Star Asia Investment : Notice Concerning Revision to Forecasts for Operating Results for the 14th Fiscal Period Ending January 31, 2023 and Forecasts for Operating Resu

August 1, 2022

For Immediate Release

Real Estate Investment Trust Securities Issuer

Star Asia Investment Corporation

Representative: Atsushi Kato, Executive Director

(Code: 3468)

Asset Management Company

Star Asia Investment Management Co., Ltd.

Representative: Atsushi Kato

President and CEO

Contact: Akiko Kanno

Director and CFO

TEL: [phone]

Notice Concerning

Revision to Forecasts for Operating Results for the 14th Fiscal Period Ending January 31, 2023

and Forecasts for Operating Results and Distribution for the 15th Fiscal Period Ending July 31, 2023

Star Asia Investment Corporation ("SAR") announces that it has decided to revise the operating results forecasts for the 14th fiscal period ending January 31, 2023 (August 1, 2022 to January 31, 2023) announced in the "(REIT) Financial Report for Fiscal Period Ended January 31, 2022" dated March 16, 2022 (the "Previously Announced Forecasts"). SAR also newly announces the operating results forecasts and distribution forecasts for the 15th fiscal period ending July 31, 2023 (February 1, 2023 to July 31, 2023) as described below.

There are no changes made to the forecasts for operating results and distribution for the 13th fiscal period ended July 31, 2022 (February 1, 2022 to July 31, 2022) which was announced on March 16, 2022. SAR plans to announce the financial results for the fiscal period ended July 31, 2022 (February 1, 2022 to July 31, 2022) on September 13, 2022.

1. Revision to forecasts for operating results for the fiscal period ending January 31, 2023

					Cash	Cash
	Operating	Operating	Ordinary		distribution	distribution
	Net income	per unit (not
	revenue	income	income	including cash	in excess of
	(million yen)
	(million yen)	(million yen)	(million yen)	distribution in	earnings per
		excess of
					unit (yen)
					earnings) (yen)
Previous
Forecasts	5,995	3,031	2,552	2,552	1,476	0
(A)

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose of announcing to the public certain matters relating to revision to forecasts for operating results for the 14th fiscal period ending January 31, 2023 and forecasts for operating results and distribution for the 15th fiscal period ending July 31, 2023, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned transactions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

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Revised
Forecasts	6,387	3,263	2,686	2,686	1,476	0
(B)
Amount of
change	392	232	134	134	0	0
(C)=(B)-(A)
Rate of change	6.6%	7.7%	5.3%	5.3%	－	－
(D)=(C)/(A)

(Reference)

Expected number of investment units issued and outstanding as of the end of the fiscal period: 1,921,689 units (Refer to the "Investment units" in the assumptions described in Exhibit 1.)

2. Forecasts for operating results and distribution for the fiscal period ending July 31, 2023

					Cash	Cash
	Operating	Operating	Ordinary		distribution	distribution
	Net income	per unit (not
	revenue	income	income	including cash	in excess of
	(million yen)
	(million yen)	(million yen)	(million yen)	distribution in	earnings per
		excess of
					unit (yen)
					earnings) (yen)
Forecasts	6,523	3,302	2,766	2,766	1,485	0

(Reference)

Expected number of investment units issued and outstanding as of the end of the fiscal period: 1,921,689 units (Refer to the "Investment units" in the assumptions described in Exhibit 1.)

(Notes)

1. The above forecasts are current forecasts based on "Assumptions Underlying Operating Results Forecasts and Distributions Forecasts For Fiscal Periods Ending January 31, 2023 and Ending July 31, 2023" described in Exhibit 1 and the actual operating revenue, operating income, ordinary income, net income, cash distribution per unit (not including cash distribution in excess of earnings) and cash distribution in excess of earnings per unit may fluctuate from the forecasts, due to the deviation in assumptions caused by factors such as the future acquisition or sale of real estate properties etc., the transition of the real estate market, changes to rent income due to the moving of tenants, changes to the operational environment including occurrence of unexpected repairs, changes to the number or issue price of actually issued new investment units, change of interest rate, further issuances of new investment units, or changes to other conditions surrounding SAR. In addition, the above forecasts are not in any way a guarantee that the above cash distribution will be made.
2. The forecasts may be subject to revision when a disparity beyond a certain degree is expected between the above forecasts and actual figures.
3. Amounts are rounded down to the nearest specified unit and percentage figures are rounded to the first decimal place.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose of announcing to the public certain matters relating to revision to forecasts for operating results for the 14th fiscal period ending January 31, 2023 and forecasts for operating results and distribution for the 15th fiscal period ending July 31, 2023, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned transactions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

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3. Reason for the revisions and announcement

Due to the acquisition of real estate beneficiary interests in trust for three properties described in "Notice Concerning Acquisition of Real Estate Beneficiary Interests in Trust and entering into Lease Contracts", the issuance of new investment units as announced in "Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units", and the new debt financings announced in "Notice Concerning Debt Financing (Green Loan)", each of which was announced today, certain changes have been made to the assumptions underlying the operating results forecasts for the fiscal period ending January 31, 2023 as described in "(REIT) Financial Report for Fiscal Period Ended January 31, 2022" dated March 16, 2022. In such context, from the standpoint of reflecting such changes, SAR announces revisions to the forecasts for the operating results for the fiscal period ending January 31, 2023, and also newly announces the operating results forecasts and distribution forecasts for the fiscal period ending July 31, 2023.

Other press releases Announced Today

・Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units ・Notice Concerning Acquisition of Real Estate Beneficiary Interests in Trust and entering into Lease

Contracts

・Notice Concerning Debt Financing (Green Loan)

・Notice Concerning Partial Amendment to the Management Guidelines of the Asset Manager ・Notice Concerning Acquisition of Assessment Certification in CASBEE for Real Estate

・Notice Concerning Change of Names of Properties

*SAR HP URL:http://starasia-reit.com/en/

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose of announcing to the public certain matters relating to revision to forecasts for operating results for the 14th fiscal period ending January 31, 2023 and forecasts for operating results and distribution for the 15th fiscal period ending July 31, 2023, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned transactions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

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[Exhibit1]

Assumptions Underlying Operating Results Forecasts and Distributions Forecasts

For Fiscal Periods Ending January 31, 2023 and Ending July 31, 2023

Item	Assumptions
Calculation period	➢ 14th Fiscal period ending January 31, 2023: August 1, 2022 - January 31, 2023 (184 days)
➢ 15th Fiscal period ending July 31, 2023: February 1, 2023 - July 31, 2023 (181 days)
	➢ It will be assumed that in addition to the assets held by SAR as of today (real estate
	beneficiary interests in trust over 60 properties, 2 mezzanine loan debts (collectively
	referred to as "Currently Held Assets", with those in the form of real estate trust
	beneficiary interests being referred to as "Currently Held Assets (Real Estate)" , those in
	the form of mezzanine loan debt being referred to as "Currently Held Assets
	(Mezzanine)" , and the real estate beneficial interests in trust over the 3 properties
Assets under	described below (the "Assets to be Acquired") will be acquired (the "Acquisition").
management
	Property Name: Urban Center Fujisawa, abeno nini (Retail), abeno nini (Hotel)
	Anticipated Acquisition Date: August 18, 2022
	➢ It is assumed that, other than the Acquisition, there will be no change in investment
	assets (acquisitions of new assets, sales of the Currently Held Assets, etc.) up to the end
	of the fiscal period ending July 31, 2023.
	➢ In practice, assets under management may vary due to changes in investment assets.
	➢ Rent revenues from the Currently Held Assets (Real Estate) are calculated based on the
	rents stated in the lease agreements that are effective as of today, and rent revenues
	from the Assets to be Acquired are calculated based on information provided by the
	seller and rents stated in the lease agreements that are expected to be effective as of the
Operating	anticipated acquisition date, with taking into consideration market trends, etc. It is also
revenue	assumed that no rent payments will be delinquent or defaulted by tenants.
	➢ Interest revenues or dividend revenues from the Currently Held Assets (Mezzanine) are
	calculated based on the terms and conditions, the loan agreement, or trust agreement
	effective as of today which define details of the Currently Held Assets (Mezzanine). It is
	also assumed that no interest payments or dividend payments will be defaulted.
	➢ Among the rent business-related expenses which are the main operating expenses, all
Operating	such expenses other than depreciation expenses are calculated based on historical data
of actual expenses, and reflecting variable factors for expenses.
expenses
➢ Fixed property taxes, city planning taxes and other public charges are expected to be 457
	million yen for the fiscal period ending January 31, 2023 and 490 million yen for the fiscal

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose of announcing to the public certain matters relating to revision to forecasts for operating results for the 14th fiscal period ending January 31, 2023 and forecasts for operating results and distribution for the 15th fiscal period ending July 31, 2023, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned transactions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

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Item	Assumptions
	period ending July 31, 2023.
	For the Assets to be Acquired, such taxes etc. are expected to be settled with the seller
	on a pro-rata basis based on the number of days of ownership at the time of acquisition
	of the properties. However, SAR will include such settled amount in the acquisition cost,
	and thus SAR will not record these items as expenses in the fiscal period ending January
	31, 2023. It is planned that fixed property taxes, city planning taxes and other public
	charges for the Assets to be Acquired will be recorded as expenses beginning from the
	fiscal period ending July 31, 2023.
	➢ For the expenditures for repair and maintenance of buildings, based on repair and
	maintenance plans drawn up by the Star Asia Investment Management Co., Ltd., 209
	million yen is expected for the fiscal period ending January 31, 2023 and 218 million yen
	for the fiscal period ending July 31, 2023. However, the actual expenditures for repair
	and maintenance for the fiscal periods could differ significantly from the estimated
	amounts, as expenditures may arise urgently due to damage to buildings caused by
	unexpected factors, and generally speaking such expenditures tend to vary significantly
	from year to year and also are not amounts which arise regularly.
	➢ Depreciation expenses including ancillary costs are calculated using the straight-line
	method, and is expected to be 734 million yen for the fiscal period ending January 31,
	2023 and 749 million yen for the fiscal period ending July 31, 2023.
NOI	➢ The total portfolio NOI is expected to be 4,559 million yen for the fiscal period ending
January 31, 2023 and 4,607 million yen for the fiscal period ending July 31, 2023.
(Net Operating
➢ NOI is calculated by using the following calculation method.
Income)	NOI = rent revenue - rent expenses (excluding depreciation)

• As issuance cost of new investment units, non-operating expenses are expected to be 13 million yen for the fiscal period ending January 31, 2023 and 13 million yen for the fiscal period ending July 31, 2023.
• The total amount of interest expense and other financial expenses are expected to be
  Non-operating 558 million yen for the fiscal period ending January 31, 2023 and 517 million yen for the

expenses

fiscal period ending July 31, 2023.

• The total amount of interest expense on investment corporation bonds and other investment corporation bond issuance costs are expected to be 4 million yen for the fiscal period ending January 31, 2023 and 4 million yen for the fiscal period ending July 31, 2023.
• The total amount of interest-bearing liabilities is assumed to be 96,640 million yen as of

Debt financing	the end of the fiscal period ending January 31, 2023 and 96,640 million yen as of the end
	of the fiscal period ending July 31, 2023.

Note: This press release does not in any way constitute any part of an offering of securities for investment. This press release has been prepared for the purpose of announcing to the public certain matters relating to revision to forecasts for operating results for the 14th fiscal period ending January 31, 2023 and forecasts for operating results and distribution for the 15th fiscal period ending July 31, 2023, and not for the purpose of soliciting any investment, within or outside of Japan. Additionally, this press release is not an offer of securities for sale in the United States. The securities referred to herein have not been, and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. No offering or sale of securities in the United States will be made in connection with the above-mentioned transactions. This press release is not for publication, distribution or release, directly or indirectly in or into the United States of America.

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