SANKEI REAL ESTATE : Notice Concerning Differences from Operating Forecasts and Distribution Forecasts in Actual Results for the Fiscal Period Ended February 2021

April 15, 2021

For Immediate Release

Real Estate Investment Trust Securities Issuer

1-7-2 Otemachi, Chiyoda-ku, Tokyo

SANKEI REAL ESTATE Inc.

Representative: Yuichi Ota, Executive Director

(TSE code: 2972)

Asset Management Company

Sankei Building Asset Management Co., Ltd.

Representative:	Yuichi Ota
	President and Chief Executive Officer
Contact:	Atsushi Mukai
	Director and Chief Finance & IR Officer
	TEL: [phone]

Notice Concerning Differences from Operating Forecasts and Distribution Forecasts

in Actual Results for the Fiscal Period Ended February 2021

SANKEI REAL ESTATE Inc. ("SANKEI REAL ESTATE") announces that differences from the operating forecasts and distribution forecasts announced on October 15, 2020, resulted in the following actual results for the fiscal period ended February 2021 (from September 1, 2020 to February 28, 2021).

1. Differences from the figures of operating forecasts and distribution forecasts in the figures of actual results for the fiscal period ended February 2021

					Distribution
					Distribution
					per unit	Distribution
	Operating	Operating	Ordinary		per unit
		(yen)	in excess of
		(yen)
	revenue	profit	profit	Net Profit
	(including	earnings
	(excluding
	(million yen)	(million yen)	(million yen)	(million yen)	distribution
	distribution	per unit
					in excess of
					in excess of	(yen)
					earnings)
					earnings)
Previous forecasts	2,135	1,051	955	954	2,676	2,676	‐
(A)
Actual results	2,147	1,118	1,017	1,016	2,849	2,849	‐
(B)
Amount of change	12	67	61	61	173	173	‐
(B−A)
Rate of change	0.6%	6.4%	6.5%	6.5%	6.5%	6.5%	‐
(Reference)
Actual result for the	2,005	996	904	903	2,532	2,532	‐
previous fiscal period
(Ended August 2020)
(Reference) Fiscal period ended February 2021
Number of investment units issued and outstanding at end of period: 356,800 units

(Note 1) For the figures of actual results, please refer to "(REIT) Financial Report for the Fiscal Period Ended February 2021" dated April 15, 2021.

(Note 2) Figures are rounded down to the nearest specified unit and the rate of change is rounded to one decimal place.

2. Reasons for differences

Actual result exceeded the previous forecasts as a result of mainly the following reasons: (i) Of the operating revenue that were initially assumed, decrease in rent revenue from the leasing business due to the cancellation of tenants and rent reductions and exemptions, etc., those were expected to be caused by the spread of the novel coronavirus (COVID-19), was minimal, and (ii) Of the operating expenses that were initially assumed, decrease in the amount of repair expenses as expenses related to leasing business due to postponement of the timing of implementation.

* SANKEI REAL ESTATE Inc. website: https://www.s-reit.co.jp/en/