November 14, 2016
To All Concerned Parties
REIT Securities Issuer
3-8-11 Kudan Minami, Chiyoda-ku, Tokyo
Sakura Sogo REIT Investment Corporation
Representative: Makoto Muranaka,
Executive Director:(Securities Code 3473)
Asset Management Company:
Sakura Real Estate Funds Management, Inc.
Representative: Makoto Muranaka,
Representative Director andPresident
Inquiries:
Mayumi Kobiki,
Chief Financial Officer
Tel:+81-3-6272-6608

Notice Concerning Revision to Operating and Distribution Forecasts for the Fiscal Periods
Ending February 2017 and August 2017
Sakura Sogo REIT (hereinafter the “Investment Corporation”) announces revision to its operating
forecasts and distribution forecasts for the first fiscal period (from April 1, 2016 to February 28, 2017)
and for the second fiscal period (from March 1, 2017 to August 31, 2017) as follows.
1. Details of revision to operating forecasts and distribution forecasts(1)
Fiscal period ending February 2017 (April 1, 2016 – February 28, 2017)

Previous forecast (A)Revised forecast (B)Increase/decrease（B-A）
Increase/decrease
rate

Distributions
per Unit(Yen)

Distributions
in Excess of
Earnings
per Unit(Yen)

Operatingrevenue(mm yen)Operatingincome(mm yen)Ordinary
income(mm yen)

Net income(mm yen)

2,291
2,280

910
965

101
387

101
387

305
1,164

0
0

-11

55

286

286

859

0

-0.5%

6.0%

283.2%

283.2%

281.6%-(excluding
Distributions in
Excess ofEarnings)(Reference) Fiscal period ending February 2017: Number of investment units forecast to be issued: 333,001 units,
forecast net income per unit: 1,164 yen(2)

Fiscal period ending August 2017 (March 1, 2017 – August 31, 2017)
Operatingrevenue(mm yen)Operatingincome(mm yen)Ordinary
income(mm yen)

Net income(mm yen)Distributions
per Unit(Yen)(excluding
Distributions in
Excess ofEarnings)

Distributions
in Excess of
Earnings
per Unit(Yen)

Disclaimer: This press release is for public announcement in regards to the operating forecasts for the fiscal periods ending February 2017 andAugust 2017 of the Investment Corporation, and has not been prepared for the purpose of solicitation of investment. Investors shallalways refer to the prospectus for issuance of new investment units and for notification of secondary offering of investment units, andamendments thereto, prepared by the Investment Corporation, and undertake any investment in their own decision.
Furthermore, this press release does not constitute an offer of securities in the United States. The investment units have not beenregistered under the United States Securities Act of 1933. The securities may not be offered or sold in the United States absent
registration or an exemption from registration under the United States Securities Act of 1933. In case securities are to be publicly offeredin the United States, prospectus written in English prepared based on the United States Securities Act of 1933 shall be used. In such acase, investors will be able to obtain the English prospectus from the Investment Corporation or the selling agency, and detailed
information on the Investment Corporation and its executive team as well as the financial statements will be provided in the English
prospectus. The securities referred to in this press release will not be publicly offered or sold in the United States.

1Previous forecast (A)Revised forecast (B)Increase/decrease（B-A）
Increase/decrease
rate

2,418
2,419

1,090
1,090

953
953

953
953

2,863
2,863

0
0

1

0

0

0

0

0

0%

0%

0%

0%

0%

-

(Reference) Fiscal period ending August 2017: Number of investment units forecast to be issued: 333,001 units,
forecast net income per unit: 2,863 yen(Note 1) Calculation periods are from March 1 to August 31 and from September 1 to the end of February of thefollowing year for every year. However, the first fiscal period is from April 1, 2016 (date of establishment) to
February 28, 2017. The substantial asset management period in the first fiscal period is from September 9,
2016, which is the property acquisition date, to February 28, 2017 (173 days).
(Note 2) The operating forecasts and distribution forecasts for the fiscal periods ending February 2017 and August
2017 are figures based on currently available information calculated based on the assumptions describedin the attachment “Assumptions for Operating Forecasts for the First Fiscal Period Ending February 2017
and the Second Fiscal Period Ending August 2017.” The actual operating revenue, operating income,ordinary income, net income and distributions per unit excluding distributions in excess of earnings are
subject to change due to factors such as additional acquisition/disposition of real estate, fluctuations in rent
income accompanying changes of tenants, changes in management environment including occurrence of
unexpected repair, fluctuations in interest rates, and issuance of new investment units in the future. In
addition, the Investment Corporation does not guarantee any actual cash distribution amount by announcing
the forecast figures.
(Note 3) The forecasts may be subject to revision when a disparity beyond a certain degree is expected between
the above forecasts and actual figures.
(Note 4) Amounts are rounded down to the nearest specified unit.

2. Reason for the revision to operating forecasts and distribution forecasts
In the process of settling the interim accounts for the fiscal period ending February 2017, it wasdetermined that there would be a 30% or more deviation in ordinary income and net income as well as
a 5% or more deviation in distributions per unit (excluding distributions in excess of earnings) from therespective figures for the fiscal period ending February 2017 announced on September 8, 2016. Thus,
the Investment Corporation revises its operating forecasts and distribution forecasts accordingly. The
main factors for the revision are the 65 million yen decrease expected in operating expenses due to thedecision to record fixed property taxes, city planning taxes, depreciable assets taxes, etc. (hereinafter
the “Fixed Property Taxes, etc.”) for fiscal 2017 as expenses in the fiscal periods ending August 2017
and February 2018 in the finalized amount based on the tax notice which the Investment Corporation isscheduled to receive in March 2017 or later and the 222 million yen decrease expected in non-operating
expenses due to projection that expenses associated with issuance of new investment units, listing ofinvestment units, public offering, etc. will fall below the previous forecasts. The Investment Corporation
also reviews the operating forecasts for the fiscal period ending August 2017 and revises forecast on
operating revenue.

This material is to be distributed to the Kabuto Club, the Ministry of Land, Infrastructure, Transport
and Tourism Press Club, and the Ministry of Land, Infrastructure, Transport and Tourism Press Clubfor Construction Purposes.
Sakura Sogo REIT website address: http://sakurasogoreit.com/en/

Disclaimer: This press release is for public announcement in regards to the operating forecasts for the fiscal periods ending February 2017 andAugust 2017 of the Investment Corporation, and has not been prepared for the purpose of solicitation of investment. Investors shallalways refer to the prospectus for issuance of new investment units and for notification of secondary offering of investment units, andamendments thereto, prepared by the Investment Corporation, and undertake any investment in their own decision.
Furthermore, this press release does not constitute an offer of securities in the United States. The investment units have not beenregistered under the United States Securities Act of 1933. The securities may not be offered or sold in the United States absent
registration or an exemption from registration under the United States Securities Act of 1933. In case securities are to be publicly offeredin the United States, prospectus written in English prepared based on the United States Securities Act of 1933 shall be used. In such acase, investors will be able to obtain the English prospectus from the Investment Corporation or the selling agency, and detailed
information on the Investment Corporation and its executive team as well as the financial statements will be provided in the English
prospectus. The securities referred to in this press release will not be publicly offered or sold in the United States.

2

[Attachment]
Assumptions for Operating Forecasts for the First Fiscal Period Ending February 2017 and theSecond Fiscal Period Ending August 2017
Item
Assumptions

Calculation periodInvestment AssetsOperating revenueOperatingexpenses

Fiscal Period Ending February 2017 (First Fiscal Period) (From April 1, 2016 to
February 28, 2017) (334 days)
Fiscal Period Ending August 2017 (Second Fiscal Period) (From March 1, 2017
to August 31, 2017) (184 days)
With regard to the real estate trust beneficiary interests of the properties (18properties in total) newly acquired on September 9, 2016 (hereinafter the“Currently Owned Assets”), it is assumed that there will be no change (acquisitionof new properties, disposition of portfolio properties, etc.) to the assets through tothe end of the fiscal period ending August 2017.
Change may arise in the event of acquisition of new properties other than the
Currently Owned Assets or disposition of portfolio properties, etc.
Rental revenues from the Currently Owned Assets are calculated based on therents described in the lease agreements that are effective as of today.
The forecast of operating revenues is made on the assumption that no tenants
will delay or default rental payments.
The main items of operating expenses are as follows (rounded down to thenearest specified unit; the same shall apply hereinafter):First Fiscal Period
Second Fiscal Period
Expenses related to
912 million yen
1,124 million yen
leasing business[Total]Management fees
279 million yen
296 million yen
Of which:
202 million yen
214 million yen
Maintenance andmanagement fee
Of which: Property
77 million yen
82 million yen
management fee
Repair expenses
17 million yen
16 million yen
Taxes and dues
0 million yen
202 million yen
Depreciation
240 million yen
243 million yen
Other than expenses
403 million yen
204 million yen
related to leasing
business [Total]
Asset management
108 million yen
128 million yen
fee
Of expenses related to the leasing business of the Currently Owned Assets,
which are the main operating expenses, expenses other than depreciation arecalculated on a historical data basis based on information provided by theprevious owners of the Currently Owned Assets and by reflecting variablefactors.
Repair expenses for buildings are projected to be, based on the repair plans
drawn by the Asset Management Company, 17 million yen for the fiscal period
ending February 2017 and 16 million yen for the fiscal period ending August
2017. However, due to reasons such as repair expenses that may urgently arisefor building damages, etc. caused by unforeseeable factors, the amount

Disclaimer: This press release is for public announcement in regards to the operating forecasts for the fiscal periods ending February 2017 andAugust 2017 of the Investment Corporation, and has not been prepared for the purpose of solicitation of investment. Investors shallalways refer to the prospectus for issuance of new investment units and for notification of secondary offering of investment units, andamendments thereto, prepared by the Investment Corporation, and undertake any investment in their own decision.
Furthermore, this press release does not constitute an offer of securities in the United States. The investment units have not beenregistered under the United States Securities Act of 1933. The securities may not be offered or sold in the United States absent
registration or an exemption from registration under the United States Securities Act of 1933. In case securities are to be publicly offeredin the United States, prospectus written in English prepared based on the United States Securities Act of 1933 shall be used. In such acase, investors will be able to obtain the English prospectus from the Investment Corporation or the selling agency, and detailed
information on the Investment Corporation and its executive team as well as the financial statements will be provided in the English
prospectus. The securities referred to in this press release will not be publicly offered or sold in the United States.

3









Non-operating
expenses

generally varying considerably depending on the fiscal year, and because it is
not an amount that arises periodically, each calculation period’s repair expenses
may differ materially from the forecast amount.
Depreciation calculated using the straight-line method, including incidental
expenses, are projected to be 240 million yen for the fiscal period ending
February 2017 and 243 million yen for the fiscal period ending August 2017
respectively.
Upon acquisition of real estate and other properties, the Investment Corporation
includes the amount equivalent to fixed property taxes, city planning taxes,
depreciable assets taxes, etc. (hereinafter the “Fixed Property Taxes, etc.”) thatare settled with previous owners on a pro rata based on the number of days ofownership in the acquisition cost during the fiscal year of the acquisition. As to
the Fixed Property Taxes, etc. on the owned real estate or trust beneficiaryinterest having real estate as trust assets, the Investment Corporation adopts
the method to record the amount corresponding to the calculation period, out offinalized taxation amount, as expenses related to leasing business.
Of the fees payable to the Asset Management Company, an agreement has
been reached for the NOI-linked fee Asset Management Fee (2)* that the fee
rate shall be 0% until the fiscal period ending August 2017 on the agreementthat it shall be within the upper limit provided in the Articles of Incorporation of
the Investment Corporation. Accordingly, the asset management fee for the
fiscal period ending February 2017 and the fiscal period ending August 2017 islower than the asset management fee to be calculated based on the fee rate tobe applied for the fiscal period ending February 2018 and subsequent fiscal
periods. The amount of difference between the asset management fee for the
fiscal period ending February 2017 and the fiscal period ending August 2017that would be payable if the asset management fee were to be at the fee ratethat would apply to the fiscal period ending February 2018 and subsequentfiscal periods and based on the other assumptions presented herein (estimate
only) and the asset management fee underlying the earnings forecast for eachfiscal period would be approximately 48 million yen for the fiscal period ending
February 2017 and approximately 46 million yen for the fiscal period ending
August 2017.
* Asset Management Fee (2) = The amount arrived at when NOI (the amountarrived at when the total of expenses related to the leasing business (excluding
depreciation and loss on retirement of non-current assets) is subtracted fromthe total of leasing business revenue on the statement of income for the relevant
fiscal period of the Investment Corporation) is multiplied by the fee rate
separately agreed upon between the Investment Corporation and the AssetManagement Company of no more than 3%.
Deferred organization expenses of 51 million yen and expenses associated withissuance of new investment units and listing of investment units of 193 million
yen are projected as one-time expenses for the fiscal period ending February
2017. The deferred organization expenses and expenses associated withissuance of new investment units and listing of investment units are scheduled
to be amortized in a lump sum.
Interest expenses and other borrowing related expenses are projected to be
333 million yen for the fiscal period ending February 2017 and 136 million yen
for the fiscal period ending August 2017.

Disclaimer: This press release is for public announcement in regards to the operating forecasts for the fiscal periods ending February 2017 andAugust 2017 of the Investment Corporation, and has not been prepared for the purpose of solicitation of investment. Investors shallalways refer to the prospectus for issuance of new investment units and for notification of secondary offering of investment units, andamendments thereto, prepared by the Investment Corporation, and undertake any investment in their own decision.
Furthermore, this press release does not constitute an offer of securities in the United States. The investment units have not beenregistered under the United States Securities Act of 1933. The securities may not be offered or sold in the United States absent
registration or an exemption from registration under the United States Securities Act of 1933. In case securities are to be publicly offeredin the United States, prospectus written in English prepared based on the United States Securities Act of 1933 shall be used. In such acase, investors will be able to obtain the English prospectus from the Investment Corporation or the selling agency, and detailed
information on the Investment Corporation and its executive team as well as the financial statements will be provided in the English
prospectus. The securities referred to in this press release will not be publicly offered or sold in the United States.

4




Debt financing
Investment unitsDistribution per Unit
(excludingDistributions in
Excess of Earnings)

Distributions in
Excess ofEarnings per
Unit




Other


The total of interest-bearing liabilities outstanding is assumed to be 30,900
million yen at the end of the fiscal period ending February 2017 and 29,000
million yen at the end of the fiscal period ending August 2017.
Debt financing of 30,900 million yen in total was made on September 9, 2016
from the qualified institutional investors defined under Article 2 Paragraph 3 item
1 of Financial Instruments and Exchange Act.
Regarding the expected refund of consumption taxes associated with theacquisition of the assets to be acquired and payment of various expenses in thefiscal period ending August 2017, it is assumed that the refund will be used as
the source of funds for repayment of borrowings in the amount of 1,000 million
yen during the fiscal period ending August 2017.
LTV at end of the fiscal period ending February 2017 (First Fiscal Period) is
projected to be about 48.6% and LTV at the end of the fiscal period ending
August 2017 (Second Fiscal Period) is projected to be about 46.6%.
The following formula is used in the calculation of LTV.
LTV = Total interest-bearing liabilities ÷ Total assets × 100
It is assumed that there will be no changes in the number of investment units
due to issuance of new investment units, etc. from the 333,0001 units ofinvestment units issued and outstanding as of today through to the end of the
fiscal period ending August 2017.
Distribution per unit (excluding distribution in excess of earnings) is calculatedon the assumption that distribution will be made in accordance with the cash
distribution policy provided in the Articles of Incorporation of the Investment
Corporation.

Distribution per unit (excluding distribution in excess of earnings) may vary
due to various factors, including fluctuations in leasing revenue
accompanying changes in assets under management, changes in tenants
and other events, and occurrence of unexpected repairs.
The Articles of Incorporation of the Investment Corporation enable it to provide
for distribution in excess of earnings, but considering the ratio of capital
expenditures to depreciation and in an aim to conduct conservative financial
management, no distribution in excess of earnings is scheduled to be
implemented for the time being.
Forecasts are based on the assumption there will be no material changes in laws,
regulations, taxation systems, accounting standards, public listing requirements
or rules of the investment trust association that could impact the forecastspresented herein.
Forecasts are based on the assumption there will be no unforeseen materialchanges in general economic and real estate market conditions.

Disclaimer: This press release is for public announcement in regards to the operating forecasts for the fiscal periods ending February 2017 andAugust 2017 of the Investment Corporation, and has not been prepared for the purpose of solicitation of investment. Investors shallalways refer to the prospectus for issuance of new investment units and for notification of secondary offering of investment units, andamendments thereto, prepared by the Investment Corporation, and undertake any investment in their own decision.
Furthermore, this press release does not constitute an offer of securities in the United States. The investment units have not beenregistered under the United States Securities Act of 1933. The securities may not be offered or sold in the United States absent
registration or an exemption from registration under the United States Securities Act of 1933. In case securities are to be publicly offeredin the United States, prospectus written in English prepared based on the United States Securities Act of 1933 shall be used. In such acase, investors will be able to obtain the English prospectus from the Investment Corporation or the selling agency, and detailed
information on the Investment Corporation and its executive team as well as the financial statements will be provided in the English
prospectus. The securities referred to in this press release will not be publicly offered or sold in the United States.

5