Kenedix Office Investment Corporation
Presentation of Financial Results for the Fiscal Period Ended October 31, 2022
Conference Call (Q&A Session)(Held on December 15, 2022)
Q&A Session Summary
Q1. Please share your thoughts about the leasing environment, including your level of confidence withrespect to capturing re-tenanting demand for KDX Kawasaki-Ekimae Hon-cho Building after thetenant who occupied the whole building moved out.
A1. As shown in page 13 of the presentation material, the turnover ratio, which temporarily rose to 4.1%
in the fiscal period ended October 31, 2022, is expected to decline to 3.7% in the fiscal period ending
April 30, 2023 (including approximately 1% attributable to the move-out at KDX Kawasaki-Ekimae
Hon-cho Building). Given the fact that more than 70% of tenants moved in for the purpose of floor
expansion during the period ended October 31, 2022, we think that the occupancy rate will bemaintained, if we continue to capture brisk demand for floor expansion among small and medium
enterprises. As shown specifically by the examples on page 18, Higashi-Kayabacho Yuraku Building
and KDX Chofu Building, which were the leasing focus properties for the fiscal period ended
October 31, 2022, among other buildings, reflect the results that we achieved. With respect to KDX
Kawasaki-Ekimae Hon-cho Building, all of which will be vacant, we will work on a range ofmeasures that contribute to the enhancement of unitholders’ value, such as conducting flexible
leasing activities while also paying attention to the conditions of the surrounding area.
Q2. Looking at the expected balance of utility expenses for the fiscal period ending October 31, 2023, is itcorrect to understand that you are assuming that progress will be made to some extent in theimplementation of electricity pass-through (switching to a cost-linked billing method) to tenants?
A2. If things go as expected, we are assuming that the pass-through will be applied to most tenants at theend of the fiscal period ending October 31, 2023.
Q3. Will you continue to consider acquiring own investment units going forward, if you have cash onhand? Please share your thoughts from the perspectives of the current investment unit prices, the ratio
of investment unit price to NAV per unit (P/NAV), and the environment surrounding propertytransactions.
A3. The current P/NAV is approximately 0.8 times, which we consider a low level. When asset
reshuffling going forward, there may be cases where sellouts take place first. We will allocate cash on
hand obtained from sellouts for the acquisition of properties if properties that satisfy our conditions
are available. Having said that, given the continuing difficult environment for property acquisitions,
we will work on initiatives that lead to enhancing unitholders’ value, such as the acquisition of own

investment units, depending on the level of investment unit prices, among other factors.
Q4. What are your assumptions with respect to future trends in differences between contracted area-based
occupancy rate and actual occupancy rates excluding free rent areas?
A4. If move-outs remain around 4%, we expect that the differences will continue to be at the same level
as the fiscal period ended October 31, 2022. What is important for the time being is to maintain ahigh level of contract-based occupancy rates while simultaneously paying attention to the large
quantity of office floors expected to be available in 2023. With this in mind, we are hoping tomaintain the current level of 97 to 98%.
Q5. You assume that the move-out rate will decrease slightly in the fiscal period ending April 30, 2023.
Does this reflect any changes such as the prolonged lead time for contracts in leasing-related
activities?
A5. We don’t feel that the lead time is getting longer. Vacancies in some properties are filled promptly due
mainly to floor expansion in the building, while other properties require a certain amount of time.
This is the same as before.
Q6. In conjunction with the balance of reserve of reduction entry, you have said that you will use theportion provided in the fiscal period ended April 30, 2021 and thereafter to maintain a stable
distribution per unit (DPU) for the time being. If there is any change in your stance, please share it.
A6. There is no change in our stance. We may however consider changing our stance in the future if wefeel certain about robustness in internal or external growth and succeed in raising profit levels.
Q7. What is the background behind free rent periods getting shorter in the five central wards of Tokyo andother regional areas?
A7. During the fiscal period ended October 31, 2022, free rent periods in the five central wards and otherregional areas became shorter while those in other Tokyo metropolitan area grew longer. Despite that,
we don’t think any changes occurred to the business environment compared to the previous period. If
a move-out takes place in a property that is relatively easy to lease, a contract is reached even without
providing a long rent-free period. Otherwise, a rather long period is provided. There is no change inthis trend. The results for the current fiscal period reflect the average periods provided.
Q8. Regarding electricity charges, what is the level of increase you are assuming?
A8. It is pretty difficult to forecast future electricity rates. Given a range of uncertain factors such as
higher rates set by power companies and an increase in fuel adjustment fees due to higher energy
costs, our stance is to make estimates that are neither too optimistic nor too conservative.