February 25, 2022

For Translation Purposes Only

Real Estate Investment Trust Securities Issuer:

Samty Residential Investment Corporation

183 Marunouchi, Chiyodaku, Tokyo

Masafumi Takahashi, Executive Director

(Securities Code: 3459)

Asset Management Company:

Samty Asset Management Co., Ltd.

Masafumi Takahashi, Representative Director

Inquiries: Hidekazu Nizawa

Director

Head of Business Management Division

Phone: + 81352203841

Notice Concerning Revisions to the Forecast of Management Status and Distribution per Unit for 14th Fiscal Period

Ending July 2022 and Forecast of Management Status and Distribution per Unit for 15th Fiscal Period Ending January 2023

Samty Residential Investment Corporation ("Samty Residential") announces revisions to the forecast of its management status and distribution per unit for the 14th fiscal period ending July 2022 (from February 1, 2022 to July 31, 2022), which was announced in "(REIT) Summary of Financial Results for Fiscal Period Ended July 2021" dated September 15, 2021, and announces the forecast of its management status and distribution per unit for the 15th fiscal period ending January 2023 (from August 1, 2022 to January 31, 2023), as described below.

1. Revisions to the Forecast of Management Status and Distribution per Unit for 14th Fiscal Period Ending July 2022

Operating revenue

(million yen)

Operating income

(million yen)

Ordinary income

(million yen)

Net income

(million yen)

Distribution per unit

(including distribution in excess of earnings)

Distribution perunit

(excluding distribution in excess of earnings)

Distribution in excess of earnings per unit

(yen)

(yen)

(yen)

Previous forecast

(A)

4,945

2,192

1,773

1,772

2,644

2,302

342

Revised forecast

(B)

5,383

2,566

2,136

2,135

3,020

2,774

246

Variation

(BA)

437

373

363

363

376

472

96

Rate of variation

8.8%

17.1%

20.5%

20.5%

14.2%

20.5%

28.1%

(Reference) Forecast net income per unit (forecast net income ÷ forecast number of investment units at end of period)

14th fiscal period ending July 2022

: Forecast number of 769,626 units Forecast net income per unit: 2,774 yen investment units issued and outstanding at end of period

Disclaimer:This translation is for informational purposes only. Neither Samty Residential Investment Corporation nor Samty Asset Management Co., Ltd. guarantees the accuracy or completeness of the translation. If there is any discrepancy between the Japanese version and the

English translation, the Japanese version shall prevail.

1

(Note 1) The above forecast is the current forecast calculated based on the assumptions stated in the attached "Assumptions Underlying Forecast of

Management Status for 14th Fiscal Period Ending July 2022 and 15th Fiscal Period Ending January 2023." Accordingly, discrepancies with the assumptions may arise due to future additional acquisition or disposition of real estate properties, changes in the real estate market and other developments, fluctuation in interest rates, further issuance of new investment units in the future, change in other circumstances surrounding Samty Residential and other factors. The actual operating revenue, operating income, ordinary income, net income, distribution per unit (including distribution in excess of earnings), distribution per unit (excluding distribution in excess of earnings) and distribution in excess of earnings per unit may vary as a result. In addition, the forecast is not a guarantee of the amount of distributions and distributions in excess of earnings.

(Note 2) Samty Residential may revise the forecast in the event that it expects discrepancies above a certain level from the forecast above.

(Note 3) Figures are rounded down to the nearest unit, and percentages are rounded to the first decimal place.

2. Forecast of Management Status and Distribution per Unit for 15th Fiscal Period Ending January 2023

Distribution

per unitOperating revenueOperating incomeOrdinary income

(including

Distribution perunit

Net income distribution in excess of earnings)

(excluding distribution in excess of earnings)

Distribution in excess of earnings per unit

(million yen)

(million yen)

(million yen) (million yen)

(yen)

(yen)

(yen)

1,797

1,796

2,665

332

(Reference) Forecast net income per unit (forecast net income ÷ forecast number of investment units at end of period)

15th fiscal period : Forecast number of 769,626 units Forecast net income per unit 2,333 yenending January 2023

investment units issued and outstanding at end of period

(Note 1) The above forecast is the current forecast calculated based on the assumptions stated in the attached "Assumptions Underlying Forecast of

Management Status for 14th Fiscal Period Ending July 2022 and 15th Fiscal Period Ending January 2023." Accordingly, discrepancies with the assumptions may arise due to future additional acquisition or disposition of real estate properties, changes in the real estate market and other developments, fluctuation in interest rates, further issuance of new investment units in the future, change in other circumstances surrounding Samty Residential and other factors. The actual operating revenue, operating income, ordinary income, net income, distribution per unit (including distribution in excess of earnings), distribution per unit (excluding distribution in excess of earnings) and distribution in excess of earnings per unit may vary as a result. In addition, the forecast is not a guarantee of the amount of distributions and distributions in excess of earnings.

(Note 2) Samty Residential may revise the forecast in the event that it expects discrepancies above a certain level from the forecast above. (Note 3) Figures are rounded down to the nearest unit, and percentages are rounded to the first decimal place.

3. Reason for Disclosure

As notified in "Notice Concerning Acquisition and Disposition of Properties" (the "Notice") announced today, due to the acquisition and disposition of assets, the assumptions underlying the forecast of management status for the 14th fiscal period ending July 2022 (from February 1, 2022 to July 31, 2022) announced on September 15, 2021, have changed. Therefore, revisions to the forecastof management status and distribution per unit for the 14th fiscal period ending July 2022 (from February 1, 2022 to July 31, 2022) are made.

Furthermore, along with the revisions, the forecast of management status and distribution per unit for the 15th fiscal period ending January 2023 (from August 1, 2022 to January 31, 2023) is also announced.

There is no revision to the forecast of management status and distribution per unit for the 13th fiscal period ended January 2022 (from August 1, 2021 to January 31, 2022) announced in "(REIT) Summary of Financial Results for Fiscal Period Ended July 2021" dated September 15, 2021.

* Samty Residential Investment Corporation website:https://samtyresidential.com/en/

Disclaimer:This translation is for informational purposes only. Neither Samty Residential Investment Corporation nor Samty Asset Management Co., Ltd. guarantees the accuracy or completeness of the translation. If there is any discrepancy between the Japanese version and the

English translation, the Japanese version shall prevail.

2

[Attachment]

Assumptions Underlying Forecast of Management Status for 14th Fiscal Period Ending July 2022 and

15th Fiscal Period Ending January 2023

Item

Assumption

Fiscal period

  • Fiscal period ending July 2022 (from February 1, 2022 to July 31, 2022) (181 days)

  • Fiscal period ending January 2023 (from August 1, 2022 to January 31, 2023) (184 days)

Managed assets

  • Fiscal period ending July 2022: It is assumed that Samty Residential will continue to own a total of 163 properties, which are the 160 properties, including real estate properties and beneficial interests in real estate trusts, it owns as of today (the "Acquired Assets") and the 3 properties to be acquired announced in the Notice (the "Assets to Be Acquired"), through the end of the fiscal period ending July 2022, and that no other property will be newly acquired or sold, except for the 4 properties that it intends to dispose of as announced in the Notice (the "Assets to be Sold").

  • Fiscal period ending January 2023: It is assumed that Samty Residential will continue to own a total of 159 properties for real estate/trust beneficiary interests in the real estate above owned as of the end of the fiscal period ending July 2022 through the end of the fiscal period ending January 2023, and thatno other property will be newly acquired or sold.

  • In practice, changes may arise due to the acquisition of new properties apart from the Assets to be Acquired or disposition of owned properties, etc.

Operating revenue

  • Real estate rent revenue is calculated on the basis of past results of Samty Residential (or the past results disclosed by the previous owners, etc. for the periods for which Samty Residential does not have past results) for the Acquired Assets, and information provided from the current owners, etc. of the respective properties for Assets to Be Acquired, taking into account the status of leases.

  • Samty Residential anticipates 338 million yen of gain on sale of real estate properties for the Assets to Be Sold, comprising four properties to be sold on February 28, 2022 and March 24, 2022, announced in the Notice. Gain on sale of real estate properties is an assumption at the present time, and there may be changes in the future. Operating revenue is based on the assumption that there will be no gain or loss on sale of real estate properties other than the gain on sale of real estate properties described above.

Operating expenses

  • Expenses related to the rent business, which are the principal operating expenses, are calculated on the basis of past results of Samty Residential (or the past results disclosed by the previous owners, etc. for the periods for which Samty Residential does not have past results) for the Acquired Assets, and information provided from the current owners, etc. of the respective properties for Assets to Be Acquired, taking into account factors that may cause fluctuations in expenses.

  • Real estate rent income (excluding gain on sale of real estate properties) after deducting expenses related to the rent business (excluding depreciation) is assumed to be 3,880 million yen for the fiscal period ending July 2022 and 3,892 million yen for the fiscal period ending January 2023.

  • Property tax and city planning tax, etc. to be recorded as expenses are assumed to be 331 million yen in total in the fiscal period ending July 2022, and 329 million yen in total in the fiscal period ending January 2023. In general practice, the property tax and city planning tax, etc. levied on transactions of real estateproperties are settled at the time of acquisition by prorating for the period with the current owner. However, as Samty Residential includes the amount equivalent to such settlement in the acquisition costs for the property, the amount is not recorded as expenses. As for the Assets to Be Acquired, the property tax and city planning tax, etc. to be included in the acquisition costs are assumed to be 13 million yen in total, and 8 million yen is assumed to be recorded as property tax and city planning tax, etc. of such properties from the fiscal period ending July 2023.

  • Depreciation is calculated using the straightline method, and is assumed to be 963 million yen for the fiscal period ending July 2022 and 964 million yen for the fiscal period ending January 2023.

  • Repair expenses for buildings are assumed to be 222 million yen for the fiscal period ending July 2022 and 209 million yen for the fiscal period ending January 2023, based on the medium to longterm repair plans prepared by the asset management company. However, the amounts could differ significantly from the assumed figures, as increased or additional repair expenses may arise due to unpredictable factors.

Nonoperating expenses

  • As for the amortization of expenses for the issuance of investment units, 11 million yen is assumed for the fiscal period ending July 2022 and 8 million yen is assumed for the fiscal period ending January 2023.

  • As for the amortization of expenses for the issuance of investment corporation bonds, 5 million yen is assumed for the fiscal period ending July 2022 and 5 million yen is assumed for the fiscal period ending January 2023.

  • As for interest expenses and other financingrelated expenses, 412 million yen is assumed for the fiscal period ending July 2022 and 422 million yen is assumed for the fiscal period ending January 2023.

Disclaimer:This translation is for informational purposes only. Neither Samty Residential Investment Corporation nor Samty Asset Management Co., Ltd. guarantees the accuracy or completeness of the translation. If there is any discrepancy between the Japanese version and the

English translation, the Japanese version shall prevail.

3

Interestbearing debt

  • The balance of interestbearing debt of Samty Residential as of today comprises 73,235 million yen in borrowings and 4,200 million yen in outstanding investment corporation bonds. It is assumed that the entire balance of borrowings and investment corporation bonds maturing from today onwards will be refinanced through new borrowings or investment corporation bonds.

  • Based on this assumption, the balance of interestbearing debt is assumed to comprise 73,235 million yen in borrowings and 4,200 million yen in outstanding investment corporation bonds at the end of the fiscal period ending July 2022, and 73,235 million yen in borrowings and 4,200 million yen in outstanding investment corporation bonds at the end of the fiscal period ending January 2023.

Investment units

  • Assumptions are based on a total number of 769,626 investment units issued and outstanding as of today.

  • It is assumed that there will be no change to the number of units above due to the issuance of new investment units, etc. through the end of the fiscal periods ending July 2022 and January 2023.

Distribution per unit (excluding distribution in excess of earnings)

  • Distribution per unit (excluding distribution in excess of earnings) is calculated on the assumption that the amount of earnings is distributed pursuant to the cash distribution method stipulated in Samty Residential's Articles of Incorporation.

  • There is the possibility that the distribution per unit (excluding distribution in excess of earnings) may vary due to various factors, including changes in managed assets, variation in real estate rental revenue in accordance with changes of tenants, and occurrence of unpredicted repairs.

Distribution in excess of earnings per unit

  • Distribution in excess of earnings per unit is calculated pursuant to the cash distribution method stipulated in Samty Residential's Articles of Incorporation as well as the Asset Management Company's internal regulations.

  • Samty Residential anticipates that there will be ample opportunities, etc. to acquire new properties as investments that should contribute to increasing portfolio earnings power in the fiscal period ending July 2022 and the fiscal period ending January 2023, although the real estate transaction market appears to be partially overheated. Accordingly, it is highly necessary to reserve certain amounts of funds to make it possible to respond to such opportunities flexibly. On the other hand, in consideration of such factors as Samty Residential's financial conditions and the prospect of its ability to refinance interestbearing debt, Samty Residential does not consider itself in said two fiscal periods to be in a position to allocate funds preferentially for reinforcing its financial base through such measures as reducing interestbearing liabilities. While depreciation for the Acquired Assets and the Assets to Be Acquired is anticipated to be 963 million yen for the fiscal period ending July 2022 and 964 million yen for the fiscal period ending January 2023, the sixmonth average of the sum total of the estimated urgent repair expenses, estimated shortterm repair expenses and estimated longterm repair expenses described in the building condition survey reports will be only 197 million yen (197 million yen for the fiscal period ending July 2022 and 197 million yen for the fiscal period ending January 2023). Accordingly, Samty Residential expects to have residual free cash flow even after making certain reserves from the cash and deposits on hand equivalent to the depreciation amount at the end of each fiscal period as reserves for capital expenditures to maintain the building functions, etc., as funds equivalent to the estimated amount of working capital, etc. and as reserves in preparation for investments that should contribute to increasing portfolio earning power as stated above.

  • Considering the above, Samty Residential believes that it is appropriate to implement distribution in excess of earnings for the fiscal period ending July 2022 and the fiscal period ending January 2023 as of today, and anticipates 189 million yen and 255 million yen, respectively, as total distribution in excess of earnings. Such distribution in excess of earnings is calculated by taking into account the level of the payout ratio (the ratio of total cash distribution, including distribution in excess of earnings, to net income and depreciation combined), and the payout ratio will be 75.0% and 74.3%, respectively. In addition, the total distribution in excess of earnings will be equivalent to 19.7% and 26.5% of the depreciation expected to accrue in the respective fiscal periods.

  • Regarding the basic policy for cash management and the like for distribution in excess of earnings, please refer to "Part 1 Fund information, 1. Fund status, 2. Investment policy" in the securities report filed on October 28, 2021.

Other

  • It is assumed that there will be no revision to laws and regulations, tax system, accounting standards, regulations applying to publicly listed companies and rules of The Investment Trusts Association, Japan, etc. that will impact the aforementioned forecasts.

  • It is also assumed that there will be no unexpected material changes in general economic trends and real estate market conditions, etc.

Disclaimer:This translation is for informational purposes only. Neither Samty Residential Investment Corporation nor Samty Asset Management Co., Ltd. guarantees the accuracy or completeness of the translation. If there is any discrepancy between the Japanese version and the

English translation, the Japanese version shall prevail.

4

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Samty Residential Investment Corporation published this content on 08 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 April 2022 03:28:05 UTC.