XYMAX REIT Investment : Presentation Materials for the 8th Fiscal Period Ended February 2022

Presentation Materials

for the 8th Fiscal Period Ended February 2022

Securities Code: 3488

Basic Principles and Characteristics of XYMAX REIT

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

Notes

 Unless otherwise specified, amounts are rounded to the nearest unit and ratios are rounded off to the first decimal place.

 The following abbreviations of property names are used.

XYMAX Nishi-Shimbashi Building : Nishi-Shimbashi XYMAX Shinjuku-Gyoen Building : Shinjuku-GyoenXYMAX Higashi-Azabu Building XYMAX Hachioji Building XYMAX Sapporo Odori Building Muza Kawasaki

• : Higashi-Azabu

• : Hachioji

• : Sapporo

• : MuzaXYMAX Iwamotocho Building XYMAX Kamiyacho Building XYMAX Higashi-Ueno Building XYMAX Mita Building XYMAX Kiba koen Building Life Kawasaki Miyuki Store

  • : Iwamotocho

  • : Kamiyacho

  • : Higashi-Ueno

  • : Mita

  • : Kiba

  • : Kawasaki Miyuki

    Vita Seiseki-Sakuragaoka

• : Seiseki-Sakuragaoka Life Fukuizumi Store

• : FukuizumiThe Park House Totsuka Front (the Retail Portions of 1st and 2nd Floors)

• : Totsuka

  Valor Kachigawa Store (Leasehold land)

• : KachigawaHotel Vista Sendai L-Place Nishikasai

  : Sendai : NishikasaiRenaissance 21 Chihaya

• : Chihaya

2

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

Executive Summary

Through a series of asset replacements and capital increase by a public offering, XYMAX REIT realized external growth, and achieved revenue improvements for existing properties by the re-leasing of offices and tenant replacements at retail facilities.

•  Steady management that leverages the XYMAX Group's network, knowledge, and know-how

  •  Despite the impact of COVID-19, offices have recovered their occupancy rates quickly (as of the end of the 8th FP: 98.8%; as of March 1, 2022: 100%).

  •  Retail facilities recorded steady revenue, backed by the fixed-rent contracts. Tenant replacements are realized with no downtime at +15% rent of the previous tenants, which will occur in the 9th FP.

  •  Although the hotel's operating performance was sluggish due to the COVID-19 pandemic, fixed-rent was revived from the 8th FP onwards and the rents were received stably and continuously. Variable rent is expected to recover in the future.

•  Expanded asset size through strategic asset replacements and the capital increase through the first public offering since listing.

  •  Improved portfolio stability while maintaining asset size and profitability by strategic asset replacements, and returned gain on disposition to the unitholders.

  •  Acquired three properties using the capital increase through the first public offering since listing (total acquisition price: 7.6 billion yen), expanding asset size to 43.4 billion yen.

  •  Improved distribution along with the effective additional leverage based on the appropriate LTV control.

•  Stable financial base and ESG initiatives

  •  Expanded lender formation by inviting new banks, in cooperation with the XYMAX Group.

  •  Carried out initiatives leading to a reduction in the environmental burden, such as adoption of electricity from 100% renewable energy sources at existing office properties, and implementation of a public offering using electronic issuance of prospectuses.

  •  Developed a internal organization for ESG promotion, to further enhance ESG initiatives.

Overview of Acquisitions through Asset Replacement and Public Offering

Change in Asset Size

Utilizing the XYMAX Group's strengths in assessment and sourcing, XYMAX REIT has acquired properties with high management stability and been expanding its asset size.