0Table of contents
Section 1 Impact of COVID-19,
management highlights and future initiatives

P. 2

Section 2 30th fiscal period (2020/4) results,
31st fiscal period (2020/10) earning forecasts and32nd fiscal period (2021/4) earning forecasts

P. 8

Section 3 Portfolio overview

P. 11

Section 4 External growthP. 14

Section 5 Internal growthP. 16

Section 6 Financial strategy

P. 24

1

Section 1
Impact of COVID-19,
management highlights and future initiatives

2

Impact of COVID-19
Requests for rent reduction or exemption from tenants• A certain number of tenants have requested rent reduction or exemption/deferral due to revenue decline, etc. caused by the spread of COVID-19
Dining10.5%

Requests from
131 tenants(11.9%) (Note 1)
End of 30th
fiscal period(2020/4)

1,142 tenantsServiceprovider10.5%
Office54.1%

Type of tenants
requesting rent
reduction or
exemption (Note 2)

Gym
2.0%

School
8.1%

Clinic
6.8%
Retailstore
Rental
5.8%
conference
room
2.3%

Note 1: The ratio is based on contracted rents up to May 31, 2020
Note 2: The ratio is based on contracted rents classified and aggregated according to actual usage, etc.
under the judgment of the Asset Management Company• Understand the financial condition of tenants as much as possible
KDO’s
response
policy• Negotiate on the condition of recovering the amount equivalent torent reduction or exemption after a certain period of time if it isreasonably determined in consideration of property
competitiveness and lost revenues during the vacancy period

Effects on leasing activities• Expect restrained preliminary inspection, suspension of transfer/floor
increase plan, slowdown of leasing, and/or increase in candidates fortenancy requesting for easing conditions, such as free rent
KDO’s
response
policy• It is necessary to respond to negotiations on certain conditions,however, KDO does not expect drastic deterioration in supply anddemand and will not make excessive easing of the rental terms

Infection prevention measures• Raise awareness about safety measures andput antiseptic solution at all properties toprevent the spread of COVID-19 through tenant
employees and visitors within the building• In order to ensure the employees’ health andthe business continuity, the Asset Management
Company had all employees working at homein principle from April 6, 2020
• Continue the operation to keep the attendance
rate at around 50% in principle after the state of
emergency is lifted (as of the date of thisdocument)

Changes in office needs
The expansion of telework has led to a shift to flexible working styles thatare not tied to location or time, even before the spread of COVID-19

The spread of COVID-19 has accelerated the change and diversificationof working styles and locations

The working environment becomes an important factor attracting people
and influences corporate competitiveness itself

It is important to accurately understand the changes in functions required for
office buildings amid the diversifying ways of working and to invest
appropriately in response330th fiscal period (2020/4) management highlights
and future initiatives

AUM

432.8

bn
yen

Acquired two properties through the AssetManagement Company’s unique network

99.3%

Officebuilding ratio

Limited direct impact of COVID-19

Interest-bearing
debt averageinterest rate

0.97%

Reduced financial cost through refinancing



Future initiatives

Occupancy
rate

99.5%

Maintained high occupancy rate backed by thetight office market# of tenants

1,142

Portfolio with advanced tenant diversification
without focusing on specific industries

LTV

42.9%

Maintained stable financial base by keeping
LTV at a conservative level

Increase inmonthly rent
upon rent revisionyen
14.0 mn

Higher than in the previous fiscal period owing
to early upward rent negotiations

The balance ofreservefor reduction entryyen
2.77 bn

Utilize to stabilize dividends in anticipation of
temporary revenue decline

Percentage of total
floor area of green
certified properties

54.2%

Acquired Certification for CASBEE for Real
Estate for six properties

Aim for sustainable growth through asset reshuffle and exploring quality property acquisition opportunities
while keeping eyes on the real estate trading market
Pay attention to changes in office needs with a focus on “With COVID-19” and “After COVID-19,” and make an
management to meet the needs of a new era
Maintain stable financial base while taking into account liquidity on hand
Aim for compatibility between sustainable growth and social responsibility through continuous initiatives for
improving sustainability
4

Dividend and reserve for reduction entry

Dividend significantly exceeded the forecast in 30th fiscal period buoyed by property acquisition,
extraordinary revenue, etc.
Expect dividend decrease in 32nd fiscal period due to large tenant move-out and temporary stagnation inleasing activities

DPU history (Note 1)(yen)

Principal factors for changes in expected DPU (Note 1)
Factor for increase

Annualized
5.1% growth(from 28th FP)

Existing
properties

14,412

14,500+3.6%

14,050Properties
acquiredin 30th FP

14,150386

Factor for decrease

Temporary
impact of
COVID-19

173

Large tenant
move-out fromKDX
Yokohama
Kannai Bldg.

Others

330

205

118

13,910

Review andreduce repair
Existing /maintenanceproperties
cost

148

140

Others223

13,639
Expected decline in revenue fromthe existing properties/ Review the repair planand reduce costs

Temporary impact of COVID-19

14,412• Record a certain amount of expected
revenue decline conservatively in responseto the requests for rent reduction or
exemption, etc.

14,500• Expect decrease in rent income from theexisting properties due to decline in actual
occupancy rate resulting from temporary
slowdown in leasing in 31st fiscal period• The amount equivalent to revenue decline is
expected to be recovered over a certain
period of time from the agreed payment dateas such amount is recovered in principle,
however, only agreed amount is recorded forthe purpose of the forecast
第29期
29th fiscal（19/10期）
period実績(2019/10)
ActualThe balance of reserve
for reduction entry (Note 2)

第30期
第30期
30th fiscal（20/4期）（20/4期）period当初予想(2020/4)実績
Forecast
Actual

2,775 mn yen(6,476 yen per unit)

第31期
第31期
31st fiscal（20/10期）（20/10期）
period
当初予想
今回予想(2020/10)
Previous Current
forecast
forecast

第32期
32nd
fiscal（21/4期）period
今回予想(2021/4)
Forecast

第30（20/4
30th fiscal
period期）(2020/4)

14,150• Raise profit levels by reviewing the repair
plan and reducing costs

第31（20/10
31st fiscal
period期）(2020/10)

Basic utilization policy of reserve for reduction entry• Response to one-time decrease in revenue due to exit of major tenants• Response to one-time decline in dividend resulted from investment for
future growth• Response to dilution of dividend due to a public offering during the
fiscal period

第32（21/4
32nd
fiscalperiod期）(2021/4)• If the impact of the spread of COVID-19 becomes more serious than
expected, and• If temporary rent reduction or exemption, etc. unlikely to be
recovered significantly increase

Consider using reserve for reduction entry

Note 1：Figures per unit are calculated based on the number of investment units issued and outstanding as of the end of each fiscal period. The same applies hereinafter
Note 2：Reserve for reduction entry is calculated by either adding provision of reserve for reduction entry or subtracting reversal of reserve for reduction entry stated on Basis for Calculating Cash Distribution for the relevant fiscal
periods to/from the balance of reserve for reduction entry on the balance sheet as of the end of the relevant fiscal periods

5Portfolio appraisal profit and NAV per unit
Appraisal profit expanded to 88.2 billion yen due to continuous asset reshuffle and an increase in appraisal value
Raised NAV per unit by 5.8% year over year

Changes in portfolio appraisal profit amount and ratio (Note 1)

Changes in NAV per unit (Note 2)• Both appraisal profit amount and ratio reached a record highsince listing at the end of 30th fiscal period (2020/4)(bn yen)

(%)

(yen)

1000
100.0

25.0

750,000

Appraisal profit amount (left axis)
含み損益額（左軸）
Appraisal profit ratio (right axis)
含み損益率（右軸）+5.8%727,000
719,000

21.1%
20.7%

700,000

900
90.0

687,000

20.0
17.6%
650,000

800
80.0
13.9%
700
70.0

15.0

11.9%

654,000
631,000

600,000
10.0
550,000

600
60.0
5.0

500
50.0

400
40.0

472

570

710

850

882

26th
fiscal第26期
period
（18/4期）(2018/4)

27th
fiscal第27期
period（18/10期）(2018/10)

28thfiscal第28期
period（19/4期）(2019/4)

29th
fiscal第29期
period（19/10期）(2019/10)

30thfiscal第30期
period（20/4期）(2020/4)

0.0

500,000

450,000

26th
fiscal第26期
period
（18/4期）(2018/4)

27th
fiscal第27期
period（18/10期）(2018/10)

28thfiscal第28期
period（19/4期）(2019/4)

29th
fiscal第29期
period（19/10期）(2019/10)

30thfiscal第30期
period（20/4期）(2020/4)

Note 1: Appraisal profit amount is calculated by subtracting book values from appraisal values for all properties owned as of the end of relevant fiscal periods
In addition, appraisal profit ratio is calculated by dividing appraisal profit amount by book value as of the end of relevant fiscal periods (rounded to the first decimal place)
Note 2: NAV per unit is truncated to the nearest thousand yen after subtracting the amount of DPU

6

Memo

7

Section 2
30th fiscal period (2020/4) results,
31st fiscal period (2020/10) earning forecasts and32nd fiscal period (2021/4) earning forecasts

8

Outline of 30th fiscal period (2020/4) financial results
Dividend increased by 773 yen in 30th fiscal period from the previous fiscal period driven byproperty acquisitions and internal growth
Considerably exceeded the forecast thanks to increase in extraordinary revenue
30th fiscal period (2020/4) actual
29th fiscal
period(2019/10)
Actual(mn yen)

30th fiscal
period(2020/4)
Forecast

30th fiscal
period(2020/4)
Actual30th (actual) 30th (actual)vsvs29th (actual) 30th (forecast)Difference
Difference(announced on
Dec. 13, 2019)

Comparison against 29th fiscal period (2019/10) actual
1 Increase in operating revenue+244 mn yen

Revenue contribution of the properties acquiredin 30th fiscal period+88 mn yen

Increase in revenue from existing properties+364 mn yen

A

B

C

C-A

C-B

Decrease in revenue from utility expense due toseasonal and other factors-208 mn yen

Operating revenue

15,027

15,191

15,272

1 +244

1+81

Increase in premium income+64 mn yen

Operating expense

8,199

8,262

8,132

2

2

-129

Decrease in operating revenue of
Senri LSC Bldg. Hall

-40 mn yen

Operating income

6,828

6,929

7,140

+311

+210

Ordinary income

5,845

5,961

6,177

+331

+215

Net income

5,844

5,960

6,175

+331

+215

DPU (yen)

13,63913,91014,412

+773

+502

-

-

-

-

-

-66

2 Decrease in operating expense-66 mn yen

Decrease in utility expense due toseasonal and other factors-182 mn yen

Increase in repair/maintenance expense+65 mn yen

Increase in depreciation+50 mn yen

Comparison against 30th fiscal period (2020/4) forecast
Provision (+)/reversal (-) ofreserve for reduction entry
Gain/loss on sale ofreal estate
Rental NOIInterest expense, etc.

-

-

-

-

-

10,287

10,463

10,676

+389

+213

966

952

946

-19

-5

1 Increase in operating revenue+81 mn yen

Revenue contribution of the properties acquiredin 30th fiscal period+88 mn yen

Decrease in revenue from utility expense due toseasonal and other factors-66 mn yen

Increase in premium income+75 mn yen

Decrease in operating revenue of
Senri LSC Bldg. Hall

-28 mn yen

2 Decrease in operating expense-129 mn yen

Decrease in utility expense due toseasonal and other factors-76 mn yen

Decrease in repair/maintenance expense-39 mn yen
931st (2020/10) and 32nd (2021/4) fiscal periods earnings forecasts
Despite decline in revenue due to requests for rent reduction or exemption, etc., expect operating revenue andnet income to increase in 31st fiscal period owing to revenue contribution of new and existing properties
Expect dividend to decrease in 32nd fiscal period affected by large tenant move-out
31st (2020/10) and 32nd (2021/4) fiscal periods forecasts(mn yen)

30th fiscal
period(2020/4)
Actual31st fiscal
period(2020/10)
Forecast

A

B

C

B-A

Operating revenue

15,272

15,631

15,350

1 +3581

Operating expense

8,132

8,446

8,334

2 +3132

Operating income

7,140

7,184

7,017

+44

-167

Ordinary income

6,177

6,214

6,065

+37

-149

Increase in utility expense due toseasonal and other factors
Increase in taxes(an acquired property in 29th fiscal period, etc.)

Net income

6,175

6,213

6,063

+37

-149

Increase in depreciation+49 mn yen

DPU (yen)

14,412

14,50014,150+88-350

Increase in brokerage fees

+54 mn yen

-

-

-

-

-

Provision (+)/reversal (-) ofreserve for reduction entry
Gain/loss on sale ofreal estate
Rental NOI

32nd fiscal 31st (forecast) 32nd (forecast)periodvsvs(2021/4)
30th (actual) 31st (forecast)
Forecast
Difference
Difference

Comparison between 30th fiscal period (2020/4) actualand 31st fiscal period (2020/10) forecasts
1 Increase in operating revenue
Revenue contribution of the properties acquiredin 30th fiscal period+87 mn yen

Increase in revenue from existing properties+91 mn yen-280

Increase in revenue from utility expense due toseasonal and other factors+233 mn yen-112

Decrease in premium income

C-B

2 Increase in operating expense

-

-

-

-

10,676

10,784

10,652

+107

-132

946

953

935

+6

-17

+313 mn yen+150 mn yen+36 mn yen-280 mn yen

Decrease in revenue from existing properties-113 mn yen

Decrease in revenue from utility expense due toseasonal and other factors-147 mn yen

2 Decrease in operating expense
Interest expense, etc.

-78 mn yen

Comparison between 31st fiscal period (2020/10) forecasts
and 32nd fiscal period (2021/4) forecasts
1 Decrease in operating revenue-+358 mn yen-112 mn yen

Decrease in utility expense due toseasonal and other factors-92 mn yen

Decrease in repair/maintenance expense-59 mn yen

Increase in depreciation+37 mn yen

Decrease in brokerage fees

-24 mn yen

10Section 3
Portfolio overview

11Portfolio growth and changes in the number of properties
Closely follow the real estate trading market conditions while maintaining stable financial base
Aim for sustainable growth through asset reshuffle and exploring quality property acquisition opportunities
as a basic policy
Portfolio growth (based on total acquisition price) and the number of properties (Note 1) (Note 2)(# of properties)(bn yen)
オフィスビル（左軸）Office (left axis)
都市型商業施設（左軸）Centralurban retail (left axis)#ofproperties
物件数（右軸） (right axis)

600.0
6,000

住宅（左軸）
Residential (left axis)
その他（左軸）Other (left axis)

97

99

100

PO Fiscal period with public offering (PO)
公募増資を行った決算期

90
5,000
500.0
PO

4,000
400.0

PO

432.8
424.5

PO

80
70
60

PO

3,000
300.0

50
PO
PO

2,000
200.0

40

PO

31

30

PO

1,000
100.0

20
69.1

10
0

1st
第1期
fiscalperiod（05/10）

3rd
第3期
fiscalperiod（06/10）5th
第5期
fiscalperiod（07/10）7th
第7期
fiscalperiod（08/10）9th
第9期
fiscalperiod（09/10）11th
第11期
fiscalperiod（10/10）13th
第13期
fiscalperiod（11/10）15th
第15期
fiscalperiod（12/10）17th
第17期
fiscalperiod（13/10）19th
第19期
fiscalperiod（14/10）21st
第21期
fiscalperiod（15/10）23rd
第23期
fiscalperiod（16/10）25th
第25期
fiscalperiod（17/10）27th
第27期
fiscalperiod（18/10）

29th
30th
第29期
第30期
fiscalfiscalperiod （20/4）
period（19/10）(2005/10)(2006/10)(2007/10)(2008/10)(2009/10)(2010/10)(2011/10)(2012/10)(2013/10)(2014/10)(2015/10)(2016/10)(2017/10)(2018/10)(2019/10) (2020/4)0Note 1: The amount and the number of properties are shown as of the end of each fiscal period. Figures are truncated to the nearest 0.1 billion yen. Figures in this material are truncated to the nearest unit unless otherwise stated
Note 2: Classification by use of owned properties has been changed from 26th fiscal period (2018/4) due to changes in the management guideline on December 1, 2017. The same applies hereinafter

12

Portfolio diversification
Portfolio mainly consisted of mid-sized office buildings with advanced tenant diversification
Plan to maintain approx. 80% investment ratio in the Tokyo metropolitan area
Breakdown by asset type (Note 1)
Office Bldg.
(Other)15.7%(8 properties)

Breakdown by region (Note 2)
Other
0.6%
(1 property)

End of 30th
fiscal period(2020/4)
99 properties

Other regional areas
19.0%

Office Bldg.
(mid-sized)
83.6%(90 properties)

End of 30th
fiscal period(2020/4)
Other Tokyo
metropolitan area
29.4%

Office Bldg.

99.3%(98 properties)

Tokyo central
5 wards
51.5%

Tokyo metropolitan area

80.9%

Breakdown of the number of tenants by leased floor area (Note 3)
300 tsubo or More
7.4%
200 - less than
300 tsubo
5.7%

100 - less than
200 tsubo
21.7%

End of 30th
fiscal period(2020/4)# of Tenants:
1,209

Less than 100 tsubo
65.3%

Less than 200 tsubo

86.9%
Note 1: Portfolio breakdown by asset type based on acquisition price (truncated to the first decimal place)
Note 2: Portfolio breakdown by region based on acquisition price (truncated to the first decimal place)
Note 3: Based on the number of tenants in each office building. Tenants leasing more than one property are counted as 1 tenant for each building without aggregating by name-base13Section 4External growth14

Acquired Property in 30th fiscal period (2020/4)
Utilized the Asset Management Company's unique network to invest in properties selectively
focusing on location characteristics
Acquired mid-sized office buildings in the area with future demand growth potential and close totrain stations in central Tokyo
Tosabori Prime (Acquired on January 31, 2020)

KDX Kanda Ekimae Building (Note 3) (Acquired on February 7, 2020)• Excellent access to Umeda, which has experienced remarkable changes in recent years andNakanoshima, where regenerative medicine is planned to be established as an international hub• In the future, the Naniwasuji Line linking Umeda and Kansai International Airport is planned toopen in the neighborhood of the property• The entrance, common corridors and elevator halls were renovated on a large-scale basis in 2018

• Multiple lines are available and access to major stations in Tokyo is excellent• The rent level is relatively low, and mid-sized enterprises are concentrated in this area, where
the property is located• The property has excellent visibility in a location facing a large street, and is relatively
competitive because of its stately appearance due to glass-walled and black granite finish

Location

Location

Osaka, Osaka Completion date

Total floor area

8,307.73㎡

Acquisition price5,000 mn yen

NOI yield(estimate) (Note 1)
AccessOccupancy rate

October 1987

Chiyoda-ku, Tokyo Completion date
Occupancy rate

100.0%

Total floor area

2,543.00㎡(As of January 31, 2020)

5,100 mn yen

Acquisition price3,300 mn yen(As of January 1, 2020)

Appraisal NOI
4.5%
yield (Note 2)
Approximately 5 minutes on foot from Higobashi Station on the
Osaka MetroYotsubashi Line
Approximately 9 minutes on foot from Nakanoshima Station on the
Keihan Nakanoshima LineNOI yield(estimate) (Note 1)

3.4%

4.2%

(As of December 31, 2019)

Appraisal value(As of January 1, 2020)

AccessAppraisal value
Appraisal NOI
yield (Note 2)

February 1991
100.0%
3,510 mn yen
3.9%

Approximately 1 minute on foot from the Kanda Station on the JR
Yamanote Line and on the Tokyo Metro Ginza Line

Note 1: Calculated by dividing estimated NOI after excluding extraordinary factors calculated by the Asset Management Company for the year of acquisition by acquisition price (The figure is rounded to the first decimal place.
For yields, the same applies hereinafter)
Note 2: Calculated by dividing annualized net operating income (based on the direct capitalization method described in the appraisal report as of January 1, 2020) by acquisition priceNote 3: The name of the property to be changed as of the date of this document is listed.

15

Section 5Internal growth16Changes in occupancy and turnover ratio for office buildings
Occupancy rate is to decline due to temporary slowdown in backfilling caused by the spread of COVID-19
KDO does not expect drastic deterioration in supply and demand but expects stable operation with convergence tonormalOccupancy rate performance of office buildings (Note 1)
Occupancy rateduring fiscal period (estimate)Occupancy rate
稼働率（契約面積ベース）(contracted area based)

(%)
100.0
99.1

Actual occupancy rate
実質稼働率（FR面積控除後）(excl. free rent area)
99.5

99.2

99.1

99.5

31st
fiscal32nd fiscal
期中平均稼働率（想定）periodperiod
98.5%
98.0%

0.9%

1.1%

2.8%

1.9%

1.8%

98.2

98.6

97.3

97.3

31st 期中平均稼働定）
fiscal32nd fiscal
periodperiod97.7%

27th fiscal
period averageoccupancy rate
99.1%

28th fiscal
period averageoccupancy rate
99.1%

29th fiscal
period averageoccupancy rate
99.1%

6.3

(Excluding large tenant move-outs
with turnover ratio (annualized) of
0.7% or more)

4.4

Actual occupancy rateduring fiscal period (estimate)

95.0

6.9

6.7

4.3%

97.2

96.7

1.7% is to be affected bylarge tenant turnoverin KDX Yokohama
Kannai Building(%)

Average Turnover ratio(26th – 31st fisical period)

1.0%

98.0

Turnover ratio (annualized) ofoffice buildings (Note 2) (Note 3)

96.4%

3.3

3.2

30th fiscal
period averageoccupancy rate
99.4%

90.0
第26期
End
of 26th（18/4期）末fiscal period

第27期
End
of 27th（18/10期）末fiscal period

第28期
End
of 28th（19/4期）末fiscal period

第29期
End
of 29th（19/10期）末fiscal period

第30期
End
of 30th（20/4期）末fiscal period(2018/4)(2018/10)(2019/4)(2019/10)(2020/4)

第31期
End
of 31st（20/10期）末fiscal period(2020/10)
想定
Estimate

第26期
26th
fiscal（18/4期）period(2018/4)

第27期
27th
fiscal（18/10期）
period(2018/10)

第28期
28th
fiscal（19/4期）period(2019/4)

第29期
29th
fiscal（19/10期）
period

第30期
30th
fiscal（20/4期）period(2019/10)(2020/4)

第31期
31stfiscal（20/10期）
period(2020/10)
想定
Estimate

Note 1: Occupancy rate (contracted area based) is calculated by dividing contract based leased area by leasable area, and actual occupancy rate (excl. free rent area) is calculated by subtracting free rent area from leased area
then dividing that area by leasable area. The figures are rounded to the first decimal place. Average occupancy rate of office buildings during each fiscal period is a simple average of month-end occupancy rates of owned
office buildings during each period. The estimated average (actual) occupancy rate for 31st fiscal period (2020/10) and 32nd fiscal period (2021/4) is the figure that is used as part of the assumptions for the earnings
forecasts
Note 2: Turnover ratio is calculated and annualized as follows: (Total leased area of the end-tenants who cancelled their lease agreements during the six-months period from the beginning to the end of each period) / (Averageleasable area of all office buildings owned by KDO as of each month-end during the relevant period) x 2. Figures are rounded to the first decimal place
Note 3: Estimate for 31st fiscal period (2020/10) is based on the cancellation notice, etc. received by June 1, 202017

Trends in move-ins/outs and rent changes upon tenant turnover for office buildings
Decreased opportunities for rent increase through tenant reshuffle due to decrease in tenant move-out resulting
from tightened supply and demand for office buildings
No significant decrease has been seen in new rent levels, and aim to increase operating revenue after the
impact of the spread of COVID-19
Changes in main indicators of tenant move-ins/outs
Tenant move-in and move-out areas and the number of tenants (Note 1)
spaceleased
leased(tsubo)(tsubo)入居面積■Space( ) Number of move-in/out

Changes in monthly rent upon tenant turnover (Note 3)(mn yen)space
vacated(tsubo)
退去面積■Spacevacated(tsubo)
(49)

(45)
(31)

3,269

(45)

5,795

3,962

Total rent
increase

2,208

2,020

Total rent
decrease-2,184-2,428% of the numberofrent increase
テナント入替時のcontracts upon
賃料増加件数割合
tenant turnover(27)-3,097
(48)

3.5

(36)

(35)
-4,751-4,555(44)(47)

27th fiscal
第27期
period（18/10期）(2018/10)

28th fiscal
第28期
period（19/4期）(2019/4)

29th fiscal
第29期
period（19/10期）(2019/10)

Tokyo
Metropolitan area
(excluding Tokyo central
5 wards)

Other
regional areas

3.6

1.9

2.9

3.7

-1.0

-1.0

-1.0

-0.4

-0.8

第27期
27th
fiscal（18/10期）
period
第27期

第28期
28th
fiscal（19/4期）period
第28期

第29期
29th
fiscal（19/10末）
period
第29期

第30期
30th
fiscal（20/4末）period
第30期(2018/4)（18/4期）(2018/10)（18/10期）(2019/4)（19/4期）(2019/10)（19/10期）(2020/4)（20/4期）

70.0%

69.8%

82.1%

85.1%

72.7%

New unit rent
新規テナントの賃料単価
Previous unit rent
従前テナントの賃料単価

30th fiscal
第30期
period（20/4期）(2020/4)

3.3

2.7

2.2

1.9

2.5

1.7

0.9

1.7

1.0

13,612
26th fiscal
第26期
period
（18/4期）(2018/4)

16,61315,752
17,7781.4

2.8

21,453

18,213
14,692

2.4

21.5

Changes in unit rent upon tenant turnover (Note 4)

Free rent period (# of month) (Note 2)
Tokyo
Central 5 wards

12.1

第26期
26th
fiscal（18/4期）period
第26期(yen/tsubo)
26th fiscal
第26期
period
（18/4期）(2018/4)

5.5

14,35327th fiscal
第27期
period（18/10期）(2018/10)

15,14028th fiscal
第28期
period（19/4期）(2019/4)

15,13629th fiscal
第29期
period（19/10期）(2019/10)

30th fiscal
第30期
period（20/4期）(2020/4)

Note 1: The number of tenants and leased area are calculated based on floor. In case that an end-tenant move-out from/move-in to multiple floors, the number is counted by floor
Note 2: Free rent period refers to a period from the start date of contract until the start date of contracted full rent. Figures are expressed as a simple average in terms of month by dividing by 30 days (rounded to the firstdecimal place). The analysis is based on office floors on the 2nd floor or above and excludes buildings that were newly acquired during the relevant fiscal periods
Note 3: Total amount of increases/decreases in monthly rent before and after tenant turnover for each fiscal period is respectively aggregated for the spaces where the rents paid by new tenants and by previous tenants can be compared
Note 4: New unit rent is an average unit rent calculated based on aggregated unit rents and areas for the spaces where rents paid by new tenants and by previous tenants can be compared for each fiscal period of “Tenant move-in andmove-out areas and the number of tenants”. Previous unit rent is an average unit rent calculated based on aggregated previous unit rents and areas for the spaces where new unit rents are calculated

18

Status of rent revisions with existing tenants
Achieve early rent increase from 30th fiscal period owing to successful early negotiations
Although the pace of negotiations slowed down due to the spread of COVID-19, plan to maintain proactive
stance in negotiations and achieve a certain level of results
Changes in rent upon rent revisions (based on monthly rent) (Note 1)

Status of rent revisions (based on leased floor area) (Note 2)( ) Number of tenants negotiated(thousand yen)

増賃額 in rent
Increase

6,826

9,885
7,030

5,977

-472

No change
(176)
58.3%

No change
(164)
46.5%

第27期
27th
fiscal（18/10期）
period(2018/10)

Rent increase
(103)
33.8%

Negotiation
TargetChanges in the number of rent increase contracts andrent increase rate

-402

-111

72
41

第26期
26th
fiscal（18/4期）period(2018/4)

Rent decrease
(1)
0.3%

30th
fiscal period(2020/4)
(323)

Tokyo
central 5 wards
都心5区-2,032

Exception for negotiation(Higher thanmarket rent)
(43)
7.6%

29th
fiscal period(2019/10)(329)

14,017

9,051

Rent increase
(94)
36.6%

Exception for negotiation(Higher thanmarket rent)
(71)
16.9%

減賃額 in rent
Decrease

第28期
28th
fiscal（19/4期）period(2019/4)

第29期
29th
fiscal（19/10期）
period(2019/10)

第30期
30th
fiscal（20/4期）period(2020/4)

第31期
31stfiscal（20/10期）
period以降(2020/10)
OnwardConfirmed as of
May 15, 2020

Rent increase rate
(incremental average)(Note 3)62

Other areas
都心5区以外
83

94

103

52
42

64

38
41

51

31

24

26th fiscal
第26期
period
（18/4期）(2018/4)

27th fiscal
第27期
period（18/10期）(2018/10)

28th fiscal
第28期
period（19/4期）(2019/4)

29th fiscal
第29期
period（19/10期）(2019/10)

30th fiscal
第30期
period（20/4期）(2020/4)

6.2%

5.8%

5.7%

6.7%

7.7%

30

Note 1: Difference in monthly rent before and after rent revision in each fiscal period is calculated by aggregating the change amount per contract in each fiscal period (rounded to the nearest thousand yen). The changes in rent uponrent revisions from 31st fiscal period (2020/10) onward do not include the amount in response to requests for rent reduction or exemption, etc. due to temporary revenue decline resulting from the spread of COVID-19 (temporary
rent decrease and temporary rent increase to recover such decrease)
Note 2: “Market rent” in this graph is a new contracted rent (standard floor) for each property estimated by CBRE as of the end of each fiscal period
Note 3: Rent increase rate is calculated by dividing the sum of increase in monthly rent by the sum of monthly rent before revision (rounded to the first decimal place)19

Rent gap of KDO office buildings
While the number of owned properties with increased market rent declined, the upward trend continued
Rent gaps remained high and concentrate on upward rent negotiations keeping close watch on the economic
conditions
Breakdown of rent gaps by rent revision schedule

Breakdown of rent gaps (based on monthly rent) (Note 1)(as of the end of 30th fiscal period (2020/4), based on monthly rent) (Note 1) (Note 2)Over 10%110 mn yen
128 mn yen

159 mn yen
Higher thanmarket rent level

676 mn yen

641mn yen

16
58

127

683 mn yen
77.6%
Lower than-10%

750 mn yen

763 mn yen

第28期
End
of 28thfiscal period（19/4期）末

第29期
End
of 29thfiscal period（19/10期）末End
of 30th
第30期
fiscal period（20/4期）末(2019/4)(2019/10)

609 mn yen(2020/4)■Number of owned properties with increased market rent andperiod-over-period unit rent increase rate

Tokyo central 5 wards
Tokyo Metropolitan Area
(excl. Tokyo central 5 wards)

Other Regional Areas

End of 28th
fiscal period(2019/4)

End of 29th
fiscal period(2019/10)

End of 30th
fiscal period(2020/4)

23 / 48 properties (+3.1%)

43 / 48 properties (+2.8%)

25 / 48 properties (+3.3%)

15 / 29 properties (+4.3%)

21 / 29 properties (+3.8%)

9 / 30 properties (+5.3%)

9 / 18 properties (+5.6%)

15 / 18 properties (+5.1%)

1 / 18 properties (+6.5%)

第30期
30th
fiscalperiod（20/4期）(2020/4)

第31期
31stfiscalperiod（20/10期）(2020/10)
到来分

146

138

10
90

82.5%
73.4%

190

146

-10%超

35
63
78.0%

77.2%

201

75.9%

74.3%

Over
+10%
+10%超

15
64

174

105
Lower thanmarket rent level

0%~+10%+10%以内

32
70

23
13

Between-10% and 0%

Lower thanmarket rent level-10%~0%-10%以内347mn yen

273 mn yen

286 mn yen

Over
-10%
-10%超

(mn yen)Between
0% and 10%

111

229

135

第32期
32nd
fiscalperiod（21/4期）(2021/4)
到来分

62.9%

60

第33期
33rd
fiscalperiod（21/10期）(2021/10)
到来分

第34期
34th
fiscalperiod
（22/4期）(2022/4)
到来分

第35期
35th
fiscalperiod（22/10期）(2022/10)
以降到来分
onwardHistorical average rent gaps (Note 3)
(%)
30.0

19.5

20.0
10.0
0.0
-10.0
-20.0

10.3
4.7
-2.2

-4.3
-10.7

21.0
14.4
7.1

4.2

-0.6

-2.1

-4.2

-6.6

-7.3

-8.9

-9.3

第1期
第3期
第5期
第7期
第9期
第11期
第13期
第15期
第17期
第19期
第21期
第23期
第25期
第27期
第28期
第29期
第30期
End
of Endof End
End
of
End
of
End
of
End
of
End
of
End
of
End
of
End
of
End
of
End
of
End
of
End
of
End
of
of
End of（05/10期） （06/10期） （07/10期） （08/10期） （09/10期） （10/10期） （11/10期） （12/10期） （13/10期） （14/10期） （15/10期） （16/10期） （17/10期） （18/10期） （19/4期） （19/10期） （20/4期）
1st fiscal 3rd fiscal 5th fiscal 7th fiscal 9th fiscal 11th fiscal 13th fiscal 15th fiscal 17th fiscal 19th fiscal 21st fiscal 23rd fiscal 25th fiscal 27th fiscal 28th fiscal 29th fiscal 30th fiscal
periodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiodperiod(2005/10) (2006/10) (2007/10) (2008/10) (2009/10) (2010/10) (2011/10) (2012/10) (2013/10) (2014/10) (2015/10) (2016/10) (2017/10) (2018/10) (2019/4) (2019/10) (2020/4)

Note 1: A new contracted rent (standard floor) for each property estimated by CBRE as of the end of each fiscal period is deemed the market rent; the gap between the contracted rent for each tenant as of the end of the fiscal
period and the market rent is recognized as a rent gap. No gap is classified into “Between 0% and +10%”
Note 2: Regarding the office buildings owned by KDO as of the end of 30th fiscal period (2020/4), distribution of the rent gaps between the contracted rent for each tenant and the market rent estimated by CBRE as of the end of
30th fiscal period (2020/4) by the timing of rent revisions for each tenant. The rents equal to market rents are classified into “Between 0% and +10%”
Note 3: 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 by KDO as of the end of each fiscal period andthe market rent for each property estimated by CBRE at the time of appraisal
20Construction expense (actual/budget)
Strategic capital allocation is in place and the budget amount has been temporarily reduced in conjunction withthe plan review
Continue to implement timely and appropriate measures to maintain and improve property value
Changes in depreciation and construction expense(actual/budget)
Depreciation

Repair/maintenanceRepair/renovation work budget for 31st fiscal period(2020/10) (Note)

Capex

Items

(mn yen)
2,500

2,369

2,358

2,295

2,556

2,519

2,470

2,419

1,960

2,000

1,835
1,653

1,634

474
409

1,494

1,500

1,806

1,880

425

Percentage of total
expense (%)

tenant and common
areas

221

12.2

Replacement works

Air-conditioning facilities

382

21.2

Other major facilities

452

25.0

Eco-friendly works(Installation of LED lightings, etc.)

22

1.2

Outer wall repair

299

16.6

Maintenance/repair works

430

23.8

485
31st fiscal
period (2020/10)
total

568

Note: Figures are approximate estimates as of the date inwhich repair plan was prepared

1,000

1,426
1,231
886

Estimatedamount(mn yen)Value-upgrading works

403
767

500

Description of works

1,485

1,320

1,455

Percentage todepreciation
expense (%)

1,806

71.7

Properties to undergo major repair/renovation in 31st
fiscal period (2020/10)• Replacement works of air-conditioning facilities:
KDX Sapporo Kitaguchi Building, Portus Center Building,925

KDX Karasuma Building, Toshin 24 Building• Replacement works of Elevator:
0

BR Gotanda, Nihonbashi Horidomecho First
26th
fiscal 27th
fiscal
第26期
第27期
periodperiod
（18/4期）（18/10期）(2018/4)(2018/10)
実績
実績
actualactual28th
fiscal 29th
fiscal
第28期
第29期
periodperiod（19/4期）（19/10期）(2019/4)(2019/10)
実績
実績
actualactualfiscal30th
fiscal 31st
fiscal 32nd
第30期
第31期
第32期
periodperiodperiod（20/4期）（20/10期）（21/4期）(2021/4)(2020/4)(2020/10)
予算
実績
予算
予算
budgetactualbudget• Outer wall repair:
Koishikawa TG Building、KDX Hatchobori Building, KDX Kayabacho
Building, KDX Hon-Atsugi Building, KDX Kanda Kitaguchi Building,Ginza 4chome Tower, KDX Ginza 1chome Building21

End-tenants of KDO office buildings

The largest tenant occupies 2.3% of total leased floor area and each of tenants other than the top 4 occupies
less than 1.0%
A highly diversified tenant base with the top 10 tenants occupying around 10% of the total leased floor area

List of top end-tenants for office buildings

Average rent for office buildings by area (Note 2)(as of the end of 30th fiscal period (2020/4))
Tenant nameLeasedarea(tsubo)share ofleased floorarea (%) (Note1)

1 Mitsubishi Heavy Industries, Ltd. 3,408.4

2.3

Mitsubishijuko Yokohama Bldg.

2 WeWork Japan G.K.

1.3

KDX Toranomon 1chome Bldg.

1,920.0

26th fiscal period 28th fiscal period 30th fiscal period(2018/4)(2019/4)(2020/4)

Name of propertyTokyo
metropolitan area

15,700 yen

16,300 yenJapan

14,800 yen

15,300 yen

Tenant A
3(wholesale, retail and dining)

1,550.8

1.1

KDX Kawasaki-Emimae
Hon-cho Bldg.

4 Japan Pension Service

1,424.9

1.0

Chofu Center Bldg.

5 JASTEC Co., Ltd.

1,304.6

0.9

KDX Takanawadai Bldg.

1,279.6

0.9

KDX Higashi Umeda Bldg.

Real Estate49, 4.3%

0.8

Mitsubishijuko Yokohama Bldg.
KDX Yokohama Kannai Bldg.

Construction
50, 4.4%

6

Customer relation
telemarketing, CO,LTD

7 Yokohama City

1,237.7(Scheduled to cancel 1,220.7 tsubo by October 31,
2020 (excluding Mitsubishijuko Yokohama Bldg.)

8

Tenant B(Manufacturing)

1,168.0

0.8

KDX Kobayashi-Doshomachi Bldg.

9

Tenant C(service provider)

1,109.1

0.8

KDX Musashi-Kosugi Bldg.
KDX Hiroshima Bldg.

10

Tenant D(service provider)

1,080.1

0.7

KDX Musashi-Kosugi Bldg.

Total

15,483.2

10.5

16,600 yen(+100 yenperiod over period)

15,500 yen(±0 yenperiod over period)

Tenant diversification by type of business(based on # of tenants) (Note 3)
Transportation,
Communication
39, 3.4%

Finance, Insurance
52, 4.6%
Individual
55, 4.8%

Public sector (other)4, 0.4%Mining1, 0.1%
Infrastructure
1, 0.1%# of tenants
1,142

Service provider
483, 42.3%,

Manufacturing
149, 13.1%
Wholesale,
Retail, Dining
259, 22.7%

Note 1: Leased area of each end-tenant against total leased floor area of KDO portfolio as of the end of 30th fiscal period (2020/4) (rounded to the first decimal place)
Note 2: Average rent is calculated by dividing total amount of contracted rents of office buildings for each area as of the end of each fiscal period by the total leased floor area (rounded down to the nearest hundred yen)
Note 3:The chart shows the breakdown of tenants by type of business based on the total number of tenants in office portfolio (aggregated by name-base) as of the end of 30th fiscal period (2020/4) (rounded to the first decimal place)22Efforts for ESG
Certification for CASBEE for Real Estate

LED lighting installation in rental spaces• 1 property was newly ranked “S,” the highest rating, and other 5
properties “A” by CASBEE in 30th fiscal period (2020/4) inaddition to 6 properties that were already acquired in theprevious fiscal year

• Installation of LED lightings in common area isroughly completed, installing LED lightings in rental
spaces in a planned way• Already installed in 7 properties since 29th fiscal
period (2019/10) and will be gradually introduced in
the future“S”: KDX Sendai Bldg.
“A”: Harajuku F.F. Bldg., KDX Hamacho Nakanohashi Bldg.,
KDX Nakameguro Bldg., KDX Hamamatsucho Center Bldg., BR Gotanda• A total of 18 properties in our portfolio were awarded theCertification

Acquisition of environmental certification

New installation of fund-raising vending machines• As KDO has been actively and continuously
promoting green buildings, the properties that
acquired DBJ Green Building Certification,
Certification for CASBEE for Real Estate and
BELS Certification exceed a majority of theportfolio in terms of ratio of floor area to total
floor area

• Installed fund-raising vending machines in April
2020 in which a portion of the proceeds from thesales of the vending machines is used to support
tree-planting activities through a public-interest
foundation

End of 30th fiscal period (20/4)
Acquisition of environmental
certification (Note)
Properties Total floor area ratio

39 ・ 54.2%

Note: The number of properties is counted without duplication in case a property has multiple
certification and evaluation
Total floor area ratio is calculated without duplication by dividing certified floor area by total floorarea of the portfolio

GRESB Real Estate
Assessment• Acquired "Green Star" rating for
8 consecutive years• Earned the 2nd-highest-rated“4 Stars” in GRESB Rating

DBJ Green Building
Certification• A total of 25 properties inour portfolio were awarded
the Certification, including
KDX Toranomon 1chome
Bldg., which earned thehighest-rated “five stars”

BELS Certification• In 2014, KDX Musashi-Kosugi
Bldg. was awarded a BELS
Certification (three stars) for the
first time in history as a J-REIT
owned property• A total of 2 properties in our
portfolio were awarded theCertification• KDO will continue to expand these new initiatives
and deepen our active involvement to broaden thescope of our support in the future

Support from the Asset Management Company
for infectious disease control• In May 2020, in response to concerns about the
spread of COVID-19 among the elderly and theincreasing severity of symptoms, the AssetManagement Company distributed a total of
16,500 masks for free to residents and others at
24 healthcare-related facilities owned by Kenedix
Residential Next Investment Corporation, which ismanaged by the Asset Management Company• Received many words of appreciation for thisinitiative at a time of widespread anxiety of the
spread of COVID-19

23

Section 6
Financial strategy

24

Status of debt financing

Decrease financial cost at refinancing while paying attention to trends in the financial environment
Seek to reduce refinancing risk through maintaining the commitment line and strategic diversificationof debt maturities

1.8

Refinance record for 30th fiscal period (2020/4)

Average interest rate and remaining period to maturity (Note 1)6

平均金利（融資実行手数料を含む）
Weighted average interest rate (incl. up-front fee)

1.6
1.39%
1.25%

1.19%

1.2

1.16%

3
1.10%

1.07%

1.06%

1.04%

1.02%

1.0
0.8

0.97%

End
of 21st
第21期
fiscal period（15/10期）末(2015/10)

Endof 22nd
第22期
fiscal period（16/4期）末(2016/4)

Endof 23rd
第23期
fiscal period（16/10期）末(2016/10)

Endof 24th
第24期
fiscal period（17/4期）末(2017/4)

Endof 25th
第25期
fiscal period（17/10期）末(2017/10)

Endof 26th
第26期
fiscal period（18/4期）末(2018/4)

Endof 27th
第27期
fiscal period（18/10期）末(2018/10)

Endof 28th
第28期
fiscal period（19/4期）末(2019/4)

Endof 29th
第29期
fiscal period（19/10期）末(2019/10)

Endof 30th
第30期
fiscal period（20/4期）末(2020/4)

4.3

4.7

4.9

4.7

5.0

5.2

5.2

5.0

4.8

4.5

Averageremaining
平均
periodto
残存年数
maturity (year)

20.7

Short-term debt
11.1

11.8
9.9

11.0 11.3
9.1
1.0

7.5

33rd
第33期
fiscal(21/10期)
period(2021/10)

35th
第35期
fiscal(22/10期)
period(2022/10)

6.7

2.0

2.0

37th
第37期
fiscal(23/10期)
period(2023/10)

39th
第39期
fiscal(24/10期)
period(2024/10)

41st
第41期
fiscal(25/10期)
period(2025/10)

43rd
第43期
fiscal(26/10期)
period(2026/10)

45th
第45期
fiscal(27/10期)
period(2027/10)

4.1 years

1• Of the refinancing, long-term debt is 8.2 billion yen (averageinterest rate: 0.57%, average borrowing period: 5.9 years);
the remaining 4.5 billion yen is short-term debt

0Interest-bearing debt by maturity
31stfiscal period(2020/10)

32nd
fiscal period(2021/4)

33rd
fiscal period(2021/10)

34th
fiscal period(2022/4)

11.1
bn yen11.2
bn yen11.8
bn yen9.9
bn yen

0.99%

1.10%

1.07%

1.01%

Maximum Amount 6.0 bn yen
7.2

2.0

4.3 years

Outline of the commitment line agreement

1.0

2.0

3.8

31st
第31期
fiscal(20/10期)
period(2020/10)

9.0

0.50%

Average borrowing period

Averagefinancial cost
15.0

12.6 12.5 12.9 13.0

0.84%

2

Balanceof debt maturing

Corporate
Borrowings172.5
172.5
yen
■Corporate bonds
10.0 bonds
bn yen10.0 bn yen■Borrowings
bnbn
yen

95.0

Average interest rate

Conditions afterrefinancing(excl. short-term borrowings)

Balance of interest-bearing debt by maturity
(bn
yen)
（億円）

Conditions before
refinancing

5
4

1.4

(Total amount of 12.7 bn yen) (Note 2)

47th
第47期
fiscal(28/10期)
period(2028/10)

6.8

Valid Period

May 1, 2020 to April 30, 2021

Use of proceeds

Acquisition of assets,
Repayment of the existing borrowings and redemption of
investment corporation bonds

Contract Type

Syndication-type commitment line

Counterparty

Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd.,
Mizuho Bank, Ltd.

Note 1: Average interest rate and borrowing period are the weighted average based on the balance of debt outstanding as of the end of each fiscal period (with the average interest rate rounded to the second decimal place
and the average borrowing period rounded to the first decimal place)
Note 2: Average interest rate and borrowing period are the weighted average of the interest rate of borrowings (incl. up-front fee) and borrowing period based on the balance of borrowings, respectively (with the averageinterest rate rounded to the second decimal place and the average borrowing period rounded to the first decimal place).

25

Historical changes in LTV and status of interest-bearing debt financing
Maintain stable financial base through conservative management with a 45% of LTV in mind
Consider securing funds for flexible acquisition through borrowings, etc. while taking into accountliquidity on hand
Historical LTV (interest-bearing debt ratio) level (Note 1)

Borrowing capacity for acquisition (Note 2)
as of the end of 30th
fiscal period (2020/4)

LTV（有利子負債比率）
LTV(interest-bearing debt ratio)

（%）

45.3

46.2

45.8

(in the case of LTV 45% limit)

47.5

47.2

Approx. 17.0 bn yen

48.4
42.8

40.3

42.8

42.8

43.1

42.6

43.9

43.3

41.9

42.9

42.1

41.7

35.8

Appraisal-value
based LTV

End第1
of3期
13th
（11/10period期）末fiscal(2011/10)

End第1
of4期
14th
（12/4期）末
fiscalperiod(2012/4)

End第of15th
15期（12/10期）末
fiscalperiod(2012/10)

End第1
of6期
16th
（13/4期）末
fiscalperiod(2013/4)

End第of17th
17期（13/10期）末
fiscalperiod(2013/10)

End第1
of8期
18th
（14/4期）末fiscalperiod(2014/4)

End第1
of9期
19th
（14/10期）末fiscalperiod(2014/10)

End
of0期
20th
第2
（15/4期）末fiscalperiod(2015/4)

End
of1期
21st
第2
（15/10期）末fiscalperiod(2015/10)

End第2
of2期
22nd
（16/4期）末fiscalperiod(2016/4)

Outstanding borrowings by financial institutions as of the end of
30th fiscal period (2020/4)
16 lending financial institutions■ Sumitomo Mitsui Banking 46,200 mn yen 25.4%■ MUFG Bank

2.5%
5.8%
6.2%
8.7%

■ Development Bank of

Japan

25.4%

Bank

■ Resona Bank

■ The Nishi-Nippon City

19.1%

Bank

■ The Hiroshima Bank
■ The 77 Bank

16.2%

29,550 mn yen 16.2%■ Sumitomo Life Insurance

Company■ Higashi-Nippon Bank
■ The Norinchukin Bank
■ The Mie Bank

End
of4期
24th
第2
（17/4期）末
fiscalperiod(2017/4)

End
of5期
25th
第2
（17/10期）
末
fiscalperiod(2017/10)

End
of
26th
第2
6期
（18/4期）末
fiscalperiod(2018/4)

8.7%
6.2%
5.8%
2.5%
1.4%

End
of
27th
第2
7期
（18/10期）
末
fiscalperiod(2018/10)

End
of
28th
第2
8期
（19/4期）末
fiscalperiod(2019/4)

End
of
29th
第2
9期
（19/10期）
末
fiscalperiod(2019/10)

End
30th
第3of
0期
（20/4期）末
fiscalperiod(2020/4)

Major indicators related to financial stability
Ratio offixed interest rate (Note 3)

Status of credit rating
(JCR)

94.2%

AA- (Stable)

19,900 mn yen 10.9%

15,900 mn yen
11,250 mn yen■ Aozora Bank
10,550 mn yen■ Mizuho Trust & Banking
4,600 mn yen■ The Bank of Fukuoka
2,500 mn yen■ Mizuho Bank

Total
borrowings
金融機関
from
financial
借入金合計
institutions
1,820億円
18.2 bn yen

10.9%■ Sumitomo Mitsui Trust

34,800 mn yen 19.1%

End
of3期
23rd
第2
（16/10期）末fiscalperiod(2016/10)

Issue status of investment corporation bonds as ofthe end of 30th fiscal period (2020/4) (total of 10.0 bn yen)
Corporate bonds

IssuedperiodIssuedamountInterest
rate

Term

1,700 mn yen 0.9%

6th bonds

2014/7

2.0 bn yen

1.18%

10 years

1,000 mn yen 0.5%
1,000 mn yen 0.5%

7th bonds

2016/4

1.0 bn yen

0.90%

12 years

8th bonds

2017/7

1.0 bn yen

0.26%

5 years

1,000 mn yen 0.5%
800 mn yen 0.4%
800 mn yen 0.4%
500 mn yen 0.3%

9th bonds

2017/7

2.0 bn yen

0.64%

10 years

10th bonds (green bonds)

2019/22.0 bn yen

0.39%

5 years

11th bonds (private placement bonds)

2020/1

2.0 bn yen

0.25%

5 years

Note 1: LTV is calculated by dividing the balance of interest-bearing debt by the amount of total assets as of the end of each fiscal period. Appraisal-value based LTV is calculated by dividing the balance of interest-bearing
debt by the sum of the amount of total assets and appraisal profit/loss of owned properties as of the end of each fiscal period (rounded to the first decimal place)
Note 2: Estimated borrowing amount of debt which can be additionally procured from financial institutions or new issuance of investment corporation bonds for property acquisition by new debt financing, assuming that theLTV can be increased to a certain value
Note 3: Includes the borrowings with floating interest rate fixed by interest rate swap (rounded to the first decimal place)26

Disclaimer

The contents of this document, including summary notes, quotes, data and other information, are provided solely for
informational purposes and not intended for the purpose of soliciting investment in, or as a recommendation to purchase or sell,
any specific products.
Please be aware that matters described herein may change or cease to exist without prior notice of any kind. This document
contains forward-looking statements and anticipations of future results, based on current assumptions and beliefs in light ofcurrently available information and resources. Risks and uncertainties, both known and unknown, including those relating to the
future performance of the real estate market in Japan, interest rate fluctuations, competitive scenarios, and changing
regulations or taxation, may cause Kenedix Office Investment Corporation (KDO)'s actual results, performance, achievements
and financial performance to be materially different from those explicitly or implicitly expressed in this document.
With respect to any and all terms herein, including without limitation, this document, the information provided is intended to bethorough. However, no assurance or warranties are given with respect to the accuracy or completeness thereof.
Neither KDO nor Kenedix Real Estate Fund Management, Inc. (KFM) shall be liable for any errors, inaccuracies, loss ordamage, or for any actions taken in reliance thereon, or undertake any obligation to publicly update the information contained inthis document after the date of this document.
Revised editions of this document will be posted on our website (https://www.kdo-reit.com/en/) if there should be majorcorrections going forward.

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