Translation of Japanese Original
September 5, 2024
To All Concerned Parties
REIT Issuer:
KDX Realty Investment Corporation
Representative: Hiroaki Momoi, Executive Director(Securities Code: 8972)
Asset Management Company:
Kenedix Real Estate Fund Management, Inc.
Representative: Akihiro Asano, President & CEO
Contact:
Michiru Nagamata, Head of Strategic Planning,
Listed REIT Department
TEL:+81-3-5157-6010

Notice Concerning Issuance of Investment Corporation Bonds (Green Bonds)
KDX Realty Investment Corporation (“KDXR”) today announced the decision to issue investment corporation bonds(green bonds), based on the comprehensive resolution passed at the Board of Directors’ Meeting held on July 25, 2024.
The details are provided as follows.

1. Outline of Investment Corporation Bonds (Green Bonds)(1)

Name of Investment

KDX Realty Investment Corporation First Series Unsecured Investment

Corporation Bonds

Corporation Bonds (Ranking pari passu among specified investment corporation
bonds) (Green Bonds) (“the Investment Corporation Bonds”)(2)

Total Issue Amount

3,000 million yen(3)Form of Bond Certificate

Subject to the provisions of the Act on Book-Entry Transfer of Corporate Bonds(4)

Issue Price

100 yen per 100 yen of each bond(5)

Redemption Price

100 yen per 100 yen of each bond

(6)

Interest Rate

1.468% per annum(7)

Denomination Price

100 million yen(8)Offering Method

Public offering(9)

Subscription Date

Thursday, September 5, 2024

(10)

Payment Date

Wednesday, September 11, 2024

(11)

Collateral / Guarantee

Neither collateral nor guarantee is provided for the applicable, and no asset areand Shares, Bond certificates will not be issued.

specifically secured as collateral for the Investment Corporation Bonds.
(12)

Redemption Method andMonday, September 11, 2034Date

Investment Corporation Bonds may be purchased and cancelled at any time after
the payment date, except for the case separately provided by law or specified inoperational rules and other rules of book-entry transfer institution.
If the redemption date of the Investment Corporation Bonds falls on a bankholiday, the bank payment will be moved to the preceding bank business day.

(13)

Interest Payment Date

The first interest payment date will be March 31, 2025, and thereafter the last
day of March and September of each year, and the redemption date will be theinterest payment date. (If the interest payment date falls on a bank holiday, thepayment will be moved to the preceding bank business day.)(14)

Credit Rating

AA (Japan Credit Rating Agency, Ltd.)(15)

Financial Covenant

Negative pledge is set(16)

Book-entry Transfer

Japan Securities Depository Center, Inc.

Institution

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(17)

Fiscal Agent, Issuing

MUFG Bank, Ltd.

Agent and Payment Agent(18)

Underwriters

SMBC Nikko Securities Inc.
Nomura Securities Co., Ltd.
Mizuho Securities Co., Ltd.

2. Purpose and Reason for the Issuance
KDXR has positioned sustainability improvement initiatives aimed at realizing a sustainable society as an importantbusiness management issue to fulfill its corporate social responsibility, and decided to issue the Investment
Corporation Bonds as green bonds from the view that the issuance enables more committed efforts to improvesustainability and further contribution to development of the domestic green bond market by offering opportunities tothe universe of investors who take active stance towards ESG investment.
Furthermore, the Investment Corporation Bonds are issued as green bonds based on its “Sustainability Finance
Framework” (“the Framework”), which obtained the second-party opinion from Japan Credit Rating Agency, Ltd., athird-party evaluator.

3. Amount of Funds to be Raised, Use of Proceeds and Scheduled Disbursement(1) Amount of Funds to be Raised (estimated net proceeds)
2,978 million yen(2) Specific Use of Proceeds and Scheduled Disbursement
KDXR plans to use the estimated net proceeds of 2,978 million yen for prepayment of a portion of borrowings
that was borrowed for the purpose to acquire Okinawa Prince Hotel Ocean View Ginowan, which is an eligible
green asset (Note 1) (“the Prepayment”) (Note 2). Proceeds will be managed in cash or cash equivalents until it isallocated to the Prepayment.
Note 1: “Eligible green assets” are green buildings set forth in “Green Eligibility Criteria (1)” of Green Eligibility Criteria
below, which are defined in the Framework:
Green Eligibility Criteria (1)TypeValidity Period
Eligibility Rank
DBJ Green Building Certification (Note 3)
CASBEE for Real Estate (Note 4)

Three years from the3 stars or abovecertification obtained date
Five years from theB+ rank or higher
certification obtained date・Existing buildings constructed on orBELS Evaluation (Note 5),
including non-residence and ZEB
Newly acquired on or after April 1, 2024

BELS Evaluation,
including non-residence and ZEB
Already acquired on or before March 31, 2024
BELS Evaluation,
including residence and ZEH
Newly acquired on or after April 1, 2024

-after April 1, 2016
4 or more・Existing buildings constructed on or-

before March 31, 2016
3 or more; however, for logistics
facilities, BEI shall be less than 0.75.
3 or more; however, for logistics
facilities, BEI shall be less than 0.75.
・Existing buildings constructed on or-after April 1, 2016
3 or more・Existing buildings constructed on or
before March 31, 2016
2 or more
3 or more

BELS Evaluation, including residence andZEH
Already acquired on or before March 31, 2024

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Green Eligibility Criteria (2)・Renovation work, including facilities, to reduce energy consumption, water consumption and GHG emissions or
improve other environmental benefits in real estate managed, which shall be effective to reduce consumption oremissions by 30 percent or more compared to the previous levels.
・Facility refurbishments that improve the evaluation level by one or more in any of the certification specified in theEligibility Criteria (1)・Introduction or acquisition of facilities related to renewables
Note 2: Details of the Prepayment is as follows:

SeriesLenderBorrowingAmount(Millions ofYen)

0008-A

Mizuho Bank,
Ltd.

5,000

Repayment
Amount(Millions ofYen)

Amount after
Repayment(Millions ofYen)

Drawdown
Date

Principal
Repayment
Date

Prepayment
Date

3,000

2,000

February
1, 2024

January
31, 2025

September
30, 2024

Note 3: “DBJ Green Building Certification” is a certification system that was established in April 2011 as an initiative tosupport its customers’ environmentally and socially conscious management of their real estate. The program evaluatesand certifies real estate with environmental and social considerations, taking into account each property's
environmental features and measures taken for various stakeholders, such as disaster and community-consciousmeasures.
Note 4: “Certification for CASBEE for Real Estate” is an evaluation system provided by the Institute for Building
Environment and Energy Conservation (IBEC), to assess and evaluate the environmental performance of buildings,
developed under the auspices of the Ministry of Land, Infrastructure, Transport and Tourism.
Note 5: “BELS Certification” is the third-party certification system to rate houses and buildings in accordance with duty tomake effort to label energy saving performance in the Act on Improving Energy Consumption Performance forArchitectural Structures. Houses and buildings are evaluated based on the value of BEI (Building Energy Index)
derived from the primary energy consumption based on the building energy consumption performance standard set bythe government. The same shall apply hereafter.

4. Status of Interest-bearing Debt after the Issuance of the Investment Corporation Bonds and the Prepayment(as of September 30, 2024)

Balance Before theIssuance of theInvestment
Corporation Bonds
and the Prepayment

Classification(Note 2)

Short-term Borrowings
Long-term Borrowings (Note 3)
Total Borrowings
Investment Corporation Bonds
Total Borrowings and Investment Corporation Bonds

11,550508,450
520,000
25,700545,700(Millions of yen)
Balance After theIssuance of theInvestment
Difference
Corporation Bonds
and the Prepayment(Note 1)8,550-3,000

508,450
517,000
28,700-3,000+3,000

545,700-

Note 1: Figures for “After Issuance of the Investment Corporation Bonds and the Prepayment” are based on the assumption thatthe issuance of the Investment Corporation Bonds and the Prepayment are implemented and that there are no other new
debt financing, repayment of the existing borrowings, and issuance and redemption of investment corporation bonds by
September 30, 2024, when the Prepayment is planned to be completed. However, besides the issuance of theInvestment Corporation Bonds and the Prepayment, in the event of new borrowings, repayment of existing loans andissuance and redemption of investment corporation bonds, status of borrowings and investment corporation bonds as of
September 30, 2024 may differ from the above.
Note 2: Short-term borrowings refer to the amount of borrowings with a period of less than or equal to one year from theborrowing date to the maturity date. However, in case where the maturity date has been moved to a different business
day due to the maturity date falls on a non-business day, and as a result the borrowing period surpasses one year, theborrowings are included in short-term borrowings.
Note 3: Long-term borrowings refer to the amount of borrowings with a period of more than one year from the borrowing dateto the maturity date.

35. Other
Risks pertaining to the the issuance, redemption and others of the Investment Corporation Bonds remain unchanged
from the description of “Investment Risks” described in the Securities Report submitted on July 25, 2024.

【Reference】
KDXR has submitted a Shelf Registration Supplements with regard to the issuance of the Investment Corporation
Bonds to the Director of the Kanto Local Finance Bureau as of today.

KDXR’s website: https://www.kdx-reit.com/eng/[Provisional Translation Only]
This document is an English translation of the original Japanese document and is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

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