Translation Purposes Only

July 29, 2024
For Immediate Release
Real Estate Investment Trust Securities Issuer
1-11-30 Akasaka, Minato-ku, TokyoXYMAX REIT Investment Corporation
Representative:
Yasushi Yamaguchi, Executive Director(Securities Code: 3488)
Asset Management Company
XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation
Representative:
Hideki Fukae
Representative Director and President
Contact:
Tatsuya Nakayama
Head of REIT Management Department
TEL: +81-3-5544-6880

Notice of Revision of Investment Forecast and Distribution Forecast for the fiscal period
ending February 2025 (14th Fiscal Period)

XYMAX REIT Investment Corporation (hereinafter “XYMAX REIT”) hereby announces the revision of the operating
status and distribution forecast for the fiscal period ending February 2025 (14th fiscal period: September 1, 2024 toFebruary 28, 2025), announced in “(REIT) Financial Report for the Fiscal Period Ended February 2024 dated April 18,2024.
1.

Details of the Revision of Operating Status and Distribution Forecast for the Fiscal Period Ending February 2025
(14th Fiscal Period)
OperatingRevenues
Previous Forecast(A)
Revised Forecast(B)Change(B-A)
Rate of Change((B-A)/ (A))

1,669
Million yen
1,800
Million yen
131
Million yen
7.9%

Operating
Income887
Million yen
1,001
Million yen
114
Million yen
12.8%

Ordinary Income
778
Million yen
892
Million yen
114
Million yen
14.7%

Net Income777
Million yen
891
Million yen
114
Million yen
14.7%

Distribution per unit
(Excluding
Distribution in
Excess of Earnings)
3,114
Yen
3,570
Yen456Yen
14.6%

Distribution in
Excess of Earnings
per Unit(Reference) February 2025 (14th fiscal period): Assumed number of investment units outstanding at the end of the period is is 249,650 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 fromthe 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 amount of the forecast distributions per unit.
(Note 2) If XYMAX REIT expects changes to the 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 in the “Notice Concerning the Transfer of Domestic Real Estate Trust Beneficiary Rights (XYMAX
Mita Building)” dated today, XYMAX REIT has decided to transfer the XYMAX Mita Building on September 3, 2024.
Accordingly, due to changes in the assumptions for the forecast previously published in the “(REIT) Summary ofFinancial Report for the Fiscal Period Ended February 2024” dated April 18, 2024, XYMAX REIT is revising theforecast of operating status and distribution for the fiscal period ending February 2025 (14th fiscal Period) as
shown in the table above.

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

YenYenYen-

[Attachment]
Assumptions of the underlying Investment Forecast and Distribution Forecast for the fiscal period ending February 2025
(14th fiscal period: September 1, 2024 to February 28, 2025)
ItemAccounting period⚫
⚫

Assets undermanagement
⚫
⚫
⚫

⚫

Operating revenues

Assumptions
February 2025 (14th fiscal period) (September 1, 2024 to February 28, 2025) (181 days)
In addition to the real estate trust beneficiary rights held by the XYMAX REIT as of today (18properties in total) and preferred investment securities (1 property) (hereinafter referred to as
the "Acquired Assets"), transfer of the property (XYMAX Mita Building scheduled to betransferred on September 3, 2024) shall be made as described in the "Notice Concerning theTransfer of Domestic Real Estate Trust Beneficiary Rights (XYMAX Mita Building)" published asof the date hereof.
In addition to above, it is assumed that there will be no change in assets under management(sales of Acquired Assets, new properties, etc.) by the end of the 14th fiscal period.
Changes may occur due to disposition or acquisition in assets under management.
Revenues from the leasing business of acquired assets are forecasted based on the details of thelease agreements concluded as of today, past tenant and market trends, etc., taking into accountthe assumed occupancy rates and rent fluctuation forecasts based on the forecast of tenants'
occupation and departure and rent levels.
In calculating the variable rent, the figures for the applicable period are estimated by the XYMAXREIT based on the operating forecast figures submitted by the operator and calculated based on
the calculation method set forth in the lease agreement.
[Hotel Vista Sendai]
Fixed rent: 20.5 million yen per month
Variable rent: Monthly variable rent is calculated by dividing the sum of GOP of the previous 12months, including the previous month of the applicable month, by 12, subtract 21.5
million yen (Note 1), multiplied by a applicable rate (Note 2).
(Note 1)
(Note 2)⚫
⚫
⚫
⚫

If the deducted amount is negative, the variable rent for the current month will be 0 yen.
Each percentage rate is not disclosed as the operator has not given consent.

For the fiscal period ending February 2025 (14th fiscal period), the estimated amount of capitalgains related to the transfer of the Asset to be Transferred (excluding expenses related to thetransfer) has been recorded.
It is assumed that there will be no delinquency or non-payment of rent by the tenant and no gainor loss on sale of real estate, etc.
It is assumed that no operating revenues arise from preferred investment securities.
The main components of operating expenses are as follows. (Figures below the unit are rounded
down. The same applies below.)
Fiscal Period ending
February 28, 2025
(14thfiscal period)

Operating expenses

⚫

⚫
⚫

⚫

Total rent expenses
610 Million yen
Management fees
106 Million yen
Repair expense
42 Million yen
Property taxes
156 Million yen
Depreciation
178 Million yen
Total other than rent expenses
187 Million yen
Asset management fees
119 Million yen
Expenses related to leasing business, which are the main operating expenses, are calculated
based on historical data at XYMAX REIT (historical data disclosed by the previous owner, 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, including incidental expenses.
Repair costs are budgeted by the Asset Management Company on a property-by-property basis
at an amount that is assumed to be necessary for each business period. 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 amount thatarises periodically, etc. may result in repair expenses for each fiscal period differing materiallyfrom the forecast amount.
It is assumed that there will be no operating expenses for preferred investment securities.

⚫
Non-operating
expenses⚫

⚫
Interest-bearing
liabilities⚫

⚫

Investment unit⚫

⚫
Distribution per unit
(Excluding
distributions in excessof earnings)
Distributions in excessof earnings per unit⚫
⚫
⚫

Other⚫

Non-operating expenses (interest expenses and other loan-related expenses), excluding
issuance costs of investment units, are expected to be 109 million yen for the fiscal period ending
February 28, 2025 (14th fiscal period).
Investment unit issuance costs related to the issuance of new investment units are amortized ona pro-rata monthly basis over a three-year period from the month of the investment unitissuance, and we expect to record amortization of investment unit issuance costs of 4 million yen
in the fiscal period ending February 28, 2025 (14th fiscal period).
The total amount of interest-bearing debt is assumed to be 19,715 million yen at the end of thefiscal year ending February 2025 (14th fiscal period). Long-term loans of 4,302 million yen will
become due for repayment in the fiscal year ending February 28, 2025 (14th fiscal period), but
it is assumed that these funds will be procured through loans and other means.
XYMAX REIT expect the LTV to be 40.7% at the end of the fiscal period ending February 2025
(14th period). The following formula was used to calculate the LTV.
LTV = Total amount of interest-bearing debt at the end of the 14th fiscal period ÷ Total amountof assets at the end of the 14th fiscal period × 100
It is assumed that the total number of investment units issued and outstanding as of today is249,650 units, and there will be no change in the number of investment units due to the issuanceof new investment units, until the end of the fiscal period ending February 28, 2025 (14th fiscalperiod).
Distribution per unit (Excluding distributions in excess of earnings) and distributions in excessof earnings per unit are calculated based on the total number of investment units issued andoutstanding at the end of the forecast of the fiscal period ending February 28, 2025 (14th fiscalperiod).
The distribution per unit (excluding distributions in excess of earnings) is calculated on theassumption that it will be distributed in accordance with the cash distribution policy set out in
the Articles of Incorporation of the XYMAX REIT. Furthermore, the calculation is based on theassumption that fluctuations in the market value of interest rate swaps will not affect thedistribution per unit.
Distributions per unit (excluding distributions in excess of earnings) may fluctuate due tovarious factors, including changes in rental income or unforeseen repairs associated withchanges in assets under management and changes in tenants.
There are currently no plans to make distributions in excess of earnings (distributions in excessof earnings per unit).
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.
It is assumed that there will be no unforeseen material change in general economic trends andreal estate market conditions, etc.