Presentation Materials
for the 4th Fiscal Period Ended February 2020

Securities Code: 3488

Basic Principles and Characteristics of XYMAX REITXYMAX REIT determines the value of individual properties to maximize unitholder value. We fully utilize our strength inManagement, Assessment, and Sourcing based on the knowledge and know‐how of the XYMAX Group, which has Japan’s
No.1 track record in property management.
Contents
I.

Overview of the Financial Results

II. Management Highlights for the 4th FP

III. Earnings Forecasts and the Growth Strategy

3

898

Terms

Definition

Estimated value atthe end of period

Indicates the acquisition value appraised by the appraisers or the research
price based on the Articles of Incorporation of XYMAX REIT and the“Ordinance on Accountings of Investment Corporations” (Ministry of
Finance Ordinance No. 47 of 2006, as amended) with the last day of thecurrent fiscal period as the research dateUnrealized gain

Estimated value of real estate, etc. at the end of period – book value atthe end of period

LTV based on total
assetsBalance of interest‐bearing liabilities / total assets

Appraisal LTV

Balance of interest‐bearing liabilities / (total assets + unrealized gain)

Net asset per unit

(Net asset‐total distribution)/ total number of investment units issued andoutstanding

NAV per unit

(Net asset + unrealized gain‐total distribution) / total number ofinvestment units issued and outstanding

Acquisition price

The sales price of each trust beneficiary right indicated in the trust
beneficiary rights sales agreement, and does not include consumption
taxes, local consumption taxes and brokerage fees, etc.

13

Notes
 Unless otherwise specified, amounts are rounded to the nearest unit and ratios aretruncated at the first decimal place.

IV. ESGAppendix25

31

 The following abbreviations of property names are used.
XYMAX Nishi‐Shimbashi Building : Nishi‐Shimbashi

XYMAX Iwamotocho Building : Iwamotocho

XYMAX Shinjuku‐Gyoen Building : Shinjuku‐Gyoen

XYMAX Kamiyacho Building

XYMAX Higashi‐Azabu Building: Higashi‐Azabu

XYMAX Higashi‐Ueno Building : Higashi‐Ueno

XYMAX Hachioji Building: Hachioji

Muza Kawasaki

Life Kawasaki Miyuki Store: Kawasaki Miyuki Vita Seiseki‐Sakuragaoka: Seiseki‐Sakuragaoka

Hotel Vista Sendai: Sendai: ChihayaRenaissance 21 Chihaya: Kamiyacho: Muza2Overview of the Financial Results

Overview of the Financial Results

Overview of Financial Results (1)Operating revenue was 1,343 million yen, up 1.0% from the latest forecast; profit was 671 million yen, up 2.2%.
Unit: million yen

Forecast
for the 4th FP

Operatingrevenue
Operatingexpenses
OperatingincomeOrdinary income

Net income
Distribution perunit (yen)

1,329
614
715
658
657
2,943

Actual results
for the 4th FP

1,343
619
724
672
671
3,007

Difference

Main factors for difference

13

Convertto DPU

Operating revenue
Increase in rent revenue+3.1 million yen+14 yenIncrease in lump sum
income such as key
money+6.6 million yen+29 yen

Unrealized budgeted
stress+8 million yen+35 yen

14

Increase in repair cost

‐19.3 million yen‐86 yen

Unrealized budgetedleasing costs+6.7 million yen+30 yen

14

Reduction in SG&A (sales,
general andadministrative) expenses+1.5million yen+6 yen+4.6million yen+20yen4864Operating expenses

Non‐operating
income and expenses
Occurrence of insurance
payment received* Days of 4th FP: 182 days

4Overview of the Financial Results

Overview of Financial Results (2) and Occupancy rates by Asset TypePortfolio

Financial Status

Asset size

12 properties
33,040 million yen

Interest‐bearing liabilities
at the end of period

Estimated value at theend of period

43,465 million yen

LTV based on total assets

9,988 million yen

Net asset per unit

101,100 yen

NAV per unit

145,812 yen

Unrealized gain

(Unrealized gain ratio 29.8%)

NOI yield*

5.9%

11,680 million yen
31.9%(Appraisal LTV 25.1%)

Occupancy Rates by Asset TypeAs of the end of
1st FP

As of the end of
2nd FP

As of the end of
3rd FP

As of the end of
4th FP

VS. previous FP

Entire portfolio

99.0%

98.9%

98.8%

98.7%

-0.1%

Office

99.3%

98.8%

99.5%

100.0%+0.5%

Retail100.0%

100.0%

100.0%

100.0%-

Hotel

100.0%

100.0%

100.0%

100.0%-

Others (Residential)

94.3%

95.1%

92.7%

91.0%

-1.7%

(exc. retail spaces and obligatedresidences)

99.2%* NOI yield: annualized actual NOI for the 4th FP ÷ total acquisition price

99.1%

99.5%

100.0%+0.5%

5Overview of the Financial Results

Results of Distributions per Unit
Continuing steady growth since IPO. The result for the 4th FP was 3,007 yen per unit, achieved an increase of 64 yenfrom the latest forecast.
■Initial disclosure(yen)■Latest disclosure■Results

4,000

3,596

+106 yen (+3.7%) from 2nd FP‐end forecast+64 yen (+2.2%) from 3rd FP‐end forecast+88 yen (+2.9%) from
3rd FP‐end forecast

3,500

3,150
3,052

3,000

2,901

2,943

3,007

3,062

2,966

2,610

2,500

2,000

0
1st FP

NAV per unit 138,263 yen

2nd FP

3rd FP

4th FP

140,479 yen

145,261 yen

145,812 yen

5th FP (forecast)

6th FP (forecast)6

Overview of the Financial Results

Financial Status
XYMAX REIT establishes a financial base that puts emphasis on stability and soundness and provides flexibility infinancing.

┃Borrowing status┃
Mizuho Bank

23.2%

SMBC

18.4%

MUFG Bank

13.3%

Nishi‐Nippon CB

8.6%

Fukuoka Bank

8.6%

Resona Bank

7.6%

Shinsei Bank

5.0%

Borrowing amount

Hiroshima Bank

4.3%

11.68 billion yen

Aozora Bank

2.6%

Chiba Bank

2.6%

Higo Bank

2.6%

Fukoku‐life

2.6%

Hokkaido Bank

0.9%

 Constructing a wide range of and stable lender formation mainly with mega banks andlocal banks that have a financial and business relationship with sponsors

Balance ofinterest‐bearing debts

Average remaining
period11.68 billion yen

Average interest rate

2 years 4 months

Fixed interest rate
ratio

86.6%

Number of financial
institutions

0.585%

13 companies

Long‐term loanratio

LTV based on
total assets

93.0%

31.9%

┃ Maturity dates of interest‐bearing debts┃(million yen)

Disperse the repayment period by refinancing

5,000┃ Borrowing capacity by LTV level┃

4,000
3,350

3,150

3,000

3,088
2,796

2,646

2,000

1,000

0
4期末
5期末
End
of 4th FP
Endof 5th FP(FP ending(FP ending
2020/2⽉期
2020/8⽉期
February 2020) August 2020)

6期末
End
of 6th FP(FP ending
2021/2⽉期
February 2021)

9期末
End7期末of 7th FP
End 8期末
of 8th FP
End of
9th FP
End10期末
of 10th FP(FP ending(FP ending(FP ending(FP ending
2021/8⽉期
2022/2⽉期
2022/8⽉期
2023/2⽉期
August 2021) February 2022) August 2022)
February 2023)

11期末
End
of 11th FP(FP ending
2023/8⽉期
August 2023)

12期末
End
of 12th FP(FP ending
2024/2⽉期
February 2024)

LTV levelvs. total assets

Possible loan
amountAppraisal LTV

35.0%

Approx.
1.7 billion yen

27.8%

40.0%

Approx.
4.9 billion yen

32.3%

45.0%

Approx.
8.6 billion yen

36.9%
7

〜Memo〜8Management Highlights for the 4th FP

Management Highlights for the 4th FP

Actual results of rent increase through tenant replacements
We have achieved a 2,672,000 yen increase in monthly revenue through 4th FP tenant replacements.

┃Status of tenant replacement┃ Seven office properties (exc. obligated residences) and Muza(tsubo)Rent increasedRent decreased

No change

Percentage of change

(%)

500

400

50

350.97 tsubo

348.38 tsubo

300

Iwamotocho:
98.98 tsubo (1 space)% of increase *3

approx.

30

248.49 tsubo

200

40

4th FP replacementswith higher rent (4 spaces)

Muza: 219.55 tsubo(3 spaces due to subdividing)% of increase *3
20

169.50 tsubo+18%

approx.

+60%

Rent
increase

Rent
increase

Rent
increase

218.64144.66318.53

tsubo

tsubo

2nd FP

3rd FP

4th FP

1st FP

2nd FP

3rd FP

4th FP

Accumulated trackrecord of 4 FPs

Total rent increased/month30,925 yen(+5.4%)

561,548 yen(+15.2%)

266,055 yen(+12.4%)

2,672,905 yen(+45.1%)

3,531,433 yen(+28.6%)% of replacementswith higher rent *1

17.6%

88.0%

85.3%

91.4%

66.6%

Surrender rate *2

4.2%

3.5%

2.0%

4.3%

—

100

Rent
increased

61.85

0
1st FP

tsubo

tsubo

10

0

*1 % of replacements with higher rent: area with higher rent replacement of seven office properties (exc. obligated residences) and Muza ÷ total replaced area of each property*2 Surrender rate: surrendered area of seven office properties (exc. obligated residences) and Muza for each FP ÷ total leasable area of each property.

*3 % of increase: (monthly unit rent that includes common area maintenance revenue after tenant replacement or after renewal – monthly unit rent that includes common area maintenance revenue before

tenant replacement or before renewal) ÷ monthly unit rent that includes common area maintenance revenue before tenant replacement or before renewal

10Management Highlights for the 4th FP

Actual results of rent increase through contract renewals
We have achieved an approximately 633,000 yen increase in monthly revenue through 4th FP contract renewal upward
rent revisions.

┃Status of contract renewal┃ Seven office properties (exc. obligated residences) and Muza
Rent increased

No change(tsubo)Percentage of change(%)

1,945.54 tsubo

2,000

15

1,277.48 tsubo(19 spaces)

1,600

12

1,271.69 tsubo
9

1,200
800

716.54 tsubo

400

747.506

1,408.96
tsubo

tsubo

0

Renewals with higher rent: 4 spaces

Rent
increased
Rent increased

4th FP renewals (19 spaces);
3Space without rent gap: 1
Spaces with rent gap *2:

3

Rent increased

468.62tsubo(4 spaces)0

1st FP

2nd FP

3rd FP

4th FP

1st FP

2nd FP

3rd FP

4th FP

Accumulated trackrecord of 4 FPs

Total rent
increased/month

0 yen
(0%)

909,380 yen(+8.5%)

2,255,763 yen(+9.8%)

633,769 yen(+11.0%)3,798,912 yen(+9.7%)% of renewals withhigher rent *1

0%

58.8%

72.4%

36.7%

50.4%

Rent increase through 4th FP
replacement/contract renewal

Approx.

3,300,000
yen/month

Cumulative rent increase throughreplacement/contract renewal
until 4th FP

Approx.

7,330,000 yen/month

14.2% increase from beginning of 1st FP*1 % of renewals with higher rent: renewed area with higher rent of seven office properties (exc. obligated residences) and Muza÷renewed area of each property.

*2 Spaces with rent gap: The spaces whose rent unit price adopted in ongoing appraisals at the point of the end of 3rd FP is more than 10% higher than the contract rent with the current tenant

11

Management Highlights for the 4th FP

Actual Results of the Hotel
We achieved a higher occupancy rate than the previous fiscal period and are receiving stable variable rent.

┃Occupancy rate, ADR, and RevPAR┃
4th FP (September 1, 2019 – February 29, 2020)
Occupancy rate

88.0%
(%)

Y‐o‐Y

yen

(‐4.4%)

8,427 ‐391yen

Y‐o‐Y

+2.3%

ADR2018100

ADR

ADR2019

Occupancy rate 2018

 Adopted variable rent using
moving average

RevPARY‐o‐Yyen(‐2.1%)

Ensured stable rent revenue by
adopting variable rent thatuses moving averages of thelatest 12 months GOP, which
are little affected by seasonalchanges

7,453 ‐159yen(yen)

Occupancy rate 201911,00080

10,000

60

9,000

40

8,000

20

7,000
6,000

0
Mar.

Apr.

May

June

Jul.

Aug.

Sept.

Ratio of foreign guests at Hotel Vista Sendai

30

25.8

16.4%

Feb.

10.0%

2016

2017

2018

2019

56,487

92,64599,362

104,993

11.2%

Total flights(per week)

Privatization——

Apr. 2018

To Izumo line

7 flights per week (commissioned)

7

ThailandJul. 2019

To Narita line

Increased 7 flights per week21

Hong Kong

Aug. 2019

To Nagoya line

14 flights per week (commissioned)

56

Oct. 2019

To Bangkok line

3 flights per week (commissioned)3

Nov. 2019

To Dalian – Beijing line
To Shanghai

Increased 3 flights per week

5

U.S.
Others0

Numbers of flights (round trip)

China

54.0%

10.8
3.8

Total numbersof lodgers

Jan.

Jul. 2016
Taiwan

4.3%
10

Dec.

% of upper 5 countries in 2019

4.1%

18.5

20

Nov.

┃Topics of Sendai Airport┃┃Overseas lodgers ratio┃
(%)

Oct.

12

Earnings Forecasts andthe Growth Strategy

Earnings Forecasts and the Growth Strategy

Forecast for the 5th FP ending August 2020 and 6th FP ending February 2021
Unit: million yen

Operatingrevenue
Operatingexpenses
OperatingincomeActual results
for the 4th FP(A)

Forecast for
the 5th FP(B)

Difference(B)‐(A)

Forecast forthe 6th FP

1,343

1,368

25

1,323

619
724

615
752

-3
28

599
723

Ordinary
income

672

704

31

663

Net income

671

703

31

662

Distribution per unit
(yen)

3,007

Days

182

3,150
184

143
2

2,966
181

Main factors for differences in the
result for the 4th FP and forecasts
for the 5th FP

Convertto DPU

Operating revenue
Increases in rent revenueof seven office properties
and Muza+31.5 million
yen+141 yen

Decreases of variable rentof the hotel‐13.0 million
yen‐58 yenConservatively budgetedlump sum revenues suchas key money‐5.1 million yen‐23 yen+31.4 million yen+140 yen

Operating expenses
Decreases in repair
expensesNon‐operating revenues and expenses
Not budgeted in 5th
FP: insurance
payment received
Not budgeted in 5th
FP: expenses related
to finance‐4.6 million yen‐20 yen+11.8 million yen+53 yen14

Earnings Forecasts and the Growth Strategy

Management Strategy going forward
XYMAX REIT will maintain a management approach that leverages its 3 strengths, and pursue revenue expansion.

┃Management that leverages our 3 strengths┃

Assessment

Management

Sourcing

for building portfolios

for internal growthfor external growth┃Management policies┃
Internal
growth• Achieve higher revenue by eliminating rent gap in 6 office* properties located in Tokyo 23 wards• Consider cutting expenses to the extent that it does not damage tenant satisfaction• Maintain asset value through executing appropriate repairs and CAPEX

External
growth• Accurately discern the potential of properties with scope for internal growth, and build pipeline• Maintain unique sourcing, leveraging sponsor group customer base
• Adhere to a certain level of yields even under challenging acquisition environment

Financial
policy• Strategic use of remaining borrowing capability, against the backdrop of a low LTV level (31.9%)• Cooperate with sponsor groups and deepen lender relationships* Collective term for Nishi‐Shimbashi, Iwamotocho, Shinjuku‐Gyoen, Kamiyacho, Higashi‐Azabu and Higashi‐Ueno

15

Earnings Forecasts and the Growth Strategy

Internal Growth Strategy(1) —Management Policy for Each PropertiesXYMAX REIT aims to improve the profitability of the portfolio by growing and stabilizing revenue, monitoring the impactof the new coronavirus infection, and by assessing the characteristics and advantages of each property.

Growth of
RevenueNOIClassification of
Features / Potentials
Composition
profitability
Nishi‐
OF‐01
Properties in good locations close to stations
Shimbashi
OF‐02
Small to medium‐sized buildings that can provide rent unit
Iwamotocho
prices and areas that match the needs of SMEs
OF‐03
Shinjuku‐
39%
Pursuing aggressive revenue growth when the market is
Gyoen
OF‐04
rising is possible, while also obtaining stable revenues, asKamiyacho
the new supply of small to medium‐sized buildings is
OF‐05
limitedHigashi‐Azabu
OF‐06
Higashi‐Ueno

For growth, make every effort to achieve
maximum rents, as a profit driver, while
keeping our eyes on market trends
Monitor trends for tenants and competitors
to maximize value by tenant replacements
and renewals

Aim to maintain and improve revenue by judging
whether to renew a contract or invite new tenantsby analyzing the characteristics of tenants andspaces

RT‐01

Muza

12%

Located in the West Exit of Kawasaki Station area, where thenumber of work, home and leisure facilities is growing
Stable and increased revenues can be expected from atenant configuration and development of the area

OT‐01

Chihaya7%

Possesses stable housing needs due to good access to
Hakata and excellent living environment

OF‐07

Hachioji

10%

Possesses stable rental needs due to top‐class building
grades and variety of unit size

14%

Located in the Sendai Station area, a transportation hub,capable of capturing stable demand for domestic guests
The number of foreign lodgers is also on an increasing trend

We will pay close attention especially to theimpact of the new coronavirus infection for thetime being, while maintaining stable revenues
through fixed rents.

18%(Kawasaki Miyuki) Appropriate rent burden ratio level,
as well as a stable trade region(Seiseki‐Sakuragaoka) Connected to a main station on
the Keio Line with a strong ability to attract customers

Maintain stable revenue as the base of entire
portfolio by receiving fixed rents fromcredible tenants

HT‐01

RT‐02

Stability of
Revenue

Basic management policy

RT‐03

Sendai
Kawasaki
MiyukiSeiseki‐
Sakuragaoka

Aim to realize opportunities to improve
revenue discovered through expertise andknow‐how of management, while maintaining
stable revenue as a principle

16

〜Memo〜17Earnings Forecasts and the Growth Strategy

Internal Growth Strategy (2) — Future Scope
The average rent unit price for the 6 office properties, which are internal growth drivers, is rising steadily.

┃Trend in rent gap for the 6 office properties *1┃ (exc. retail spaces and obligated residences)
1. Assumed new unit rent: Assumed unit rent for new lease contracts at change of tenant, based on XYMAX’s
own market analysis, etc.
2. Appraisal unit rent: Rent unit price adopted in ongoing regular appraisals
As of the end of 1st FP

As of the end of 2nd FP

As of the end of 3rd FP

As of the end of 4th FP

16,277 yen

16,524 yen

17,059 yen

17,246 yenvs. previous FP‐+247 yen+535 yen+187 yen(vs. previous FP ratio)‐(+1.5%)(+3.2%)(+1.1%)

Assumed new unit rent‐‐

19,732 yen

19,810 yen

vs. previous FP

‐

‐

‐

+78 yen(% change vs. previous FP)

‐

‐

‐

(+0.4%)

Rent gap vs. Assumed new unit
rent

‐

‐

15.7%

14.9%

(% change vs. previous FP)

‐

‐

‐

‐0.8%

Appraisal unit rent

17,526 yen

17,526 yen

17,831 yen

17,948 yenvs. previous FP

‐

0 yen

+305 yen+117 yen(% change vs. previous FP)

‐

‐

‐

(+0.7%)

7.7%

6.1%

4.5%

4.1%

‐

‐1.6%

‐1.6%

‐0.4%

Contracted unit rent

Rent gap vs. Appraisal unit rent
% change vs. previous FP*1 Collective term for Nishi‐Shimbashi, Iwamotocho, Shinjuku‐Gyoen, Kamiyacho, Higashi‐Azabu and Higashi‐Ueno.
*2 The various unit rents: using a monthly unit rent that includes common area maintenance revenue, to which is applied a weighted average in proportion to the leased floor area18

Earnings Forecasts and the Growth Strategy

Internal Growth Strategy(3) — Future Scope
We will make an effort to realize the internal growth potential after 5th FP through eliminate the rent gap.

┃Floor area scheduled for contract renewal at the 6 office properties┃ (exc. retail spaces and obligated residences)
Total leasable area at the 6 office properties: 4,485.88 tsubo(tsubo)1,486.29(12 spaces)

1,600

1,400

172.24(1 space)291.371,200

1,033.60(13 spaces)

1,000

800

600

1,356.46(14 spaces)

172.24(1 space)■ Spaces without rent gap vs. both 1 and 2,below■ 1. Spaces have rent gap only vs. Assumed new unit rent
■ 2. Spaces have rent gap vs. Appraisal unit rent

1,314.05

1,065.75(11 spaces)(7 spaces)(4 spaces)

268.08(3 spaces)

Elimination of rent gap
Already renewed with higher rent

1,065.09(10 spaces)

425.06(5 spaces)

765.52400(10 spaces)
200425.06248.30(5 spaces)(4 spaces)0

5th FP(as of the end of 3rd FP)

6th FP

7th FP

8th FP(as of the end of 4th FP)

19

Earnings Forecasts and the Growth Strategy

Internal Growth for the 5th FP (1)Achieved improvement of profitability towards the 5th FP, through the maximum use of management strength of the sponsor group.

Tenant Replacement

Tenant Replacement

XYMAX Kamiyacho Building

XYMAX Iwamotocho Building

Successful replacement at high unit
rent by making two adjoining spaces
available at the same time andconsolidating them

Successful replacement at high unit
rent by catching the special needs using
the wide range of network of thesponsor group Through meticulous communication with tenants tocatch potential availability of adjacent space soon to
be vacated Successfully catching special needs that are more rent‐bearing than office use by gathering information using
the wide range of network of the sponsor groups Analyzing the market needs led to the result that thecontract at higher unit rent was expected after
consolidating the two adjoining spaces.
 Successfully vacated the two adjoining spaces at thesame time by offering early termination of contracts

Rate of rent increase of this replacement
approx. 25.0%**

 Swift coordinating of the schedule according to thepotential tenants' needs for earlier occupation
 Successfully make a good deal by satisfy therequirements of potential tenants

Rate of rent increase of this replacement*

approx. 18.1% ** Rate of rent increase: (monthly unit rent that includes common area maintenance revenue after tenant replacement or after renewal – monthly unit rent that includes common area

maintenance revenue before tenant replacement or before renewal)/monthly unit rent that includes common area maintenance revenue before tenant replacement or before
renewal20

Earnings Forecasts and the Growth Strategy

Internal Growth for the 5th FP (2)Use of Surplus Space

Contract Renewal
XYMAX Shinjuku‐Gyoen Building

Installed rooftop antenna station

Realized a rent increase of a major tenantby building strong relationships withtenants through long‐term management

Nishi‐Shimbashi and Higashi‐Azabu:
 Installed rooftop antenna stations for mobile phones
at two office properties Realized increase in continuous property revenue
by this installation fees The sponsor group has built up good relationships withtenants through 12 years of management
 Responding sincerely to the various requirements ofthe tenants Successfully negotiated a rent increase thanks to hightenant satisfaction

Rate 増額更新による賃料上昇
of rent increase by this renewal
%* *
約16.7
approx.
16.7%

Installed new motorcycle and bicycle parking lot
Higashi‐Azabu: This is also a good example of increase incontinuous property revenue by installation of new
motorcycle and bicycle parking lot and leased in bulk
to a certain management company
 Contributes to maintaining the exterior appearanceof the property, helping to prevent bicycles frombeing abandoned

Increased rental revenue of approx.

220,000 yen per month* Rate of rent increase: (monthly unit rent that includes common area maintenance revenue after tenant replacement or after renewal – monthly unit rent that includes common area

maintenance revenue before tenant replacement or before renewal)/monthly unit rent that includes common area maintenance revenue before tenant replacement or before
renewal21

Earnings Forecasts and the Growth Strategy

External Growth (1) – Key Points by Asset Type –XYMAX REIT believes that quantity and quality of tenant demand are key factors to assess the profitability of real estate.
XYMAX REIT aims for portfolio growth by comprehensively assessing the factors below by asset type.

OfficeRetailHotel

Focus on properties with strong
attractiveness to tenants

Focus on stability of tenant
rent or property price

Focus on hotels specializing in“lodging” near transportation hubs✔

Properties located in the 8 central✔

Properties where revenue offacilities is available for analysis✔

Hotels specialized in stay whose
revenue trends can be analyzed based on
the operational know‐how of the sponsor✔

Properties with a unit rent of 10,000
yen to 20,000 yen✔

Properties where rent burden on
tenants is available for analysis✔

Properties located in areas offering
excellent access to transportation
hubs✔

Properties located within an approximate
5‐minute walk from the nearest station✔

Properties where sales price islower than the market priceof overseas visitors is✔ number
expected to increase

wards of Tokyo, Central
Nagoya, Central Osaka andCentral Fukuoka

Properties located in areas where the

80% or more of the portfolio consists of office, retail, and hotel properties
22

Earnings Forecasts and the Growth Strategy

External Growth (2) – Status of acquisition studies–
We are considering the acquisition of properties by firmly maintaining acquisition policy by asset type.
We will continue our acquisition activities to determine the fundamental value of the target properties, with an awareness of the balance
between distribution growth and financial soundness.

┃ Acquisition policy ┃┃Borrowing capacity by LTV level┃

 Maintain a price lines firmly with an awareness of the balance
between distribution growth and financial soundness
 Maximize use of the XYMAX Group strengths of assessment andsourcing Assume the investment that is made after assessing the inherent
profitability of the property
 Flexible acquisition through borrowings can also be selected,
depends on investment unit price trends, due to our low LTV level

Current LTV level: 31.9%
LTV levelvs. total assets

Possible loan
amountAppraisal LTV

35.0%

Approx.
1.7 billion yen

27.8%

40.0%

Approx.
4.9 billion yen

32.3%

45.0%

Approx.
8.6 billion yen

36.9%┃Properties under consideration┃
Location

Asset type

SourceFocused point

5 central wards of Tokyo

OfficeProperty managementbusiness relation

With a large rent gap in this market, significant internal growth is able toexpect at the time of lease contract renewal and tenant replacement

Ordinance city

Retail (Supermarket)

CRE client

Stable rent can be obtained due to the expected stability of tenant sales,
and assumed relatively low rent burdenCore regional cityHotel(specialized in stay)Private fund managed by
the sponsor group

Located in a regional economic hub and also with a high level of
tourism resources, there is solid demand for accommodation

CRE client

A stable long‐term contract has been concluded with a highly credit‐
worthy tenant, for which a certain yield is expected

23 wards of Tokyo(scheduled to complete at
November 2020)

Others(Corporate dormitory)(100% leased to a single tenant)23

Earnings Forecasts and the Growth Strategy

Growth image in DPU
DPU has continued to trend upward steadily since the IPO, and our aim is to raise this further going forward.

┃Stabilized DPU┃ Trend in DPU since IPO, excluding special factors *Annual DPU

5,952 yen+107 yen (+1.8%)

Annual DPU

6,059 yen

+57 yen (+0.9%)

Annual DPU

3,300 yen

6,116 yen

3,150 yen
3,050 yen

3,052 yen
3,007 yen
2,966 yen

2,902 yen

1st FP

2nd FP

3rd FP

4th FP

5th FP (forecast)

Decrease rent due to occurrence ofdowntime in re‐tenant of large
section of Muza, etc.

6th FP (forecast)

Near future

Expect a decrease invariable rents in
Sendai, etc.

* Calculated with stabilized DPU that takes into account excluding special factors such as the cost of IPO in the 1st and 2nd FP and taxes and public dues.

24

ESG

ESG

ESG Initiatives (1) Environment
Acquisition of Environmental Certification
Acquired environmental certification for the following properties. XYMAX REIT will continue to promote environmental and energy‐saving measures of owned properties
and improve efficiency of energy use.

┃ CASBEE－Real estate┃

XYMAX Higashi‐
Ueno Building

Newlyacquisitionof 4th FP┃ BELS ┃Hotel Vista
Sendai

Assessment Rank

Assessment Rank

Rank A★★★

(Very good)

XYMAX
Iwamotocho
Building

XYMAX
Shinjuku‐Gyoen
Building

XYMAX
Hachioji
Building

XYMAX
Higashi‐Azabu
Building

Assessment Rank

Assessment Rank

Assessment Rank

Assessment Rank

Rank A

Rank A

Rank A

Rank A(Very good)(Very good)(Very good)(Very good)┃Acquisition status up to 4th FP┃
Number of Acquisition ofEnvironmental Certification

6

Acquisition rate(based on total floor area)

39.3%┃ Improvement of environmental performance through building/facility renovation ┃ Implementing renovation work for air
conditioning in tenant exclusive area, we areworking towards saving energy and reducing
environmental burden, in addition to enhancing
tenant satisfaction.

 Electricity consumption at Seiseki Sakuragaoka was reduced
by 8.6% compared to the previous year. For thisachievement, the Vita Commune Management Association
was awarded the Chairman's Award of the Kanto District
Electricity Rationalization Committee in 2019.

Renewal of air conditioning system at Higashi‐Ueno┃ Promotion of paperless asset management┃ Working toward to realize paperless workflow at Asset Management Company and promoting resource saving• Introduction of electronic approval system at Asset Management Company• Creating paperless instructions circulation system between the trustee the asset management property

26

ESG

ESG Initiatives (2) Social (1)Initiatives for Tenants and Local Communities┃ Implementing Counter‐NBC Terrorism Training┃ Began drills in November 2019 to deal with special circumstances caused by nuclear,biological, and chemical substance disasters at Muza
 Full‐fledged training under the initiative of local police and firefighters, with participationof not only Muza tenants but also many local residents
 Regular disaster prevention drills (earthquake evacuation drills) are conducted at the sametime, with approximately 600 tenants participating┃ Introduction of emergency storage boxes in elevators┃┃ Introduction of Disaster‐Relief Vending Machines┃ Emergency storage boxes have been installed inelevators in six properties as confinement measureswith concern for earthquakes.

 Introduced disaster‐relief vending
machines to provide drinks for free (byremote control) during emergencies

Installed properties:
Nishi‐Shimbashi, Iwamotocho, Shinjuku‐Gyoen,
Kamiyacho, Higashi‐Azabu, Higashi‐Ueno and HachiojiInstalled properties:
Higashi‐Ueno , Higashi‐Azabu andHachioji

Initiatives for a Sustainable Society┃Signing of Principles for Financial Action for the 21st Century by Ministry of theEnvironment┃
 XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation, Asset Management Company of XYMAX REIT,
has endorsed the ideas of the Principles and became a signatory on December 27, 2013.

27

ESG

ESG Initiatives (3) Social (2)Initiatives for Employees of the Asset Management Company┃ Qualification support system ┃┃Respect for diversity┃

 Asset Management Company introduced a system to provide incentives for employees
who acquire certain qualifications.
 Status of qualification (incl. those unregistered) by employees of Asset Management
Company (as of April 1, 2020)

 More than half of our executives and employees are female, and female
employees are succeeding in a wide range of fields, regardless of being in
the front, middle, or back office.

• Licensed Real Estate Broker• ARES Certified Master• Certified Building Administrator

27
77• Real Estate Appraiser• Real Estate Consulting Master┃Introduced flextime system┃ Asset Management Company introduced a flextime system to support a more flexible
workstyle in line with the degree of activity.

Maternity or
child care leave

Male

Female(Percentage
of female)

Total

April 2018

16

21

56.8%

37

0

April 2019

15

23

60.5%

38

1

April 2020

13

23

63.9%

36

1

ESG initiatives at Sponsor GroupIR Activities at 4th FP

 Nurturing real estate business personnel through Karakusa Fudosanjuku(real estate business seminar ) at Sponsor GroupIR activities for individuals• Sept. 2019: J‐REIT Lady’s Meeting (Tokyo)• Nov. 2019: J‐REIT Fair 2019 (Tokyo)• Dec. 2019: Nikkei J‐REIT Infrastructure Fund Forum (Tokyo)• Jan. 2020: SMBC Nikko J‐REIT Seminar (Fukuoka)• Feb. 2020: SMBC Nikko J‐REIT Seminar (Sapporo)
Nomura Securities Nagoya Branch Seminar (Nagoya)

Number of executives and employees(excluding dispatched employees)

1
2

J‐REIT Fair 2019

IR activities for institutional investors• Domestic: Visited 19 companies in urban areas and 13 companies in local areas• Overseas: Visited 9 companies in Hong Kong and Singapore and other locations• Mizuho Investment Conference Tokyo (Sponsored by Mizuho Securities)• Property Conference Tokyo 2019 (Sponsored by SMBC Nikko)• Property Tour at Muza (for institutional investors)

 Holding lectures at Real Estate Sustainability & Energy‐Efficiency Diffusion
Review Committee, Ministry of Land, Infrastructure, Transport and Tourism
 Holding lectures at Land Economy and Construction Industry Bureau,
Ministry of Land, Infrastructure, Transport and Tourism
 Contributing to ARES Real Estate Securitization Journal
 Serving as lecturer of ARES Real Estate Securitization Master training
course Promoting of teleworking
 Granting of scholarships to Yangon Technological University students
 Neighborhood exchange event held at Karaksa Spring Hotel Kansai Air
Gate.

28

ESG

ESG Initiatives (4) GovernanceDecision‐making Flow at Asset Management Company
 XYMAX REIT adopts a decision‐making flow via committees in which external committee members participate in matters that significantly impact unitholders’interests with the intention of protecting unitholders’ interests.
 At the REIT Compliance Committee and REIT Investment Committee, the attendance and approval of compliance officers and external committee members are
requirements for resolutions. Accordingly, a governance system has been established to prevent arbitrary management by the Asset Management Company.

Examination by complianceofficer

Proposal by division(s) inchargeUnapproved

Acquisition and transfer of assets
Entrustment of management tointerested parties, etc.

Rejected

Rejected

Deliberation and resolution by REIT
Compliance Committee *Expenditure exceeding a certain amount, etc.

Deliberation and resolution
by REIT Investment
Committee *Rejected

Deliberation andresolution by Board of
Directors’ Meeting

Relevant
approval
procedures

Matters other than the above, etc.

* Attendance and approval by external committee members and compliance officer are imperative for approval

Compliance Education at Asset Management Company
 Conducting a study session on compliance hosted by the complianceofficer once a quarter or more Intending to maintain and improve the knowledge on compliance aswell as fostering awareness on compliance of the employees of AssetManagement Company

Investment Ratio in XYMAX REIT by Sponsor
 Through the holding of XYMAX REIT’s investment units by the sponsor,
improvement in unitholder value is realized by matching the interests ofinvestors.
• Holding ratio of XYMAX REIT ’s investment units by sponsor

5.6 %(as of February 29, 2020)29

〜Memo〜30

APPENDIXAPPENDIX

Overview of XYMAX Group
Company
nameOfficeRetail/Store

LogisticsHotel

XYMAX Corporation (unlisted)

Establish
ment

March 1, 1990
* Spin‐off from Recruit Co., Ltd. through employee

participatory MBO in 2000

Locationofheadquarters

1‐1‐1 Akasaka, Minato‐ku, Tokyo

Capital2,892.865 million yen(as of March 31, 2020)

Sales

88.488 billion yen(actual results for the fiscal year ended
March 2019)

Real estate consulting andmanagement services

Real estate consulting

Major
shareholders

XYMAX Shareholding Association, directors &employees, clients and financial institutions
Total: 315 (as of March 31, 2020)

Numberofemployees

5,322 (as of April 1, 2019)* Consolidated figures of the Group

Other specialized
services

Representative Director, Chairman & CEO:
Masafumi Shimada
Representative Director Kenji Yoshimoto

Asset Management

XYMAX
XYMAX TRUSTXYMAX REAL ESTATE INVESTMENT ADVISORS/MAX‐REALTY

Asset management
Asset strategy, etc.

Valormax
Y.Estate

Real estate
management
Property management
Building maintenanceIntegrated
management of
store facilities

SG Asset Max

Hokkaido

XYMAX HOKKAIDO

East JapanXYMAX ALPHA

KansaiXYMAX KANSAI

KyushuXYMAX KYUSHU

Abilitas Hospitality

Facility management* Consolidated figures of the Group

RepresentativeCRE strategy, effective
utilization,
development/design
Consulting and planning on
inheritance, fund procurement,
etc.

Leasing brokerage

Market survey/analysis
Research/planning on
management and repair

Hotel business

Real estate appraisal
Real estate assessment/survey

XYMAX INFONISTAXYMAX REAL ESTATE
INSTITUTE

KARAKSA HOTELSXYMAX ASSETCONSULTING

Cleaning

Security

Satellite office

Risk management

XYMAX SALAMAX SECURITY SERVICEXYMAX ZXY Department

Safety Organization for
Urban Renewal

Realize growth of XYMAX REIT by drawing on all of
the XYMAX Groupʼs expertise and workforce

32

APPENDIX

Corporate History
Started Office Property Management Business
1982︓

1996︓

2000︓

Started the services such planning, development,
management for the Recruit Group’s own officebuilding investment and utilization after thecreation of the “Buildings‐related Division” of
Recruit Group.

Made a Full‐scale Entry to Retail Property Management BusinessStarted to provide the property management
service to corporate and private owners otherthan Recruit Group.

2001︓

Establishment of Retail Property Management Business Division of XYMAX

MBO from Recruit Group which gave birth to
XYMAX Group

Entry into Hotel‐related Business
2012︓

Acquired 100% stake of Abilitas Hospitality Co., Ltd.

Started Asset Management Business
2007︓

2000

2001

Started to provide hybrid
service of real estate andfinance by setting up MAX‐REALTY, a joint venture with
Sumitomo Mitsui Banking
Corporation.

2002

2003

2004

Made an entry into thebuilding management (BM)service by setting up XACUTechno Service Corporation, ajoint venture with Haseko
Anesis2005

Set up XYMAX Real Estate Investment Advisors Corporation

2006

2007

Enhanced the BM business byacquiring 100% stake of Asahi
Building Management
Services, Inc., a subsidiary of
the Daiei Inc.

2008

2009

2010

Entered into a business tie‐up
with SG Holdings Co., Ltd., aholding company of Sagawa
Express Co., Ltd.

2011

2012

2013

Started the private REIT
business through SG Asset
Max Co., Ltd., a joint venturewith SG Realty Co., LTD.

2014

2015

2016

Opened karaksa hotel Osaka
Shinsaibashi I and karaksa
hotel Kyoto I.

2017

2018

Made an entry into
the J‐REIT business

33

APPENDIX

Fertile Management Base of the XYMAX GroupThe XYMAX Group has been ranked as No. 1 domestic service provider in the PM business in terms of contracting recordof real estate management projects for six years in a row since 2010*.
■ Human resources ︓1,967 people engaged in real estate management, 86 in leasing, and 86 in CRE related business(as of March 1, 2020)■ Relationship with real estate owners ︓ approximately 300 companies■ Track record in property sales and brokerage: ︓306 buildings, approximately 530 billion yen(accumulated total from April 1, 2010 to March 31, 2020)┃ Real estate management record
Actual number ofcontracts

906 buildings(As of the end of January 2020)

Approx.

28┃

Hokkaido ∙Tohoku Region

Gross floor area
Approx. 4.1 million tsubo（Approx. 14.0 million m2)

900

Central ∙ Koushin'etsu
Region┃ Facility management record (As of the end of December 2019) ┃Actual number ofcontracts

Hokkaido Region

Number of customers

12,300 stores

140 companies

Tohoku Region
8

1,900

Central ∙Kanto Region
Chugoku ∙Koushin'etsu Region
5,000
Kanto Region
Shikoku Region
Kansai Region 63
523
Chugoku ∙700
Shikoku Region 205
13

Kyushu ∙Kyushu Region
Okinawa Region
56

Kansai Region

Okinawa Region

2,600

10

1,200

* According to each November issue of the monthly magazine Property Management from 2010 to 2015, the XYMAX Group was ranked No. 1 in terms of floor area under management for six

consecutive years since 2010.

34

Cooperation with ITBM Center

Statutory inspections, confirmation of items pointed
out/Proposing correction

Asset Value
Maintenance

Building maintenance and management(cleaning/security/maintenance)

Optimization of management specifications

Confirming of completion of repair
work/Arranging payments

Accounting
ReportArranging contractors/Obtaining
estimates/Assessing amounts

Construction work data

Checking /Reporting on status of items
requiring repair

Leasing Related
Operations

Repair planning

Report/Proposal

Preparation and submission of annual budgets

Owner

Preparation of monthly reports

XYMAX Group

Issuing invoices/Confirmation of
payment/Payment of expenses

Arrangement of move‐in

Tenancy screening/Negotiation for conclusion

TenantManagement

Agency’s relation

Direct leasing

Instruct/Judge

Marketing/Sales strategy planning

Checking completion of agreements on
termination/Restoration

Rent negotiations (raising/lowering)

Handling delinquent tenants

Preparation of detailed building
regulations/Guidance for tenants

Responding to tenants (responses tocomplaints, etc.)

APPENDIX

Property Management
The XYMAX Group provides consistent real estate management and operation services, ranging from Property Management(acting for owners) to Building Maintenance operations.
In addition, the XYMAX Group owns all kind of data on real estate management through a track record accumulated over theyears.
┃ Areas of Real Estate Management Operations┃┃ Data Related to Real Estate Management ┃Contracted rent data

124,331cases
buildings(covering past 24.5 years)

Asking rent data

24,111 cases
buildings(covering past 9 years)

39,14653,971(during the period between April 1, 2000 and February 29, 2020)

146,021 cases

Building
Management

35

APPENDIXITBM Center
The XYMAX Group has built a support system that uses IT to achieve a high‐quolity building maintenance.

┃ＩＴＢＭ ＣＥＮＴＥＲ┃XYMAX ALPHA introduces information communication technology in building maintenance operations tomaintain and provide secure and safe conditions.
Creating a more advanced, higher quality, safer and more secure building maintenance framework and value.
XYMAX ALPHA has introduced an initiative called ITBM (Information Technology Building Maintenance) into
building management.

TA (Technical Adviser) Support

Knowledge Support

TAs give backup to all building maintenance sites

Desired information can be accessed anytime, anywhere from a
dedicated website

While they are stationed at the ITBM Center, TAs use their knowledge, technology,
and know‐how in building maintenance based on their experiences at various sites tobackup all site operations.

Information on managed properties as well as knowledge and information concerningbuilding maintenance operations are aggregated into a database. Information can beaccessed anytime, anywhere from devices at all sites.

Real‐Time Information Gathering During of an
Emergency or Disaster

Checking with and giving instructions to thesite by the ITBM CenterIn times of fires or natural disasters, information can be shared with therelevant divisions and head office functions on a real‐time basis using
video from smart devices connected on‐site with the ITBM Center.
Videos sent from the site can be shown on a large display. The
information can be used for real and accurate status reporting, as thevideos and audio exchanged between the both are recorded
automatically.
Video at the time of a fire in abuilding near a property managed by
the Company.
The video was linked to the ITBM
Center after people in the building
were safely evacuated. It was thenused in reporting the status to theowner and the head office.

Site facility staff (making the rounds/on‐site)

36

APPENDIX

Facility Management
The XYMAX Group conducts integrated management of retail stores of retail chains by providing services that substantiallyreduce the operational burden on store management.
Conventional store management

XYMAX store management system

Issues for clients
Each store• Shortage of manpower instore management• Optimization of cost andspecifications

Corporate
headquarters
Status confirmation

Inquires
Corporate headquarters

Order placement
Facility management
systemService providers

Orderplacement

24‐hour call center

InquiresBenefits of integrated management to clients
 Improving operational efficiency of store management• Introduce call center and store management system• Reduce management staff of headquarters

 Optimizing costs, improving quality• Consolidation of contractors, unification of specifications• Reduce fixed costs (contractor fees) of stores

 Ensure thorough compliance, response to government agencies

Service providers

Each store• Operations related to response to government agencies, routine inspection• Remedy of compliance violations

37

APPENDIX

Original Sourcing Strategy
XYMAX REIT captures the need for real estate disposal gained from the huge customer base of the XYMAX Group.
In addition, XYMAX REIT grasps the trend of real estate owners at an early stage through daily communication, so that opportunities are created for external growth.

┃Direct relationship with real estate owners┃
XYMAX REIT

Acquisition
Trap disposal needs

 More than 70% of real estate owners are concerns over about large‐scale renovations of owned properties,
tenant management, and securing funds for reconstruction
 Identifies needs of property disposal arising due to the problem or concern about necessary funds
 Concern for inheritance and business succession tends to increase as real estate owners get older
 Identifies needs of property disposal upon business succession and inheritance by building owners

Asset Management Company
Realization of external growth
XYMAX Group

Survey on building owners’ situations by XYMAX Real Estate Institute┃Anxiety in future building business (by the number of owned buildings)┃

Owner relationship, customer base
General businesscompany

Building owners

Others3 buildings or moreManagement of tenants forlarge‐scale renovation andreconstruction
Securing funds for large‐scalerenovations and reconstruction

Financing
InheritanceROE management

Financing

30%

50%

20%

36%

42%

23%

1‐2 buildings

Measures against inheritanceand business succession

3 buildings or more
1‐2 buildings

24%

52%

30%

46%

3 buildings or more

16%

1‐2 buildings

20%
0%

39%

Percentage of client types for real estate management business(As of the end of January 2020)

Number ofproperties undermanagement

906

Others38%

J‐REIT
21%

Individual,
etc.
41%

● J‐REIT
J‐REITs including XYMAX REIT
● Individual, etc.
Individuals, asset management companies,
general business companies, etc.
● Others
Private REITs, private funds, real estatecompanies, etc.
Source: The asset management company based on material
provided by XYMAX Corporation

24%
45%

45%
20%

40%
Concerned┃Diversity among real estate owners┃

24%

35%
60%

80%

Slightly concerned

100%

Not concerned

Source: “Building Owner Survey 2017” by XYMAX Real Estate Institute┃Concerns over future building business (By age, multiple answers)┃
40 or younger

Management of tenants forlarge‐scale renovation andreconstruction

50‐59
60‐69
70 or older
40 or younger

Securing funds for large‐scalerenovations and reconstruction

50‐59
60‐69
70 or older
40 or younger

Measures against inheritanceand business succession

50‐59
60‐69
70 or older

0%

20%

40%
Concerned

60%
Slightly concerned

80%

100%

Not concerned

Source: Created by XYMAX Real Estate Institute based on the request from the asset management company

38

APPENDIXXYMAX Group’s track record of real estate disposals and real estate brokerage
External growth (number of cases, total amount and area) by capitalizing on track record in real estate
sales and brokerage.
Use and geographical area of real estate in real estate disposals andreal estate sales brokerage results

To investment corporations, etc. */Whole
Disposals and sales
brokerage
Number of cases
Disposals andsales brokerage
Total

2.8%

36

306

Office9.8%
0.5%

Retail

8.9%
53.4%

8.9%

Logistics

11.8%
Land

4.1 billion yen

42.1%

4.9%
5.3%

residential

Other Tokyo
Metropolitan Area
Osaka Area
Nagoya Area

22.1%

Other

Fukuoka Area
Other

By asset (whole)(based on transaction price)

1.7 billion yen

Tokyo

Hotel

12.8%

Average perbuilding

23 Wards of Tokyo

14.1%

149.1 billion yen
530.0 billion yen

5 Wards of Tokyo

1.8%
0.8%

By area (whole)(based on transaction price) Source: XYMAX Corporation

Accumulated track record of real estate disposal and brokerage services(accumulated total from April 1, 2010, excluding sales to XYMAX REIT)(hundred million yen)

14.9 billion yen to investment corporation, etc./Whole 53.0 billion yen

6,000(Actual results from April 1, 2010 to March 31, 2020 Fiscal year average)

5,500
5,000
4,500
4,000
3,500
3,000

2,977

2,500

2,071

2,000
1,500
1,000

3,809

2,607

1,676

269

645
427

585

694

756

End of March2011

End of March2012

End of March2013

End of March2014

End of March
2015

500
0

934

1,251

3,323

1,075

1,148

End of March2016

End of March
2017

1,384
End of March
2018

1,482
End of March
2019

1,491
End of March
2020

Source: XYMAX Corporation* Vehicle for acquisition and holding of properties with the intent to transfer them to real estate investment corporations

39

APPENDIX

Accumulating and utilization of original data by XYMAX Real Estate InstituteTechnology/
information
providing

XYMAX
Group
business┃ Office market cycle in the 23 wards of Tokyo ┃Publicationof
information

XYMAX Real Estate
Institute Corp.

Mass media（ New contracted rent index ）Rent Index （100＝2010Q1）

180
Various media

2008Q2

160
140

Posting, contribution and lectures in mass media and various
media (example)
 PostingNihon Keizai Shimbun, Nikkei Business Daily, etc.

 Contribution

ARES Real Estate Securitization Journal Lectures

2001Q1120
100

BUILDING TOKYO, etc.

80

Waseda University Advanced Collaborative

60

Research Organization for Smart Society

2003Q2

2019Q4

2012Q2

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

（Vacancy rate︓％）Land Economy and Construction and Engineering
Industry Bureau, Ministry of Land, Infrastructure,
2018Q4

2019Q1

2019Q2

2019Q3

2019Q4

Vacancy rate

0.87%

0.81%

0.87%

0.79%

0.78%

New
contracted
rent index

123

123

127

135

128

Transport and Tourism
Institute for Building Environment and Energy
Conservation (IBEC)WORKTECH
 Joint study

Japan Facility Management Association (JFMA), etc.

 OtherTokyo Univ., Nihon Univ., Waseda Univ., Univ. of Hyogo, etc.
Participation in CRE at MIT in USA as an Industrial Partner(Source) XYMAX Real Estate Institute Corp. (Vacancy rates for March 2011 and before arecalculated based on data from a major leasing brokerage company)

40

APPENDIX

Market Analysis (1)The scarcity of small‐ and medium‐scale office buildings will improve in the future, when considering the current limited
supply trend.
XYMAX REIT believes that the volatility of rent for small‐ and medium‐scale office buildings is relatively lower than that oflarge‐scale buildings and is highly stable revenues.
┃ Office Stock Pyramid 2020 covering the 23 Wards (net rentable area)┃
23 Wards of Tokyo: 12.96 million tsubo, 9,293 buildings, average building age: 31.6 years

Small‐ and medium‐scale office70buildings (Gross floor area: 300‐5,000 tsubo)65
Whole: 6.07 million tsubo,
8,538 buildings, 32.3 years on average

Large‐scale office buildings (Grossfloor area: 5,000 tsubo or more)
Whole: 6.89 million tsubo,755 buildings, 23.6 years on average60

1.52 million tsubo (25%)

1.14 million tsubo(17%)

40

100

20
15

50

40

30

76

20 years or older:

Less than 20 years:
3.49 million tsubo (51%)
0

127

79

3.40 million tsubo (49%)

0
10

129

146

60

5

20

Q1: Jan. – Mar.
Q2: Apr. – June
Q3: July – Sept.
Q4: Oct. – Dec.

80

101.07 million tsubo (18%)

Large‐scale office buildings(total floor area: 5,000 tsubo or more)

160

120

25

Less than 20 years:

190

180

45

30

5.00 million tsubo (82%)

200

Small‐ and medium‐scale office buildings(total floor area: less than 5,000 tsubo)140

Old seismic standard:

50

35

20 years or older:

Rent Index (100＝2010 Q1)

55

Building age (years)

Old seismic standard:┃New contracted rent by office building scale┃

10

20

30

40

50

Rentable area (million tsubo).
Source: Survey Report by XYMAX Real Estate Institute Corp.
“[23 Wards of Tokyo] Supply of New Office Space 2019 & Office Stock Pyramid 2020”

2018
Q4

2019
Q1

2019
Q2

2019
Q3

2019
Q4

Small‐ and medium‐scale
office buildings (total floorarea: less than 5,000 tsubo)

123

122

125

135

129

Large‐scale office buildings(total floor area: 5,000
tsubo or more)

118

119

118

127

127

Source: Survey Report by XYMAX Real Estate Institute Corp.
“Office Market Report Tokyo Q4 2019”41

APPENDIX

Market Analysis (2)XYMAX REIT believes that there will be robust tenant demand within the range of 10,000 to 20,000 yen in general, regardless of the market
environment.
XYMAX REIT believes that there is a clear correlation between convenient locations (the time required to walk to the nearest station) and theoccupancy rate.
┃Vacancy rate by time required to walk to the nearest┃Distribution of contracts concluded in the 23 Wards ofstation in the 23 wards of Tokyo┃
Tokyo (by unit price of contracted rent) ┃
（%）
20
18
16
14
12
8
6
4
2
0

Large segments ofcontracts concludedin the market

（%）
20
18
16
14
12
8
6
4
2
0
（%）
20
18
16
14
12
8
6
4
2
0

Jan.‐Mar.2010
Number of cases: 1,287
Number of targeted properties: 1,031

（％）

14.0%
All locations (combined)
Within a 3‐miunte walk to the nearest station

12.0%

3–5 minute walk to the nearest station
More than a 5‐minute walk from the nearest station

10.0%

Apr.‐June 2012
Number of cases: 593
Number of targeted properties: 568

8.0%

6.0%

Oct.‐Dec. 2019

4.0%

Number of cases: 980
Number of targeted properties: 853

2.0%

0.0%

Unit rent (yen/tsubo)■■ Oct.-Dec. 2018■■ Oct.-Dec. 2019

Source: Created by XYMAX Real Estate Institute uponrequest of Asset Management Company

Source: Created by XYMAX Real Estate Institute upon the request of Asset Management Company

42

APPENDIXXYMAX Group’s Expanding B to C Business Activities (ZXY)
Membership satellite office business “ZXY” leading work‐style reform┃Workplace service enabling free work‐style┃「GOOD DESIGN BEST 100」
受賞
ZXY Share

ZXY Kids

Change in number of members and workplaces
Members

Workplaces250,000

100
Number of members (members)
Number of workplaces(workplaces)

200,000

75

80
80

69
226,692

150,000
41

49

219,934
223,689

60
40

2020/320

2020/2

2019/122019/92019/6

2019/3

2018/1235

2018/932

2018/62018/32017/92017/122017/62017/30

2016/950,0004554212,954
179,58326
139,24421
122,925
113,41214
44,19920,51689,22076,90230,3807,572
46,61823,7856,242

31
28 29 30 30

2016/12

100,000

2016/6

Location of workplaces

ZXY Monthly0

Source: XYMAX Corporation

43

APPENDIXXYMAX Group’s Expanding B to C Business Activities（Karaksa Hotels）
The Groupʼs own brand “Karaksa Hotels” also meeting the needs for overseas tourism.
Osaka
Mar. 2016
Jan. 2017
Nov. 2017
Nov. 2019
To be opened

Hokkaido
69 rooms karaksa hotel Osaka Shinsaibashi * (Opened)
139 rooms karaksa Spring hotel Kansai Air Gate * (Opened)
112 rooms karaksa hotel Osaka Namba * (Opened)
396 rooms karaksa hotel grande Shin‐Osaka Tower * (Opened)
176 rooms

177 rooms karaksa hotel Sapporo * (Opened)
140 rooms

Jan. 2018
To be opened

Kyoto
Mar. 2016 36 rooms
karaksa hotel Kyoto I * (Opened)karaksa hotel grandeShin‐Osaka Tower

Chibakaraksa hotel Osaka Namba

To be opened 190 rooms
karaksa hotel Sapporo

 Change in number of hotels developed andhotelsoperated and number of guestrooms

15

2,000

Number of hotels
Number of guestrooms

1,908

1,600

karaksa hotel premier Tokyo Ginza

10
karaksa hotel Kyoto I

1,200

1,137

13
533

5

Tokyo
karaksa hotel TOKYO STATION

OpenedTo be openedrooms

May 2019
Jul. 2019
To be opened
To be opened

57 rooms karaksa hotel premier Tokyo Ginza * (Opened)
151 rooms karaksa hotel TOKYO STATION * (Opened)
103 rooms
162 rooms

356
105

0

2

4

2016

2017

8
5
2018

* As of the date of this material, XYMAX REIT has not determined the acquisition of these properties and there is no guarantee that XYMAX REIT will acquire them in the future.

2019

800
400
0

To be
openedSource: XYMAX Corporation

44

APPENDIX

The source of power to maximize unitholder value;XYMAX REIT's “3 strengths”
XYMAX REIT will maximize unitholder value by utilizing the three real estate management strengths of its sponsor, the
XYMAX Group.

Management that leverages our “3 strengths”

Assessment

 Through combining our knowledge gained through real estate management experiencethroughout Japan and an analysis of a huge amount of unique real estate data held by thesponsor group, we will accurately determine the market positioning of a target property,
upon determining the appropriate level of rent and management costs for such property.

Management

 Through daily unfettered discussion, we will perform management which directly utilizes
various expertise of the sponsor group as well as input from the frontline. With close
communication with the frontline enabling quick decisions, we will maximize property
potentials, together with ensuring opportunities for internal growth.
 Utilizing the sponsor group’s direct communication with real estate owners, we will seize
property acquisition opportunities in exclusive transactions for sure.

Sourcing

 Utilizing the real estate buying and selling needs of the customer base of the CRE service
provided by the sponsor group, we will create property acquisition opportunities in
exclusive transactions.
45

APPENDIX

Portfolio List (1)Asset no.

OF‐01

OF‐02

OF‐03

OF‐04

OF‐05

OF‐06

Asset type

OfficeOfficeOfficeOfficeOfficeOfficeProperty nameXYMAX Nishi‐Shimbashi Building

XYMAX Iwamotocho Building

XYMAX Shinjuku‐Gyoen Building

XYMAX Kamiyacho Building

XYMAX Higashi‐Azabu Building

XYMAX Higashi‐Ueno Building

Location

Minato‐ku, Tokyo

Chiyoda‐ku, Tokyo

Shinjuku‐ku, Tokyo

Minato‐ku, Tokyo

Minato‐ku, Tokyo

Taito‐ku, Tokyo

3 minutes on foot from
Iwamoto‐cho station on the
Toei Subway Shinjuku line

2 minutes on foot from
Shinjuku Gyoenmae station on
the Tokyo metro Marunouchi
line

1 minute on foot from
Kamiyacho station on theTokyo metro Hibiya line

5 minutes on foot from
Akabanebashi station on the
Toei Subway Oedo Line

3 minutes on foot from Naka‐
Okachimachi station Tokyo
metro Hibiya line

7 minutes on foot from
Kamiyacho station on theTokyo metro Hibiya line

4 minutes on foot from JR
Okachimachi station, andother

Access3 minutes on foot from
Uchisaiwaicho station on the
Toei Subway Mita line
6 minutes on foot from
Shimbashi station on the JRTokyo metro Ginza line , andother

Acquisition price(million yen)

2,500

4,250

5,020

880

1,550

1,150

Land area

402.53㎡

864.83㎡

839.09㎡

228.83㎡

365.05㎡

368.84㎡

Total floor area

2,517.50㎡

6,261.06㎡

6,084.32㎡

1,356.51㎡

2,570.13㎡

1,942.54㎡

Leasable area

1,897.75㎡

4,152.30㎡

4,792.13㎡

1,205.29㎡

2,016.00㎡

1,735.34㎡

Completion

2000

2001

2001

1991

1999

1999

Structure/Number of
FloorsReinforced concrete structurewith flat roof 9F

Steel‐framed reinforced
concrete structure with flat
roof B1F/9F

Steel‐construction /Reinforced concrete structurewith flat roof B1F/9F

Steel‐construction with flat
roof 8F

Steel‐framed reinforced
concrete structure with flat
roof B1F/9F

Steel‐framed reinforced
concrete structure with flat
roof 8F

8

14

6

8

4

8

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Number of tenant(As of the end of 4th FP)

Occupancy rate
(As of the end of 4th FP)

46

APPENDIX

Portfolio List (2)Property no.

OF‐07

RT‐01

RT‐02

RT‐03

HT‐01

OT‐01

Asset type

OfficeRetailRetailRetailHotel

Other (Residential9)

Property nameXYMAX Hachioji Building

Muza Kawasaki

Life Kawasaki Miyuki Store

Vita Seiseki‐Sakuragaoka

Hotel Vista Sendai

Renaissance 21 Chihaya

Location

Hachioji‐shi, Tokyo

Kawasaki‐shi, Kanagawa

Kawasaki‐shi, Kanagawa

Tama‐shi, Tokyo

Sendai‐shi, Miyagi

Fukuoka‐shi, Fukuoka

4 minutes on foot from JR
Sendai station

Access4 minutes on foot from Keio
Hachioji station on the Keio
Electric Railway Keio Line

1 minute on foot from
Miyagino Dori station on the
Sendai City Subway Tozai Line

6 minutes on foot from
Chihaya station on the JR
Kagoshima main line andNishitetsu Chihaya station on
the West Nippon Railway
Kaizuka line

5 minutes on foot from JR
Hachioji station

JR Kawasaki station directconnection

15 minutes on foot from JR
Kashimada station and YakostationKeio Electric Railway Keio Line
Seiseki Sakuragaoka Station
Directly Connected

Acquisition price(million yen)

2,600

4,100

790

3,100

4,400

2,700

Land area

1,220.58 ㎡

742.44 ㎡ *1

1,879.15 ㎡

4,467.51 ㎡ *2

1,461.36 ㎡ *3

2,644.63 ㎡

Total floor area

7,404.81㎡

3,671.09㎡ *1

2,596.80㎡

27,161.00㎡ *2

6,977.47㎡

10,856.15㎡

Leasable area

5,556.03㎡

3,703.87㎡

2,677.54㎡

27,610.61㎡

7,066.25㎡

10,287.93㎡

Completion

1993

2004

1997

1999

2016

2006

Steel‐construction with flat
roof 12F

Steel‐framed reinforced
concrete structure with flat
roof 14F

Structure/Number of
FloorsNumber of tenant(As of the end of 4th FP)

Occupancy rate
(As of the end of 4th FP)

Steel‐framed reinforced
concrete/ Steel‐construction
with flat roof B1F/9F

Steel‐framed/Steel‐framed
reinforced concrete structurewith flat roof/stainless steel
plate roofing B2F/27F

Steel‐construction with flat
roof 2F

Steel‐framed reinforced
concrete structure/reinforced
concrete structure/steel‐construction withflat roof B3F/27F

25

18

1

1

1

131

100.0%

100.0%

100.0%

100.0%

100.0%

91.0%*1 Land area indicates the figure equivalent to 6.9% of the right of site (rounded down to the first decimal place) held by the Investment Corporation within the site area of Muza Kawasaki. In addition, building area indicates the total building area based on the real estate registry for the components the trust

beneficiary rights held by the Investment Corporation.
*2 Land area indicates the figure equivalent to 49.6% of the right of site (rounded down to the first decimal place) held by the Investment Corporation within the site area of Vita Seiseki‐Sakuragaoka. In addition, building area indicates the total building area based on the real estate registry for the components thetrust beneficiary rights held by the Investment Corporation (floor area of 2 jointly‐owned components, building No. 72‐3 and 72‐7 is the figure multiplied by ownership ratio of 937,995/1,000,000 and 591,485/1,000,000, respectively), and is rounded down to the second decimal place.
*3 Superficies have been established for 524.21 m2 of the land area.

47

APPENDIX

Portfolio Map
Portfolio located in favorable locations┃ Tokyo Area ┃┃ Tokyo Economy Area ┃OF‐07 XYMAX Hachioji Building

RT‐01 Muza Kawasaki

OF‐6 XYMAX Higashi‐Ueno Building
RT‐02 Life Kawasaki Miyuki Store

RT‐03 Vita Seiseki‐Sakuragaoka

OF‐02 XYMAX Iwamotocho Building
OF‐03 XYMAX Shinjuku‐Gyoen Building┃ Fukuoka Area

┃ Sendai Area ┃OT‐01 Renaissance 21 Chihaya

OF‐01 XYMAX Nishi‐Shimbashi Building
OF‐04 XYMAX Kamiyacho Building

HT‐01 Hotel Vista Sendai

OF‐05 XYMAX Higashi‐Azabu Building

OfficeRetailHotel

Others（Residence）

48

APPENDIX

Investment Ratio and Advantage by Asset Type

8.2%
13.3%

54.3%

24.2%

■Office■Retail■Hotel■Others■Main asset

21.5%
43.0%

*The breakdown is basedon the acquisition price

32.1%

Average unit rent 15,661 yen / tsubo■10,000 yen ‐ 15,000 yen■15,000 yen ‐ 20,000 yen■20,000 yen ‐*As of the end of February 2020**Excl. rents of stores, parking lots, etc.
***Unit rent incl. CAM

47.6%

10.8%
27.8%

22.7%

Average

14.0
years
30.4%

19.9%

23.1%
Average■Less than 3 minutes■3〜5 minutes

min.

*The breakdown is based on theacquisition price and averageshows the simple average

平均3.0
3.0分

76.9%

■Less than 5 yrs.
■ 5〜10 yrs.
■ 10〜15 yrs.
■ 15〜20 yrs.
■ Over 20 yrs.
■ Over 5yrs.

8.2%*The breakdown is based on theacquisition price and averageshows the simple average
91.8%

Average engagement period

Time required from the nearest station

8.9%

43.5%

■5 wards of Tokyo**■23 wards of Tokyo excl. 5 wards■Tokyo economy***■Designated cities■Tokyo metropolitan area

*The breakdown is based on theacquisition price**Chiyoda, Chuo, Minato, Shinjuku andShibuya wards within Tokyo.
***Tokyo (excl. 23 wards of Tokyo), and78.5% prefectures of Kanagawa, Saitama, andChiba.

3.5%

91.8%

OfficePercentage by year engaged by XYMAX Group

Percentage by geographic area

Percentage by asset type

Average

平均17.7
17.2年

years

51.6%

■10 years or more andless than 15 years■15 years or more andless than 20 years■20 years or more
*The breakdown is based on theacquisition price and averageshows the simple average

28.4%（+0.9％ vs. end of August 2019, 15,519 yen ）9.9%■Station‐front■Other■Neighborhood *1*The breakdown is based on theacquisition price

90.1%

Average engagement period

Average

平均11.1
11.6 年
61.2%

years

38.8%

■5 years or more andless than 10 years■10 years or more
*The breakdown is based on theacquisition price and averageshows the simple average

100%*1 Retail facilities for which the majority of customer can easily come on foot or by bicycle in a short time.

Percentage of specialized in Stay
Specialized in Stay
宿泊特化型

Hotel

RetailComposition of retail properties*The breakdown is based on
the acquisition

100.0%

49

APPENDIX

Operating Income (Loss) from Real Estate Leasing by Asset（1/2）(thousand yen)

Nishi‐Shimbashi

Iwamotocho

Shinjuku‐Gyoen

Kamiyacho

Higashi‐Azabu

Higashi‐Ueno

Operating revenue fromreal estate leasing

80,829149,699

166,808

40,50957,86546,369Lease business revenue

75,530127,395

154,51736,70751,78340,406

Other lease businessrevenue

5,299

22,304

12,291

3,801

6,082

5,963

Operating expenses fromreal estate leasing

18,92446,45840,14518,75922,134

13,438Tax and public dues

6,909

13,41914,446

4,678

6,362

3,685

Maintenance fees

5,413

10,414

10,808

4,613

6,126

4,281

Utility expenses

4,292

7,997

8,606

2,543

2,990

3,016

Repair expenses

1,613

10,570

3,922

4,917

5,509

1,200

Insurance premiums

62

221

212

46

82

60

Other expenses related
to rent business

635

3,834

2,150

1,959

1,063

1,194

ＮＯＩ

61,904103,240

126,662

21,75035,73032,931

Depreciation

2,588

11,243

10,071

1,287

4,692

2,550

Operating income(loss) from real estateleasing

59,31591,996

116,591

20,462

31,03830,381（Excluding Depreciation）

50

APPENDIX

Operating Income (Loss) from Real Estate Leasing by Asset（2/2）(thousand yen)Hachioji

Muza

Kawasaki Miyuki

Seiseki‐
Sakuragaoka

Sendai

Total

Chihaya

Operating revenue fromreal estate leasing

134,284

155,939

undisclosed

undisclosed

161,289

103,083

1,343,421

Lease business revenue

117,672

134,809

undisclosed

undisclosed

161,289

97,363

1,240,652

Other lease businessrevenue

16,612

21,130undisclosed

undisclosed

‐

5,720

102,769

Operating expenses fromreal estate leasing

38,43643,440undisclosed

undisclosed

24,491

32,347375,731

Tax and public dues

8,397

10,345undisclosed

undisclosed

11,244

8,624

132,755

Maintenance fees

15,731

14,740undisclosed

undisclosed

1,800

7,818

83,546

Utility expenses

8,142

13,951

undisclosed

undisclosed

‐

1,513

53,054

Repair expenses

3,552

3,680

undisclosed

undisclosed

2,404

6,850

71,455

Insurance premiums

275

191

undisclosed

undisclosed

215

295

3,756

Other expenses related
to rent business

2,337

530

undisclosed

undisclosed

8,827

7,245

31,162

ＮＯＩ

95,848112,499

14,509155,080

136,797

70,736967,690

Depreciation

9,183

16,466

1,502

13,70531,957

19,359124,610

Operating income (loss)
from real estate leasing

86,66596,032

13,006

141,374

104,839

51,376

843,080（Excluding Depreciation）

51

APPENDIX

Overview of Appraisal Report
Asset
no.

Asset nameBook value as ofAcquisition price
Acquisition datethe end of 4th FY(million yen)(million yen)

End of 3rd FY(August 31, 2019)

End of 4th FY(February 29, 2020)

Capitalization rate
Appraisal
based on direct
value (million
capitalizationyen)method (%)

Capitalization rate
Appraisal
based on direct
value (million
capitalizationyen)method (%)

ChangeAppraisalvalue *1
(million yen)

Unrealized profit orloss *3 (million yen)Appraiser

Capitalization rate
based on direct
capitalization
method *2 (%)

The Tanizawa Sōgō

OF‐01

XYMAX Nishi‐Shimbashi Building

February 2018

2,500

2,521

3,100

3.7

3,110

3.7

10

‐ Appraisal Co., Ltd.

OF‐02

XYMAX Iwamotocho Building

February 2018

4,250

4,346

5,710

3.5

5,720

3.5

10

‐ Japan Real Estate Institute

1,373

OF‐03

XYMAX Shinjuku‐Gyoen Building

February 2018

5,020

5,053

7,140

3.5

7,200

3.5

60

‐ Japan Real Estate Institute

2,146

OF‐04

XYMAX Kamiyacho Building

February 2018

880

892

1,160

3.8

1,190

3.8

30

‐ Appraisal Co., Ltd.

OF‐05

XYMAX Higashi‐Azabu Building

February 2018

1,550

1,601

2,100

3.9

2,160

3.8

60

‐0.1 Co., Ltd.

OF‐06

XYMAX Higashi‐Ueno Building

February 2018

1,150

1,175

1,590

4.0

1,600

3.9

10

‐0.1 Co., Ltd.

OF‐07

XYMAX Hachioji Building

February 2018

2,600

2,600

3,590

4.8

3,590

4.8

‐

RT‐01

Muza Kawasaki

February 2018

4,100

4,120

5,400

4.1

5,380

4.1

‐20

RT‐02

Life Kawasaki Miyuki Store

February 2018

790

796

975

4.2

975

4.2

‐

RT‐03

Vita Seiseki‐Sakuragaoka

February 2018

3,100

3,253

3,870

5.0

3,930

5.0

60

HT‐01

Hotel Vista Sendai

February 2018

4,400

4,337

5,570

4.6

5,480

4.7

‐90

OT‐01

Renaissance 21 Chihaya

February 2018

2,700

2,776

3,130

5.0

3,130

5.0

‐

‐ Appraisal Co., Ltd

33,04033,47643,335‐43,465

Total ／Average

130

588

The Tanizawa Sōgō

297

Daiwa Real Estate Appraisal

558

Daiwa Real Estate Appraisal

424‐ Japan Real Estate Institute989

The Tanizawa Sōgō

‐ Appraisal Co., Ltd.

1,259

Daiwa Real Estate Appraisal

178‐ Appraisal Co., Ltd.

The Tanizawa Sōgō

676

0.1 Appraisal Co., Ltd.

The Tanizawa Sōgō

1,142

The Tanizawa Sōgō353

‐ Co., Ltd.

‐

‐

9,988

*1 The difference between the estimated value at the end of the 3rd fiscal period and the estimated value at the end of the 4th fiscal period is indicated.
*2*3

The difference between the direct capitalization rate adopted in the real estate appraisal report for each portfolio asset in the calculation of estimated value at the end of the 3rd fiscal period and the direct capitalization rate adopted
in the real estate appraisal upon property acquisition is indicated
The difference between the book value at the end of the 4th fiscal period for portfolio assets and the book value at the end of the 4th fiscal period for portfolio assets is indicated.

52

APPENDIX

Balance Sheet and Statement of Income(thousand yen)
Balance Sheet
AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Operating accounts receivable
Prepaid expenses
Other

Non‐current assets
Property, plant and equipment
Tools, furniture and fixtures
Buildings in trust
Structures in trust
Tools, furniture and fixtures in trust

Land in trust
Investments and other assets
Long‐term prepaid expenses
Deferred tax assets
Lease and guarantee deposits
Other

Total assets
Liabilities
Current liabilities
Operating accounts payable
Short‐term loans payable
Current portion of long‐term borrowings

Accounts payable ‐ other
Income taxes payable
Accrued consumption taxes
Advances received
Other

Non‐current liabilities
Long‐term loans payable
Tenant leasehold and security
deposits in trust

Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus

Total net assets
Total liabilities and net assets

3rd fiscal period(As of Aug. 31, 2019)(thousand yen)

4th fiscal period(As of Feb. 29, 2020)(thousand yen)

3,030,583
1,009,178
1,960,942
28,71731,354390
33,599,215
33,469,409
67,221
8,747,412
43,0885,415
24,606,271
129,806
32,962
13
22,60074,23036,629,798

2,958,929
1,005,416
1,895,489
23,90433,746372
33,628,935
33,476,361
53,2448,759,344
49,391
8,108
24,606,271
152,574
41,111
16
22,60088,84736,587,864

3,783,944
119,7121,014,000
2,336,000
96,157885
25,125
186,235
5,827
9,578,262
8,330,000

3,547,233
90,363814,000
2,336,000
90,777937
29,347
183,695
2,112
9,782,973
8,530,000

1,248,262

1,252,973

13,362,207

13,330,207

23,267,591
22,585,746
681,845
23,267,591
36,629,798

23,257,657
22,585,746
671,91123,257,657
36,587,864

Statement of Income
Operating revenue
Lease business revenue
Other lease business revenue

Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensations
Other operating expenses

Operating income
Non‐operating income
Interest income
Insurance payment received
Non‐operating expenses
Interest expenses
Borrowing related expenses

Ordinary income
Income before income taxes
Total income taxes
Income taxes ‐ current
Income taxes ‐ deferred

Net income
Retained earnings brought forward
Unappropriated retained earnings(undisposed loss)

3rd fiscal period(As of Aug. 31, 2019)(thousand yen)

1,348,404
1,239,634
108,769
621,883
498,836
77,234
825
9,455
2,400
33,130726,52114
14
43,82633,848
9,983
682,708
682,708885
888‐2
681,823
22
681,845

4th fiscal period(As of Feb. 29, 2020)(thousand yen)

1,343,421
1,240,652
102,769
619,206
500,341
76,442
824
8,936
2,400
30,261
724,215
4,662
14
4,647
56,05834,09821,960672,819
672,819937
939‐2671,88229
671,91153

APPENDIX

Change in investment unit price┃Change in investment unit price┃ As April 3, 2020（円）

145,000

XYR

140,000

Tokyo Stock Exchange REIT Index

135,000
130,000
125,000
120,000
115,000
110,000
105,000

Issue price

100,000

105,000 yen

95,00090,00085,000

Closing price 82,200 yen
As of April 3, 2020

80,00075,00070,000

2018
2/15
2/15

3/15

4/15

5/15

6/15

7/15

8/15

9/15

10/15

11/15

12/15

2019
1/15
1/15

2/15

3/15

4/15

5/15

6/15

7/15

8/15

9/15

10/15

11/15

12/15

2020
1/15
1/15

2/15

3/15

* The Investment Corporation has indicated the issue price with 105,000 yen as the starting point and indexed the Tokyo Stock Exchange REIT Index based on the opening price as of February 15, 2018.

54

APPENDIX

Status of Unitholders
Major Unitholders

Share of investment units by owner type■Individuals, other ■Financial institutions ■Other domestic companies■Overseas institutions, etc. ■Securities companies

1st FP

2nd FP

3rd FP

4th FP

Name

9.4%

53.0%

15.1%

9.4%

51.1%

12.9%

19.8%

Financial
institutions
Other domestic
companies
Overseas
institutions, etc.
Securities
companies
Total

2.7%

4.8%

Number of unitholders by owner type

Individuals, other

0.9%

4.7%

21.8%

27.4%

9.1%

46.1%

12.6%

19.8%

10.1%

56.2%

13.0%

1st FP

2nd FP

3rd FP

4th FP

3,822

4,220

3,892

4,089

41

37

40

37

106

107

88

90

70

70

76

79

16

16

21

23

4,055

4,450

4,117

4,318

Note: As of February 29, 2020

Number ofinvestment
units(unit)

Ratio(%)

Japan Trustee Services Bank, Ltd.
(Trust account)

33,17014.85

The Master Trust Bank of Japan, Ltd.
(Trust account)

32,982

14.76

XYMAX Corporation

12,5005.60

The Nomura Trust and Banking Co., Ltd.
(Trust account)

11,054

4.95

BNP PARIBAS SECURITIES SERVICES LUXEMBOURG /JASDEC / SECURITIES‐AIFM

7,598

3.40

Trust & Custody Services Bank, Ltd.
(Securities investment trust account)

7,580

3.39

SIX SIS LTD.

5,520

2.47

BNYM SA/NV FOR BNYM FOR BNY GCM CLIENT
ACCOUNTS M LSCB RD

4,728

2.12

BNP PARIBAS SECURITIES SERVICES FRANKFURT /JASDEC /SGSS DEUTSCHLAND KAPITALANLAGEGESELLSCHAFTMBH FOR REIT ASIEN 1

4,689

2.10

The Bank of Yokohama,Ltd.

3,988

1.79

123,809

55.42

Total

55

APPENDIX

Overview of Asset Management Company
Overview
Company name

Organization
XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation

General Meetingof Shareholders

Location

XYMAX Akasaka 111 Building, 1‐1‐1 Akasaka, Minato‐ku, Tokyo
AuditorEstablishment

August 6, 2007

Capital

0.2 billion yen

Board of Directors

Major shareholders
Number of
employees

Compliance Committee

REIT Compliance Committee

Investment Committee

REIT Investment Committee

Internal Audit Team

Compliance OfficeCompliance Officer

XYMAX Corporation (100% stake)36 (as of April 1, 2020)(1) Financial instruments business as prescribed in the Financial
Instruments and Exchange Act

Lines of business(2) Real estate investment advisory business and discretionary realestate investment business(3) Asset management business for investment corporation
Nobuhito Inatsuki, Representative Director and President

Executives

Yasushi Yamaguchi, Director

Representative

Kazuya Sugimoto, Director

Director

Shigeki Kawakita, Auditor
Financial instruments business: Director‐General of the Kanto Local Finance Bureau
Registration (FIBO) No. 1907 (Investment Management Business, Investment Advisory
and Agency Business, and Type II Financial Instruments Business)

Licenses

Discretionary transaction agency, etc. business: Minister of Land, Infrastructure,
Transport and Tourism Approval No. 118
Real Estate Specified Joint Enterprise: License No. 75 granted by Commissioner of the
Financial Services Agency and Minister of Land, Infrastructure, Transport and Tourism(for businesses referred to in items (iii) and (iv))
Real estate investment advisory business: Registration No. Sogo‐57
Real estate brokerage business: Governor of Tokyo License (3) No. 88223

Private Investment
Management
Department

Business
Development
Department

Business
Administration
Division

REIT
Management
Division

Business
Planning
Division

56

Disclaimer

This document is provided solely for informational purposes with regard to XYMAX REIT Investment Corporation (hereinafter, “XYMAX REIT”)
and is not intended to serve as an inducement or solicitation to trade in any product offered by XYMAX REIT. Decisions on investments are to bemade using your own discretion and responsibility.
Purchase, sale and such of XYMAX REITʼs investment units entail the risk of incurring a loss due to fluctuations in the investment unit price.
Please consult with your securities company regarding the purchase of XYMAX REITʼs investment units or investment corporation bonds.
Information presented in this document should not be interpreted, unless otherwise specified, as constituting disclosure documents or an asset
management report required under Financial Instruments and Exchange Act or the Act on Investment Trusts and Investment Corporations.
XYMAX REIT and XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation (hereinafter, the “Asset Management Company”) to which XYMAXREIT entrusts the management of its assets are taking all possible measures to make the information contained in this document the best
available. However, no assurances can be given regarding the accuracy, validity and completeness of the information, regardless of whether it isinformation prepared by XYMAX REIT or the Asset Management Company, or information received from a third party.
Among the information provided in this document, statements other than those pertaining to facts in the past or present are forward-looking
statements presented by XYMAX REIT or the Asset Management Company according to assumptions or judgement based on information
available as of the date of this document (the date if specified otherwise in the document). Forward-looking statements are based onassumptions such as the investment policy of XYMAX REIT, applicable laws and regulations, market environment, interest rate environment,
business practice and other factors as of the preparation date of this document, and do not reflect or consider changes in situations after the
preparation date. Forward-looking statements include, explicit or implied, uncertainties of existing risks, unknown risks and other factors, andmay materially differ from actual performance, business results, financial status and such of XYMAX REIT. Although this document includes
statements concerning future performances, expectations and other forecasts, such statements do not guarantee the future performances,
expectations and other forecasts.
The content of this document is subject to change or repeal without prior notice. XYMAX REIT and the Asset Management Company are under
no obligation to update or publicly disclose the content of this document (including forward-looking statements).
Duplication or reproduction of any content presented in this document without the prior consent of XYMAX REIT or the Asset Management
Company is strictly prohibited.

57