Supplementary
Materials
Securities Code: 3488
Acquisition and leasing overview of trust beneficiaryright for domestic real estate (Life Fukuizumi Store)
August 27, 2020

Overview of The Acquisition
We decided to acquire the property using borrowings towards the achievement of our stabilized DPU target of ¥3,300.

┃ Investment Highlights ┃┃ Borrowing capacity by LTV level ┃ The Acquisition of the property is expected to increase the DPU by approximately
60 yen*1 in cruising periods*2
 The acquisition is through face‐to‐face negotiations leveraging sponsor group
customer base The acquisition will enhance portfolio stability because the property is leased bygrocery supermarket with minimal influence from COVID‐19
 The LTV level will be maintained at a low level even after we complete theborrowing through the Acquisition, so flexible acquisitions by additionalborrowings will be continuously possible.
LTV after this acquisition: 33.9%
LTV at the end of 4th FP: 31.9%

LTV levelvs. total assets

Possible loan amount(after this acquisition)

40.0%

Approx. 3.8 billion yen

45.0%

Approx. 7.6 billion yen50.0%

Approx. 12.1 billion yen┃ Portfolio Status after the Acquisition ┃● Portfolio composition of retail properties● Percentage by asset typeAs of February 29th, 2020
(End of 4th FP)

As of February 29th, 2020
(End of 4th FP)

After the Acquisition
100%

100%

After the Acquisition
92.1%

91.8%
20.5%

9.9%

7.9%

8.2%
12.9%

13.3%

24.2%
90.1%

26.6%

54.3%

52.6%

79.5%

■ Station‐front■ Other

Neighborhood*1* The breakdown is based on the acquisition price.
*1 Retail facilities the majority of customer can easily come on foot or by bicycle in a short time.

■ Office■ Retail■ Hotel■ Others

Main asset* The breakdown is based on the acquisition price.

*1: Regarding the expected DPU (forecast), figures listed in this report are based on the conditions in (REIT) Financial Report for the Fiscal Period Ended February 2020 issued on April 15, 2020. These figures take into account fluctuations in operating revenue, expenses, andinterest‐bearing liabilities when we acquire the property. Therefore, the actual DPU is subject to change due to various factors, such as changes in circumstances at our investment corporation and the real estate market environment in the future, etc. Note that nosupplementary document guarantees the amount of the dividend.
*2: The DPU is calculated excluding special factors such as temporary acquisition costs, property taxes, and fees.
*3: Unless otherwise specified, amounts are truncated to the nearest unit and ratios are rounded to the second decimal place.

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Summary of the Property
The property to be acquired is in a location suitable for supermarkets and the business continuity for tenants is expected to be high.

Life Fukuizumi Store┃ Overview ┃┃Analysis ┃Anticipated acquisition
price1.065 billion yen

Appraisal value

1.09 billion yen

Appraisal NOI yield

4.8 %Appraisal NOI yield after
depreciation

4.4 %Location
Access
Leasable area444‐1, Kami, Nishi‐ku,
Sakai‐shi, Osaka
Otori Station on the JR
Hanwa Line
12 minutes on foot3,309.29 ㎡

 Features of property
 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.
 Overview of the surrounding area As a suburb of three major metropolitan areas, the population in the trading area is the average level:
1 km, 29,000 people; 2 km, 103,000 people; 3 km, 218,000 people
 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.
 This location is suitable for supermarkets as the percentage of households with one person is low, andthe percentage of households with two or more persons is high.
 Products handled Food, daily necessities, and services (cleaning)“NOI yield after depreciation” = (Appraisal NOI *direct capitalization method－Depreciation) ÷ Anticipated acquisition price.
Depreciation was calculated by XYMAX REIT, and there may be cases that it is different from the actual amount.

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