscal Period Ending August 2022 (the 9th Fiscal Period)

Previous Forecast(A)
Revised forecast(B)
Amount of change(B-A)
Rate of change((B-A))/ (A)Operatingrevenues

Operatingincome

Ordinary
income1,387Million yen
1,582
Million yen
195
Million yen
14.1%

732
Million yen
918
Million yen
186
Million yen
25.4%

674
Million yen
857
Million yen
183
Million yen
27.2%

Net income

673
Million yen
856
Million yen
183
Million yen
27.2%

Distribution per unit
(excludingdistribution inexcess of earnings)

Distribution inexcess of earnings
per unit

3,013
Yen
3,835
Yen822
Yen
27.3%(Reference)
February 28, 2022 (8th fiscal period): Assumed number of investment units outstanding at the end of the period is 223,400 units

Yen
Yen
Yen-August 31, 2022 (9th fiscal period): Assumed number of investment units outstanding at the end of the period is 223,400 units(Note 1) Forecast figures are calculated based on the assumptions set forth in the Attachment as of the date of this release. Therefore, actual operating
revenues, operating income, ordinary income, net income, distributions per unit, and distributions in excess of earnings per unit may differ
from the forecasts due to a variety of reasons including the future acquisition or sale of real estate and changes in XYMAX REIT’s operating
environment including the real estate market. Accordingly, XYMAX REIT does not guarantee payments of the forecast distributions per unit.
(Note 2) If XYMAX REIT expects changes to the aforementioned forecast greater than a certain extent, it may further revise its forecast.
(Note 3) Figures below the unit are rounded down, while percentages are rounded to the nearest second decimal place.

2.

Reason for revision
As announced today in "Notice Concerning Acquisition of Domestic Trust Beneficiary Right in Real Estate (ValorKachigawa Store (Leasehold land) (50% quasi-co-ownership interest)) and Sale of Domestic Real Estate Trust
Beneficiary Right (Renaissance 21 Chihaya)", XYMAX REIT decided to acquire Valor Kachigawa Store (Leaseholdland) (50% quasi-co-ownership interest) and sell 50% quasi-co-ownership interest of Renaissance 21 Chihaya onJanuary 31, 2022, and to sell 50% quasi-co-ownership interest of Renaissance 21 Chihaya on March 31, 2022. Alongwith this, changes occurred in the assumptions of the forecasts for the fiscal periods ending February 2022 (the8thFiscal Period) and August 2022 (the 9th Fiscal Period), which were announced in the "(REIT) Financial Report for
the Fiscal Period Ended August 2021" dated October 13, 2021. Accordingly, XYMAX REIT is revising its operating
forecasts and distribution forecasts as indicated in the above tables.

* XYMAX REIT website address: https://xymaxreit.co.jp/

[Attachment]
Assumptions for the underlying the operating forecast and distribution forecast for the fiscal period ending February 2022
(the 8th Fiscal Period: September 1, 2021 to February 28, 2022) and the fiscal period ending August 2022 (the 9th Fiscal
Period: March 1, 2022 to August 31, 2022)
Item
Accounting period

Assets undermanagement






Operating revenues●Operating expensesAssumptions
February 28, 2022 (the 8th Fiscal Period) (September 1, 2021 to February 28, 2022) (181days)
August 31, 2022 (the 9th Fiscal Period) (March 1, 2022 to August 31, 2022) (184 days)The assumption is that the actual real estate and real estate trust beneficiary rights held by
XYMAX REIT as of today (total of 15 properties) (hereinafter, the "current portofolioassets"), as stated in the "Notice Concerning Acquisition of Domestic Trust Beneficiary
Right in Real Estate (Valor Kachigawa Store (Leasehold land) (50% quasi-co-ownershipinterest)) and Sale of Domestic Real Estate Trust Beneficiary Right (Renaissance 21Chihaya)" announced today, the acquisition of one property (Valor Kachigawa Store(Leasehold land) (50% quasi-co-ownership interest)) (hereinafter the "Asset to BeAcquired") and the sale of one property (50% of Domestic Real Estate Trust Beneficiary
Right (Renaissance 21 Chihaya))(hereinafter the “Asset to Be sold” ) are scheduled on
January 31, 2022 and March 31, 2022, respectively.
In addition to the above, it is assumed that there will be no change in assets undermanagement (sales of assets and acquisition of new properties, etc.) by the end of the 9th
fiscal period.
Change may arise due to the acquisition and/or disposition of the portfolio assets.
Calculated based on the effective lease agreements entered into as of the end of December,
2021 and past tenant and market trends for the current portfolio assets , and as for the Asset
to Be Acquired, revenues are estimated using the information on the existing leaseagreements and lease agreements to be effective as of the Scheduled Acquisition Date andby taking into account various factors, such as the assumed occupancy rate and rent
fluctuation projections based on tenant move-in/move-out and rent level projections.
Variable rent is based on a conservative review by XYMAX REIT based on the operational
forecasts submitted by the operator, assuming that recovery from the effects of the COVID19 will take more than 12 months, and the variable rent for the fiscal years ended February
28, 2022 (the 8th fiscal year) and August 31, 2022 (the 9th fiscal year) will not be incurred.
[Hotel Vista Sendai]
Fixed rent: 20 million yen per month
Variable rent: Monthly variable rent is calculated by subtracting 21 million JPY from thecurrent month's GOP (Note 1) and multiplied by a certain rate (Note2)(Note 1)If the amount obtained by subtracting 21 million yen from the GOP for the current
month becomes negative, the variable rent for the current month will be 0 yen.
(Note 2) “a certain rate” shall not be disclosed because the consent of the operator has notbeen obtained.
The amount of gain on sale (excluding expenses the asset to be sold) ending February 2022
(the 8th fiscal period) and August 2022 (the 9th fiscal period) are assumed.
The assumption is that there will be no delinquent or unpaid rent by tenants and no gain
(loss) on sales of real estate properties.
Of operating expenses, the main components are as follows: (Figures less than the unit are
rounded down. The same applies hereafter.)
Fiscal period ending
Fiscal period ending
February 28, 2022
August 31, 2022
(the 8th Fiscal Period)(the 9th Fiscal Period)
Total rent expenses
494 million yen
488 million yen
Management fees
91 million yen
85 million yen
Repair expenses
29 million yen
51 million yen
Property taxes
137 million yen
133 million yen
Depreciation
141 million yen
132 million yen
Other than expenses
172 million yen
175 million yen
related to leasing business
Asset management fees
80 million yen
83 million yen
Expenses related to leasing business, which are the main operating expenses, are calculated







Non-operating
expensesInterest-bearing
liabilitiesInvestment unitDistribution per unit
(Excluding distributions
in excess of earnings)

Per unitDistribution in excessof earnings per unit

Other


on the basis of historical data at XYMAX REIT (historical data disclosed by the previousowner, etc. in the case of periods for which there is no historical data at XYMAX REIT)
and by taking into consideration factors causing fluctuation in expenses.
Depreciation is calculated using the straight-line method inclusive of incidental expenses,
etc.
In general, property taxes and city planning taxes are settled when real estate is purchased
or sold by calculating them on a pro rata basis between the current owners and the periods
in which they are acquired. However, XYMAX REIT does not record expenses in theperiod of acquisition because the portion equivalent to the settlement amount is includedin the acquisition cost. Therefore, the property tax and city planning tax, etc. will not berecorded as expenses in the February 2022 (the 8th Fiscal Period) to the February 2023 (the10th Fiscal Period) , but the amount of property tax, etc. will be recorded as expenses fromthe August 2023 (the 11th Fiscal Period). The total amount of fixed asset tax and city
planning tax, etc. included in the acquisition cost for the Asset to Be Acquired is assumed
to be 5 million yen.
Repair expenses are the amount necessary in each fiscal period as assumed on a propertyby-property basis by the Asset Management Company. However, repair expenses possibly
increasing in amount or additionally arising from unforeseeable factors, the amount
generally tending to vary materially from fiscal year to fiscal year and not being an amountthat arises periodically, etc. may result in repair expenses for each fiscal period differing
materially from the forecast amount.
For the fiscal period ending February 28 2022 (the 8th Fiscal Period), interest expenses andother borrowing related expenses are assumed to be 76million yen.
For the fiscal period ending August 31 2022 (the 9th Fiscal Period), interest expenses andother borrowing related expenses are assumed to be 61million yen.
As stated in the "Notice Concerning Borrowings of Funds" announced today, on January
31, 2022, XYMAX REIT scheduled to borrow short-term loans of 1,100 million yen, longterm loans of 5,408 million yen, and repay short-term loans of 1,770 million yen, and longterm loans of 3,088 million yen.
As a result, it is assumed that the total loan balance as of January 31, 2022 is 15,700 million
yen.
Of the above, 1,100 million yen of short-term loan due in the August 2022 (the 9th FiscalPeriod) is assumed to be repaid upon completion of the sale of Renaissance 21 Chihaya.
LTV ratio is expected to be 36.8% at the end of the February 2022 (the 8th Fiscal Period)and 36.5% at the end of the August 2022 (the 9th Fiscal Period). In addition, the following
formula is used to calculate LTV ratio:
LTV = Total interest-bearing liabilities ÷ Total assets × 100
The assumption is the total number of investment units issued and outstanding is based on
the number of units issued and outstanding as of the date of this report: 223,400 units.
It is assumed that there will be no change in the number of investment units due to theissuance of new investment units, etc. until the end of the August 2022 (the 9th FiscalPriod).
Distribution per unit (excluding distribution in excess of earnings) is calculated based on
the assumption that distribution will be in accordance with the cash distribution policy
provided in XYMAX REIT’s Articles of Incorporation.
Distribution per unit (excluding distribution in excess of earnings) may vary due to various
factors, such as fluctuation in rent revenue accompanying change in assets undermanagement, change in tenants, etc. or incurrence of unexpected repairs.
No cash distribution in excess of earnings (distribution in excess of earnings per unit) isscheduled to be made at this point in time.
The assumption is that there will be no revision of laws and regulations, tax systems,
accounting standards, listing regulations provided by Tokyo Stock Exchange, rules
provided by The Investment Trusts Association, Japan, etc. that will impact the forecast
figures above.
The assumption is that there will be no unforeseen material change in general economic
trends, real estate market conditions, etc.