Investor Presentation for Merger
June 13, 2023

This exchange offer or business combination is made for the securities of a Japanese company. The offer is subject to disclosure
requirements of Japan that are different from those of the United States. Financial statements included in the document, if any, havebeen prepared in accordance with Japanese accounting standards that may not be comparable to the financial statements of UnitedStates companies.
It may be difficult for you to enforce your rights and any claim you may have arising under U.S. federal securities laws, since the issuer
is located in Japan, and some or all of its officers and directors may be residents of Japan. You may not be able to sue a Japanesecompany or its officers or directors in a Japanese court for violations of U.S. securities laws. It may be difficult to compel a Japanesecompany and its affiliates to subject themselves to a U.S. court’s judgment.
You should be aware that the issuer may purchase securities otherwise than under the exchange offer, such as in open market or
privately negotiated purchases.

Table of Contents
1. Overview of Merger

Appendix

Overview of the Investment Corporation after Merger

p.5

Strengths, Challenges and Benefits of Merger

p.26

Merger Scheme and Schedule

p.6

Outline of New Acquisition

p.27-28

New REIT at a Glance

p.7

Post-Merger Portfolio

p.29-30

Priorities of Property Consideration within
Asset Management Company

p.31
p.31

Asset Management Fee Structure

p.32

Goodwill

p.33

Overview of 3 REITs

p.34

Track Record of 3 REITs

p.35-36

Notes

p.37-42Disclaimer

p.43

2. Merger Rationale
Merger Rationale: Adapting to Environmental Changes

p.9

Sustainable Growth Driven by Expansion of Investment Universe

p.10

Improvement in Market Presence and Stability

p.11

Further Commitment to Sustainability

p.12-13

3. Growth Strategy
Post-Merger Growth Strategy

p.15

Expand Investment Universeto Acquire New Growth Opportunities

p.16
p.16

Enhance Profitability through Asset Reshuffling

p.17

Robust Pipeline

p.18

Implement Active Management to Acquire Upside Revenues

p.19

Securing Financial Flexibility and Enhancing Risk Resiliencep.20-21

4. Earnings Forecast
Earnings Forecast of New REIT

p.23

DPU Forecast

p.24

3

1. Overview of Merger

Overview of Merger

Overview of the Investment Corporation after Merger
Unchanging AssetManagement
Philosophy

MergerUtilization of acquisition
expertise /Pursuit of diversified
sourcing opportunities

Proactive fund management
to maximize unitholder value

Sustainable growth withexpanded investment universe

No. of Properties

350(No. 1 in J-REIT)

AUM
1,149 bn yen(No. 3 in J-REIT)

Achieve Sustainable Growth
by Adapting toEnvironmental Changes
Efforts at a high standard to
pursue sustainability

New Growth
Opportunities

Profitability enhancement
through flexible portfolio
strategy, such as asset
reshuffling across different
asset types

Improvement in market
presence and stability
through AUM expansion

5Overview of Merger

Merger Scheme and Schedule
Type of Merger

 Absorption-type merger• Surviving REIT: Kenedix Office Investment Corporation (KDO)
Dissolving REITs: Kenedix Residential Next Investment Corporation (KDR), Kenedix Retail REIT Corporation (KRR)• Acquirer under the Accounting Standard for Business Combinations: KDO

Merger Ratio KDO : KDR = 1 : 1.34, KDO : KRR = 1 : 1.68
(before investment unit split, KDO : KDR = 1 : 0.67, KDO : KRR = 1 : 0.84)• Allocate 1.34 units of KDO per 1 unit of KDR• Allocate 1.68 units of KDO per 1 unit of KRR* KDO will implement a 2-to-1 split of the investment units in order to enable the unitholders of KDR and KRR tocontinue to hold the New REIT’s investment units after the Merger

Execution of Merger Agreement
Jun. 13, 2023
Record date for General Meetings of Unitholders
Jun. 30, 2023
KDO: General Meetings of Unitholders
Aug. 22, 2023

KDR: General Meetings of Unitholders
Aug. 21, 2023

KRR: General Meetings of Unitholders
Aug. 21, 2023

DelistingOct. 30, 2023
Investment unit split
Nov. 1, 2023
Effective date of Merger
Nov. 1, 2023
Payment of distributions to
KDO unitholders
Jan. 2024

Payment upon the Merger to
KDR unitholders
Jan. 2024

Payment upon the Merger to
KRR unitholders
Jan. 2024

End of the first fiscal period Post-Merger
Apr. 30, 2024
6

Overview of Merger

New REIT at a Glance
KDO(Surviving REIT)

AUM

453.3 bn yen

304.2 bn yen

270.3 bn yen

19.6 bn yen

Number of
Properties

97 properties

182 properties

70 properties

4 properties

Unrealized
Gain

118.4 bn yen--

2.0 bn yen

MarketCapitalization

268.1 bn yen

228.8 bn yen

151.1 bn yen

Aim to increase

LTV

45.3%

50.2%

45.0%

43.5%

44.3 bn yen-

28.9 bn yen

155.7 bn yen

Credit Rating(JCR)

AA (Stable)AA- (Stable)AA- (Stable)

Aim to maintain or
upgradeEnd of Fiscal
Periods

Apr. / Oct.

Jan. / Jul.

Mar. / Sep.

Apr. / Oct.

(Total assets basis)

Borrowing
Capacity

KDR
KRR(Dissolving REIT) (Dissolving REIT)

Properties to be
Acquired

New REIT

Key Metrics

Properties to be
Disposed of(Post Merger andAsset Reshuffling)

9.9 bn yen

1,149.8 bn yen(Anticipated disposal price)

2 properties

350 properties

1.5 bn yen

119.2 bn yen(Anticipated gain on sales)(Assuming leveraging
up to 50%)

7

2. Merger Rationale

Merger Rationale

Merger Rationale: Adapting to Environmental Changes
Changesin theEnvironment

Consecutive and discontinuouschanges in social structure,accelerated by demographics
and COVID-19 pandemic

Changes in financial andeconomic environment,
including rising interest rates
and inflation

Growing awareness ofsustainability

1 Sustainable Growth Driven by Expansion of Investment Universe
 Increase in acquisition opportunities by expanding the investment universe
 Flexible portfolio strategy, such as asset reshuffling across different asset types, to enhance profitability

2 Improvement in Market Presence and Stability
 Significant improvement in the market presence and liquidity, with the enlarged AUM of over 1 tn yen, the third largest

among all J-REITs
 Enhanced stability with more diversified portfolio consisting of 350 properties, the largest number of properties among

all J-REITs

3 Further Commitment to Sustainability
 Integration and elevation of expertise of the 3 REITs to make the New REIT a leading company in sustainability

initiatives
 Enhancement of governance and promotion of diversity

9Merger Rationale

Sustainable Growth Driven by Expansion of Investment Universe The New REIT aims to achieve sustainable growth by expanding the investment universe to increase acquisition opportunities
and ensure flexibility in the asset management strategy
Expansion of Investment Universe and Flexible Portfolio Strategy
Expansion of the investment universe toincrease acquisition opportunities

Profitability enhancement through flexible
portfolio strategy, such as asset
reshuffling across different asset types• Continued focus on mid-sized office,residential, healthcare and shopping
centers for daily needs• Additional focus on logistics and hotels,
which the 3 REITs have had limited
exposure• Option of asset reshuffling acrossdifferent asset types, disposing of
weakened properties• Invest in sectors with greater growthpotential to improve portfolio profitability

HOTEL

中規模オフィスビル
Mid-sized Office＋Mid-sized Office

Residential

Sustainable
Growthホテル
Residential

Shopping Centers
for Daily Needs

Healthcare

Healthcare
居住用施設

Shopping Centers for
物流施設
Daily Needs
HOTEL

HOTEL

Logistics

ヘルスケア施設
Hotels

Logistics

Hotels10

Merger Rationale

Improvement in Market Presence and Stability
 AUM of the New REIT is anticipated to be the third largest among all J-REITs, enhancing the market presence significantly. Possibility ofinclusion in the MSCI World Standard Index Achieve stability with diversified portfolio consisting of the largest number of properties among all J-REITs
 Aim for AUM of 1.5 tn yen
Positioning of New REIT
(100 mn yen)AUM

15,000

3rd largest among 58 J-REITs
11,49812,000

Achieving AUM of over 1 tn yen
consisting of the largest number ofproperties among all J-REITs

9,000

6,000

3,000
・・・・・

0
NBF
Number of
Properties

JMF

New
REIT
[新REIT]

JRE

NMF

DHR

Orion
KDO

Rigel
KDR

Sirius
KRR

76

288

230

97

182

70

MSCI Index
Constituent

MSCI Index
Constituent

MSCI Index
Constituent

No.1

70

133

MSCI Index
Constituent

MSCI Index
Constituent

350

11

Merger Rationale

Further Commitment to Sustainability (1) 3 REITs have recognized the importance of sustainability and proactively focused on initiatives for sustainability consistently The New REIT aims to be a leading company in sustainability initiatives by integrating and elevating expertise cultivated by 3 REITs
Key Initiatives for Sustainability Conducted by 3 REITs

KDO

KDR

KRR

GRESB
5 Stars

GRESB
3 Stars

GRESB
4 Stars

Establishment of GHG emission
reduction target
Acquisition of SBT Certification

Establishment of GHG emission
reduction target

Establishment of GHG emission
reduction target

Properties with environmental
certifications: 71.0%

Issuance of social bonds

Properties with environmental
certifications: 69.5%

Properties with renewable energy
introduced: 64.6%

Introduction of
investment unit performance fee

Introduction of
investment unit performance fee

Introduction of DPU-linked fee

Introduction of EPU-linked fee

Introduction of DPU-linked fee

Integration and Elevationof Expertise of 3 REITs

Aim to be a Leading Company in Sustainability Initiatives
12

Merger Rationale

Further Commitment to Sustainability (2) New REIT further commits to sustainability with introduction of a new asset management fee structure linked to unitholders’ interest andsustainability indicators, reinforcement of the board structure with more supervisory directors, and promotion of diversity
Introduction of New Fee Structure and Building Management Structure to Further Commit to Sustainability
Introduction of New Asset Management Fee Structure

Reinforced Board with More Supervisory Directors /Promotion of Diversity(1) Unitholders’ interest-linked fee

 1 Executive Director– A. Income / EPU-linked fee

 4 Supervisory Directors– B. Investment unit performance fee– C. Gain on sales-based fee(2) ESG performance-linked fee– Appointing from each of the 3 REITs
Background as a lawyer, an accountant, and in healthcare
sector(3) Acquisition fee(4) Asset-based fee(5) Merger fee

Asset management fee structurealigned with unitholders’ interestand sustainability indicators– Newly appointing an additional Supervisory Director
Background in management of J-REIT

Ratio of Female Board Directors: 40% (planned)
Diversified management with in-depth expertise13

3. Growth Strategy

Growth Strategy

Post-Merger Growth Strategy

Expand investment universe to acquire new growth opportunities1 Succession of investment policies of 3 REITs with continued focus on their targeted sectors
 Expansion of investment universe to seek new investment opportunities with growth potential

Enhance profitability through asset reshuffling2

 Pursue both stability and growth in a changing environment with constant asset reshuffling that contributes toprofitability
 Asset reshuffling in a timely manner to maximize unitholders’ value

Implement active management to acquire upside revenues

3

4

 Maximize revenues from internal growth through active management and expand external growth opportunities Seek upside revenues through enhanced risk tolerance, along with stability

Securing financial flexibility and enhancing risk resilience Borrowing capacity for acquisition increased; control LTV level appropriately according to environmental changes
 Aim to further enhance risk resilience with strengthened balance sheet

15

Growth Strategy

Expand Investment Universe to Acquire New Growth Opportunities
 Aim for further growth of portfolio by succeeding the current target focus and expanding the investment universe Pursue investment in areas optimal to each targeted sector without limiting targeted area in Japan There is no target value for the share of ownership by targeted sectors
Investment Policies by Targeted Sectors
Asset TypeMid-sized
Office Buildings

Unchanging
AssetManagement
Philosophy

Ratio as of Merger

38.7%

Supportive Demand / Ongoing Investment Policy
 Stable demand backed by a large pool of potential tenants
 Focus on the Tokyo metropolitan area and local core cities Stable demand in urban areas

Residential
Properties

27.6%

Shopping Centers
for Daily Needs

23.9%

 Focus on area’s ability to attract people in the Tokyo metropolitan area and local
economic zones
 Stable demand for daily necessities
 Invest mainly in four large metropolitan areas with relatively stable demographics
 Growing demand in the aging society

Healthcare
Facilities

7.1%

Logistics
Facilities

1.8%

Hotels

0.8%

HOTEL

New Growth
Opportunities

 Invest in consideration not only of locational characteristics, but of the level of costs
incurred by residents and of ratio of remuneration received for nursing care services
to the operator’s income Growing demand backed by accelerated growth of e-commerce amid COVID-19
pandemic
 Invest in logistics facilities located near major roads and expressways, which
provides good access to core cities Consistent expansion of demand, driven by the government’s promotion of tourism
 Focus on hotels in areas with tourist demand Assets contributing to stabilization and growth of the portfolio
 Sectors with stable demand or growth potential in environmental changes

Others- Potential investment in complex facilities and properties in bulk transactions acrossmultiple targeted sectors
 Potential investment in assets contributing to sustainability

Notes: Ratio as of Merger in Mid-sized Office Buildings includes office buildings other than mid-sized office buildings owned by KDO.

16

Growth Strategy

Enhance Profitability through Asset Reshuffling Continue asset reshuffling that enhances profitability, in pursuit of both stability and growth even under environmental changes
 Asset reshuffling in a timely manner to maximize unitholders’ value
 Utilize gain on sales from asset reshuffling for distributions and internal reserves

Acquisition theme:
Acquisition of Growth Potential

Disposal theme:
Risk-off

Assets with growth potential in demand

Assets with weakened competitivenessand decreased profitability

Scheduled Asset Reshuffling
Properties to be Acquired(total anticipated acquisition price: 19,664 mn yen)

River City 21
East Towers II

Properties to be Disposed of(total anticipated disposal price: 9,930 mn yen)remm roppongi
Akishima
building
Distribution Center York Mart Higashi(20% quasi
Michinobe(Land)

Harajuku
F.F. Building

KDX Nagoya
Sakae Building

Anticipateddisposal price

3,880 mn yen

6,050 mn yen

SectorOfficeOfficeLocation

Shibuya ward, Tokyo

Nagoya, Aichi

Appraisal value

3,880 mn yen

5,740 mn yen

4,620 mn yen

Gain / loss on sales

1,388 mn yen

177 mn yen

Sep. 25, 2023

Scheduled disposal
date(25% quasi
co-ownership interest)

co-ownership interest)

Anticipatedacquisition price

9,232 mn yen

3,960 mn yen

1,872 mn yen

4,600 mn yen

SectorResidential

Hotels

Logistics

RetailAkishima, Tokyo

Kamagaya, Chiba

Location
Appraisal value
Scheduledacquisition date

Chuo ward, Tokyo Minato ward, Tokyo
10,775 mn yen

4,060 mn yen
Nov. 1, 2023

2,300 mn yen

Nov. 1, 2023

17

Growth Strategy

Robust Pipeline Pipeline increased through expansion of the investment universe along with Kenedix Group’s acquisition expertise ability andpursuit of diversified sourcing opportunities

Pipeline total of 21 properties worth more than 80 bn yen
Property Name
Residential

Nakamarucho Project
Higashi Yukigaya Residence

Location(Scheduled)Completion

Itabashi ward, Tokyo

Mar. 2024

Ota ward, Tokyo

Apr. 1998

2 properties

Total

Property Name

RetailLocation

Completion

Inageya Shinyuri Yonetty Ozenji-mae

Kawasaki, Kanagawa

Aug. 2015

iias Kasugai(30% quasi co-ownership interest)

Kasugai, Aichi(1) Aug. 2021
(2) Oct. 1991

Nakamarucho Project

Higashi Yukigaya
Residence

Inageya Shinyuri
Yonetty Ozenji-mae

iias Kasugai(30% quasi
co-ownership interest)

remm roppongi building(80% quasi
co-ownership interest)

Prince Hotel Okinawa
Ocean View Ginowan

Other 5 properties

7 properties

Total
Healthcare

3 properties

3 properties

Total
Logistics

7 properties

7 properties

Total
Property Name
Hotel
Total

Location

Completion

remm roppongi building(80% quasi co-ownership interest)

Minato ward, Tokyo

Feb. 2017

Prince Hotel Okinawa Ocean View Ginowan

Ginowan, Okinawa

Jan. 2022

2 properties

18

Growth Strategy

Implement Active Management to Acquire Upside Revenues
 Maximize revenues from internal growth through active management and expand external growth opportunities Seek upside revenues through enhanced risk tolerance, along with stability

Active Management to Earn Upside Revenues, Driven by Greater Risk Tolerance
Aim to Acquire Assets with New Initiatives based on Active Management
Succeeding Initiatives taken with Current REITs

Potential Initiatives
Acquisition of lowoccupancy /unoccupied
properties on thepremise of leasing up

Conversion
Use of Underutilized Space
Renovation
Kitera Plaza Aobadai

Unicus Ina

KDX Residence
Akihabara II

River City 21
East Towers II

Change of property
use across the sector
Equity investment

Acquisition of a former
health club facility toconvert into a shopping
center for daily needs,
including a supermarket asa core tenant

Construction of newbuilding for a restaurantin 2022 (2nd time)

Renovation of the entire
building from serviced
apartment with furniture into
units for rent

Room upgrading works areunderway

Assumed increase in NOI:
+16 mn yen / year (+8.0%)

Average unit price ofcontract rent +26%

Average unit price ofcontract rent +27%

Value-upgrading
works andredevelopment of
aged properties

19

Growth Strategy

Securing Financial Flexibility and Enhancing Risk Resilience (1) Gain greater borrowing capacity through the Merger; control LTV level appropriately according to environmental changes
 Pursue further upgrade in credit rating as AUM increase enhances the financial stability
Lowered LTV
LTV of 3 REITs

AUM and Credit Ratings of J-REIT(100 mn yen)
16,000(total assets basis)

After Merger andAsset Reshuffling

As of End of Latest
Fiscal Periods

KDO

45.3%

KDR

50.2%

KRR

LTV (total assets basis)43.5%

14,00012,000（Appraisal LTV：39.6%）

45.0%

10,000

Expansion of Borrowing Capacity(Assuming leveraging up to 50%)

New REIT
AUM 1,149.8 bn yen

8,000(100 mn yen)

1,557

1,600

6,000

1,400

KDR
AA-

1,200
1,000

KDO
AA

4,000

800
600
400

443

2,000

KRR
AA-

289

200

0

0
[Orion]KDO[Rigel]KDR[Sirius]
KRR

After Merger and［新REIT］
Asset
Reshuffling

0
A+

AA-

AA

AA+

20

Growth Strategy

Securing Financial Flexibility and Enhancing Risk Resilience (2) Secure stable financial base with well-diversified debt maturities and debt financing in line with financial and economic circumstances

Financial Highlights
Total Debt Balance

Average Interest Rate for the Debt

Average Remaining Period to Maturity

510.2 bn yen

0.84%

3.7 years

Number of Correspondent
Financial Institutions

Commitment Line /Maximum AmountKDO 9.0 bn yen
KDR 4.5 bn yen
KRR 3.0 bn yen

37 institutions

Fixed Interest Rate Debt Ratio

96.5%
Sustainable Finance16.5 bn yen

Green FinanceSocial Finance37.8 bn yen

8.6 bn yen

Maturity Ladder(100 mn yen)

500
380

400

369
324

300
200

476

444

225

358

390

456
419

416

234

216
173

113
100

56

27

28

0
FP32/4
FP23/10 FP24/4 FP24/10 FP25/4 FP25/10 FP26/4 FP26/10 FP27/4 FP27/10 FP28/4 FP28/10 FP29/4 FP29/10 FP30/4 FP30/10 FP31/4 FP31/10
21

23/10期 24/4期 24/10期 25/4期 25/10期 26/4期 26/10期 27/4期 27/10期 28/4期 28/10期 29/4期 29/10期 30/4期 30/10期 31/4期 31/10期 32/4期
Borrowings
Corporation Bonds
借入金Investment
投資法人債

21

4. Earnings Forecast

Earnings Forecast

Earnings Forecast of New REIT

Forecast for the First Fiscal Period Post-Merger(FP 2024/4)
Operating Revenues

38,752 mn yen

Operating Income

16,476 mn yen

Ordinary Income

13,902 mn yen

Net Income

39,183 mn yen

Reversal of Internal Reserves
Total Distributions

Net Income per Unit
Reversal of Internal Reserves per Unit
Distributions per Unit

1,841 mn yen
15,743 mn yen

9,458 yen
444 yen
3,800 yen

Notes: Negative goodwill arising from this merger is estimated at 26,638 mn yen, and the processing of negative goodwill is planned to be lump sum recorded in the fiscal year ending Apr. 2024 as extraordinary income. For more information, please refer to the assumptions for earnings
forecast for Note of p.23-34.
“Internal Reserves” and “Reversal of Internal Reserves” are calculated on the premise that the amount of the negative goodwill and the reduction entry are recorded; however, since the negative goodwill is the estimated amount as of the date of this material, the amount of the internal
reserves and reversal of internal reserves of the REIT after the Merger is not guaranteed.

23

Earnings Forecast

DPU Forecast
 DPU forecast for the fiscal period ending Apr. 2024 (Post-Merger) is 3,800 yen
 Aim to increase DPU through asset reshuffling, external growth, internal growth and cost reduction, as well as gain on sales, and utilize
internal reserves of 28.7 bn yen (6,948 yen / unit). Target stabilized DPU level of 4,000 yen while maintaining and increasing from theprevious DPU levels of the 3 REITs
(yen)

5,000

4,000

Temporary Factor

Temporary Factor
 Gain on sales of
KDX Kawasaki-Ekimae
Hon-cho Building

Temporary Factor

Target stabilized DPU level of
4,000 yen

 Reversal of allowance fortemporary adjustment

 Effect before propertyrelated taxes expensed
for the properties
 Gain on sales of KDX
acquired during 2022
Residence Higashi-sakura II
fiscal year

3,877

3,823

3,800

3,176
3,000

DPU Constituents Asset reshuffling External growth Internal growth Cost reduction
effect Use of internal
reserves
 Gain on sales

Temporary Factor
 Gain on sales associatedwith the Asset Reshuffling Use of internal reserves
 Expenses related to theMerger

2,000

1,000

0

KDO

KDR

KRR

New REIT

New REIT

FP 2023/4(Actual)

FP 2023/1(Actual)

FP 2023/3(Actual)

FP 2024/4(Forecast)Target for
FP 2024/10
and onwards

Notes: In order to compare with DPU forecast after the Merger, actual DPU of KDO is divided by 2, actual DPU of KDR and KRR are divided by the merger ratio of 1.34 and 1.68 respectively.
“Internal Reserves” is 28,788 mn yen of voluntary retained earnings (3,759 mn yen of reduction entry, 25,028 mn yen of reserve for temporary difference adjustment (RTA)) expected to be recorded in the fiscal period ending Apr. 2024. However, the amount of RTA may change
depending on the amount of negative goodwill recorded. The amount of negative goodwill is the estimated value as of the date of this document.
The amount of internal reserves per unit is the amount of the internal reserves divided by the expected number of investment units issued and outstanding as of Apr. 30, 2024.

24

Appendix

Appendix

Strengths, Challenges and Benefits of Merger
KDO

Strengths

 Stability in occupancy and rent
revenue, backed by the welldeveloped that of mid-sized offices
 Sufficient unrealized gains andinternal reserves that support stability
in distributions

 Low investment unit price far below
NAV per unit due to concerns over
the office market outlook

Challenges

 Limited opportunities for external
growth due to few acquisition
opportunities and property prices
remaining high Improvement in valuation, driven byenhanced liquidity of investment units

Benefits of Merger

 Asset reshuffling across targeted
sectors types to actualize unrealized
gain and create opportunities forexternal growth

KDR

KRR

 Well-diversified portfolio by area andby housing type, maintaining highoccupancy rate Stable demand for shopping centers
for daily needs

 Continued rent increase even amid
COVID-19 pandemic, followed by therecovery trend in internal growthamong family type assets

 Potential decrease in acquisition
opportunities, especially in residential
properties, due to intensifiedcompetition, despite the track recordin POs for the five consecutive years
 Concern over cost increase in thesituation of interest rate hike, due torelatively high LTV among all J-REITs

 Improvement in valuation, driven byenhanced liquidity of investment units Use of LTV, which is expected to belowered through the Merger, andasset reshuffling among different
asset types to create opportunities forexternal growth Expectations for upgrading of credit
ratings and reduction in debt cost

 Utilization of active asset
management by “one-stop” AM andPM services to execute diversified
measures to enhance profitability

 Stiffer competition in acquisition of
shopping centers for daily needs inthe post-COVID era, despite
abundant pipelines
 Long-term fixed rent bringing small
room for internal growth, and evenworse, concerns over cost increase
due to inflation
 Improvement in valuation with thenew portfolio, and opportunities forexternal growth with the decreased
implied cap rate Minimization of cost increase byacquisition of assets which are less
impacted from inflation
 DPU management through theacquisition of internal reserves
 Expectations for upgrading of credit
ratings and reduction in debt cost26

Appendix

Outline of New Acquisition (1)Residential

River City 21 East Towers II

Hotels(25% quasi co-ownership interest)

Residential facility located in the Tokyo metropolitan area that is high in rarity, and upside revenues
can be expected through rent increase from renovation works
 Small family typed skyscraper residence located in a favorable living environment and good access tomajor business distinct and commercial area
 Stable rental demand is expected from married and family households commuting to Tokyo metropolitan
arearemm roppongi building(20% quasi co-ownership interest)

Located in the Roppongi area which is popular among foreign tourists; stable demand can be
expected from both tourists and business use taking advantage of the location as a busy business
district
 A newly built hotel completed in one of the best commercial areas in Japan. The building with 21 stories
and 1 basement floor is occupied by remm roppongi and restaurant tenants
 The property’s neighborhood is lined with large-sized offices and museum, and is expected to be indemand for both business and tourism
Hinokicho Park

Ishikawajima Park

River City 21
East Towers II

Tokyo Midtown

The National Art Center, Tokyo
Tsukuda Park

Maruetsu
Tsukudajima
Elementary School
Tsukuda JuniorHigh School

National Graduate
Institutefor Policy Studies

Ishikawajima
Memorial Hospital

Azabu Police Station

remm
roppongi
building

Olympic

Roppongi Crossing

Mizuho Bank
Family Mart
Sumitomo
Mitsui Bank
7-Eleven

Chuo Tsukuda
Post Office

Roppongi JuniorHigh School
Roppongi Hills

Toyo Eiwa Jogakuin
Primary School

Mohri Garden

Daiei
TV Asahi

Location
AnticipatedAcquisition Price

Chuo ward, Tokyo Appraisal Value

10,775 mn yen

Location

Minato ward,
Tokyo

Appraisal Value

4,060 mn yen

AnticipatedAcquisition Price

3,960 mn yen

Appraisal NOI

142 mn yen

9,232 mn yen

Appraisal NOI

390 mn yen

Completion

Aug. 2000

Appraisal NOI
Yield

4.2%

Completion

Feb. 2017

Appraisal NOI
Yield

3.6%

Acquisition
Route

SponsorLeasable Units

642 units

Acquisition
Route

SponsorNo. of Guest
Rooms

400 guest rooms

AccessAbout 1-minute walk from Tokyo Metro Hibiya Line /Toei Oedo Line Roppongi Station

AccessAbout 8-minute walk from Tokyo Metro Yurakucho Line /Toei Oedo Line Tsukishima Station27

Appendix

Outline of New Acquisition (2)Logistics

Akishima Distribution Center (Land)

Land ownership interest of a logistics facility with good traffic accessLand ownership interest of a logistics facility that functions as a food processing centerWith convenient access to the Hachioji IC of Chuo Expressway and National Route 16, there
is a potential use for wide-area, semi-wide-area, and regional delivery

Location

AnticipatedAcquisition Price

Gross Land Area

Acquisition
Route

Akishima, Tokyo

1,872 mn yen

10,895.40 ㎡

SMFL MIRAI
Partners

Appraisal Value

Appraisal NOI

Appraisal NOI
Yield

Access2,300 mn yen

74 mn yen

RetailYork Mart Higashi-Michinobe

NSC catering to day-to-day needs of local area customers in the bedroom town inTokyo metropolitan area
NSC consisted of various large-scale stores including York Mart, a supermarket, anelectronic appliance store and a drugstore
Conveniently located surrounded by Tobu Urban Park Line and Shin-Keisei Line, andaccessible from both Prefectural Route 8 (Funatori Line) and Prefectural Route 8 Bypass

Location
AnticipatedAcquisition Price

Kamagaya, Chiba Appraisal Value
4,600 mn yen

Appraisal NOI

216 mn yen

Completion

Oct. 2009

Appraisal NOI
Yield

4.7%

Main Tenant

York Co., Ltd.

Gross Floor Area

8,210.02 ㎡

Acquisition
Route

SMFL MIRAI
Partners

Gross Land Area

8,317.59 ㎡

4.0%
About 5.2km from
Chuo Expressway
Hachioji IC

4,620 mn yen

28Appendix

Post-Merger Portfolio

By Asset Types

Top 10 Properties

Top 10 Tenants(based on rents)

Top 10 Properties

Top 10 Tenants

12.4%

11.1 %

Hotels0.8%

Logistics
1.8%

Healthcare
7.1%
Retail23.9%

Office38.7%

Others87.6%

Others88.9%

Residential
27.6%

29

Appendix

Post-Merger Portfolio by Area

OfficePortfolio

Other Regional
Areas
31.7%

Tokyo Metropolitan
Area

Other Regional
Areas
19.0%
Tokyo 23 wards
45.3%
Other Tokyo
Metropolitan
Area
27.7%

Other Tokyo
Metropolitan
Area
23.0%

Tokyo Metropolitan
Area

68.3%

81.0%

Residential

RetailOther Regional
Areas
23.5%
Other Tokyo
Metropolitan
Area
13.9%

Tokyo Metropolitan
Area

76.5%

5 Central wardsof Tokyo
53.4%

Ordinancedesignated cities,
core cities
and other areas
18.0%
Fukuoka Area
Tokyo Metropolitan
5.7%
Area
Greater Nagoya
43.5%
Area
13.2%

8 Central wardsof Tokyo
39.9%

Other Tokyo 23
wards
22.6%

Four Major
Metropolitan Areas

Greater Osaka
Area
19.6%

82.0%
30

Appendix

Priorities of Property Consideration within Asset Management Company

Mid-sized Offices
Other Offices

1st
2nd

2nd
1st

Residential

1st

2nd

Healthcare

1st-Retail1st

2ndService
HOTEL

2nd

Criteria for “Mid-sized”
Location

Floor area perbuilding

Tokyo 23 wards

2,000 ㎡ or more and13,000 ㎡ or lessOutside Tokyo 23 3,000 ㎡ or more andwards
20,000 ㎡ or less

Criteria for Property TypeStore with thelargest floor area

1stHotels

2nd

1st

Logistics

1st

2nd

RetailStore selling goods
and products

Service

Store providing services

31Appendix

Asset Management Fee Structure

Asset Management Fee Structure (Pre-Merger)
KDO
AM Fee I

KDR

AM Fee II

AM Fee III

Total assets
×0.13%

DPU
×23,000

DPU increase
× Number ofoutstanding
investment
units×10.0%

Acquisition
Fee

Disposition
Fee

Merger Fee

Acquisition
price
×1.0%

Gain onsales
×10.0%

Appraisal valueof assets to be
succeeded
×1.0%(maximum)

AM Fee I

KRR

AM Fee II

AM Fee III

Distributableamount ×
Earnings per
unit
×0.00145%

Vs. TSE REIT
Index
Performance ×
Marketcapitalization
×0.15%

Acquisition
Fee

Disposition
Fee

Merger Fee

Acquisition
price
×1.0%

Disposition
price
×0.5%

Total assets
×0.27%(annual rate)

Appraisal valueof assets to be
succeeded
×1.0%(maximum)

AM Fee I

AM Fee II

AM Fee III

Total assets
×0.27%(annual rate)

Net income
×DPU
×0.0013%

Investment
unit excess
return×Marketcapitalization
×0.1%

Acquisition
Fee

Disposition
Fee

Merger Fee

Acquisition
price
×1.0%

Disposition
price
×0.5%

Appraisal valueof assets to be
succeeded
×1.0%(maximum)

Asset Management Fee Structure (Post-Merger)
New REITAM Fee I

AM Fee II

ESG Performance-linked Fee

Investment Unit
Performance Fee

Total assets×0.12%

Distributable amount*×
EPU*×0.002%(*after deducting gain on sales)

Total assets×0.004%×
1.2～0.8 (linked to status of
GRESB Assessment)

Total assets×0.001%×(1+ excess return of the unit)

Acquisition Fee

Disposition Fee

Merger Fee

Acquisition price×1.0%

Gain on sales×10.0%

Appraisal value of assets tobe succeeded
×1.0% (maximum)

32

Appendix

Goodwill
Goodwill Occurrence
KDR+KRR market value BS(as of Oct. 31, 2023)


Merger consideration

BS of New REIT

If merger consideration is fewer than net assets on amarket value basis ⇒ Negative goodwill
If merger consideration exceeds net assets on a market
value basis ⇒ Positive goodwill

Assetsreceived(Marketvalue)

Liabilities
transferred(Marketvalue)Net assets(Marketvalue)

Positivegoodwill
Negativegoodwill

Mergerconsideration

Post-merger
total assets

Mergerconsideration

Impact of Fluctuation in KDO’s Investment Unit Price
Merger consideration=
KDO’s investment unit price (as of the effective date)× 2,446,037 units (= Number of units newly issued)
If, after the merger announcement, the investment unit price of KDO
 rises⇒”Negative goodwill” will decrease or “Positive goodwill” will
increase drops⇒ “Negative goodwill” will increase or “Positive goodwill”
will decrease

Liabilities

Liabilities

Post-merger
net assets
Negativegoodwill

Post-merger
total assets
Post-merger
net assets
Positivegoodwill

Accounting/Financial Processing of Goodwill
Negative goodwill

Positive goodwill

Processing
on BS

Recording an amount not allocated to
distribution for the 1st post-merger fiscal
period in net assets as reserve fortemporary difference adjustment (RTA)

Recording as intangible
fixed assets

Processing
on PL

Recording as extraordinary income forthe 1st post-merger fiscal period

Regular reversal as
operating expenses
within 20 years

Impact on
distribution

 Reversal of more than 1% of RTA
originally reserved on a continued
basis, which is to be allocated to
distribution
 Use of negative goodwill as a sourceof distribution flexibly, added to net
incomeAllocation of an amountof reserve for reduction
entry equivalent togoodwill amortization to
distribution

33

Appendix

Overview of 3 REITs
Name

KDO

KDR

KRR

Representative(Executive Director)

Hiroaki Momoi

Tetsu Kawashima

Moyuru Watanabe

Supervisory Directors

Yoshihiro Morishima /Takahiro Seki / Akiko Tokuma

Osamu Chiba / Satoshi Ogawa /Osamu Utsunomiya

Yoshitoshi Yasu / Akiko Yamakawa

Securities Code

8972

3278

3453

Listing Date

Jul. 21, 2005

Apr. 26, 2012

Feb. 10, 2015

Fiscal Period

End of Apr. and Oct.

End of Jan. and Jul.

End of Mar. and Sep.

Total Number of
Investment Units

848,430 units

1,070,433 units

602,177 units

Unitholders' Capital

217,970 mn yen

130,379 mn yen

138,058 mn yen

Asset Manager

Kenedix Real Estate Fund Management, Inc.

Asset Custodian

Mizuho Trust & Banking Co., Ltd.

Administrator for
Unitholders’ Register

Sumitomo Mitsui Trust Bank, Limited

Sumitomo Mitsui Trust Bank, Limited

Mizuho Trust & Banking Co., Ltd.

Administrative Agent(Accounting Business)

Mitsubishi UFJ Trust andBanking Corporation

Mizuho Trust & Banking Co., Ltd.

Mizuho Trust & Banking Co., Ltd.

Administrative Agent(Institutional Administration)
Administrative Agent for
Investment Corporation Bond

Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation /MUFG Bank, Ltd.

Sumitomo Mitsui Trust Bank, Limited /MUFG Bank, Ltd.

Sumitomo Mitsui Trust Bank, Limited /MUFG Bank, Ltd.

34

Appendix

Track Record of 3 REITs (AUM)
KDO(100 mn yen)
7,500
6,000
4,500
3,000
1,467
1,500

1,970

2,220

2,201

2,332

2,555

07/10

08/10

09/10

10/10

11/10

2,931

3,048

12/10

13/10

3,883

3,983

3,929

4,208

4,245

4,437

4,401

4,570

4,533

3,699

14/10

15/10

16/10

17/10

18/10

19/10

20/10

21/10

22/10

23/4

2,489

2,657

2,907

3,009

2,332

691

0
05/10

06/10

KDR
(100 mn yen)
4,500
3,000
1,003

1,500

304

304

12/7
12/7期

13/7
13/7期

1,928

1,458

1,481

1,550

15/7
15/7期

16/7
16/7期

17/7
17/7期

18/7
18/7期

19/7
19/7期

20/7
20/7期

21/7
21/7期

22/7
22/7期

23/1
23/1期

2,009

2,264

2,452

2,703

2,128

2,536

2,049

17/9
17/9期

18/9
18/9期

19/9
19/9期

20/9
20/9期

21/9
21/9期

22/9
22/9期

23/3
23/3期

0
05/7
05/7期

06/7
06/7期

07/7
07/7期

08/7
08/7期

09/7
09/7期

10/7
10/7期

11/7
11/7期

14/7
14/7期

KRR
(100 mn yen)
4,000
3,000
1,587

2,000
918

1,000
0
05/9
05/9期

06/9
06/9期

07/9
07/9期

08/9
08/9期

09/9
09/9期

10/9
10/9期

11/9
11/9期

12/9
12/9期

13/9
13/9期

14/9
14/9期

15/9
15/9期

16/9
16/9期

35

Appendix

Track Record of 3 REITs (DPU)
KDO
(yen)
10,000
8,000
6,000
4,000
2,000
0

6,764

6,980

7,809
5,255

5,440

4,798

4,778

4,651

5,030

5,150

5,682

6,250

6,729

6,819

7,692

7,000

7,244

7,647

1,526

05/10期
05/10 06/10期
06/10 07/10期
07/10 08/10期
08/10 09/10期
09/10 10/10期
10/10 11/10期
11/10 12/10期
12/10 13/10期
13/10 14/10期
14/10 15/10期
15/10 16/10期
16/10 17/10期
17/10 18/10期
18/10 19/10期
19/10 20/10期
20/10 21/10期
21/10 22/10期
22/10 23/4期
23/4

KDR
(yen)
5,000
4,000
3,000
2,000
1,000
0

4,026

4,063

4,065

4,117

4,101

4,257

17/7期
17/7

18/7期
18/7

19/7期
19/7

20/7期
20/7

21/7期
21/7

22/7期
22/7

23/1期
23/1

5,974

6,115

6,299

6,486

6,546

6,484

6,514

16/9
16/9期

17/9
17/9期

18/9
18/9期

19/9
19/9期

20/9
20/9期

22/9
22/9期

23/3
23/3期

2,695

3,016

3,123

3,180

3,316

13/7期
13/7

14/7期
14/7

15/7期
15/7

16/7期
16/7

1,689

05/7期
05/7

06/7期
06/7

07/7期
07/7

08/7期
08/7

09/7期
09/7

10/7期
10/7

11/7期
11/7

12/7期
12/7

KRR
(yen)
10,000
8,000
6,000
4,000
2,000
0

7,414

05/9
05/9期

06/9
06/9期

07/9
07/9期

08/9
08/9期

09/9
09/9期

10/9
10/9期

11/9
11/9期

12/9
12/9期

13/9
13/9期

14/9
14/9期

15/9
15/9期

7,328

21/9
21/9期

36

NotesOverallFigures are rounded down to the nearest unit unless otherwise specified in this presentation. However, percentage and years are rounded to the first decimal place.
Therefore, the sum of the values for each item may not match the total.
Unless otherwise specified, AUM and Number of Properties are calculated based on the results as of Apr. 30, 2023 (excluding G.K. KRF43 owned by KDO), and AUM iscalculated based on (anticipated) acquisition price. However, the assets which the New REIT receives from KDR and KRR upon the Merger is calculated based on theappraisal values obtained from the most recent appraisal reports. For details of the AUM for the New REIT, please refer to Note 2 for p. 5.
p. 5(Note 1) The “Merger” means the absorption-type merger between KDO as surviving REIT, KDR and KRR as dissolving REITs expected to be effective as of Nov. 1, 2023. The
same shall apply hereinafter.
(Note 2) Number of properties of the New REIT is calculated by aggregating the number of properties of each REIT with taking into account the number of properties to beacquired and that of properties to be disposed of. KDX Chofu Building, the office compartment and the retail compartment of which are owned by KDO and KRR,
respectively, is counted as one property. AUM of the New REIT is calculated by adding, as a total of anticipated acquisition prices, (i) the sum of the acquisition prices ofproperties, as anticipated in the portfolio of KDO as of Apr. 30, 2023, to which the anticipated acquisition prices of the three properties out of the four properties to beacquired (except York Mart Higashi-Michinobe) are added and from which the acquisition prices of the two properties to be disposed of are subtracted, (ii) the sum of thetotal appraisal value of the assets owned by KDR as of Jan. 31, 2023 and the total acquisition prices of the two properties acquired by KDR on Mar. 1, 2023 and Mar. 29,
2023, respectively, and (iii) the sum of the total appraisal value of KRR as of Mar. 31, 2023 and the appraisal value of the property to be acquired by KRR on Sep. 25,
2023 (York Mart Higashi-Michinobe). The same shall apply hereinafter.
(Note 3) The rankings of the number of properties and AUM in J-REIT are based on the comparison between the number of properties and AUM of the New REIT and those ofother REITs (on a basis of (anticipated) acquisition prices) as of Apr. 30, 2023, including the properties the completion of acquisition or disposal of which are announced
as of that date. Thus, there is no guarantee that the portfolio of the New REIT will have the largest number of properties and the third largest AUM in the market as of theeffective date of the Merger. The same shall apply hereinafter.
p. 6(Note 1) The merger schedule is based on the timeline planned as of the date of this document, and may be changed.
(Note 2) KRR will, in association with the Merger, submit a proposal to change the term of its 17th fiscal period from six months from Apr. 1, 2023 to Sep. 30, 2023, to sevenmonths from Apr. 1, 2023 to Oct. 31, 2023, to a General Meeting of Unitholders scheduled on Aug. 21, 2023.
p. 7(Note 1) “Asset Reshuffling” refers to the acquisition of the Properties to be Acquired and disposal of the Properties to be Disposed of as detailed in p.17. Out of the Properties tobe Acquired, York Mart Higashi-Michinobe is a property to be acquired by KRR on Sep. 25, 2023, prior to the effective date of the Merger, as described in KRR’s press
release “Notice Concerning Acquisition of Property (York Mart Higashi-Michinobe)” dated Jun. 13, 2023.

37

Notesp. 7 (Continued)(Note 2) For details of the “Properties to be Acquired” and “Properties to be Disposed of,” please refer to p.17.
(Note 3) “Unrealized Gain” is represented by a total of differences between the book value and the market value of respective properties held by each of the 3 REITs as of Apr. 30,
2023. Unrealized gain regarding the Properties to be Acquired is calculated by subtracting the anticipated acquisition price from the appraisal value stated on theappraisal report as of May 1, 2023. Anticipated gain on sales regarding the Properties to be Disposed of is calculated based on the differences between the anticipateddisposal price and the estimated book value of each of such Properties to be Disposed of as of the relevant scheduled disposal date, with disposal-related expenses
taken into consideration. Unrealized gain earned by the dissolving REITs are not specified given that such unrealized gain will be incorporated into the calculation of the
AUM of the New REIT on a fair value basis.
(Note 4) “Market Capitalization” is based on the closing price at Tokyo Stock Exchange, Inc. (the “TSE”) as of May 31, 2023.
(Note 5) “LTV (Total assets basis)” is calculated by dividing the total balance of interest-bearing debt as of the end of each fiscal period by the total assets as of the end of eachfiscal period. LTV (total assets basis) of the New REIT is calculated based on the estimates of the balance of interest-bearing debt as of Apr. 30, 2023 and total asset of
the New REIT (for the calculation of the total assets of the New REIT used for calculating LTV of the New REIT, the book value of total asset subtracting the book value ofthe Properties to be Disposed of is used for the total assets owned by KDO as of the end of the latest fiscal period, and the same calculation of the AUM of the New REIT
specified in the Notes 2 for p.5 is used for the rest of the properties), taking into account the Merger and the Asset Reshuffling. Therefore, there is no guarantee that the
LTV indicated in this document is achieved as of the effective date of the Merger.
(Note 6) “Borrowing capacity” refers to the amount of assets that can be acquired when each REIT acquires assets by procuring additional debt through borrowings from financial
institutions and issuance of investment corporation bonds until LTV reaches to 50%. The same shall apply hereinafter. We do not guarantee or promise that debt can beraised or the property can be acquired.
(Note 7) “Credit Rating (JCR)” is represented by the long-term issuer credit rating obtained by each of the 3 REITs from Japan Credit Rating Agency, Ltd. (“JCR”) as of May 31,
2023.
(Note 8) KRR will, in association with the Merger, submit a proposal to change its fiscal period to the General Meeting of Unitholders scheduled on Aug. 21, 2023. For details,
please refer to Note 2 for p.6.
p. 11
(Note 1) AUM and Number of Properties of KDO, KDR, KRR and other J-REITs other than the New REIT are based on the results as of Apr. 30, 2023. NBF, JMF, JRE, NMF andDHR stand for Nippon Building Fund Inc., Japan Metropolitan Fund Investment Corporation, Japan Real Estate Investment Corporation, Nomura Real Estate Master
Fund, Inc. and Daiwa House REIT Investment Corporation, respectively.
(Note 2) “MSCI World Standard Index” refers to an indicator calculated and published by MSCI Inc., with 1,507 constituents from 23 developed markets including Japan as of May
31, 2023.

38

Notesp. 12(Note 1) “GRESB” means “GRESB Real Estate Assessment”, an annual benchmark assessment established primarily by major European pension fund groups, which led thePrinciples for Responsible Investment (PRI), in 2009 that measures ESG (environment, society and governance) considerations in the real estate sector. The same shallapply hereinafter.
(Note 2) “GHG” stands for green house gas.
(Note 3) “SBT” stands for “Science Based Targets” and indicates a target of GHG emission reduction, as certified by “Science Based Targets initiative”, an international joint
initiative established in 2015 by CDP, the United Nations Global Compact, The World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).
(Note 4) “Properties with environmental certifications” means properties receiving either of the following environmental certifications: DBJ Green Building Certification, Certification
for CASBEE for Real Estate, or “Building-Housing Energy-efficiency Labeling System (BELS) Certification”. “Environmental certifications” means these certifications orassessments.
(Note 5) The ratio of properties with environmental certifications refers to the ratio of properties acquiring any environmental certification(s) to all the properties of each of the 3
REITs on a gross floor area basis. A property acquiring more than one environmental certificate is counted as one.
(Note 6) “DBJ Green Building Certification” is a program launched by Development Bank of Japan Inc. in Apr. 2011 for the purpose of supporting properties which give proper careto environment and society (“Green Building”). The program evaluates, certifies and supports properties which are required by society and economy, based oncomprehensive assessment of properties, including evaluation of various factors ranging from properties’ environmental features to their communication withstakeholders, in terms of disaster prevention and proper care for surrounding communities. The same shall apply hereinafter.
(Note 7) “CASBEE” is an evaluation system for rating the environmental performance of buildings, developed under the auspices of the Ministry of Land, Infrastructure, Transport
and Tourism. The system rates the overall environmental performance of buildings from two perspectives: evaluation of the environmental quality and performance ofbuildings themselves and external environmental impact building bring about. The same shall apply hereinafter.
(Note 8) “Building-Housing Energy-efficiency Labeling System (BELS) Certification” is a 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 for Architectural Structures (Act No.53 of 2015, as amended).
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 by the government. The same shall apply hereinafter.
(Note 9) “Properties with renewable energy introduced” means buildings at which CO2 emissions from electricity consumption have been reduced to net zero after a switch to theelectricity derived from effectively renewable energy (certified as Non-Fossil Fuel Energy with Tracking Information etc.). The same shall apply hereinafter.
(Note 10) The ratio of properties with renewable energy introduced refers to the ratio of properties (62 office buildings, based on the number of properties) into which renewableenergy is introduced to all the properties in the portfolio (96 office buildings).
(Note 11) “Social bonds” refers to bonds for which the entire amount of the procured funds is allocated only to initial partial or full investment into new or existing eligible social
projects and reflecting or is compliant with the four core requirements of the social bond principles.

39

Notesp. 13(Note 1) This slide indicates the plan as of the date of this document, not representing what has been determined as of the same date. The plan may be changed later.
(Note 2) “Ratio of Female Board Directors” refers to a ratio of female executive directors and supervisory directors of the New REIT. However, this is an assumption as of the dateof this material, and there is no guarantee that this is consistent with the actual percentage.
p. 16(Note)“Ratio as of Merger” describes the ratio of the assets in each asset type of the New REIT at the time of the Merger and is calculated using the same method as thecalculation for the price of each asset for the AUM of the New REIT in Note 2 for p. 5.

p. 17(Note 1) “Anticipated acquisition price” and “Appraisal value” of River City 21 East Towers II and remm roppongi building indicate those of quasi co-ownership interest to beacquired by the New REIT (River City 21 East Towers II: 25% quasi co-ownership interest, remm roppongi building: 20% quasi co-ownership interest). The same shallapply hereinafter.
(Note 2) “Gain / loss on sales” of Properties to be Disposed of is calculated by deducting the estimated book value on the scheduled disposal date and transaction costs from theanticipated disposal price of each Property to be Disposed of.
p. 18(Note 1) The New REIT does not have a specific plan to acquire the properties mentioned on this slide as of the date of this material, and there is no guarantee that it can acquirethem in the future.
(Note 2) “Kenedix Group” refers to a company group consisted of Kenedix, Inc., a parent company of Kenedix Real Estate Fund Management, Inc., and its subsidiaries andaffiliates, etc.
(Note 3) The completion dates of iias Kasugai (1) and (2) refer to the date of the main building and that of the existing parking structure, respectively.
p. 19(Note 1) “Assumed increase in NOI” of Unicus Ina is based on NOI that is expected to increase driven by construction of a new building for restaurant, and the increase rate is
calculated by dividing NOI with estimated increase included by NOI based on the budgeted NOI without estimated increase considered.
(Note 2) The percentage of the increase for average unit price of contract rent of KDX Residence Akihabara II is calculated based on the unit rent prices of which is calculated as
the total of monthly rent divided by the total leased floor area as of Apr. 30, 2023 and as the total of monthly rent divided by the total leased floor area as of Jan. 31,
2022.

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Notesp. 19 (Continued)(Note 3) The percentage of the increase for average unit price of contract rent of River City 21 East Towers II is calculated, for the units renovated as of May 17, 2023, based on
the unit rent prices of which is calculated as the total of monthly rent before the completion of the renovation divided by the total leased floor area and as the total ofmonthly rent after the completion of the renovation divided by the total leased floor area.
p. 20(Note 1) “LTV (total assets basis)” is calculated by dividing the balance of interest-bearing debt as of the end of the latest fiscal period and after the Merger and the Asset
Reshuffling by the total assets as of the end of the latest fiscal period and after the Merger and the Asset Reshuffling, respectively. Appraisal LTV is calculated by dividing
the balance of interest-bearing debt after the Merger and the Asset Reshuffling by the total of the total assets and unrealized gain/loss on the assets in the portfolio after
the Merger and the Asset Reshuffling. Please refer to Note 2 for p.5 and Note 3 for p.7, respectively, for how to calculate the total assets and unrealized gain of the New
REIT.
(Note 2) “AUM and Credit Ratings of J-REIT” is the comparison of the AUM (as of Apr. 30, 2023) and credit ratings (as of May 31, 2023). Credit ratings are long-term issuer ratings
granted by JCR, and J-REITs that have no credit ratings granted by JCR are not included in this chart.
p. 21(Note 1) Figures in “Financial Highlights” are represented by estimates after the Merger and Asset Reshuffling, based on financial information of each of the 3 REITs as of Apr. 30,
2023.
(Note 2) “Average Remaining Period to Maturity” is calculated as weighted averages of the number of years from Apr. 30, 2023 to the repayment or redemption date for each loan
and each investment corporation bond, based on the amount of loan and the outstanding balance of the investment corporation bond.
(Note 3) “Fixed Interest Rate Debt Ratio” refers to the total amount of borrowings and investment corporation bonds that were substantially fixed by fixed interest rates or interest
rate swaps among borrowings and investment corporation bonds as of Apr. 30, 2023 divided by the total amount of borrowings and investment corporation bonds as ofApr. 30, 2023.
(Note 4) “Borrowings” in “Maturity Ladder” indicates the total amounts of long-term borrowings and short-term borrowings.
(Note 5) “Total Debt Balance” is the total balance of interest-bearing debt of each of the 3 REITs as of Apr. 30, 2023.
(Note 6) “Green Finance” indicates the total of the balances of green loans and green bonds, while “Social Finance” the total of the balances of social loans and social bonds.
p. 23-24(Note)

Please refer to the press release “Notice Concerning Operating Results and Distributions Forecasts for the Fiscal Period Ending Apr. 30, 2024, Following the Merger of
Kenedix Office Investment Corporation, Kenedix Residential NEXT Investment Corporation and Kenedix Retail REIT Corporation” announced by KDO, KDR and KRR asof June 13, 2023, for the assumptions for earnings forecast.

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Notesp. 27-28(Note 1) “Appraisal NOI” of River City 21 East Towers II and remm roppongi building indicate those of quasi co-ownership interest to be acquired by the New REIT (River City 21
East Towers II: 25% quasi co-ownership interest, remm roppongi building: 20% quasi co-ownership interest).
(Note 2) “Appraisal NOI” means net operating income based on the direct capitalization method in the appraisal report as of the appraisal date on May 1, 2023, and “Appraisal NOI
yield” of each Property to be Acquired is calculated according to the following formula:
Appraisal NOI Yield = Appraisal NOI of each Property to be Acquired as on the appraisal report ÷ Anticipated acquisition price of each Property to be Acquired(Note 3) “Completion”, “Gross Land Area” and “Gross Floor Area” of the properties are based on specifications on the respective registers. The same shall apply hereinafter.
p. 30(Note)“5 Central wards of Tokyo” refers to Chiyoda ward, Chuo ward, Minato ward, Shinjuku ward and Shibuya ward; “8 Central wards of Tokyo” refers to Chiyoda ward, Chuo
ward, Minato ward, Shinjuku ward, Shibuya ward, Meguro ward, Setagaya ward and Shinagawa ward; “Tokyo Metropolitan Area” refers to Tokyo, Kanagawa, Saitama
and Chiba Prefectures; “Other Tokyo Metropolitan Area” refers to Tokyo Metropolitan Area other than “Tokyo 23 wards” or “5 Central wards of Tokyo”; “Other Regional
Areas” refer to regional urban areas such as ordinance-designated cities; “Four Major Metropolitan Areas” refer to Tokyo Metropolitan Area, Greater Osaka Area, Greater
Nagoya Area and Fukuoka Area; “Greater Osaka Area” refers to Osaka, Kyoto, Hyogo, Nara and Shiga Prefectures; “Greater Nagoya Area” refers to Aichi, Gifu and Mie
Prefectures; and “Fukuoka Area” refers to Fukuoka Prefecture.

p. 32(Note)KDO will submit a proposal for the changes of the articles of incorporation to the KDO’s General Meeting of Unitholders scheduled on Aug. 22, 2023 in order to introduce
a new asset management fee structure subject to the condition that the Merger takes effect. The content of the new asset management fee structure is an assumption asof the date of this material and is subject to change in the future.

p. 34(Note 1) Indicating data of the 3 REITs as of Apr. 30, 2023.
(Note 2) KRR will, in association with the Merger, submit a proposal to change its fiscal period to the General Meeting of Unitholders scheduled on Aug. 21, 2023. For details,
please refer to Note 2 for p.6.
p. 36
(Note)KDO implemented a 2-to-1 split of the investment unit with an effective date of Nov. 1, 2022. The actual DPU from the fiscal period ended Oct. 31, 2005 to the fiscal
period ended Oct. 31, 2022 are indicated in the chart and reflects such unit split.

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Disclaimer

Notes regarding this document
 This document is intended to provide information on the absorption-type merger with Kenedix Office Investment Corporation(“KDO”) as the surviving corporation, Kenedix Residential Next Investment Corporation (“KDR”) and Kenedix Retail REIT
Corporation (“KRR”; KDO, KDR and KRR are referred to collectively as the “REITs”) as the dissolving corporations. It is notintended to solicit or recommend investment in or encourage the purchase of any particular product. You may incur losses
related to fluctuations in the prices of the REITs' investment units as a result of any fluctuations in the trading market,
interest rates, real estate market, and other factors, or a decrease in rental income relating to the real property underlying
the investment units. When making any investment decision with respect of the REITs' investment units, investors must
make their investment decisions based on their own determinations and assume full responsibility for their own investment
decisions.
 This document is not a disclosure statement or operational report pursuant to the Financial Instruments and Exchange Act,
the Act on Investment Trusts and Investment Corporations, or the securities Listing Regulations of the Tokyo Stock
Exchange.
 The information provided in this document is based on information available to REITs and Kenedix Real Estate FundManagement (“Asset Management Company”) as of the date hereof. REITs and Asset Management Company do notguarantee the accuracy, completeness, certainty, validity or fairness of such information. Moreover, the information
contained in this document is subject to revision without prior notice.
 This document includes forward-looking statements which are based on certain preconditions and assumptions based on
the information available as of the date hereof. These statements are affected by changes in the preconditions or otherfactors that may occur in the future and do not guarantee future financial performance, business results, financial conditions,etc.
 The information contained herein may not be reproduced, circulated, quoted or otherwise used without the prior consent of
the REITs.
 This document was prepared solely for the convenience of, and reference by, non-Japanese persons. The REITs give nowarranties as to its accuracy or completeness.

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Memo