(REIT) Interim Financial Report for the Fiscal Period Ending August 2018
REIT Securities Issuer:
Securities Code:
Representative:

April 13, 2018
Listing: Tokyo Stock Exchange
URL: https://xymaxreit.co.jp/

XYMAX REIT Investment Corporation
3488
Nobuhito Inatsuki, Executive Director

Asset Management Company: XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation
Representative:
Nobuhito Inatsuki, Representative Director and President
Contact:
Rie Yamaguchi, Manager of Business Administration Division
TEL: +81‐3‐5544‐6860
Scheduled date for filing of semiannual securities report:

May 31, 2018
None

Supplementary materials for financial results:
Interim financial results briefing session:

1.

None

(Amounts are rounded down to the nearest million yen)
Status of Management and Assets for the Fiscal Period Ending August 2018’s Interim Period(from September 14, 2017 to February 28, 2018)(1) Results of Operations(% figures are the rate of period‐on‐period increase (decrease))
Operating revenue
Operating income
million yen% million yen%

Interim period
ended Feb. 2018

90

‐

51

‐

Ordinary income
million yen
%
(214)

‐

Net income
million yen

%

(215)

‐

Net income per unityenInterim period
ended Feb. 2018
(Note 1)
(Note 2)
(Note 3)(Note 4)

(9,909)At XYMAX REIT Investment Corporation (hereinafter, “XYMAX REIT”), the accounting period for the fiscal period ending August 2018’s
interim period is a period of 168 days from September 14, 2017 to February 28, 2018, but the number of days of the actual asset
management period was a period of 13 days from February 16, 2018.
Net income per unit is calculated by dividing net income by the daily weighted average number of investment units (21,741 units).
Percentage figures for operating revenue, operating income, ordinary income and net income are the rate of period‐on‐period increase(decrease) but are not applicable for the interim period, because it is the first fiscal period.
The ordinary income of ‐214 million yen and net income of ‐215 million yen were attributable to expenses associated with issuance of new
investment units and listing of investment units, etc. totaling 173 million yen expensed in lump sum during the interim accounting period.

(2) Financial Position

Interim period
ended Feb. 2018

Total assets
million yen

Net assets
million yen

36,435Equity ratio%

Net assets per unit
yen

21,30958.5

100,087

Net cashprovided by (used in)operating activities
million yen

Net cashprovided by (used in)investing activities
million yen

Net cashprovided by (used in)financing activities
million yen

Cash andcash equivalents
at end of period
million yen(642)(32,087)

34,8072,078(3) Cash Flows

Interim period
ended Feb. 2018

2.

Operating Forecasts for the Fiscal Period Ending August 2018 (from September 14, 2017 to August 31, 2018) andFiscal Period Ending February 2019 (from September 1, 2018 to February 28, 2019)(% figures are the rate of period‐on‐period increase (decrease))

Operating revenue Operating income

Ordinary income

Net income

Distribution
per unit(excluding
distribution
in excess of
profit)Distribution
in excess of
profitper unit

mn yen% mn yen% mn yen% mn yen%yen
yenFiscal period
1,338
‐
859
‐
516
‐
515
‐
2,309
0
ending Aug. 2018
Fiscal period
1,270
(5.1)
781
(9.1)
733
41.9
732
42.0
3,279
0
ending Feb. 2019
(Reference) Forecast net income per unit
(Forecast net income ÷ Forecast total number of investment units issued and outstanding at end of period)
Fiscal period ending August 2018: 2,309 yen
Fiscal period ending February 2019: 3,279 yen(Note 1)
(Note 2)Distribution per unit (excluding distribution in excess of profit) is calculated based on the fiscal period ending August 2018’s forecast total
number of investment units issued and outstanding at end of period of 223,400 units.
Percentage figures for operating revenue, operating income, ordinary income and net income are the rate of period‐on‐period increase(decrease) but are not applicable for the fiscal period ending August 2018, because it is the first fiscal period.

* Other(1) Changes in Accounting Policies, Accounting Estimates, and Retrospective Restatements
i. Changes in accounting policies accompanying amendments to accounting standards, etc.:
ii. Changes in accounting policies other than i.:iii. Changes in accounting estimates:
iv. Retrospective restatements:

None
None
None
None

(2) Total number of investment units issued and outstandingi. Total number of investment units issued and outstanding (including treasury investment units) at end of period
Interim period ended Feb. 2018
212,905 units

ii. Number of treasury investment units at end of period
Interim period ended Feb. 2018
0 units(Note)For the number of investment units serving as the basis for calculation of net income per unit, please see, “Notes on Per Unit
Information” on page 16.

* Presentation of Status of Implementation of Interim Audit Procedures
At the time of disclosure of this interim financial report, the audit procedures for interim financial statements pursuant to
the Financial Instruments and Exchange Act have not been completed.
* Explanation of Appropriate Use of Operating Forecasts, and Other Matters of Special Note
The operating forecasts and other forward‐looking statements contained in this document are based on information
currently available to and certain assumptions deemed reasonable by XYMAX REIT. Accordingly, the actual results ofoperations, etc. may differ materially due to various factors. In addition, the forecasts are not a guarantee of the amount of
distribution. For the assumptions underlying the operating forecasts, matters of note in the use of the operating forecasts,
etc., please see “Assumptions Underlying the Operating Forecasts for the Fiscal Period Ending August 2018 (from September
14, 2017 to August 31, 2018) and Fiscal Period Ending February 2019 (from September 1, 2018 to February 28, 2019)” on
page 5.
The first fiscal period of XYMAX REIT is from September 14, 2017 to August 31, 2018. An interim settlement of accounts has
been conducted because the fiscal period exceeds nine months. Please note that subsequent fiscal periods of XYMAX REIT
end on the last day of February and the last day of August.

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018
Table of Contents
1. Related Parties of the Investment Corporation ...............................................................................................................................................................2
2. Management Policy and Management Status ..................................................................................................................................................................2(1) Management Policy .............................................................................................................................................................................................................2(2) Management Status .............................................................................................................................................................................................................2(3) Investment Risks ..................................................................................................................................................................................................................6
3. Interim Financial Statements..................................................................................................................................................................................................7(1) Interim Balance Sheet ........................................................................................................................................................................................................7(2) Interim Statement of Income...........................................................................................................................................................................................9(3) Interim Statement of Unitholders’ Equity ............................................................................................................................................................... 10(4) Interim Statement of Cash Flows ................................................................................................................................................................................ 11(5) Notes on the Going Concern Assumption ................................................................................................................................................................ 12(6) Notes on Matters Concerning Significant Accounting Policies ....................................................................................................................... 12(7) Notes to the Interim Financial Statements ............................................................................................................................................................. 13(8) Changes in Total Number of Investment Units Issued and Outstanding .................................................................................................... 17
4. Changes in Directors................................................................................................................................................................................................................ 18(1) Directors of the Investment Corporation ................................................................................................................................................................ 18(2) Directors of the Asset Management Company ...................................................................................................................................................... 18
5. Reference Information ............................................................................................................................................................................................................ 19(1) Investment Status.............................................................................................................................................................................................................. 19(2) Investment Assets ............................................................................................................................................................................................................. 20‐1‐

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018

1. Related Parties of the Investment Corporation
Disclosure is omitted, because there have not been significant changes to the “Structure of the Investment Corporation” inthe securities registration statement (submitted on January 11, 2018, as amended).

2. Management Policy and Management Status(1) Management Policy
Disclosure is omitted, because there have not been significant changes to “Investment Policy,” “Investment Targets” and“Distribution Policy” in the securities registration statement (submitted on January 11, 2018, as amended).
(2) Management Status(Overview of the Interim Period)
I. Brief History of the Investment Corporation
XYMAX REIT was incorporated under the Act on Investment Trusts and Investment Corporations (Act No. 198 of1951, as amended) with XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation (hereinafter, the “AssetManagement Company”) as the organizer and investments in capital of 300 million yen (3,000 units) on September
14, 2017, and completed the registration with the Kanto Local Finance Bureau on October 31, 2017 (Registration
No. 131 with the Director‐General of the Kanto Local Finance Bureau). Later, XYMAX REIT implemented an
issuance of new investment units through public offering (209,905 units) with February 14, 2018 as the payment
due date, and listed on the Real Estate Investment Trust Securities Market of Tokyo Stock Exchange, Inc.
(hereinafter, “Tokyo Stock Exchange”) on February 15, 2018 (securities code: 3488). These resulted in total numberof investment units issued and outstanding of 212,905 units as of the last day of the interim period. In addition,subsequent to the interim period, an issuance of new investment units through third‐party allotment (10,495
units) was implemented on March 20, 2018.
XYMAX REIT utilizes the real estate management (Note 1) strengths of the XYMAX Group (Note 2) to conduct
appropriate portfolio management and thereby maximize the value of real estate with the aim of maximizing
unitholder value.
(Note 1)

(Note 2)

“Real estate management” collectively refers to property management, comprehensive building maintenance services, andcombined property management and comprehensive building maintenance services (including cases where contracted withsuch services in subleasing cases). The same shall apply hereinafter.
“XYMAX Group” refers to the corporate group comprising XYMAX Corporation and its consolidated subsidiaries and affiliates
accounted for using the equity method. The same shall apply hereinafter.

II. Management Environment
In the interim period ended February 2018, the Japanese economy had a strong showing as evident by such factors
as corporate business sentiment continuing to be favorable and also showing steady improvement in theemployment situation and moderate increase in wages. Real GDP growth rate for the period from October toDecember 2017 (second preliminary estimate) was also an increase at an annual rate of 1.6%, marking the eighthconsecutive quarter of positive growth for an outcome indicating resilience.
Under such domestic economic circumstances, the following movements were seen in the markets of office, retailand hotel in which XYMAX REIT mainly invests.
In the office market, the market remained in a strong state with the February 2018 average vacancy rate for the
Tokyo central 5 wards (Chiyoda Ward, Chuo Ward, Minato Ward, Shinjuku Ward and Shibuya Ward) decreasing by
0.04 percentage points month‐on‐month to 3.03% and average asking rent increasing by 162 yen month‐on‐month
to 19,500 yen (both according to Miki Shoji Co., Ltd.). In addition, the same for asking rent went for contract rent
according to the “Contract Rent DI (Tokyo 23 Wards)” (Note) announced by XYMAX REAL ESTATE INSTITUTE
Corporation for the period from October to December 2017 at “+17,” marking the eleventh consecutive quarter ofabove‐zero DI and this upward trend is continuing.
In the retail market, while sales show a slight decrease on a year‐on‐year comparison for some items such as
apparel, household goods, etc., and sales ranged from the same level to slight increase on a year‐on‐yearcomparison for items such as food and services, resulting in sales ranging from the same level to slight increase ona year‐on‐year comparison as a whole.
In the hotel market, according to the Japan Tourism Agency’s Overnight Travel Statistics Survey (2017 (preliminary
report)), the total number of overnight guests increased by 1.2% year‐on‐ year to 498.19 million. Notably, the total
number of international overnight guests setting a new record high of 78.00 million (up 12.4% year‐on‐year) was‐2‐

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018
among other factors serving as drivers of increase in accommodation demand. In this manner, XYMAX REIT’s
management environment was under generally favorable circumstances. On the other hand, however, with the risein long‐term interest rates and mounting protectionism in the U.S. and such, a sense of uncertainty over the futureis also starting to be seen in certain aspects, making it a state that calls for close attention to the impact that thesefactors may have on the future management environment.
(Note)“Contract Rent DI (Diffusion Index) (Tokyo 23 Wards)” is an index based on the data of all‐in contract rent accumulated by the
XYMAX group and calculated as follows: 1) Compare the data of new contract rent per tsubo with that in the prior 6‐month
period in the same building. Each contract is counted separately into three categories: Building with “rent Increase,” “no charge,”
or “rent decrease”
2) Calculate the percentage of buildings with “rent decrease” and buildings with “rent increase”
3) Subtract the percentage of buildings with “rent decrease” from the percentage of buildings with “rent increase”.

Thisoutcome is the Contract Rent Diffusion Index (DI).
For more details of the research findings, please refer to the website of XYMAX Real Estate Institute Corporation(https://soken.xymax.co.jp/)

III. Management Status
The 12 properties in the portfolio as of the last day of the interim period were acquired for 33,040 million yen in
total on February 16, 2018. Accordingly, the actual asset management period during the interim period was 13 days.
Furthermore, as of the last day of the interim period, the 12 properties in the portfolio had a total leasable area of
72,701.04m2, total leased area of 71,887.06m2 and occupancy rate of 98.9%.
IV. Financing Status(Equity Financing)In the interim period, 21,224 million yen was procured in funds from implementing an issuance of investment unitsof 209,905 units with February 14, 2018 as the payment due date. As a result, as of the last day of the interim
period (February 28, 2018), unitholders’ capital was 21,524 million yen.
(Debt Financing)In the interim period, through a loan syndicate with Mizuho Bank, Ltd. as the arranger, 13,320 million yen wasborrowed from Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, The Bank of Tokyo‐Mitsubishi UFJ, Ltd.
(now, MUFG Bank, Ltd.), The Nishi‐Nippon City Bank, Ltd., The Bank of Fukuoka, Ltd., Resona Bank, Limited, The
Hiroshima Bank, Ltd., The Hokkaido Bank, Ltd., Shinsei Bank, Limited, Aozora Bank, Ltd., The Chiba Bank, Ltd., The
Higo Bank, Ltd. and Fukoku Mutual Life Insurance Company on February 16, 2018. As a result, as of the last day of
the interim period (February 28, 2018), the balance of loans outstanding was 13,320 million yen and the ratio ofloans to total assets (hereinafter, “LTV ratio”) was 36.6%.
V. Overview of Business Performance
Business performance in the interim period resulted in operating revenue of 90 million yen, operating income of 51
million yen, ordinary income of ‐214 million yen and net income of ‐215 million yen. Please note that expenses
associated with issuance of new investment units and listing of investment units, etc. totaling 173 million yen werecounted as expenses in lump sum.
(Future Outlook)
I. General Management Outlook(A) External Growth Strategy
Capture wide range of real estate disposition needs through real estate management customer base
XYMAX REIT captures real estate disposition needs from the customer base of the XYMAX Group based on asponsor support agreement with sponsor XYMAX Corporation with the aim to lead such needs to property
acquisition opportunities for XYMAX REIT.
(B) Internal Growth Strategy
Utilization of the real estate management insight and know‐how and network of the XYMAX GroupThrough the sponsor support agreement with XYMAX Group, XYMAX REIT is provided with various real estate
management insight, know‐how, databases, management systems, private fund management experience, etc. On
this basis, XYMAX REIT can and will perform stable and efficient management.
‐3‐

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018
(C) Financial Strategy
Financial management with emphasis on stability and soundness, and LTV ratio control
XYMAX REIT shall execute a financial strategy that places emphasis on stability and soundness and secure agility infund procurement, taking into consideration the securing of stable revenue over the medium to long term, steady
growth in size of assets under management and stability of management.
II. Significant Subsequent Events
As approved at meetings of the Board of Directors of XYMAX REIT held on January 11, 2018 and February 6, 2018,
XYMAX REIT issued new investment units through third‐party allotment under the following terms and conditions,for which payment was completed on March 20, 2018, subsequent to the last day of the interim period.
Furthermore, the proceeds from the issuance of new investment units through third‐party allotment were used as
funds for loan repayment (1,060 million yen). As a result, XYMAX REIT has unitholders’ capital of 22,585,746,000
yen and total number of investment units issued and outstanding of 223,400 units.
(Issuance of New Investment Units through Third‐Party Allotment)
Number of new investment units issued:
10,495 units
Paid‐in amount:
101,115 yen per unit
Total paid‐in amount:
1,061,201,925 yen
Payment due date:
March 20, 2018
Allottee:
SMBC Nikko Securities Inc.
III. Operating Forecasts
XYMAX REIT’s operating forecasts for the fiscal period ending August 2018 (from September 14, 2017 to August 31,2018) and fiscal period ending February 2019 (from September 1, 2018 to February 28, 2019) are as follows:
Distribution
Distribution
per unit
in excess of(excluding
OperatingOperating
Ordinary
Net income
profitdistribution
revenueincomeincomeper unit
in excess of
profit)million yen
million yen
million yen
million yen
yenyen
Fiscal period
1,338
859
516
515
2,309
0
ending Aug. 2018
Fiscal period
1,270
781
733
732
3,279
0
ending Feb. 2019
Furthermore, for the assumptions underlying the operating forecasts, please refer to “Assumptions Underlying the
Operating Forecasts for the Fiscal Period Ending August 2018 (from September 14, 2017 to August 31, 2018) andFiscal Period Ending February 2019 (from September 1, 2018 to February 28, 2019)” presented later in thisdocument.
(Note)

The forecast figures above are the current forecast figures calculated under certain assumptions. Accordingly, the actual operating
revenue, operating income, ordinary income, net income, distribution per unit and distribution in excess of profit per unit may vary
due to changes in the circumstances. In addition, the forecasts are not a guarantee of the amount of distribution.

(Reference)
Operating forecasts for the fiscal period ending August 2019 (from March 1, 2019 to August 31, 2019)
Distribution
Distribution
per unit
in excess of(excluding
OperatingOperating
Ordinary
Net income
profitdistribution
revenueincomeincomeper unit
in excess of
profit)million yen
million yen
million yen
million yen
yenyen
Fiscal period
1,277
698
652
651
2,917
0
ending Aug. 2019
Furthermore, for the assumptions underlying the operating forecasts, please refer to “Notice Concerning Operating
Forecasts for the Fiscal Period Ending August 2018, Fiscal Period Ending February 2019 and Fiscal Period Ending
August 2019” dated February 15, 2018.
‐4‐

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018
Assumptions Underlying the Operating Forecasts for the Fiscal Period Ending August 2018 (from September 14, 2017 toAugust 31, 2018) and Fiscal Period Ending February 2019 (from September 1, 2018 to February 28, 2019)
Item
Accounting
periodAssets undermanagement

Operatingrevenue

Assumption
 Fiscal period ending August 2018 (1st fiscal period) (from September 14, 2017 to August 31, 2018)(352 days)
 Fiscal period ending February 2019 (2nd fiscal period) (from September 1, 2018 to February 28,2019) (181 days) The assumption is that the real estate trust beneficiary rights held by XYMAX REIT as of today (totalof 12 properties) (hereinafter, the “current portfolio assets”) will continue to be held and there will beno acquisition of new properties other than the current portfolio assets through to the end of the
fiscal period ending February 2019 (2nd fiscal period).
 Change may arise due to acquisition of new properties other than the current portfolio assets,
disposition of the current portfolio assets, etc.
 Operating revenue from leasing is calculated on the basis of various factors, such as the content oflease agreements entered into for the current portfolio assets and past tenant and market trends, andby taking into account various factors, such as the assumed occupancy rate and rent fluctuation
projections based on tenant move‐in/move‐out and rent level projections.
 Variable rent is calculated on the basis of mainly the forecast operating figures submitted by theoperator and based on the method of calculation provided in the lease agreement.
[Hotel Vista Sendai]
Fixed rent:Monthly amount of 20.0 million yen
Variable rent: (i) From contract commencement to August 2018: None(ii) From September 2018 to February 2019: Monthly amount of 4.7 million yen(iii)From March 2019: The monthly variable rent shall be the amount equal to the total
variable rent received by the lessee from the sublessee (hereinafter, “variable rent
from subtenant” (Note)) in the past 12 months, including said month, divided by 12(Note)



Operatingexpenses








“Variable rent from subtenant” refers to the amount calculated by multiplying gross sales from the hotel
operations of the sublessee by a certain percentage. Actual effective percentage is not disclosed, because
consent for disclosure has not been obtained from the sublessee.

Fiscal period
Fiscal period
ending Feb. 2019
ending Aug. 2018
(2nd fiscal period)(1st fiscal period)
Variable rent
0 million yen
28 million yen
The assumption is that there will be no delinquent or unpaid rent by tenants and no gain (loss) on
sales of real estate properties.
Of operating expenses, the main components are as follows (rounded down to the nearest specified
unit; the same shall apply hereinafter):
Fiscal period
Fiscal period
ending Feb. 2019
ending Aug. 2018
(2nd fiscal period)(1st fiscal period)
Expenses related to rent business [Total]
346 million yen
367 million yen
Management fee
86 million yen
80 million yen
Of which: Maintenance fee
62 million yen
58 million yen
Of which: Property management fee
24 million yen
22 million yen
Repair expenses
38 million yen
35 million yen
Property taxes
0 million yen
43 million yen
Depreciation
126 million yen
120 million yen
Other than expenses related to rent business [Total]
132 million yen
122 million yen
Asset management fee
85 million yen
77 million yen
Expenses related to rent business, which are the main operating expenses, are calculated on the basisof 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 inclusive of incidental expenses, etc.
In general, fixed property tax, city planning tax, etc. are calculated on a pro rata basis and reimbursed
at the time of acquisition with the current owner upon transactions of real estate, etc. At XYMAX REIT,
the amount equivalent to the reimbursement is included in the cost of acquisition and thus not
expensed in the period of acquisition. Therefore, in the case of the current portfolio assets, the 2018
fixed property tax, city planning tax, etc. are not expensed, while a portion of the 2019 fixed asset tax,
etc. (the amount corresponding to the period from January 1, 2019 to the last day of the accounting
period) is to be expensed in the fiscal period ending February 2019 (2nd fiscal period).
Repair expenses are the amount necessary in each fiscal period as assumed on a property‐by‐property basis by the Asset Management Company. However, repair expenses possibly increasing inamount or additionally arising from unforeseeable factors, the amount generally tending to varymaterially from fiscal year to fiscal year and not being an amount that arises periodically, etc. may
result in repair expenses for each fiscal period differing materially from the forecast amount.
‐5‐

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018

Non‐operating
expenses

Interest‐bearing
liabilities

Investment units

Distribution
per unit(excluding
distribution
in excess of
profit)Distribution
in excess of profit
per unit For the fiscal period ending August 2018 (1st fiscal period), non‐operating expenses are assumed to
be 342 million yen, of which interest expenses and other borrowing related expenses are estimated to
be 146 million yen and, as one‐time expenses for the fiscal period ending August 2018 (1st fiscal
period), XYMAX REIT’s deferred organization expenses, etc. are assumed to be 196 million yen.
 For the fiscal period ending February 2019 (2nd fiscal period), interest expenses and other borrowing
related expenses are assumed to be 47 million yen.
 The assumption is that total interest‐bearing liabilities will be 12,260 million yen at the end of the
fiscal period ending August 2018 (1st fiscal period) and 11,680 million yen at the end of the fiscal
period ending February 2019 (2nd fiscal period).
 On February 16, 2018, XYMAX REIT borrowed a total amount of 13,320 million yen from qualified
institutional investors as provided in Article 2, Paragraph 3, Item 1 of the Financial Instruments andExchange Act. A 1,060 million yen portion of this was repaid using the proceeds from the issuance of
new investment units through third‐party allotment implemented on March 20, 2018 as the source offunds and, with refund of consumption taxes corresponding to the fiscal period ending August 2018
(1st fiscal period) scheduled to take place during the fiscal period ending February 2019 (2nd fiscal
period), the assumption is that the concerned refund, etc. will be used as the source of funds to repay
a portion of the loans during the fiscal period ending February 2019 (2nd fiscal period).
 LTV ratio is expected to be 33.5% at the end of the fiscal period ending August 2018 (1st fiscal period)and 32.2% at the end of the fiscal period ending February 2019 (2nd fiscal period). In addition, thefollowing formula is used in the calculation of LTV ratio.
LTV ratio = Total interest‐bearing liabilities ÷ Total assets × 100
 The assumption is the total number of investment units issued and outstanding as of today of 223,400
units and that there will be no change in the number of investment units due to issuance of new
investment units, etc. through to the end of the fiscal period ending February 2019 (2nd fiscal
period).
 Distribution per unit (excluding distribution in excess of profit) and distribution in excess of profit
per unit are calculated on the basis of the forecast total number of investment units issued andoutstanding at the end of the fiscal period ending August 2018 (1st fiscal period) and fiscal period
ending February 2019 (2nd fiscal period) of 223,400 units.
 Distribution per unit (excluding distribution in excess of profit) is calculated based on the assumptionthat distribution will be in accordance with the cash distribution policy provided in XYMAX REIT’s
Articles of Incorporation.
 Distribution per unit (excluding distribution in excess of profit) may vary due to various factors, suchas fluctuation in rent revenue accompanying change in assets under management, change in tenants,
etc. or incurrence of unexpected repairs.
 No cash distribution in excess of profit (distribution in excess of profit per unit) is scheduled to bemade at this point in time.

 The assumption is that there will be no revision of laws and regulations, tax systems, accounting
Otherstandards, listing regulations provided by Tokyo Stock Exchange, rules provided by The Investment
Trusts Association, Japan, etc. that will impact the forecast figures above.
 The assumption is that there will be no unforeseen material change in general economic trends, realestate market conditions, etc.

(3) Investment Risks
Disclosure is omitted, because there is no significant change from “Investment Risks” in the securities registration
statement (submitted on January 11, 2018, as amended).

‐6‐

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018

3. Interim Financial Statements(1) Interim Balance Sheet(Unit: thousand yen)
1st interim period(As of Feb. 28, 2018)
AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Non‐current assets
Property, plant and equipment
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Land in trust
Total property, plant and equipment
Investments and other assets
Long‐term prepaid expenses
Lease and guarantee deposits
Other
Total investments and other assets
Total non‐current assets
Total assets

706,673
1,371,433
18,74327,523630,051
7,339
2,761,765

108,288(1,006)107,2818,848,149(7,286)
8,840,863
45,500(55)
45,44524,601,597
33,595,187
53,07822,6003,170
78,84933,674,036
36,435,802‐7‐

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018

(Unit: thousand yen)
1st interim period(As of Feb. 28, 2018)
Liabilities
Current liabilities
Operating accounts payable
Short‐term loans payable
Accounts payable ‐ other
Advances received
Other
Total current liabilities
Non‐current liabilities
Long‐term loans payable
Tenant leasehold and security deposits in trust
Total non‐current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets‐8‐

159,734
3,976,000
307,384
140,850
8,409
4,592,378
9,344,000
1,190,315
10,534,315
15,126,694

21,524,544*1(215,435)(215,435)
21,309,108
21,309,108
36,435,802

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018(2) Interim Statement of Income(Unit: thousand yen)
1st interim period
From: Sept. 14, 2017
To: Feb. 28, 2018
Operating revenue
Lease business revenue
Other lease business revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensations
Other operating expenses
Total operating expenses
Operating income
Non‐operating income
Interest income
Total non‐operating income
Non‐operating expenses
Interest expenses
Borrowing related expenses
Investment unit issuance expenses
Deferred organization expenses
Business commencement expenses
Total non‐operating expenses
Ordinary income (loss)
Income (loss) before income taxes
Income taxes ‐ current
Total income taxes
Net income (loss)
Unappropriated retained earnings (undisposed loss)*1*1

88,553
1,999
90,553*1

20,958
5,646
107
2,414
2,400
7,803
39,331
51,2226
6
2,156
90,78892,46272,0008,753
266,160(214,931)(214,931)504
504(215,435)(215,435)‐9‐

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018(3) Interim Statement of Unitholders’ Equity
1st interim period (from September 14, 2017 to February 28, 2018)(Unit: thousand yen)

Unitholders’ equity
Surplus
Unitholders’ capital

Unappropriatedretained earnings(undisposed loss)‐‐

Balance as of
September 14, 2017
Changes of items
during period
Issuance of new
investment units‐

21,524,544

Net income (loss)
Total changes during
periodBalance as ofFebruary 28,2018

Total
unitholders’ equity

Total
surplus*1

Total
net assets‐‐

21,524,544

21,524,544(215,435)(215,435)(215,435)(215,435)

21,524,544(215,435)(215,435)

21,309,108

21,309,108

21,524,544(215,435)(215,435)

21,309,108

21,309,108‐ 10 ‐

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018(4) Interim Statement of Cash Flows(Unit: thousand yen)
1st interim period
From: Sept. 14, 2017
To: Feb. 28, 2018
Cash flows from operating activities
Income (loss) before income taxes
Depreciation
Investment unit issuance expenses
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes refund receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable ‐ other
Increase (decrease) in advances received
Decrease (increase) in long‐term prepaid expenses
Decrease (increase) in other assets(214,931)
8,348
92,462(6)
2,156(18,743)(630,051)(27,523)
11,91848,196140,850(53,078)(7,339)

Increase (decrease) in other liabilities

7,672

Subtotal(640,070)

Interest income received
Interest expenses paid
Income taxes paid

6
(1,988)(1)

Net cash provided by (used in) operating activities(642,052)

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of property, plant and equipment in trust
Proceeds from tenant leasehold and security deposits in trust
Payments for lease and guarantee deposits
Other, net(108,288)(33,143,257)
1,190,315(22,600)(3,170)Net cash provided by (used in) investing activities(32,087,000)

Cash flows from financing activities
Increase in short‐term loans payable
Proceeds from long‐term loans payable
Proceeds from issuance of investment units

3,976,000
9,344,000
21,487,161

Net cash provided by (used in) financing activities

34,807,161

Net increase (decrease) in cash and cash equivalents

2,078,107

Cash and cash equivalents at beginning of period‐

Cash and cash equivalents at end of period*1‐ 11 ‐

2,078,107

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018(5) Notes on the Going Concern Assumption
Not applicable.
(6) Notes on Matters Concerning Significant Accounting Policies
1.

Method of depreciation (1) Property, plant and equipment (including trust assets)of non‐current assets
The straight‐line method is adopted.
Furthermore, the useful life of core property, plant and equipment is as follows:
Buildings
3–63 years
Structures
13–51 years
Tools, furniture and fixtures
2–13 years(2) Long‐term prepaid expenses
The straight‐line method is adopted.

2.

Accounting fordeferred assets(1) Deferred organization expenses
The entire amount is expensed as incurred.
(2) Business commencement expenses
The entire amount is expensed as incurred.
(3) Investment unit issuance expenses
The entire amount is expensed as incurred.

3.

Standards forrevenue and expense
recognition

Accounting for fixed property tax, etc.
For fixed property tax, city planning tax, depreciable property tax, etc. on real estate or

4.

Method ofhedge accounting(1) Hedge accounting approach
Special accounting is adopted for interest rate swaps that meet the requirements
for special treatment.
(2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transaction
Hedged items:
Interest on loans(3) Hedging policy
XYMAX REIT conducts derivative transactions for the purpose of hedging the risks
provided in its Articles of Incorporation based on its risk management policy.
(4) Method of assessing the effectiveness of hedging
The assessment of the effectiveness is omitted for interest rate swaps that meet therequirements for special treatment.

5.

Scope of funds in theinterim statement ofcash flows

The funds (cash and cash equivalents) in the interim statement of cash flows comprise
cash on hand and cash in trust, demand deposits and bank deposits in trust, and short‐term investments with a maturity of 3 months or less from the date of acquisition thatare readily convertible to cash and that are subject to a low risk of changes in value.

6.

Other significant(1) Accounting for trust beneficiary rights that have real estate, etc. as trust assets
matters serving as theConcerning trust beneficiary rights that have real estate, etc. as trust assets held, allbasis for preparation of
accounts of assets and liabilities within trust assets and all accounts of revenue andthe interim financial
expenses from the trust assets are recognized in the relevant account item of thestatementsinterim balance sheet and the interim statement of income.
Furthermore, the following material items of the trust assets recognized in therelevant account item are separately listed on the interim balance sheet.
(i) Cash and bank deposits in trust

trust beneficiary rights that have real estate as trust assets held, the accounting is that,of the tax amount assessed and determined, the amount corresponding to the interim
period is expensed as expenses related to rent business.
Furthermore, the amount equivalent to fixed property tax, etc. in the initial fiscal year
borne by XYMAX REIT upon acquisition of real estate or trust beneficiary rights thathave real estate as trust assets is not recognized as expenses but included in the cost of
acquisition of the concerned real estate, etc. In the interim period, the amountequivalent to fixed property tax, etc. included in the cost of acquisition of real estate, etc.
was 229 million yen.

‐ 12 ‐

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018(ii) Buildings in trust; Structures in trust; Land in trust(iii) Tenant leasehold and security deposits in trust(2) Accounting for consumption tax, etc.
The accounting for consumption tax and local consumption tax is that the taxes are
excluded from transaction amounts. Furthermore, non‐deductible consumption tax,
etc. on acquisition of assets is included in the cost of acquisition of each asset.
(7) Notes to the Interim Financial Statements[Notes to the Interim Balance Sheet]*1. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations
1st interim period(As of Feb. 28, 2018)
50,000 thousand yen[Notes to the Interim Statement of Income]*1. Breakdown of operating income (loss) from real estate leasing(Unit: thousand yen)
1st interim period
From: Sept. 14, 2017
To: Feb. 28, 2018
A. Operating revenue from real estate leasing
Lease business revenue
Rent revenue
Common area maintenance revenue

76,527
12,025

Other lease business revenue
Utility reimbursement
Parking revenue
Other rental revenue

15
1,875
109

Total operating revenue from real estate leasing
B. Operating expenses from real estate leasing
Expenses related to rent business
Maintenance fee
Property management fee
Utility expenses
Ground rent
Repair expenses
Insurance premium
Trust fee
Depreciation
Other expenses related to rent business

88,553

1,999
90,553

4,462
2,824
1,764
325
2,047
183
398
8,348
604

20,958

Total operating expenses from real estate leasing

20,958

C. Operating income (loss) from real estate leasing [A‐B]

69,594[Notes to the Interim Statement of Unitholders’ Equity]*1. Total number of investment units authorized and total number of investment units issued and outstanding
1st interim period
From: Sept. 14, 2017
To: Feb. 28, 2018
Total number of investment units authorized

5,000,000 units

Total number of investment units issued and outstanding‐ 13 ‐

212,905 units

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018
[Notes to the Interim Statement of Cash Flows]*1. Reconciliation of cash and cash equivalents at end of period to the amount of interim balance sheet items(Unit: thousand yen)
1st interim period
From: Sept. 14, 2017
To: Feb. 28, 2018
Cash and bank deposits
Cash and bank deposits in trust

706,673
1,371,433

Cash and cash equivalents

2,078,107[Notes on Lease Transactions]Not applicable.
[Notes on Financial Instruments]
Matters concerning fair value, etc. of financial instruments
The following are the carrying amount and fair value as of February 28, 2018, and the amount of difference between
these.
Carrying amount(thousand yen)

Fair value(thousand yen)Amount of difference(thousand yen)

706,673
1,371,433

706,673
1,371,433‐‐

2,078,107

2,078,107‐

3,976,000
9,344,000

3,976,000
9,411,887‐
67,887

13,320,000

13,387,887

67,887‐(4,011)(4,011)(1) Cash and bank deposits(2) Cash and bank deposits in trust
Total assets(1) Short‐term loans payable(2) Long‐term loans payable
Total liabilities
Derivative transactions(Note 1) Method of calculation of the fair value of financial instruments and matters concerning derivative transactions
Assets(1) Cash and bank deposits; (2) Cash and bank deposits in trust
Because these are settled in a short period of time, the fair value is approximately the same as the book value andthus stated at that book value.
Liabilities(1) Short‐term loans payable
Because these are settled in a short period of time and have floating interest rates, the fair value is approximately thesame as the book value and thus stated at that book value.
(2) Long‐term loans payable
Of long‐term loans payable, because those with floating interest rates reflect market interest rates in a short period oftime, the fair value is thought to resemble the book value and thus stated at that book value. However, in the case oflong‐term loans payable with floating interest rates that qualify for special treatment for interest rate swaps (pleaserefer to “Notes on Derivative Transactions” presented later in this document) and long‐term loans payable with fixedinterest rates, the fair value is calculated based on the present value of their future cash flows discounted by the time
to maturity and rate adjusted for credit risks.
Derivative transactions
Please refer to “Notes on Derivative Transactions” presented later in this document.
(Note 2) Financial instruments for which estimation of fair value is recognized to be extremely difficult(Unit: thousand yen)
1st interim period(As of Feb. 28, 2018)
Tenant leasehold and security deposits in trust

1,190,315* Tenant leasehold and security deposits in trust are not subject to disclosure of fair value, because there being no market price and, even if thelease contract period has been set, there being the possibility of contract cancellation before expiration or contract extension or renewal
make calculating the actual deposit period impossible and reasonable projection of future cash flows is thus recognized to be extremely
difficult.

‐ 14 ‐

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018
[Notes on Securities]
Not applicable.
[Notes on Derivative Transactions]
1. Derivative transactions to which hedge accounting is not applied
Not applicable.
2. Derivative transactions to which hedge accounting is applied
The following is the contract amount or the amount equivalent to the principal provided in the contract, etc. for theinterim period for each hedge accounting approach.
(Unit: thousand yen)
Hedge accounting
approach

Type, etc. of
derivative transactionMainhedgeditem

Special treatmentforinterest rate swaps

Interest rate swap
transaction(receive floating; pay fixed)

Long‐term
loans
payableContract amount, etc. (Note 1)(Note 1)

Contract amount, etc. is based on notional principal.

(Note 2)

Fair value is calculated based on the price quoted by financial institutions.

Of which,due after 1 year
2,336,000

Fair value(Note 2)

2,336,000(4,011)[Notes on Share of Income of Entities Accounted for Using Equity Method, Etc.]
Not applicable.
[Notes on Asset Retirement Obligations]Not applicable.
[Notes on Segment Information, Etc.]
1. Segment information
Segment information is omitted, because XYMAX REIT has a single segment, which is the real estate leasing business.
2. Related information
1st interim period (from September 14, 2017 to February 28, 2018)(1) Information by product and service
Information by product and service is omitted, because operating revenue to external customers for a single
products and services category is in excess of 90% of operating revenue on the interim statement of income.
(2) Information by geographic area(i) Operating revenue
Information by geographic area of operating revenue is omitted, because operating revenue to externalcustomers in Japan is in excess of 90% of operating revenue on the interim statement of income.
(ii) Property, plant and equipment
Information by geographic area of property, plant and equipment is omitted, because the amount ofproperty, plant and equipment located in Japan is in excess of 90% of the amount of property, plant andequipment on the interim balance sheet.
(3) Information by major customer(Unit: thousand yen)
Name of customer

Operating revenue

New Urban Life Holdings Inc.

Not disclosed (Note)XYMAX Corporation(Note)

Related segment
Real estate leasing business
12,795

Real estate leasing businessNot disclosed due to unavoidable circumstances in that consent for disclosure has not been obtained from the lessee.

‐ 15 ‐

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018
[Notes on Investment and Rental Properties]XYMAX REIT owns office, retail, hotel, residential and other properties for the purpose of earning revenue fromleasing. The carrying amount, amount of increase (decrease) during period and fair value of these investment andrental properties are as follows:(Unit: thousand yen)
1st interim period
From: Sept. 14, 2017
To: Feb. 28, 2018
Carrying amount
Balance at beginning of period‐

Amount of increase (decrease) during period

33,595,187

Balance at end of period

33,595,187

Fair value at end of period

41,253,000(Note 1)

Carrying amount is the amount of cost of acquisition, less accumulated depreciation.

(Note 2)Of the amount of increase (decrease) during period, the amount of increase is mainly attributable to acquisition of real estate
trust beneficiary rights of 12 properties (33,603,535 thousand yen), while the amount of decrease is mainly attributable to(Note 3)depreciation (8,348 thousand yen).
Fair value at end of period is the appraisal value by an outside real estate appraiser. The date of value is November 30, 2017.

The income (loss) concerning investment and rental properties is presented in “Notes to the Interim Statement of
Income.”[Notes on Per Unit Information]
1st interim period
From: Sept. 14, 2017
To: Feb. 28, 2018
Net assets per unit

100,087 yen

Net income (loss) per unit
(Note 1)

(Note 2)

(9,909 yen)

Net income (loss) per unit is calculated by dividing net income (loss) by the period’s daily weighted average number ofinvestment units.
In addition, diluted net income (loss) per unit is not stated, because there are no diluted investment units.
The basis for calculation of net income (loss) per unit is as follows:

1st interim period
From: Sept. 14, 2017
To: Feb. 28, 2018
Net income (loss) (thousand yen)

(215,435)

Amount not attributable to common unitholders (thousand yen)‐

Net income (loss) attributable to common investment units (thousandyen)(215,435)

Average number of investment units during period (units)

21,741[Notes on Significant Subsequent Events]
Payment for the issuance of new investment units through third‐party allotment approved at meetings of the Board of
Directors of XYMAX REIT held on January 11, 2018 and February 6, 2018 was completed on March 20, 2018. As aresult, XYMAX REIT has unitholders’ capital of 22,585,746,000 yen and total number of investment units issued andoutstanding of 223,400 units.
(Issuance of New Investment Units through Third‐Party Allotment)
Number of new investment units issued:
10,495 units
Paid‐in amount:
101,115 yen per unit
Total paid‐in amount:
1,061,201,925 yen
Payment due date:
March 20, 2018
Allottee:
SMBC Nikko Securities Inc.
‐ 16 ‐

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018
The proceeds from the issuance of new investment units were used to make early loan repayment on March 20, 2018
in the amount of 1,060,000,000 yen (drawdown date: February 16, 2018; maturity date: January 31, 2019).
(8) Changes in Total Number of Investment Units Issued and Outstanding
Changes in unitholders’ capital and the total number of investment units issued and outstanding from the incorporationof XYMAX REIT to the last day of the interim period under review (February 28, 2018) are as follows:

Date

Sept. 14, 2017
Feb. 14, 2018
(Note 1)
(Note 2)

Description
Incorporation throughprivate placement
Capital increase throughpublic offering

Total number of investment units
issued and outstanding(units)Increase
Balance(Decrease)

Unitholders’ capital(thousand yen)
Increase(Decrease)

Remarks

Balance

3,000

3,000

300,000

300,000(Note 1)

209,905

212,905

21,224,544

21,524,544(Note 2)

Investment units were issued at a paid‐in amount of 100,000 yen per unit upon the incorporation of XYMAX REIT.
New investment units were issued through public offering at an issue price of 105,000 yen (paid‐in amount of 101,115 yen) per unit.

‐ 17 ‐

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018

4. Changes in Directors(1) Directors of the Investment Corporation
There were no changes in directors in the interim period.
(2) Directors of the Asset Management Company
There were no changes in directors in the interim period.

‐ 18 ‐

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018

5. Reference Information(1) Investment Status

Type of asset(Note 1)

Total amount held(million yen)
(Note 2)

As a percentage of
total assets(%) (Note 3)

Tokyo central 5 wards

14,370

39.4

Tokyo 23 wards

1,164

3.2

Tokyo economic area

2,629

7.2

RetailTokyo economic area

8,132

22.3

Hotel

Cabinet order designated cities

4,463

12.3

Other

Cabinet order designated cities

OfficeReal estatein trust

Geographic area
(Note 1)Use

1st interim period
As of Feb. 28, 2018

2,833

7.8

Total real estate in trust

33,59592.2

Deposits and other assets

2,840

7.8

Total assets

36,435100.0“Tokyo central 5 wards” refers to Tokyo’s Chiyoda Ward, Chuo Ward, Minato Ward, Shinjuku Ward and Shibuya Ward.
“Tokyo economic area” refers to Tokyo excluding the Tokyo central 8 wards (refers to Tokyo’s Chiyoda Ward, Chuo Ward, Minato
Ward, Shinjuku Ward, Shibuya Ward, Toshima Ward, Taito Ward and Shinagawa Ward), Kanagawa Prefecture, Chiba Prefecture andSaitama Prefecture.

(Note 2)

“Total amount held” is based on the interim balance sheet (in the case of real estate in trust, the depreciated book value) as ofFebruary 28, 2018, rounded down to the nearest million yen. Furthermore, the total amount held for real estate in trust with hotel as
the use includes the book value of movables incidental to hotels.

(Note 3)“As a percentage of total assets” is rounded to one decimal place.

1st interim period
As of Feb. 28, 2018
Amount(million yen)
(Note 1)

As a percentage of
total assets(%) (Note 2)

Total liabilities

15,126

41.5

Total net assets

21,30958.5

Total assets

36,435100.0(Note 1)

The total liabilities, total net assets and total assets amounts are based on the carrying amount as of February 28, 2018, rounded
down to the nearest million yen.

(Note 2)

“As a percentage of total assets” is rounded to one decimal place.

‐

19 ‐

XYMAX REIT Investment Corporation (3488) Interim Financial Report for the Fiscal Period Ending August 2018

Classification(2) Investment Assets
Itemization of Real Estate and Other Assets in the Portfolio
The assets held by XYMAX REIT (real estate or trust beneficiary rights that have real estate as trust assets; hereinafter,
may be collectively referred to as the “portfolio assets”) as of February 28, 2018 are as follows:

Asset no.
(Note 1)

OF‐01
OF‐02

Office

OF‐03
OF‐04
OF‐05
OF‐06
OF‐07

Asset name

XYMAX
Nishi‐Shimbashi
Building
XYMAX
Iwamotocho
Building
XYMAX
Shinjuku‐Gyoen
Building
XYMAX
Kamiyacho
Building
XYMAX
Higashi‐Azabu
Building
XYMAX
Higashi‐Ueno
Building
XYMAX
Hachioji
Building

RetailSubtotal/Average

Hotel

LocationBook value
at end ofperiod(million yen)

Share ofportfolio(%)(Note 3)

Minato‐ku,
Tokyo

2,500

2,526

7.6

3,070

81.4

Chiyoda‐ku,
Tokyo

4,250

4,302

12.9

5,240

81.1

Shinjuku‐ku,
Tokyo

5,020

5,076

15.2

6,190

81.1

Minato‐ku,
Tokyo

880

894

2.7

1,130

77.9

Minato‐ku,
Tokyo

1,550

1,570

4.7

2,090

74.2

Taito‐ku,
Tokyo

1,150

1,164

3.5

1,590

72.3

Hachioji‐shi,
Tokyo

2,600

2,629

7.9

3,430

75.8

‐

17,95018,16554.3

22,74078.9

Ownership
statusTrustbeneficiaryrightsTrustbeneficiaryrightsTrustbeneficiaryrightsTrustbeneficiaryrightsTrustbeneficiaryrightsTrustbeneficiaryrightsTrustbeneficiaryrights‐TrustbeneficiaryrightsTrustbeneficiaryrightsTrustbeneficiaryrightsAcquisition
date

Feb. 16,2018
Feb. 16,2018
Feb. 16,2018
Feb. 16,2018
Feb. 16,2018
Feb. 16,2018
Feb. 16,
2018
‐

RT‐01

Muza Kawasaki

Kawasaki‐shi,Kanagawa

4,100

4,139

12.4

5,070

80.9

RT‐02

Life Kawasaki
Miyuki Store

Kawasaki‐shi,Kanagawa

790

802

2.4

973

81.2

RT‐03

Vita Seiseki‐
Sakuragaoka

Tama‐shi,
Tokyo

3,100

3,191

9.4

3,830

80.9

‐

7,990

8,132

24.2

9,873

80.9

‐

‐

Trust
beneficiaryrights andmovablesincidental tohotelsFeb. 16,2018

Subtotal/Average

HT‐01

Hotel Vista
SendaiSubtotal/Average
Other

As a
Appraisal value percentage ofat acquisition appraisal value(million yen) at acquisition(%)(Note 4)(Note 5)Acquisition
price(million yen)
(Note 2)Feb. 16,2018
Feb. 16,2018

Sendai‐shi,Miyagi

4,400

4,463

13.3

5,510

79.9

‐

4,400

4,463

13.3

5,510

79.9

‐

‐
Feb. 16,2018

Fukuoka‐shi,
Fukuoka

2,700

2,833

8.2

3,130

86.3

Trust
beneficiaryrightsSubtotal/Average

‐

2,700

2,833

8.2

3,130

86.3

‐

‐

Total/Average‐

33,04033,595100.0

41,253

80.1

‐

‐

OT‐01

(Note 1)Feb. 16,2018

Renaissance 21
Chihaya“Asset no.” is the code and number assigned to the portfolio assets of XYMAX REIT property by property according to each type of use. The
code “OF” represents office properties, “RT” represents retail properties, “HT” represents hotel properties and “OT” represents otherproperties.

(Note 2)“Acquisition price” is the amount (the amount of the sale and purchase price of real estate, etc. stated in the trust beneficiary right sale andpurchase contract for each portfolio asset) not including the various expenses required for the acquisition of the portfolio assets (brokerage(Note 3)

fees, property taxes, etc.), rounded down to the nearest million yen.
“Share of portfolio” is the acquisition price of the portfolio asset expressed as a percentage of the total acquisition price of the portfolio assets,(Note 4)rounded to one decimal place.
Appraisal of each property is entrusted to Japan Real Estate Institute, The Tanizawa Sōgō Appraisal Co., Ltd. and Daiwa Real Estate Appraisal
Co., Ltd. “Appraisal value at acquisition” is the appraisal value stated in each real estate appraisal report with November 30, 2017 as the dateof value.

(Note 5)

“As a percentage of appraisal value at acquisition” refers to the figures arrived at when the acquisition price of the portfolio asset is divided
by the appraisal value of the portfolio asset, rounded to one decimal place. Furthermore, under “Total/Average” and “Subtotal/Average” arethe figures arrived at when the total or subtotal of acquisition prices is divided by the total or subtotal of appraisal values, rounded to one
decimal place.

‐

20 ‐