KDX不動産投資法人
2023年10月期（第37期）決算説明資料
2023年12月14日

0Table of Contents

1

Executive Summary

03

2

Financial Results and Forecasts

06

3

External Growth and Asset Reshuffling

11

4Internal Growth15

5

Financial Strategies

28

6

Sustainability Initiatives

31

7

Appendix34

1

Disclaimer

The contents in this document are provided solely for informational purposes and not intended for the purpose of soliciting investmentin, or as a recommendation to purchase or sell, any specific products.
This document contains charts/diagrams/tables/data and others Kenedix Real Estate Fund Management (“KFM”) created based ondata, indices, etc. published by third parties, in addition to the information related to KDX Realty Investment Corporation (“KDXR”).
This document also contains the current analyses/judgments/other opinions of KFM.
KFM is a financial instruments business operator under the Financial Instruments and Exchange Act.
The information provided herein is unaudited and hence no assurance or warranties are given with respect to the accuracy orcompleteness thereof. Also, please be aware that the analyses/judgments/other opinions provided by KFM may change or cease toexist without prior notice of any kind as they are based on current assumptions and beliefs of KFM.
Neither KDXR nor KFM shall be liable for any errors/inaccuracies of the data/indices/other information published by third parties(including the data based on the appraisal report).
This document also contains forward-looking statements and anticipation of future results for KDXR. However, no guarantees are
given with respect to the accuracy of these statements/anticipation.
The figures are shown for the fiscal period of Kenedix Residential Next Investment Corporation (Jan. and Jul.) and Kenedix Retail
REIT Corporation (Mar. and Sep.), in which the respective assets were managed.

Revised editions of this document will be posted on our website (https://www.kdx-reit.com/eng/) should there be major corrections
going forward.

2

1. Executive Summary

Okinawa Prince Hotel Ocean View Ginowan 3

Executive Summary (for the Fiscal Period Ended Apr. 2024)
External Growth and Asset Reshuffling✓ Steadily implemented the growth strategy set forth at the time of the merger:
Acquisition Price /Disposition Price /expand asset types and reshuffle assets in response to environmental changes Avg. Appraisal NOI Yield (1) Avg. Appraisal NOI Yield (1)✓ Secured gains on sales, improved portfolio yields and raised DPU by acquiring
bn yen%bn yen%mainly hotels and residential properties and disposing of office buildings at an
early stage after the merger(7 properties)(3 properties)

45.2

/ 4.5

11.0

/ 4.4

Internal Growth✓ Utilized the Kenedix Group’s high capabilities to maintain high occupancy andincreased rents in office, residential and retail assets

Avg. Fiscal Period
Occupancy Rate

Increasein Monthly Rent

✓ Continued to actively raise rents in the three main sectors while acquiring assets
with variable rents and switching to CPI/interest variable contracts to strengthen
the portfolio’s ability to enhance inflation resilience

98.8%

12.0 mn yen(vs previous FP: +0.1%)(vs previous FP: +4.2 mn yen)

Long-term Debt Ratio

Fixed Interest Rate
Debt Ratio

Financial Strategy and Capital Policy✓ In anticipation of rising interest rates, KDXR has moved towards long fixed rateborrowings. Although the average debt cost has risen, the increase has been
contained by improved credit quality through the merger✓ Pursued unitholder value enhancement by unit buyback, taking into account thecurrent unit price, NAV discount and market environment

98.4%

91.0%

(vs effective date of
the merger: +0.5%)(vs effective date of
the merger: +0.6%)

Properties withEnvironmental
Certifications

Properties with Renewable
Energy-derived Electricity
Plans

Sustainability✓ Achieved the target environmental certification acquisition rate of 60% byactively acquiring certifications mainly for residential properties✓ Promoted switching to electricity plans derived from renewable energy
sources to reduce GHG emissions

64.5%

84 properties(% of progress during
this FP: +5.6%)(No. of progress during
this FP: +11 properties)

Note 1: Calculated by dividing the appraisal NOI by the (anticipated) acquisition price for acquisition and by the (anticipated) disposition price for disposition, respectively. The disposition of silent
partnership equity interest backed by Shinjuku Sanei Building is not included in the calculations.

4Unit Buyback
KDXR implemented unit buyback flexibly in a view of the significantly undervalued unit priceTotal acquisition amount was the largest in J-REIT history
All units were cancelled during Apr. 2024 FP, which contributed to DPU increase
Total Amount of Units
Acquired
Approx.

10 bn yen

% of the Total Number ofIssued Units

Apr. 2024 Fiscal Period
DPU Impact

1.5%+61yen / +1.6%(yen)

180,000
Unit price of KDXR
本投資法人の投資口価格

TSE
REIT Index
東証REIT指数

Unit Buyback(Mar. 25 - Apr. 19)

170,000
Outperformed the TSE REIT Index
Mar. 22, 2024
Announcement of
Unit Buyback
160,000

150,000

140,000
Mar. 8, 2024
141,700 yen（YTD low）
130,000
2023/11/01

2023/12/01

2024/01/01

2024/02/01

2024/03/01

2024/04/01

2024/05/01

2024/05/31

Note: TSE REIT Index is calculated by multiplying the REIT unit price (closing price) on the date of the announcement of the acquisition of own units (Mar. 22, 2024) by the daily return of the TSE REIT
Index during the period covered by the index on that date.

52. Financial Results and Forecasts

Okinawa Prince Hotel Ocean View Ginowan 6

Results for the Fiscal Period Ended Apr. 2024
(Millions of Yen)

Operating revenue
Rent revenue –real estate
Gain on sale of real estate property

Gain on sale of securities
Dividend income

Operating expense
Expenses related to rent business(ex. depreciation)
Depreciation
General and administrative expenses

Operating income
Non-operating income
Non-operating expense(Interest expenses, etc.)

Ordinary income
Extraordinary income (Gain on negative goodwill)

Net income
Net income (ex. extraordinary income)NOI
NOI after depreciation
Utilities revenue
Utilities expense
Provision (+) / reversal (-) of reserve for reduction entry (1)Total distributions

DPU (yen)
EPU (yen) (2)NAV per Unit (yen)# of total units outstanding (unit)

Apr. 2024
Apr. 2024
Forecast
ActualAB
38,23238,65436,171
36,596
1,505
1,494
548
548
6
15
21,483
21,307

Actual vs
Forecast
B-A
422
424
-11
0
9
-175

10,295
4,683
6,504
16,748
0
2,225
2,218
14,523
17,271
31,794
14,52225,876
21,192

9,945
4,851
6,511
17,346
0
2,297
2,283
15,04917,33832,387
15,04826,65021,799

-350
167
7
598
0
71
64
526
67
593
526
774
607

2,049
2,325

1,938
2,157

-110
-168

16,05015,7433,800
3,505
180,000
4,142,897

16,36816,0193,927
3,689
182,000
4,079,309

318
276
127
184
2,000
-63,588

Apr. 2024 FP Actual vs
Apr. 2024 FP Forecast
Operating revenue

422

Rent revenues

346

Utilities revenue-110

Other lease businessrevenue

171

Operating expense-175

Utilities expense-168

Repair/ maintenance

-118

Taxes

31

Other expenses
related to rent business-92

Depreciation

167

Acquisition of 4 properties (Okinawa
Prince Hotel Ocean View Ginowan, etc.)

250

Existing properties

96

Office: Decrease in revenue due tomove-outs, etc.

-4

Residential: Increase in revenue due tooccupancy rates above assumptions

71

Retail: Variable rent increases, etc.

28

Cancellation penalty income(KDX Musashi-Kosugi Bldg.)

39

Hall operating revenue(Senri Life Science Center Bldg.)

21

Reduction of expected cost
(KDX Nihonbashi 313 Bldg.)-100(Reference) Construction costs for the entire portfolio in Apr. 2024 FP
Depreciation: 4,815 mn yen, Capital expenditure: 2,843 mn yen,Repair / Maintenance: 918 mn yen

Note 1: Retained earnings include provision and reversal of reserve for reduction entry in addition to the RTA and profit carried forward. For more information on RTA, please refer to page 9.
Note 2: Calculated by dividing net income (excl. extraordinary income) by number of total units outstanding.

7Forecasts for the Fiscal Periods Ending Oct. 2024 and Apr. 2025
(Millions of Yen)

Operating revenue
Rent revenue –real estate
Gain on sale of real estate property
Gain on sale of securities
Dividend income

Operating expense
Expenses related to rent business (ex. depreciation)
Depreciation
General and administrative expenses

Operating income
Non-operating income
Non-operating expense(Interest expenses, etc.)

Ordinary income
Extraordinary income (Gain on negative goodwill)

Net income
Net income (ex. extraordinary income)NOI
NOI after depreciation
Utilities revenue
Utilities expense
Provision (+) / reversal (-) of reserve for reduction
entry (1)Total distributions

DPU (yen)
EPU (yen) (2)# of total units outstanding (unit)

Apr. 2024

Oct. 2024

Apr. 2025

ActualForecast

Forecast

Apr. 2024 Oct. 2024
Actual vs Forecast vsOct. 2024 Apr. 2025
Forecast
Forecast
B-A
C-B
-53
-1,513
695
-203
-185
-1,309-548-15-1,726
-229
780
-283
180
88
-2,687-35
1,673-1,283
0
147
-13
156
-12
1,525
-1,270-17,338-15,813-1,270
1,525-1,270A
38,65436,5961,494
548
15
21,307
9,945
4,851
6,511
17,346
0
2,297
2,283
15,04917,33832,387
15,048B
38,60137,291
1,309
19,581
10,725
5,031
3,823
19,020
0
2,445
2,439
16,574
16,574
16,574

C
37,08737,087
19,351
10,442
5,120
3,788
17,736
0
2,432
2,427
15,30415,303
15,30326,65021,79926,566
21,534

26,645
21,524

-84
-265

79
-9

1,938
2,157

2,482
2,667

2,123
2,355

543
509

-359
-311

16,36816,0193,927
3,689
4,079,309

563
15,786
3,924
4,063
4,079,309-745
16,0493,934
3,752
4,079,309-15,805
-232
-3
374
-

-1,309
262
10
-311
-

Note 1: The figures includes RTA and provision/reversal of reserve for reduction entry. For more information on RTA and profit carriedforward. For more information on RTA, please refer to page 9.
Note 2: Calculated by dividing net income (excl. extraordinary income) by number of total units outstanding.

Apr. 2024 FP Actual vsOct. 2024 FP Forecast
Operating revenue-53

Rental revenues

337

Utilities revenue
Other leasebusiness revenue
Gain on sale
Gain on sale (securities)
Operating expense
Utilities expense
Taxes
AM fees
Other operating
expenses
Merger fee

Acquisition of properties
in Apr. 2024 FP
Acquisition of properties
in Oct. 2024 FP
Decrease in revenue due to
Disposition of KDX Nihonbashi 313
Bldg.
Existing properties

446
355
-114
-350

543
-191

Decease of cancellation penalty(KDX Musashi-Kosugi Bldg.)-185 Decrease from prev. FP-548 Decrease from prev. FP-1,726509
118
579
Decrease of merger-related-398
expense-2,900 Absence of cost related to merger

-39

-410

Oct. 2024 FP Forecast vsApr. 2025 FP Forecast
Operating revenue
Rental revenues

Utilities revenue
Other leasebusiness revenue
Gain on sale
Operating expense
Utilities expense
Repair/ maintenancePM fees
AM fees
Other operating
expenses-1,53594

Acquisition of properties
in Apr. 2024 FP
Acquisition of properties
in Oct. 2024 FP
Decrease in revenue due todisposition of KDX Nihonbashi 313
Bldg.
Existing properties

-81

199
-49
25

-359
Key money / Renewal fees
(residential)-1,309 No gain on sale
-479
-311
-23
20
-206
61

57

-52

(Reference) Construction budget for the entire portfolio in Oct. 2024 FP
Depreciation: 5,031 mn yen, Capital expenditure: 3,388 mn yen,
8
Repair / Maintenance: 926 mn yen

DPU Management
Managing DPU stability with abundant reserve for reduction entry
Gain on Negative Goodwill due to the Merger
AssumedLiabilities(market value)334.0 bn yen
Assets Received
Merger(market value)
Consideration
736.9 bn yen
385.4 bn yen
Negative Goodwill
17.3 bn yen

Impact on
BS

Impact on
DPU

Balance of Reserve for Reduction Entry✓

Flexibly utilize the reserves derived from gains on sale

RTA
End of Oct. 2024 FP(assumed)

14.5 bn yen(3,576 yen / unit)

4.9 bn yen
Earnings Surplus(1,215 yen / unit)

2.8 bn yen(705 yen / unit)• Allocate 2.8 bn yen from the gain on negative
goodwill for earnings surplus. Reserve theremaining amount as reserve for temporary
difference adjustment (RTA) on net assets• Allocate at least 1% of RTA for DPU each FP• Utilize RTA flexibly as source of distributions
added to net income

DPU Management Policy✓

Set DPU floor target at 3,800 yen by utilizing the reversal of thereserve for reduction entry and gains on sale✓

Total of 600 mn yen every FP will be distributed going forward,
backed by the reversal of reserves for reduction entry assumedin Oct. 2024 FP✓

If EPU increases due to factors other than gains on sale, DPU
will be increased by the same amount✓

When the stabilized EPU exceeds above 3,800, the amount ofreversal of the reserve for reduction entry will be reconsidered,taking into account the market environment and the DPU level9Actual and Forecast DPU
External/internal growth and the unit buyback boosted EPU by 5.2% (vs forecast) in Apr. 2024 FP
EPU growth is expected in the following periods, aiming to achieve the target DPU as soon as
possible
EPU (Earnings Per Unit)

Factors Impacting DPU

Factors Impacting DPU

Factors Impacting DPU••

External Growth (+201 yen)
10 props. acquired for 50.5 bn yen
since Jan. 2024•

External Growth (+7 yen)
10 props. acquired for 50.5 bn yen
since Jan. 2024•

Increase in debt cost due to the newborrowings for the above acquisitions(-59 yen)•

NOI decrease by disposition of KDX
Nihonbashi 313 Bldg. (-5 yen)•

Unit buyback (+61 yen)•

Maintain DPU floor
target of 3,800 yen
by reversal ofreserve for
reduction entry

Reversal of Reserve for Reduction Entry
内部留保取崩•External Growth (+41 yen)
4 props. acquired for 30.1 bn yen
since Jan. 2024
Internal Growth (+23 yen)
Increase in revenue above
assumptions of residential
Office-1 yenResidential +17 yen
Retail+7 yenUnit buyback (+61 yen)

4,000 yen

3,927 yen

238円
238
yen

3,800 yen

3,934 yen

3,924 yen

182
yen
182円

3,800 yen

+10 yen（+0.3%）

182
yen
182円

+127 yen（+3.5%）+184 yen（+5.2%）

185
yen
185円

295
yen
295円

3,742 yen
3,742円3,689
yen
3,689円
3,615 yen
3,615円

3,505
yen
3,505円

3,752
yen
3,752円After taking
intoaccount
gain on sale
4,063 yen (1)Apr. 2024 FP
2024年4月期
Forecast
予想(as of Dec. 14, 2023)（2023年12月14日時点）

2024年4月期
Apr. 2024 FP
Actual
実績

Oct. 2024 FP
2024年10月期
Previous
Forecast
予想(as of Dec. 14, 2023)（2023年12月14日時点）

Oct. 2024 FP
2024年10月期
Forecast
今回予想(as of Jun. 18, 2024)

2025年4月期
Apr. 2025 FP
今回予想
Forecast

Note 1: EPU is 4,063 yen after taking into gain on sales of real estate, and such gains on sales are transferred to the reserve for reduction entry, resulting in a DPU of 3,924 yen

巡航DPU目標
TargetStabilized
Level
10

3. External Growth and Asset Reshufflingremm roppongi building 11

Post-Merger Asset Reshuffling
Acquired 12 properties / 65.6 bn yen since Nov. 2023, realizing the post-merger growth strategy
Acquisition
Residential
SponsorRiver City 21 East
Towers II (25% quasi
co-ownership interest)

Apr.
2024
FP

RetailHotelsThird Parties

Sponsor10.6 bn yen

Okinawa Prince Hotel
Ocean View Ginowan

6.1 bn yen

Shunsai deli Akishima
Distribution Center(Land)

remm roppongi bldg.
(20% quasi
co-ownership interest)

KDX Hiroshima Kure
Distribution Center

25.9 bn yen

2.4 bn yen

7 props. / 45.2 bn yen Appraisal NOI Yield 4.5
Third Parties

OfficeHarajuku F.F.
Bldg.

SponsorShinjuku Sanei Bldg.
(silent partnership equity interest 50%)

Asset
Reshuffling% (2)SponsorSponsor+49.1 bn yen
COMBOX Komyoike(Compartmentalized
ownership) (1)Alliance Companies

Oct.
2024
FP

小計
Total
Note 1:
Note 2:
Note 3:Note 4:Shin-Osaka Esaka
Tokyu REI Hotel (1, 3)
Sponsor

KDX Logistics Ebina
Chuoremm roppongi bldg.
(30% quasi
co-ownership interest) (1)3.0 bn yen

11.0 bn yen

3 props. / 11.0 bn yen Appraisal NOI Yield 4.4%

KDX Nihonbashi 313
Bldg.

•
•
•

4.9 bn yen

6 props. / 20.4 bn yen Appraisal NOI Yield 4.4%
12 props. / 65.6 bn yen Appraisal NOI Yield 4.5%(2)

1.3 bn yen(2)

To be disposedof on Jun. 28,
2024

Irise Nerima
Hikarigaoka

To beacquired on
Jul. 1, 2024

Kohnan Shinichi(Land)(4)

KDX Nagoya Sakae
Bldg.

Third Parties

SponsorKDX Residence
Ikebukuro Kanamecho

Healthcare

Sponsor
第三者

Sponsoriias Kasugai(30% quasi-coownership interest) (1)Disposition
Logistics

Completed in 1974 (50 years old)
Decided to dispose of the asset instead ofredevelopment due to concerns aboutdevelopment cost increase
Decided to dispose to the Sponsor as theagreement has been reached of obtaining
preferential negotiation rights after
redevelopment

1 prop. / 7.1 bn yen Appraisal NOI Yield 3.9%
4 props. / 18.1 bn yen Appraisal NOI Yield 4.2%

(2)

(2)

The acquisitions are additional interest. After the acquisitions, the total ownership of iias Kasugai COMBOX Komyoike and Shin-Osaka Esaka Tokyu REI Hotel will be 100%, and remm roppongi building will be 50% quasi co-ownership interest.
Calculated by dividing the appraisal NOI by the (anticipated) acquisition price for acquisition and by the (anticipated) disposition price for disposition, respectively. The disposition of preferred equity securities backed by Shinjuku Sanei Building
is not included in the calculations.
The hotel is the other unit-owned section of compartmentalized ownership property that includes the retail facility "Carino Esaka", property owned by KDXR, and which will become 100% owned after this acquisition. After the acquisition, "Carino
Esaka“ will be included and classified as a hotel. The same shall apply hereafter.
12
remm roppongi building is counted as one property as it was acquired in both Apr. 2024 FP and Oct. 2024 FP.

Portfolio (As of Jul. 1, 2024)
Track Record of AUM Growth (1) and Portfolio Diversification (based on acquisition price)(bn yen)12,000
1,200

900
9,000

1,196.4
11,8191,181.9 11,964

No. of Properties

AUM

Unrealized Gain

355

1,196.4 bn yen

126.2 bn yen(No. 1 among J-REIT)(No. 3 among J-REIT)(Apr. 2024 FP)

600
6,000

3,000
300

69.1
691
0

Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Apr. Jul. 1
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2024

By Asset Types
Hotels 4.1%

By Area

Logistics 2.2%

Healthcare 7.0%
Office 35.9%

Retail 24.0%

Top 10 Properties

Diversified
Portfolio

Residential
26.8%

Regional Areas
33.6%

Tokyo
23 Wards
43.8%

Tokyo
Metropolitan
Area

66.4%
Other Tokyo
Metropolitan Area
22.6%

Top 10 Properties

13.3%
Others 86.7%

Note 1: The figures prior to Oct. 2023 are calculated by simply adding 3 REITs’ AUM at the end of each FP (Oct. for KDO, Jul. for KDR and Sep. for KRR), rounded down to nearest 100 mn yen.

13

Future Policy
Actively dispose of properties and use the proceeds for acquisitions, repayment ofborrowings and unit buyback
Disposition• Consider to dispose of the properties with a risk of future decline in profitability or expansion of
unrealized losses and office buildings with unrealized profits
Effective use of proceeds based on pipeline, interest rates, LTV and unit price levels

Acquisition

Financial Strategy• KDXR has a rich pipeline of retail, hotels and logistics facilities
As of Jul. 1, 2024 (scheduled)

Logistics 2.2%

• Control LTV below
45% and repay
borrowings whenappropriate

Capital Policy• Consider unit
buyback when unit
price is more than
10% discount to NAV

Healthcare 7.0%
Office 35.9%

Residential
26.8%

Retail 24.0%

Hotels as of Nov. 1, 2023 (1) 0.4%

LTV Sensitivity

4.1%

NAV per Unit

(when repay 10 bn yen)

Consider as disposition target
in asset reshuffle forrealization of unrealized gains

Increase ratio
to 5-10%-0.5%

182,000 yen

Aim to increase unitholder value
Note 1: The figure excludes remm roppongi building (20% quasi co-ownership interest) which was acquired on Nov. 1, 2023.

14

4. Internal Growth

KDX Residence Ikebukuro Kanamecho 15

Internal Growth Summary
Composition of Rents by
Asset Type (1)Monthly Rent Revenues by Asset Type (1)Office Buildings

Logistics
Facilities
1.8%
Hotels1.9%

Healthcare
Facilities
7.0%

Office2,242 mn yen
Residential Properties⚫

1,206 mn yen
Retail Facilities

RetailFacilities
25.9%

Monthly rent for existing tenants increased as a result of
persistent rent negotiations⚫ Continued policy of steadily increasing rents, particularly inproperties with rent gaps⚫

⚫

Residential

Total
Monthly Rent
5,444 mn yen

OfficeBuildings
41.2%

Retail

1,411 mn yen
HotelsResidential
Properties
22.2%

Hotel

102 mn yen
Logistics Facilities

Logistics

99 mn yen

Key Drivers forInternal Growth

Family types are robust with soaring condominium prices
Continued internal growth can be expected in the future byincreasing rents for new leases and by actively negotiating rent
increases for rent renewals

Internal growth can be expected through sales increases andrent change at the time of new leases and rent renewals⚫ Pursue upside by introducing sales commission contracts andswitching to CPI/interest variable contracts⚫

Both occupancy rate and ADR are rising steadily by capturing
inbound demand⚫ Pursue upside potential through variable rents⚫

⚫
⚫

Stable management with fixed rents
Pursue upside with rent increase at rent renewal andimplementation of CPI/interest linked contracts

Healthcare Facilities⚫

Healthcare

382 mn yen⚫

Stable management with long fixed rents
Increase rent through renovations, installation of LED Lightings

Note1 : For the properties owned as of Apr. 30, 2024, the figures are calculated by the average monthly rent from May 31, 2023 to Apr. 30, 2024.

16

Performance (Office Occupancy Rate)

OfficeAlthough the turnover ratio is expected to increase slightly in Oct. 2024 FP, efforts will be madeto maintain and improve occupancy rates by accurately identifying tenant needs
Occupancy Rate, Area and Number ofMove-ins/outs and Turnover Ratio (1)■ Floor ■拡張移転
expansion ■■縮小移転
Floor reduction■ Others/Unknown■その他/不明稼働率（契約面積ベース）
実質稼働率（FR面積控除後）
Actual occupancy rate (ex. free rent area)
Occupancy
rate (contracted area based)■ Space leased (tsubo)■ Space vacated less than 200 tsubo (tsubo)■ 入居面積 ■ 退去面積200坪未満 ■ 退去面積200坪以上■ . 入居面積－退去面積■■ Space vacated 200 tsubo or moreSpace leased – Spacevacated (tsubo)

98.3

97.6

98.4

97.8

98.2

98.2

97.8

95.4

96.2

95.8

95.6

94.8

93.3

(Numberof movein/out）

（64）
4,790

（53）
5,179

FP Average

98.0%

97.4%

FP Actual average

96.3%

95.0%

（69）
5,044

（52）
4,152

（45）
2,970

1,480

Some move-ins
are expected

138
-979
-3,309（43）

Turnover
ratio

2.3%

-661

-6,158（62）-5,705
（50）

4.1%

3.8%

OUTs

94.7

-4,014（45）-4,156（50）-4,390
（42）

2.7%

2.8%

3.0%

2022年4月期
2023年4月期
2024年4月期
Oct. 2024
Apr. 2022 2022年10月期
Oct. 2022
Apr. 2023 2023年10月期
Oct. 2023
Apr. 2024 2024年10月期
FP
FP
FP
FP
FP
FP
想定
(forecast)

24.4%
(10)

Oct. 2023 FP
2023年10月期

46.3%
(19)

17.9%
(7)

2024年4月期
Apr.
2024 FP

29.3%
(12)

51.3%
(20)

30.8%
(12)

Free Rent Period (months)
2022年4月期
2023年10月期
2024年4月期■ Apr.
2022 FP ■2022年10月期
Oct. 2022 FP ■2023年4月期
Apr. 2023 FP ■Oct. 2023 FP ■Apr. 2024 FP

5.3-1,186

2.4% 14.6%
(6)
(1)

82.9%
(34)

Apr.
2024 FP
2024年4月期

19.6%
(10)

5.9%
(3)

74.5%
(38)

Oct. 2023 FP
2023年10月期

INs

（%）

Reasons for Move-ins/outs

5.7
4.7

5.8
5.2

4.6 4.9
3.9
2.8

5 central wards
都心5区
of Tokyo

3.3

Tokyo Metropolitan area
その他東京経済圏(ex. 5 central wards)

4.2
3.6
3.0

2.6

3.2

地方経済圏
Regional
areas

Note1: Occupancy rate (contracted area based) is calculated by dividing leased area (contract based) by leasable area, and actual occupancy rate (ex. free rent area) is calculated by subtracting
free rent area from leased area then dividing by leasable area. The figures are rounded to the first decimal place. The leased area and number of move-ins/outs are calculated based on thefloor. In case that an end-tenant move-out from/move-in to multiple floors, the number is counted by floor. The turnover ratio is the figure calculated by dividing the total leased area for tenants
who cancelled their lease contracts in each fiscal period by the average of the total leasable area of all office buildings owned by KDXR as of the end of each month and rounded to the firstdecimal place. Turnover ratio for Oct. 2024 FP is the estimate based on the cancellation notice, etc. received by April 30, 2024.

17

Office

Performance (Rent Gap in Office Buildings)

Market rents have bottomed out and the rent gaps are widening again
Aim to increase rents by capturing market trends closely
Change in Market Rent of Owned Properties (2)Change in Monthly Rents at Tenant Replacements
upon Tenant Turnover (1)(mn yen)

5.0
2.6
Total rent
increase

東京経済圏(都心5区除く)
地方経済圏■ 5 central wards of 都心5区
Tokyo ■ Tokyo
Metropolitan area (ex. 5 central
wards) ■ Regional areas

■ Net

6.5
3.8

2.5

1.2
0.0

-0.1

Decline
(8)

4.3

Rise
(2)

(1)
1%

(8)
9%

(1)
1%

(1)
1%

-0.2

Oct. 2023 FP
94

-2.7
-3.8

-3.9

-3.8

-4.4

Apr. 2022 2022年10月期
Oct. 2022 2023年4月期
Apr. 2023 2023年10月期
Oct. 2023 2024年4月期
Apr. 2024% of the number 2022年4月期
FP
FP
FP
FP
FP
of rent increase
contracts upon
54.2%
53.1%
55.0%
52.9%
48.7%
tenant turnoverHigher thanmarketrent level

Lower thanmarketrent level

Lower than -10%
350 mn yen

(41)
44%

(23)
25%

Flat
(80)

Historical Average Rent Gap (4)19.5 21.0(%)

Between 0
and 10%603 mn yen

558 mn yen

(4)
4%
(4)
4%

Flat
(84)

14.4
10.3

Between -10%
and 0%(4)
4%

Apr. 2024 FP
93

(39)
41%

(26)
28%

Breakdown of Rent Gap (based on monthly rent) (3)Over 10%331 mn yen

Ries
(12)

(16)
17%

(19)
20%

Total rent
decrease

Decline
(1)

7.1
4.2
-0.6 -2.1

-2.2

-4.2

-6.6

-10.7
Lower thanMarket rent level
49.3%（+2.2% vsprevious period)

2007年

Oct. 2007
FP
10月期

2009年

Oct. 2009
FP
10月期

2011年

Oct. 2011
FP
10月期

2013年

Oct. 2013
FP
10月期

2015年

Oct. 2015
FP
10月期

2017年

Oct. 2017FP
10月期-8.9 -8.7

2019年

Oct. 2019
FP
10月期

-5.9

2021年

-3.2 -2.6 -2.8

Oct. 2021
FP
10月期

2023年

Oct. 2023 Apr. 2024
FP
FP
10月期

End
of Apr. 2024 FP
2024年4月期末
Note 1: The increase/decrease in the monthly rent and unit rent and others are calculated for each occupied floor where the new rent and the previous tenant rent can be compared.
Note 2: Trends in market rents from the previous fiscal period are shown by trend and by region for the office buildings owned as of the end of Apr. 2024 FP.
Note 3: Expected new contract rent (standard floor) for each property estimated by CBRE as of the end of Apr. 2024 FP is deemed the market rent; the gap between the contracted rent for each tenant as of the end of the FP and themarket rent is recognized as a rent gap. No gap is classified into “Between 0 and +10%”.
Note 4: Calculated as the weighted average, based on leasable floor area, of the gap rate between the average contracted rent of the standard floor for the office buildings owned as of the end of each fiscal period and the market rent
for each property estimated by CBRE at the time of assessment.

18

Office

Performance (Rent Revisions in Office Buildings)

Both the number of rent increases and the amount of rent increases increased, driven by regional
properties backed by high occupancy and rent gaps
Rent Revisions (rent area ratio) (1)Rent increase
(37)
13.2%

Rent decrease
(5)
3.5%

Exception for negotiation(Higher than market rent)
(103)
39.5%

Exception for negotiation(Higher than market rent)
(99)
32.2%

Oct. 2023 FP
280

No change(Lower than market rent)
(135)
43.8%

(mn yen)

5.9

6.1
4.9

4.2
3.7

4.0
2.4

Total rent
increase

2.1

65

45
34

38

22

30

12

8

37

54

35
31

1.6

-1.0
-1.9

■ 5 central wards of Tokyo 都心5区
■ Other than都心5区以外
5 central wards of Tokyo

5.8

4.4

-0.4

Total rent
decrease

Subject fornegotiation

Number of Rent Increases and Rent Increase Rate

■ Net

3.4

Apr. 2024 FP
303

No change(Lower than market rent)
(136)
47.9%

Subject fornegotiation

Change in Monthly Rents at Rent Revisionsof Existing Tenants

Rent increase
(65)
18.9%

Rent decrease
(3)
0.9%

-2.1

-2.1

-0.2
Confirmed as of
May 14, 2024

2022年4月期
Apr. 2022

2022年10月期
Oct. 2022

2023年4月期
Apr. 2023

2023年10月期
Oct. 2023

2024年4月期
Apr. 2024

2024年10月期
Oct. 2024

FP

FP

FP

FP

FP

FP
以降
(onward)

10

6

11

Apr. 2022
Oct. 2022
Apr. 2023
Oct. 2023
Apr. 2024
2022年4月期
2022年10月期
2023年4月期
2023年10月期
2024年4月期

FP
Rent increase rate
(incremental avg.) (2) 6.4%

FP

FP

FP

FP

5.8%

5.2%

8.6%

6.9%

Note 1: “Market rent” referred in the graphs is a new contracted rent (standard floor) for each property estimated by CBRE as of the end of each FP.
Note 2: Calculated by dividing the sum of monthly rent increase by the sum of monthly rent before revision (rounded to the first decimal place). The same shall apply hereafter.

19

Residential

Performance (Residential Properties Occupancy Rate)

Rental market remains strong, despite a temporary drop in occupancy rate at the end of FP due toseasonal factors
Occupancy Rate by Area

Avg. Jan. 2023 FP
96.7%

Avg. Jul. 2023 FP
97.1%

Avg. Oct. 2023 FP
96.9%

Avg. Apr. 2024 FP
97.3%

Jan. 2023 FP

Jul. 2023 FP

Oct. 2023 FP

Apr. 2024 FP(%)
100.0%
98.0%
96.0%
94.0%
92.0%
Avg. of FP
Jan.
Jul.
Jan.
Jul.
Jan.
Jul.
Jan.
Jul.
Aug.
2019 FP 2019 FP 2020 FP 2020 FP 2021 FP 2021 FP 2022 FP 2022 FP

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

Total 96.5% 96.4% 96.2% 96.0% 94.1% 95.9% 96.3% 96.3% 96.2% 96.7% 97.0% 96.9% 96.7% 96.9% 97.1% 97.9% 97.2% 96.4% 96.9% 97.2% 96.9% 96.8% 96.9% 96.9% 96.8% 97.1% 97.4% 98.1% 97.2%
Tokyo
97.7% 98.1% 97.8% 97.1% 93.6% 95.9% 96.5% 96.6% 96.6% 97.3% 97.3% 97.3% 97.0% 97.0% 97.3% 98.2% 97.6% 97.0% 97.5% 97.5% 97.4% 97.3% 97.3% 97.5% 97.4% 97.6% 97.7% 97.9% 97.1%
Metropolitan
Regional 95.2% 94.5% 94.5% 94.8% 94.8% 95.8% 96.1% 96.0% 95.5% 96.0% 96.5% 96.2% 96.3% 96.7% 96.7% 97.4% 96.6% 95.6% 96.2% 96.8% 96.2% 96.0% 96.3% 96.0% 95.9% 96.4% 97.1% 98.4% 97.3%

Occupancy Rate by Room Type(%)
100.0%
98.0%

96.0%
94.0%
92.0%

Avg. of FP
Jan.
Jul.
Jan.
Jul.
Jan.
Jul.
Jan.
Jul.
Aug.
2019 FP 2019 FP 2020 FP 2020 FP 2021 FP 2021 FP 2022 FP 2022 FP

Jan. 2023 FP
Sep.

Oct.

Nov.

Jul. 2023 FP
Dec.

Jan.

Feb.

Mar.

Apr.

May

Oct. 2023 FP
Jun.

Jul.

Aug.

Sep.

Oct.

Apr. 2024 FP
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

Studio 97.1% 97.7% 97.3% 96.7% 93.4% 95.3% 94.9% 94.9% 95.2% 96.0% 95.6% 95.9% 95.8% 96.3% 96.4% 98.2% 97.4% 96.6% 96.9% 96.8% 95.9% 95.9% 95.9% 95.9% 95.8% 96.0% 96.1% 97.9% 97.3%
Small Family 95.2% 95.4% 95.6% 94.9% 93.0% 95.2% 95.6% 95.7% 95.0% 95.7% 96.4% 96.3% 95.8% 96.0% 96.4% 97.1% 96.4% 95.7% 95.9% 96.6% 96.5% 96.4% 96.5% 96.6% 96.6% 96.8% 97.4% 97.5% 95.9%
Family 96.1% 95.0% 94.4% 95.1% 93.7% 95.7% 97.3% 96.7% 96.8% 97.4% 97.5% 97.0% 97.0% 96.8% 97.0% 97.3% 96.6% 95.3% 96.6% 97.0% 96.8% 96.4% 96.6% 96.6% 96.4% 97.0% 97.6% 98.1% 97.2%

Note: Occupancy rate by area include those from retail stores and offices. Occupancy rates by room type are calculated based on residential units of pass-through lease contracts (excluding wholesalelease contracts).

20

Residential

Performance (New Leases in Residential Properties)

Achieved rent growth backed by strong demand for properties in the Tokyo Metropolitan Area andfamily type rooms
Rent Change in New Leases (monthly rent basis) (1)Rent Change in New Leases (monthly unit basis) (1)■ Net(mn yen)■賃料上昇
Increase ■賃料据置
Unchanged 賃料下落
■ Decline
4.6

4.4
3.6

27.7%

3.1
3.9

3.5
Total rent
increase

Total rent
decrease

2.3

20.9%

18.6%

51.4%

50.5%

Jul. 2022
2022年7月期
FP

Jan. 2023
2023年1月期
FP

1.8

1.8

19.2%

14.9%

15.8%

19.1%

20.3%

17.7%

61.7%

64.8%

66.4%

Jul. 2023
2023年7月期
FP

Oct. 2023
2023年10月期
FP(3 months)

Apr. 2024
2024年4月期
FP

1.6
-0.2

-0.6

-0.8

-1.3

-1.3

31.0%

Jul. 2022 2023年1月期
Jan. 2023 2023年7月期
Jul. 2023 2023年10月期
Oct. 2023 2024年4月期
Apr. 2024
2022年7月期
FP
FP
FP
FP
FP
（3か月）
(3
months)Rents for New Leases (1) (2)by Area (monthly basis)by Room Type (monthly basis)
Studio
シングル

Tokyo Metropolitan Area
Regional Area
東京経済圏
地方経済圏 Residential
全体 Portfolio
4.1%

3.7%
2.0%
1.6%
Rent Increase
Rate in Tokyo
Metropolitan
Area (3)

5.1%

2.7%
1.8%
1.9%

5.0%

1.6%

1.8%

5.6%

2.8%

2.8%

3.4%
2.8%

3.4%
1.8%

4.9%

5.7%

6.5%

5.7%

2.1%

2.5%

1.7%

-0.1%
5.7%

Jul. 2022
Jan. 2023
Jul. 2023
Oct. 2023
Apr. 2024
2022年7月期 2023年1月期 2023年7月期 2023年10月期 2024年4月期
FP
FP
FP
FP
FP
(3 months)

Rent Increase
Rate in Family
Type (3)

7.0%

Small
Familyスモール・ファミリー

1.1%

Family
ファミリー
8.9%

6.7%
2.3%
1.8%

3.1%
1.9%

-1.3%
8.4%

7.7%

10.7%

8.8%

Jul. 2022
Jan. 2023
Jul. 2023
Oct. 2023
Apr. 2024
2022年7月期 2023年1月期 2023年7月期 2023年10月期 2024年4月期
FP
FP
FP
FP
FP
(3 months)

Note 1: Figures for Oct. 2023 FP for residential properties are for the 3 months from Aug. 1, 2023 to Oct. 31, 2023 following the merger. The same shall apply hereafter.
Note 2: “Rents for New Leases” = Total Amount of Increase / Decline of rent of new tenants / Total amount of rent before revisions
Note 3: “Rent Increase Rate” = Total Amount of Increase of rent of new tenants / Total amount of rent before revisions

21

Residential

Performance (Rent Renewals in Residential Properties)

Certain amount of upward rent revisions continue; aggressively negotiate at revisions and aim
to increase the amount of upward revisions
Rent Change in Renewals (monthly rent basis)

Rent Change in Renewals (monthly unit basis)■ Net■ 賃料上昇Increase ■賃料据置
Unchanged 賃料下落
■ Decline(mn yen)

0.4
0.4

0.2%

0.1%

1.0

0.9
Total rent
increase

0.1%

1.0

0.9

0.3

0.3

0.3

0.3

93.1%

91.3%

87.1%

84.5%

87.4%

6.9%

8.6%

12.9%

15.3%

12.6%

Jul. 2022
2022年7月期
FP

Jan. 2023
2023年1月期
FP

Total rent
decreaseJul. 2022
Jan. 2023 2023年7月期
Jul. 2023 2023年10月期
Oct. 2023 2024年4月期
Apr. 2024
2022年7月期
2023年1月期
FP
FP
FP
FP
FP
（3か月）
(3
months)Jul. 2023
Oct. 2023
Apr. 2024
2023年7月期
2023年10月期
2024年4月期
FPFPFP(3 months)

Rents for Renewals (1)by Area (monthly basis)by Room Type (monthly basis)

Tokyo Metropolitan Area
Area
東京経済圏 Regional地方経済圏

0.6%
0.4%

0.3%
0.4%

0.2%

Jul. 2022
2022年7月期
FP

0.7%

0.6%
0.5%
0.3%

0.3%
0.3%

0.5%

0.2%

0.1%

0.2%

Jul. 2022
2022年7月期
FP

Jan. 2023
2023年1月期
FP

0.2%
0.0%

0.1%

スモール・ファミリー
Small Family

0.6%

0.4%

0.2%
0.0%

0.0%

シングル
StudioResidential
全体 Portfolio

Family
ファミリー

0.5%
0.5%

0.4%

0.6%
0.4%
0.3%

0.1%
Jan. 2023
2023年1月期
FP

Jul. 2023
2023年7月期
FP

Oct. 2023
Apr. 2024
2023年10月期
2024年4月期
FPFP(3 months)

Note 1: “Rents for renewals” = Total Amount of rent change of renewal tenants / Total amount of rent before revisions

Jul. 2023
Oct. 2023
Apr. 2024
2023年7月期
2023年10月期
2024年4月期
FPFPFP(3 months)

22Performance (Retail Properties)

RetailAchieved rent growth for all new contracts
Monthly rent change at contract renewals were in positive territory for two FP
Tenant Move-in and Move-out (based on rent) (1,2)
Aobadaireopens

Rent of New Lease (based on number of revisions) (1)■ Increase ■Decline
賃料増額
賃料減額

入居（左軸）
退去（右軸）■ Move-in ■ Move-out
42.9%
66.7%

62.5%

45.5%
100.0%

1.5%
1.0% 1.1%
0.4% 0.4%

0.3%

Mar. 2022
2022年3月期
FP
Occupancy

99.2%

57.1%

Sep. 2022
2022年3月期
FP
99.3%

0.5% 0.6%

33.3%

0.2% 0.3%

99.5%

99.3%

54.6%

Mar. 2022
Sep. 2022
Mar. 2023
Oct. 2023
Apr. 2024
2022年3月期
2022年9月期
2023年3月期
2023年10月期
2024年4月期
FP
FP
FP
FP
FP
(7 months)

Mar. 2023
Oct. 2023
Apr. 2024
2023年3月期
2023年10月期
2024年4月期
FPFPFP(7 months)
99.5%

37.5%

Change(annual)436-3,460

-78

-187

1,300

Thousandsyen

Thousandsyen

Thousandsyen

Thousandsyen

Thousands
yen

Contract Renewals at Lease Expiry (based on rent) (1)Rent Revisions (based on number of revisions) (1,4)■ Renewal of contract ■ Move out at end of contract
再契約
満期退去
今後満期を迎える契約■ Contract that will reach lease expiry

賃料増額 ■ 同条件
賃料減額■ Increase
Unchanged■ Decline(mn yen)

60

3.2%

40

2

20

39

Percentage of rent renewals within retail properties (3)
2.4%
2.7%
2.0%

5

14.3%

3.7%

1

53.6%

23.8%
52.4%

8.9%

11.6%

1.7%

62.2%

46.5%

66.7%

41.9%

31.7%

50
26

35

27

32.1%

23.8%

28.9%

0
Mar. 2023
Oct. 2023
Apr. 2024
Oct. 2024
Apr. 2025
2023年3月期
2023年10月期
2024年4月期
2024年10月期
2025年4月期
FP
FP
FP
FP
FP
(7 months)

Number of
Lease expiry
tenants

49

50

64

58

51

Mar. 2022
Sep. 2022 2023年3月期
Mar. 2023 2023年10月期
Oct. 2023
Apr. 2024
2022年3月期
2022年9月期
2024年4月期
FP
FP
FP
FP
FP
(7 months)
Change(annual)-1,343

187-2,110

1,380

1,445

Thousandsyen

Thousandsyen

Thousandsyen

Thousandsyen

Thousandsyen

Note 1: Figures for Oct. 2023 FP for retail facilities are for the 7 months from Apr. 1, 2023 to Oct. 31, 2023 before the merger. Figures for retail facilities and logistics facilities were previously disclosed
together, but from this material, figures for retail facilities only have been aggregated and disclosed. The same shall apply hereafter.
Note 2: Based on the rent revenue of the last month of each fiscal period in relation to each of the subject rents.
Note 3: The figure is the percentage of the total amount of rent of tenants under fixed-term lease agreement to the total amount of rent stipulated in the respective lease agreement of all tenants whose
lease is due for renewal in each FP, regardless of the type of contract.
Note 4: The figure is the ratio of the number of changes in rent from the rent including common expenses before renewal for tenants whose lease is due for renewal in each FP.

23

Retail

Performance (Retail Properties)

Many tenants are in categories that are less affected by e-commerce, and continue to maintainstable sales
Ratio of sales-linked rent increased due to additional acquisition of iias Kasugai
Tenant categories(based on rents) (1)Changes in Portfolio Sales - Monthly Comparison vs previous year
(%)
120%

Tenants less affected by
e-commerce

110%102.1%

100%
90%
80%
70%
0
Jan.

Apr.

Jul.
2022

Oct.

Jan.

Apr.

2023

Sales-linked Rent (2)■ Actualamount (mn yen)
実績額(百万円)
2.9

2.9

1.7

133

126

Mar. 2022
2022年3月期
FP

Sep. 2022
2022年9月期
FP

Oct.

Jan.

Apr.
2024

Groceries & Costco

31.6%

2.

Other merchandise sales

12.7%

3.

Service businesses

10.6%

4.

Home & garden

10.0%

5.

Master lease

9.8%

6.

Amusement

5.6%

7.

Consumer electronics

4.9%

8.

Clothing

4.8%

9.

Health clubs

4.5%

10.

Restaurants

4.1%

Contracts with Rent Linked to Interest / CPI(based on rents) (3)Percentage (%)
割合(%)

278

1.8

Jul.

1.

3.1

259

228

Lease contracts
with rents linked tointerest / CPI

9.7％
Mar. 2023
2023年3月期
FP

Oct. 2023
2023年10月期
FP(7 months)

Apr. 2024
2024年4月期
FP

Note 1: Attribute ratios of tenants for only retail facilities are calculated for assets owned by KDXR as of Apr. 30, 2024.
Note 2: The percentage of sales-linked rents to the total rents of retail facilities is calculated.
Note 3: Calculated as the percentage of rents in contracts with interest rate/CPI-linked clauses in the monthly rents as of Apr. 30, 2024 for assets held by KDXR as of Apr. 30, 2024.

24

HotelPerformance (Hotels)

Occupancy rates and ADR continues to be favorable, backed by a recovery in hotel demand
Aim for upside by proactively acquiring variable rent hotels in anticipation of further demand
expansion
Occupancy Rate and ADR (1)

Portfolio of Hotels

Occupancy Rate(%)

Hotels Held by KDXR (Tokyo Metropolitan Area)
Market (Tokyo, Lodging-oriented）
本投資法人保有東京経済圏物件
マーケット（東京、宿泊主体型）

100.0

Property
Name
Acquisition
Price

80.0

HOTEL
HOTEL
LiVEMAXLiVEMAXremm roppongi
Yokohamaeki- Tokyo-Otsukabldg.
Nishiguchi
Ekimae

60.0

40.0
2,600

2,370

9,900

Rent Type

Fixed Rent

Fixed Rent

Fixed Rent

Location

Yokohama,
Kanagawa

Toshima-ku,
Tokyo

Minato-ku,Tokyo(mn yen)

20.0
0.0
Apr. 2021
2021年4月

Oct. 2021
2021年10月

Apr. 2022
2022年4月

Oct. 2022
2022年10月

Apr. 2023
2023年4月

Oct. 2023
2023年10月

ADR
(yen)

Market (Tokyo, Lodging-oriented）
Hotels Held by KDXR (Tokyo Metropolitan Area)
本投資法人保有東京経済圏物件
マーケット（東京、宿泊主体型）

15,000 In the COVID-19 pandemic period, ADR was under-performing
relative to the market due to prioritizing occupancy

12,000Property
Name

Okinawa Prince
Hotel Ocean View
GinowanShin-Osaka
Esaka Tokyu
REI Hotel

AcquisitionPrice

22,00011,770

Fixed +
Variable Rent

（Sales-linked）

9,000
6,000
3,000

(mn yen)Rent Type(Partly GOP-linked)

Location
Note 1: Market data is from Ohta publications Co.,Ltd.

Variable Rent

0
Apr. 2021
2021年4月

Oct. 2021
2021年10月

Apr. 2022
2022年4月

Oct. 2022
2022年10月

Apr. 2023
2023年4月

Oct. 2023
2023年10月

Ginowan, Okinawa Suita, Osaka

25Performance (Logistics, Healthcare)
Logistics

Logistics Facilities

Healthcare

Healthcare Facilities

Lease Expiry (1)Remaining Lease Term (1)Aggressively negotiate for rent increases and implement
CPI/interest linked contracts in order to mitigate inflation risks

Most of the remaining lease terms are over 10 years, andcash flows are stable over the long-term

46.3% of contracts maturing within next 3 years
74.2%

54.7%
30.4%
7.9%
2024年
Oct.
2024
FP
10月期

2025年
Apr.
2025
FP

2025年
Oct.
2025
FP

4
Properties

2
Properties

4月期

10月期

0.4%

15.2%

10.2%

1年未満
Up to 1 year

1-5
～5年未満
years

6 - 10～10年未満
years

7.0%
2026年
Apr.
2026
FP
4月期

2026年
Oct.
2026
FP
10月期

2027年
Apr.
2027
FP

2027年
Oct.
2027
FP or after

4月期

4月期以降

1
Property

5
Properties

10年超
10+ years

Internal Growth Initiatives through Unique Measures

Utilization Rate (2)Increase income by installing solar panels on the rooftops

Contractual occupancy rate is 100% due to the master leaseto operators
Average utilization rate (Senior living facilities)
平均利用率（シニアリビング施設）
Average utilization rate (Nursing and health facilities)
平均利用率（メディカル施設）(%)
Property

Initiatives

Tenri Distribution Center• Selling the electricity generated tothe power company increases
income by approximately 2.7
million yen per year

100.0

95.4

93.0

91.0

90.7

85.6

86.5

86.6

Jun. 2022
2022年6月(6 months)（6か月）

Dec. 2022
2022年12月(6 months)（6か月）

Jun. 2023
20223年6月(6 months)
（6か月）

92.5

90.0
87.3
80.0

88.6

70.0

Dec. 2021
2021年12月(6 months)（6か月）

Dec. 2023
2023年12月(6 months)（6か月）

Note 1: The figure is the percentage of the total monthly rent stipulated in the lease agreements with tenants of the properties held as of Apr. 30, 2024.
Note 2: Figures are based on materials submitted by operators. “Senior living facilities” include private senior homes with nursing care, residential private nursing homes, and serviced senior housing held
by KDXR as of Apr. 30, 2024, excluding non-disclosed properties. “Nursing and health facilities” include nursing and health facilities held by KDXR as of Apr. 30, 2024.

26

Examples of Active Management
RetailAshico Town Ashikaga

Residential

River City 21 East Towers II

Realization of NOI increase through expansion

Realized rent growth through renovation work of residence areas• Made efficient use of underutilized space by converting part ofparking lot into additional restaurant building (scheduled to becompleted by Oct. 31, 2024)• Acquired the property with aging residence in anticipation of future
upside• Renovate rooms sequentially after tenants move out (46 contracts
signed in Apr. 2024 FP)• 455 out of a total of 642 rooms have not yet been renovated; aim toincrease revenues through sequential renovations+

NOI

ROI (1)

Unit Rent (2)ROI (1)

14 mn yen

9.8%

+

17.8%

16.6%

Map of the entire center
KitchenCinemaBuilding

Roadside
Building

Site forRestaurant
Building

Mall
Building

Perspective Drawings（Restaurant Building）

Bathroom

Note 1: Return on investment is calculated as the increase in rent divided by the investment amount
Note 2: For the 46 rooms newly contracted in the Apr. 2024 FP after renovation, the figure is calculated by dividing the increase in the new rent from the previous rent by the previous rent.

27

5. Financial Strategies

KDX Toyosu Grand Square 28

Financial Status (1)Promoted borrowing at fixed interest rates and longer-term during Apr. 2024 FP, taking into
account the possibility of revision of monetary easing
A certain increase in interest costs can be covered by lowering the spread and internal growth
Avg. Debt Cost (1)0.80%

Avg. Remaining Years
to Maturity (1)0.84%

3.4 years

3.3 years

Refinancing during Apr. 2024 FP (43.4 bn yen)

Long-term Debt Ratio (1)

97.9%

98.4%

Fixed Interest Rate
Debt Ratio (1)

90.4%

91.0%

Interest Cost Simulation for Oct. 2024 FP Beyond
Tighter spreads at refinancing expected due to improved credit

Before theRefinancing
Avg. Interest Rate

Spread (2)After theRefinancing

0.50%

0.80%

0.40%

0.33%

Borrowings Maturing in EachFP (inc. short-term debt)
Long-term Debt
Total
Debt Cost Per Unit (3)Oct. 2024 FP

Apr. 2025 FP

33.6 bn yen

39.4 bn yen

29.7 bn yen
63.3 bn yen

69.0 bn yen

66 yen70 yen-6 yen-6 yen

0.10%

0.47%

Avg. Borrowing Years

3.6 years

4.9 years

Decrease in DPU when Interest
Rate Increase by 25 bps

19 yen21 yenFixed Interest Rate Ratio

47.8%

66.9%

Decrease in DPU when Interest
Rate Increase by 50 bps

39 yen43 yenBase Rate

Effect of Credit Enhancement

Note 1: Each figure is compared as at Nov. 1, 2023 and as at Apr. 30, 2024.
Note 2: Includes upfront fees (per annual)
Note 3: For borrowings maturing in the Oct. 2024 FP and Apr. 2025 FP and borrowings with floating interest rates, the figures are converted per unit at the base rate on Apr. 30, 2024, assuming that the maturing borrowings arerefinanced at the same maturity as the previous borrowings and at the borrowing spread as at the date of this document. Decrease in DPU due to interest rates increase is estimated based on the assumption that the base rateincreased by 25 or 50 bps at the beginning of FP.

29

Financial Status (2)Long-Term Issuer Rating

LTV（Total assets / Market value）

AA

44.0% / 40.0%

Borrowing Capacity

19.0 bn yen

Japan Credit Rating Agency, Ltd. (JCR)(As of Jul. 1, 2024, based on LTV 45%)

Status of Debt Financing
Classification
Short-Term
Borrowings
Long-Term
Borrowings
Total
Borrowings
Investment
Corporation
Bonds
Total Borrowings
and Investment
Corporation Bonds

Maturity Ladder

Balance(mn yen)

Percentage
(%)

8,900

1.6

506,470

93.3

515,370

94.9(100 mn yen)

旧KDOの借入金■ Bonds投資法人債■ Former KDO’s
Borrowings ■消滅投資法人由来の借入金
Dissolved REIT’s Borrowings

600

400

200

5.1

27,7000543,070

100.0

Oct. 2025年
Apr. 2025年
Oct. 2026年
Apr. 2026年
Oct. 2027年
Apr. 2027年
Oct. 2028年
Apr. 2028年
Oct. 2029年
Apr. 2029年
Oct. 2030年
Apr. 2030年
Oct. 2031年
Apr. 2031年
Oct. 2032年
Apr.
2024年
2024
2025
2025
2026
2026
2027
2027
2028
2028
2029
2029
2030
2030
2031
2031
2032
10月期 4月期 10月期 4月期 10月期 4月期 10月期 4月期 10月期 4月期 10月期 4月期 10月期 4月期 10月期 4月期
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP
FP

Commitment line maximum amount (1) : 16.5 bn yen

Outstanding Borrowings by Financial Institutions
13.4%
3.6%
Number of
4.4%
4.9%

22.8%

Lenders(as of Apr. 30, 2024)

5.9%

38

7.5%
9.1% 11.4%

17.0%■ Sumitomo Mitsui Banking

117,410 mn yen

22.8%

Shinkin Central Bank

4,500 mn yen

0.9%

Sompo Japan Insurance Inc.

1,000 mn yen

0.2%■ MUFG Bank

87,810 mn yen

17.0%

Daishi Hokuetsu Bank, Ltd.

4,000 mn yen

0.8%

THE HACHIJUNI BANK, LTD.

900 mn yen

0.2%■ Mizuho Bank

58,550 mn yen

11.4%

The Chugoku Bank, Ltd.

3,900 mn yen

0.8%

The Gunma Bank, Ltd.

900 mn yen

0.2%■ Development Bank of Japan

46,840 mn yen

9.1%

The 77 Bank

3,800 mn yen

0.7%

The Yamanashi Chuo Bank, Ltd.

900 mn yen

0.2%■ Sumitomo Mitsui Trust Bank

38,670 mn yen

7.5%

Kansai Mirai Bank, Limited

3,600 mn yen

0.7%■ Resona Bank

0.7%

0.1%

5.9%

3,400 mn yen

700 mn yen

30,500 mn yen

The Nishi-Nippon City BankThe Shizuoka Bank, Ltd.

■ Aozora Bank

25,490 mn yen

4.9%

Sumitomo Life Insurance

3,000 mn yen

0.6%

The Bank of Kyoto,Ltd.

650 mn yen

0.1%■ Mizuho Trust & Banking

22,550 mn yen

4.4%

The Musashino Bank, Ltd.

2,950 mn yen

0.6%

The Hyakugo Bank, Ltd.

500 mn yen

0.1%■ SBI Shinsei Bank, Limited

18,450 mn yen

3.6%

The Chiba Bank, Ltd.

The Higo Bank, Ltd.

500 mn yen

0.1%

500 mn yen

0.1%

2,000 mn yen

0.4%

The Norinchukin Bank

8,100 mn yen

1.6%

The Bank of Yokohama, Ltd.

1,700 mn yen

0.3%

The Keiyo Bank,Ltd.

The Bank of Fukuoka

7,200 mn yen

1.4%

The Hiroshima Bank

1,500 mn yen

0.3%

THE SHIGA BANK, LTD.

500 mn yen

0.1%

Nippon Life Insurance Company

4,900 mn yen

1.0%

Daiwa Next Bank, Ltd.

1,500 mn yen

0.3%

The Higashi-Nippon Bank, Limited

300 mn yen

0.1%

The Yamaguchi Bank, Ltd.

4,500 mn yen

0.9%

The Dai-ichi Life Insurance

1,000 mn yen

0.2%

San ju San Bank,Ltd.

200 mn yen

0.0%

Note 1: The start date of the credit line under the commitment line agreement is May 1, 2024.

30

6. Sustainability Initiatives

iias Kasugai

31

ESG Initiatives (Environment)
Percentage of Properties withEnvironmental Certification

KPIs

GHG Emission Reduction Targets

Aim for 80% or more
（Raised from the previous target: 60%）

2030 Targets(2022 baseline)

2050 Targets

Total amount: 42% reduction
Per Unit: 42% reduction

Net-zero

MSCI ESG Rating
Aim for upgrade(BBB)

GHG Emission Reduction Targets

Environmental Certifications
Number of certified properties

Ratio(As of Jun. 18, 2024)(As of Jun. 18, 2024)

120 properties

64.5%

Acquisition plan
• We aim to acquire external certifications, such as Certification• We have obtained Science Based Targets

Initiatives for GHG emission reduction• From Sep. 2023 onward, we have graduallyswitched to electricity plans mainly derived

for CASBEE for Real Estate, for about 15 properties offrom renewable energy sources procured

residential properties in each FP

and provided by Kenedix Green Energy, Inc.,a member of the Kenedix Group, to achieve

Number of Implemented
Properties(Based on signed agreement
as of Jun. 18, 2024)

84 properties

corporate PPA

Decarbonization Support Services
for Rental Housing “EnerSyGo”• Start to use EnerSyGo to monitor energy use in of private
living areas of residential facilities and use as referencematerial to educate tenants on energy conservation• Data coverage of electricity usage in GRESB Real Estate

Formulation of Sustainability Finance Framework• Formulated a sustainability finance framework as of Jun. 18, 2024, andobtained an external evaluation from JCR• Going forward, promote green/social/sustainability finance based on thisframework

Assessment also improved
32

ESG Initiatives (Social, Governance)
Social Initiatives

Human Capital Development

Held sales event for “CHOCO LABO”, nation’s first chocolate
factory as a welfare facility

Engagement survey•

At “CHOCO LABO”, a Type B welfare facility for continuous employment
support operated by General Incorporated Association AOH, people withdisabilities work hard every day to manufacture and sell chocolate confections
while making the most of their respective strengths. The sales event wasrecently held at KDX Toyosu Grand Square, which is owned by KDXR

Financial Education Event for Students•

Based on a proposal from employees, we held a financial education event for
students with the aim of contributing to the improvement of students’ financial
literacy by educating and promoting J-REITs among students who are highlyinterested in investing•

We outsource a regular engagement survey every year and continuously
implement improvement measures based on the results. The rating andscore were improved compared to last year for 2 years

FY2022

FY2023

FY2024Engagement
ratingBBBAAAEngagement
score

55.4

59.3

62.2

Ranked within
Top

20%

of companies surveyed
by external agency

Governance Initiatives
Expansion of information disclosure related to anti-bribery andcorruption•

In Mar. 2024, formulated the “Policy on Anti-Bribery and Corruption” andexpanded the disclosure of information on the website regarding the prohibitionof business entertainment, gift-giving, insider trading, embezzlement, fraud,
theft, and bribery, etc.

•

In fiscal year 2023, there were no cases of “Incidents related to fraud or
corruption”, “Dismissals or termination related to fraud or corruption,” “Costs offines, penalties, or settlements related to fraud or corruption” in the Kenedix
Group. Moreover, there were no record of political contributions

33

7. Appendix

Nichii Home Hachimanyama 34

Management Strategies of each Asset Type
OfficeResidential and Healthcare

Investment management strategy focused on mid-sized
office buildings in the Tokyo metropolitan area

Investment management strategy focused on acquiring
stable revenue and sustainable growth throughinvestment in residential spaces➢

Investment and management
focusing on mid-sized officebuildings in the Tokyo
metropolitan area (Tokyo andmajor cities in Kanagawa,
Saitama and Chiba Prefectures)
where there is a high density of
economic activity, high tenant
demand, and a large pool oftenants

Residential Properties

Healthcare Facilities➢➢

Balanced investment andmanagement focusing on
residential facilities from single tofamily type properties that
represent highly stable revenue,
mainly in the Tokyo metropolitan
area where there is a highdensity of economic activity

Hotels and Logistics

RetailSustainable growth driven
by expansion of investment universe

Investment management strategy focused on
shopping centers for daily needs➢

Investment and management
focusing on shopping centers
for daily needs whose coretenants are grocery
supermarkets and othertenants providing daily
necessities, located in daily foottraffic areas guaranteeing ahigh frequency of visits

Investment andmanagement in thehealthcare sector which is
expected to grow further,focusing on facilities run
by trusted operators

Food Supermarkets（Core Tenant）

Residential Area

Flat Parking Lot

Hotels

Logistics Facilities➢➢

With COVID-19 pandemic over,both occupancy rates andaverage room rates are on an
upward trend due to strong
domestic travel demand andinbound demand on the back of
the weak yen, and further growthis expectedWith remarkable progressof e-commerce, demand is
expected to continue forboth large-scale logistics
facilities and retail
distribution centers that canstore and deliver goods
more efficiently

35Portfolio Overview (1)AcquisitionPrice(bn yen)Avg. Occupancy Rate of FP (%)

Appraisal Value (1)(bn yen)

Unrealized
Appraisal
ProfitNOI (1)(1)
and Loss(bn yen)(bn yen)Appraisal NOI Yield (1) (%)
Apr. 2024 FP
Nov. 1,2023(c)Apr. 30,2024(d)Change(d)-(c)Forecast

ActualOct.
2024 FP
Forecast

21.5

5.0

5.0

0.0

98.2

98.0

97.4

2.3

12.1

3.8

3.8

0.0

96.5

97.3

96.7

+2.1

8.2

13.8

4.8

4.8

0.0

99.3

99.4

99.3

33.8

0.0

2.6

1.4

4.6

4.6

0.0

100.0

100.0

99.8

21.7

21.7

0.0

0.4

0.9

4.6

4.6

0.0

100.0

100.0

100.0

83.7

82.4

82.2

-0.2

-0.2

4.0

4.9

4.9

0.0

100.0

100.0

100.0

1,196.4

1,285.7

1,287.2

+1.5

126.2

54.0

4.6

4.6

0.0

98.5

98.8

98.6

Type
Jul. 1, 2024

Nov. 1,2023(a)Apr. 30,2024(b)Change(b)-(a)Office

429.9

528.7

527.9

-0.8

112.6

Residential

320.3

322.1

322.6

+0.4

Retail

287.4

296.6

298.8

Hotels

48.6

33.9

Logistics

26.2

Healthcare

Note1: Unrealized profit and loss and appraised NOI based on appraisals with a valuation date of Apr. 30, 2024 are shown. Unrealized profit and loss are the sum of the difference between the appraisedvalue and the book value of the properties held at the end of FP as at the end of Apr. 2024. The appraisal NOI yield is the net operating income under the direct capitalization method in the appraisal
report divided by the acquisition price. The calculation as of Nov. 1, 2023 includes properties acquired during the Apr. 2024 FP, for properties without an appraisal report as at the end of the previous
period, For properties without an appraisal report as at the end of the previous period, the contents of the appraisal report as at the time of acquisition have been aggregated.

36

Portfolio Overview (2)OfficeRetailResidential

Regional Areas
19.7%

Regional Areas
23.5%

Tokyo
5 Central
Metropolitan wards of
Area
Tokyo
Other
Tokyo
Metropolitan
Area
28.7%

80.3%

Ordinance-designatedcities, core cities
and other area
18.4%

51.6%

Tokyo
Metropolitan
Area
Other Tokyo
Metropolitan
Area
13.9%

76.5%

Regional
Areas
13.1%
Tokyo
Metropolitan
Three Major Area
44.6%

Tokyo
Metropolitan Area
3.3%

Metropolitan
Areas
Nagoya
Area
14.8%

81.6%
Osaka Area
16.4%

HotelsRegional Areas
14.7%

Metropolitan
Areas

Tokyo
Metropolitan
Area

86.9%

85.3%

Osaka
Area
42.3%

Fukuoka Area
5.4%

Other Tokyo
23 wards
23.0%

Logistics

Healthcare

8 Centralwards
of Tokyo
39.7%

Tokyo
Metropolitan
Area
Four Major 45.1%

Other Tokyo
Metropolitan Area
82.0%

Note: Percentages are calculated based on the acquisition price of the portfolio as of Jul. 1, 2024.

Tokyo 23
wards
25.2%

Tokyo
Metropolitan
Regional Areas
Area
69.4%

30.6%
Other Tokyo
Metropolitan
Area
5.3%

37

New Acquisitions (1)Residential

River City 21 East Towers II(Acquired 25% quasi co-ownership interest in Apr. 2024 FP)

Residential property gaining upside profit by increasing rents throughsequential renovation of the property after the acquisition

Residential

KDX Residence Ikebukuro Kanamecho(Acquired in Apr. 2024 FP)

A newly built property completed in Feb. 2024, located in the Ikebukuro areawith excellent access to major areas in Tokyo

Comfortable access to the city
center and transportation hubs
Kaname-cho(nearest station)

JR Yamanote Line2
min
Tokyo Metro
Fukutoshin Line17
Shinjuku min

25
min

18
min

Tokyo

26
min

52
min

Shibuya
Yokohama

38
min

Yurakucho

Shinagawa

Location

Itabashi-ku, Tokyo

AcquisitionPrice

1,406 mn yen

Appraisal Value

1,620 mn yen

Appraisal NOI

58 mn yen

Trends in Occupancy Rates

Location

Completion

Aug. 2000

Appraisal NOI
Yield

4.1%

Acquisition Price

9,232 mn yen

Occupancy Rate

95.3%
(as of Apr. 30, 2024)

Completion

Feb. 2024

Occupancy
Rate

69.1%
(as of May 31, 2024)

Land Area

684.42m2

Total Floor Area

1,727.13m2

10,775 mn yen

Land Area

6,981.20m2

Appraisal NOI

390 mn yen

Total
Floor Area

69,024.54m2

Number ofRooms

642 units

endeavor to further improve occupancy rate
63.8%

Chuo-ku, Tokyo

Appraisal Value◼ Leasing is on track and38.3%

Number ofMar.
44 units
Rooms
Note: The appraised value, appraised NOI and appraised NOI yield are the figures from the property appraisal report at the time of acquisition. The same shall apply hereafter.

Appraisal NOI Yield

4.2%

69.1%

Apr.
2024

May

38

New Acquisitions (2)Okinawa Prince Hotel Ocean View Ginowan

Hotels(Acquired in Apr. 2024 FP)

Capture earnings upside by acquiring a hotel with GOP-linked rentwith the expectation of further growth in hotel market

Location
Acquisition PriceAppraisal Value

Ginowan, Okinawa
22,000 mn yen
24,900 mn yen

Appraisal NOI

1,076 mn yen

Appraisal NOI Yield
Completion
Occupancy Rate
Number of Rooms

4.9%
Jan. 2022
100.0%
340

Rent Structure

Total Number of Guests in Okinawa(compared to the same month in 2019)
日本人
外国人■ Japanese■
InboundOpened(Apr. 2022)

126
105

88 95

50 49 52

107 104 115 108

53 59

65 70

85
74 68

4 May
5 Jun.
6 Jul.
7 Aug.
8 Sep.
9 Oct.
10 Nov.
11 Dec.
12 Jan.
1 Feb.
2 Mar.
3
Apr.
2023
2024
Source: MLIT “Overnight Travel Statistics”

Location

Suita, Osaka

AnticipatedAcquisition Price

5,100 mn yen

Appraisal Value

5,360 mn yen

Appraisal NOI

284 mn yen

Operator

Appraisal NOI
Yield

5.6%

Rent Structure

Completion
Occupancy
Rate
Number of
Rooms

Sep. 1983
100.0％
363
Tokyu Hotels &Resorts Co., Ltd.
Variable rent
(Sales-linked)◼Renewal of all guest rooms in 2019 in anticipation of growth in inbound demand(i) Fixed rent: Not disclosed(ii) Variable rent:
GOP (1)× fixed rate(iii) Incentive rent (2):
（GOP – set amount）x
fixed rate

◼Located in an area that is home to the headquarters of companies with nationwide
operations, the hotel is expected to capture business-related accommodation demand◼Maximize property value through integrated management of the hotel and the retail portionof the property which is already owned
Renewal of all guest rooms in 2019
BeforeOperation by excellent operator

After

Number of Passengers
at Naha Airport
Domestic(millions of people)
30
101 100 94
90 74
73

(Acquiring in Oct. 2024 FP)

Located within a 1-min. walk from Esaka Station with good access to central Osaka

Seibu Prince Hotels
Worldwide Inc.
(i) + (ii) + (iii)

OperatorShin-Osaka Esaka Tokyu REI Hotel (1)Hotels

20
10

2.5

3.1

3.6

3.9

International
3.1

1.0

1.6

0.0

16.2

21.2 21.5 20.6 0.0
17.5 18.5 20.0
6.6

8.0

0.4

Banquet halls and meeting rooms
16.2

02013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Source: MLIT “Airport Management Status Survey Report”

Note 1: "GOP" stands for an abbreviation for Gross Operating Profit, which is the amount calculated by theprescribed calculation method as the operating profit of the hotel business in the property.
Note 2: Incentive rent only occurs when the annual GOP reaches a set amount.

◼ Operated by Tokyu Hotels & Resorts Co., Ltd.,
which deploys a network of Tokyu Hotels that
operates 71 hotels (2) in major cities

Note 1: This is the acquisition of the hotel portion of Carino Esaka, which KDXR owns the retail portion.
Note 2: Including partner hotels, the company operates 68 domestic and 3 overseas hotels (as of Jun. 1, 2024).

39

New Acquisitions (3)remm roppongi building

Hotels(Acquired 20% in Apr. 2024 FP and acquiring 30% in Oct. 2024 FP)

One of the best locations and number of rooms in Tokyo

Location
AnticipatedAcquisition Price

Feb. 2017

3,960 / 5,940 mn yen

Completion
Occupancy
Rate

4,060 / 6,030 mn yen

Number ofRooms/ Stores

400 Rooms
3 Stores142 / 211 mn yen

Operator

HankyuHanshinHotels Co., Ltd.

Minato-ku, Tokyo(Apr. / Oct. FP)

Appraisal Value(Apr. / Oct. FP)

Appraisal NOI(Apr. / Oct. FP)

Appraisal NOI Yield(Apr. / Oct. FP)

3.6 / 3.6 %Rent Structure

100.0％

Fixed Rent

COMBOX Komyoike

Retail(100% Ownership after additional interest acquired in Oct. 2024 FP)

Largest NSC in the area in front of Komyoike Station

Location

Izumi, Osaka

Completion

iias Kasugai

Retail(100% ownership after acquiring 30% in Apr. 2024 FP)

One of the largest NSCs in Kasugai, Aichi, with a stable retail trade area

Location

Kasugai, Aichi

Acquisition Price

6,135 mn yen

Appraisal Value

6,210 mn yen

Appraisal NOI

280 mn yen

Appraisal NOI Yield

4.6％

Completion (1)Occupancy Rate

100.0%

Land Area

64,844.79m2

Total Floor Area (1)A. 50,906.81㎡
B. 18,915.97㎡
C. 198.81㎡

TenantDaiwa House Realty Mgt. Co., Ltd

Note 1: A. above lists the features of the main building, B. above lists the features of the existing parking structure; C. above lists
the features of the electrical substation.

Kohnan Shinichi (Land)

Retail（Acquired in Oct. 2024 FP）

Newly built large-scale home center in the northwest of Fukuyama City

Mar. 2004

Location

Fukuyama,
HiroshimaCompletion-

460 mn yen

Occupancy Rate

100.0%

AnticipatedAcquisition Price

2,630 mn yen

Occupancy Rate

100.0%

Appraisal Value

500 mn yen

Land Area

17,027.63m2

Appraisal Value

2,650 mn yen

Land Area

23,498.99m2

Appraisal NOI

25 mn yen

Total Floor Area

44,737.41㎡

Appraisal NOI

119 mn yen

Total Floor Area--

Appraisal NOI
Yield

4.5%

TenantKohnanAcquisition
Price

Appraisal NOI
Yield

5.4%

TenantA. Aug. 2021
B. Oct. 1991
C. Unknown

40

New Acquisitions (4)Logistics

KDX Logistics Ebina Chuo (Acquired in Oct. 2024 FP)

Location easily accessible to major roads, making it advantageous for bothdelivering to a wilder-area and securing workers

Shunsai deli Akishima DC (Land)

Logistics（Acquired in Apr. 2024 FP）

The land of a logistics facility with convenient access to traffic

Ebina Station Line Map

Location

Ebina, Kanagawa

Completion

Mar. 1992

Accquisiton Price

4,950 mn yen

Occupancy Rate

100.0%

Appraisal Value

5,070 mn yen

Land Area

9,638.00m2

Appraisal NOI

202 mn yen

Total Floor Area

14,645.40m2

Appraisal NOI Yield

4.1%

TenantMajor logistics
providerLocation
Direct access to both Sotetsu Line andTokyu Line will improve access tomajor stations in central Tokyo, andfurther development of the area aroundthe station is expected.

◼ Located within walking distance of Ebina Station, and in an area with many houses, making it anadvantageous area for securing workers◼ Located close to the junction of the Tomei Expwy. and the Ken-O Expwy., the site is expected toserve not only as a local distribution function but also as a wide-area distribution.
◼ Has redevelopment potential for future conversion to logistics facilities or other uses.

Logistics

KDX Hiroshima Kure DC (Acquired in Apr. 2024 FP)

Akishima, Tokyo

Completion

1,872 mn yen

Occupancy
Rate

100.0%

2,300 mn yen

Land Area

10,895.40m2

Appraisal NOI

74 mn yen

Total Floor
Area-

Appraisal NOI
Yield

4.0%

TenantNot disclosed

Accquisiton
Price
Appraisal
Value

Healthcare-

Irise Nerima Hikarigaoka (Acquired in Oct. 2024 FP)

Private senior home (with nursing care) operated by an experienced operator

BTS facility for local delivery which demand is expected to remain strong
Expanding demand for logistics relaytransportation bases
Niigata

Fukuoka

Hiroshima
Okayama
Ehime

Miyagi
Fukushima

NaganoKansaiRegionCapital
City

Aichi

Shizuoka

Source: Ministry of Land, Infrastructure, Transport and Tourism, Excerpt from
“Development of Relay Transportation Bases,”Completion
Occupancy
Rate

Dec. 2022

1,500 mn yen

Land Area

1,980.82m2

57 mn yen

Total Floor Area

2,464.51m2

4.3%

Number of
Rooms

61

Location

Nerima-ku, Tokyo

Acquisiton Price

1,351 mn yen

Appraisal Value
Appraisal NOI

Operator

100.0％◼ Operates more than 130 nursing carefacilities nationwide

Location

Kure, Hiroshima

Completion

Sep. 2023

Appraisal NOI Yield

Accquisiton Price

616 mn yen

Occupancy Rate

100.0%

Appraisal Value

633 mn yen

Land Area

3,720.40m2

Appraisal NOI

30 mn yen

Total Floor Area

852.80m2

TenantMajor delivery
service◼ Located in a quiet residential area, there are retail facilities around the closest station, Hikarigaoka
Station and Hikarigaoka Park is nearby◼ Acquisition price is about 10% below appraisal value; acquired through the sponsor support◼ Operator is Hitowa Care Services, which has one of the highest number of operating facilities in theindustry and already operates four KDXR properties

Appraisal NOI Yield

5.0%

41

Office Building Market (1)Change in Asking Rent and Vacancy Rate in Tokyo Central 5 wards (Jan. 2002 - Apr. 2024) (1)
Peak: 9.43%(Jun. 2012)

10.0

yen/tsubo

Peak: 23,014 yen/tsubo(Jul. 2020)

24,0008.0

22,000

6.0

5.38%

4.0

20,00019,825yen/ tsubo
18,0002.0

16,000

0.0
2002

2003

2004

2005

2006

2007

2008

Vacancy(LHS)

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Average asking rent(right axis)

Source: Miki Shoji “Office Market Data Tokyo Business Area”

Comparison of Occupancy Rates of KDXR Office Buildings and Market Average (2, 3)
（%）
100.0
96.5

97.2

97.3
96.3

96.2

95.4

95.3

95.3

95.9

94.4

91.5
93.4
92.4
91.1

91.2

90.8

91.3 90.8

99.6

94.7

94.9

95.8

99.2

99.7

99.9

99.9

97.2

96.4

96.6

97.9

97.7

98.7

99.2
98.1

98.7

96.8

95.5

95.0

90.0

99.4

98.1

97.0

KDX Iidabashi Square
Move-out of the tenant which
occupied the whole building

97.4

97.8

98.3

98.4

98.4

95.4
96.1

94.4
93.5

93.6

93.6

93.9

93.9

94.6

KDX Nihonbashi Kabutocho Bldg.
Move-out of the tenant which
had occupied the whole building

85.0
11/10 FP 12/4 FP 12/10 FP 13/4 FP 13/10 FP 14/4 FP 14/10 FP 15/4 FP 15/10 FP 16/4 FP 16/10 FP 17/4 FP 17/10 FP 18/4 FP 18/10 FP 19/4 FP 19/10 FP 20/4 FP 20/10 FP 21/4 FP 21/10 FP 22/4 FP 22/10 FP 23/4 FP 23/10 FP 24/4 FP

KDXR’s occupancy rate

Market occupancy rate

Note 1: Includes office buildings with a standard floor area of 100 tsubo or more in Tokyo business districts (Chiyoda, Chuo, Minato, Shinjuku and Shibuya wards)
Note 2: Market occupancy rate refers to the average value of Tokyo central 5 wards for each corresponding month published by Miki Shoji Co., Ltd.
Note 3: KDXR’s average occupancy rate refers to the weighted average occupancy rate of the office buildings in Tokyo central 5 wards that KDXR owned as of the end of each FP.

42

Office Building Market (2)Tokyo 23 wards Office Stock by Size and Age
Proper repair/maintenance and management are important in order to keep mid/small-sized office buildings competitive;
more than 80% of mid/small-sized office buildings are 20 years or older, and new supply is limited
Age of property (Years)

Mid/small-sized

Large-sized75
70
Mid/small-sized: 6.04mn tsubo
Average age: 34.8 years
Number of properties: 8,644

65

Large-sized: 7.09mn tsubo
Average age: 25.5 years
Number of properties: 766

60
55

Office buildings with former
earthquake resistancestandards
1.33 mn tsubo (22%)

Office buildings with former
earthquake resistancestandards
0.89 mn tsubo (13%)

50
45
40

Large supply during the
bubble period

35
Large supply

30
30
20 years or older
5.02 mn tsubo (83%)

20 years or older
4.04 mn tsubo (57%)

25
20

Less than 20 years
1.02 mn tsubo (17%)

Less than 20 years
3.05 mn tsubo (43%)

15
10
5
0

500,000

300,000

100,000

300-less than 5,000 tsubo（total floor area）(mid/small-sized office buildings)

100,000

300,000

5,000 tsubo or more（total floor area）（large-sized office buildings）

Source: Compiled by KDXR based on “Office Stock Pyramid 2024" published by Xymax Real Estate Institute Corporation

500,000(tsubo)43

Performance (Leasing Focus Office Buildings)
Fiscal Period ended Apr. 2024
KDX Yokohama
Nishiguchi Building

Percentage of the portfolio
0.2%

KDX NishiShinbashi Building

KDX Okachimachi
Building
Occupancy rate asof Oct. 31, 2023

Occupancy rate asof Oct. 31, 2023

Occupancy rate asof Oct. 31, 2023

100.0%

100.0%

100.0%

Occupancy rate asof Apr. 30, 2024

Occupancy rate asof May 31, 2024

Occupancy rate asof May 31, 2024

80.9%

89.7%

57.9%

(Vacant: 288 tsubo)• As occupancy rate was expected to decline to 75.7% due to the cancellation of
two floors in Mar. 2024, 79 tsubo is filled and the rate recovered to 80.9%.
• The vacancy rate in the area around Yokohama Station is just above 3% inrecent months, indicating steady tenant demand. KDXR attempts to fillvacancies early through leasing activities that cater to the needs of tenants,
such as subdividing the floors.

Percentage of the portfolio
0.1%(Vacant: 56 tsubo)• As occupancy rate was expected to decline to 49.2% due to the cancellation of six
floors in Mar. 2023 and Apr. 2024, all six floors are now filled (Only one floor started
in Dec. 2024, so occupancy rate as of the end of May 2024 is 89.7%).

Percentage of the portfolio
0.3%(Vacant: 730 tsubo)• As occupancy rate is expected to decline to 57.9% due to the cancellation offour floors in Apr. 2024, the rate will recover to 89.0% because three floors(540 tsubo) are expected to be filled in Sep. and Oct. 2024.
• KDXR attempts to fill the vacancies early by promoting the relatively cheap
rent levels to the large tenant pool in the Shinbashi and Toranomon areas.

Fiscal Period ending Oct. 2024
KDX Hakozaki
Building

Percentage of the portfolio
0.2%

KDX Shinbashi
Ekimae Building

KDX Yokohama
Kannai Building
Occupancy rate asof Apr. 30, 2024

Occupancy rate asof Apr. 30, 2024

Occupancy rate asof Apr. 30, 2024

89.3%

100.0%

92.9%

Occupancy rate asof Dec. 31, 2024

Occupancy rate asof Aug. 31, 2024

Occupancy rate asof Oct. 31, 2024

78.6%

70.8%

(Vacant: 590 tsubo)• As occupancy rate was expected to decline to 40.8 ％ due to cancellations offive floors in Oct. and Nov. 2024 in addition to one floor that is currently vacant,the rate will recover to 78.6% because four floors are expected to be filled.
• KDXR attempts to fill two floors early through capturing tenant relocation
demand related to the Nihonbashi area redevelopment.

Percentage of the portfolio
0.5%(Vacant: 887 tsubo)• Occupancy rate is expected to decline to 70.8% due to cancellations of four
floors in Jun. and Jul. 2024.
• KDXR focuses on filling vacancies early through leasing campaigns and otherinitiatives, using characteristics as one of the area's leading high-gradebuildings.

55.8%
Percentage of the portfolio
0.2%(Vacant: 721 tsubo)• Occupancy rate was expected to decline to 55.8% due to scheduled
cancellation of four floors in Oct. 2024 in addition to retail space on the first floor
that is currently vacant.
• Occupancy rate will recover to 65.1% in Oct. 2024 with one floor (152 tsubo)
filled back. KDXR attempts to vacancies early through uncovering demand forretail space and focuses on leasing three remaining floors on the standard floor.

Note 1: Future occupancy rates are calculated by reflecting existing tenants who have submitted a termination notice, and new tenants who have signed a lease agreement, as of May 31, 2024 (rounded to second decimal places).
Note 2: Percentage of the portfolio is calculated by dividing rentable area of each property by rentable area of KDXR properties as of May 1, 2024, rounded to the first decimal place.

44

Residential Properties (New Lease Rent Growth Map)
New Lease Rent Growth Map (Apr. 2024 FP)
Kansai Area (19 props.)
Other Kansai Area
(11 props.)

Osaka (8 props.)

Nagoya (4 props.)

Sapporo (4 props.)

5.9%
4.2%

2.9%
1.1%

0.3%

2023年
Jan. 2023年
Jul. 2023年
Apr.
Oct. 2024年

2023年
Oct. 2024年
Jan. 2023年
Jul. 2023年
Apr.

2023
1月期

2023
1月期

2024
2023 4月期
10月期(3 months)

2023
7月期

2023 4月期
2024
10月期(3 months)-2.0% -2.6% -2.7%
-2.9%
2023年
Oct. 2024年
Jan. 2023年
Jul. 2023年
Apr.
2023 4月期
1月期
2023 7月期
2023 10月期
2024

Sapporo
+2.0%

2023
1月期

-3.9%
2023年
Oct. 2024年
Jan. 2023年
Jul. 2023年
Apr.
2023 2024
1月期
7月期 10月期
4月期
2023
2023

KansaiArea+1.6%

Fukuoka+5.4%(3 months)

Hiroshima▲3.9%
Fukuoka (6 props.)
6.5%

2023年
Jul.

1月期
2023

7月期
2023

2023年
Oct.

2.6%

Tokyo
Metropolitan
Area
+4.1%

Nagoya
▲2.7%

1.1%

2024年
Apr.

0.9%

1.4%

2023年
Oct. 2024年
Jan. 2023年
Jul. 2023年
Apr.

2023
1月期

2023
7月期

8 central wards of Tokyo(44 props.)

2023 4月期
2024
10月期(3 months)

Other Tokyo Metropolitan
Area (51 props.)

5.4%

2023 2024
10月期
4月期(3 months)

2023 2024
10月期
4月期(3 months)

Tokyo Metropolitan Area (95 props.)

1.2%

2023年
Jan.

2.0%

Sendai (3 props.)

0.0%-0.9% -1.5%

2023
7月期

(3 months)

Sendai
+1.4%

4.1%

4.5%

2023年
Oct. 2024年
Jan. 2023年
Jul. 2023年
Apr.

Hiroshima (1 prop.)

4.1%

3.2%

0.2%

-0.6%
2023
7月期

3.8%

2.6%

1.9%

2.2%

3.8%

5.3%
2.6%

3.7%

4.5%

Jan. 2023年
Jul. 2023年
Apr.
Oct. 2024年
2023年

Oct. 2024年
Jan. 2023年
Jul. 2023年
Apr.
2023年

2023
1月期

2023
1月期

2023
7月期

2024
2023 4月期
10月期(3 months)

Note: Numbers are calculated for residential properties with pass through lease contracts (excluding wholesale lease contracts) held in Apr. 2024 FP

2023
7月期

2023 4月期
2024
10月期(3 months)

45

Residential Properties (Demographics of Tokyo Metropolitan Area)
Net Population Inflow into Tokyo Metropolitan Area (1)Migration Pattern
YTD from Jan. 2024 to Apr. 2024

(Thousands people)

2020
2021
2022
2023
2024
*Population inflow from Jan. to Apr. of each year

Population inflow
61,942 peopleTokyo

59,901

120
109
99

97

100

83
80

Tokyo

75

Adjacent
3 prefectures

2,041人Population inflow
46,878 people

60

48,919

49
44

42
40

YTD from Jan. 2023 to Apr. 2023

28
20

Kanagawa
Chiba
Saitama

Other Regional
Areas

13

2324 2223
20
14
11 111113

78

11 9 11

その他東京都神奈川
Other Tokyo Kanagawa

千葉
Chiba

Tokyo

57,0450
東京23区
23 wards

Population inflow
54,919 people

1416131313

埼玉
Saitama

Tokyo
東京経済圏
MetropolitanArea2,126人Population inflow
44,319 people

Kanagawa
Chiba
Saitama

Other Regional
Areas

42,193

Source: Created by KFM based on the Statistics Bureau, Ministry of Internal Affairs and Communications "Basic Resident Register Population Migration Report Monthly Report“
Note: YTD from Jan. to Apr. for each year46

Retail Facilities (Macro Environment)
Shopping Centers for Daily Needs are

Changing Retail Facilities

Highly Resistant to E-commerce

Retail market trends in Japan
2002=100

Food and beverage retail

飲食料品小売業
百貨店
Department store

130

Frequency of Supermarket Uses
Almost every day
About 1 time per week

GMS

総合スーパー（GMS）
小売業全体
All retails

120

2.4
8.5

110

32.2

100.0

4~5 times per week
1 time or more per month

35.7

60

0.0

00
2002年
2002 2004年
2004 2006年
2006 2008年2008 2010年
2010 2012年
2012 2014年
2014 2016年
2016 2018年
2018 2020年
2020 2022年
2022

Average Number ofUses per Week (times)

Source: "Retail Statistics", Ministry of Economy, Trade and Industry

38.8

14.8
6.3

50

100
90
80

2.5

9.6
11.4 10.4

15.3

1.2 0.8
3.5
4.4

1.2 1.0
3.8 2.6

18.6

15.6

21.4

13.4

0.7 1.1 1.3
4.3 4.3 3.1

1.2
2.5

14.6 15.3 14.5 14.5

0.9
2.4

1.1
1.8

11.9 11.1

0.2
4.2
12.9

0.7
3.7

0.7
2.8

7.4

8.7

0.9
1.6
8.3

2023

2.35

2.10

2.36

2.64

0.5
2.9
8.4

0.2
2.2
8.6

50

20%

69.5

69.0

79.5 83.1 80.4 79.3 81.0 81.8

84.9 86.1 82.7 88.3 87.8

89.3 88.1 89.0

4030
2005年度
2007年度
2009年度
2011年度
2013年度
2021年度
2023年度
2005
2007
2009
2011
2013 2015年度
2015 2017年度
2017 2019年度
2019
2021
2023

Source: Ministry of Economy, Trade and Industry

40%

60%

Books, video/music software
書籍、映像・音楽ソフト

80%

100%

52.2%

Home appliances, AV equipment, PCs
生活家電、AV機器、PC・周辺…
and peripherals, etc

42.0%
29.6%

衣類・服装雑貨等
Clothing
and accessories, etc.

73.4

88.2%

12.9
11.4

2017

Householdgoods, Furniture, interior
生活雑貨、家具、インテリア

76.7

40.8

13.0
4.7
2021

0%

70

73.0

46.2

Foods, etc. with relatively low e-commerce penetration

13.8 18.8

0

23.1

Source: 2024 Supermarket White Paper by the National Supermarket Association of Japan

Retail property opening applications by property size
2.7

26.7

11.0
3.9
2020

2~30,000m2 ■ Over 30,000m
2
5,000㎡以下
5,000㎡超10,000㎡以下
10,000㎡超30,000㎡以下
30,000㎡超■5.000m2 or less
■ 5,000m2~10,000m2 ■ 10,000m

3.8

1.7
10.1

28.7

90

70

0.7
8.8

4.2
13.6

100

80

2~3 times per week
Other

21.6%

Cosmetics 化粧品、医薬品
and pharmaceuticals

8.2%

食品、飲料、酒類
Foods, beverages,
alcohol

4.2%

Cars, motorcycles, parts, etc.
自動車、自動二輪車、パーツ等

4.0%

Othersその他

1.9%

Source: FY2022 E-Commerce Market Survey by the Ministry of Economy, Trade and Industry

47

Hotels (Macro Environment)
Number of Inbound Tourists by years(Thousands people)

Number of Departing Japanese by years（Thousands people）

アジア方面
ヨーロッパ・アフリカ方面■Asiancountries■ Europe and Africa ■アメリカ方面
America

35,00025,00030,00020,00025,00020,00015,00015,00010,00010,000

5,000

5,000

0

0
2017

2018

2019

2020

2021

2022

Source: Japan National Tourism Organization（JNTO）

All
Korea
China
Hong Kong韓国
America 台湾
全体
中国

2018

2019

2020

2021

2022

2023

Source: Japan National Tourism Organization（JNTO）

Number of Inbound Tourists（Compared to same month in 2018）
250%
350%

2017

2023

Taiwan
香港 Australia
米国

豪州

Number of Guests Nationwide in Japan（Thousands people）
70,0002019

2023-2024

60,000200%

50,000150%

40,00030,000100%

20,00050%
10,0000%0

11月 2月
2 3月
3 4月
4 5月
5 6月
6 7月
7 8月
8 9月
9 10月
10 11月
11 12月
12 1月
1 2月
2 3月
3 4月
4
2023

Source: Japan National Tourism Organization（JNTO）

2024

5

6

7

8

9

2023

10

11

12

1

2

3

4

2024

Source: Ministry of Land, Infrastructure, Transport and Tourism, Japan Tourism Agency

48

Logistic Facilities (Macro Environment)
Supply-Demand Balance and Vacancy Rates Nationwide(m2)
8,000,000

Supply（left axis）

Demand（left axis）

7,610,212㎡

Vacancy Rate（right axis）

6,000,000

(%)
20.0

15.0
5,360,802㎡

4,000,000

10.0
8.1%

2,000,000

5.0

0

0.0
2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Source: Created by KFM based on the material published by Japan Logistics Field Institute, Inc.

E-Commerce Market Size and Penetration Rate(bn yen)

3PL Business Sales Trend(bn yen)E-commerce Market Size in Japan (left axis)
E-commerce Penetration Rate in Japan (right axis)
E-commerce Penetration Rate in the US (right axis)
E-commerce Penetration Rate in the UK (right axis)

16,000.0

40%

5,000

4,166

12,000.0

26.6% 30%

8,000.0

20%

4,000

3,000

14.6%
4,000.0

2,000
10%

1,000

9.1%
0.0

0%
2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Source: Compiled by the Asset Management Company based on data published by the Ministry of
Economy, Trade and Industry, Office for National Statistics（UK）, U.S. Census Bureau（US）

0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Source: Compiled by KFM based on “Monthly Logistics Business Sep. 2023”

49

Healthcare Facilities (Lease Agreements)
No.

Operator（1,2）

Property Name

F1001
F1002
F1003
F1004
F1005
F1006
F1007
F1007
F1008
F1009
F1010
F1011
F1012
F1013
F1014
F1015
F2001
F2002
F2003
F2004
F2005
F2006

Joy Stage Hachioji
Nichii Home Tama Plaza
Nichii Home Nakano Minamidai
Yuimaru Hijirigaoka
Irise Kamata/Yuseien
Plaisant Grand Ota Tamagawa
Tsukui Sunshine Machida (West)
Tsukui Sunshine Machida (East)
Serabi Ebisu
SOMPO care Sompo no ie S Fujimino
SOMPO Care LAVIERE Residence Kawasaki Shimmachi
Tsukui Sunshine Adachi
SOMPO Care LAVIERE Ichinoe
Nichii Home Hachimanyama
Sunny Life Tachikawa
Rehabili-home Bon Sejour Minamisenzoku
Activa Biwa
Ten
SOMPO Care LAVIERE Kobe Tarumi
Izarie Eniwa Building（7）Gran Hills Ogawarako
Rehabili-home Granda Mondo Yakujin

NM LIFE Co., Ltd.
Nichii Carepalace Company
Nichii Carepalace Company
Community Net Inc.
HITOWA Care Service Co., Ltd.
Care 21 Corporation
Tsukui Corporation
Tsukui Corporation
Solasto Corporation
Sompo Care Inc.
Sompo Care Inc.
Tsukui Corporation
Sompo Care Inc.
Nichii Carepalace Company
Kawashima Corporation
Benesse Style Care Co., Ltd.
HIMEDIC Inc.
NOTE Social Welfare Corporation
Sompo Care Inc.
HITOWA Care Service Co., Ltd.
Silver Town Ltd.
Benesse Style Care Co., Ltd.

F2007

Sawayaka Sakura Nibankan

Sawayaka Club Co., Ltd.

F2008
F2009
F2010
F2011
F2012
F2013
F2014
F2015
F2016
F2017
F2018
F2019
F2020
F2021
F2022
F2023
F2024

Excellent Nishinomiya
Irise Nishioka
Excellent Kitano
Anesis Teradacho
Orage Suma
Rococo-riha
Canadian Hill
Anesis Hyogo
Arute Ishiyagawa
Medical-home Granda Kurakuen
Rehabili-home Granda Kobe Kitano
Excellent Hanayashiki Garden Hills
Irise Kobe Rokko
Excellent Takarazuka Garden Hills
Lifeship Oasa
Lifeship Yunokawa
Lifeship Fukagawa

Excellent Care System Co., Ltd.
HITOWA Care Service Co., Ltd.
Excellent Care System Co., Ltd.
Souseikai Medical Corporation
Souseikai Medical Corporation
Souseikai Medical Corporation
Souseikai Medical Corporation
Souseikai Medical Corporation
Souseikai Medical Corporation
Benesse Style Care Co., Ltd.
Benesse Style Care Co., Ltd.
Excellent Care System Co., Ltd.
HITOWA Care Service Co., Ltd.
Excellent Care System Co., Ltd.
Life Design co., ltd.
Life Design co., ltd.
Life Design co., ltd.

Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Listed on the TSE Standard Market
Unlisted
Unlisted
Listed on the TSE Prime Market
Consolidated subsidiary of Sompo Holdings, Inc. listed on the TSE Prime Market
Consolidated subsidiary of Sompo Holdings, Inc. listed on the TSE Prime Market
Unlisted
Consolidated subsidiary of Sompo Holdings, Inc. listed on the TSE Prime Market
Unlisted
Unlisted company
Consolidated subsidiary of Benesse Holdings, Inc. listed on the TSE Prime Market
Consolidated subsidiary of Resorttrust, Inc. listed on the TSE Prime Market
Unlisted
Consolidated subsidiary of Sompo Holdings, Inc. listed on the TSE Prime Market
Unlisted
Unlisted
Consolidated subsidiary of Benesse Holdings, Inc. listed on the TSE Prime Market
Consolidated subsidiary of UCHIYAMA HOLDINGS Co., Ltd. listed on the TSE
Standard Market
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Consolidated subsidiary of Benesse Holdings, Inc. listed on the TSE Prime Market
Consolidated subsidiary of Benesse Holdings, Inc. listed on the TSE Prime Market
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted company
Unlisted company

Note 1: In the case there are multiple tenants in each facility, status is referred based on lease agreements with operators which are main tenants.
Note 2: Types of lease agreements are all ordinary lease agreements excluding “Gran Hills Ogawarako,” “Arute Ishiyagawa,” “Lifeship Oasa,” “Lifeship Yunokawa,” and“Lifeship Fukagawa.” Fixed-term lease agreement is valid for these five facilities.
Note 3: “Remaining Term” is calculated from Apr. 30, 2024 to the termination date of agreements with operators.
Note 4: As a rule, no revision is allowed in term of agreements. Discussion is allowed every two years about increase in rent by inflation and rising interest rates.
Note 5: As a rule, no revision is allowed in term of agreements. Discussion is allowed every three years in the case conditions are highly unreasonable because of thechanges of economic climate but if the discussion is failed, tenants are needed to pay current rent.
Note 6: As a rule, no revision is allowed in term of agreements, Discussion is allowed in the case conditions are highly unreasonable because of the changes of
economic climate.
Note 7: Contents of lease agreements about “Irise Eniwa” occupying from 4F to 6F of “Izarie Eniwa Building.”
Note 8: As a rule, no revision is allowed in term of agreements. Discussion is allowed every three years in the case conditions are highly unreasonable because of thechanges of economic climate and invested by the lessor to add to the real estate (including repair and extra renovation).

Not allowed（4）Every 3 years
Every 3 years
Not allowed（5）Every 5 years
Not allowed（6）Every 5 years
Every 5 years
Every 3 years
Every 5 years
Every 5 years
Every 5 years
Not allowed（6）Every 5 years
Not allowed（6）Every 5 years
Every 3 years
Not allowed（5）Not allowed（6）Not allowed（4）Every 3 years
Not allowed（6）Next
Revision
Date2027/9/1
2025/4/1
2027/7/1
2027/4/1
2025/6/1
2025/5/1
2025/9/1
2025/9/1
2026/2/1
2028/5/1
2027/2/1
2027/1/29
2026/11/12-

8.9

Not allowed（4）

-

10.4
20
11.3
11.9
11.9
11.9
11.9
11.9
24.3
26.5
21.9
13
22.7
17.1
15.5
15.5
15.4
Average
15.4

Not allowed（8）Not allowed（4）Not allowed（8）Every 5 years
Every 5 years
Every 5 years
Every 5 years
Every 5 years
Every 5 years
Not allowed（6）Not allowed（6）Every 3 years
Every 10 years
Every 3 years
Not allowed
Not allowed
Not allowed

2026/12/31
2026/12/31
2026/12/31
2026/12/31
2026/12/31
2026/12/31
2026/4/28
2027/2/1
2024/6/30-

Nursing Care
Nursing Care
Nursing Care
Residential
Nursing Care
Nursing Care
Nursing Care
Nursing Care
Nursing Care
Serviced
Serviced
Nursing Care
Nursing Care
Nursing Care
Nursing Care
Nursing Care
Nursing Care
Nursing Care
Nursing Care
Nursing Care
Serviced
Residential

Remaining
Term (3）
(yrs)
11.7
8.2
2.9
40.6
18.1
13.7
17.9
20
23.3
13.6
13.6
6.7
15.4
23.9
23.8
17.7
3.3
13.8
6
20.9
5.5
13.2

Nursing Care
Nursing Care
Residential
Residential
Nursing and HealthNursing and HealthNursing and HealthNursing and HealthNursing and HealthNursing Care
Nursing Care
Nursing Care
Nursing Care
Nursing Care
Nursing Care
Serviced
Serviced
Serviced

Facility Type

Revision Period

Rent Renewal Timing
2024

2025

Oct.

Apr.
・F1003・F2021

2026
Oct.
Apr.
・F1008・F1011・F1007(East) ・F2019
・F1009・F1010

2027
Oct.

Apr.

2028
Oct.

・F2005・F2016 ・F1005
・F2011・F2001 ・F1002
・F2012・F1015
・F2013・F2020
・F2014・F1007
・F2015 (west)

Apr.

50

Unitholders (Fiscal Period Ended Apr. 2024)
Ownership Ratio by Investor TypeTop 10 Unitholders

Former KDO

Oct. 2023

3.5%

58.5%

5.9%

Name

32.1%

KDXR

Apr. 2024

6.8%

56.0%

5.0%

Number of Unitholders by Investor Type
（Person）

Ratio (1)Custody Bank of Japan, Ltd. (Trust Acct.)

960,464

23.54%The Master Trust Bank of Japan, Ltd.

655,644

16.07%The Nomura Trust and Banking Co., Ltd.
(Investment Trust Acct.)

192,358

4.71%

Kenedix, Inc

139,257

3.41%

STATE STREET BANK WEST CLIENT -TREATY
50523499,857

2.44%

SSBTC Client Omnibus Account83,036

2.03%

75,550

1.85%

32.2%

Individuals and others
Financial institutions (including securities companies)
Other domestic companies
Foreign companies and individuals

FormerKDO

Number ofUnits Held

KDXR

Oct. 2023

Apr. 2024

4,707

24,395City / Trust Banks

6

11

THE NOMURA TRUST AND BANKING CO., LTD. AS
THE TRUSTEE OF REPURCHASE AGREEMENT
MOTHER FUND

Regional Banks

31

38

State Street Bank and Trust Company 505103

48,795

1.19%

57

113
JAPAN SECURITIES FINANCE CO., LTD.

44,340

1.08%

28

35

Total

122

197

BNYM AS AGT/CLTS 10 PERCENT

36,122

0.88%

Other Domestic Companies

102

532

Foreign Investors

351

631

2,335,423

57.25%

Total

5,282

25,755

Individuals and others

Financial Inst.
(incl. securities
firms)

Shinkin Banks andOthersLife / Nonlife,
Securities

Note: Ratio refers to the percentage for total units owned to total units issued and rounded down to second decimal place.

Total

51

Sponsors
SMFL MIRAI Partners, Balance of Real Estate

Strengthened Support from Sponsors
70% owned through groupcompany

Residential &others13%

Establishment of a strategic partnership structure
through capital and business allianceBusiness synergy
Strengthening REIT and Private Placement
Fund Businesses

Supplementation of Creditworthiness andEnhancement of Fund Raising Capacity

Expansion of new business domains

Sharing Know-how on SDGs Management

Strengthening Competitiveness by Sharing Experience, Knowledge, and Know-how through Mutual
Exchange of Human Resources

Hotel
12%

Factory
6%
Retailproperty
29%

SMFL MIRAI Partners
Company, Limited (1)Balance of assets held
Approximately

1,360.8
bn yen（As of Mar. 2024)

Logistics
14%

Officebuilding
25%

Note: SMFL MIRAI Partners Company, Limited is a wholly-owned subsidiary of Sumitomo Mitsui Finance andLeasing Company, Limited.

Broad Support by Sponsors and Alliance Companies
Asset Management
Property Management

KDX Realty Investment Corporation

Kenedix Real Estate Fund Management, Inc.

Conclusion of Alliance Agreement
As of Oct. 6, 2021, entered into an alliance agreement among 3
companies: Sumitomo Mitsui Finance and Leasing Co., Ltd. (“SMFL”),
SMFL MIRAI Partners Co., Ltd. (“FLMP”), and Kenedix Real Estate
Mid-sized office Fund Management, Inc. (KFM).

Pipeline Support
Warehousing
Leasing
Property Management

Financing Functions
for Bridge Funds

Property
Management

Overview of the Alliance Agreement

Evaluation/
プロパティマネジメント業務
Advisory on Operation

Environmentally Friendly Technologies / Knowhow• Provision of environmentally-friendly technology and knowhow

Right to Use Trademarks

Kenedix Investment
Partners, Inc.

• Other necessary support including cooperation in securing human
Alliance Company:Sumitomo Mitsui Finance and Leasing
Co., Ltd.
Kenedix, Inc.

: KFM’s parent companies• Acquisition support through warehousing support by FLMP
• Financing for warehousing SPCs by SMFL

Personnel Support

Sponsors / Companies
Providing Property Support• Pipeline support to KFM

Other Alliance Companies

P&D Consulting Co., Ltd. JINUSHI Co., Ltd.

resources and provision of training

JYUKYO Holdings Co., Ltd.

SMFL MIRAI Partners Co., Ltd.

52

GovernanceIntroduction of ESG Performance-linked fee•

Introduced ESG performance-linked fee addition to investment unit

Investment Unit Ownership by Sponsor(same boat investment)•

performance fee

Asset Management
Fee I

Asset Management
Fee II

Investment Unit
Performance Fee

Total assets at the endof the previous FPx
0.12％ (annual rate)

Distributable amount*x
EPU*x
0.002％(*after deducting gainon sale)Total assetsx
1 + Excess return on
investment units of
KDXR(1)x0.001%

Kenedix, Inc., the sponsor, holds a total of

Shareholding ratio

139,257 units of KDXR investment units to

3.4%

align its interests with our unitholders

As of Apr. 30, 2024

Board Enhancement and Diversity Promotion•

Additional supervisory director was appointed to strengthen the Board.
Promoting a diverse board composition by increasing the ratio of
female directors to 40%•

Yamanaka has served as a director of J-REITs in the past•

In addition, we have appointed those who have expertise in legal
affairs, accounting and taxation, medical administration
Board Composition

ESG Performance-Linked Fee(2)Title• Total assets x 0.004％ x Factor determined based on the tablebelow (rounded down to the nearest one yen)
GRESB
Real Estate
Assessment

1 starMultiplying Factor

0.8

2 stars
0.9

3 stars
1.0

4 stars
1.1

5 stars
1.2

Name

Executive
Hiroaki Momoi
Director
Supervisory
Akiko Tokuma
Director
Supervisory
Osamu
Director
Utsunomiya
Supervisory
Akiko Yamakawa
Director
Supervisory
SatoruDirector
Yamanaka

Note 1: Excess return against TSE REIT Total Return Index (including dividends).
Note 2: Determined based on the result of GRESB Real Estate Assessment on the settlement date of the immediately preceding FP.

GenderMale

Ratio of female
board directors

Female40%

Male

Number ofsupervisory
directors

FemaleMale

4(highest among J-REITs)

53

Priorities of Property Consideration

Mid-sized Offices

1st

2nd

OfficeOther Offices

Residential

Healthcare

2nd

1st

Residential

1st

2nd

Healthcare

1st-Retail

1st

2nd

Criteria for “Mid-sized”
Location

Floor area perbuilding

Tokyo 23 wards

2,000 m2 or more and13,000 m2 or lessOutside Tokyo 23
wards

3,000 m2 or more and20,000 m2 or less

Criteria for Property TypeStore with thelargest floor area

RetailService

1stHotels

2nd

1st

Logistics

1st

2nd

Hotel

Logistics

2nd

RetailStore selling goods
and products

Service

Store providing services

5455