XYMAX REIT Investment : Presentation Material for the 7th Fiscal Period Ended August 2021

Presentation Materials

for the 7th Fiscal Period Ended August 2021

Securities Code: 3488

Basic Principles and Characteristics of XYMAX REIT

XYMAX REIT accurately assesses the value of individual properties to maximize unitholder value. We fully utilize our strength in Management, Assessment, and Sourcing based on the knowledge and know‐how of the XYMAX Group, which has Japan's No.1 track record in property management.

Contents

1. Overview of Financial Results & Earnings Forecasts

1. Investment Status and Growth Strategy
   III. ESG
   IV. Appendix

Terms	Definition
	Indicates the acquisition value appraised by the appraisers or the research
Estimated value at	price based on the Articles of Incorporation of XYMAX REIT and the
"Ordinance on Accountings of Investment Corporations" (Ministry of
the end of period
Finance Ordinance No. 47 of 2006, as amended) with the last day of the
	current fiscal period as the research date
Unrealized gain	Estimated value of real estate, etc. at the end of period - book value at
the end of period
LTV based on total	Balance of interest‐bearing liabilities / total assets
assets
Appraisal LTV	Balance of interest‐bearing liabilities / (total assets + unrealized gain)
Net asset per unit	(Net asset‐total distribution) / total number of investment units issued
and outstanding
NAV per unit	(Net asset + unrealized gain‐total distribution) / total number of
investment units issued and outstanding
	The sales price of each trust beneficiary right indicated in the trust
Acquisition price	beneficiary rights sales agreement, and does not include consumption
	taxes, local consumption taxes and brokerage fees, etc.

Notes

• Unless otherwise specified, amounts are rounded to the nearest unit and ratios are rounded off to the first decimal place.
• The following abbreviations of property names are used.

XYMAX Nishi‐Shimbashi Building : Nishi‐Shimbashi	XYMAX Iwamotocho Building	: Iwamotocho
XYMAX Shinjuku‐Gyoen Building : Shinjuku‐Gyoen	XYMAX Kamiyacho Building	: Kamiyacho
XYMAX Higashi‐Azabu Building	: Higashi‐Azabu	XYMAX Higashi‐Ueno Building	: Higashi‐Ueno
XYMAX Hachioji Building	: Hachioji	XYMAX Mita Building	: Mita
Muza Kawasaki	: Muza	Life Kawasaki Miyuki Store	: Kawasaki Miyuki
Vita Seiseki‐Sakuragaoka	: Seiseki‐Sakuragaoka	Life Fukuizumi Store	: Fukuizumi
The Park House Totsuka Front (the Retail Portions of 1st and 2nd Floors)	: Totsuka
Hotel Vista Sendai	: Sendai	Renaissance 21 Chihaya	: Chihaya	2

Overview of Financial Results

& Earnings Forecasts

Overview of Financial Results & Earnings Forecasts

Management Highlights

Amid the continuing impact of COVID‐19 and the repeated declarations of states of emergency, our financial results exceeded the forecasts at the beginning of the FP.

	Overview of	 Operating revenue: 1,305 million yen, operating income: 701 million yen, net income: 647 million yen
		Distribution per unit: 2,900 yen (‐0.4% compared with the previous FP, +4.0% compared with the
	financial results		forecasts at the beginning of the FP)
		 NAV per unit: 145,749 yen (+0.2% compared with the previous FP)
			The average economic occupancy rate of offices (excluding Mita) during the period reached 95.1%, an
			increase of +0.4% compared with the forecasts at the beginning of the FP. There were no additional
			requests to reduce rents, which caused a fluctuation in business performance. We also succeeded to
	Internal growth		increase the rent for some office tenants.
		The hotels were severely impacted by the fourth and fifth waves of COVID‐19, something that had not
			been anticipated at the beginning of the FP. This resulted in a GOP of 32% compared with the same
			period in 2019 (‐13.7% compared with the forecasts at the beginning of the FP).
		 The occupancy of retail properties and residential properties was stable, and this supported profits.
		 Acquired Mita and Totsuka during this period. (Total acquisition price for the two properties: 1,208 million
	External growth		yen; appraisal NOI yield: 5.2%; appraisal NOI yield after depreciation: 4.4%)
		An improvement effect of approx. 70 yen in DPU is expected during the stabilization period.
		 The ZXY, a satellite office operated by XYMAX Corporation is a tenant of Totsuka.
		 Additional funds were borrowed to acquire Mita and Totsuka.
	Financial strategy
		Remaining borrowing capacity (up to 50% of LTV based on total assets) is approx. 10.8 billion yen, and
	ESG		certain level of remaining capacity for financing is being maintained.
		From the 8th FP, we decided to switch electricity sources to electricity generated with 100% renewable
			energy sources at several properties.

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Overview of Financial Results & Earnings Forecasts

Overview of Financial Results (1)

Operating revenue was 1,305 million yen, up 1.1% from the latest forecast; profit was 647 million yen, up 4.0%.

Unit: million yen

Forecast	Actual results	Difference
for the 7th FP	for the 7th FP
(B)‐(A)
(A)	(B)

Operating	1,291	1,305	+13
revenue
Operating	614	604	-10
expenses
Operating	676	701	+24
income
Ordinary income	623	648	+24
Net income	622	647	+24
Distribution per	2,788	2,900	+112
unit (yen)

• Days of 7th FP: 184 days

	Unit: million yen
Main factors for difference	Convert
(+: Incremental factors, - : Decremental
to DPU
factors)
Operating revenue
Increase in operating revenue
Totsuka 3/24︔主なポイント以外の
through the acquisition of Mita and	+14.1	+63 yen
箇所を着⼿下さい。(内容的	‐38 yen
な変更はありませんが。)
Downturn in variable rent of hotel	‐8.6
Upswing in residential rent income	+4.8	+21 yen
Upswing in existing office
properties'(excluding Mita) rent	+4.4	+19 yen
income
Operating Expenses
Downturn in leasing costs due to
steady re‐leasing and lower than	+14.4	+64 yen
expected vacancy rate
Increasing in various cost of sales
through the acquisition of Mita and	‐7.7	‐34 yen
Totsuka
Increasing in SG&A costs through	‐2.5	‐11 yen
the acquisition of Mita and Totsuka

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