Supplementarymaterials
Securities code 3488

Outline of “Notice Concerning the Transfer of Domestic Real Estate
Trust Beneficiary Rights(XYMAX Mita Building)” and“Notice of Revision of Investment Forecast and Distribution Forecast
for the fiscal period ending February 2025(14th Fiscal Period)”
July 29, 2024

Outline of Asset Transfer┃ Key Points of the Transfer┃◼

The profitability of the assets to be transferred has been improved through renovation work and an increase in unit rent.

◼

Achieving the Transfer at a sale price that is 15.4% higher than the appraisal value◼

The distribution per unit is expected to increase by 456 yen compared to the forecast as of April 18, 2024.

◼

Part of the proceeds from the sale will be used for external growth, and we are currently considering acquisition of property and its timing.

┃ Overview of Asset to be Transfer┃XYMAX Mita Building
Transferee
Scheduled transfer date

LocationNot disclosed

Improvement in profitability✓ Focusing on the potential for internal growth through the renovation ofrentable spaces, executing acquisition using bridge-schemes→Renovation work completed on 9 out of 10 floors

September 3, 2024

5-13-11 Shiba, Minato-ku, Tokyo

Construction date

May 31, 1991

Book value(As of February 29, 2024)

704 million yen

Appraised value(As of February 29, 2024)

771 million yen

Scheduled Transfer Price

890 million yen✓

Compared to the beginning of the bridge-scheme, the average unit rent has
increased by about 38.9%✓

Operating at full occupancy since April 2024

The search for a prospective buyer✓✓

Using the network of the sponsor group (XYMAX TRUST Corporation), we
searched for prospective buyer that matches the property characteristics, such as
location and size of the property.

Rentable spaces after renovation

As a result of competition among multiple companies, the sale price exceeded
the appraisal value and book value. The decision to sell was made after
receiving an offer to purchase from the prospective buyer.
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Estimated Distribution per Unit Forecast for the 14th fiscal period
Due to the realization of unrealized gains, we expect the forecast distribution per unit for the 14th fiscal period to increase by 456 yen.
XYMAX REIT continues to maintain high unrealized gains per unit, and we believe there is significant scope for contributing back profits tounitholders through the realization of capital gains in the future.
Distribution forecast forthe 14th Fiscal Period

3,570 yen Per unit

┃ Unrealized gains by property (after the Transfer)┃(Unit: million yen)+456 yen (+14.6%) compared to the forecast on April 18, 2024

14th fiscal period (February 2025) forecast+456 yen(+14.6%)(yen)

Others143

Sendai
1,176(4,710 yen)

Shinjuku Gyoen
2,140(8,572 yen)

Other retails
454

4,000

Others

Effect of theTransfer

Earnings from Asset to beTransferredduring the Period▲593,50019

Existing property
revenue

Non-deductible
Consumption tax

Total unrealized gains▲29Muza
1,544(6,184 yen)

524

3,579

3,000

HotelSeiseki-Sakuragaoka
360(1,442 yen)

Retail11,108

Hachioji994(3,981 yen)

Other offices
865

00
2,500
14th Fiscal Period(February 2025)
Forecast(Disclosed in April 2024)

Iwamotocho
1,505(6,028 yen)million yen

3,570

Kamiyacho
470(1,882 yen) Higashi-Ueno
554(2,219 yen)

3,114

OfficeNishi-Shimbashi
895(3,585 yen)

14th Fiscal Period(February 2025)
Forecast(As of the date of this revision)

Note: The amount in bracket is the unrealized gain per unit for each property.

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Utilization of the Proceeds from the Transfer
We are currently considering ways to use the proceeds from the Transfer to achieve external growth. In addition to the proceedsfrom the Transfer, we will also use cash on hand and borrowings to expand the scale of our assets. In selecting new properties,
we will focus on high earnings growth potential, taking into account the current portfolio's earnings characteristics.
┃Focus points by asset type┃External environment

Future focus

Office✓ Higher costs due to inflation (maintenance, repair work, and utilityexpenses)✓ Rental demand varies by area and property characteristics✓ Transaction yields remain low in metropolitan areas✓ Focus on the investment profitability of properties located in suburban
areas of regional cities and the Tokyo economic area
✓ Utilize the management capability of the sponsor group in leasing,maintenance, and repair work to achieve CF stability and growth

Retail✓ Stability of daily use retail facilities remains unchanged after the COVID19 pandemic✓ Possibility to benefit from inflation effects through percentage rent

✓ Continue to focus on daily use retail facilities with stable sales trends

Hotel✓ Tourism demand including inbound demand has recovered✓ Some hotels are performing better than before the COVID-19 pandemic,
partly due to the effect of yen depreciation✓ Actively consider properties that have revenue upside potential bytapping into tourism demand, including inbound┃Properties under consideration (reference)┃
Location

Asset typeSource

8 central wards ofTokyoOffice (planned)

CRE client of the sponsor groupHirakata, Osaka

Retail property (planned)

CRE client of the sponsor group

Core regional city

Hotel (specialized in stay)Private fund managed by thesponsor group

Regional city

Retail property (leaseholdland)

Sponsor group

Tokyo economic area

OfficeThe Asset Management
Company’s own route

Regional ordinancedesignated cities

Hotel (specialized in stay)Sponsor group

Focused point
Reconstruction needs of CRE clients
Located in favorable locations near train and subway stations, where high demand is expected from tenants
Development projects launched after identifying the needs of CRE clients
Tenants are expected to include daily necessities selling tenants (XYMAX REIT has already acquired preferred investment
securities)
Located in a regional economic hub and also with a high level of tourism resources, there is solid demand foraccommodation
Hotels for rent including those with variable rent
Leasehold land of retail property
Expected daily use type of business with steady sales
Located in work-dwelling areas near train and subway stations, where high demand is expected from tenantsHotels located in regional ordinance-designated cities
Hotels with rent system, including variable rent that offer spacious guest rooms to satisfy tourism demand including
inbound demand4

NotesUnless otherwise noted, the figures in this document are rounded down to the nearest displayed unit, and percentages are rounded to the nearest displayed unit. Therefore, the totals for each
item may not match.
P.3(Note 1) The “effect of the Transfer” is the amount obtained by subtracting The amount after deducting various expenses associated with the transfer from Transfer price of the asset to beTransferred and dividing the result by total number of investment units issued and outstanding at the end of the period (forecast): 249,650 units.
(Note 2) “Earnings from Asset to be Transferred during the Period” refers to the amount of projected earnings for the period from the scheduled transfer date (September 3, 2024) to the endof the 14th fiscal period (February 28, 2025).

(Note 3) “Existing property revenue” refers to the revenue from existing properties excluding the assets to be transferred, which was expected at the time of the announcement of the financial
results for the 12th fiscal period (ending February 2024), and which has changed as per the assumptions in the “Notice of Revision of Investment Forecast and Distribution
Forecast for the fiscal period ending February 2025 (14th Fiscal Period)” disclosed today.
(Note 4) The following abbreviations are used for property names in this document.
Shinjuku Gyoen: XYMAX Shinjuku Gyoen Building, Iwamotocho: XYMAX Iwamotocho Building, Hachioji: XYMAX Hachioji Building,Nishi-Shinbashi: XYMAX NishiShinbashi Building, Higashi-Ueno: XYMAX Higashi Ueno Building, Kamiyacho: XYMAX Kamiyacho Building, Muza: Muza Kawasaki, Seiseki-Sakuragaoka: Vita Seiseki
Sakuragaoka, Sendai: Hotel Vista Sendai

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