May 10, 2018
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,/ Inquires:
Representative Director andPresident
Tel:+81-3-6272-6608

Notice Concerning Revision to the Operating and Distribution Forecasts
for the Fiscal Periods Ending June 2018 and December 2018
resulting from Change of Fiscal Period
Sakura Sogo REIT (hereinafter the “Investment Corporation”) announces its operating forecasts anddistribution forecasts for the fourth fiscal period (from March 1, 2018 to June 30, 2018, hereinafter “FP4”)
and for the fifth fiscal period (from July 1, 2018 to December 31, 2018, hereinafter “FP5”) as follows.
1. Reasons for this notice
The change in FP 4 operating forecasts and distributions reflect the change in period end date from 31
August 2018 to 30 June 2018. Underlying operating forecasts and distributions have not changed fromprevious forecast other than FP4 now representing 4 months only (previously 6 months).

2. Details of revision to operating forecasts and distribution forecasts(1) FP4(A) Previous(A’) = (A)/6x4(B) Revised forecast
Variance (B-A’）
Variance (B-A’) (%)

Operatingrevenue(mm yen)

Operatingincome(mm yen)

Ordinaryincome(mm yen)

Netincome(mm yen)

2,448
1,632
1,628-4-0.2

1,054
702
702
00.0

900
600
600
00.0899
599
600
10.2

Distributions
per Unit(Yen)(excluding
Distributions in
Excess ofEarnings)

Distributions
in Excess ofEarnings
per Unit(Yen)

2,700
1,800
1,801
10.1(Reference) FP4: number of investment units forecast on issue: 333,001 units, forecast net income per unit: 1,801 yen

0000-(2) FP5(A) Previous forecast(B) Revised forecast
Variance (B-A）
Variance (B-A) (%)

Operatingrevenue(mm yen)Operatingincome(mm yen)Ordinaryincome(mm yen)

Net income(mm yen)

2,418
2,429
110.5

1,065
1,061-4-0.4

900
90000.0900
899-1-0.1

Distributions
per Unit(Yen)(excluding
Distributions in
Excess ofEarnings)

Distributions
in Excess ofEarnings
per Unit(Yen)

2,702
2,700-2-0.1(Reference) FP5: number of investment units forecast on issue: 333,001 units, forecast net income per unit: 2,700 yen(Note 1) The operating forecasts and distribution forecasts for FP4 and FP5 are figures based on currently available
information calculated based on the assumptions described in the attachment “Assumptions for Operating
Forecasts for FP4 and FP5.” The actual operating revenue, operating income, ordinary income, net incomeand 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 changesof tenants, changes in management environment including occurrence of unexpected repair, fluctuations ininterest 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 2) The forecasts remain subject to revision based on any material variance from assumptions attached.
(Note 3) Figures are rounded down. Percentages are rounded to the nearest decimal place.

Sakura Sogo REIT website address: http://sakurasogoreit.com/en/000-[Attachment]
Assumptions for Operating Forecasts for FP4 and FP5

Item
Calculation period

Investment Assets

Operating revenue

Assumptions
FP4 (From March 1, 2018 to June 30, 2018) (122 days)
FP5 (From July 1, 2018 to December 31, 2018) (184 days)

With regard to the real estate trust beneficiary interests of the properties(18 properties in total) owned as at 2 May 2018.
Changes may arise to the current portfolio in the event of acquiring newproperties or disposing of existing properties.
Rental revenue from the current portfolio is calculated based on the rents
described in the lease agreements that are effective as of today.
The forecast of operating revenue is made on the assumption that notenants will delay or default rental payments.
The main items of operating expenses are as follows (rounded down to
the nearest specified unit; the same shall apply hereinafter):Expenses related toleasing business Included- Property expenses- Depreciation
Expenses not directly
related to property



Operating expenses

FP4734 million yen

FP51,109 million yen

561 million yen
173 million yen
191 million yen

851 million yen
258 million yen
259 million yen

Of expenses related to the leasing business of the current portfolio, which
are the main operating expenses, expenses other than depreciation arecalculated on a historical data basis based on information provided by
the previous owners of the current portfolio and by reflecting variablefactors.
Repair expenses for buildings are projected to be, based on the repair
plans drawn by the Asset Management Company, 29 million yen for FP4
and 29 million yen for FP5. However, due to reasons such as repair
expenses that may urgently arise for building damages, etc. caused byunforeseeable factors, the amount 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 173 million yen for FP4 and 258
million yen for FP5 respectively.
Upon acquisition of real estate or trust beneficiary interest having realestate as trust assets, the Investment Corporation includes the amountequivalent to fixed property taxes, city planning taxes, depreciable assets
taxes, etc. (hereinafter the “Fixed Property Taxes, etc.”) that are settledwith 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
beneficiary interest having real estate as trust assets, the Investment
Corporation adopts the method to record the amount corresponding tothe calculation period, out of finalized taxation amount, as expenses
related to leasing business.

Non-operating
expenses

Debt financing

Interest expenses and other borrowing related expenses are projected
to be 102 million yen for FP4, 161 million yen is projected for FP5.

The total of interest-bearing liabilities outstanding is assumed to be
29,000 million yen at the end of FP4 and FP5.
LTV at end of FP4 is projected to be about 46.3% and LTV at the end ofFP5 is projected to be about 46.0 %.
The following formula is used in the calculation of LTV.
LTV = Total interest-bearing liabilities ÷ Total assets
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 333,001 units
of investment units issued and outstanding as of today through to the endof FP5.
Distribution per unit (excluding distribution in excess of earnings) iscalculated on the assumption that distribution will be made in accordancewith the cash distribution policy provided in the Articles of Incorporationof 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 intenants and other events, and occurrence of unexpected repairs.
The Articles of Incorporation of the Investment Corporation enable it toprovide for distribution in excess of earnings, but considering the ratio ofcapital 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 forecasts presented herein.
Forecasts are based on the assumption there will be no unforeseenmaterial changes in general economic and real estate market conditions.



Investment unitsDistribution per Unit

Distributions in
Excess of Earningsper Unit

Other