XYMAX REIT Investment Corporation

3488

JP3048690006

Diversified REITs

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05-31	XYMAX REIT Investment Delays Acquisition Date of TMK Hirakata Retail Facility	MT
05-27	XYMAX REIT Investment Corporation Announces Board Changes	CI

XYMAX REIT Investment : (REIT) Financial Report for the Fiscal Period Ended February 2021

April 14, 2021 at 07:05 am

(REIT) Financial Report for the Fiscal Period Ended February 2021

REIT Securities Issuer:	XYMAX REIT Investment Corporation	Listing:	Tokyo Stock Exchange	April 14, 2021
Securities Code:	3488	URL:	https://xymaxreit.co.jp/en/index.html
Representative:	Nobuhito Inatsuki, Executive Director
Asset Management Company: XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation
Representative:	Shotaro Kanemitsu, Representative Director and President
Contact:	Tatsuya Nakayama, Head of Business Planning Division
	TEL: +81-3-5544-6880

Scheduled date for submission of securities report:	May 28, 2021
Scheduled date for commencement of distribution payment:	May 19, 2021
Supplementary materials for financial results:	Yes
Financial results briefing session:	Yes (for institutional investors and analysts)
	(Amounts are rounded down to the nearest million yen)

1. Status of Management and Assets for the Fiscal Period Ended February 2021 (from September 1, 2020 to February 28, 2021)

(1) Results of Operations							(% figures are the rate of period-on-period increase (decrease))
			Operating revenue		Operating income		Ordinary income	Net income
Fiscal period		million yen		%		million yen		%				million yen			%	million yen	%
ended Feb. 2021			1,293		(5.2)			716		(7.2)			651			(10.2)		650	(10.2)
Fiscal period			1,364		1.6			771		6.6			725				7.8		724	7.8
ended Aug. 2020															Ratio		of				Ratio
	Net income per unit		Return on equity							of

					ordinary income to	ordinary income to
Fiscal period						yen					%			total assets	%	operating revenue %
ended Feb. 2021					2,911					2.8							1.8			50.4
Fiscal period					3,241					3.1							2.0			53.1
ended Aug. 2020
(2) Distribution		Distribution		Total		Distribution				Total

			per unit		distribution							Ratio of
		(excluding		(excluding		in excess of			distribution		Payout ratio
		distribution		distribution			earnings			in excess of		distribution to
		in excess of		in excess of			per unit			earnings			net assets
			earnings)		earnings)
Fiscal period			yen		million yen				yen			million yen		%		%
ended Feb. 2021			2,911			650			-			-		100.0		2.8
Fiscal period			3,242			724			-			-		100.0		3.1
ended Aug. 2020
(3) Financial Position	Total assets			Net assets			Equity ratio		Net assets per unit

Fiscal period				million yen						million yen						%			yen
ended Feb. 2021					37,636					23,236							61.7			104,011
Fiscal period					36,716					23,310							63.5			104,342
ended Aug. 2020

(4) Cash Flows	Net cash	Net cash	Net cash	Cash and

	provided by (used in)	provided by (used in)	provided by (used in)	cash equivalents
	operating activities	investing activities	financing activities	at end of period
Fiscal period	million yen	million yen	million yen	million yen
ended Feb. 2021	665	(1,170)	376	2,867
Fiscal period	884	(116)	(672)	2,996
ended Aug. 2020

2. Operating Forecasts for the Fiscal Period Ending August 2021 (from March 1, 2021 to August 31, 2021) and Fiscal Period Ending February 2022 (from September 1, 2021 to February 28, 2022)

(% figures are the rate of period-on-period increase (decrease))

									Distribution	Distribution
									per unit
	Operating revenue	Operating income	Ordinary income	Net income	(excluding	in excess of
	distribution	earnings
									in excess of	per unit
									earnings)
Fiscal period	mn yen	%	mn yen	%	mn yen	%	mn yen	%	yen	yen
ended Aug. 2021	1,291	(0.1)	676	(5.5)	623	(4.2)	622	(4.2)	2,788	-
Fiscal period	1,321	2.3	706	4.3	641	2.8	640	2.8	2,867	-
ended Feb. 2022

(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 2021:2,788 yen Fiscal period ending February 2022: 2,866 yen

Other
1. Changes in Accounting Policies, Accounting Estimates, and Retrospective Restatements

i.	Changes in accounting policies accompanying amendments to accounting standards, etc.:	None
ii.	Changes in accounting policies other than i.:	None
iii.	Changes in accounting estimates:	None
iv.	Retrospective restatements:	None

Total number of investment units issued and outstanding
i. Total number of investment units issued and outstanding (including treasury investment units) at end of period

Fiscal period ended Feb. 2021	223,400	units	Fiscal period ended Aug. 2020	223,400	units
ii. Number of treasury investment	units at end of period
Fiscal period ended Feb. 2021	0	units	Fiscal period ended Aug. 2020	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 25.

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 of operations, etc. may differ materially due to various factors. Key factors that could affect the actual operational status include a decline in rent revenue, non-payment of rent and bankruptcy of tenants occupying owned properties, as a result of the further spread of the new coronavirus infectious diseases (COVID-19) and the prolongation of the period until the contagion converges. Factors affecting the investment status are not limited to these. 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 2021 (from March 1, 2021 to August 31, 2021) and Fiscal Period Ending February 2022 (from September 1, 2021 to February 28, 2022)" on page 5. Accordingly, the actual operating revenue, operating income, ordinary income, net income, distribution per unit and distribution in excess of earnings per unit may vary due to changes in the circumstances.

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Table of Contents .............................................................................................................................................................................	2
1. Management Status...............................................................................................................................	2
(1)	Overview of the Fiscal Period under Review
	...............................................................................................................................................	3
(2)	Outlook for the Next Fiscal Period
	...........................................................................................................................................................................	7
2. Financial Statements
	.................................................................................................................................................................................	7
(1)	Balance Sheet .....................................................................................................................................................................	9
(2)	Statement of Income...............................................................................................................................................	10
(3)	Statement of Unitholders' Equity
	..................................................................................................................................................	11
(4)	Statement of Cash Distribution
	.............................................................................................................................................................	12
(5)	Statement of Cash Flows..................................................................................................................................	13
(6)	Notes on the Going Concern Assumption.................................................................................................	13
(7)	Notes on Matters Concerning Significant Accounting Policies
	.............................................................................................................................................	16
(8)	Notes on the Financial Statements.................................................................................	25
(9)	Changes in Total Number of Investment Units Issued and Outstanding
	......................................................................................................................................................................	26
3. Reference Information
	........................................................................................................................................................................	26
(1)	Investment Status .......................................................................................................................................................................	27
(2)	Investment Assets

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

1. Management Status

Overview of the Fiscal Period under Review
I. Brief History of the Investment Corporation

XYMAX REIT was incorporated under the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951, as amended) (hereinafter, the "Investment Trusts Act") with XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation (hereinafter, the "Asset Management 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). In addition, an issuance of new investment units through third-party allotment (10,495 units) was implemented on March 20, 2018.

These resulted in total number of investment units issued and outstanding of 223,400 units as of the last day of the fiscal period.

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) "Real estate management" collectively refers to property management, comprehensive building maintenance services, and combined property management and comprehensive building maintenance services (including cases where contracted with such services in subleasing cases). The same shall apply hereinafter.

(Note 2) "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.

Management Environments

With regard to the economic environment in the fiscal year under review, the real GDP growth rate increased by 2.8% (an annualized increase of 11.7%) in the period from Oct. to Dec. 2020, which was the second consecutive quarter of positive growth, partly due to the recovery in consumer spending and an increase in corporate capital investment due to various measures to stimulate demand by the government. However, in the year through 2020, this was the first negative growth in 11 years, with a decrease of 4.8%. As for the financial market, according to "Loans and Discounts Outstanding by Sector" published by the Bank of Japan, total loans outstanding as of the end of Dec 2020 were JPY541 trillion and loans outstanding for real estate were JPY84.3 trillion, both of which remain at extremely high levels, due to moves to expand cash on hand and mergers and acquisitions by companies in line with the deterioration in the real economy caused by COVID-19.

Under such circumstances, the following movements can be seen in the various markets for offices, retail facilities and hotels that the Investment Corporation mainly invests in, as well as in the real estate buy-sell market.

As for offices, according to "Office Market Report Tokyo 2020Q4" (Note) published by XYMAX Real Estate Institute Corporation, the vacancy rate in the 23 wards of Tokyo in the 4Q of 2020 increased by 0.53 points from the previous quarter to 1.87%. In order to prevent the outbreak of COVID-19, teleworking activities such as telecommuting and using share office services have become widespread across all industries. As a result, there have been moves to downsize offices and partial cancellations.

Regarding retail facilities, according to the Ministry of Economy, Trade and Industry's Current Survey of Commerce, retail sales in the 4Q of 2020 increased 2.1% year on year. Sales at department stores showed a sign of recovery as the sales in the 4Q 2020 achieved approx. twice as much as that in the 2Q 2020 enjoying boosting consumption affected by such as Go To Campaign. At supermarkets that mainly sell daily necessities, the sales also increased by an average of 3.6% nationwide, and sales remained firm even under the impact of COVID-19. In addition, according to a survey of trends in the service industry conducted by the Statistics Bureau of the Ministry of Internal Affairs and Communications, restaurant sales decreased 21.1% from the same quarter of the previous year.

As for hotels, according to the Japan Tourism Agency's Accommodation Travel Statistical Survey, the total - 2 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

number of guests in the second half of 2020 (Jul. to Dec.) decreased by 45.7% year-on-year. The number of overseas visitors to Japan, as announced by the Japan National Tourism Organization, also fell 98.9% in the second half of the year. As in the first half of 2020, the hotel industry as a whole has been significantly negatively affected by restrictions on the movement of people domestically and overseas due to COVID-19. In the second half of 2020, demand for lodging in Japan showed some signs of recovery due to Go To Travel Campaign and other factors. However, it will take a certain amount of time for lodging demand to fully recover due to uncertainty about the outlook for the convergence of COVID-19. In addition, the number of overseas visitors to Japan remains at an extremely low level due to the continuing global prevalence of COVID-19 and the restrictions on inbound visits due to the confirmation of the existence of COVID-19 variants.

As for the real estate buy-sell market, while the trading of hotels, which are heavily affected by COVID-19, remained stagnant. However, the overall market saw continued investment activities, particularly in asset types such as apartments and logistics facilities, following the backdrop of a favorable financing environment, and multiple large-scale transactions, such as the sale of the head office buildings were observed.

(NOTE) For more information on the survey, please refer to the website (https://soken.xymax.co.jp/) of Xymax Real Estate Institute Co., Ltd.

Management Status
As of the last day of the fiscal period under review, XYMAX REIT had 13 properties in its portfolio. Its total acquisition price stood at 34,105 million yen, a total leasable area at 76,010.33 m2 and total leased area at 75,168.96 m2. The occupancy rate as of the last day of the fiscal period under review was 98.9%.

IV. Financing Status (Equity Financing)

In the fiscal period under review, XYMAX REIT did not procure funds through issuance of new investment units. As of the last day of the fiscal period under review, unitholders' capital was 22,585 million yen.

(Debt Financing)

In the period under review, XYMAX REIT borrowed a new loan of 1,100 million yen on September 1, 2020 and applied it to the part of purchase price of the new property. In addition, XYMAX REIT implemented re-financing of both short- term loans of 1,914 million yen and long-term loans of 2,336 million yen on January 29, 2021, the maturity date of such loans.

As a result, as of the last day of the fiscal period under review, the balance of loans outstanding was 12,780 million yen.

1. Overview of Business Performance
  Business performance in the fiscal period under review resulted in operating revenue of 1,293 million yen, operating income of 716 million yen, ordinary income of 651 million yen and net income of 650 million yen.
  Concerning distribution for the fiscal period under review, pursuant to the distribution policy provided in XYMAX REIT's Articles of Incorporation, the decision was made to distribute unappropriated retained earnings in the amount of 650,317,400 yen, which is the largest integral multiple of the total number of investment units issued and outstanding (223,400 units) by application of special provisions for taxation on investment corporations (Article 67- 15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957, as amended)). This resulted in distribution per unit of 2,911 yen.
Outlook for the Next Fiscal Period
1. General Management Outlook

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 a sponsor support agreement with XYMAX Corporation with the aim to lead such needs to property acquisition opportunities for XYMAX REIT.
Internal Growth Strategy
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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Utilization of the real estate management insight and know-how and network of the XYMAX Group

Through 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.

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 in fund 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.

Significant Subsequent Events Not applicable.

Operating Forecasts
XYMAX REIT's operating forecasts for the fiscal period ending August 2021 (from March 1, 2021 to August 31, 2021) and Fiscal Period Ending February 2022 (from September 1, 2021 to February 28, 2022) are as follows:

					Distribution	Distribution
	Operating	Operating	Ordinary		per unit
	Net income	(excluding	in excess of
	revenue	income	income	distribution	earnings
					in excess of	per unit
					earnings)
Fiscal period	million yen	million yen	million yen	million yen	yen	yen
ending Aug. 2021	1,291	676	623	622	2,788	-
Fiscal period	1,321	706	641	640	2,867	-
ending Feb. 2022

Furthermore, for the assumptions underlying the operating forecasts, please refer to "Assumptions Underlying the Operating Forecasts for the Fiscal Period Ending August 2021 (from March 1, 2021 to August 31, 2021) and Fiscal Period Ending February 2022 (from September 1, 2021 to February 28, 2022)" presented later in this document.

(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 earnings per unit may
	vary due to changes in the circumstances. In addition, the forecasts are not a guarantee of the amount of distribution.

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Assumptions Underlying the Operating Forecasts for the Fiscal Period Ending August 2021 (from March 1, 2021 to August 31, 2021) and Fiscal Period Ending February 2022 (from September 1, 2021 to February 28, 2022)

Item			Assumption
Accounting		Fiscal period ending August 2021 (7th fiscal period)
	(from March 1, 2021 to August 31, 2021) (184 days)
period		Fiscal period ending February 2022 (8th fiscal period)
	(from September 1, 2021 to February 28, 2022) (181 days)
		The assumption is that the real estate trust beneficiary rights held by XYMAX REIT as of August 31, 2020
Assets under		(total of 12 properties) and the real estate trust beneficiary rights of Life Fukuizumi Store acquired on
	September 1, 2020 [total of 13 properties](hereinafter, the "current portfolio assets") will continue to
management		be held and there will be no acquisition of new properties other than the current portfolio assets
		through to the end of the fiscal period ending February 2022 (8th 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 of lease
		agreements entered into for the current portfolio assets and past tenant and market trends, and by
		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 budgeted assuming the negative impact of the spread of COVID-19 will be prolonged at
		least more than 12 month onward. Therefore, the budgeted amount was calculated in accordance with
		the formula set-forth in the Lease Agreement based on the conservatively amended operating budget
		prepared by the operator. In addition, the operator petitioned for commencement of civil rehabilitation
		proceedings to the Tokyo District Court and it has been accepted, then the Court decided to commence
		the procedures on March 18, 2021. During the process, XYMAX REIT received the operator's intention
		to continue the operation of the subject hotel based on the current Lease Agreement in writing.
		Therefore, XYMAX REIT assumes the rent conditions agreed with the operator will continue to be
		effective.
Operating		[Hotel Vista Sendai]
	Fixed rent:	20 million yen per month from fiscal period ending February 2022 (8th Fiscal period)
revenue		Variable rent: For the fiscal period ending August 2021 (7th fiscal period), calculated by multiplying
		GOP of the current month (Note 1) by a certain percentage (Note 2)
			For the fiscal period ending February 2022, calculated by multiplying the amount
			obtained by subtracting 21 million yen from the GOP of the current month (Note 3) by
		(Note 1)	a certain percentage (Note 2).
		If the GOP of the current month becomes negative, the variable rent for the current
		(Note 2)	month shall be 0 yen.
		The percentage shall not be disclosed because the consent of the Lessee has not been
		(Note 3)	obtained.
		If the amount obtained by subtracting 21 million yen from the GOP of the current month
			becomes negative, the variable rent for the current month shall be 0 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: Fiscal period	Fiscal period
				ending Aug. 2021	ending Feb. 2022
		Expenses related to leasing business [Total]	(7th fiscal period)	(8th fiscal period)
		494 million yen	493 million yen
		Management fees	84 million yen	84 million yen
		Repair expenses	29 million yen	37 million yen
Operating		Property taxes	137 million yen	137 million yen
	Depreciation	135 million yen	140 million yen
expenses		Other than expenses related to leasing business	120 million yen	122 million yen
	[Total]		75 million yen	75 million yen
		Asset management fees
		Expenses related to leasing business, which are the main operating expenses, are calculated on the
		basis of 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.
		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 in amount or
			- 5 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Item		Assumption
		additionally arising from unforeseeable factors, the amount generally tending to vary materially 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.
Non-operating		For the fiscal period ending August 2021 (7th fiscal period), interest expenses and other borrowing
	related expenses are assumed to be 53 million yen.
expenses		For the fiscal period ending February 2022 (8th fiscal period), interest expenses and other borrowing
	related expenses are assumed to be 64 million yen.
		The assumption is that total interest-bearing liabilities will be 12,780 million yen at the end of the fiscal
		period ending August 2021 (7th fiscal period) and 12,780 million yen at the end of the fiscal period
Interest-bearing		ending February 2022 (8th fiscal period). Short-term loans of 500 million yen and long-term loans of
	3,088 million are due in the fiscal period ending February 2022. The assumption is that these will be
liabilities		repaid with funds procured through loans, etc.
		LTV ratio is expected to be 34.0% at the end of the fiscal period ending August 2021 (7th fiscal period)
		and 34.0 % at the end of the fiscal period ending February 2022 (8th fiscal period). In addition, the
		following 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 is 223,400 units as of
		the end of the fiscal period ended February 2021 and that there will be no change in the number of
Investment units		investment units due to issuance of new investment units, etc. through to the end of the fiscal period
	ending February 2022 (8th fiscal period).
		Distribution per unit (excluding distribution in excess of earnings) and distribution in excess of
		earnings per unit are calculated on the basis of the forecast total number of investment units issued
		and outstanding at the end of the fiscal period ending August 2021 (7th fiscal period) and fiscal period
		ending February 2022 (8th fiscal period) of 223,400 units.
Distribution		Distribution per unit (excluding distribution in excess of earnings) is calculated based on the
per unit		assumption that distribution will be in accordance with the cash distribution policy provided in XYMAX
(excluding		REIT's Articles of Incorporation.
distribution		Distribution per unit (excluding distribution in excess of earnings) may vary due to various factors,
in excess of		such as fluctuation in rent revenue accompanying change in assets under management, change in
earnings)		tenants, etc. or incurrence of unexpected repairs.
Distribution		No cash distribution in excess of earnings (distribution in excess of earnings per unit) is scheduled to
in excess of
earnings		be made at this point in time.
per unit	 The assumption is that there will be no revision of laws and regulations, tax systems, accounting
		standards, listing regulations provided by Tokyo Stock Exchange, rules provided by The Investment
Other		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, real
		estate market conditions, etc.

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

2. Financial Statements

(1) Balance Sheet

			(Unit: thousand yen)
		5th fiscal period	6th fiscal period
Assets	(As of Aug. 31, 2020)	(As of Feb. 28, 2021)
Current assets
Cash and bank deposits	1,022,211	986,598
Cash and bank deposits in trust	1,974,404	1,881,240
Operating accounts receivable	21,642	17,736
Prepaid expenses	32,279	37,043
Other	554	865
Total current assets	3,051,092	2,923,484
Non-current assets
Property, plant and equipment
Tools, furniture and fixtures	109,618	109,618
Accumulated depreciation	(69,781 )	(82,383 )
Tools, furniture and fixtures, net	39,837	27,234
Buildings in trust	9,309,855	9,524,508
Accumulated depreciation	(539,569 )	(657,756 )
Buildings in trust, net	8,770,285	8,866,751
Structures in trust	54,827	73,944
Accumulated depreciation	(4,415 )	(5,989 )
Structures in trust, net	50,411	67,954
Tools, furniture and fixtures in trust	28,437	29,743
Accumulated depreciation	(3,402 )	(5,877 )
Tools, furniture and fixtures in trust, net	25,034	23,865
Land in trust	24,606,271	25,529,781
Construction in progress in trust	5,511	-
Total property, plant and equipment	33,497,350	34,515,588
Investments and other assets
Long-term prepaid expenses	39,058	46,443
Deferred tax assets	11	13
Lease and guarantee deposits	22,600	22,600
Other	106,862	128,095
Total investments and other assets	168,532	197,153
Total non-current assets	33,665,883	34,712,741
Total assets		36,716,975	37,636,226

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

				(Unit: thousand yen)
		5th fiscal period	6th fiscal period
Liabilities	(As of Aug. 31, 2020)	(As of Feb. 28, 2021)
Current liabilities
Operating accounts payable		125,758		100,018
Short-term loans payable		814,000		500,000
Current portion of long-term borrowings		2,336,000		3,088,000
Accounts payable - other		105,716		94,359
Income taxes payable		841		891
Accrued consumption taxes		34,459		7,973
Advances received		198,430		166,214
Other		3,501		9,347
Total current liabilities		3,618,707		3,966,804
Non-current liabilities
Long-term loans payable		8,530,000		9,192,000
Tenant leasehold and security deposits in trust		1,258,186		1,241,265
Total non-current liabilities		9,788,186		10,433,265
Total liabilities		13,406,893		14,400,070
Net assets
Unitholders' equity
Unitholders' capital		22,585,746		22,585,746
Surplus
Unappropriated retained earnings		724,336		650,410
(undisposed loss)
Total surplus		724,336		650,410
Total unitholders' equity	※１	23,310,082	※１	23,236,156
Total net assets		23,310,082		23,236,156
Total liabilities and net assets			36,716,975		37,636,226

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

(2) Statement of Income				(Unit: thousand yen)
		5th fiscal period	6th fiscal period
		From: Mar. 1, 2020	From: Sep. 1, 2020
Operating revenue	To: Aug. 31, 2020	To: Feb. 28, 2021
※１	1,258,613	※１	1,200,153
Leasing business revenue
Other leasing business revenue	※１	105,909	※１	93,222
Total operating revenue		1,364,523		1,293,375
Operating expenses	※１	469,247	※１	456,312
Expenses related to leasing business
Asset management fees			78,106			76,213
Asset custody fees			823			826
Administrative service fees			9,932			10,641
Directors' compensations			2,400			2,400
Other operating expenses			32,050			30,499
Total operating expenses			592,560		576,894
Operating income			771,962		716,481
Non-operating income
Interest income			14			14
Insurance payment received			-			475
Total non-operating income			14			490
Non-operating expenses
Interest expenses			36,745			37,894
Borrowing related expenses			10,194			27,850
Total non-operating expenses			46,940			65,744
Ordinary income			725,036		651,227
Income before income taxes			725,036		651,227
Income taxes - current			843			893
Income taxes - deferred			4			(2 )
Total income taxes			848			891
Net income			724,188		650,336
Retained earnings brought forward			147			73
Unappropriated retained earnings (undisposed loss)				724,336		650,410

- 9 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Statement of Unitholders' Equity
5th fiscal period (from March 1, 2020 to August 31, 2020)

			Unitholders' equity		(Unit: thousand yen)

			Surplus		Total	Total
	Unitholders' capital	Unappropriated		Total	net assets
	retained earnings		unitholders' equity
Balance as of			(undisposed loss)		surplus
	22,585,746	671,911		671,911	23,257,657	23,257,657
March 1, 2020
Changes of items
during period			(671,763)		(671,763)	(671,763)	(671,763)
Dividends of surplus
Net income			724,188		724,188	724,188	724,188
Total changes		-	52,424		52,424	52,424	52,424
during period
Balance as of	*1	22,585,746	724,336		724,336	23,310,082	23,310,082
August 31, 2020

6th fiscal period (from September 1, 2020 to February 28, 2021)

			Unitholders' equity		(Unit: thousand yen)

			Surplus		Total	Total
	Unitholders' capital	Unappropriated		Total	net assets
	retained earnings		unitholders' equity
Balance as of			(undisposed loss)		surplus
	22,585,746	724,336		724,336	23,310,082	23,310,082
September 1, 2020
Changes of items
during period			(724,262)		(724,262)	(724,262)	(724,262)
Dividends of surplus
Net income			650,336		650,336	650,336	650,336
Total changes		-	(73,925)		(73,925)	(73,925)	(73,925)
during period
Balance as of	*1	22,585,746	650,410		650,410	23,236,156	23,236,156
February 28, 2021

- 10 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

(4)	Statement of Cash Distribution		5th fiscal period			6th fiscal period

		Classification		From: Mar. 1, 2020			From: Sep. 1, 2020
				To: Aug. 31, 2020			To: Feb. 28, 2021
	I.	Unappropriated retained earnings			724,336,212 yen		650,410,246 yen
	II.	Amount of distribution			724,262,800 yen		650,317,400 yen
		[Amount of distribution per unit]					[3,242 yen]			[2,911 yen]
	III. Retained earnings carried forward					73,412 yen			92,846 yen
	Method of calculation of	Pursuant to	the	cash	distribution	Pursuant to the cash distribution
	amount of distribution	policy	stipulated	in	Article	35,	policy stipulated in Article 35,
			Paragraph 1 of XYMAX REIT's Articles	Paragraph 1 of XYMAX REIT's Articles
			of Incorporation,	amount	of	of Incorporation,	amount	of
			distribution must be equal or less	distribution must be equal or less
			than the amount of profit and exceed	than the amount of profit and exceed
			90% of XYMAX REIT's distributable	90% of XYMAX REIT's distributable
			profit that is defined by Article 67-15	profit that is defined by Article 67-15
			of the Act on Special Measures	of the Act on Special Measures
			Concerning Taxation. Based on this	Concerning Taxation. Based on this
			policy, XYMAX REIT has decided to	policy, XYMAX REIT has decided to
			distribute 724,262,800 yen, which is	distribute 650,317,400 yen, which is
			the maximum value of the integral	the maximum value of the integral
			multiple of the total number of units	multiple of the total number of units
			issued	and	outstanding (223,400	issued	and outstanding (223,400
			units), not exceeding unappropriated	units), not exceeding unappropriated
			retained earnings.	does	not	make	retained earnings.		make
			XYMAX	REIT	XYMAX	REIT does not
			distribution in excess of earnings	distribution in excess of earnings
			defined by Article 35, Paragraph 2 of	defined by Article 35, Paragraph 2 of
			XYMAX	REIT's	Articles	of	XYMAX	REIT's	Articles	of
			Incorporation.				Incorporation.

- 11 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

(5) Statement of Cash Flows			(Unit: thousand yen)
		5th fiscal period	6th fiscal period
		From: Mar. 1, 2020	From: Sep. 1, 2020
Cash flows from operating activities	To: Aug. 31, 2020	To: Feb. 28, 2021
Income before income taxes		725,036	651,227
Depreciation		129,226	134,838
Interest income		(14 )	(14 )
Interest expenses		36,745	37,894
Decrease (increase) in operating accounts receivable		2,261	3,906
Decrease (increase) in prepaid expenses		1,467	(4,764 )
Increase (decrease) in operating accounts payable		12,325	(28,705 )
Increase (decrease) in accounts payable - other		9,427	(5,845 )
Increase (decrease) in accrued consumption taxes		5,112	(26,486 )
Increase (decrease) in advances received		14,734	(32,216 )
Decrease (increase) in long-term prepaid expenses		2,052	(7,385 )
Other		(16,030 )	(18,258 )
Subtotal		922,345	704,190
Interest income received		14	14
Interest expenses paid		(36,943 )	(37,420	)
Income taxes paid		(939 )	(843 )
Net cash provided by (used in) operating activities		884,477	665,941
Cash flows from investing activities
Purchase of property, plant and equipment in trust		(121,636 )	(1,155,620 )
Repayments of tenant leasehold and security deposits in trust		(17,399 )	(80,874 )
Proceeds from tenant leasehold and security deposits in trust		22,611	65,723
Net cash provided by (used in) investing activities		(116,424 )	(1,170,772 )
Cash flows from financing activities
Increase in short-term loans payable		-	1,600,000
Decrease in short-term loans payable		-	(1,914,000 )
Increase in long-term loans payable		-	3,750,000
Decrease in long-term loans payable		-	(2,336,000 )
Dividends paid		(672,343 )	(723,945 )
Net cash provided by (used in) financing activities		(672,343 )	376,054
Net increase (decrease) in cash and cash equivalents		95,710	(128,776 )
Cash and cash equivalents at beginning of period	※１	2,900,905	※１ 2,996,615
Cash and cash equivalents at end of period			2,996,615	2,867,839

- 12 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Notes on the Going Concern Assumption Not applicable.
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		10-51 years
		Tools, furniture and fixtures	2-13 years
		(2) Long-term prepaid expenses
		The straight-line method is adopted.
2.	Standards for	Accounting for fixed property tax, etc.
	revenue and expense	For fixed property tax, city planning tax, depreciable property tax, etc. on real estate or
	recognition	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 fiscal 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 that have
		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 fiscal period under review, amount of
		fixed property tax, etc. included in the cost of acquisition of the real estate, etc. is 4,383
		thousand yen. No such cost of acquisition was occurred in the previous fiscal period.
3.	Method of	(1) Hedge accounting approach
	hedge accounting	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 the
		requirements for special treatment.
4. Scope of funds in the	The funds (cash and cash equivalents) in the statement of cash flows comprise cash on
	statement of cash flows	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 that are
5.	Other significant	readily convertible to cash and that are subject to a low risk of changes in value.
(1) Accounting for trust beneficiary rights that have real estate, etc. as trust assets
	matters serving as the	Concerning trust beneficiary rights that have real estate, etc. as trust assets held, all
	basis for preparation of	accounts of assets and liabilities within trust assets and all accounts of revenue and
	the financial	expenses from the trust assets are recognized in the relevant account item of the
	statements	balance sheet and the statement of income.
		Furthermore, the following material items of the trust assets recognized in the
		relevant account item are separately listed on the balance sheet.
		(i) Cash and bank deposits in trust
		(ii) Buildings in trust; Structures in trust; Tools, furniture and fixtures in trust; Land
		in trust; Construction in progress 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.
		- 13 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

[Accounting standards not yet applied]

Income Recognition Accounting Standard for Revenue Recognition (ASBJ Statement No.29, on March 31, 2020, Accounting Standards Board of Japan)
Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30, on March 31,

2020, Accounting Standards Board of Japan)

・Implementation Guidance on Disclosure about Fair Value of Financial Instruments ( ASBJ Guidance No. 19, on March 31, 2020, Accounting Standards Board of Japan)

1. Overview

The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) jointly developed comprehensive accounting standards for revenue recognition. In May 2014, the International Accounting Standards Board and the Financial Accounting Standards Board published "Revenue from Contracts with Customers" (IFRS No. 15 in IASB and Topic606 in FASB). IFRS No. 15 has been applied from the fiscal year beginning on or after January 1, 2018, and Topic606 has been applied from the fiscal year beginning on or after December 15, 2017. In light of these circumstances, the Comprehensive Accounting Standards for Revenue Recognition have been developed and published in conjunction with the Guidelines by the Corporate Accounting Standards Board. The Basic Policy for Developing Accounting Standards for Revenue Recognition by the Corporate Accounting Standards Board is to establish accounting standards starting from the incorporation of the Basic Principles of IFRS No. 15 from the standpoint of comparability between financial statements, which is one of the benefits that are consistent with IFRS No. 15, and to add alternative treatment to the extent that comparability is not impaired, if there are items that should be considered in the practice that have been carried out in Japan.

*2. Scheduled date for application

Effective from the beginning of the fiscal year ending February 2022. *3. Impact of adoption of these accounting standards

The impact on the financial statements of the adoption of the "Accounting Standard for Revenue Recognition" and other standards is currently being evaluated.

Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, on July 4, 2019 Accounting Standards Board of Japan)

・ Accounting Standard for Financial Instruments (ASBJ Statement No. 10, on July 4, 2019 Accounting Standards Board of Japan)

Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31, on July 4, 2019, Accounting Standards Board of Japan)
Implementation Guidance on Disclosure about Fair Value of Financial Instruments ( ASBJ Guidance No. 19, on March

31, 2020, Accounting Standards Board of Japan)

1. Overview

IASB and FASB have established detailed guidance for fair value measurement (IFRS 13 "Fair Value Measurement" by IFRS and Topic 820 "Fair Value Measurement" by FASB). In order to improve the comparability between the international accounting standard and Japanese accounting standard, ASBJ has mainly considered guidance and disclosure on fair value of financial instruments and published the accounting standard and implementation guidance for fair value measurement accordingly.

As the basic policy of ASBJ for the development of accounting standard for fair value measurement, ASBJ basically adopted all provisions of IFRS 13 by using a unified calculation method, from the point of view of improving the comparability between the financial statements based on IFRS or U.S. GAAP and Japanese GAAP. Moreover, in consideration of the actual practice conducted in Japan, other treatments for individual items are established within the scope not to fail the comparability

*2. Scheduled date for application

Effective from the beginning of the fiscal year ending February 2022. *3. Impact of adoption of these accounting standards

The impact on the financial statements of the adoption of the Accounting Standard for the Calculation of Market Value, etc. is currently being evaluated.

- 14 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

・ Accounting Standard for Disclosure of Accounting Estimates (ASBJ Statement No.31, on March 31, 2020, Accounting Standards Board of Japan)

* 1. Overview

With regard to "sources of estimation uncertainty" which are required to be disclosed under Paragraph 125 of International Accounting Standard ("IAS") 1 "Presentation of Financial Statements" ("IAS 1") issued in 2003 by IASB, ASBJ was requested to examine disclosures of such information under Japanese GAAP as useful information for users of financial statements. Accordingly, ASBJ has developed and published the accounting standard for disclosures of accounting estimates (the "Accounting Standard").

The basic policy of ASBJ for the development of the Accounting Standard was to provide general principles (disclosure objectives) instead of expanding required information in the notes, and an entity shall determine specific disclosures in accordance with its disclosure objectives. The development of this standard is based on Paragraph 125 of IAS 1.

*2. Scheduled date for application

Effective from the beginning of the fiscal year ending August 2021.

・Accounting Standard for Accounting Policy Disclosures, Accounting Changes, and Error Corrections (ASBJ Statement No.24, on March 31, 2020,Accounting Standards Board of Japan)

* 1. Overview

Following the recommendation to examine enhancements to note concerning "application of principles of accounting policies and procedures where provisions related accounting standards are not available," necessary amendments were made and the accounting standard for accounting policy disclosures, accounting changes, and error corrections was published by ASBJ.

When enhancing note information concerning "application of principles of accounting policies and procedures where provisions of related accounting standards are not available," in order to ensure consistency with past actual practice in case the provisions of related accounting standards are clear, the provisions in the Notes on Corporate Accounting Principles (Note 1-2) have been followed.

*2. Scheduled date for application

Effective from the beginning of the fiscal year ending August 2021.

- 15 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Notes on the Financial Statements [Notes on the Balance Sheet]
*1. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations

	5th fiscal period		6th fiscal period
	(As of Aug. 31, 2020)		(As of Feb. 28, 2021)
	50,000 thousand yen		50,000 thousand yen
	[Notes on the Statement of Income]					(Unit: thousand yen)
*1. Breakdown of operating income (loss) from real estate leasing business
				5th fiscal period	6th fiscal period
				From: Mar. 1, 2020	From: Sep. 1, 2020
	A. Operating revenue from real estate leasing business	To: Aug. 31, 2020	To: Feb. 28, 2021
	Lease business revenue		1,107,412		1,052,005
	Rent revenue		1,258,613	1,200,153
	Common area maintenance revenue		151,201	148,148
	Other lease business revenue		54,508		53,885
	Utility reimbursement
	Parking revenue		31,548	105,909	32,164	93,222
	Other rental revenue		19,852	7,172
	Total operating revenue from real estate leasing		1,364,523		1,293,375
	B. Operating expenses from real estate leasing
	Expenses related to leasing business		133,746		133,386
	Tax and public dues
	Maintenance fees		84,120		84,331
	Utility expenses		49,901		45,456
	Repair expenses		31,670		31,927
	Insurance premiums		3,541		3,517
	Depreciation		129,226	469,247	134,838	456,312
	Other expenses related to rent business	37,040	22,854
	Total operating expenses from real estate leasing		469,247		456,312
	C. Operating income (loss) from real estate leasing [A-B]		895,276		837,062

- 16 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

[Notes on the Statement of Unitholders' Equity]

*1. Total number of investment units authorized and total number of investment units issued and outstanding

	5th fiscal period	6th fiscal period
	From: Mar. 1, 2020	From: Sep. 1, 2020
	To: Aug. 31, 2020	To: Feb. 28, 2021
Total number of investment units authorized	5,000,000 units	5,000,000 units
Total number of investment units issued and outstanding	223,400 units	223,400 units

[Notes on the Statement of Cash Flows]

*1. Reconciliation of cash and cash equivalents at end of period to the amount of balance sheet items

		(Unit: thousand yen)
	5th fiscal period	6th fiscal period
	From: Mar. 1, 2020	From: Sep. 1, 2020
	To: Aug. 31, 2020	To: Feb. 28, 2021
Cash and bank deposits	1,022,211	986,598
Cash and bank deposits in trust	1,974,404	1,881,240
Cash and cash equivalents	2,996,615	2,867,839

[Notes on Financial Instruments]

1. Matters concerning status of financial instruments

(1) Policy for handling financial instruments

XYMAX REIT shall procure funds for acquisition of assets, repayment of liabilities, etc. through issuance of investment units, borrowing from financial institutions, issuance of investment corporation bonds, etc. Due consideration shall be given to the balance between agility in fund procurement and financial stability when procuring funds.

Surplus funds may be invested in securities and monetary claims, but shall be invested as bank deposits as a rule in consideration of security.

Derivative transactions may be utilized only if for the purpose of hedging the risk of fluctuation in interest rates, etc., but no speculative transactions shall be conducted.

Description of financial instruments and associated risks, and risk management system
Bank deposits are those for investing XYMAX REIT's surplus funds and are exposed to credit risk, such as failure of the depository financial institutions, but the credit risk is limited by limiting the deposit period to short term and transacting with depository financial institutions that have high credit rating.
Loans are those for mainly the purpose of acquisition of real estate, etc., repayment of liabilities, etc. and are exposed to the liquidity risk of not being able to procure substitute funds upon maturity, but the liquidity risk is mitigated through diversification of fund procurement means and sources, staggering of maturities and securing liquidity on hand and the liquidity risk is also managed by preparing monthly fund management plans and other means. In addition, loans with floating interest rates are exposed to the risk of rise in interest rates payable, but the impact of the rise in market interest rates on XYMAX REIT's operations is limited by keeping the ratio of interest-bearing liabilities to total assets at a low level and maintaining a balance between the ratio of loans with floating interest rates and the ratio of loans with fixed interest rates.
Derivative transactions are utilized for the purpose of hedging the risk of fluctuation in interest rates payable on certain loans. For the hedge accounting approach, hedged items, contract amount, etc., please refer to "2. Matters concerning fair value, etc. of financial instruments."
Tenant leasehold and security deposits are deposits from tenants and are exposed to liquidity risk from tenants vacating, but the risk is limited by retaining an amount in the range that will not hinder the return of deposits as a rule.
- 17 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Supplementary explanation to matters concerning fair value, etc. of financial instruments
The fair value of financial instruments is values based on market price, but may otherwise include values based on reasonable calculation when no market price is available. Variable factors are taken into account in the calculation of the concerned values. Accordingly, the concerned values may vary when different assumptions are adopted. In addition, the contract amount, etc. of derivative transactions in "2. Matters concerning fair value, etc. of financial instruments" do not itself represent the market risk involved in the derivative transactions.

2. Matters concerning fair value, etc. of financial instruments

The following are the carrying amount and fair value as of August 31, 2020, and the amount of difference between these. Financial instruments for which estimation of fair value is recognized to be extremely difficult are not included in the following table. (Please refer to Note 2 below.)

		Carrying amount	Fair value	Amount of difference
		(thousand yen)	(thousand yen)	(thousand yen)
(1)	Cash and bank deposits	1,022,211	1,022,211	-
(2)	Cash and bank deposits in trust	1,974,404	1,974,404	-
	Total assets	2,996,615	2,996,615	-
(1)	Short-term loans payable	814,000	814,000	-
(2)	Current portion of long-term
(3)	borrowings	2,336,000	2,336,000	-
Long-term loans payable	8,530,000	8,567,813	37,813
	Total liabilities	11,680,000	11,717,813	37,813
	Derivative transactions	-	-	-

The following are the carrying amount and fair value as of February 28, 2021, and the amount of difference between these. Financial instruments for which estimation of fair value is recognized to be extremely difficult are not included in the following table. (Please refer to Note 2 below.)

		Carrying amount	Fair value	Amount of difference
		(thousand yen)	(thousand yen)	(thousand yen)
(1)	Cash and bank deposits	986,598	986,598	-
(2)	Cash and bank deposits in trust	1,881,240	1,881,240	-
	Total assets	2,867,839	2,867,839	-
(1)	Short-term loans payable	500,000	500,000	-
(2)	Current portion of long-term
(3)	borrowings	3,088,000	3,088,000	-
Long-term loans payable	9,192,000	9,200,968	8,968
	Total liabilities	12,780,000	12,788,968	8,968
	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 and thus stated at that book value.

Liabilities

Short-termloans payable
Because these are settled in a short period of time and have floating interest rates, the fair value is approximately the same as the book value and thus stated at that book value.
Current portion of long-term borrowings, (3) Long-term loans payable
Of long-term loans payable, because those with floating interest rates reflect market interest rates in a short period of time, the fair value is thought to resemble the book value and thus stated at that book value. However, in the case of long-term loans payable with floating interest rates that qualify for special treatment for interest rate swaps (please refer to "Notes on Derivative Transactions" presented later in this document) and long-term loans payable with fixed interest 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.
- 18 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Derivative transactions

Please refer to "Notes on Derivative Transactions" below

(Note 2) Financial instruments for which estimation of fair value is recognized to be extremely difficult

	5th fiscal period	6th fiscal period
Tenant leasehold and security deposits	(As of Aug. 31, 2020)	(As of Feb. 28, 2021)
1,258,186 thousand yen	1,241,265 thousand yen
in trust

Tenant leasehold and security deposits in trust are not subject to disclosure of fair value, because there being no market price and, even if the lease 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.

(Note 3) Amount of redemption of monetary claims scheduled to be due after the end of the fiscal period (August 31, 2020) (Unit: thousand yen)

	Due within	Due after	Due after	Due after	Due after	Due after
	1 year	1 to 2 years	2 to 3 years	3 to 4 years	4 to 5 years	5 years
Cash and bank deposits	1,022,211	-	-	-	-	-
Cash and bank deposits in trust	1,974,404	-	-	-	-	-
Total	2,996,615	-	-	-	-	-

Amount of redemption of monetary claims scheduled to be due after the end of the fiscal period (February 28, 2021) (Unit: thousand yen)

		Due within	Due after	Due after	Due after	Due after	Due after
		1 year	1 to 2 years	2 to 3 years	3 to 4 years	4 to 5 years	5 years
	Cash and bank deposits	986,598	-	-	-	-	-
	Cash and bank deposits in trust	1,881,240	-	-	-	-	-
	Total	2,867,839	-	-	-	-	-
(Note 4) Amount of repayment of loans scheduled to be due after the end of the fiscal period (August 31, 2020)
						(Unit: thousand yen)
		Due within	Due after	Due after	Due after	Due after	Due after
		1 year	1 to 2 years	2 to 3 years	3 to 4 years	4 to 5 years	5 years
	Short-term loans payable	814,000	-	-	-	-	-
	Long-term loans payable	2,336,000	3,088,000	2,646,000	2,796,000	-	-
	Total	3,150,000	3,088,000	2,646,000	2,796,000	-	-

Amount of repayment of loans scheduled to be due after the end of the fiscal period (February 28, 2021)

(Unit: thousand yen)

	Due within	Due after	Due after	Due after	Due after	Due after
	1 year	1 to 2 years	2 to 3 years	3 to 4 years	4 to 5 years	5 years
Short-term loans payable	500,000	-	-	-	-	-
Long-term loans payable	3,088,000	2,796,000	3,426,000	1,920,000	1,050,000	-
Total	3,588,000	2,796,000	3,426,000	1,920,000	1,050,000	-

- 19 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

［Notes on Derivative Transactions］

1. Derivative transactions to which hedge accounting is not applied 5th fiscal period (as of August 31, 2020)

Not applicable.

6th fiscal period (as of February 28, 2021) Not applicable.

2. Derivative transactions to which hedge accounting is applied 5th fiscal period (as of August 31, 2020)

The following is the contract amount or the amount equivalent to the principal provided in the contract, etc. at the end of the fiscal period for each hedge accounting approach.

(Unit: thousand yen)

Hedge accounting	Type, etc. of	Main hedged	Contract amount, etc. (Note 1)	Fair value
	Of which,
approach	derivative transaction	item		due after 1 year
Special treatment for	Interest rate swap	Long-term	2,336,000	-	(Note 2)
transaction
interest rate swaps	(receive floating; pay fixed)	loans payable

(Note 1) Contract amount, etc. is based on notional principal.

(Note 2) Since those with special treatment for interest rate swaps are treated integrally with hedged long-term loans payable, the fair values of such are included in the fair value of said long-term loans payable. (Please refer to [Notes on Financial Instruments] 2. Matters concerning fair value, etc. of financial instruments (Note 1) Method of calculation of the fair value of financial instruments and matters concerning derivative transactions, Liabilities (2) Current portion of long-term borrowings.)

6th fiscal period (as of February 28, 2021)

The following is the contract amount or the amount equivalent to the principal provided in the contract, etc. at the end of the fiscal period for each hedge accounting approach.

(Unit: thousand yen)

Hedge accounting	Type, etc. of	Main hedged	Contract amount, etc. (Note 1)	Fair value
	Of which,
approach	derivative transaction	item		due after 1 year
Special treatment for	Interest rate swap	Long-term	630,000	630,000	(Note 2)
transaction
interest rate swaps	(receive floating; pay fixed)	loans payable

(Note 1) Contract amount, etc. is based on notional principal.

[Notes on Tax-Effect Accounting]

1. Breakdown of main causes for occurrence of deferred tax assets and deferred tax liabilities

			(Unit: thousand yen)
		5th fiscal period	6th fiscal period
Deferred tax assets		(As of Aug. 31, 2020)	(As of Feb. 28, 2021)
Non-deductible accrued enterprise tax	11	13
Total		11	13
Deferred tax assets, net	11	13
	- 20 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

2. Breakdown of major components that caused any significant differences between the statutory tax rate and the effective income tax rate after application of tax-effect accounting

		(Unit: %)
	5th fiscal period	6th fiscal period
	(As of Aug. 31, 2020)	(As of Feb. 28, 2021)
Statutory tax rate	31.46	31.46
[Adjustments]	(31.43)	(31.42)
Distribution deductible for tax purposes
Other	0.09	0.10
Effective income tax rate after application of tax-effect accounting	0.12	0.14

[Notes on Related-Party Transactions]

1. Parent company, major corporate unitholder, etc. 5th fiscal period (from March 1, 2020 to August 31, 2020) Not applicable.

6th fiscal period (from September 1, 2020 to February 28, 2021) Not applicable.

2. Affiliated company, etc.

5th fiscal period (from March 1, 2020 to August 31, 2020) Not applicable.

6th fiscal period (from September 1, 2020 to February 28, 2021) Not applicable.

3. Fellow subsidiary, etc.

5th fiscal period (from March 1, 2020 to August 31, 2020) Not applicable.

6th fiscal period (from September 1, 2020 to February 28, 2021) Not applicable.

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

4. Director, major individual unitholder, etc.

5th fiscal period (from March 1, 2020 to August 31, 2020)

			Capital stock		Percentage of	Description of relationship		Transaction		Balance
	Name of		or	Description of	voting rights,			Description of		at end of
		Concurrent
Attribute	Location	investments	business	etc.	Description of	amount	Account item	period
company, etc.	in capital	or	held by (in)	holding of	transaction	(thousand	(thousand
			(thousand	occupation	XYMAX REIT	positions, etc.	relationship		yen)		yen)
			yen)	Executive	(%)	by directors			(Note 2)		(Note 2)

				Director of
				XYMAX REIT,		Executive Director of
				and		Asset
	Nobuhito			Representative		XYMAX REIT, and		Accounts
Director	-	-	Director and	-	Representative Director and	management	78,106	85,917
Inatsuki	President of	President of	fee	payable -
				XYMAX		XYMAX REAL ESTATE	(Note 3)		other
				REAL ESTATE		INVESTMENT ADVISORS
				INVESTMENT		Corporation
				ADVISORS
				Corporation

(Note 1) The above discloses a related-party transaction which includes a material transaction, among related-party transactions subject to disclosure.

(Note 2) Of the amounts above, transaction amount does not include consumption tax, etc., while balance at end of period includes consumption tax, etc.

(Note 3) The amount of asset management fee is for transactions conducted by Nobuhito Inatsuki as representative of XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation, and transaction amount is based on the terms and conditions provided in XYMAX REIT's Articles of Incorporation.

(Note 4) Transaction terms and conditions are decided based on the actual market situation.

6th fiscal period (from September 1, 2020 to February 28, 2021)

			Capital stock		Percentage of	Description of relationship		Transaction		Balance
	Name of		or	Description of	voting rights,			Description of		at end of
		Concurrent
Attribute	Location	investments	business	etc.	Description of	amount	Account item	period
company, etc.	in capital	or	held by (in)	holding of	transaction	(thousand	(thousand
			(thousand	occupation	XYMAX REIT	positions, etc.	relationship		yen)		yen)
			yen)	Executive	(%)	by directors			(Note 2)		(Note 2)

				Director of
				XYMAX REIT,		Executive Director of
				and		Asset
	Nobuhito			Representative		XYMAX REIT, and		Accounts
Director	-	-	Director and	-	Representative Director and	management	76,213	83,835
Inatsuki	President of	President of	fee	payable -
				XYMAX		XYMAX REAL ESTATE	(Note 3)		other
				REAL ESTATE		INVESTMENT ADVISORS
				INVESTMENT		Corporation
				ADVISORS
				Corporation

(Note 1) The above discloses a related-party transaction which includes a material transaction, among related-party transactions subject to disclosure.

(Note 2) Of the amounts above, transaction amount does not include consumption tax, etc., while balance at end of period includes consumption tax, etc.

(Note 4) Transaction terms and conditions are decided based on the actual market situation.

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

[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

5th fiscal period (from March 1, 2020 to August 31, 2020)

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 statement of income.
Information by geographic area
1. Operating revenue
  Information by geographic area of operating revenue is omitted, because operating revenue to external customers in Japan is in excess of 90% of operating revenue on the statement of income.
2. Property, plant and equipment
  Information by geographic area of property, plant and equipment is omitted, because the amount of property, plant and equipment located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
Information by major customer

			(Unit: thousand yen)
	Name of customer	Operating revenue	Related segment
	New Urban Life Holdings Inc.	Not disclosed (Note)	Real estate leasing business
	XYMAX Corporation	141,284	Real estate leasing business
(Note)	Not disclosed due to unavoidable circumstances	in that consent for disclosure has not been	obtained from the lessee.

6th fiscal period (from September 1, 2020 to February 28, 2021)

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 statement of income.
Information by geographic area
1. Operating revenue
  Information by geographic area of operating revenue is omitted, because operating revenue to external customers in Japan is in excess of 90% of operating revenue on the statement of income.
2. Property, plant and equipment
  Information by geographic area of property, plant and equipment is omitted, because the amount of property, plant and equipment located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
Information by major customer

			(Unit: thousand yen)
	Name of customer	Operating revenue	Related segment
	New Urban Life Holdings Inc.	Not disclosed (Note)	Real estate leasing business
	Nohara Holdings, Inc	Not disclosed (Note)	Real estate leasing business
(Note)	Not disclosed due to unavoidable circumstances	in that consent for disclosure has not been	obtained from the lessee.

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

[Notes on Investment and Rental Properties]

XYMAX REIT owns office, retail, hotel, and other properties for the purpose of earning revenue from leasing. The carrying amount, amount of increase (decrease) during period and fair value of these investment and rental properties are as follows:

		(Unit: thousand yen)
	5th fiscal period	6th fiscal period
	From: Mar. 1, 2020	From: Sep. 1, 2020
	To: Aug. 31, 2020	To: Feb. 28, 2021
Carrying amount	33,491,839	34,515,588
Balance at beginning of period	33,476,361	33,491,839
Amount of increase (decrease) during period	15,478	1,023,748
Balance at the end of the period	33,491,839	34,515,588
Fair value at the end of the period	43,225,000	44,416,000

(Note 1) Carrying amount is the amount of cost of acquisition, less accumulated depreciation.

(Note 2) Of the amount of increase (decrease) during period for 5th fiscal period, the amount of increase is mainly attributable to capital expenditure (144,705 thousand yen), while the amount of decrease is mainly attributable to depreciation (129,226 thousand yen). Of the amount of increase (decrease) during period for 6th fiscal period, the amount of increase is mainly attributable to the acquisition of one trust beneficiary right (1,085,958 thousand yen) and capital expenditure (72,627 thousand yen), while the amount of decrease is mainly attributable to depreciation (134,838 thousand yen).

(Note 3) Fair value at the end of the period is the appraisal value by an outside real estate appraiser.

(Note 4) Carrying amount does not include Construction in progress in trust.

The income (loss) concerning investment and rental properties is disclosed in "Notes on the Statement of Income."

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

[Notes on Per Unit Information]	5th fiscal period	6th fiscal period

	From: Mar. 1, 2020	From: Sep. 1, 2020
	To: Aug. 31, 2020	To: Feb. 28, 2021
Net assets per unit	104,342 yen	104,011 yen
Net income per unit	3,241 yen	2,911 yen

(Note 1) Net income per unit for 6th fiscal period is calculated by dividing net income by the period's daily weighted average number of investment units. In addition, diluted net income per unit is not stated, because there are no diluted investment units.

(Note 2) The basis for calculation of net income per unit is as follows:

	5th fiscal period	6th fiscal period
	From: Mar. 1, 2020	From: Sep. 1, 2020
	To: Aug. 31, 2020	To: Feb. 28, 2021
Net income (thousand yen)	724,188	650,336
Amount not attributable to common unitholders (thousand yen)	-	-
Net income attributable to common investment units (thousand yen)	724,188	650,336
Average number of investment units during the period (units)	223,400	223,400

[Notes on Significant Subsequent Events] Not applicable.

[Omission of Disclosure]

Disclosure of notes on lease transactions, securities, retirement benefits, equity in net income and asset retirement obligations is omitted since no substantial need for disclosure in the financial report is recognized.

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 incorporation of XYMAX REIT to the last day of the fiscal period under review are as follows:

		Total number of investment units	Unitholders' capital
		issued and outstanding	(thousand yen)
Date	Description	Increase	(units)	Balance	Increase		Balance	Remarks

Sep. 14, 2017	Incorporation through	(Decrease)	(Decrease)
3,000		3,000	300,000		300,000	(Note 1)
	private placement
Feb. 14, 2018	Capital increase through	209,905		212,905	21,224,544		21,524,544	(Note 2)
public offering
Mar. 20, 2018	Third-party allotment	10,495		223,400	1,061,201		22,585,746	(Note 3)

(Note 1) XYMAX REIT was incorporated with issuance of investment units at an issue price of 100,000 yen per unit.

(Note 2) 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 for the purpose of procuring funds for acquisition of new properties.

(Note 3) New investment units were issued with SMBC Nikko Securities Inc. as allottee at a paid-in amount of 101,115 yen per unit.

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

3. Reference Information

Investment Status

		Geographic area	5th fiscal period	6th fiscal period
Type of asset	Use	As of Aug. 31, 2020	As of Feb. 28, 2021
(Note 1)
Total amount held	As a percentage	Total amount held	As a percentage
			(million yen)	of total assets	(million yen)	of total assets
		Tokyo central	(Note 2)	(%) (Note 3)	(Note 2)	(%) (Note 3)
		14,444	39.3	14,438	38.4
		5 wards
	Office	Tokyo 23	1,176	3.2	1,173	3.1
	wards
		Tokyo	2,591	7.1	2,599	6.9
		economic area
		Tokyo	8,206	22.4	8,193	21.8
Real estate in	Retail	economic area
Cabinet order	-	-	1,083	2.9
trust		designated
		cities
	Hotel	Cabinet order	4,307	11.7	4,277	11.4
	designated
		cities
	Other	Cabinet order	2,765	7.5	2,749	7.3
	designated
		cities
Total	real estate	in trust	33,491	91.2	34,515	91.7
Deposits and other assets(Note 4)	3,225	8.8	3,120	8.3
	Total assets	36,716	100.0	37,636	100.0

(Note 1)	"Tokyo central 5 wards" refers to Tokyo's Chiyoda Ward, Chuo Ward, Minato Ward, Shinjuku Ward and Shibuya Ward.
	"Tokyo 23 wards" does not include "Tokyo central 5 wards."
	"Tokyo economic area" refers to Tokyo excluding "Tokyo central 5 wards" and "Tokyo 23 wards", Kanagawa Prefecture, Chiba Prefecture
(Note 2)	and Saitama Prefecture.
"Total amount held" is based on the carrying amount (in the case of real estate in trust, the depreciated book value) as of the end of
	each fiscal period, rounded down to the nearest million yen. Furthermore, the total amount held for real estate in trust as "Hotel"
(Note 3)	includes the book value of movables incidental to hotels.
"As a percentage of total assets" is rounded to one decimal place.
(Note 4)	Deposits and other assets include Construction in progress in trust.
		5th fiscal period		6th fiscal period

		As of Aug. 31, 2020		As of Feb. 28, 2021
		Amount		As a percentage of		Amount		As a percentage of

		(million yen)		total assets		(million yen)		total assets
		(Note 1)		(%) (Note 2)		(Note 1)		(%) (Note 2)
Total liabilities	13,406		36.5		14,400		38.3
Total net assets	23,310		63.5		23,236		61.7
Total assets	36,716		100.0		37,636		100.0

(Note 1) The total liabilities, total net assets and total assets amounts are based on the carrying amounts as of the book closing date, rounded down to the nearest million yen.

(Note 2) "As a percentage of total assets" is rounded to one decimal place.

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Investment Assets
1. 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, 2021 are as follows:

Classification	Asset					Acquisition	Share of	Book value at	Appraisal value
	Asset name	Location	Acquisition	price	Ownership status
no.		(million	portfolio	end of period	(million yen)
(Note				date	yen)	(%)	(million yen)	(Note 4)
	1)		XYMAX	Minato-ku,	Feb. 16,	(Note 2)	(Note 3)	2,515	3,120	Trust beneficiary
	OF-01		2,500	7.3
		Nishi-Shimbashi
			Building	Tokyo	2018					rights
	OF-02		XYMAX	Chiyoda-ku,	Feb. 16,	4,250	12.5	4,368	5,740	Trust beneficiary
		Iwamotocho
			Building	Tokyo	2018					rights
	OF-03		XYMAX	Shinjuku-ku,	Feb. 16,	5,020	14.7	5,058	7,300	Trust beneficiary
		Shinjuku-Gyoen
			Building	Tokyo	2018					rights
Office	OF-04		XYMAX	Minato-ku,	Feb. 16,	880	2.6	890	1,220	Trust beneficiary
	Kamiyacho
			Building	Tokyo	2018					rights
	OF-05		XYMAX	Minato-ku,	Feb. 16,	1,550	4.5	1,605	2,140	Trust beneficiary
		Higashi-Azabu
			Building	Tokyo	2018					rights
	OF-06		XYMAX	Taito-ku,	Feb. 16,	1,150	3.4	1,173	1,620	Trust beneficiary
		Higashi-Ueno
			Building	Tokyo	2018					rights
	OF-07		XYMAX	Hachioji-shi,	Feb. 16,	2,600	7.6	2,599	3,570	Trust beneficiary
		Hachioji Building	Tokyo	2018	rights
			Subtotal/Average	-	-	17,950	52.6	18,211	24,710	-
	RT-01		Muza Kawasaki	Kawasaki-shi,	Feb. 16,	4,100	12.0	4,095	5,390	Trust beneficiary
		Kanagawa	2018	rights
	RT-02		Life Kawasaki	Kawasaki-shi,	Feb. 16,	790	2.3	794	976	Trust beneficiary
Retail		Miyuki Store	Kanagawa	2018	rights
RT-03		Vita Seiseki-	Tama-shi,	Feb. 16,	3,100	9.1	3,303	3,870	Trust beneficiary
		Sakuragaoka	Tokyo	2018	rights
	RT-04		Life Fukuizumi	Sakai-shi,	Sep. 1,	1,065	3.1	1,083	1,090	Trust beneficiary
		Store	Osaka	2020	rights
			Subtotal/Average	-	-	9,055	26.6	9,277	11,326	-
Hotel	HT-01		Hotel Vista	Sendai-shi,	Feb. 16,	4,400	12.9	4,277	5,170	Trust beneficiary

	rights and movables
			Sendai	Miyagi	2018					incidental to hotel
			Subtotal/Average	-	-	4,400	12.9	4,277	5,170	-
	OT-01		Renaissance 21	Fukuoka-shi,	Feb. 16,	2,700	7.9	2,749	3,210	Trust beneficiary
Other		Chihaya	Fukuoka	2018	rights
Subtotal/Average	-	-	2,700	7.9	2,749	3,210	-

	Total/Average	-	-	34,105	100.0	34,515	44,416	-

(Note 1) "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 other properties.

(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 and purchase contract for each portfolio asset) not including the various expenses required for the acquisition of the portfolio assets (brokerage fees, property taxes, etc.), rounded down to the nearest million yen. The sale and purchase price does not include consumption tax and local consumption tax.

(Note 3) "Share of portfolio" is the acquisition price of the portfolio asset expressed as a percentage of the total acquisition price of the portfolio assets, rounded to one decimal place.

(Note 4) Appraisal of each property is entrusted to Japan Real Estate Institute, The Tanizawa SōgōAppraisal Co., Ltd. and Daiwa Real Estate Appraisal Co., Ltd. "Appraisal value" is the appraisal value stated in each real estate appraisal report with February 28, 2021 as the date of value.

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Status of Leasing

		Construction	Number of	Operating revenue	Security deposit /	Leased area	Leasable area	Occupancy
Asset no.	Asset name	date	tenants	from leasing	Guarantee	2	)	2	)	rate
(million yen)	(million yen)	(m	(m	(%)
		(Note 1)	(Note 2)	(Note 3)	(Note 4)	(Note 5)	(Note 6)	(Note 7)
OF-01	XYMAX	Aug. 22,	8	81	127	1,897.75	1,897.75	100.0
Nishi-Shimbashi Building	2000
OF-02	XYMAX	Mar. 22,	14	140	187	4,152.30	4,152.30	100.0
Iwamotocho Building	2001
OF-03	XYMAX	Feb. 28,	6	184	259	4,792.13	4,792.13	100.0
Shinjuku-Gyoen Building	2001
OF-04	XYMAX	Apr. 30,	7	41	50	1,205.29	1,205.29	100.0
Kamiyacho Building	1991
OF-05	XYMAX	Nov. 30,	4	47	61	1,511.97	2,016.00	75.0
Higashi-Azabu Building	1999
OF-06	XYMAX	Apr. 9,	8	48	70	1,735.34	1,735.34	100.0
Higashi-Ueno Building	1999
OF-07	XYMAX	Jan. 26,	23	127	153	5,322.89	5,556.03	95.8
Hachioji Building	1993
RT-01	Muza Kawasaki	Jan. 7,	18	171	216	3,703.87	3,703.87	100.0
2004
RT-02	Life Kawasaki Miyuki Store	Jan. 13,	1	Undisclosed	Undisclosed	2,677.54	2,677.54	100.0
1997	(Note 8)	(Note 8)
RT-03	Vita Seiseki-Sakuragaoka	Sep. 17,	1	Undisclosed	Undisclosed	27,610.61	27,610.61	100.0
1999	(Note 8)	(Note 8)
RT-04	Life Fukuizumi Store	Dec. 17,	1	Undisclosed	Undisclosed	3,309.29	3,309.29	100.0
1996	(Note 8)	(Note 8)
HT-01	Hotel Vista Sendai	Mar. 14,	1	Undisclosed	Undisclosed	7,066.25	7,066.25	100.0
2016	(Note 8)	(Note 8)
OT-01	Renaissance 21 Chihaya	Oct. 19,	139	109	24	10,183.73	10,287.93	99.0
2006
	Total/Average	-	231	1,293	1,241	75,168.96	76,010.33	98.9

(Note 1) "Construction date" is the date of new construction of the main building stated in the real estate registry.

(Note 2) "Number of tenants" is the total of the number of tenants (the number of end-tenants if a pass-through type master lease contract has been concluded) pertaining to the real estate in trust based on each lease contract concluded for each real estate in trust as of February 28, 2021.

(Note 3) "Operating revenue from leasing" is the total amount of rent revenue, common area maintenance revenue, parking revenue and other revenue (including other lease business revenue) generated from portfolio real estate during the fiscal period, rounded down to the nearest specified unit.

(Note 4) "Security deposit / Guarantee" is each property's total amount of security deposit and guarantee specified in all lease contracts pertaining to the real estate in trust concluded for each real estate in trust as of February 28, 2021, rounded down to the nearest specified unit.

(Note 5) "Leased area" is the total leased area based on the lease contract and the building drawing, etc. attached to the lease contract for each real estate in trust as of February 28, 2021.

(Note 6) "Leasable area" is the total leased area based on the lease contract and the building drawing, etc. attached to the lease contract for each real estate in trust as of February 28, 2021 and the area based on the building drawing, etc. of vacant spaces.

(Note 7) "Occupancy rate" is the ratio of leased area to leasable area for each real estate in trust as of February 28, 2021, rounded to one decimal place.

(Note 8) Not disclosed due to unavoidable circumstances in that consent for disclosure has not been obtained from the lessee.

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

III. Summary of Real Estate Appraisal Reports

Classification	Asset no.	Asset name				Value based on income approach
(Note 2)	value	direct	Capitalization	based on	Discount	capitalization
			Appraiser	Appraisal	Value		Value		Terminal
			based on	rate	rate
				(million yen)	capitalization	DCF	rate
					method	(%)	method	(%)	(%)
		XYMAX	Tanizawa Sōgō		(million yen)		(million yen)
	OF-01	3,120	3,260	3.7	3,060	3.8	3.9
	Nishi-Shimbashi Building	Appraisal
	OF-02	XYMAX	Japan Real Estate	5,740	5,840	3.5	5,640	3.3	3.7
	Iwamotocho Building
	OF-03	XYMAX	Japan Real Estate	7,300	7,430	3.5	7,170	3.3	3.7
	Shinjuku-Gyoen Building
	OF-04	XYMAX	Tanizawa Sōgō	1,220	1,260	3.8	1,200	3.9	4.0
Office	Kamiyacho Building	Appraisal

	OF-05	XYMAX	Daiwa Real Estate	2,140	2,200	3.8	2,110	3.6	4.0
	Higashi-Azabu Building	Appraisal
	OF-06	XYMAX	Daiwa Real Estate	1,620	1,630	3.9	1,610	3.7	4.1
	Higashi-Ueno Building	Appraisal
	OF-07	XYMAX	Japan Real Estate	3,570	3,610	4.8	3,520	4.6	5.0
	Hachioji Building
		Subtotal/Average	Tanizawa Sōgō	24,710	25,230	-	24,310	-	-
	RT-01	Muza Kawasaki	5,390	5,330	4.1	5,420	4.2	4.3
	Appraisal
	RT-02	Life Kawasaki Miyuki Store	Daiwa Real Estate	976	989	4.2	970	4.0	4.4
Retail	Appraisal
RT-03	Vita Seiseki-Sakuragaoka	Tanizawa Sōgō	3,870	3,780	5.0	3,910	5.1	5.2
	Appraisal
	RT-04	Life Fukuizumi Store	Daiwa Real Estate	1,090	1,100	4.5	1,080	4.3	4.7
	Appraisal
		Subtotal/Average	Tanizawa Sōgō	11,326	11,199	-	11,380	-	-
	HT-01	Hotel Vista Sendai	5,170	5,250	5.0	5,130	4.9	5.0
Hotel	Appraisal
	Subtotal/Average
		Tanizawa Sōgō	5,170	5,250	-	5,130	-	-
	OT-01	Renaissance 21 Chihaya	3,210	3,280	4.9	3,180	5.0	5.1
Other	Appraisal
	Subtotal/Average
			3,210	3,280	-	3,180	-	-
		Total/Average		44,416	44,959	-	44,000	-	-

(Note 1) The date of value for the real estate appraisal reports is February 28, 2021.

(Note 2) "Appraiser" is the name of the appraiser shortened as follows: Japan Real Estate: Japan Real Estate Institute

Tanizawa SōgōAppraisal: The Tanizawa SōgōAppraisal Co., Ltd.

Daiwa Real Estate Appraisal: Daiwa Real Estate Appraisal Co., Ltd.

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

IV.	Summary of Engineering Reports and Seismic Risk Evaluation Reports
			Engineering report		Seismic risk evaluation report

		Inspection		Short-term	Long-term	Inspection
Asset no.	Asset name	Inspection	repair cost	repair cost	Inspection	PML value
company	(thousand yen)	(thousand yen)	company
		(Note 1)	date	(Note 2)	(Note 2)	(Note 1)	date	(%)
	XYMAX	Sompo Risk	Nov. 30,	(Note 3)	(Note 4)	Tokio Marine &
OF-01	-	4,503	Nov. 2017	6.1
	Nichido Risk
	Nishi-Shimbashi Building	Management Inc.	2017			Consulting Co., Ltd.
OF-02	XYMAX	Tokio Marine &	Nov. 30,	-	12,297	Tokio Marine &	Nov. 2017	5.2
Nichido Risk		Nichido Risk
	Iwamotocho Building	Consulting Co., Ltd.	2017			Consulting Co., Ltd.
OF-03	XYMAX	Tokio Marine &	Nov. 30,	-	10,665	Tokio Marine &	Nov. 2017	4.5
Nichido Risk		Nichido Risk
	Shinjuku-Gyoen Building	Consulting Co., Ltd.	2017			Consulting Co., Ltd.
OF-04	XYMAX	Earth-Appraisal	Nov. 30,	-	7,737	Tokio Marine &	Nov. 2017	3.8
	Nichido Risk
	Kamiyacho Building	Co., Ltd.	2017			Consulting Co., Ltd.
OF-05	XYMAX	Earth-Appraisal	Nov. 30,	-	4,282	Tokio Marine &	Nov. 2017	3.4
	Nichido Risk
	Higashi-Azabu Building	Co., Ltd.	2017			Consulting Co., Ltd.
OF-06	XYMAX	Earth-Appraisal	Nov. 30,	-	2,820	Tokio Marine &	Nov. 2017	5.1
	Nichido Risk
	Higashi-Ueno Building	Co., Ltd.	2017			Consulting Co., Ltd.
OF-07	XYMAX	Sompo Risk	Nov. 30,	-	13,742	Tokio Marine &	Nov. 2017	3.9
	Nichido Risk
	Hachioji Building	Management Inc.	2017			Consulting Co., Ltd.
RT-01	Muza Kawasaki	Earth-Appraisal	Nov. 30,	-	13,357	Tokio Marine &	Nov. 2017	1.2
	Nichido Risk
		Co., Ltd.	2017			Consulting Co., Ltd.
RT-02	Life Kawasaki Miyuki Store	Daiwa Real Estate	Nov. 30,	-	3,662	Tokio Marine &	Nov. 2017	7.0
	Nichido Risk
		Appraisal Co., Ltd.	2017			Consulting Co., Ltd.
RT-03	Vita Seiseki-Sakuragaoka	Daiwa Real Estate	Nov. 30,	-	150,664	Tokio Marine &	Nov. 2017	2.1
	Nichido Risk
		Appraisal Co., Ltd.	2017			Consulting Co., Ltd.
RT-04	Life Fukuizumi Store	Tokio Marine &	Aug. 24,	-	3,626	Tokio Marine &	Aug. 2020	14.7
Nichido Risk		Nichido Risk
		Consulting Co., Ltd.	2020			Consulting Co., Ltd.
HT-01	Hotel Vista Sendai	Daiwa Real Estate	Nov. 30,	-	8,071	Tokio Marine &	Nov. 2017	1.7
	Nichido Risk
		Appraisal Co., Ltd.	2017			Consulting Co., Ltd.
OT-01	Renaissance 21 Chihaya	Tokio Marine &	Nov. 30,	-	13,916	Tokio Marine &	Nov. 2017	1.7
Nichido Risk		Nichido Risk
		Consulting Co., Ltd.	2017			Consulting Co., Ltd.
	Total			-	249,342	Entire portfolio	(Note 5)	2.0

(Note 1) Company names in "Inspection company" are the names when the inspection was performed.

(Note 2) "Short-term repair cost" and "Long-term repair cost" are indicated based on the engineering report.

(Note 3) "Short-term repair cost" refers to the cost for repair or upgrading that has priority over daily maintenance and indicates the total amount of estimates of repair costs deemed necessary within one year from the date of the engineering report.

(Note 4) "Long-term repair cost" refers to the cost for repair or upgrading to maintain functions and safe operations against the deterioration with age and indicates the total amount of repair/upgrading costs deemed necessary within 12 years from the date of the engineering report, which is the annual average calculated by the Asset Management Company, rounded to the nearest thousand yen. For Muza Kawasaki and Vita Seiseki- Sakuragaoka, amounts corresponding to the ownership ratios (6.9% and 49.6% respectively, rounded down to one decimal place) are indicated.

(Note 5) "Entire portfolio" is a PML value for a group of the 13 portfolio assets, obtained in the same manner as for each property based on the seismic risk evaluation (portfolio) report dated August 2020 prepared by Tokio Marine & Nichido Risk Consulting Co., Ltd.

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Capital Expenditures

Schedule of Capital Expenditures
Of capital expenditures associated with renovation work, etc. currently planned for assets held by XYMAX REIT as of the end of the fiscal period under review, the following are the major estimated amounts. The estimated construction costs below may include the portion separately booked as expenses in accounting.

							Estimated construction costs
Name of								(thousand yen)
Location	Purpose	Scheduled period	Total		Amount of		Total
real estate, etc.		payment		amount
							amount		during	already
Vita Seiseki-	Tama-shi,	Replacement of				2021			period	paid
		2021	65,953		-		-
automatic fire	From: March
Sakuragaoka	Tokyo	alarm system	To: March
		Overhaul & parts			2021
Vita Seiseki-	Tama-shi,	exchange of		2021	38,530		-		-
Parking A	From: July
Sakuragaoka	Tokyo	(located on	To: July
XYMAX		basement floor)			2021
Hachioji-shi	Exterior wall		2021	84,586		-		-
Hachioji	From: July
Building	Tokyo	repair work	To: July

Capital Expenditures during the Fiscal Period
The construction work, etc. falling under the category of capital expenditures conducted in the fiscal period under review for assets held by XYMAX REIT as of the end of the fiscal period under review amounted to 72,627 thousand yen. Combined with repair expenses booked as expenses in the fiscal period under review (31,927 thousand yen), construction work, etc. totaling 104,555 thousand yen was conducted.
Furthermore, there were no Important Capital Expenditures made to the portfolio assets in the fiscal period under review.

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

VI. Property Overview and Earnings/Expenses of Properties

XYMAX Nishi‐Shimbashi Building				Category	Office

Overview of the Specified Asset				Earnings and	Expenses (Unit: thousand yen)
Acquisition Date		February 16, 2018	Management	from September 1, 2020

	Period	to February 28, 2021
Acquisition Price		2,500 million yen	Number of	181 days
	operating days
Type of Specified Asset		Trust beneficiary right	(1) Operating expenses from real estate leasing
Trustee				Sumitomo Mitsui Trust Bank, Ltd.	Lease business revenue	76,468
Location (residential address)		2-6-2Nishi-Shimbashi,Minato-ku,	Other lease business	5,394
	Tokyo		revenue
		Lot Number		Tokyo, and other	from real estate leasing			81,863
				2-10-16Nishi-Shimbashi,Minato-ku,	Total operating revenue
		Building Coverage Ratio		80%		(2) Operating expenses from real estate leasing
Land		Floor-Area Ratio		700%		Tax and public dues	6,913
		Land Use District		Commercial district	Maintenance fees	5,363
		Site Area		402.53 m2		Utility expenses	3,649
		Type of ownership		Ownership		Repair expenses	1,095
		Construction Date		August 22, 2000	Insurance premiums	61
		Structure/Number of Floors		Reinforced concrete structure with	Depreciation	2,626
			flat roof 9F
						Other expenses related	2,890
		Total Floor Area		2,517.50 m	2
Building				to lasing business
	Architect		RUI SEKKEISHITSU Co., Ltd.	Total operating expenses			22,600
			from real estate leasing
		Builder		Fujiki Komuten Co., Ltd.	(3) NOI				61,889

		Type of Ownership		Ownership		(4) Operating income (loss)			59,263
ML Company				-		from real estate leasing

PM Company		XYMAX ALPHA Corporation
Notes:

There is a 2-meter setback from the centerline of the road on the south side of the property. However, the Site Area includes the setback portion (33.96 m2).

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

XYMAX Iwamotocho Building					Category	Office

Overview of the Specified Asset					Earnings and	Expenses (Unit: thousand yen)
Acquisition Date		February 16, 2018	Management	from September 1, 2020

	Period	to February 28, 2021
Acquisition Price		4,250 million yen	Number of	181 days
	operating days
Type of Specified Asset		Trust beneficiary right	(1) Operating expenses from real estate leasing
Trustee				Sumitomo Mitsui Trust Bank, Ltd.	Lease business revenue	125,028
			Other lease business
Location (residential address)		2-3-3 Iwamotocho, Chiyoda-ku, Tokyo	revenue				15,555
		Lot Number		2-175-2 Iwamotocho, Chiyoda-ku,	Total operating revenue			140,583
			Tokyo		from real estate leasing
		Building Coverage Ratio		80%	、		(2) Operating expenses from real estate leasing
Land		Floor-Area Ratio		800%	600%	Tax and public dues	13,403
		Land Use District		Commercial district	Maintenance fees	10,218
		Site Area		864.83 m2		Utility expenses	7,041
		Type of ownership		Ownership		Repair expenses	2,525
		Construction Date		March 22, 2001	Insurance premiums	218
		Structure/Number of Floors		Steel-framed reinforced concrete	Depreciation	13,259
			structure with flat roof B1F/9F
							Other expenses related	1,416
		Total Floor Area		6,261.06 m	2
Building				to lasing business
	Architect		Nikken Sekkei Ltd.	Total operating expenses			48,082
			from real estate leasing
		Builder		Kumagai-Sumitomo Construction	(3) NOI				105,760

			Consortium
		Type of Ownership		Ownership		(4) Operating income (loss)			92,501
ML Company				Godo Kaisha ML2	from real estate leasing

PM Company		XYMAX ALPHA Corporation
Notes:
None

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

XYMAX Shinjuku‐Gyoen Building				Category	Office

Overview of the Specified Asset				Earnings and	Expenses (Unit: thousand yen)
Acquisition Date		February 16, 2018	Management	from September 1, 2020

	Period	to February 28, 2021
Acquisition Price		5,020 million yen	Number of	181 days
	operating days
Type of Specified Asset		Trust beneficiary right	(1) Operating expenses from real estate leasing
Trustee				Sumitomo Mitsui Trust Bank, Ltd.	Lease business revenue	173,008
			Other lease business
Location (residential address)		1-1-11 Shinjuku, Shinjuku-ku, Tokyo	revenue				11,587
		Lot Number		1-1-7 Shinjuku, Shinjuku-ku, and	Total operating revenue			184,595
			other		from real estate leasing
		Building Coverage Ratio		80%		(2) Operating expenses from real estate leasing
Land		Floor-Area Ratio		700%		Tax and public dues	14,441
		Land Use District		Commercial district	Maintenance fees	11,597
		Site Area		839.09 m2		Utility expenses	6,849
		Type of ownership		Ownership		Repair expenses	7,403
		Construction Date		February 28, 2001	Insurance premiums	210
		Structure/Number of Floors		Steel-construction / Reinforced	Depreciation	10,996
			concrete structure with flat roof
				B1F/9F		Other expenses related	1,989
		Total Floor Area		6,084.32 m	2
Building				to leasing business
	Architect		U Associates Co., Ltd.	Total operating expenses			53,487
			from real estate leasing
		Builder		Kajima-Oriental Construction	(3) NOI				142,104

			Consortium
		Type of Ownership		Ownership		(4) Operating income (loss)			131,107
ML Company				Godo Kaisha ML2	from real estate leasing

PM Company		XYMAX ALPHA Corporation
Notes:
None

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

XYMAX Kamiyacho Building			Category	Office

Overview of the Specified Asset			Earnings and	Expenses (Unit: thousand yen)
Acquisition Date		February 16, 2018	Management	from September 1, 2020

	Period	to February 28, 2021
Acquisition Price		880 million yen	Number of	181 days
	operating days
Type of Specified Asset		Trust beneficiary right	(1) Operating expenses from real estate leasing
Trustee				Sumitomo Mitsui Trust Bank, Ltd.	Lease business revenue	37,774
			Other lease business
Location (residential address)		5-12-13 Toranomon, Minato-ku, Tokyo	revenue				3,228
		Lot Number		5-13-1 Toranomon, Minato-ku, Tokyo,	Total operating revenue			41,002
			and other	from real estate leasing
		Building Coverage Ratio		80%	(2) Operating expenses from real estate leasing
Land		Floor-Area Ratio		600%	Tax and public dues	4,677
		Land Use District		Commercial district	Maintenance fees	4,506
		Site Area		228.83m2	Utility expenses	1,975
		Type of ownership		Ownership	Repair expenses	1,147
		Construction Date		April 30, 1991	Insurance premiums	46
		Structure/Number of Floors		Steel-construction with flat roof 8F	Depreciation	1,316
		Total Floor Area		2	Other expenses related
Building			1,356.51m	to leasing business	856
	Architect		HASEKO Corporation	Total operating expenses			14,524
			from real estate leasing
		Builder		HASEKO Corporation	(3) NOI				27,794

		Type of Ownership		Ownership	(4) Operating income (loss)			26,477
ML Company				XYMAX ALPHA Corporation	from real estate leasing

PM Company		XYMAX ALPHA Corporation
Notes:
None

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

XYMAX Higashi‐Azabu Building				Category	Office

Overview of the Specified Asset				Earnings and	Expenses (Unit: thousand yen)
Acquisition Date		February 16, 2018	Management	from September 1, 2020

	Period	to February 28, 2021
Acquisition Price		1,550 million yen	Number of	181 days
	operating days
Type of Specified Asset		Trust beneficiary right	(1) Operating expenses from real estate leasing
Trustee				Sumitomo Mitsui Trust Bank, Ltd.	Lease business revenue	41,530
Location (residential address)		1-5-2Higashi-Azabu,Minato-ku,	Other lease business	5,682
	Tokyo		revenue
		Lot Number		1-5-11Higashi-Azabu,Minato-ku,	Total operating revenue			47,212
			Tokyo		from real estate leasing
		Building Coverage Ratio		80%		(2) Operating expenses from real estate leasing
Land		Floor-Area Ratio		600%		Tax and public dues	6,367
		Land Use District		Commercial district	Maintenance fees	5,586
		Site Area		365.05 m2		Utility expenses	2,142
		Type of ownership		Ownership		Repair expenses	3,572
		Construction Date		November 30, 1999	Insurance premiums	81
		Structure/Number of Floors		Steel-framed reinforced concrete	Depreciation	5,688
			structure with flat roof B1F/9F
						Other expenses related	822
		Total Floor Area		2,570.13 m	2
Building				to leasing business
	Architect		Tokyo Branch of TOZAI KENCHIKU	Total operating expenses			24,260
			SERVICE CO., LTD.	from real estate leasing
		Builder		Kanto Branch of Maeda Corporation	(3) NOI				28,640

		Type of Ownership		Ownership		(4) Operating income (loss)			22,952
ML Company				XYMAX ALPHA Corporation	from real estate leasing

PM Company		XYMAX ALPHA Corporation
Notes:
None

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

XYMAX Higashi‐Ueno Building					Category	Office

Overview of the Specified Asset					Earnings and	Expenses (Unit: thousand yen)
Acquisition Date		February 16, 2018	Management	from September 1, 2020

	Period	to February 28, 2021
Acquisition Price		1,150 million yen	Number of	181 days
	operating days
Type of Specified Asset		Trust beneficiary right	(1) Operating expenses from real estate leasing
Trustee				Sumitomo Mitsui Trust Bank, Ltd.	Lease business revenue	43,172
			Other lease business
Location (residential address)		1-11-4Higashi-Ueno,Taito-ku, Tokyo	revenue				5,507
		Lot Number		1-22-9Higashi-Ueno,Taito-ku, Tokyo,	Total operating revenue			48,680
			and other		from real estate leasing
		Building Coverage Ratio		80%	、		(2) Operating expenses from real estate leasing
Land		Floor-Area Ratio		600%	500%	Tax and public dues	3,684
		Land Use District		Commercial district	Maintenance fees	4,269
		Site Area		368.84 m2		Utility expenses	2,462
		Type of ownership		Ownership		Repair expenses	666
		Construction Date		April 9, 1999	Insurance premiums	59
		Structure/Number of Floors		Steel-framed reinforced concrete	Depreciation	3,174
			structure with flat roof 8F
							Other expenses related	633
		Total Floor Area		1,942.54 m	2
Building				to leasing business
	Architect		Architect 5 Partnership	Total operating expenses			14,951
			from real estate leasing
		Builder		Tokyo Branch of Kajima Corporation	(3) NOI				36,902

		Type of Ownership		Ownership		(4) Operating income (loss)			33,728
ML Company				XYMAX ALPHA Corporation	from real estate leasing

PM Company		XYMAX ALPHA Corporation
Notes:
None

(Note) The Site Area includes a portion of private road burden (48.62 m2).

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

XYMAX Hachioji Building				Category	Office

Overview of the Specified Asset				Earnings and	Expenses (Unit: thousand yen)
Acquisition Date		February 16, 2018	Management	from September 1, 2020

	Period	to February 28, 2021
Acquisition Price		2,600 million yen	Number of	181 days
	operating days
Type of Specified Asset		Trust beneficiary right	(1) Operating expenses from real estate leasing
					111,528
Trustee				Mitsubishi UFJ Trust and Banking	Lease business revenue
			Corporation
Location (residential address)		25-6 Yokoyamacho, Hachioji-shi,	Other lease business	16,346
	Tokyo		revenue
		Lot Number		3-2 Yokoyamacho, Hachioji-shi, Tokyo,	Total operating revenue			127,874
			and other		from real estate leasing
		Building Coverage Ratio		80%		(2) Operating expenses from real estate leasing
Land		Floor-Area Ratio		600%		Tax and public dues	8,383
		Land Use District		Commercial district	Maintenance fees	15,597
		Site Area		1,220.58 m2	Utility expenses	6,578
		Type of ownership		Ownership		Repair expenses	3,465
		Construction Date		January 26, 1993	Insurance premiums	272
		Structure/Number of Floors		Steel-framed reinforced concrete/	Depreciation	9,353
			Steel-construction with flat roof
				B1F/9F		Other expenses related	1,645
Building		Total Floor Area		7,404.81 m	2
			to leasing business
		Architect		NIHON SEKKEI Inc.	Total operating expenses			45,296
			from real estate leasing
		Builder		MATSUMURA-GUMI Corporation	(3) NOI				91,932
		Type of Ownership		Ownership		(4) Operating income (loss)			82,578
ML Company				Godo Kaisha ML1	from real estate leasing

PM Company		XYMAX ALPHA Corporation
Notes:
None

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Muza Kawasaki					Category	Retail

Overview of the Specified Asset					Earnings and	Expenses (Unit: thousand yen)
Acquisition Date		February 16, 2018	Management	from September 1, 2020

	Period	to February 28, 2021
Acquisition Price		4,100 million yen	Number of	181 days
	operating days
Type of Specified Asset		Trust beneficiary right	(1) Operating expenses from real estate leasing
Trustee				Sumitomo Mitsui Trust Bank, Ltd.	Lease business revenue	151,675
Location (residential address)		1310 Omiyacho, Saiwai-ku, Kawasaki-	Other lease business	19,596
	shi, Kanagawa	revenue
		Lot Number		1310 Omiyacho, Saiwai-ku, Kawasaki-	Total operating revenue			171,272
			shi, Kanagawa	from real estate leasing
		Building Coverage Ratio		80%	、		(2) Operating expenses from real estate leasing
Land		Floor-Area Ratio		600%	400%	Tax and public dues	10,586
	Land Use District		Commercial district	Maintenance fees	14,946
		Site Area		742.44 m2		Utility expenses	13,153
		Type of ownership		Co-ownership interest in ownership	Repair expenses	3,675
			right (ratio of right of site: 6.9%)
		Construction Date		January 7, 2004	Insurance premiums	188
				Steel-framed/Steel-framed reinforced	Depreciation	17,439
		Structure/Number of Floors		concrete structure with flat
			roof/stainless steel plate roofing
				B2F/27F		Other expenses related	529
Building		Total Floor Area		3,671.09 m	2
			to leasing business
		Architect		Kanagawa Area Branch of Urban	Total operating expenses			60,519
			Development Corporation	from real estate leasing
		Builder		Shimizu-Taisei-Ando Construction	(3) NOI				128,192

			Consortium
		Type of Ownership		Sectional ownership	(4) Operating income (loss)			110,752
ML Company				XYMAX ALPHA Corporation	from real estate leasing

PM Company		XYMAX ALPHA Corporation
Notes:
None

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Life Kawasaki Miyuki Store				Category	Retail

Overview of the Specified Asset				Earnings and	Expenses (Unit: thousand yen)
Acquisition Date		February 16, 2018	Management	from September 1, 2020

	Period	to February 28, 2021
Acquisition Price		790 million yen	Number of	181 days
	operating days
Type of Specified Asset		Trust beneficiary right	(1) Operating expenses from real estate leasing

Trustee				Mitsubishi UFJ Trust and Banking	Lease business revenue	Undisclosed
			Corporation
Location (residential address)		4-93Komukai-nishimachi,Saiwai-ku,	Other lease business	Undisclosed
	Kawasaki-shi, Kanagawa	revenue
		Lot Number		4-93Komukai-nishimachi,Saiwai-ku,	Total operating revenue			Undisclosed
			、		from real estate leasing
				Kawasaki-shi, Kanagawa, and other
		Building Coverage Ratio		80% 60%	(2) Operating expenses from real estate leasing
Land		Floor-Area Ratio		200%		Tax and public dues	Undisclosed
	Land Use District		Neighborhood commercial district,	Maintenance fees	Undisclosed
			category 1 residential districts	Utility expenses	Undisclosed
		Site Area		1,879.15 m2
		Type of ownership		Ownership		Repair expenses	Undisclosed
		Construction Date		January 13, 1997	Insurance premiums	Undisclosed
		Structure/Number of Floors		Steel-construction with flat roof 2F	Depreciation	1,570
		Total Floor Area		2,596.80 m	2	Other expenses related	Undisclosed
				to leasing business
Building		Architect		Tokyo First-class Architect Office,	Total operating expenses			Undisclosed
		Takenaka Corporation	from real estate leasing	22,689
		Builder		Yokohama Branch of Takenaka	(3) NOI
			Corporation
		Type of Ownership		Ownership		(4) Operating income (loss)			21,119
ML Company				-		from real estate leasing

PM Company		XYMAX ALPHA Corporation
Notes:

Under the lease contract with the tenant, in the case the lessor intends to transfer the ownership right of the property to a third party through sale, etc., the lessor is to notify such to the lessee in advance to allow the lessee to preferentially discuss acquisition if the lessee wishes.

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XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Vita Seiseki‐Sakuragaoka					Category	Retail

Overview of the Specified Asset					Earnings and	Expenses (Unit: thousand yen)
Acquisition Date		February 16, 2018	Management	from September 1, 2020

	Period	to February 28, 2021
Acquisition Price		3,100 million yen	Number of	181 days
	operating days
Type of Specified Asset		Trust beneficiary right	(1) Operating expenses from real estate leasing

Trustee			Mitsubishi UFJ Trust and Banking	Lease business revenue	Undisclosed
		Corporation		Other lease business	Undisclosed
Location (residential address)		4-72 Sekido, Tama-shi, Tokyo
	revenue
	Lot Number		4-72 Sekido, Tama-shi, Tokyo	Total operating revenue		Undisclosed
		from real estate leasing
	Building Coverage Ratio		80%			(2) Operating expenses from real estate leasing
Land	Floor-Area Ratio		500%			Tax and public dues	Undisclosed
Land Use District		Commercial		Maintenance fees	Undisclosed
	Site Area		4,467.51 m	2		Utility expenses	Undisclosed

	Type of ownership		Co-ownership interest in ownership	Repair expenses	Undisclosed
		right (ratio of right of site: 49.6%)	Insurance premiums	Undisclosed
	Construction Date		September 17, 1999
		Depreciation	16,617
			Steel-framed reinforced concrete
	Structure/Number of Floors		structure/reinforced concrete
		structure/steel-construction with flat
			roof B3F/27F	Other expenses related	Undisclosed
	Total Floor Area		27,161.00 m	2
			to leasing business
Building	Architect		Tokyo Branch First-Class Architect	Total operating expenses		Undisclosed
		Office Corporation, Housing and	from real estate leasing
			Urban Development Corporation				171,279
	Builder		Toda-Tokyu-ICHIKEN Construction	(3) NOI
		Consortium
			Sectional ownership (however, for	(4) Operating income (loss)		154,662
	Type of Ownership		house numbers 72-3 and 72-7, co-	from real estate leasing
		ownership interest of
			937,995/1,000,000 and
			591,485/1,000,000, respectively)
ML Company			-
PM Company		XYMAX ALPHA Corporation

Notes:

As to the part of the building (house numbers 72-3 and 72-7), an agreement on the following matters has been concluded with the co-owners of the sections.

· Non-division covenant for five years from the conclusion date (renewed automatically unless any one of the co-owners claims not to renew at least six months prior to the expiration date)

· When transferring or dispositioning by other means the co-ownership interest, the party must notify other co-owners (hereinafter, the "Counterparties") of such at least one month prior to the transfer or disposition in writing. The Counterparties shall have the preferential negotiation right to purchase the said co-ownership interest within 20 business days after the notice, and such purchase shall be effective after two months of a written notice stating exercise of right-to-purchase (hereinafter, the "Notice of Exercising Right-to-Purchase") reaching the party wishing to transfer the co-ownership interest. In such a case, the price shall be the value on an as-is basis, and if the parties do not reach an agreement on the price, the price shall be the real estate appraisal value as of the date of the Notice of Exercising Right-to-Purchase delivered to the party wishing to transfer the co-ownership interest.

- 41 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Life Fukuizumi Store				Category	Retail

Overview of the Specified Asset				Earnings and	Expenses (Unit: thousand yen)
Acquisition Date		September 1, 2020	Management	from September 1, 2020

	Period	to February 28, 2021
Acquisition Price		1,065 million yen	Number of	181 days
	operating days
Type of Specified Asset		Trust beneficiary right	(1) Operating expenses from real estate leasing

Trustee				Mitsubishi UFJ Trust and Banking	Lease business revenue	Undisclosed
			Corporation
Location (residential address)		444-1, Kami, Nishi-ku,Sakai-shi,	Other lease business	Undisclosed
	Osaka		revenue
		Lot Number		444-1, Kami, Nishi-ku,Sakai-shi,	Total operating revenue			Undisclosed
			Osaka		from real estate leasing
		Building Coverage Ratio		60%		(2) Operating expenses from real estate leasing
Land		Floor-Area Ratio		200%		Tax and public dues	Undisclosed
	Land Use District		Category 1 residential districts	Maintenance fees	Undisclosed
		Site Area		6,225.21 m2	Utility expenses	Undisclosed
		Type of ownership		Ownership		Repair expenses	Undisclosed
		Construction Date		December 17, 1996	Insurance premiums	Undisclosed
		Structure/Number of Floors		Steel-construction with flat roof 2F	Depreciation	2,223
		Total Floor Area		3,358.26 m	2	Other expenses related	Undisclosed
Building				to leasing business
	Architect		KAJIMA CORPORATION	Total operating expenses			Undisclosed
					from real estate leasing	29,321
		Builder		KAJIMA CORPORATION	(3) NOI
		Type of Ownership		Ownership		(4) Operating income (loss)			27,098
ML Company				XYMAX REIT Investment Corporation	from real estate leasing

PM Company		XYMAX KANSAI Corporation
Notes:
Under the lease contract with the tenant, in the case the lessor intends to transfer the ownership right of the property to a third party

through sale, etc., the lessor is to notify such to the lessee in advance to allow the lessee to preferentially discuss acquisition if the lessee wishes.

- 42 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Hotel Vista Sendai				Category	Hotel

Overview of the Specified Asset				Earnings and	Expenses (Unit: thousand yen)
Acquisition Date		February 16, 2018	Management	from September 1, 2020

	Period	to February 28, 2021
Acquisition Price		4,400 million yen	Number of	181 days
	operating days
Type of Specified Asset		Trust beneficiary rights and movables	(1) Operating expenses from real estate leasing
	property incidental to hotel
Trustee				Mitsubishi UFJ Trust and Banking	Lease business revenue	Undisclosed
			Corporation
Location (residential address)		1-7-3 Tsutsujigaoka, Miyagino-ku,	Other lease business	Undisclosed
	Sendai-shi, Miyagi	revenue
		Lot Number		1-7-2 Tsutsujigaoka, Miyagino-ku,	Total operating revenue			Undisclosed
			Sendai-shi, Miyagi, and other	from real estate leasing
		Building Coverage Ratio		80%		(2) Operating expenses from real estate leasing
Land		Floor-Area Ratio		500%		Tax and public dues	Undisclosed
	Land Use District		Commercial district	Maintenance fees	Undisclosed
		Site Area		1,461.36 m2	Utility expenses	Undisclosed
		Type of ownership		Ownership (partial surface right)	Repair expenses	Undisclosed
		Construction Date		March 14, 2016	Insurance premiums	Undisclosed
		Structure/Number of Floors		Steel-construction with flat roof 12F	Depreciation	30,620
		Total Floor Area		6,977.47 m	2	Other expenses related	Undisclosed
Building				to leasing business
	Architect		First-class Architect Office, AA and	Total operating expenses			Undisclosed
			SUN Associates INC.	from real estate leasing	43,560
		Builder		Tohoku Branch of Maeda Corporation	(3) NOI
		Type of Ownership		Ownership		(4) Operating income (loss)			12,939
ML Company				-		from real estate leasing

PM Company		XYMAX ALPHA Corporation
Notes:

Sendai City has sectional surface rights to part of the land (lot number 7-18) aimed at the ownership of facilities required for high-speed railway business. No ground rent arises under this surface right.

(Note) The Site Area includes 524.21 m2 of surface right.

- 43 -

XYMAX REIT Investment Corporation (3488) Financial Report for the Fiscal Period Ended February 2021

Renaissance 21 Chihaya				Category	Other (residential)

Overview of the Specified Asset				Earnings and	Expenses (Unit: thousand yen)
Acquisition Date		February 16, 2018	Management	from September 1, 2020

	Period	to February 28, 2021
Acquisition Price		2,700 million yen	Number of	181 days
	operating days
Type of Specified Asset		Trust beneficiary right	(1) Operating expenses from real estate leasing
					102,998
Trustee				Mitsubishi UFJ Trust and Banking	Lease business revenue
			Corporation
Location (residential address)		5-4-25 Chihaya, Higashi-ku, Fukuoka-	Other lease business	6,756
	shi, Fukuoka	revenue
		Lot Number		5-2332 Chihaya, Higashi-ku, Fukuoka-	Total operating revenue			109,755
			shi, Fukuoka, and other	from real estate leasing
		Building Coverage Ratio		80%		(2) Operating expenses from real estate leasing
Land		Floor-Area Ratio		400%		Tax and public dues	8,638
		Land Use District		Commercial district	Maintenance fees	8,015
		Site Area		2,644.63 m2		Utility expenses	1,604
		Type of ownership		Ownership		Repair expenses	4,822
		Construction Date		October 19, 2006	Insurance premiums	291
		Structure/Number of Floors		Steel-framed reinforced concrete	Depreciation	19,951
			structure with flat roof 14F
						Other expenses related	4,549
		Total Floor Area		10,856.15 m	2
Building				to leasing business
	Architect		Tei Architectural Design Office	Total operating expenses			47,874
			from real estate leasing
		Builder		Kyushu Branch of Nishimatsu	(3) NOI				81,832

			Construction Co., Ltd.
		Type of Ownership		Ownership		(4) Operating income (loss)			61,880
ML Company				Miyoshi Asset Management Co., Ltd.	from real estate leasing

PM Company		Miyoshi Asset Management Co., Ltd.
Notes:
None

- 44 -

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Xymax REIT Investment Corporation published this content on 14 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 April 2021 06:04:08 UTC.

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XYMAX REIT Investment Corporation Provides Earnings Guidance for the Six Months Ending February 2024 and Full Year Ending August 2024	18/10/23	CI
XYMAX REIT Investment Corporation Investment Corporation Announces Acquisition of Domestic Asset	07/08/23	CI
XYMAX REIT Investment Corporation Provides Earnings Guidance for the Fiscal Period Ending August 31, 2023 and Fiscal Period Ending February 29, 2024	18/04/23	CI
XYMAX REIT Investment Corporation Announces Distribution for the Fiscal Period Ended February 2023, Payable on May 24, 2023 and Provides Dividend Guidance for the Fiscal Period Ending August 31, 2023 and Fiscal Period Ending February 29, 2024	18/04/23	CI
XYMAX REIT Investment Corporation Reports Earnings Results for the Half Year Ended February 28, 2023	18/04/23	CI
Xymax REIT to Borrow 2.9 Billion Yen	30/01/23	MT
XYMAX REIT Investment Corporation Provides Financial Guidance for Fiscal Period Ended Feb. 2023 and for Fiscal Period Ended Aug. 2023	19/10/22	CI
XYMAX REIT Investment Corporation Provides Consolidated Earnings Guidance for the Period from March 1, 2022 to August 31, 2022 and from September 1, 2022 to February 28, 2023	13/04/22	CI
XYMAX REIT Investment Corporation Announces Distribution for the Six Months Ended February 28, 2022, Payable on May 20, 2022	13/04/22	CI
Xymax REIT Closes $27 Million Sale of Residential Property to Japan Metropolitan Fund	01/04/22	MT
Mitsubishi Corp.-UBS Realty Inc. completed the acquisition of JMF-Residence Chihaya from XYMAX REIT Investment Corporation.	30/03/22	CI

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Company Profile

XYMAX REIT Investment Corporation is closed-end real estate investment trust (REIT) company. It aims to achieve sustainable growth in asset and stable earnings from mid- to long-term perspectives. The Company mainly invests in office buildings, commercial facilities, hotels in Tokyo city and neighboring areas, as well as major cities in Japan. Its property portfolio includes XYMAX Nishi-shimbashi Bldg, XYMAX Iwamotocho Bldg, XYMAX Kamiyacho Bldg, XYMAX Hachioji Bldg, MUZA KAWASAKI Symphony Hall, Hotel-Vista-Sendai and others. The asset manager of the Fund is XYMAX REAL ESTATE INVESTMENT ADVISORS.

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Diversified REITs

Calendar

15/10/2024 - Q2 2025 Earnings Release (Projected)

More about the company

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XYMAX REIT INVESTMENT CORPORATION	+0.42%	190M
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ESSENTIAL PROPERTIES REALTY TRUST, INC.	+9.35%	4.86B
NOMURA REAL ESTATE MASTER FUND, INC.	-14.67%	4.26B
DAIWA HOUSE REIT INVESTMENT CORPORATION	-0.32%	3.75B

Diversified REITs

XYMAX REIT Investment Corporation

Equities

3488

JP3048690006

Diversified REITs

XYMAX REIT Investment : (REIT) Financial Report for the Fiscal Period Ended February 2021

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