Translation of Japanese Original
June 13, 2023
To All Concerned Parties
REIT Issuer:
Kenedix Residential Next Investment Corporation
Representative: Tetsu Kawashima, Executive Director(Securities Code Number: 3278)
Asset Management Company:
Kenedix Real Estate Fund Management, Inc.
Representative: Hikaru Teramoto, President & CEO
Contact: Michiru Nagamata, Head of Strategic Planning,
Residential REIT Department
TEL: +81-3-5157-6011

Notice Concerning Forecasts for Operating Results for the Fiscal Period Ending October 31, 2023
(from August 1, 2023 to October 31, 2023) and Payment Upon the Merger
As announced in the press release “Notice Concerning Execution of the Merger Agreement by and among Kenedix
Office Investment Corporation, Kenedix Residential Next Investment Corporation and Kenedix Retail REIT
Corporation” dated today, Kenedix Residential Next Investment Corporation (“KDR”) has passed a resolution at theBoards of Directors Meeting held today to execute an absorption-type merger (the “Merger”) with an effective dateof November 1, 2023, whereby Kenedix Office Investment Corporation (“KDO”) is the surviving corporation andKDR and Kenedix Retail REIT Corporation (“KRR”) are the dissolving corporation, and concluded a mergeragreement (the “Merger Agreement”) as of today. In the case where the Merger comes into effect, KDR’s final fiscal
period is scheduled to be the three-month period from August 1, 2023, to October 31, 2023 (the “Fiscal Period EndingOctober 31, 2023”).
Though KDR announced the operating forecasts for the fiscal period ending January 31, 2024 (from August 1, 2023to January 31, 2024) in its “FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED JANUARY 31, 2023 (REIT)”
dated March 15, 2023, given the conclusion of the Merger Agreement, KDR hereby announces the following details
concerning its operating forecasts for the Fiscal Period Ending October 31, 2023, and forecast for Payment Upon theMerger in lieu of cash distributions to the unitholders of KDR for KDR’s final fiscal period if the Merger isimplemented. There are no changes to the operating forecasts for the Fiscal Period ending July 31, 2023.
1.

Forecasts for Operating Results for the Fiscal Period Ending October 31, 2023 (from August 1, 2023 to October 31,2023) and Payment upon the Merger

Fiscal Period EndingOctober 31, 2023
(3 months)

Operatingrevenue

OperatingincomeOrdinary
income(millions ofyen)(millions ofyen)(millions ofyen)

4,975

2,446

2,083

Net income(millions ofyen)

2,083

Payment uponthe Merger perunit (yen)2,070[Reference] For the Fiscal Period Ending October 31, 2023: Estimated net income per unit (Estimated Net Income in the Period /Estimated average number of units in the Period) 1,946 yen
Payment Upon the Merger per unit differs from the net income per unit since, in the Fiscal Period Ending October 31,
2023, it is assumed that net income plus the reversal amount of the reserve for temporary difference adjustment and apart of the retained earnings brought forward from the previous period will be distributed.
(Note 1) The period covered by the forecasts of Operating Results for the fiscal period Ending October 31, 2023 and Payment Upon
the Merger is the three-month period from August 1, 2023 to October 31, 2023.
(Note 2) Distributions per unit are calculated based on the number of investment units issued and outstanding totaled 1,070,433 asof today.
(Note 3) The above forecast figures are the estimated figures as of today calculated based on certain assumptions described in theattachment “Assumptions for the Forecasts for Operating Results for the Fiscal Period Ending October 31, 2023 (from1August 1, 2023 to October 31, 2023) and Payment Upon the Merger” found at the end of this document. The actual
operating revenue, operating income, ordinary income, net income, and Payment Upon the Merger per unit may vary due
to future acquisitions or sales of the properties, changes in the real estate market, and other factors or the issuance of new
investment units. In addition, the forecast should not be construed as a guarantee of the amount of the Payment Upon theMerger.
(Note 4) After the Merger, in lieu of cash distributions (distribution of profit) to the unitholders of KDR for KDR’s final fiscal
period from August 1, 2023 to October 31, 2023, the surviving corporation, KDO (the trade name will be changed toKDX Realty Investment Corporation upon the Merger. The surviving corporation following the Merger is hereinafterreferred to as “New REIT”), will, within a reasonable period after the effective date of the Merger, make a Payment Upon
the Merger based on the distributable amount of KDR to the unitholders of KDR (the unitholders listed or recorded on
the final unitholders register of KDR as of the day immediately prior to the effective date of the Merger (excluding KDO,KDR, KRR and the unitholders of KDR who have demanded the purchase of their investment units pursuant to theprovisions of Article 149-3 of the Act on Investment Trusts and Investment Corporations (hereinafter the “AllottedUnitholders”))), in an amount equivalent to the cash distributions for the above mentioned fiscal period (the payment willbe the amount of distributable profit of KDR as of the day immediately prior to the effective date of the Merger divided
by the number of investment units that is obtained by deducting (a) the number of investment units held by the unitholders
other than the Allotted Unitholders of KDR from (b) the total number of investment units issued and outstanding of KDR,
as of the day immediately prior to the effective date of the Merger (rounded down to the nearest yen).) As such, theamount of Payment Upon the Merger will vary depending on the status of the exercise of rights to demand purchase ofinvestment units. Because the status of such exercise cannot be confirmed at present, the above forecast figures assume
that the right to demand purchase of investment units is not exercised.
(Note 5) The above forecasts may be revised if there is expected to be a noticeable discrepancy with the above forecasts.
(Note 6) Amounts are rounded down to the nearest whole number.

[Reference] Previous Forecasts for the fiscal period ending January 31, 2024 announced in the “FINANCIALREPORT FOR THE FISCAL PERIOD ENDED JANUARY 31, 2023 (REIT)” dated March 15, 2023
Distributions perOperatingOperatingOrdinaryNetunit (excluding Distributions inrevenue
incomeincomeincomedistributions in excess of earnings(millions(millions(millions(millions
excess ofper unitof yen)of yen)of yen)of yen)earnings)
(yen)
(yen)
PreviousForecast(fiscal period
9,948
4,952
4,234
4,233
4,140
ending January
31, 2024)2.

Reasons for Announcement
KDR announced the operating forecasts for the fiscal period ending January 31, 2024 (from August 1, 2023 to January
31, 2024) in the “FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED JANUARY 31, 2023 (REIT)” dated
March 15, 2023. However, in connection with the execution of the Merger Agreement, in the case where the Merger
comes into effect, the three-month period from August 1, 2023 to October 31, 2023 is scheduled to be KDR’s final
fiscal period. As such, this notice provides the operating forecasts for the Fiscal Period Ending October 31, 2023 (fromAugust 1, 2023 to October 31, 2023), which will be KDR’s final fiscal period, as well as the forecast for Payment
Upon the Merger in lieu of cash distributions for KDR’s final fiscal period.
As for the forecasts for operating results and distributions per unit of New REIT, as the surviving corporation after themerger, please refer to the press release “Notice Concerning Operating Results and Distributions Forecasts for theFiscal Period Ending April 30, 2024, Following the Merger of Kenedix Office Investment Corporation, Kenedix
Residential Next Investment Corporation and Kenedix Retail REIT Corporation” dated today by KDO, KDR andKRR.

*Website URL of KDR: https://www.kdr-reit.com/en/2

[Provisional Translation Only]
English translation of the original Japanese document 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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ATTACHMENT
Assumptions for the Forecasts for Operating Results for the Fiscal Period Ending October 31, 2023
(from August 1, 2023 to October 31, 2023) and Payment Upon the Merger
Item
Calculation period
Asset undermanagement


Operating revenuesOperating expenses

Non-operating expenses
Interest-bearing debt
Total number ofinvestment units issuedand outstanding

Assumptions
Fiscal Period Ending October 31, 2023 (from August 1, 2023 to October 31, 2023) (92days)*Assuming that the Merger will become effective on November1, 2023.
It is assumed that the 182 real estate and trust beneficiary interests in real estate held
as of today will be held and portfolio assets are not subject to change (such asacquisition of new properties, disposition of existing properties, etc.). However, theactual property portfolio may change due to acquisition of new properties, sale ofexisting properties, etc.
Operating revenues are based on the leasing agreements currently in place ortermination, etc. for the assets held by KDR, taking into account recent market trends,
property competitiveness, and other factors. The average occupancy rate for residential
properties is expected to be 96.5% in the Fiscal Period Ending October 31, 2023. The
average occupancy rate for healthcare facilities and accommodation facilities isexpected to be 100.0% for the fiscal period.
Forecasts are based on the assumption that there will be no rent in arrears or nonpayments by tenants.
Property-related operating expenses other than depreciation are calculated based on
information on assets owned by KDR and reflect factors that may cause expenses tofluctuate, including seasonal factors.
Depreciation is calculated by the straight-line method, etc., and is assumed to be 886
million yen for the Fiscal Period Ending October 31, 2023.
Property-related taxes are assumed to be 304 million yen for the Fiscal Period Ending
October 31, 2023.
With regard to repair expenses for each property, the amount expected to be required
is recorded as expenses based on the repair plan of Kenedix Real Estate FundManagement, Inc., the asset management company of KDR assumes. However, repair
expenses may differ significantly from the forecasted amounts due to the possibility
that additional repair expenses would be incurred due to unforeseeable factors.
One-time cost relevant to the Merger is assumed to be 65 million yen.
KDR plans to amend its articles of incorporation with respect to the current calculation
method of Asset Management Fee II, which is based on the assumption that the fiscal
period is six months, as the last fiscal period prior to the effective date of the Merger
will be less than six months, and assumes that the amendment to its articles ofincorporation will be approved at the general meeting of unitholders.
Amortization of costs relating to the issuance and offering of new investment units areassumed to be 9 million yen for the Fiscal Period Ending October 31, 2023 (It is
assumed that the costs relating to the issuance and offering of new investment units
will be amortized over thirty six months using the straight-line method.).
Interest expenses and other debt-related expenses are assumed to be 351 million yen
in the Fiscal Period Ending October 31, 2023.
The balance of KDR's interest-bearing debt as of today is 165,920 million yen,consisting of borrowings of 158,220 million yen and investment corporation bonds of
7,700 million yen. The balance of KDR's interest-bearing debt is assumed to be
165,920 million yen at the end of the Fiscal Period Ending October 31, 2023.
The total number of investment units issued and outstanding as of today is 1,070,433
units, and it is assumed that there will be no issuance of new investment units, etc.,
through to the end of the Fiscal Period Ending October 31, 2023.

4Item

Payment Upon the perunitOther

Assumptions
Payment Upon the Merger (Payment Upon the Merger per unit) will be paid in lieu ofcash distributions for the final fiscal period, the Fiscal Period Ending October 31, 2023,
and is calculated in accordance with the cash distribution policy set forth in the articles
of incorporation of KDR.
Payment Upon the Merger per unit may vary due to various factors, including the statusof exercise of rights to demand purchase as a result of the Merger, change in asset
under management, fluctuation in real estate rent revenue accompanying change intenants, etc., or the incurrence of unexpected repairs.
It is assumed that there will be no revision to the laws and regulations, tax systems,
accounting standards, listing regulations, rules of The Investment Trusts Association,
Japan, etc., that will impact the above forecast figures.
It is assumed that there will be no unforeseen serious change in general economic
trends and real estate market conditions, etc.

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